Earlier this month, the Pennsylvania Housing Finance Agency (PHFA) issued guidance on extensions of 10% Tests and Placed in Service Dates as a result of COVID-19.
2019 Developments that entered into a Carryover Agreement prior to March 30, 2020, will receive a six month extension to meet the 10% Test. The new deadline for those owners to incur more than 10% of the Development’s reasonably expected basis is April 25, 2021. Developments that were awarded a Forward Commitment of 2020 Low-Income Housing Tax Credits (LIHTC) and entered into a Carryover Agreement in April 2020 will also have until April 25, 2021, to incur more than 10% of the Development’s reasonably expected basis.
2018 Developments that applied in the 2018 Application Round, received a 2018 Allocation, and continue to hold an Allocation of 2018 credits may qualify for a 12-month placed in service extension (until December 31, 2021) by submitting a written request to PHFA. 2018 Developments that applied in the 2018 Application Round, received a Forward Commitment of 2019 LIHTC subject to 2018 deadlines, and continue to hold an Allocation of 2019 credits may qualify for a 12-month placed in service extension (until December 31, 2021) by submitting a written request to PHFA. Written requests for placed in service date extensions are due to PHFA no later than October 1, 2020.
More information about PHFA’s extension guidance can be found here.
We will be hosting a webinar featuring Holly Glauser, Director of Development at PHFA, on June 17 at 2 pm. Holly will be discussing these extensions and more. Register here for this webinar.
If you have any questions regarding this information, please feel free to contact Elizabeth Harriger, CPA, Partner & Director of Affordable Housing Services at McKonly & Asbury at firstname.lastname@example.org or by calling (717) 972-5729.
As further changes develop, we’ll continue to keep you informed. Be sure to check back to our COVID-19 Resource Center for additional information and updates.