Part III - Administrative, Procedural, and Miscellaneous

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Part III - Administrative, Procedural, and Miscellaneous

Notice 2021-12

I.

PURPOSE

Because of the Coronavirus Disease 2019 (COVID-19) pandemic, the

Department of the Treasury and the Internal Revenue Service issued Notice 2020-53,

2020-30 I.R.B. 151, to provide temporary relief from certain requirements under § 42 of

the Internal Revenue Code (Code) for qualified low-income housing projects and under

§§ 142(d) and 147(d) of the Code for qualified residential rental projects. In response to

the continuing presence of the pandemic, this notice extends that temporary relief and

also provides temporary relief from additional § 42 requirements not previously

addressed in Notice 2020-53. Section III of this notice describes the persons eligible for

the relief granted in sections IV through VI of this notice.

II.

BACKGROUND

A. Qualified low-income housing projects

In this notice, the terms “Agency,” and “Owner” have the same meanings as

described in section 5 of Rev. Proc. 2014-49, 2014-37 I.R.B. 535.

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Section 42(a) provides that the amount of the low-income housing credit for any

taxable year in the credit period is an amount equal to the applicable percentage of the

qualified basis of each qualified low-income building.

Section 42(c)(1)(A) provides that the qualified basis of any qualified low-income

building for any taxable year is an amount equal to (i) the applicable fraction

(determined as of the close of the taxable year) of (ii) the eligible basis of the building

(determined under § 42(d)(5)). Sections 42(c)(1)(B) defines applicable fraction and

§ 42(d)(1) and (2) define the eligible basis of a new building and an existing building,

respectively

ed basis of any qualified low-income

building for any taxable year is an amount equal to (i) the applicable fraction

(determined as of the close of the taxable year) of (ii) the eligible basis of the building

(determined under § 42(d)(5)). Sections 42(c)(1)(B) defines applicable fraction and

§ 42(d)(1) and (2) define the eligible basis of a new building and an existing building,

respectively.

Section 42(c)(2) defines a qualified low-income building as any building which is

part of a qualified low-income housing project at all times during the “compliance period”

(that is, the period of 15 taxable years beginning with the first taxable year of the credit

period) and to which § 168(e)(2)(A) applies. To be a qualified low-income housing

project, one of the § 42(g) minimum set-aside tests, as elected by the taxpayer, must be

satisfied.

Under § 42(d)(4)(A) and (B), the adjusted basis for a qualified low-income

building includes the adjusted basis of the property (of a character subject to the

allowance of depreciation) used in common areas or provided as comparable amenities

to all residential rental units in the building.

Section 42(e) provides general rules under which rehabilitation expenditures

incurred by taxpayers related to a low-income building may be treated as a separate

new building. Under § 42(e)(3)(A)(ii), to qualify as a separate new building, the

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rehabilitation expenditures with respect to a low-income building during a 24-month

period (§ 42(e) 24-month minimum rehabilitation expenditure period) must be at least

the greater of two statutory criteria.

Section 42(f) sets forth the definition and special rules relating to the credit

period

s a separate

new building. Under § 42(e)(3)(A)(ii), to qualify as a separate new building, the

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rehabilitation expenditures with respect to a low-income building during a 24-month

period (§ 42(e) 24-month minimum rehabilitation expenditure period) must be at least

the greater of two statutory criteria.

Section 42(f) sets forth the definition and special rules relating to the credit

period. Under § 42(f)(3)(A), in the case of any building which was a qualified low-

income building as of the close of the first year of the credit period, if as of the close of

any taxable year in the compliance period (after the first year of the credit period) the

qualified basis of the building exceeds the qualified basis of the building at the close of

the first year of the credit period, then the applicable percentage that applies under §

42(a) for the taxable year to such excess will be the percentage equal to 2/3 of the

applicable percentage that would otherwise apply. For example, if the credit period

begins in the year a building is placed in service, but full occupancy of the building by

low-income tenants does not occur until the following (or any subsequent) year, there is

an increase in qualified basis and the applicable percentage used to determine credits

for this increase is equal to 2/3 of the applicable percentage that would otherwise apply.

Section 42(g) sets forth three alternative minimum set-aside tests for low-income

housing projects. The Owner of a project must elect one and satisfy that chosen test

each taxable year. Once a taxpayer elects to use a particular set-aside test, the

election is irrevocable.

Section 42(h)(1)(E) provides general rules for carryover allocations of the low-

income housing credit

otherwise apply.

Section 42(g) sets forth three alternative minimum set-aside tests for low-income

housing projects. The Owner of a project must elect one and satisfy that chosen test

each taxable year. Once a taxpayer elects to use a particular set-aside test, the

election is irrevocable.

Section 42(h)(1)(E) provides general rules for carryover allocations of the low-

income housing credit. A carryover allocation is defined in § 1.42-6(a)(1) of the Income

Tax Regulations as an allocation that meets the requirements of § 42(h)(1)(E) (relating

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to carryover allocations for single buildings) or § 42(h)(1)(F) (relating to carryover

allocations for multiple building projects).

Under § 42(h)(1)(E)(i), if a qualified building is placed in service not later than a

statutorily specified date, the building is relieved of a requirement concerning the timing

of the allocation. Section 42(h)(1)(E)(ii) provides in part, for purposes of § 42(h)(1)(E)(i),

that the term “qualified building” means any building which is part of a project if the

taxpayer’s basis in the project (as of the date that is 1 year after the date that the

allocation was made) is more than 10 percent of the taxpayer’s reasonably expected

basis in the project (as of the close of the second calendar year following the calendar

year in which an allocation is made) (10-percent test).

In general, under § 42(j)(1), if (1) a building is beyond the first year of the credit

period, and (2) at the end of the taxable year, the building’s qualified basis with respect

to the taxpayer is less than the qualified basis with respect to the taxpayer at the end of

the preceding taxable year, then the credits, if any, for the year of the reduction are

determined using the reduced qualified basis, and the taxpayer’s Federal income tax

liability for the year of the reduction is increased by the credit recapture amount

prescribed in § 42(j)(2)

ied basis with respect

to the taxpayer is less than the qualified basis with respect to the taxpayer at the end of

the preceding taxable year, then the credits, if any, for the year of the reduction are

determined using the reduced qualified basis, and the taxpayer’s Federal income tax

liability for the year of the reduction is increased by the credit recapture amount

prescribed in § 42(j)(2).

Section 42(j)(4)(E) provides generally that a building is not subject to recapture

by reason of a casualty loss to the extent the loss is restored by reconstruction or

replacement within a reasonable period established by the Secretary of the Treasury or

his delegate (Secretary).

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Section 42(m)(1) requires an Agency to allocate housing credit dollar amounts

among candidate proposed housing projects. The allocation must be pursuant to a

qualified allocation plan (QAP) that has been approved by the governmental unit of

which the Agency is a part. A QAP not only sets forth selection criteria by which an

Agency makes these allocations but also provides a procedure that the Agency must

follow in monitoring for noncompliance with the provisions of § 42, including monitoring

for noncompliance with habitability standards through regular site visits.

Section 1.42-5 of the Income Tax Regulations provides the general requirements

of Agencies’ compliance-monitoring responsibilities under their monitoring procedures

that must be part of all QAPs. Among the requirements, an Agency must perform

physical inspections and low-income certification review.

Section 1.42-5(c)(1)(iii) requires, generally, that the Owner of a low-income

housing project certify at least annually to the Agency that, for the preceding 12-month

period, the Owner has received an annual income certification from each low-income

tenant, and the documentation to support that certification

, an Agency must perform

physical inspections and low-income certification review.

Section 1.42-5(c)(1)(iii) requires, generally, that the Owner of a low-income

housing project certify at least annually to the Agency that, for the preceding 12-month

period, the Owner has received an annual income certification from each low-income

tenant, and the documentation to support that certification.

Section 1.42-5(e)(4) defines the correction period for noncompliance as the

period specified in an Agency’s compliance-monitoring procedure during which an

Owner must supply any missing certifications and bring the project into compliance with

the provisions in § 42. The correction period is not to exceed 90 days from the date of

the notice to the Owner. An Agency may extend the correction period for up to

6 months, but only if the Agency determines there is good cause for granting the

extension.

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Under § 1.42-13(a) of the Income Tax Regulations, the Secretary may provide

guidance to carry out the purposes of § 42 through various publications in the Internal

Revenue Bulletin.

B. Qualified residential rental projects financed by bonds

In this notice, the terms “Issuer” and “Operator” have the same meanings as

described in section 4 of Rev. Proc. 2014-50, 2014-37 I.R.B. 540.

Generally, under § 103 of the Code, if private activity bonds are not qualified

bonds within the meaning of § 141 of the Code, then those private activity bonds are not

tax-exempt. Section 141(e) provides in part that the term “qualified bond” means any

private activity bond if such bond is an exempt facility bond, and § 142(a) provides in

part that the term “exempt facility bond” means any bond issued as part of an issue

95 percent or more of the net proceeds of which are to be used to provide qualified

residential rental projects. To be a qualified residential rental project, a residential rental

housing project must meet the requirements in § 142(d)

ivity bond if such bond is an exempt facility bond, and § 142(a) provides in

part that the term “exempt facility bond” means any bond issued as part of an issue

95 percent or more of the net proceeds of which are to be used to provide qualified

residential rental projects. To be a qualified residential rental project, a residential rental

housing project must meet the requirements in § 142(d).

Section 142(d)(1) provides that the term "qualified residential rental project"

means any project for residential rental property if, at all times during the qualified

project period, such project meets the requirements under § 142(d)(1)(A) or (B)

(§ 142(d) set-aside requirements), whichever is elected by the Issuer at the time of the

issuance of the issue with respect to such project.

Section 142(d)(2)(A) provides that the term "qualified project period" means the

period beginning on the first day on which 10 percent of the residential units in the

project are occupied and ending on the latest of (i) the date that is 15 years after the

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date on which 50 percent of the residential units in the project are occupied, (ii) the first

day on which no tax-exempt private activity bond issued with respect to the project is

outstanding, or (iii) the date on which any assistance provided with respect to the

project under section 8 of the United States Housing Act of 1937 terminates.

Rev. Proc. 2004-39, 2004-2 C.B. 49, sets forth procedures for determining

whether a residential rental project complies with the applicable § 142(d) set-aside

requirements. Under section 5.02 of that revenue procedure, if bonds are issued to

acquire an existing residential rental project, then for a period of up to 12 months

beginning on the issue date of the bonds (12-month transition period), a failure to satisfy

the § 142(d) set-aside requirements does not cause the acquired project to fail to be a

qualified residential rental project

set-aside

requirements. Under section 5.02 of that revenue procedure, if bonds are issued to

acquire an existing residential rental project, then for a period of up to 12 months

beginning on the issue date of the bonds (12-month transition period), a failure to satisfy

the § 142(d) set-aside requirements does not cause the acquired project to fail to be a

qualified residential rental project.

Section 147(d)(1) provides, with certain exceptions, that a private activity bond

shall not be a qualified bond if issued as part of an issue and any portion of the net

proceeds of such issue is to be used for the acquisition of any property (or an interest

therein) unless the first use of such property is pursuant to such acquisition. The private

activity bonds to which § 147(d) applies include bonds to finance qualified residential

rental projects.

Section 147(d)(2) provides that § 147(d)(1) shall not apply with respect to any

building (and the equipment therefor) if the rehabilitation expenditures with respect to

such building, equal or exceed 15 percent of the portion of the cost of acquiring such

building (and equipment) financed with the net proceeds of the issue.

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Section 147(d)(3)(C) provides that the term “rehabilitation expenditures” shall not

include any amount which is incurred after the date 2 years after the later of (i) the date

on which the building was acquired, or (ii) the date on which the bond was issued

(§ 147(d) 2-year rehabilitation expenditure period).

C. Postponement of certain deadlines by reason of Presidentially declared

disasters

On March 13, 2020, the President of the United States issued an emergency

declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act

(Stafford Act), 42 U.S.C

ilding was acquired, or (ii) the date on which the bond was issued

(§ 147(d) 2-year rehabilitation expenditure period).

C. Postponement of certain deadlines by reason of Presidentially declared

disasters

On March 13, 2020, the President of the United States issued an emergency

declaration under the Robert T. Stafford Disaster Relief and Emergency Assistance Act

(Stafford Act), 42 U.S.C. 5121 et seq., in response to the ongoing COVID-19 pandemic

(Emergency Declaration).1 The Emergency Declaration instructed the Secretary of the

Treasury “to provide relief from tax deadlines to Americans who have been adversely

affected by the COVID-19 emergency, as appropriate, pursuant to 26 U.S.C. 7508A(a).”

Subsequent to the Emergency Declaration, the President issued major disaster

declarations under the authority of the Stafford Act with respect to all 50 States, the

District of Columbia, and 5 territories (Major Disaster Declarations).2 In addition, under

§ 1.42-13(a), the Secretary has the general authority to issue guidance and provide

relief to carry out the purposes of § 42.

In the context of a Presidentially-declared Major Disaster, Rev. Proc. 2014-49

provides temporary relief from certain requirements of § 42 for Agencies and Owners of

low-income housing projects. Under section 8 of Rev. Proc. 2014-49, in the case of a

1 See https://www.whitehouse.gov/wp-content/uploads/2020/03/LetterFromThePresident.pdf.

2 See https://www.fema.gov/coronavirus/disaster-declarations.

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casualty loss suffered due to a Major Disaster that has reduced a low-income building’s

qualified basis, the Agency that has jurisdiction over the building must determine what

constitutes a reasonable restoration period. The reasonable restoration period

established by the Agency must not extend beyond the end of the 25th month following

the close of the month of the Major Disaster declaration (25-month reasonable

restoration period)

ter that has reduced a low-income building’s

qualified basis, the Agency that has jurisdiction over the building must determine what

constitutes a reasonable restoration period. The reasonable restoration period

established by the Agency must not extend beyond the end of the 25th month following

the close of the month of the Major Disaster declaration (25-month reasonable

restoration period). Subject to completing the restoration, to determine the credit

amount allowable during the reasonable restoration period for a building described in

section 8 of Rev. Proc. 2014-49, an Owner must use the building’s qualified basis at the

end of the taxable year immediately preceding the first day of the incident period for the

Major Disaster.

Rev. Proc. 2014-49 also provides emergency housing relief for individuals who

are displaced by a Major Disaster from their principal residences in certain Major

Disaster Areas. See Rev. Proc. 2014-49, sections 12–14. In the context of a

Presidentially-declared Major Disaster, Rev. Proc. 2014-50 provides temporary relief

from certain requirements under § 142(d) for qualified residential rental projects

financed with exempt facility bonds issued by State and local governments under § 142.

Rev. Proc. 2014-50 also provides emergency housing relief for individuals who are

displaced by a Major Disaster from their principal residences in certain Major Disaster

Areas. See Rev. Proc. 2014-50, sections 5–7.

Notice 2020-23, 2020-18 I.R.B. 742, issued April 9, 2020, provided certain relief

to affected taxpayers and postponed due dates until July 15, 2020, with respect to

certain tax filings and payments, certain time-sensitive government actions, and all time-

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sensitive actions listed in Rev. Proc. 2018-58, 2018-50 I.R.B. 990 (Dec. 10, 2018), that

were due to be performed on or after April 1, 2020, and before July 15, 2020, including

certain actions under § 42 for qualified low-income housing projects

postponed due dates until July 15, 2020, with respect to

certain tax filings and payments, certain time-sensitive government actions, and all time-

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sensitive actions listed in Rev. Proc. 2018-58, 2018-50 I.R.B. 990 (Dec. 10, 2018), that

were due to be performed on or after April 1, 2020, and before July 15, 2020, including

certain actions under § 42 for qualified low-income housing projects.

Notice 2020-53, issued on July 1, 2020, extended until December 31, 2020, the

relief provided in Notice 2020-23 for § 42 qualified low-income housing projects, as well

as providing until December 31, 2020, additional relief under § 42 and under §§ 142(d)

and 147(d) for qualified residential rental projects.

III.

SCOPE OF THE RELIEF GRANTED IN THIS NOTICE

Sections IV.A through F of this notice apply to certain deadlines related to low-

income housing projects under § 42. Sections V.A through D apply to relief involving

operational waivers for low-income housing projects, and Section V.E applies to relief

involving operational waivers both for those projects and for qualified rental projects

under § 142(d). Sections VI.A and B apply to private activity bonds that are issued for

the acquisition of buildings intended to be qualified residential rental projects and that

would be qualified bonds (as defined in § 141(e)) if the applicable requirements of

§§ 142(d) and 147(d)(2) are satisfied. All of the provisions in Sections IV through VI

also apply to Agencies, Owners, Issuers, and Operators that have responsibilities with

respect to those projects and bonds.

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IV.

GRANT OF RELIEF FOR DEADLINES RELATED TO THE LOW-INCOME

HOUSING CREDIT

A

ts and that

would be qualified bonds (as defined in § 141(e)) if the applicable requirements of

§§ 142(d) and 147(d)(2) are satisfied. All of the provisions in Sections IV through VI

also apply to Agencies, Owners, Issuers, and Operators that have responsibilities with

respect to those projects and bonds.

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IV.

GRANT OF RELIEF FOR DEADLINES RELATED TO THE LOW-INCOME

HOUSING CREDIT

A. THE 10-PERCENT TEST FOR CARRYOVER ALLOCATIONS

For purposes of § 42(h)(1)(E)(ii), if the last day for an Owner of a building with a

carryover allocation to meet the 10-percent test is on or after April 1, 2020, and before

September 30, 2021, the last day for the Owner to meet the 10-percent test is

postponed to the earlier of one year from the original due date or September 30, 2021.

B. THE § 42(e) 24-MONTH MINIMUM REHABILITATION EXPENDITURE

PERIOD

For purposes of § 42(e)(3)(A)(ii), if the 24-month minimum rehabilitation

expenditure period for a building originally ends on or after April 1, 2020, and before

September 30, 2021, the last day for the Owner to incur the minimum rehabilitation

expenditures with respect to the building is postponed to the earlier of one year from the

original end date or September 30, 2021.

C. PLACED IN SERVICE DEADLINE

For purposes of § 42(h)(1)(E)(i), if the deadline for a low-income building to be

placed in service is the close of calendar year 2020, the last day for the Owner of the

building to place the building in service is postponed to December 31, 2021.

D. REASONABLE PERIOD FOR RESTORATION OR REPLACEMENT IN THE

EVENT OF CASUALTY LOSS

For purposes of § 42(j)(4)(E) in the case of a casualty loss not due to a pre-

COVID-19-pandemic Major Disaster, and of section 8.02 of Rev. Proc

laced in service is the close of calendar year 2020, the last day for the Owner of the

building to place the building in service is postponed to December 31, 2021.

D. REASONABLE PERIOD FOR RESTORATION OR REPLACEMENT IN THE

EVENT OF CASUALTY LOSS

For purposes of § 42(j)(4)(E) in the case of a casualty loss not due to a pre-

COVID-19-pandemic Major Disaster, and of section 8.02 of Rev. Proc. 2014-49 in the

case of a casualty loss due to a pre-COVID-19-pandemic Major Disaster, if a low-

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income building’s qualified basis is reduced by reason of the casualty loss and the

reasonable period to restore the loss by reconstruction or replacement (Reasonable

Restoration Period) ends on or after April 1, 2020, then the last day of the Reasonable

Restoration Period is postponed by a period of one year from the original end date but

not beyond December 31, 2021. Notwithstanding the preceding sentence, the Agency

may require a shorter extension, or no extension at all.

For purposes of determining the credit amount allowable under § 42(a) in the

case of a credit year that ends on or after April 1, 2020, and not later than the end of the

Reasonable Restoration Period (taking into account any extension under the preceding

paragraph), if the Owner restores the building by the end of that extended Reasonable

Restoration Period, then the Owner must use the building’s qualified basis at the end of

the taxable year immediately preceding the first day of the casualty as the building’s

qualified basis for that credit year.

E.

EXTENSION TO SATISFY OCCUPANCY OBLIGATIONS

For purposes of § 42(f), if the close of the first year of the credit period with

respect to a building is on or after April 1, 2020, and on or before June 30, 2021, then

the qualified basis for the building for the first year of the credit period is calculated by

taking into account any increase in the number of low-income units by the close of the

6-month period following the close of that first year.

F

§ 42(f), if the close of the first year of the credit period with

respect to a building is on or after April 1, 2020, and on or before June 30, 2021, then

the qualified basis for the building for the first year of the credit period is calculated by

taking into account any increase in the number of low-income units by the close of the

6-month period following the close of that first year.

F.

CORRECTION PERIOD

For purposes of § 1.42-5, if a correction period that was set by the Agency ends

on or after April 1, 2020, and before September 30, 2021, then the correction period is

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extended by a year, but not beyond December 31, 2021. Notwithstanding the

preceding sentence, the Agency may require a shorter extension, or no extension at all.

V.

GRANT OF RELIEF FOR OPERATIONAL PROVISIONS

A. INCOME RECERTIFICATIONS

An Owner of a low-income building is not required to perform income

recertifications under § 1.42-5(c)(1)(iii) in the period beginning on April 1, 2020, and

ending on September 30, 2021. The Owner must resume the income recertifications as

due under § 1.42-5(c)(1)(iii) not later than October 1, 2021.

B. COMPLIANCE-MONITORING

For purposes of § 1.42-5, an Agency is not required to conduct compliance-

monitoring inspections or reviews in the period beginning on April 1, 2020, and ending

on September 30, 2021. The Agency must resume compliance-monitoring inspections

or reviews as due under § 1.42-5 not later than October 1, 2021.

C. COMMON AREAS AND AMENITIES

If an amenity or common area in a low-income building or project is temporarily

unavailable or closed during some or all of the period from April 1, 2020, to

September 30, 2021, and if the unavailability or closure is in response to the COVID-19

pandemic and not because of other noncompliance for § 42 purposes, then this

temporary unavailability or closure does not result in a reduction of the eligible basis of

the building.

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D

come building or project is temporarily

unavailable or closed during some or all of the period from April 1, 2020, to

September 30, 2021, and if the unavailability or closure is in response to the COVID-19

pandemic and not because of other noncompliance for § 42 purposes, then this

temporary unavailability or closure does not result in a reduction of the eligible basis of

the building.

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D. GUIDANCE PERMITTING AGENCIES TO CONDUCT TELEPHONIC

HEARINGS

For the purposes of an Agency’s QAP meeting the requirements of

§ 42(m)(1)(A), if a hearing on or after April 1, 2020, and before September 30, 2021, is

held by teleconference that is accessible to the residents of the locality where the

Agency has jurisdiction by calling a toll-free telephone number, then the hearing does

not fail to satisfy § 42(m)(1)(A) solely on the grounds that it was not held in-person.

E. EMERGENCY HOUSING FOR MEDICAL PERSONNEL AND OTHER

ESSENTIAL WORKERS

If individuals are medical personnel or other essential workers (as defined by

State or local governments) that provide services during the COVID-19 pandemic, then,

for purposes of providing emergency housing from April 1, 2020, to September 30,

2021, under Rev. Proc. 2014-49 or under Rev. Proc. 2014-50, Agencies, Issuers,

Owners, and Operators of low-income housing projects may treat these individuals as if

they were Displaced Individuals (defined under section 5.02 of Rev. Proc. 2014-49 or

Section 4.04 of Rev. Proc. 2014-50, as applicable). That is, Agencies, Issuers, Owners,

and Operators may provide emergency housing for these individuals pursuant to the

provisions of the applicable revenue procedure. See sections 12, 13, and 14 of Rev.

Proc. 2014-49 and sections 5, 6, and 7 of Rev. Proc. 2014-50.

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VI.

GRANT OF RELIEF FOR DEADLINES ASSOCIATED WITH QUALIFIED

RESIDENTIAL RENTAL PROJECTS

A. THE 12-MONTH TRANSITION PERIOD TO MEET SET-ASIDES FOR

QUALIFIED RESIDENTIAL RENTAL PROJECTS

For purposes of section 5.02 of Rev. Proc

nt to the

provisions of the applicable revenue procedure. See sections 12, 13, and 14 of Rev.

Proc. 2014-49 and sections 5, 6, and 7 of Rev. Proc. 2014-50.

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VI.

GRANT OF RELIEF FOR DEADLINES ASSOCIATED WITH QUALIFIED

RESIDENTIAL RENTAL PROJECTS

A. THE 12-MONTH TRANSITION PERIOD TO MEET SET-ASIDES FOR

QUALIFIED RESIDENTIAL RENTAL PROJECTS

For purposes of section 5.02 of Rev. Proc. 2004-39, the last day of a 12-month

transition period for a qualified residential rental project that ends on or after April 1,

2020, and before September 30, 2021, is postponed to September 30, 2021.

B. THE § 147(d) 2-YEAR REHABILITATION EXPENDITURE PERIOD FOR

BONDS USED TO PROVIDE QUALIFIED RESIDENTIAL RENTAL PROJECTS

If a bond is used to provide a qualified residential rental project and if the

§ 147(d) 2-year rehabilitation expenditure period for the bond ends on or after April 1,

2020, and before September 30, 2021, then the last day of that period is postponed to

the earlier of one year from the original due date or September 30, 2021.

VII.

EFFECT ON OTHER DOCUMENTS

Notice 2020-23, Notice 2020-53, Rev. Proc. 2004-39, Rev. Proc. 2014-49, and

Rev. Proc. 2014-50 are amplified.

VIII.

DRAFTING INFORMATION

The principal authors of this notice are Dillon Taylor and Michael Torruella Costa,

Office of Associate Chief Counsel (Passthroughs & Special Industries) and David White,

Office of the Associate Chief Counsel (Financial Institutions and Products). For further

information regarding this notice relating to the low-income housing credit, please

contact Dillon Taylor or Michael Torruella Costa on (202) 317-4137 (not a toll-free call);

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for further information regarding this notice relating to qualified residential rental

projects, please contact David White on (202) 317-4562 (not a toll-free call).