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) intro-
duced 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 Representa-
tives 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’’. 
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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 para-
graph (5) as paragraph (6) and by inserting after para-
graph (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 Oppor-
tunity 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 be-
ginning on January 1, 2006, and ending on Decem-
ber 31, 2010’’. 
(2) CONFORMING AMENDMENT.—Clause (ii) of 
section 1400N(c)(3)(B) of such Code is amended by 
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striking ‘‘such period’’ and inserting ‘‘the period de-
scribed 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 cred-
it), 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
DETER-
MINING
IF
BUILDINGS
ARE
FEDERALLY
SUB-
SIDIZED.—For 
purpose 
of 
applying 
section 
42(i)(2)(D) to any building which is placed in serv-
ice 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 pro-
vided 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 
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Defense, the Global War on Terror, and Hurricane 
Recovery, 2006.’’. 
SEC. 3. SPECIAL TAX-EXEMPT BOND FINANCING RULE FOR 
REPAIRS AND RECONSTRUCTIONS OF RESI-
DENCES IN THE GO ZONES. 
Subsection (a) of section 1400N of the Internal Rev-
enue Code of 1986 (relating to tax-exempt bond financing) 
is amended by adding at the end the following new para-
graph: 
‘‘(7) SPECIAL RULE FOR REPAIRS AND RECON-
STRUCTIONS.— 
‘‘(A) IN GENERAL.—For purposes of sec-
tion 143 and this subsection, any qualified GO 
Zone repair or reconstruction shall be treated 
as a qualified rehabilitation. 
‘‘(B) QUALIFIED GO ZONE REPAIR OR RE-
CONSTRUCTION.—For purposes of subpara-
graph (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 de-
struction) if the expenditures for such repair or 
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