On April 8, 2020, the IRS released Revenue Procedure 2020-23 which enables eligible partnerships to file amended returns for 2018 and 2019 rather than having to file an administrative adjustment request (AAR).

The reason for this guidance is to allow eligible partnerships to take advantage of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) tax relief for the year being adjusted (2018 or 2019), rather than delay the relief until the year the AAR is filed. Prior to this Revenue Procedure, if a BBA partnership had an adjustment to a previously filed return beginning in tax year 2018 or later, it was required to file an AAR. In most cases, the partners of the partnership would then reflect those adjustments in the year the AAR is filed, rather than in the year being adjusted. Without this latest guidance, partners would not have been able to take advantage of the tax benefits of the CARES Act until, most likely, 2021 when the 2020 partnership return is filed.

BBA Partnerships that have filed form 1065 and furnished all required Schedules K-1 for the taxable years beginning in 2018 or 2019, prior to April 8, 2020, may file amended partnership returns for those years prior to September 30, 2020.

This is significant to the Low-Income Housing Tax Credit Industry because the legislation states that “The amended returns may take into account tax changes brought about by the CARES Act as well as any other tax attributes to which the partnership is entitled by law.” This means that any eligible partnership receiving IRS Form(s) 8609 prior to September 30, 2020 would be able to amend a previously filed partnership return to claim credits in the 2018 tax year. The partners will then be able to receive the benefits immediately  rather than in 2021 if an AAR had to be filed.

If you have any questions regarding this information, please feel free to contact Elizabeth Harriger, CPA, Partner & Director of Affordable Housing Services at McKonly & Asbury at [email protected] or by calling (717) 972-5727.

As further changes develop, we’ll continue to keep you informed. Be sure to check back to our COVID-19 Resource Center for additional information and updates.

Due to the uncertain situation caused by COVID-19, McKonly & Asbury has decided to cancel our 2020 Spring Affordable Housing Seminar, scheduled for May 18th.

In place of our seminar, we are working to create a webinar series!

Stay tuned for information about the upcoming webinars. Thank you for your flexibility, and we look forward to connecting with you soon. Stay safe and healthy!

The dates for McKonly & Asbury’s 2020 Affordable Housing Seminars have been set!

(Updated 4.7.20) Our Spring Seminar, originally scheduled for Monday, May 18, 2020 has been cancelled due to the uncertain situation caused by COVID-19.In place of our seminar, we are working to create a webinar series! Stay tuned for more info!

Our Fall Seminar is planned for Thursday, September 24, 2020. A.J. Johnson will once again be joining us as the speaker! A.J. is President of A.J. Johnson Consulting Services, Inc., a full service real estate consulting firm specializing in due diligence and asset management issues, with a particular emphasis on properties utilizing the Low-Income Housing Tax Credit.

New this year! The Fall Seminar will be held at the Red Lion Hotel Harrisburg Hershey, conveniently located at 4751 Lindle Road in Harrisburg, PA. This new location provides easy access to both I-83 and the PA turnpike.

Stay tuned for more details!

In keeping with our Purpose Through Profits initiative, McKonly & Asbury recently sponsored a book drive to support Housing Development Corporation MidAtlantic’s (HDC), Story Time program. This reading program is designed to benefit children living at Duke Manor Apartments to build their reading skills, friendships and confidence.

McKonly & Asbury donated over 200 books to the program and several staff members took the initiative to sign up as guest readers throughout the year. These guest readers will spend an hour reading to Story Time participants at Duke Manor Apartments in the Lancaster area.

M&A’s Purpose Through Profits initiative encourages employees to utilize their strengths and resources to make giving back an integral part of who we are as a company. McKonly & Asbury is a leader in accounting and consulting for affordable housing developments in Pennsylvania. The clients that we serve provide over 7,000 units of safe, quality, affordable housing. For more information, please visit our website or contact [email protected].

Registration is now open for McKonly & Asbury’s Fall 2019 Affordable Housing Seminar! This year’s seminar will be held on Tuesday, October 22, 2019. You won’t want to miss it!

We are excited to once again welcome A.J. Johnson of A.J. Johnson Consulting as our speaker. A.J. will be presenting on "Understanding the Requirements of the IRS 8823 Guide". This course will cover all elements of the IRS 8823 Guide, including definitions and examples of noncompliance, dealing with over-income households, understanding the risk of not recertifying tenants, traps relating to the use of common area, the General Public Use Rule, and a detailed review of new IRS positions relative to rents and fees.

Additional Information:

Date: Tuesday, October 22, 2019
Time: 9:00AM – 3:30PM (Registration begins at 8:30 AM)
Location: Giant Community Center – inside the Giant Food Store at 3301 East Trindle Road, Camp Hill, PA 17011
Fee: $195 (includes breakfast and lunch)

Attendees are eligible for 5.5 "Specialized Knowledge" Continuing Professional Education Hours. The level of content is Intermediate to Advanced and a basic understanding of the LIHTC program is the only prerequisite.

Click here to register. We hope to see you there!!

McKonly & Asbury’s next Affordable Housing Seminar is planned for Tuesday, October 22, 2019.

We are excited to once again welcome back A.J. Johnson as our speaker. Join us as A.J. explores topics related to the development of affordable housing.

The seminar will be held at the Giant Community Center – inside the Giant Food Store at 3301 East Trindle Road, Camp Hill, PA 17011.

Stay tuned for additional details on topics and how to register!

Governor Tom Wolf yesterday announced awards totaling $41.6 million in low-income housing tax credits and $7.7 million in PennHOMES funding for the construction of 39 affordable multifamily housing developments in Pennsylvania. The tax credits are administered by the Pennsylvania Housing Finance Agency and were approved by its board.

"Tax credits are the best tool we have for funding the construction of affordable rental housing," said Governor Wolf. "Tax credits provide the incentive for investment, which in turn funds the construction. The end result is more affordable housing options for Pennsylvanians."

When completed, the developments receiving funding yesterday will preserve and create an additional 1,708 rental housing units for Pennsylvania residents.

We are so excited to announce that McKonly & Asbury Partner & Director of Affordable Housing Services, Elizabeth Harriger, was named last week as one of the Central Penn Business Journal’s 2019 Women of Influence! The Women of Influence Awards honor established business leaders with proven track records of community service and business accomplishments.

The outstanding women on this list influence others through their personal successes and achievements. Along with being a Partner at McKonly & Asbury, Elizabeth is Director of Affordable Housing Services, with over 20 years of extensive audit, tax, and consulting experience in the affordable housing industry. She leads the firm’s affordable housing team in tax and consulting and provides technical review and consultation for affordable housing audits. Elizabeth also provides low-income housing tax credit training to clients and other organizations. Active in the community, she is a Budget and Finance Committee member of the Helen O. Krause Animal Foundation, Inc., board member of the Cumberland County Affordable Housing Trust Fund, and volunteers with many other community organizations and her church.

McKonly & Asbury’s 2019 Spring Affordable Housing Seminar was held on June 19, 2019. The day began with an update from PHFA’s Holly Glauser, Director of Development at PHFA. Holly spoke about the 2019 LIHTC tax credit round. Holly announced that currently the 2020 LIHTC tax credit application deadlines are mid-September for the Intent to Submit and November 15, 2019 for the final application. PHFA is not anticipating holding a pre-application meeting for this round since the Qualified Allocation Plan will not change. Holly also spoke about Tax Exempt Volume Cap activity, average income, and the new compliance monitoring regulations. Finally, Holly gave a brief overview of the Affordable Housing Credit Improvement Act.

Each year, McKonly & Asbury’s Affordable Housing Team organizes two seminars with speakers that include investors, lenders, attorneys, and other industry experts, as well as members of our own team.

Registration is now open for McKonly & Asbury’s Spring Affordable Housing Seminar! This year’s seminar will be held on Wednesday, June 19, 2019. You won’t want to miss it!

Topics and speakers to include:

• News from PHFA – Holly Glauser, Director of Development at PHFA
• Legislative Update – Judy Crosby, Esq., Kutak Rock
• Nonprofit Organizations Developing LIHTC Housing: What to Look Out For – Judy Crosby, Esq., Kutak Rock
• Accounting for Construction Period/Development Costs – Josh Bantz, Senior Manager and Elizabeth Harriger, Partner & Director of Affordable Housing Services at McKonly & Asbury

Additional Information:

Date: Wednesday, June 19, 2019
Time: 10:00AM – 4:00PM (Registration begins at 9:30 AM)
Location: Giant Community Center – inside the Giant Food Store at 3301 East Trindle Road, Camp Hill, PA 17011
Fee: $40 (includes lunch)

Attendees are eligible for 5.5 Continuing Professional Education Hours (Specialized Knowledge). The level of the content is Intermediate to Advanced.

Click here to register. We hope to see you there!!