Senators Propose LIHTC Relief for Northeast Disaster Areas
On May 24, New York Senator Kirsten Gillibrand introduced legislation to increase the amount of low-income housing tax credits (LIHTC) available to communities affected by Hurricane Irene and Tropical Storm Lee. Specifically, the bill would increase by about $2.15 per capita the LIHTC allocations for 2012, 2013, and 2014 in the affected areas.
In the past, available tax credits have been increased to encourage affordable housing development in disaster-affected areas. For example, these measures were adopted in 2005 following Hurricanes Katrina and Rita along the Gulf Coast and in the Midwest following extreme flooding in 2008.
Hurricane Irene and Tropical Storm Lee caused widespread flooding across New York, North Carolina, New Jersey, Vermont, and Massachusetts. Senators Patrick Leahy and Bernie Sanders, both of Vermont, are cosponsoring the measure.