In accordance with IRS Revenue Procedure 2007-54, the Indiana Housing and Community Development Authority (IHCDA) and the Kentucky Housing Corporation (KHC) have permitted owners of Section 42 LIHTC properties to provide temporary emergency housing to individuals affected by the recent floods and tornadoes. IRS Rev. Proc. 2007-54 provides a procedure for owners to rent on a temporary basis vacant low-income units to certain displaced low-income individuals that reside in major disaster areas. Owners are permitted to house displaced low-income individuals no longer than four months beyond the date of the President’s major disaster declaration.
Each state has provided specific guidance to obtain approval to house such individuals.