Deadlines Extended for Low-Income Housing Credit

The IRS (in Notice 2022-5) extended several deadlines related to the low-income housing credit, in response to the continuing coronavirus pandemic and precautions necessitated by new disease variants. The extensions generally apply to deadlines that occur between April 1, 2020 and December 31, 2022, for the:

  • 10-percent test for carryover allocations

  • 24-month minimum rehabilitation expenditure period (through December 31, 2023)

  • Placed in service deadline

  • Reasonable period for restoration or replacement after a casualty loss

  • Period for satisfying occupancy obligations

  • Correction period

Certain requirements for housing agencies are also postponed or temporarily waived, including tenant file reviews, physical inspections to monitor compliance, availability of common areas and amenities, the conduct of public hearings, and the provision of emergency housing for medical personnel and other essential workers.

Finally, for qualified residential rental projects, the 12-month transition period is extended through 2022, and the two-year rehabilitation expenditure period for bonds is extended through 2023.

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