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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1562 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 1562

To amend the Internal Revenue Code of 1986 to extend and expand certain 
             rules with respect to housing in the GO Zones.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2007

    Mr. Rangel (for himself, Mr. McCrery, and Mr. Lewis of Georgia) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL

 
To amend the Internal Revenue Code of 1986 to extend and expand certain 
             rules with respect to housing in the GO Zones.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Katrina Housing Tax Relief Act of 
2007''.

SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME HOUSING CREDIT RULES FOR 
              BUILDINGS IN THE GO ZONES.

    (a) Time for Making Low-Income Housing Credit Allocations.--
Subsection (c) of section 1400N of the Internal Revenue Code of 1986 
(relating to low-income housing credit) is amended by redesignating 
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the 
following new paragraph:
            ``(5) Time for making low-income housing credit 
        allocations.--Section 42(h)(1)(B) shall not apply to an 
        allocation of housing credit dollar amount to a building 
        located in the Gulf Opportunity Zone, the Rita GO Zone, or the 
        Wilma GO Zone, if such allocation is made in 2006, 2007, or 
        2008, and such building is placed in service before January 1, 
        2011.''.
    (b) Extension of Period for Treating GO Zones as Difficult 
Development Areas.--
            (1) In general.--Subparagraph (A) of section 1400N(c)(3) of 
        such Code is amended by striking ``2006, 2007, or 2008'' and 
        inserting ``the period beginning on January 1, 2006, and ending 
        on December 31, 2010''.
            (2) Conforming amendment.--Clause (ii) of section 
        1400N(c)(3)(B) of such Code is amended by striking ``such 
        period'' and inserting ``the period described in clause (i)''.
    (c) Community Development Block Grants Not Taken Into Account in 
Determining if Buildings Are Federally Subsidized.--Subsection (c) of 
section 1400N of such Code (relating to low-income housing credit), as 
amended by this Act, is amended by redesignating paragraph (6) as 
paragraph (7) and by inserting after paragraph (5) the following new 
paragraph:
            ``(6) Community development block grants not taken into 
        account in determining if buildings are federally subsidized.--
        For purpose of applying section 42(i)(2)(D) to any building 
        which is placed in service in the Gulf Opportunity Zone, the 
        Rita GO Zone, or the Wilma GO Zone during the period beginning 
        on January 1, 2006, and ending on December 31, 2010, a loan 
        shall not be treated as a below market Federal loan solely by 
        reason of any assistance provided under section 106, 107, or 
        108 of the Housing and Community Development Act of 1974 by 
        reason of section 122 of such Act or any provision of the 
        Department of Defense Appropriations Act, 2006, or the 
        Emergency Supplemental Appropriations Act for Defense, the 
        Global War on Terror, and Hurricane Recovery, 2006.''.

SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR REPAIRS AND 
              RECONSTRUCTIONS OF RESIDENCES IN THE GO ZONES.

    Subsection (a) of section 1400N of the Internal Revenue Code of 
1986 (relating to tax-exempt bond financing) is amended by adding at 
the end the following new paragraph:
            ``(7) Special rule for repairs and reconstructions.--
                    ``(A) In general.--For purposes of section 143 and 
                this subsection, any qualified GO Zone repair or 
                reconstruction shall be treated as a qualified 
                rehabilitation.
                    ``(B) Qualified go zone repair or reconstruction.--
                For purposes of subparagraph (A), the term `qualified 
                GO Zone repair or reconstruction' means any repair of 
                damage caused by Hurricane Katrina, Hurricane Rita, or 
                Hurricane Wilma to a building located in the Gulf 
                Opportunity Zone, the Rita GO Zone, or the Wilma GO 
                Zone (or reconstruction of such building in the case of 
                damage constituting destruction) if the expenditures 
                for such repair or reconstruction are 25 percent or 
                more of the mortgagor's adjusted basis in the 
                residence. For purposes of the preceding sentence, the 
                mortgagor's adjusted basis shall be determined as of 
                the completion of the repair or reconstruction or, if 
                later, the date on which the mortgagor acquires the 
                residence.
                    ``(C) Termination.--This paragraph shall apply only 
                to owner-financing provided after the date of the 
                enactment of this paragraph and before January 1, 
                2011.''.
                                 <all>
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