To the ongoing Coronavirus Disease 2019 (COVID–19) pandemic, the IRS postponed or suspended several deadlines for low-income housing requirements through December 31, 2020. Low-income housing projects may also close some amenities, and house medical personnel and essential workers through 2020. Finally, proposed reliance regulations reverse the increase in sample sizes for physical inspections and low-income re-certifications for low-income housing projects.

Due Dates Extended for Low-Income Housing and Qualified Rental Projects

If the last day for any of the following periods is scheduled to be on or after April 1, 2020, and before December 31, 2020, the last day is now deemed to be December 31, 2020:

-The period for an owner of a building with a carryover allocation to meet the 10 percent test;

-The 24-month minimum rehabilitation expenditure period for a building;

-The reasonable period for a building owner to restore a casualty loss, including a casualty by a prior major disaster, by reconstruction or replacement.

Some compliance requirements are also suspended during this same period:

-The owner of a low-income building is not required to perform income recertifications in the period between April 1 and December 31, 2020;

-A housing credit agency is not required to conduct compliance-monitoring inspections or reviews that are due between April 1 and December 31, 2020.

Bonds for qualified residential rental projects, if the last day for any of the following periods is scheduled to be on or after April 1 and before December 31, 2020, the last day is now deemed to be December 31, 2020:

-The 12-month transition period when bonds are used to acquire an existing residential rental project;

-The two-year rehabilitation expenditure period.

Low-Income Housing Projects Close Amenities, House Medical Personnel and Essential Workers

The temporary unavailability or closure of an amenity or common area in a low-income building or project during some or all of the period between April 1 and December 31, 2020, does not reduce the eligible basis of the building. However, amenity or common area must be unavailable or closed solely in response to the COVID-19 pandemic, and not because of any other noncompliance.

The proposed regulations reverse Real Estate Assessment Center (REAC) sample size requirements, under which the minimum sample size for physical inspections and income recertifications is:

-the applicable REAC number, or

-if less, 20 percent of the low-income units in the project.

Please call our office if you would like more information on the relief for safe low-income housing projects. We are here to assist you.

Venkat Iyer. CPA(USA). CPA(Canada). MBA

Venkat holds a CPA credential both in the USA and Canada, and he is very proficient in tax and compliance requirements in both countries. He is a Seasoned Business Adviser with 18+ years of extensive experience in diversified industries and accounting firms.He is also very prominent in implementing Lean Principles and Strong Financial Foundations for Hotels and Restaurants. He believes the key to any business success is knowing their indicators and their impact. He has been helping businesses with predictive analytics, transforming data from their enterprise's system for delivering meaningful insights.He is also a Business Automation Expert helping streamline the workflows from marketing to management to ensure optimal business performance.