| The Internal Revenue Service (“IRS”) is suspending certain requirements of the Internal Revenue Code (the “Code”) as they relate to qualified residential real estate projects financed with tax exempt facility bonds under Section 142 of the Code (“Bond Projects”) and low income housing tax credit projects under Section 42 of the Code (“LIHTC Projects”) to provide emergency housing relief needed as a result of the devastation caused by recent severe storms in Colorado.
Notice 2013-63, effective September 14, 2013, addresses Bond Projects and
Notice 2013-64, also effective September 14, 2013, addresses LIHTC Projects (collectively, the “Disaster Notices”). For those projects that are both Bond Projects and LIHTC Projects (“LIHTC/Bond Projects”), the Disaster Notices should be read in conjunction with each other.
Under Notice 2013-63, the IRS has suspended income limitations and other requirements of Section 142(d) of the Code for both Bond Projects and LIHTC/Bond Projects. Issuers of the tax exempt facility bonds that want to allow the use of a project to temporarily house displaced individuals, must approve that use and must determine the appropriate period for temporary housing, not to extend beyond September 30, 2014 (“Temporary Housing Period”). CHFA, as the allocator of low income housing tax credits, must approve the length of the Temporary Housing Period for the purposes of Section 42 of the Code. An issuer of tax exempt facility bonds other than CHFA must consent to adopt the same Temporary Housing Period adopted by CHFA for Bond or LIHTC/Bond Projects.
Currently, CHFA has chosen June 30, 2014, as the termination date of the Temporary Housing Period. Prior to June 30, 2014, CHFA will reassess the housing situation at the time to determine if the period needs to be extended.
This matrix is a just a summary of the terms of the Disaster Notices. Please review the applicable Disaster Notice carefully with your tax counsel. If you have any questions, please contact your project’s Program Compliance Officer at CHFA.