News | The IRS Further Extends COVID Relief

With Notice 2022-52, the IRS amended some of the reliefs granted earlier in the year in Notice 2022-05, which itself extended earlier reliefs. Some additional reliefs were also added with the newest Notice. These provisions were widely hoped for in the industry and were requested most prominently by the National Council of State Housing Agencies (NCSHA). We thank them for their efforts.

Below we provide a summary of the key changes. Our chart listing the provisions still in effect is also provided in this post and as a downloadable document. 

Placed in Service

For projects with an original deadline of:

2021 |The deadline has been extended through 2023. Past guidance had granted this through 2022 or 2023, depending on which quarter in 2019 the original 10% test deadline was due.

2022 | The deadline has been extended through 2024. This adds a year after the former extension. 

2023 | The deadline has been extended through 2025. This is a new provision.  

Restoration Period for Casualty Loss 

The period to restore is extended from 12 to 24 months from the normally allowed maximum period, but no later than the end of 2023. The latest deadline was extended from the end of 2022. This still covers all forms of casualty loss and is subject to further limitation by the state agency. 

Correction Period

A state agency is still allowed to extend the usual correction period after discovering noncompliance up to 12 months, but this can now be through 2023. The original extension was through 2022. 

Waiver of Physical Inspections

A state may waive physical inspections through 2023. This has been extended from the end of 2022.

Click the image below to download the chart as a document