IRS Issues New Guidance on LIHTC Qualified Allocation Plans (QAPs), Seeks Comment on Further Guidance - December 13, 2016

As reported by Novogradac and Company on December 12, the IRS has issued new guidance regarding QAPs.   Revenue Ruling 2016-29 states that Internal Revenue Code neither forces nor encourages a state allocating agency to require local approval. Notice 2016-77 states that the allocation preference for LIHTC properties in a qualified census tract (QCT) that contribute to a concerted community revitalization plan (CCRP) applies only if a plan containing components in addition to the LIHTC development exists by the allocation date.  It also states that the IRS is considering issuing further guidance on the QCT/CCRP preference and seeks public comments on content.  Comments will be accepted through February10.