IRS NOTICE 2022-05 Overview
For LIHTC Owners and Management Agents
On January 11, 2022 the Internal Revenue Service (IRS) released their fourth notice extending widespread temporary relief from certain requirements for Low-Income Housing Tax Credit (LIHTC)-financed and tax-exempt bond financed properties due to the COVID-19 pandemic.
Notice 2022-05 extends previous relief for the 10% test for carryover allocations, the 24-month minimum rehabilitation period, the placed-in-service deadline, the reasonable period for restoration or replacement in the event of casualty loss, and agency correction periods. The notice also provides an extension to satisfy occupancy obligations.
Concerning compliance, Notice 2022-05 provides an extension of the requirement for a 30-day notice for state agency reviews of tenant files through the end of 2022 and allows state agencies to defer physical inspections through June 30, 2022, with the option to extend that through the end of 2022 in consultation with local public health experts. At this time CHFA is deferring physical inspections through June 30, 2022. CHFA will continue with remote compliance monitoring file reviews for the foreseeable future.
The closure of amenities or common areas in LIHTC properties due to COVID-19 will not result in a reduction of eligible basis and essential workers may be provided emergency housing in LIHTC properties.
To assist owners with completing tenant income certifications during the pandemic, CHFA posted Frequently Asked Questions (FAQ’s). These FAQ’s have been updated to reflect the guidance provided in IRS Notice 2022-05.
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