OMB No. 1545-1204
                                               Low-Income Housing Credit Agencies 
(Rev. December 2019)
Form  8823                          Report of Noncompliance or Building Disposition                                                    Check here if this is an 
Department of the Treasury          ▶ File a separate Form 8823 for each building that is disposed of or goes out of compliance.       amended return  ▶
Internal Revenue Service                           ▶ Go to www.irs.gov/Form8823 for the latest information.
  1   Building name (if any). Check if line 1 differs from Form 8609 ▶                                               IRS Use Only

      Street address 

      City or town, state, and ZIP code 

  2   Building identification number (BIN) 
  3   Owner’s name. Check if line 3 differs from Form 8609  .         .  ▶

      Street address 

      City or town, state, and ZIP code 

  4   Owner’s taxpayer identification number 
                                                             EIN         SSN 
  5   Total credit allocated to this BIN       . .    . .  .    .   . .  . .      .    .  . . .       .  . .  .      . . . .     .   ▶ $ 
  6   If this building is part of a multiple building project, enter the number of buildings in the project  .       . . . .     . . . .  ▶
  7 a Total number of residential units in this building  .     .   . .  . .      .    .  . . .       .  . .  .      . . . .     . . . .  ▶
  b   Total number of low-income units in this building         .   . .  . .      .    .  . . .       .  . .  .      . . . .     . . . .  ▶
  c   Total number of residential units in this building determined to have noncompliance issues (see instructions)  .           . . . .  ▶
  d   Total number of units reviewed by agency (see instructions)        . .      .    .  . . .       .  . .  .      . . . .     . . . .  ▶
  8   Date building ceased to comply with the low-income housing credit provisions (see instructions) (MMDDYYYY)  .                .
  9   Date noncompliance corrected (if applicable) (see instructions) (MMDDYYYY)  .           .       .  . .  .      . . . .     . .
10    Check this box if you are filing only to show correction of a previously reported noncompliance problem  .           . ▶
                                                                                                                                      Out of    Noncompliance 
11    Check the box(es) that applies:                                                                                                compliance corrected 
  a   Household income above income limit upon initial occupancy .         .      .    .  . . .       .  . .  .      . . . .     . .
  b   Owner failed to correctly complete or document tenant’s annual income recertification              . .  .      . . . .     . .
  c   Violation(s) of the UPCS or local inspection standards including casualty losses (see instructions) (attach explanation) 
  d   Owner failed to provide annual certifications or provided incomplete or inaccurate certifications .            . . . .     . .
  e   Changes in Eligible Basis or the Applicable Percentage (see instructions)           . . .       .  . .  .      . . . .     . .
  f   Project failed to meet minimum set-aside requirement (20/50, 40/60, average income test) (see instructions)  .             . .
  g   Gross rent(s) exceeds limits .         . . .    . .  .    .   . .  . .      .    .  . . .       .  . .  .      . . . .     . .
  h   Project not available to the general public (see instructions) (attach explanation)     .       .  . .  .      . . . .     . .
  i   Violation(s) of the Available Unit Rule under section 42(g)(2)(D)(ii)  .    .    .  . . .       .  . .  .      . . . .     . .
  j   Violation(s) of the Vacant Unit Rule under Reg. 1.42-5(c)(1)(ix)  .  .      .    .  . . .       .  . .  .      . . . .     . .
  k   Owner failed to execute and record extended-use agreement within time prescribed by section 42(h)(6)(J) .            .     . .
  l   Low-income units occupied by nonqualified full-time students .       .      .    .  . . .       .  . .  .      . . . .     . .
  m   Owner did not properly calculate utility allowance        .   . .  . .      .    .  . . .       .  . .  .      . . . .     . .
  n   Owner has failed to respond to agency requests for monitoring reviews  .            . . .       .  . .  .      . . . .     . .
  o   Low-income units used on a transient basis (attach explanation)  .          .    .  . . .       .  . .  .      . . . .     . .
  p   Building is no longer in compliance nor participating in the section 42 program. (Attach explanation.)           . . .     . .
  q   Other noncompliance issues (attach explanation)           .   . .  . .      .    .  . . .       .  . .  .      . . . .     . .
12    Additional information for any line above. Attach explanation and check box           . .       .  . .  .      . . . . ▶
13 a  Building disposition by         Sale            Foreclosure        Destruction          Other (attach explanation) 
  b   Date of disposition (MMDDYYYY)  .          .    . .  .    .   . .  . .      .    .  . . .       .  . .  .      . . . .     . .
  c   New owner’s name                                                                 d  New owner’s taxpayer identification number
                                                                                                                                          EIN   SSN 
      Street address                                                              14       Name of contact person

      City or town, state, and ZIP code                                           15       Telephone number of contact person
                                                                                                                                     Ext. 
Under penalties of perjury, I declare that I have examined this report, including accompanying statements and schedules, and, to the best of my knowledge and belief, it is 
true, correct, and complete. 
▲                                                                   ▲                                                                ▲
  Signature of authorizing official                                   Print name and title                                             Date (MMDDYYYY)
For Paperwork Reduction Act Notice, see instructions.                                      Cat. No. 12308D                           Form 8823 (Rev. 12-2019) 

Form 8823 (Rev. 12-2019)                                                                                                Page  2 

General Instructions                                           a common area, then the number of units identified on 
                                                               line 7c should be -0-.
Section references are to the Internal Revenue Code 
unless otherwise noted.                                        Line 8. Enter the date that the building ceased to comply 
                                                               with the low-income housing credit provisions. If there are 
Future developments. For the latest information about          multiple noncompliance issues, enter the date for the 
developments related to Form 8823 and its instructions,        earliest discovered issue. Do not complete line 8 for a 
such as legislation enacted after they were published, go      building disposition. Instead, skip lines 9 through 12, and 
to www.irs.gov/Form8823.                                       complete line 13. 
Purpose of Form                                                Line 9. Enter the date that the noncompliance issue was 
Housing credit agencies use Form 8823 as part of their         corrected. If there are multiple issues, enter the date the 
compliance monitoring responsibilities under section           last correction was made. 
42(m)(1)(B)(iii) to notify the IRS of any building disposition Line 10. Do not check this box unless the sole reason for 
or noncompliance with the low-income housing tax credit        filing the form is to indicate that previously reported 
provisions.                                                    noncompliance problems have been corrected. 
The housing credit agency should also give a copy of           Lines 11a through 11p. Check only the “Out of 
Form 8823 to the owner(s).                                     compliance” box if the issue causing the noncompliance 
Who Must File                                                  remains uncorrected at the end of the correction period. 
                                                               Check both the “Out of compliance” and “Noncompliance 
Any authorized housing credit agency that becomes              corrected” boxes if the noncompliance was corrected 
aware that a low-income housing building was disposed          within the correction period. Check only the 
of or is not in compliance with the provisions of section 42   “Noncompliance corrected” box if the noncompliance was 
must file Form 8823.                                           previously reported to the IRS on a separate Form 8823. 
When To File                                                   Line 11c. Housing credit agencies must use either (a) the 
File Form 8823 no later than 45 days after (a) the building    local health, safety, and building codes (or other 
was disposed of, or (b) the end of the time allowed the        habitability standards); or (b) the Uniform Physical 
building owner to correct the condition(s) that caused         Condition Standards (UPCS) (24 C.F.R. section 5.703) to 
noncompliance. For details, see Regulations section            inspect the project, but not in combination. The UPCS 
1.42-5(e).                                                     does not supersede or preempt local codes. Thus, if a 
                                                               housing creditagency  using the UPCS becomes aware of 
Where To File                                                  any violation of local codes, the agency must report the 
File Form 8823 with the:                                       violation. Attach a statement describing either (a) the 
Department of the Treasury                                     deficiency and its severity under the UPCS (that is, minor 
Internal Revenue Service Center                                (level 1), major (level 2), and severe (level 3)); or (b) the 
Philadelphia, PA 19255-0549                                    health, safety, or building violation under the local codes. 
                                                               The Department of Housing and Urban Development’s 
Specific Instructions                                          Real Estate Assessment Center has developed a 
                                                               comprehensive description of the types and severities of 
Amended return. If you are filing an amended return to 
                                                               deficiencies entitled “Revised Dictionary of Deficiency 
correct previously reported information, check thebox    at 
                                                               Definitions” found at www.hud.gov. Under Regulations 
the top of page 1. 
                                                               section 1.42-5(e)(3), report all deficiencies to the IRS 
Line 2. Enter the building identification number (BIN)         whether or not the noncompliance or failure to certify is 
assigned to the building by the housing credit agency as       corrected at the time of inspection. Physical damage to 
shown on Form 8609.                                            low-income housing credit projects caused by casualty 
Lines 3, 4, 13c, and 13d. If there is more than one owner      events and that render residential rental units or buildings, 
(other than as a member of a pass-through entity), attach a    or common areas associated with the property, 
schedule listing the owners, their addresses, and their        unsuitable for occupancy is reported as noncompliance 
taxpayer identification numbers.Indicate whether each          with the UPCS or local standards. While no credit is 
owner’s taxpayer identification number is an employer          allowable during the time the property is being restored 
identification number (EIN) or a social security number (SSN). by reconstruction or replacement, section 42(j)(4)(E) 
Both the EIN and the SSN have nine digits. An EIN has          provides relief from the credit recapture provisions; that 
two digits, a hyphen, and seven digits. An SSN has three       is, the recapture provisions are not applied when there is 
digits, a hyphen, two digits, a hyphen, and four digits, and   a reduction in qualified basis by reason of a casualty loss 
is issued only to individuals.                                 to the extent such loss is restored by reconstruction or 
                                                               replacement within a reasonable period.
Line 7d. “Reviewed by agency” includes physical 
inspection of the property, tenant file inspection, or         Line 11d. Report the failure to provide annual  
review of documentation submitted by the owner.                certifications or the provision of certifications that are  
Regulations section 1.42-5(c)(2)(iii)(B) provides that a       known to be incomplete or inaccurate as required by 
housing credit agency must conduct on-site inspections         Regulations section 1.42-5(c). As examples, report a  
and low-income certification review of not fewer than the      failure by the owner to include a statement summarizing 
minimum number of low-income units set forth in the            violations (or copies of the violation reports) of local 
table found in Regulations section 1.42-5(c)(2)(iii).          health, safety, or building codes; report an owner who 
                                                               provided inaccurate or incomplete statements concerning 
Note: If the only noncompliance issue identified by the        corrections of these violations.   
physical inspection of the property on line 11c relates to 

Form 8823 (Rev. 12-2019)                                                                                               Page  3 

Line 11e. For buildings placed inservice after July 30,        credits to the project. Building owners must agree to a 
2008, report any federal grant used to finance any costs       long-term commitment beginning on the first day of the 
that were included in the eligible basis of any building.      15-year compliance period and ending on the later of (1) 
Report changes in common areas when theybecome                 the date specified by the state agency in the agreement, 
commercial, when fees are charged for facilities, etc. For     or (2) the date that is 15 years after the close of the 
buildings placed in service after July 30, 2008, reportany     15-year compliance period. 
obligation the interest on which is exempt from tax under      The extended use agreement must (1) specify that the 
section 103 that is or was used (directly or indirectly) with  applicable fraction for the building for each year in the 
respect to the building or its operationduring the             extended use period will not be less than the applicable 
compliance period and that was not takeninto   account         fraction specified in the extended use agreement and 
when determining eligible basis at the close of the first      prohibit the eviction or the termination of tenancy (other 
year of the credit period.                                     than for good cause) of an existing tenant of any low-
Line 11f. Failure to satisfy the minimum set-aside             income unit or any increase in the gross rent with respect 
requirement for the first year of the credit period results in to such unit not otherwise permitted under section 42, (2) 
the permanent loss of the entire credit.                       allow individuals (whether prospective, present, or former 
Failure to maintain the minimum set-aside requirement          occupants) who meet the income limitations applicable to 
for any year after the first year of the credit period results the building under section 42(g) the right to enforce in state 
in recapture of previously claimed credit and no allowable     court the requirements and prohibitions under section 42
credit for that tax year. No low-income housing credit is      (h)(6)(B)(i) throughout the extended use period, (3) prohibit 
allowable until the minimum set-aside is restored for a        the disposition to any person of any portion of the building 
subsequent tax year.                                           unless all of the building is disposed of to that person, (4) 
                                                               prohibit the refusal to lease to section 8 voucher holders 
In 2018, Congress revised section 42(g) to add a third         because of the status of the prospective tenant as such a 
minimum set-aside: the average income test. See section        holder, and (5) provide that the agreement is binding on all 
42(g)(1)(C) for more information about the requirements of     successors of the taxpayer. The extended use agreement 
the average income test.                                       must be recorded as a restrictive covenant with respect to 
Line 11h. All units in the building must be for use by the     the property under state law.
general public (as defined in Regulations section 1.42-9       Noncompliance should be reported if an extended use 
and further clarified in section 42(g)(9)),including the       agreement is not executed and recorded as a restrictive 
requirement that no finding of discrimination under the 
                                                               covenant with respect to the property under state law or 
Fair Housing Act occurred for the building. Low-income         the owner failed to correct the noncompliance within the 
housing credit properties are subject to Title VIII of the     1-year correction period provided by section 42(h)(6)(J). 
Civil Rights Act of 1968, also known as the Fair Housing       The 1-year correction period begins when the agency 
Act. The Act prohibits discrimination in the sale, rental,     notifies the owner in writing that an extended use 
and financing of dwellings based on race, color, religion,     agreement is not recorded as a restrictive covenant with 
sex, national origin, familial status, and disability. See 42  respect to the property under state law. A copy of the 
U.S.C.A. sections 3601 through 3619.                           notification letter should be included as an attachment to 
It also mandates specific design and construction              Form 8823 when filed with the IRS.
requirements for multifamily housing built for first           Line 11q. Check this box for noncompliance events other 
occupancy after March 13, 1991, in order to provide            than those listed on lines 11a through 11p. Attach an 
accessible housing for individuals with disabilities. The      explanation. For projects with allocations from the 
failure of low-income housing credit properties to comply      nonprofit set-aside under section 42(h)(5), report the lack 
with the requirements of the Fair Housing Act will result in   of material participation by a non-profit organization (that 
the loss of the low-income housing credit.                     is, regular, continuous, and substantialinvolvement)    that 
Individuals with questions about the accessibility             the housing credit agency learns of during the compliance 
requirements can obtain the Fair Housing Act Design            period. 
Manual through www.huduser.org.
Line 11i. The owner must rent to low-income tenants all        Paperwork Reduction Act Notice. We ask for the 
comparable units that are available or that subsequently       information on this form to carry out the Internal Revenue 
become available in the same building inorder  to              laws of the United States. You are requiredto give us the 
continue treating the over-income unit(s) as a low-income      information. We need it to ensure that you are complying 
unit. All units affected by a violation of the available unit  with these laws and to allow us to figure and collect the 
rule may not be included in qualified basis. When the          right amount of tax. 
percentage of low-income units in a building again equals      You are not required to provide the information 
the percentage of low-incomeunits on which the credit is       requested on a form that is subject to the Paperwork 
based, the full availability of the credit is restored. Thus,  Reduction Act unless the form displays a valid OMB 
only check the “Noncompliance corrected” box when the          control number. Books or records relating to a form or its 
percentage of low-income units in the building equals the      instructions must be retained as long as their contents 
percentage on which the credit is based.                       may become material in the administration of any Internal 
Line 11k. Section 42(h)(6) requires owners of low-income       Revenue law. Generally, tax returns and return 
housing credit properties to enter into an extended use        information are confidential, as required by section 6103. 
agreement with the state agency that allocated the 

Form 8823 (Rev. 12-2019)                                                                                    Page  4 

The time needed to complete and file this form will vary  If you have comments concerning the accuracy of 
depending on individual circumstances. The estimated      these time estimates or suggestions for making this form 
average time is:                                          simpler, we would be happy to hear from you. You can 
Recordkeeping       . . . . . . . . .  11 hr., 43 min.    send your comments to www.irs.gov/FormComments. Or 
                                                          you can write to the Internal Revenue Service, Tax Forms 
Learning about the law                                    and Publications Division, 1111 Constitution Ave. NW, 
or the form . . . . . . . . . . . . 1 hr., 35 min.        IR-6526, Washington, DC 20224. Do not send the form to 
Preparing and sending                                     this address. Instead, see Where To File, earlier.
the form to the IRS      . . . . . . . . . 1 hr., 51 min.