Notice 2011-87

the following conditions are met: (1) the
application is filed with the Service by
the last day of the submission period for
the plan’s current remedial amendment
cycle, and (2) the plan is first in existence no earlier than January 1 of the tenth
calendar year immediately preceding the
year in which the submission period for
the plan’s current remedial amendment
cycle begins. For example, for purposes
of § 7528(b)(2), the Service will treat an
application for a determination letter for a
Cycle A plan as filed by the last day of a
remedial amendment period with respect
to the plan beginning within the first five
plan years if the application is filed with
the Service by January 31, 2012 (i.e., the
last day of the submission period for the
plan’s current remedial amendment cycle)
and the plan is first in existence no earlier
than January 1, 2001 (i.e., January 1 of the
tenth calendar year immediately preceding
2011, the year in which the submission
period for the plan’s current remedial
amendment cycle begins). An application
for a determination letter for a Cycle B
plan will be treated as filed by the last
day of a remedial amendment period with
respect to the plan beginning within the
first five plan years if the application is
filed with the Service by January 31, 2013,
and the plan is first in existence no earlier
than January 1, 2002.
There may be certain situations in
which an application that is filed by the
last day of a remedial amendment period
with respect to the plan beginning within
the first five plan years would nevertheless not be treated as such under the rule
described in the preceding paragraph (i.e.,
where a remedial amendment period beginning within the first five plan years
ends on the last day of a submission period
that begins more than ten years after the
year in which the plan is first in existence).
In such cases, where the other requirements for exemption from user fees are
also met, the applicant should not include
payment of a user fee with the application
but should explain in a cover letter how
the application meets the requirements for
exemption. If the Service determines that
the application is not exempt, the applicant
will be asked to submit the required user
fee.
The preceding rules apply to all
applications for determination letters
that are filed with the Service after

2011–45 I.R.B.

January 31, 2011, other than applications
filed by April 30, 2012 for EGTRRA
determination letters for defined benefit
plans that are eligible for the 6-year
EGTRRA remedial amendment cycle
ending on April 30, 2012. Notice 2003–49
explains how to determine eligibility for
exemption from the user fee requirement
for a determination letter application
filed within a plan’s EGTRRA remedial
amendment period.
Notice 2003–49
applies to applications for determination
letters for defined benefit plans that
are eligible for the 6-year EGTRRA
remedial amendment cycle ending on
April 30, 2012, regardless of whether
such an application is filed on Form
5307, Application for Determination
for Adopters of Master or Prototype
or Volume Submitter Plans, or Form
5300, Application for Determination for
Employee Benefit Plan.
IV. Effect on Other Documents
Notice 2002–1 is amplified.
V. Effective Date
This notice is effective with respect to
applications for determination letters on
the qualified status of employee plans that
are filed with the Service after January 31,
2011.
DRAFTING INFORMATION
The principal drafter of this notice
is James Flannery of the Employee
Plans, Tax Exempt and Government
Entities Division. For further information
regarding this notice, please contact the
Employee Plans’ taxpayer assistance
telephone service at 1–877–829–5500
(a toll-free number) or Mr. Flannery at
RetirementPlanQuestions@irs.gov.

State of New York Low-Income
Housing Credit Disaster Relief
Notice 2011–87
The Internal Revenue Service is suspending certain requirements under § 42
of the Internal Revenue Code for low-income housing credit projects to provide
emergency housing relief needed as a result of the devastation in the State of New

699

York caused by either Hurricane Irene
during the period of August 26, 2011 to
September 5, 2011, or the remnants of
Tropical Storm Lee during the period of
September 7, 2011 to September 11, 2011.
This relief is being granted pursuant to
the Service’s authority under § 42(n)
and § 1.42–13(a) of the Income Tax
Regulations.
BACKGROUND
On
August
31,
2011,
and
September 13, 2011, the President
declared major disasters for the State of
New York. The declarations were made
under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act,
42 U.S.C. 5121 et seq. Subsequently,
the Federal Emergency Management
Agency (FEMA) designated jurisdictions
for Individual Assistance. The State of
New York has requested that the Service
allow owners of low-income housing
credit projects to provide temporary
housing in vacant units to individuals
who resided in jurisdictions designated
for Individual Assistance in the State of
New York and who have been displaced
because their residences were destroyed
or damaged as a result of the devastation
caused by Hurricane Irene or the remnants
of Tropical Storm Lee. Based upon this
request and because of the widespread
damage to housing caused by Hurricane
Irene and the remnants of Tropical
Storm Lee, the Service has determined
that the New York State Homes and
Community Renewal Agency (Agency)
may provide approval to project owners to
provide temporary emergency housing for
displaced individuals in accordance with
this notice.
I. SUSPENSION OF INCOME
LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend certain
income limitation requirements under § 42
for certain qualified low-income housing
projects. The suspension will apply to
low-income housing projects approved
by the Agency, in which vacant units
are rented to displaced individuals. The
Agency will determine the appropriate period of temporary housing for each project,
not to extend beyond October 31, 2012
(temporary housing period).

November 7, 2011

II. STATUS OF UNITS
A. Units in the first year of the credit
period
A displaced individual temporarily
occupying a unit during the first year of
the credit period under § 42(f)(1) will be
deemed a qualified low-income tenant
for purposes of determining the project’s
qualified basis under § 42(c)(1), and for
meeting the project’s 20–50 test or 40–60
test as elected by the project owner under
§ 42(g)(1). After the end of the temporary
housing period established by the Agency
(not to extend beyond October 31, 2012),
a displaced individual will no longer be
deemed a qualified low-income tenant.
B. Vacant units after the first year of the
credit period
During the temporary housing period
established by the Agency, the status of a
vacant unit (that is, market-rate or low-income for purposes of § 42 or never previously occupied) after the first year of the
credit period that becomes temporarily occupied by a displaced individual remains
the same as the unit’s status before the
displaced individual moves in. Displaced
individuals temporarily occupying vacant
units will not be treated as low-income
tenants under § 42(i)(3)(A)(ii). However,
even if it houses a displaced individual, a
low-income or market rate unit that was
vacant before the effective date of this notice will continue to be treated as a vacant low-income or market rate unit. Similarly, a unit that was never previously occupied before the effective date of this notice will continue to be treated as a unit
that has never been previously occupied
even if it houses a displaced individual.
Thus, the fact that a vacant unit becomes
occupied by a displaced individual will
not affect the building’s applicable fraction under § 42(c)(1)(B) for purposes of
determining the building’s qualified basis,
nor will it affect the 20–50 test or 40–60
test of § 42(g)(1). If the income of occupants in low-income units exceeds 140
percent of the applicable income limitation, the temporary occupancy of a unit by
a displaced individual will not cause application of the available unit rule under
§ 42(g)(2)(D)(ii). In addition, the project
owner is not required during the temporary

November 7, 2011

housing period to make attempts to rent
to low-income individuals the low-income
units that house displaced individuals.
III. SUSPENSION OF
NON-TRANSIENT REQUIREMENTS
The non-transient use requirement of
§ 42(i)(3)(B)(i) shall not apply to any
unit providing temporary housing to a
displaced individual during the temporary
housing period determined by the Agency
in accordance with section I of this notice.
IV. OTHER REQUIREMENTS
All other rules and requirements of
§ 42 will continue to apply during the
temporary housing period established
by the Agency. After the end of the
temporary housing period, the applicable income limitations contained in
§ 42(g)(1), the available unit rule under § 42(g)(2)(D)(ii), the nontransient
requirement of § 42(i)(3)(B)(i), and the
requirement to make reasonable attempts
to rent vacant units to low-income individuals shall resume. If a project owner offers
to rent a unit to a displaced individual after
the end of the temporary housing period,
the displaced individual must be certified
under the requirements of § 42(i)(3)(A)(ii)
and § 1.42–5(b) and (c) to be a qualified
low-income tenant. To qualify for the relief in this notice, the project owner must
additionally meet all of the following requirements:
(1) Major Disaster Area
In the case of an individual displaced by
the devastation caused by Hurricane Irene,
the displaced individual must have resided
in a New York jurisdiction designated for
Individual Assistance by FEMA as a result
of the devastation in the State of New York
caused by Hurricane Irene during the period of August 26, 2011 to September 5,
2011.
In the case of an individual displaced by
the devastation caused by the remnants of
Tropical Storm Lee, the displaced individual must have resided in a New York jurisdiction designated for Individual Assistance by FEMA as a result of the devastation in the State of New York caused by
the remnants of Tropical Storm Lee during the period of September 7, 2011 to
September 11, 2011.
(2) Approval of the Agency

700

The project owner must obtain approval
from the Agency for the relief described
in this notice. The Agency will determine
the appropriate period of temporary housing for each project, not to extend beyond
October 31, 2012.
(3) Certifications and Recordkeeping
To comply with the requirements of
§ 1.42–5, project owners are required to
maintain and certify certain information
concerning each displaced individual temporarily housed in the project, specifically
the following: name, address of damaged
residence, social security number, and a
statement signed under penalties of perjury
by the displaced individual that, because
of damage to the individual’s residence
in a New York jurisdiction designated for
Individual Assistance by FEMA as a result of the devastation caused in the State
of New York by either Hurricane Irene
during the period of August 26, 2011 to
September 5, 2011, or the remnants of
Tropical Storm Lee during the period of
September 7, 2011 to September 11, 2011,
as applicable, the individual requires temporary housing. The owner must notify
the Agency that vacant units are available
for rent to displaced individuals.
The owner must also certify the date the
displaced individual began temporary occupancy and the date the project will discontinue providing temporary housing as
established by the Agency. The certifications and recordkeeping for displaced individuals must be maintained as part of
the annual compliance monitoring process
with the Agency.
(4) Rent Restrictions
Rents for the low-income units that
house displaced individuals must not exceed the existing rent-restricted rates for
the low-income units established under
§ 42(g)(2).
(5) Protection of Existing Tenants
Existing tenants in occupied low-income units cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.
EFFECTIVE DATES
This notice is effective August 31, 2011
(the date of the President’s major disaster declaration) for devastation caused by
Hurricane Irene in the State of New York
during the period of August 26, 2011 to

2011–45 I.R.B.

September 5, 2011. This notice is effective
September 13, 2011 (the date of the President’s major disaster declaration) for devastation caused by the remnants of Tropical Storm Lee in the State of New York
during the period of September 7, 2011 to
September 11, 2011.
PAPERWORK REDUCTION ACT
The collection of information contained
in this notice has been reviewed and approved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2220.
An Agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this notice is in the section titled “OTHER REQUIREMENTS” under “(3) Certifications

and Recordkeeping.” This information is
required to enable the Service to verify
whether individuals are displaced as a result of the devastation caused in the State
of New York by either Hurricane Irene
during the period of August 26, 2011 to
September 5, 2011, or the remnants of
Tropical Storm Lee during the period of
September 7, 2011 to September 11, 2011,
and thus warrant temporary housing in vacant low-income housing units. The collection of information is required to obtain
a benefit. The likely respondents are individuals and businesses.
The estimated total annual recordkeeping burden is 300 hours.
The estimated annual burden per
recordkeeper is approximately 15 minutes.
The estimated number of recordkeepers is
1200.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue

law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this notice is
David Selig of the Office of Associate
Chief Counsel (Passthroughs & Special
Industries). For further information regarding this notice, contact Mr. Selig at
(202) 622–3040 (not a toll-free call).
26 CFR 601.602: Tax forms and instructions.
(Also Part I, §§ 1, 23, 24, 25A, 32, 42, 59, 62, 63, 132,
135, 137, 146, 147, 148, 151, 179, 213, 220, 221, 512,
513, 877, 877A, 911, 2010, 2032A, 2503, 2523, 4161,
4261, 6033, 6039F, 6323, 6334, 6601, 7430, 7702B;
1.148–5.)

Rev. Proc. 2011–52

Table of Contents
SECTION 1. PURPOSE
SECTION 2. CHANGES
SECTION 3. 2012 ADJUSTED ITEMS
Code Section
.01 Tax Rate Tables

1(a)–(e)

.02 Unearned Income of Minor Children Taxed as if Parent’s Income (“Kiddie Tax”)

1(g)

.03 Adoption Credit

23

.04 Child Tax Credit

24

.05 Hope Scholarship, American Opportunity, and Lifetime Learning Credits

25A

.06 Earned Income Credit

32

.07 Rehabilitation Expenditures Treated as Separate New Building

42(e)

.08 Low-Income Housing Credit

42(h)

.09 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax”

59(j)

.10 Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation Rules for
Payments to Employees under Accountable Plans

62(c)

.11 Standard Deduction

63

.12 Qualified Transportation Fringe Benefit

132(f)

.13 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education
Expenses

135

.14 Adoption Assistance Programs

137

.15 Private Activity Bonds Volume Cap

146(d)

.16 Loan Limits on Agricultural Bonds

147(c)(2)

2011–45 I.R.B.

701

November 7, 2011