IRS and regulations on low income housing credit | KPMG | GLOBAL

Regulations: Low-income housing credit compliance monitoring

State housing credit agency monitoring

The Treasury Department and IRS today released for publication in the Federal Register final and temporary regulations (T.D. 9753) and by cross-reference, proposed regulations (REG-150349-12) concerning the compliance-monitoring duties of a state or local housing credit agency for purposes of the low-income housing credit.


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The final and temporary regulations [PDF 215 KB] revise and clarify certain rules relating to the requirements to conduct physical inspections and review low-income certifications and other documentation.

The proposed regulations [PDF 200 KB] include a request for comments and a public hearing.

The IRS issued as related guidance Rev. Proc. 2016-15 [PDF 99 KB] that provides  the minimum number of low-income units in a low-income housing project for which a state or local housing credit agency must conduct physical inspections and low-income certification reviews and permits the physical inspection protocol established by the Department of Housing and Urban Development (HUD) Real Estate Assessment Center (the "REAC protocol") to
satisfy the physical inspection requirements of Reg. sections 1.42-5(d) and 1.42-5T(c)(2)(ii) and (iii). 

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