FORMS & TEMPLATES
Audit Waiver Request Form
Executed Audit Waiver Representation Letter
Sample Management Representation Letter
Financial Statement Template
Auditor Report Template
Minimum Gain Analysis
RESOURCES
First Year Credits & Tax Credit Recapture Presentation
Minimum Gain Presentation
IRS Notice 2021-12 was recently issued in regards to the LIHTC industry, some of the highlights are listed below.
- There was an extension to meet the 10% test for buildings with a carryover allocation due on or after April 1, 2020, and before September 30, 2021. The due date is postponed to the earlier of one year from the original due date or September 30, 2021.
- There was an extension to meet the 24-month minimum rehabilitation expenditure period for buildings with a due date on or after April 1, 2020, and before September 30, 2021. The due date is postponed to the earlier of one year from the original due date or September 30, 2021.
- There was an extension for LIHTC buildings that were supposed to be placed in service for by close of calendar year 2020. The due date has been extended to December 31, 2021.
- There was an extension to fix certain casualty loss events that were not due to a pre-COVID-19-pandemic Major Disaster, if the reasonable period to restore the loss by reconstruction or replacement 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.
- For purposes of Section 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.
- Income recertifications are not required to be completed for the period beginning April 1, 2020 and ending on September 30, 2021. Owner must resume income recertifications no later than October 1, 2021.
- Agency is not required to conduct compliance-monitoring inspections or reviews in the period beginning April 1, 2020 and ending September 30, 2021. Agency must resume compliance-monitoring or review no later than October 1, 2021.
- If an amenity or common area of a LIHTC building or project is temporarily unavailable or closed during some time or all of the period between April 1, 2020 and September 30, 2021, and if the unavailability or closure is in response to the COVID-19 pandemic and not because of other noncompliance for Section 42 purposes, then this temporary unavailability or closure does not result in a reduction of the eligible basis of the building.
- Extension of the 12-month transition period to meet set-asides for Qualified Residential Rental Projects where the last day of a 12-month transition period ends on or after April 1, 2020 and before September 30, 2021 is postponed to September 30, 2021.
- If a bond is used to provide a qualified residential rental project and if the Section 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.
