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LIHTC Update: IRS Issues COVID-19 LIHTC Relief Notice 2020-53

2 July 2020
 July 2, 2020
Category Industry News, News

The Internal Revenue Service (IRS) issued Notice 2020-53 , which provides COVID-19-related relief and revenue procedures for issuers, owners, operators and tenants of residential rental properties financed with LIHTCs (Housing Credits).  

This notice allows certain time-sensitive actions (such as the 10 percent test for carryover allocations, the 24-month minimum rehabilitation expenditure period and reasonable period of casualty loss restoration or replacement) that were due from April 1, 2020, through Dec. 30, 2020, to have a new deadline of Dec. 31, 2020.  Additionally, the notice states that owners of properties are not required to perform certain income rectifications or adjust the eligible basis of a building due to temporary closure of common areas or amenities due to the pandemic and state agencies are not required to conduct compliance monitoring of those properties.

IRS Notice 2020-53 is attached and can also be viewed here.

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