During 2013, the IRS will review various issues under Section 42 of the IRC, including the following:
- Guidance relating to the application of the design and construction accessibility requirements under the Fair Housing Amendments Act of 1988.
- Issues relating to compliance monitoring, including issues identified in Notice 2012-18. Here, the IRS will examine the efficacy of the Physical Inspections Pilot Program, under which HFAs were able to use HUD REAC inspections in lieu of the standard HFA physical inspections. In particular, the IRS will examine whether the fact that the units inspected will not be the same as the units for which files are reviewed will diminish the value of the HFA review process.
- Review of Revenue Procedure 2007-54, which provides disaster relief under Section 42 for Presidentially Declared Disaster Areas.
- Guidance concerning the exception under §42(d)(6) for any federally or state assisted building. This section has to do with the ability of acquired buildings to claim credits when the current owner purchases the building less than ten years after prior acquisition or substantial rehabilitation and the building is federally assisted.
- Regulations concerning utility allowances under §42(g)(2))B) (ii) for sub-metered buildings. Interim guidance on this issue was published in Notice 2009-44 and was published in the Federal Register of August 7, 2012.
We will monitor the IRS progress on these issues and let you know as soon as the Agency takes any action in these areas.