fbpx

search

IRS Publishes Final Regulations on Utility Allowances

– Changes to Actual Consumption Sub-metering from Renewable Energy Sources On March 4, 2019, the IRS published final regulations to amend the utility allowance requirements for Low-Income Housing Tax Credit (LIHTC) projects. While the final regulations carry forward many of the requirements in the temporary regulations published March 3, 2016, a few of the provisions were modified prior to being adopted in the final regulations. These changes are summarized below. Energy obtained directly from renewable sources – Qualification as a Renewable Energy Source Per 1.42-10 (e)(1)(i), an energy source may qualify as a renewable energy source described in Section 48 or Section 45, even if the building owner does not actually qualify for or receive any credits under Section 48 or Section 45 for the renewable energy source. (See 1.42-10(e)(1)(i)(D)) Temporary Regulations – The text of paragraph 1.42-10(e)(1)(i)(C) in the temporary regulations was unclear as to whether the owner of the energy source had to qualify for, or receive credit for, the energy source in order for the energy source to meet the requirements of the 1.42-10(e)(1)(i). Final Regulations – The final regulations provided clarification by adding paragraph (D) to 1.42-10(e)(1)(i), which states: "Determinations under (e)(1)(i)(C)( 1 ) and ( 2 ) take into account only the man...
Continue reading

IRS Amends LIHTC Compliance Monitoring Requirements

On February 13, 2019, the IRS approved final regulations to amend the compliance monitoring requirements for Low-Income Housing Tax Credit (LIHTC) projects. The final regulations will be published in the Federal Register on February 26, 2019. Read the final regulations here. While the final regulations carry forward many of the requirements in the temporary regulations published February 25, 2016, a few of the provisions were changed prior to being adopted in the final regulations.  The changes include: Changes to Sample Size – The required minimum sample size for low-income unit and certification inspections is now solely based on the sample size required by the Minimum Unit Sample Size Chart provided in Revenue Procedure 2016-15, referenced as "Table to Paragraph (c)(2)(iii)" in the final regulations. This is the same sample size required by HUD for REAC Inspections. See 1.42-5 (iii)(b). This table uses a scale of 1-27 units based on the size of the property . ​ Previously, under the temporary regulations and through the publication of Revenue Procedure 2016-15, the required sample size for inspection was the lesser of 20% of the low-income units or the number of low-income units reflected in the Minimum Unit Sample Size Chart in the Revenue Procedure. The final regulations removed the 20% component of this rule and inste...
Continue reading

Latest Blogs

24 August 2019
REAC Inspections
On August 21, 2019, HUD published a set of proposed rules in the Federal Register "Notice of Demonstration To Assess the National Standards for the Physical Inspection of Real Estate and Associated Protocols" 24 CFR Parts 5 and 200; [Docket No. FR–6...
21 August 2019
REAC Inspections
On August 20, 2019, HUD released the first of the new NSPIRE protocols which will be expected to become active once the pilot/demonstration program has concluded. This is a first look at what deficiencies will look like under NSPIRE, the inspection ...
16 July 2019
REAC Inspections
July 8, 2019 HUD's Office of Multifamily Housing Asset Management and Oversight released a memorandum reiterating the rules surrounding notice prior to entering resident's units, availability of documentation for residents to review, and clarificati...
09 July 2019
REAC Inspections
The House Financial Services Committee passed a bill - the Safe Housing for Families Act of 2019 (H.R. 1690), and it will likely move forward to a full vote in the near future. The bill provides $300 million over three years to fund the installation...
05 June 2019
REAC Inspections
Enter your text here ...HUD REAC Released a PowerPoint document (Click here) in an email to REAC Inspectors. This presentation is intended to provide clarify to sometimes subjective interpretations of what is considered to be "Non-Industry Standard"...

Blog Archive