Sandy Relief Legislation Lacks LIHTC Increase

Published by Michael Novogradac on Wednesday, January 30, 2013 - 12:00am

Yesterday President Barack Obama signed into law H.R. 152, the Disaster Relief Appropriations Act of 2013. The bill provides approximately $50 billion for recovery and rebuilding in areas affected by Hurricane Sandy, including $16 billion in disaster Community Development Block Grants (CDBG) for states impacted by disasters in 2011, 2012 and 2013. In light of the difficult – and three-month long – path this bill took to pass, it seems unlikely that additional relief, such as a tax bill, is in the cards.

This is unfortunate because H.R. 152 does not include the increased low-income housing tax credit (LIHTC) authority proposed by Sens. Charles Schumer, D-N.Y., and Robert Menendez, D-N.J., in late 2012. Among other things, Sens. Schumer and Menendez’s proposal, the Hurricane Sandy and National Disaster Tax Relief Act, would have increased affected states’ LIHTC authority in 2013, 2014 and 2015 by $8 multiplied by the disaster-area population.

The bill was not passed before the 112th Congress adjourned and has yet to be reintroduced in the 113th Congress. Based on Novogradac & Company’s estimated impact of the Hurricane Sandy and National Disaster Tax Relief Act on the LIHTC, the provision could have led to the creation of more than 58,000 units of affordable housing in impacted areas.

Here is a breakdown of estimated units by state:

Estimated Units
Produced 2013 
 2015

 

District of Columbia

1,233

New Hampshire

321

West Virginia

1,323

Virginia

7,509

Maryland

6,072

Delaware

3,135

Rhode Island

306

Connecticut

4,101

New York

20,025

New Jersey

8,838

Massachusetts

1,449

Ohio

1,656

Pennsylvania

2,097

Total

58,065

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