NCSHA Seeks Approval for Alternative Ways to Comply with Revenue Ruling On Extended Use Agreements

摘要

The National Council of State Housing Agencies (NCSHA) has asked the Internal Revenue Service to approve alternative methods for complying with a ruling requiring state agencies make sure that existing extended use agreements provide for eviction and rent restrictions for the full extended use period and not just the three years after the expiration of the period. "We're talking with the IRS about ways to provide protections without amending extended use agreements," said NCSHA Executive Director Barbara Thompson. Section42(h)(6)(E)(ⅱ)(Ⅰ) of the Internal Revenue Code bars eviction or termination of tenancy except for good cause or increases in rents other than those allowable under tax credit program limits during the three-year period after the expiration of the extended use period. In Rev. Rul. 2004-82, issued last July, the IRS said these restrictions also apply during the extended use period.