We are happy to report that the Internal Revenue Service finally issued much delayed guidance (Notice 2021-12) on Housing Credit program deadlines related to the COVID-19 pandemic. We would like to credit up front the efforts of NCSHA for consistently communicating the significance of these extensions to the IRS.
Notice 2021-12 follows the July 2020 issuance of Notice 2020-53, which provided extension of important deadlines for the Housing Credit, including the 10 percent test, rehabilitation expenditures and other flexibilities needed to address COVID-19-related issues.
Of significance among the items addressed in the new guidance, it provides extensions until September 30, 2021, for the 10 percent test deadline and 24-month minimum rehabilitation expenditure period, and an extension to December 31, 2021, for the placed in-service deadline. Through September of 2021, the guidance also offers a moratorium on compliance monitoring, communities whose states closed common areas will not have a reduction in eligible basis and QAP hearings will be able to take place by phone.
This is a much needed relief for the industry and in addition to NCSHA, we want to recognize the efforts of the Affordable Housing Tax Credit Coalition for coordinating a sign on letter through which HAG and over 140 industry partners requested deadline extensions of the IRS and Treasury Department due to the COVID-19 pandemic. We also want to acknowledge our congressional partners who weighed in with the Treasury Department, recognizing the significance of these extensions to the continued production of affordable housing.