COVID-19 has put forth unprecedented challenges in all aspects of life, including how business is conducted on a day-to-day basis, and our top concern is the health and wellness of our customers and our employees.
In recent weeks we requested comment from the Development Community with regard to challenges that all of you are facing in preparing for the 2nd Round deadline of June 25, 2020. We received only four comments, each with a different view of the current situation that we face in our mission to provide quality affordable housing in the State of Oklahoma. Due to the small number and nature of the comments received, OHFA is electing to allow the 2nd cycle to proceed as planned, with no changes.
In response to COVID-19, and with the authority afforded to us under IRS Revenue Procedures 2014-49 and 2014-50, OHFA is granting “blanket” extension for everyone who has received a tax credit award in either 2018 and/or 2019.
For those that received an award from OHFA in 2018, you are granted a one year extension on the placed-in-service deadline. Therefore, if you were originally required to place in service by December 31, 2020, you are now required to place in service by December 31, 2021.
For those that received an award from OHFA in 2019, you are granted a 6 month extension on the 10% Test Deadline, and a one year extension on the placed-in-service deadline. Therefore, if the 10% deadline for your Development was June 5, 2020, the new deadline to meet the 10% test is December 5, 2020, and the 10% Cost Certification is due to OHFA on January 31, 2021. Additionally, if the 10% deadline for your Development was December 4, 2020, the new deadline to meet the 10% test is June 4, 2021, and the 10% Cost Certification is due to OHFA on July 31, 2021. Therefore, if you were originally required to place in service by December 31, 2021, you are now required to place in service by December 31, 2022.
We will be modifying Carryover Agreements to reflect these changes in the coming weeks.
Furthermore, the National Council of State Housing Agencies (NCSHA) is working diligently with the IRS to seek more relief due to challenges presented by the COVID-19 Pandemic. Please see the attached chart which shows the status of efforts in other areas that may be of interest to you. As always, we appreciate your partnership.
If you have any questions, please contact Darrell Beavers, [email protected].
