Today, NCSHA sent comments to the IRS on how it can improve its Low Income Housing Tax Credit (Housing Credit) disaster relief guidance provided in Revenue Procedures 2014-49 and 2014-50. NCSHA’s letter is in response to IRS’s request for comments in Notice 2018-17, which also provided additional guidance on Housing Credit disaster relief specific to Puerto Rico’s recovery from Hurricane Maria.
Specifically, NCSHA urged IRS to expand its disaster relief guidance to:
- Address the treatment of residents returning to an affected property following a natural disaster, including whether the property owner is required to recertify residents before they can return to the property, and if so how to handle residents who may be over-income upon their return if they were income-qualified upon initial occupancy;
- Clarify that owners must maintain compliance in non-damaged units if only a portion of the property is affected by natural disaster (for example flooding that impacts only the ground floor of a development); and
- Consider the issue of destroyed records following a natural disaster—whether an owner is required to attempt recreation of destroyed records, and if not, the relief provided to those owners in this case.
Contact NCSHA’s Jim Tassos with questions.