Exceptions to Section 42 of the Internal Revenue Code to Develop Rental Housing for Disaster-Displaced Households

Resolved that NAHB urge Congress to implement the following statutory changes as exceptions to Section 42 of the Internal Revenue Code for Low Income Housing Tax Credit (LIHTC) projects located in the federally declared disaster areas:

1. Grant state housing finance agencies (or appropriate allocating agencies) the authority to set a higher tax credit percentage for each project, up to a maximum of 12%.
2. Waive the eligibility restriction on LIHTC properties in place less than 10 years so that those that were substantially damaged by the storms can obtain additional tax credits to make them habitable again.
3. Allow a special disaster tax credit allocation (such as provided for the Gulf Opportunity Zone in H.R. 4440) to be carried over for up to five years, based on the amount of additional authority being allocated.
4. Allow the use of federal assistance with tax credits without reducing the eligible basis of the project.

Resolution originally adopted: 2006.5, Resolution No. 3

Committee with primary jurisdiction:

• Federal Government Affairs Committee
• Housing Finance Committee
• Multifamily Council Board of Trustees