As previously reported in this Blog, analysis of the new 2019 tax credit compliance monitoring rules makes it clear that a large number of tax credit properties will have many MORE units inspected by state agencies than in the past.
The National Council of State Agencies in their recent Washington Report have conveyed some welcome news (below).
"While the final regulations are technically effective as of their publication, IRS has confirmed to NCSHA that states may continue to use the compliance monitoring protocol under Revenue Procedure 2016-15 until they update their QAPs to reflect the new requirements or until December 31, 2020, at the latest."
As expected, after consideration of the data, most states and owners are reporting a dramatic increase in the number of units to be inspected across their portfolio and this represents a significant additional expense and need for personnel. The delay and additional planning time will be beneficial. We are also aware of industry effort to use the time to work with the IRS to make adjustments to the new regulation. As always, we will keep you posted!
The NCSHA report can be read HERE.