Agencies, Investors Criticize IRS Ruling Concerning Use Agreements

摘要

State low-income housing tax credit agencies and investors are complaining about potential adverse impacts from Rev. Rul. 2004-82, which requires state agencies to make sure that 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. At issue are the ruling's requirements that state housing credit agencies complete a review of all of their extended low-income housing commitments by December 31 to determine if they include the restrictions and amend all agreements that don't comply. If a state agency determines that an agreement doesn't comply with the requirements, tax credits will not be allowable for the current taxable year or any prior year unless the agreement is corrected within one year from the date of the determination. (For background, see Current Developments, Vol. 32, No. CD-16, p. 491.)