Section 42(h)(6)(E)(i)(II) of the Internal Revenue Code created a provision that housing credit agencies respond to the request for presentation of a qualified contract for HTC projects with expiring compliance periods. The request for presentation of a qualified contract is a request that the housing credit agency find a buyer (who will continue to operate the property as a qualified low-income property) to purchase the property for a qualified contract price pursuant to IRS regulations.
If the housing credit agency is unable to find a buyer within one year, the extended use period is terminated, subject to a three-year period following its termination. During this three-year period following termination, existing low income tenants cannot be evicted or tenancy terminated for other than good cause and rents cannot exceed the allowable HTC rent limits.
