Katrina Assistance Tax Relief Incentives for Necessities Act

Congresswoman Stephanie Tubbs Jones (D-OH) introduced legislation today that will provide important first steps towards providing adequate housing and gaining employment for the victims of Hurricane Katrina.

The Katrina Assistance Tax Relief Incentives for Necessities Act of 2005 (KATRINA) will:

(1) extend the Work Opportunity Tax Credit to Katrina Victims;

(2) provide a tax credit to families housing displaced victims of Hurricane Katrina;

(3) provide a homebuyer tax credit for those displaced victims who return to the state where they used to reside and purchase a new home;

(4) expand the Low Income Housing Tax Credit to benefit Katrina victims and devastated areas.

More specifically the legislation proposes to double the per capita Housing Tax Credit authority for Louisiana, Mississippi, and Alabama for 2006 and 2007.  It will also extend the Difficult Development Area (DDA) designation to federal disaster areas in Louisiana, Mississippi, Alabama, and Florida.  The legislation would also waive the national pool “full subscription” requirement for Louisiana, Mississippi, Alabama, and Florida.

The Affordable Housing Tax Credit Coalition applauds Congresswoman Tubbs Jones for recognizing the importance of the Housing Credit program in the rebuilding effort and the ways in which the Housing Credit helps catalyze public/private/community partnerships that create safe, affordable, attractive housing, attract private capital, and prime the market for other activities, including home ownership and retail facilities.

This legislation provides a crucial first step towards using the Housing Credit program to meet the newly created affordable housing needs in the Gulf States.  The Coalition looks forward to working with Congresswoman Tubbs Jones and others on Capitol Hill to find ways to provide safe, affordable housing to people impacted by this national tragedy.