SECTION 1. PURPOSE

This revenue procedure sets forth, for purposes of § 1.42–5T(c)(2)(iii)(B) of the Income Tax Regulations, the minimum number of low-income units in a lowincome housing project for which a State or local housing credit agency (Agency) must conduct physical inspections and low-income certification reviews. This revenue procedure also permits the physical inspection protocol established by the Department of Housing and Urban Development (HUD) Real Estate Assessment Center (the REAC protocol) to satisfy the physical inspection requirements of § 1.42–5(d) and § 1.42–5T(c)(2)(ii) and (iii).