Form 8823

(Rev. June 2023)

Department of the Treasury 

Internal Revenue Service 

Low-Income Housing Credit Agencies 

Report of Noncompliance or Building Disposition

File a separate Form 8823 for each building that is disposed of or goes out of compliance. 

Go to www.irs.gov/Form8823 for the latest information.

OMB No. 1545-1204

Check here if this is 

an amended return

1 Building name (if any). Check if line 1 differs from Form 8609 IRS Use Only

Street address 

City or town State 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 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 . .

11 Check the box(es) that applies:

Out of 

compliance 

Noncompliance 

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

Street address 

City or town State ZIP code 

d New owner’s taxpayer identification number

EIN SSN 

14 Name of contact person

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. 6-2023) 
Barcode 1 Barcode 2

Barcode 3 Barcode 4

Form 8823 (Rev. 6-2023) Page 2 
Form 8823 (Rev. 6-2023) Page 3 

General Instructions 

Section references are to the Internal Revenue Code 

unless otherwise noted. 

Future developments. For the latest information about 

developments related to Form 8823 and its instructions, 

such as legislation enacted after they were published, go 

to www.irs.gov/Form8823.

Purpose of Form 

Housing credit agencies use Form 8823 as part of their 

compliance monitoring responsibilities under section 

42(m)(1)(B)(iii) to notify the IRS of any building disposition 

or noncompliance with the low-income housing tax credit 

provisions.

The housing credit agency should also give a copy of 

Form 8823 to the owner(s). 

Who Must File 

Any authorized housing credit agency that becomes 

aware that a low-income housing building was disposed 

of or is not in compliance with the provisions of section 42 

must file Form 8823. 

When To File 

File Form 8823 no later than 45 days after (a) the building 

was disposed of, or (b) the end of the time allowed the 

building owner to correct the condition(s) that caused 

noncompliance. For details, see Regulations section 

1.42-5(e). 

Where To File 

File Form 8823 with the: 

Department of the Treasury 

Internal Revenue Service Center 

Philadelphia, PA 19255-0549 

Specific Instructions 

Amended return. If you are filing an amended return to 

correct previously reported information, check the box at 

the top of page 1. 

Line 2. Enter the building identification number (BIN) 

assigned to the building by the housing credit agency as 

shown on Form 8609. 

Lines 3, 4, 13c, and 13d. If there is more than one owner 

(other than as a member of a pass-through entity), attach a 

schedule listing the owners, their addresses, and their 

taxpayer identification numbers. Indicate whether each 

owner’s taxpayer identification number is an employer 

identification number (EIN) or a social security number (SSN).

Both the EIN and the SSN have nine digits. An EIN has 

two digits, a hyphen, and seven digits. An SSN has three 

digits, a hyphen, two digits, a hyphen, and four digits, and 

is issued only to individuals. 

Line 7d. “Reviewed by agency” includes physical 

inspection of the property, tenant file inspection, or 

review of documentation submitted by the owner. 

Regulations section 1.42-5(c)(2)(iii)(B) provides that a 

housing credit agency must conduct on-site inspections 

and low-income certification review of not fewer than the 

minimum number of low-income units set forth in the 

table found in Regulations section 1.42-5(c)(2)(iii). 

Note: If the only noncompliance issue identified by the 

physical inspection of the property on line 11c relates to 

a common area, then the number of units identified on 

line 7c should be -0-.

Line 8. Enter the date that the building ceased to comply 

with the low-income housing credit provisions. If there are 

multiple noncompliance issues, enter the date for the 

earliest discovered issue. Do not complete line 8 for a 

building disposition. Instead, skip lines 9 through 12, and 

complete line 13. 

Line 9. Enter the date that the noncompliance issue was 

corrected. If there are multiple issues, enter the date the 

last correction was made. 

Line 10. Do not check this box unless the sole reason for 

filing the form is to indicate that previously reported 

noncompliance problems have been corrected. 

Lines 11a through 11p. Check only the “Out of 

compliance” box if the issue causing the noncompliance 

remains uncorrected at the end of the correction period. 

Check both the “Out of compliance” and “Noncompliance 

corrected” boxes if the noncompliance was corrected 

within the correction period. Check only the 

“Noncompliance corrected” box if the noncompliance was 

previously reported to the IRS on a separate Form 8823. 

Line 11c. Housing credit agencies must use either (a) the 

local health, safety, and building codes (or other 

habitability standards); or (b) the Uniform Physical 

Condition Standards (UPCS) (24 C.F.R. section 5.703) to 

inspect the project, but not in combination. The UPCS 

does not supersede or preempt local codes. Thus, if a 

housing credit agency using the UPCS becomes aware of 

any violation of local codes, the agency must report the 

violation. Attach a statement describing either (a) the 

deficiency and its severity under the UPCS (that is, minor 

(level 1), major (level 2), and severe (level 3)); or (b) the 

health, safety, or building violation under the local codes. 

The Department of Housing and Urban Development’s 

Real Estate Assessment Center has developed a 

comprehensive description of the types and severities of 

deficiencies entitled “Revised Dictionary of Deficiency 

Definitions” found at www.hud.gov. Under Regulations 

section 1.42-5(e)(3), report all deficiencies to the IRS 

whether or not the noncompliance or failure to certify is 

corrected at the time of inspection. Physical damage to 

low-income housing credit projects caused by casualty 

events and that render residential rental units or buildings, 

or common areas associated with the property, 

unsuitable for occupancy is reported as noncompliance 

with the UPCS or local standards. While no credit is 

allowable during the time the property is being restored 

by reconstruction or replacement, section 42(j)(4)(E) 

provides relief from the credit recapture provisions; that 

is, the recapture provisions are not applied when there is 

a reduction in qualified basis by reason of a casualty loss 

to the extent such loss is restored by reconstruction or 

replacement within a reasonable period.

Line 11d. Report the failure to provide annual 

certifications or the provision of certifications that are 

known to be incomplete or inaccurate as required by 

Regulations section 1.42-5(c). As examples, report a 

failure by the owner to include a statement summarizing 

violations (or copies of the violation reports) of local 

health, safety, or building codes; report an owner who 

provided inaccurate or incomplete statements concerning 

corrections of these violations. 
Form 8823 (Rev. 6-2023) Page 4 

Line 11e. For buildings placed in service after July 30, 

2008, report any federal grant used to finance any costs 

that were included in the eligible basis of any building. 

Report changes in common areas when they become 

commercial, when fees are charged for facilities, etc. For 

buildings placed in service after July 30, 2008, report any 

obligation the interest on which is exempt from tax under 

section 103 that is or was used (directly or indirectly) with 

respect to the building or its operation during the 

compliance period and that was not taken into account 

when determining eligible basis at the close of the first 

year of the credit period. 

Line 11f. Failure to satisfy the minimum set-aside 

requirement for the first year of the credit period results in 

the permanent loss of the entire credit. 

Failure to maintain the minimum set-aside requirement 

for any year after the first year of the credit period results 

in recapture of previously claimed credit and no allowable 

credit for that tax year. No low-income housing credit is 

allowable until the minimum set-aside is restored for a 

subsequent tax year. 

In 2018, Congress revised section 42(g) to add a third 

minimum set-aside: the average income test. See section 

42(g)(1)(C) for more information about the requirements of 

the average income test.

Line 11h. All units in the building must be for use by the 

general public (as defined in Regulations section 1.42-9 

and further clarified in section 42(g)(9)), including the 

requirement that no finding of discrimination under the 

Fair Housing Act occurred for the building. Low-income 

housing credit properties are subject to Title VIII of the 

Civil Rights Act of 1968, also known as the Fair Housing 

Act. The Act prohibits discrimination in the sale, rental, 

and financing of dwellings based on race, color, religion, 

sex, national origin, familial status, and disability. See 42 

U.S.C.A. sections 3601 through 3619. 

It also mandates specific design and construction 

requirements for multifamily housing built for first 

occupancy after March 13, 1991, in order to provide 

accessible housing for individuals with disabilities. The 

failure of low-income housing credit properties to comply 

with the requirements of the Fair Housing Act will result in 

the loss of the low-income housing credit. 

Individuals with questions about the accessibility 

requirements can obtain the Fair Housing Act Design 

Manual through www.huduser.org.

Line 11i. The owner must rent to low-income tenants all 

comparable units that are available or that subsequently 

become available in the same building in order to 

continue treating the over-income unit(s) as a low-income 

unit. All units affected by a violation of the available unit 

rule may not be included in qualified basis. When the 

percentage of low-income units in a building again equals 

the percentage of low-income units on which the credit is 

based, the full availability of the credit is restored. Thus, 

only check the “Noncompliance corrected” box when the 

percentage of low-income units in the building equals the 

percentage on which the credit is based. 

Line 11k. Section 42(h)(6) requires owners of low-income 

housing credit properties to enter into an extended use 

agreement with the state agency that allocated the 

credits to the project. Building owners must agree to a 

long-term commitment beginning on the first day of the 

15-year compliance period and ending on the later of (1) 

the date specified by the state agency in the agreement, 

or (2) the date that is 15 years after the close of the 

15-year compliance period. 

The extended use agreement must (1) specify that the 

applicable fraction for the building for each year in the 

extended use period will not be less than the applicable 

fraction specified in the extended use agreement and 

prohibit the eviction or the termination of tenancy (other 

than for good cause) of an existing tenant of any lowincome unit or any increase in the gross rent with respect 

to such unit not otherwise permitted under section 42, (2) 

allow individuals (whether prospective, present, or former 

occupants) who meet the income limitations applicable to 

the building under section 42(g) the right to enforce in state 

court the requirements and prohibitions under section 42

(h)(6)(B)(i) throughout the extended use period, (3) prohibit 

the disposition to any person of any portion of the building 

unless all of the building is disposed of to that person, (4) 

prohibit the refusal to lease to section 8 voucher holders 

because of the status of the prospective tenant as such a 

holder, and (5) provide that the agreement is binding on all 

successors of the taxpayer. The extended use agreement 

must be recorded as a restrictive covenant with respect to 

the property under state law.

Noncompliance should be reported if an extended use 

agreement is not executed and recorded as a restrictive 

covenant with respect to the property under state law or 

the owner failed to correct the noncompliance within the 

1-year correction period provided by section 42(h)(6)(J). 

The 1-year correction period begins when the agency 

notifies the owner in writing that an extended use 

agreement is not recorded as a restrictive covenant with 

respect to the property under state law. A copy of the 

notification letter should be included as an attachment to 

Form 8823 when filed with the IRS.

Line 11q. Check this box for noncompliance events other 

than those listed on lines 11a through 11p. Attach an 

explanation. For projects with allocations from the 

nonprofit set-aside under section 42(h)(5), report the lack 

of material participation by a non-profit organization (that 

is, regular, continuous, and substantial involvement) that 

the housing credit agency learns of during the compliance 

period. 

Paperwork Reduction Act Notice. We ask for the 

information on this form to carry out the Internal Revenue 

laws of the United States. You are required to give us the 

information. We need it to ensure that you are complying 

with these laws and to allow us to figure and collect the 

right amount of tax. 

You are not required to provide the information 

requested on a form that is subject to the Paperwork 

Reduction Act unless the form displays a valid OMB 

control number. Books or records relating to a form or its 

instructions must be retained as long as their contents 

may become material in the administration of any Internal 

Revenue law. Generally, tax returns and return 

information are confidential, as required by section 6103. 
Form 8823 (Rev. 6-2023) Page 5 

The time needed to complete and file this form will vary 

depending on individual circumstances. The estimated 

average time is: 

Recordkeeping . . . . . . . . . 11 hr., 43 min. 

Learning about the law 

or the form . . . . . . . . . . . . 1 hr., 35 min. 

Preparing and sending 

the form to the IRS . . . . . . . . . 1 hr., 51 min. 

If you have comments concerning the accuracy of 

these time estimates or suggestions for making this form 

simpler, we would be happy to hear from you. You can 

send your comments to www.irs.gov/FormComments. Or 

you can write to the Internal Revenue Service, Tax Forms 

and Publications Division, 1111 Constitution Ave. NW, 

IR-6526, Washington, DC 20224. Do not send the form to 

this address. Instead, see Where To File, earlier.