Sen. Richard Shelby (R-Ala.) has introduced legislation that would allow Southern states hit by recent storms to receive additional low-income housing tax credits.
The states eligible for assistance under the bill are Alabama, Arkansas, Georgia, Kentucky, Mississippi, Missouri, North Carolina, Oklahoma, and Tennessee.
Rep. Spencer Bachus (R-Ala.), chairman of the House Committee on Financial Services, has introduced a companion bill in the House.
The proposal calls for states to receive additional housing credit allocations of $8 per person in the disaster area through 2013.
In addition, the Southeastern Disaster Relief Act of 2011 provides states and local governments in the disaster area to issue private-activity bonds to spur investments in the recovering areas. Bond proceeds can be used to pay for acquisition, construction, and renovation of nonresidential real property, low-income rental housing, low-income single-family residential housing, and public utility property.
The amount of tax-exempt bonds each state may issue is based on the state’s population in the disaster area multiplied by $1,000. For Alabama, that’s $3.2 billion in bond authority, according to Shelby’s office.
Bond provisions would remain in effect until Jan. 1, 2018.
S. 1205 consists of tax provisions that were enacted as part of previous natural disaster response bills, including the legislation that followed the tornadoes and flooding in the Midwest in 2009 and the relief bill that was passed after Hurricane Katrina in the Gulf Coast.