IRS Extends COVID Relief Again For LIHTC Deadlines

In response to the continuing presence of the COVID-19 pandemic, the IRS has again issued a notice that extends certain deadlines for low-income housing projects.

Notice 2022-5 extended relief for the following deadlines and operational waivers:

Deadline Relief

• 10-percent test for carryover allocations
• Section 42(e)(3)(A)(ii) 24-month minimum rehabilitation expenditure period
• Placed in service deadline
• Reasonable period for restoration or replacement in the event of casualty loss
• Extension to satisfy occupancy obligations
• Correction period

Operational Relief

• Compliance monitoring – review of tenant files
• Compliance monitoring – physical inspections
• Common areas and amenities
• Emergency housing for medical personnel and other essential workers

Additional details are available in the IRS Notice which can be accessed here. 

For additional considerations please reach out to Mary Corwin, CPA, Associate Director, or contact our Real Estate Solutions Team at Mahoney.