New LIHTC exemptions for Rita victims

Victims of Hurricane Rita got tax credit housing parity with Katrina evacuees today in IRS Notice 2006-11. This new announcement suspends income, residency, and other requirements to let low-income housing tax credit projects house evacuees from Hurricane Rita regardless of their former or present incomes. It's described as "relief similar to Notice 2005-69," which did suspend rules similarly in connection with Hurricane Katrina. Under both Notices, the special exceptions can travel as far as the displaced person; the tax-credit building affected can be anywhere in the country so long as the relevant state-level housing tax credit agency approves. The expiration date for both Notices is Sep. 30, 2006.

Also out today: Revenue Procedure 2006-16, on how to grant retroactive tax advantages to buildings in expanded areas of renewal communities.