On January 11, the IRS released Notice 2022-05, which grants extensions for COVID-19 relief and addresses additional support to be allocated post-pandemic. The relief includes extended compliance deadlines, as well as numerous temporary waivers and changes to compliance inspection requirements. The IRS notice also permits property owners to provide temporary emergency housing to medical personnel and essential workers as displaced individuals.
The relief included in IRS Notice 2022-05 applies to:
- 10% Test for Carryover Allocations
- 24-Month Minimum Rehabilitation Expenditure Period
- Place in Service Deadline
- 2-Year Rehabilitation Period for Bonds
- Restoration or Replacement Period for Casualty Loss
- Common Areas and Amenities
- 12-Month Transition Period to Meet Set-Asides for Qualified Residential Rental Projects
- Occupancy Obligations
In addition, the notice addresses a number of compliance monitoring issues disrupted by the ongoing pandemic, including correction periods, review of tenant files and physical inspections.