On August 25, 2017, President Trump declared
Hurricane Harvey a major disaster. As of September 6, 2017, the
Federal Emergency Management Agency (FEMA) designated 39 Texas
counties as major disaster areas.
Under Internal Revenue
Procedure 2014-49, the IRS provides housing tax
credit owners temporary relief from income requirements for
individuals displaced by a major disaster. Households are
eligible for emergency housing in Housing Tax Credit (HTC)
properties if their principal residence was located in an area
eligible for individual assistance. Owners and managers of
Housing Tax Credit (HTC) properties who wish to provide temporary
emergency housing to displaced residents must have written
approval from the Ohio Housing Finance Agency (OHFA). Review the
list of eligible counties here: https://www.fema.gov/disaster/4332.
Unless your written policies and procedures
provide a preference for households displaced by presidentially
declared disasters, you may not skip over households on your
waiting list to provide emergency housing. Likewise, you may not
displace existing households in order to provide emergency
Units leased as emergency housing are subject to
the program rent limits. The Internal Revenue Procedure 2014-49
allows units to be used on a transient basis and relieves the
owner and household from providing evidence of income
eligibility. The emergency relief period ends August 25, 2018.
After this date, displaced households that cannot document
eligibility for the HTC program cannot occupy program units.
Please review Revenue Procedure 2014-49 carefully
and in its entirety to avoid noncompliance. If you have any
questions, please contact Betsy Krieger at email@example.com.