Hurricane Sandy and Low Income Housing Tax Credit (LIHTC) Properties

The Internal Revenue Service (IRS) and the Department of Treasury will be waiving the low-income and non-transient requirements for Low Income Housing Tax Credit (LIHTC) Properties providing temporary housing to disaster victims rendered homeless by Hurricane Sandy in certain counties.  Without this change these property owners would not be able to offer vacant units to homeless victims of Hurricane Sandy whose incomes are above the low-income limitations of the LIHTC Affordable Housing Program.
Also, the United States Department of Housing and Urban Development (HUD) Secretary Shaun Donovan just ordered foreclosure relief for certain disaster victims from Hurricane Sandy located in covered counties as well as other relief.

2 comments

  1. davidlayfield says:

    Thanks for covering this. We saw the press earlier today and thought at first this may help with some relocation efforts we’re involved in down in Somerset County, Maryland where hundreds of people have been displaced by floods in the Western coastal areas of the County, primarily in Crisfield.

    We’re aware of LIHTC properties within a reasonable distance that many of these residents would qualify for. The problem is that they don’t want to sign a 1 year lease on a temporary apartment 20 miles from home when their home will be renovated in 90 days.

    The problem with this emergency action is that it seems to only apply to CT, NY and NJ where FEMA has declared disaster areas. Somerset County has not been declared a disaster area.

    We are working to identify who at Treasury may be able to broaden the availability of this rule as it could help 20 or 30 families we have already identified.

    Any ideas?

  2. First, thank you for taking the time to read this blog and to comment to one of the posts. Our region is dealing with a natural disaster that is unprecented in my lifetime here. I would guess there is a public policy balancing act between making the LIHTC properties available to disaster victims and keeping the LIHTC properties available to those qualifying tenants who have been on wait lists for their dream opportunity to live in quality affordable housing. I would also guess from a public policy perspective that it is easiest to defer where to draw the line to the FEMA experts rather than try to determine a unique system. Again, just an educated guess in response to your comment. Again, thank you for taking the time to comment.

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