Updated: Estimate LIHTC Impact of Sandy Relief Bill

Published by Michael Novogradac on Monday, January 21, 2013 - 12:00am

Despite adjourning the 112th session of Congress without passing tax relief legislation for those affected by Superstorm Sandy, pressure has remained steady on lawmakers to act.

As reported in this space on Dec. 26, Sens. Charles Schumer, D-N.Y., and Robert Menendez, D-N.J. have teamed up to support The Hurricane Sandy and National Disaster Tax Relief Act. Among other things, the bill would increase affected states’ low-income housing tax credit (LIHTC) authority in 2013, 2014 and 2015 by $8 multiplied by the disaster-area population in the District of Columbia, New Hampshire, West Virginia, Virginia, Maryland, Delaware, Rhode Island, Connecticut, New York and New Jersey.

Since Novogradac & Company published its preliminary estimates, two additional disaster area declarations have been made related to Superstorm Sandy: Cuyahoga County, Ohio and Baltimore County, Md. were declared disaster areas on Jan. 3 and Jan. 4, respectively.

As such, we’ve updated our estimated impact of the Hurricane Sandy and National Disaster Tax Relief Act on the LIHTC. Based on these adjustments, the amount of proposed additional tax credits and the estimated number of units that would be produced as a result both increased by approximately 6 percent.

Here is a breakdown of estimated units by state:

 Estimated Units
Produced 2013 ‐ 2015
District of Columbia1,233
New Hampshire321
West Virginia1,323
Rhode Island306
New York20,025
New Jersey8,838

For details, click here.