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Wyden Disaster Relief Bill Includes LIHTC Allocation Increase

Thursday, September 17, 2020 - 12:15PM

Sen. Ron Wyden, D-Ore., today introduced disaster relief legislation that would increase low-income housing tax credit (LIHTC) allocation by as much as 50 percent in 2021 for 2020 disaster areas. The 2020 Disasters Tax Relief Act includes relief for areas affected by the Iowa derecho, wildfires in California and Oregon and areas affected by hurricanes Laura and Isaias. It was one of two similar bills introduced today by leaders of the Senate Finance Committee. The competing bill, introduced by Sen. Chuck Grassley, R-Iowa, does not include the LIHTC provisions and covers a period beginning July 1, 2020, while Wyden’s bill extends the disaster period to Jan. 1, 2020. Wyden’s bill would allow an increase of up to 50 percent of the state LIHTC ceiling in 2021 to be allocated to projects in disaster areas. Rep. Earl Blumenauer, D-Ore., will introduce a companion bill to Wyden’s legislation in the House of Representatives.

The disaster provisions and other current issues related to affordable housing will be discussed at the Novogradac 2020 Credit and Bond Financing for Affordable Housing Virtual Conference, Oct. 1-2.

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