LIHTC Compliance Relief Provisions Expire

LIHTC Compliance Relief Provisions Affected 

In response to the COVID-19 pandemic, the Department of the Treasury and the Internal Revenue Service issued multiple notices providing temporary relief from certain requirements for low income housing tax credit (LIHTC) projects. Relief from the following operational compliance requirements expired on September 30, 2021:

• Income Recertifications – Owners and Operators must resume recertifications as due beginning October 1, 2021.
• Compliance Monitoring – Allocating Agencies must resume compliance monitoring inspections or reviews as due beginning October 1, 2021.
• Common Area/Amenity Closures – temporary closures in response to the pandemic through September 30, 2021 due not result in a reduction of eligible basis. 
• Emergency Housing for Medical Personnel and Other Essential Workers – these individuals are no longer treated as Displaced Individuals beginning October 1, 2021.

Effects of COVID Could Impact Future Legislation 

Owners and Operators of low income housing tax credit projects should be aware that these relief provisions are now expired to remain in compliance. With the recent rise in COVID cases, it is possible that future legislation could affect these requirements for affordable housing projects. 

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