IRS hurricane-relief, emergency housing - KPMG United States
Share with your friends

IRS hurricane-relief, emergency housing for disaster victims

IRS hurricane-relief, emergency housing

The IRS today issued a release announcing temporary relief for owners and operators of low-income housing projects located anywhere in the United States and its possessions. The relief is intended to allow these property owners and operators to provide temporary emergency housing to individuals who are displaced by a major disaster from their principal residences, regardless of the income of these individuals.


Related content

As noted in the IRS release—IR-2017-165—owners and operators, in conjunction with agencies and issuers, are authorized to disregard income limits, transience rules, and certain other restrictions that normally apply to low-income housing units when providing temporary emergency housing to displaced individuals. As a result, owners and operators can offer temporary emergency housing to displaced individuals who lived in a county or other local jurisdiction designated for individual assistance by the Federal Emergency Management Agency (FEMA). Upon approval, emergency housing can be provided for up to a year after the close of the month in which the major disaster was declared by the president.

IRS guidance—Rev. Proc. 2014-49 [PDF 74 KB] and Rev. Proc. 2014-50 [PDF 78 KB]—also modifies disaster relief for low-income housing projects including the reasonable restoration period and qualified basis for recapture relief; the tolling period for severely damaged, destroyed, or uninhabitable buildings in the first year of the credit period; and  modifying the safe harbor relating to the amount of credit allowable to a restored building to provide relief in circumstances where the restoration cost is less than the eligible basis cost.

This relief automatically applies as soon as the president declares a major disaster and FEMA designates any locality for individual or public assistance. For a list of recent disasters, read the disaster relief page on the IRS website.

© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


Request for proposal