Notice 2011-60

North Dakota Low-Income
Housing Credit Disaster Relief
Notice 2011–60
The Internal Revenue Service is suspending certain requirements under § 42
of the Internal Revenue Code for low-income housing credit projects in the United
States to provide emergency housing relief needed as a result of the devastation
caused by flooding in North Dakota beginning on February 14, 2011. This relief is
being granted pursuant to the Service’s authority under § 42(n) and § 1.42–13(a) of
the Income Tax Regulations.
BACKGROUND
On May 10, 2011, the President declared a major disaster for the State of
North Dakota. This declaration was made
under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act,
42 U.S.C. 5121 et seq. Subsequently, the
Federal Emergency Management Agency
(FEMA) designated jurisdictions for
Individual Assistance. The State of North
Dakota has requested that the Service
allow owners of low-income housing
credit projects to provide temporary
housing in vacant units to individuals
who resided in jurisdictions designated for
Individual Assistance in North Dakota and
who have been displaced because their
residences were destroyed or damaged
as a result of the devastation caused by
the flooding. Based upon this request
and because of the widespread damage
to housing caused by the flooding,
the Service has determined that the
North Dakota Housing Finance Agency
(Agency) may provide approval to project
owners to provide temporary emergency
housing for displaced individuals in
accordance with this notice.
I. SUSPENSION OF INCOME
LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend certain
income limitation requirements under § 42
for certain qualified low-income projects.
The suspension will apply to low-income
housing projects approved by the Agency,
in which vacant units are rented to displaced individuals. The Agency will de-

August 1, 2011

termine the appropriate period of temporary housing for each project, not to extend
beyond July 31, 2012 (temporary housing
period).
II. STATUS OF UNITS
A. Units in the first year of the credit
period
A displaced individual temporarily
occupying a unit during the first year of
the credit period under § 42(f)(1) will be
deemed a qualified low-income tenant
for purposes of determining the project’s
qualified basis under § 42(c)(1), and for
meeting the project’s 20–50 test or 40–60
test as elected by the project owner under
§ 42(g)(1). After the end of the temporary
housing period established by the Agency
(not to extend beyond July 31, 2012), a
displaced individual will no longer be
deemed a qualified low-income tenant.
B. Vacant units after the first year of the
credit period
During the temporary housing period
established by the Agency, the status of a
vacant unit (that is, market-rate or low-income for purposes of § 42 or never previously occupied) after the first year of the
credit period that becomes temporarily occupied by a displaced individual remains
the same as the unit’s status before the
displaced individual moves in. Displaced
individuals temporarily occupying vacant
units will not be treated as low-income
tenants under § 42(i)(3)(A)(ii). However,
even if it houses a displaced individual, a
low-income or market rate unit that was
vacant before the effective date of this notice will continue to be treated as a vacant low-income or market rate unit. Similarly, a unit that was never previously occupied before the effective date of this notice will continue to be treated as a unit
that has never been previously occupied
even if it houses a displaced individual.
Thus, the fact that a vacant unit becomes
occupied by a displaced individual will
not affect the building’s applicable fraction under § 42(c)(1)(B) for purposes of
determining the building’s qualified basis,
nor will it affect the 20–50 test or 40–60
test of § 42(g)(1). If the income of occupants in low-income units exceeds 140
percent of the applicable income limitation, the temporary occupancy of a unit by

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a displaced individual will not cause application of the available unit rule under
§ 42(g)(2)(D)(ii). In addition, the project
owner is not required during the temporary
housing period to make attempts to rent
to low-income individuals the low-income
units that house displaced individuals.
III. SUSPENSION OF
NON-TRANSIENT REQUIREMENTS
The non-transient use requirement of
§ 42(i)(3)(B)(i) shall not apply to any
unit providing temporary housing to a
displaced individual during the temporary
housing period determined by the Agency
in accordance with section I of this notice.
IV. OTHER REQUIREMENTS
All other rules and requirements of
§ 42 will continue to apply during the
temporary housing period established
by the Agency. After the end of the
temporary housing period, the applicable income limitations contained in
§ 42(g)(1), the available unit rule under § 42(g)(2)(D)(ii), the nontransient
requirement of § 42(i)(3)(B)(i), and the
requirement to make reasonable attempts
to rent vacant units to low-income individuals shall resume. If a project owner offers
to rent a unit to a displaced individual after
the end of the temporary housing period,
the displaced individual must be certified
under the requirements of § 42(i)(3)(A)(ii)
and § 1.42–5(b) and (c) to be a qualified
low-income tenant. To qualify for the relief in this notice, the project owner must
additionally meet all of the following requirements:
(1) Major Disaster Area
The displaced individual must have
resided in a North Dakota jurisdiction
designated for Individual Assistance by
FEMA as a result of flooding in North
Dakota beginning on February 14, 2011.
(2) Approval of the North Dakota Housing
Finance Agency
The project owner must obtain approval
from the Agency for the relief described
in this notice. The Agency will determine
the appropriate period of temporary housing for each project, not to extend beyond
July 31, 2012.

2011–31 I.R.B.

(3) Certifications and Recordkeeping
To comply with the requirements of
§ 1.42–5, project owners are required to
maintain and certify certain information
concerning each displaced individual temporarily housed in the project, specifically
the following: name, address of damaged
residence, social security number, and a
statement signed under penalties of perjury
by the displaced individual that, because
of damage to the individual’s residence
in a North Dakota jurisdiction designated
for Individual Assistance by FEMA as
a result of the flooding beginning on
February 14, 2011, the individual requires
temporary housing. The owner must
notify the Agency that vacant units are
available for rent to displaced individuals.
The owner must also certify the date the
displaced individual began temporary occupancy and the date the project will discontinue providing temporary housing as
established by the Agency. The certifications and recordkeeping for displaced individuals must be maintained as part of
the annual compliance monitoring process
with the Agency.
(4) Rent Restrictions
Rents for the low-income units that
house displaced individuals must not exceed the existing rent-restricted rates for
the low-income units established under
§ 42(g)(2).
(5) Protection of Existing Tenants
Existing tenants in occupied low-income units cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.
EFFECTIVE DATE
This notice is effective May 10, 2011
(the date of the President’s major disaster
declaration as a result of the flooding in
North Dakota beginning on February 14,
2011).
PAPERWORK REDUCTION ACT
The collection of information contained
in this notice has been reviewed and approved by the Office of Management and
Budget in accordance with the Paperwork

2011–31 I.R.B.

Reduction Act (44 U.S.C. 3507) under
control number 1545–2213.
An Agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this notice is in the section titled “OTHER REQUIREMENTS” under “(3) Certifications
and Recordkeeping.” This information is
required to enable the Service to verify
whether individuals are displaced as a result of the devastation caused by flooding
in North Dakota beginning on February 14,
2011, and thus warrant temporary housing
in vacant low-income housing units. The
collection of information is required to obtain a benefit. The likely respondents are
individuals and businesses.
The estimated total annual recordkeeping burden is 125 hours.
The estimated annual burden per
recordkeeper is approximately 15 minutes.
The estimated number of recordkeepers is
500.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this notice is
David Selig of the Office of the Associate
Chief Counsel (Passthroughs and Special
Industries).
For further information
regarding this notice, contact Mr. Selig at
(202) 622–3040 (not a toll free call).

Continuing Education
Providers
Notice 2011–61
Purpose
This notice invites public comments
regarding the process for individuals
and entities to be approved by the Internal Revenue Service as continuing
education providers. On June 3, 2011,
the Treasury Department and the IRS
published final regulations (T.D. 9527,

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2011–27 I.R.B. 1 [76 FR 32286]) under
31 CFR Part 10 (Circular 230) that require
registered tax return preparers to complete
continuing education offered by qualified
continuing education providers. Enrolled
agents and enrolled retirement plan agents
also are required to complete continuing
education under Circular 230. Section
10.9(a)(1) of Circular 230 provides that
continuing education providers must be:
(i) An accredited educational institution;
(ii) Recognized for continuing education purposes by the licensing body of any
State, territory, or possession of the United
States, including a Commonwealth, or the
District of Columbia;
(iii) Recognized and approved by a
qualifying organization as a provider of
continuing education on subject matters
within section 10.6(f) of Circular 230; or
(iv) Recognized by the Internal Revenue Service as a professional organization, society, or business whose programs
include offering continuing professional
education opportunities in subject matters
within section 10.6(f) of Circular 230.
Section 10.6(f) provides criteria that
continuing education programs must meet
to qualify as continuing education credit
for enrolled agents, enrolled retirement
plan agents, and registered tax return
preparers, including that a qualifying continuing education course generally must
enhance professional knowledge in Federal taxation or Federal tax related matters,
must be consistent with the Code and effective tax administration, and must be
conducted by a qualified instructor. See
Circular 230 § 10.6(f)(1)-(2).
The IRS is developing procedures and
standards to supplement sections 10.6 and
10.9 for individuals and entities seeking
to be recognized and approved as continuing education providers under section
10.9(a)(1)(iv). The IRS is also developing the standards and procedures for organizations (accrediting organizations) to
become qualified to accredit other individuals and entities as continuing education providers under section 10.9(a)(1)(iii)
after those individuals or entities follow
applicable procedures prescribed by the
IRS. The IRS seeks the input of education
providers, tax return preparers, the associated industry and consumer groups, and
taxpayers on the procedures and standards
that will govern the approval process for

August 1, 2011