Corrections & Final_PS-78-91

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-Zedera1 R q s t c r / VoI. 38, No. 2 5 / Tuesday. February 9, 1993 i Rules a n d Re&tians

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Correction to final regulations.

DEPARTMEHT OF THE TREASURY

ACTIOH:

Internal Rcvtnua Servjca

SUYLURY:

26 CFR Put 1

which wns published in the F d e r ~ l
Register for Wednesday. S e p t m k r 2,

IrJ.84W
RIM 1 3 S A Q O f

Procedum for Monkorlng Compllanc8
Wllh L -winsome Houllng Credit
Reqd. -nwnts; Comctlon

This document contains
mrrecrioas to Tntssury &cision 8430,
1992 (57 FR 401 181. T h e bu1

m l a t i o n s d a t a to the requirament
that State rlloeetion p l u s provide r
proeedura far State m d 1-1 housing
a e d i t ngendss to mooitor for
complianca with tho requlrsmentc a t
mdion 42 ottbo Internal Revenurn Code.
EFFECIWE DATE Ilme 30,1993.

7747

7748

Federal Register I Val. 58, No. 25 1 Tuesday. February
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FOR N A l W E R [HFO R M A T I N COWACT:
Paul F. Handlemnn, I2021 622-3040

(not

a toll-he4 call]..
SUPPLEUEHTAFIY IHFORMAfKIM:

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Dackgmund ,
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Ths finel mgulations that are thd
subject of t h e a (;omions provid~
rulas under -ion
42 of the lntarnal Rnvenuo Code mquiring Slate end lop1
housing credit agencies 10 report any
noncompliance to the Internal Revenum
Service.
.h'e'd for h d i o n
As published. T.D. 8430 contrins
errors which may prove to be
misleading and is in need of
clarification.
Correction of Publication
- Accordingly. the publicetion of the
finel regula~ions(T.D. 8430). which wwas
the subject of FR Doc. 92-23 156. is
correctad m follows:
1. On page 40122. column 2. 5 1.42S(c][2l[il, line 1, the languaga "(il
require that the Agency mview the" is .
corrected to read "{i) Require that the
Agcncy raview tha".
2. On page 40122. column 2, S 1.4%.
S(c)[~](ii),iine 1 the language "Iiil
contain at lead one of the" is c o n d e d
to read " ( i i ) Contain at Iehsr one ofthe".
Cynrbia E G-by.
~ l t e r n a t eFedcml Reginer L'bisan Ofictr.
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A s s i s l ~ n Chit!
t
h u n s c l fOtpomteI. .
',IFR W 93-3093 Filed 2-8-93; 8:45 unl
BILUUG eoor - 1 4
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9, 1993 1

Rules and Regulations

Corrections
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OEPAR~MENT
OF r n TREASURY:
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.; In rule d m e n t 82-21158 beginning.
onpage40118in&eksueol-.:.-.:.:..
Wednesdmg, September Z,19gZ, mhd
b e fdoWh8
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n . ...
: <..' .'-.'.. . 1- - ,
..-.-.... . ,.,-11.424
. I.~n page rolzz, h t6e m n d 1: . .
column, in f 1,1Z-~(c](~)(vii], in the .-- third h e , "43Id11" should read "4ZIdl)"
2. On thesame pqa.in thathid . 2

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c o l b in'5 r.rz-s[cI(s~,.
h.tha fouah
line, "(cl(2) and
(2)" lhould ?rid :'[e)(l) .- . . . . . .. . .. . . - .. .--!
and [2),,.

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p'agm 46123;in the 2d abl&,'?
3.
in $1.42-5(&][2). Ln ths 11th be;- .' .

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"[c)(2[ii]W,(B)
or (c)" & d d m d '. :I'-,

"lc)lZl[ii)(N,fBlor (Cl"-'r: - -

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r.OnLhesamepage,hthnW
mlumn, in 5 1.4z-S(T)~l)(iil, in the sixth
ha. ."pmfomY should read .
"pmformr". . . .
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:~1;8 r u i c r ; r i l i c ~ ~ ~ t eLo!.
r 57. i i o . 171

/ LVcdncsday, S C ; I I C : ~ >2.C 1391
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PapcrworS, Reduction Act

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DEPART- htENT
OF THE TaEASJGY .
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-latema1~ e v e n u eService
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26 CFR Parts 1 and 632

[fa.& G O ]

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RlK 1 5 ~ S A O O f

Procedu:e for Monitoring Conplian=e
With Low-lneone Housifig Credit
Requirements

r z ~ s - r : L~ttrnalRevenue Service.
7reas-ry.
xGtr3s: Final regulations.

s u u t . ! ~ ~This
~ : dozcment c ~ n t a i ~final
s
I:=crnt Tax Reguialions relating 10 the
rc.:urexent that State allo~atiot:plans
j r z v d e a procedure for Stz!? and local
:?-sl-:
credit a z ~ n c i r sto nonitor for
c:-;rl:rncc with !he rcqcirezer.ts of
cc:!~o:. 42 of thc ir.tcm;ll Rercnue Code.
S ; t : e a d low[ housing credit agencies
;re 10 repon an!. noncomplisnct to the

Irrte:n~L Revenue Scrrfice. These final
r z z ~ i z ~ a dn lse c l State ~ z locel
d
5o:sing crcdtr agcncles, orvncrs of
kci!diqs o: ?:ojccts io; w'r.i=h :be :OW:zzome hogsing c r e d ~ is
t clz:ccd. d:
: E X ? ~ > - C X cizirning !be loxv-ir.come
kouslng
EFFEMV:
2 2

cedi!.
Dry=:

These F ~ a :egu:~tions
l

e??=t~veIune 33. 1993.

FO; ! W I T H E R IFiFOilH.LTIDK COI.TTACT:

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F. !-I-landiemas. 1 1 ~ 2CZ-30;0
)
[not a

:>!!-free cal!].
SC?PLEMEHtARY IHFORMLTIOH:

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Thc c o l ~ c c t i o nof inlormation
contained in this final r q u l a t j o n has
been rcviewed and upprovcd by Ihe
Office of M a n a g e m c ~ tand Dudgel in
accotdoncc with thc l'apcncork
Reduction Act 011980 (44 U.S.C. 35W{h]]
under conkol number l54S-1291.The
estimated annua! burdcn pcr Slate or
local government responden:/.
rccordkeeper varies [corn 10 hours lo
1.SW hours. with an estirnaled avcragc
of 250 hours. The estimated annual
burdcn lo'r 211 other respondcntl
rec~rdkcepersvaries from .S hours to 3
hours. with an cstimaled arcrage of 1
hour.
These eslimales are an approximation
of the average timc expcctcd to be .
necessary [or the coUcction 01 .
informa tion. They are bascd on such
iafomalion as is nvailable to rhc
IntcrnaI Revenue Scrvicc. Individual
responder.ts/recordkee,7en may require
greater or less h e . depending on heir
particular c i s t a n c c s .
Commentb concerning the accuracy of
this b d e n ' a n d suggestions for reducing.
this .burdenshould be directed to the
Internal Revenue Service. Attn: IRS
Reports CIearance Officer T:!?P,
Washngton, DC 20224. and 10 the Ofice
ofManagement and Budget Aftn: Desk
Officer for the Department of the -.Treasury, Office of Information aad
Reguiatory Affairs. Washin~toa.3C

Rulcs and R c ~ a t a t i o z s

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4 2 ( m ) [ l ) ( A )tt~r
. hous~r:; crcrli! doll;~r
nmoun: Tor any building i s zcrv unlcss
the amnun! WilS A I I O C L ~ Cpurruanl
~
lo a
qualiltcd a l l ~ c n ~ l opian
n or thc A:cnc~r

Similnrly, undcr Jcction <2(m][l)[D],thc
housing crcdit dollar amor;nt Iar any
project qudifying undc: se-tion 4z(IiJ[d]
is zcro unlcss the projcc! satis5cs lhc
requirements for aHucaticn of a housing
credit dollar m o u n t undcr ihe qualiried

ellocation plen of the Agency.
Under section ;Z(n~)(l}(B](iii).which
wasamcndcd and renumbered by I ~ C
Revcmle Reconciliation .4ct of 1090 ( t h e
"1990 Acl"). an atlocatinn plan is not
qualified unless i t contains a proc~dure
tha 1 h e Agency [or an agenl DL. or
privale contractor hired by, the Agency)
will follow in monitoring compliance
with he provisinns of scttion 42. The
Agency is to notify the Intcrnal Revenue
Service of any noncompliance of whick
thc Agcncy bccomcs awzre.
Section 42(rn!;lJ(B][iii)i s eifective on
January 1, IW?,
and applies,to all
buildings for which the lo?-income
hous~ngcredit determined under section
QZ i s , or has been. allowable at any time.
Thesc k . ! I regulations provide
guidance on section 42(m)(l ][B)[iii).
Under the mylations. an aHocetion
plan mects the requircnent or section
4?[m)(l)(B][iii] sf it i n c l u $ ~ sa m3niior;.ng
procedure that contains, in suSs!ance,
ail of :he provisions speci5ed in :he
regulations.
The spccilied provisions are minimur;,
20503.
rcquirementa a monito:ing procedurc
may contain additional pror-isiocs or
On December 17, l g g l , the In!e-a1
requirerrzits. Moreover. the Ianguage.
Revenue Service published in the
fom. azd order of the specified
Federal Regirtcr a notlce oi proposed
p r o c ~ s i o n s8s set forih i2 :hc rc;~!a:ions
r u l e m z k ~ ~(56
g FR E T C I E ] ur,5er scctlcn
need r,ot be cxactly duplicated in an
42 of t!!e Intema; Rcvenue Code of 1966
aiiocation p!en in order for tho ple3 to
\.:sth respect to thc low-income hgusing include a ~ o n i l o r i n gpioceciure as
credit.
rcquired by the regulations. As lo.., as
A number of public cornmenis were
the substance c i the provisior.~s?e;ihed
recc~vedconccmi~grhese rcguIa lions.
in the regulations is cos:aincd in !be
and a pcbiic heennz was held on hfarch alIocalior! p l ~ n
as a ;vhcr;n, the
,: f?g?. After cons~derai~on
of tie
a;locati'or! plan sa!isiies :'he mozi:o:ing
writtcn commen:s and those p r c s ~ n i e d procedcre requircd b y th. r e g c l a u o ~ ~ .
at thc hcar1r.g. the proposed rc;ulatiocs
These rc.g.~la!ionsonly aodrcss
are &opted+ 2 s revtscd, by i?:s T r ~ a s u . y c o m ~ l i a r c ernon~!oringprocedures of
decision.
Agencrcs. They do not addrcsr iorms
and 3hc: records t i ~ a tn a y be requirzd
Explanation of Pror-isions
by the In:e:r,21 Revcnue Servicc 03
Section 4 2 7rovides :'or a lox\*- t:o?e
exarr.~nal:ono: asdil.
hctlsing crcdi: that n z y be clair: - d a s
part o i the g e ~ e r a business
l
c r e l i t under Public Conmenls
secilon 38. The credit arterriacd r;nSer
r e r t i o n <1is allowable caly 10 !he
er.!ent the ov:ncr or s qualified lob\.p ~ comment
c
svgzrls!cd h a 1 u,h:rc
17coma building rcccires a hocsing
a n aIlocstion c: credi: has bcer! ~ a d 03
e
creall aliocatioil from a Slate or local
E projec: basis :crier section 41(k)(?)[c,
housing credit agency [ " A g c n c j " ] ,
ihc recordkeeping and reccrd rc!c?tion
u2less thc bui1dir.g is excnpl i r o n the
prcrvisions should 2190
o:! a
allocat~or,reqnircmen! by reason of
project basis. Tnis supgts:ion has not
sec:ion 42[h]!;1(8) Undc: sec:~on
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