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Source: NCSHA

The Internal Revenue Service released Notice 2022-52, which builds on previous notices related to COVID-19 relief the IRS has provided to Housing Credit agencies and their industry partners, most recently Notice 2022-05. The notice’s publication was announced by the Biden-Harris Administration in a statement on its progress meeting goals set forth in the administration’s Housing Supply Action Plan.

Specifically, Notice 2022-52 amends Notice 2022-05 by taking the following actions:

  1. Extends the PIS deadline until December 31, 2022, for projects that received an allocation of Credits in 2018 and thus had an original PIS deadline of December 31, 2020. The previous notice (Notice 2022-05) provided the same extension, which is repeated in Notice 2022-52.
  2. Extends the PIS deadline until December 31, 2023, for all projects that received an allocation of Credits in 2019 and thus had an original PIS deadline of December 31, 2021. The previous notice provided developments that had an original 10 percent test deadline in the first quarter of 2020 only until December 31, 2022, while developments that had a 10 percent deadline in the second, third, or fourth quarter of 2020 had until December 31, 2023, to place in service.
  3. Extends the PIS deadline until December 31, 2024, for all projects that received an allocation of Credits in 2020 and had an original PIS deadline of December 31, 2022. The previous notice provided these projects a one-year extension until December 31, 2023.
  4. Extends the PIS deadline until December 31, 2024, for all projects that received an allocation of Credits in 2021 and had an original PIS deadline of December 31, 2023. The previous notice did not provide relief to these projects.
  5. Extends by up to 24 months the deadline for restoration after a low-income building suffers a casualty loss for any reason (including casualties related to Major Disasters, but also any other casualty) if the original restoration deadline ended on or after April 1, 2020. However, the extended deadline may be no later than December 31, 2023. The previous version of the notice provided this extension for up to 12 months and not beyond December 31, 2022.
  6. Extends by up to 12 months the period for correcting noncompliance if the original correction period ended between April 1, 2020, and before December 31, 2022. However, the correction period may go no further than December 31, 2023, and agencies may require a shorter extension or no extension at all. The previous notice also provided up to a 12-month extension but not beyond December 31, 2022.
  7. Allows Housing Credit agencies the flexibility to extend until December 31, 2023, a waiver of compliance monitoring physical inspections. The previous notice provided this flexibility to states through December 31, 2022.