Wednesday, February 6, 2013

Tax relief for Individuals Displaced by Hurricane Sandy

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Tax relief for Individuals Displaced by Hurricane Sandy:


Notice 2013-9 provides relief from certain requirements in § 142(d) to Issuers of tax-exempt bonds that approve the housing of individuals displaced due to the effects of Hurricane Sandy (“displaced individuals”) in residential rental projects ("Projects") financed with tax-exempt bonds under § 142(d).  This Notice complements Notice 2012-68 which provides relief from certain requirements for residential rental projects utilizing § 42 low-income housing credits. 

The Internal Revenue Service is suspending certain requirements under § 142(d) of the Internal Revenue Code for qualified residential rental projects financed with exempt facility bonds under § 142 to provide emergency housing relief needed as a result of the devastation caused by Hurricane Sandy and associated storms (hereafter “Hurricane Sandy”).

This Notice provides relief for all qualified residential rental projects described herein. For those projects that are also low-income housing tax credit (“LIHTC”) projects, this Notice should be read with Notice 2012-68, 2012-48 I.R.B. 574, which suspends certain low-income and non-transient requirements under § 42 to allow low-income housing credit projects to provide emergency housing needed because of Hurricane Sandy.