IRS Grants LIHTC Disaster Relief for Hurricane Sandy Victims
The IRS recently issued Notice 2012-68, which suspends certain requirements under Section 42 of the Internal Revenue Code for low-income housing credit projects to provide emergency housing relief needed as a result of the devastation caused by Hurricane Sandy and associated storms.
The IRS will temporarily suspend income limitation and non-transient requirements for LIHTC properties that have received approval from the state housing agencies to rent vacant units to individuals displaced by natural disasters. The IRS has also determined that the projects to which this approval may be given may be located in any state, regardless of whether a major disaster declaration with Individual Assistance has been issued for that state. Other rules and requirements of Section 42 will continue to apply during the temporary housing period.
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