Monarch Housing Associates has been working with Enterprise and other partner over the almost two years since Superstorm Sandy to ensure the rebuilding benefits all of our citizens. One of the key issues has been securing tax relief and an increase in the funding of Low Income Housing Tax Credits (LIHTC). Enterprise has developed a page on their website that is now home to several disaster tax relief resources.
Though Congress has routinely provided tax relief for the communities impacted by natural disasters, no similar relief has been provided for the 23 states that have been impacted by federally declared natural disasters from 2012 – 2014. Although Community Development Block Grant Disaster Recovery (CDBG-DR) funds have been deployed to many of these communities, additional resources are needed to fully rebuild.
It is nearly impossible to replace lost affordable housing without the Low-Income Housing Tax Credit (Housing Credit), and more difficult to revitalize the most distressed neighborhoods without the help of the New Markets Tax Credit (NMTC). It is also becoming more apparent that in addition to rebuilding impacted communities, we need to rebuild stronger so that they are more resilient in the face of future disasters.
Legislation, supported by Monarch, has been introduced in both the House and the Senate to provide tax relief to states impacted by natural disasters from 2012 through 2014. Both bills include a Housing Credit allocation for each affected state calculated as the higher of $8 per person in the qualifying disaster area or 50 percent of the state Housing Credit ceiling. New Jersey’s allocation would be $70.8 million.
Impacted communities would also be eligible to apply for an additional NMTC allocation of $500 million.