IRS, Treasury Propose Average Income Test Regs
On Oct. 29, the IRS published for public comment a notice of proposed rulemaking on the Housing Credit Average Income Test minimum set-aside. The regulations, once finalized, would provide guidance on implementing the AIT, as established by the Consolidated Appropriations Act of 2018, which allows owners of LIHTC sites to elect to serve households earning as much as 80 percent of area median income (AMI), as long as the income designations of the property’s units average no more than 60 percent of AMI.
Comments on the proposed rule are due Dec. 29. Commenters are strongly encouraged to submit public comments electronically. Submit electronic submissions via the Federal eRulemaking Portal at www.regulations.gov (indicate IRS and REG–104591–18) by following the online instructions for submitting comments.