IRS Waiving Certain Rules After Hurricane Katrina

Friday, September 2, 2005 - 7:15AM

The Treasury Department and the Internal Revenue Service (IRS) today announced that they will waive rules that prohibit owners of low-income housing from providing housing to victims of Hurricane Katrina who do not qualify as low-income under Section 42 of the Internal Revenue Code in order to expand the availability of housing for disaster victims and their families. Because of the widespread devastation to housing caused by Hurricane Katrina, the Treasury Department and the IRS will temporarily suspend income limitation requirements and non-transient requirements for qualified low-income housing tax credit (LIHTC) projects located anywhere in the United States. In 2004, the IRS suspended LIHTC income limitation requirements for 12 months in Alabama, Florida, and Ohio following Hurricanes Frances, Ivan and Jeanne.

Meanwhile, the Louisiana Housing Finance Agency has made a special request of LIHTC property owners and developers to advise the agency via e-mail at [email protected], of units available by unit type in an effort to provide disaster relief assistance to displaced persons.

Also, the Texas Department of Housing and Community Affairs (TDHCA) has asked owners and managers of LIHTC developments to submit vacancy information submitted through the TDHCA Compliance Monitoring Tracking System (CMTS).

Likewise, the Kentucky Housing Corporation, working with FEMA and the Kentucky HUD office to assist displaced individuals and victims of Hurricane Katrina, is compiling a list of available LIHTC and HOME rental units for the state of Kentucky. KHC is requesting the following information for both LIHTC and HOME units: the number of available units; the number of bedrooms per unit; the address of the property (including city); a contact person (including telephone number and e-mail address). Owners and managers are asked to send these details to Doug Wade at [email protected] by 4 p.m., ET, on Wednesday, September 7.

The Federal Emergency Management Agency (FEMA) and the Department of Homeland Security have created a clearinghouse to collect information on housing available for hurricane victims. Apartment owners that have units available that they would like to add to the registry, are asked to submit that information to the National Emergency Resource Registry (NERR) at www.swern.gov. HUD has also announced it is providing disaster relief and posted details of its ongoing and planned efforts.

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