Comments on IRS Proposed LIHTC Average Income Regulation Due December 29
On October 29, the IRS published a notice of proposed regulations on the Average Income minimum set-aside for public comment. The proposed regulations, if finalized, will provide guidance on implementation of the Average Income Test (AIT). The AIT, established by the Consolidated Appropriations Act of 2018, allows owners of Housing Credit properties to elect to serve households earning up to 80 percent of area median income (AMI), as long as the income designations of the units in the property average no more than 60 percent of AMI. The proposed rule establishes a new regulation for the AIT at Section 1.42-19 and also modifies existing Housing Credit regulations for the “next available unit rule” at Section 1.42-15.
For additional information about the proposed regulations, summary information is available from Novogradac and NCSHA below:
Comments are due to IRS 60 days after the publication of the proposed rule in the Federal Register, which is December 29. OHFA encourages its owner and development partners to offer feedback to the Federal eRulemaking Portal at www.regulations.gov.
Contribute Feedback for OHFA Comment Letter
OHFA will of course be submitting comments to the IRS as well. Owner and development partners are welcome to provide comments to OHFA for consideration and potential inclusion in our comment letter. Specific comments about how the proposed regulations impact current and future projects in your portfolio would be beneficial to us. Comments for consideration may be sent to QAP@ohiohome.org by December 4.
Have you registered for the Ohio Housing Conference yet?
If you have, thank you! If you haven't, you should!
The 22nd annual Ohio Housing Conference will be held December 1-2. The conference theme this year is "emPowered. People. Partnerships. Possibilities." and will be entirely virtual.