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Notice 2019-52: Low-income housing credit, expanded California wildfire-related disaster relief

Low-income housing credit, California wildfire relief

The IRS today released an advance version of Notice 2019-52 that expands the emergency housing and low-income housing credit monitoring relief provided by earlier revenue procedures.


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In 2014, the IRS issued two revenue procedures:

  • Rev. Proc. 2014-49 [PDF 74 KB] providing temporary relief from certain requirements under section 42—i.e., carryover allocation relief—as well as emergency housing relief for individuals who are displaced by a major disaster from their principal residences in certain major disaster areas.
  • Rev. Proc. 2014-50 [PDF 78 KB] that automatically suspended certain requirements under section 142(d) for qualified residential rental projects financed with exempt facility bonds issued by state and local governments, for one year following a presidential declaration of a qualifying major disaster.  During this period, the income requirements for units occupied by individuals displaced by the disaster were suspended, and other requirements of section 142(d) are modified to accommodate this suspension.

Notice 2019-52 [PDF 29 KB], as released today, applies with respect to wildfires in certain California counties, and expands the emergency housing and compliance monitoring relief that was previously provided by Rev. Procs. 2014-49 and 2014-50.

  • The expanded relief in Notice 2019-52 is limited to “CA Wildfires Major Disaster” (defined as the three counties of Butte, Los Angeles, and Ventura).
  • In general, the provisions of Rev. Procs. 2014-49 and 2014-50 apply to the CA Wildfires Major Disaster without modification. For example, Notice 2019-52 states that it does not modify the carryover allocation relief provisions of Rev. Proc. 2014-49 because the only low-income housing project damaged or destroyed by the wildfire had been placed in service before the disaster.
  • Notice 2019-52 solicits public comments regarding any desirable modifications to Rev. Procs. 2014-49 and 2014-50.

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