I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Katrina Housing Tax 

5 Relief Act of 2007’’. 


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1 SEC. 2. EXTENSION AND EXPANSION OF LOW-INCOME 

2 HOUSING CREDIT RULES FOR BUILDINGS IN 

3 THE GO ZONES. 

4 (a) TIME FOR MAKING LOW-INCOME HOUSING

5 CREDIT ALLOCATIONS.—Subsection (c) of section 1400N 

6 of the Internal Revenue Code of 1986 (relating to low7 income housing credit) is amended by redesignating para8 graph (5) as paragraph (6) and by inserting after para9 graph (4) the following new paragraph: 

10 ‘‘(5) TIME FOR MAKING LOW-INCOME HOUSING

11 CREDIT ALLOCATIONS.—Section 42(h)(1)(B) shall 

12 not apply to an allocation of housing credit dollar 

13 amount to a building located in the Gulf Oppor14 tunity Zone, the Rita GO Zone, or the Wilma GO 

15 Zone, if such allocation is made in 2006, 2007, or 

16 2008, and such building is placed in service before 

17 January 1, 2011.’’. 

18 (b) EXTENSION OF PERIOD FOR TREATING GO 

19 ZONES AS DIFFICULT DEVELOPMENT AREAS.— 

20 (1) IN GENERAL.—Subparagraph (A) of section 

21 1400N(c)(3) of such Code is amended by striking 

22 ‘‘2006, 2007, or 2008’’ and inserting ‘‘the period be23 ginning on January 1, 2006, and ending on Decem24 ber 31, 2010’’. 

25 (2) CONFORMING AMENDMENT.—Clause (ii) of 

26 section 1400N(c)(3)(B) of such Code is amended by 


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1 striking ‘‘such period’’ and inserting ‘‘the period de2 scribed in clause (i)’’. 

3 (c) COMMUNITY DEVELOPMENT BLOCK GRANTS NOT

4 TAKEN INTO ACCOUNT IN DETERMINING IF BUILDINGS

5 ARE FEDERALLY SUBSIDIZED.—Subsection (c) of section 

6 1400N of such Code (relating to low-income housing cred7 it), as amended by this Act, is amended by redesignating 

8 paragraph (6) as paragraph (7) and by inserting after 

9 paragraph (5) the following new paragraph: 

10 ‘‘(6) COMMUNITY DEVELOPMENT BLOCK

11 GRANTS NOT TAKEN INTO ACCOUNT IN DETER12 MINING IF BUILDINGS ARE FEDERALLY SUB13 SIDIZED.—For purpose of applying section 

14 42(i)(2)(D) to any building which is placed in serv15 ice in the Gulf Opportunity Zone, the Rita GO Zone, 

16 or the Wilma GO Zone during the period beginning 

17 on January 1, 2006, and ending on December 31, 

18 2010, a loan shall not be treated as a below market 

19 Federal loan solely by reason of any assistance pro20 vided under section 106, 107, or 108 of the Housing 

21 and Community Development Act of 1974 by reason 

22 of section 122 of such Act or any provision of the 

23 Department of Defense Appropriations Act, 2006, or 

24 the Emergency Supplemental Appropriations Act for 


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1 Defense, the Global War on Terror, and Hurricane 

2 Recovery, 2006.’’. 

3 SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR 

4 REPAIRS AND RECONSTRUCTIONS OF RESI5 DENCES IN THE GO ZONES. 

6 Subsection (a) of section 1400N of the Internal Rev7 enue Code of 1986 (relating to tax-exempt bond financing) 

8 is amended by adding at the end the following new para9 graph: 

10 ‘‘(7) SPECIAL RULE FOR REPAIRS AND RECON11 STRUCTIONS.— 

12 ‘‘(A) IN GENERAL.—For purposes of sec13 tion 143 and this subsection, any qualified GO 

14 Zone repair or reconstruction shall be treated 

15 as a qualified rehabilitation. 

16 ‘‘(B) QUALIFIED GO ZONE REPAIR OR RE17 CONSTRUCTION.—For purposes of subpara18 graph (A), the term ‘qualified GO Zone repair 

19 or reconstruction’ means any repair of damage 

20 caused by Hurricane Katrina, Hurricane Rita, 

21 or Hurricane Wilma to a building located in the 

22 Gulf Opportunity Zone, the Rita GO Zone, or 

23 the Wilma GO Zone (or reconstruction of such 

24 building in the case of damage constituting de25 struction) if the expenditures for such repair or 


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1 reconstruction are 25 percent or more of the 

2 mortgagor’s adjusted basis in the residence. 

3 For purposes of the preceding sentence, the 

4 mortgagor’s adjusted basis shall be determined 

5 as of the completion of the repair or reconstruc6 tion or, if later, the date on which the mort7 gagor acquires the residence. 

8 ‘‘(C) TERMINATION.—This paragraph shall 

9 apply only to owner-financing provided after the 

10 date of the enactment of this paragraph and be11 fore January 1, 2011.’’. 

Æ 


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