Share with your friends

Qualified residential rental projects financed with tax-exempt bonds

Qualified residential rental projects

The IRS today released an advance version of Rev. Proc. 2019-17 that provides guidance regarding the general public use requirements for qualified residential rental projects financed with tax-exempt bonds under section 142(d).


Related content

Rev. Proc. 2019-17 [PDF 21 KB] coordinates these requirements with the provisions in section 42(g)(9). Under section 42(g)(9), a project does not violate the general public use requirement under section 42 as a result of specified occupancy restrictions or preferences (for example, certain housing preferences for military veterans).

Today’s revenue procedure only applies to exempt facility bonds that finance qualified residential rental projects under section 142(d) and does not affect the rules applicable to exempt facility bonds that finance other exempt facilities.

A qualified residential rental project (as defined in section 142(d)) does not fail to meet the general public use requirement applicable to exempt facilities solely because of occupancy restrictions or preferences that favor tenants described in section 42(g)(9) (for example, certain housing preferences for military veterans).

This revenue procedure applies to bonds sold before, on, or after April 3, 2019.

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?


loading image Request for proposal