The IRS issued Notice 2020-53, which provides COVID-19-related relief to issuers, owners, operators and tenants of residential rental properties financed with LIHTCs.Notice 2020-53 allows certain time-sensitive actions such as:
- the 10% 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.
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.
The notice also allows medical personnel and other essential workers providing services during the COVID-19 pandemic to be treated as displaced individuals, eligible for housing in low-income properties.
to obtain a copy of Notice 2020-53