|(a) If, during the Corrective Action Period, an Owner
supplies evidence of continual compliance, the issue of noncompliance
will be dropped, and no further action will be taken (e.g., for HTC
properties, IRS Form 8823 will not be filed with the IRS).
(b) If, following the submission of corrective action
documentation, Compliance staff continues to find the Owner in noncompliance,
the Owner may request or initiate review of the matter using the following
options, where applicable:
(1) If the issue is related to the inclusion or exclusion
of tenant income, assets, or appropriate household size, the National
Center for Housing Management (NCHM) can be contacted. In order to
obtain guidance from NCHM, the requestor must have an active Certified
Occupancy Specialist designation. If no representative of the owner
has this designation, Department staff may make the request on the
(2) If the compliance matter is related to the Housing
Tax Credit program, Owners may contact the IRS Program Analyst for
guidance or request that Department staff contact the IRS for general
guidance without identifying the taxpayer. The issue will be handled
in accordance with the guidance received from the IRS.
(3) If the compliance matter is related to the HOME,
NHTF or NSP program, Owners may contact the U.S. Department of Housing
and Urban Development Texas Field Office for guidance. The issue will
be handled in accordance with guidance received from a HUD official
with oversight responsibility, provided it is clear and can be corroborated
(e.g., such guidance is provided in writing).
(4) Owners may request Alternative Dispute Resolution
(ADR). An Owner may send a proposal to the Department's Dispute Resolution
Coordinator to initiate ADR pursuant to §1.17 of this title (relating
to Alternative Dispute Resolution). Note that even if the Department
and Owner are engaged in ADR, the Department must meet Treasury Regulation
§1.42-5 and file IRS Form 8823 within 45 days after the end of
the Corrective Action Period. Therefore, it is possible that the Owner
and Department may still be engaged in ADR when an IRS Form 8823 is
filed. Should this happen, the form, including all Owner-supplied
documentation, will be sent to the IRS with an explanation that the
Owner disagrees with the Department's assessment and is pursuing ADR.
Although the violation will be reported to the IRS within the required
timeframes, it will not be considered part of an applicant's compliance
history nor subject to administrative penalties pending the outcome
of the ADR process.