IB 
Union Calendar No. 37 
110TH CONGRESS 
1ST SESSION H. R. 1562 
[Report No. 110–66] 
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 
MARCH 23, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on March 19, 2007] 
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, 
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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 In-
ternal Revenue Code of 1986 (relating to low-income hous-
ing credit) is amended by redesignating paragraph (5) as 
paragraph (6) and by inserting after paragraph (4) the fol-
lowing 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 be-
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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 
striking ‘‘such period’’ and inserting ‘‘the period de-
scribed in subparagraph (A)’’. 
(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 para-
graph (6) as paragraph (7) and by inserting after para-
graph (5) the following new paragraph: 
‘‘(6) COMMUNITY DEVELOPMENT BLOCK GRANTS 
NOT
TAKEN
INTO
ACCOUNT
IN
DETERMINING
IF 
BUILDINGS ARE FEDERALLY SUBSIDIZED.—For pur-
pose 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 dur-
ing 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 rea-
son of any assistance provided under section 106, 
107, or 108 of the Housing and Community Develop-
ment Act of 1974 by reason of section 122 of such Act 
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or any provision of the Department of Defense Appro-
priations 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 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 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 RE-
CONSTRUCTION.—For purposes of subparagraph 
(A), the term ‘qualified GO Zone repair or re-
construction’ 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 
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building in the case of damage constituting de-
struction) 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 mortga-
gor’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 be-
fore January 1, 2011.’’. 
SEC. 4. GAO STUDY OF PRACTICES EMPLOYED BY STATE 
AND LOCAL GOVERNMENTS IN ALLOCATING 
AND UTILIZING TAX INCENTIVES PROVIDED 
PURSUANT 
TO 
THE 
GULF 
OPPORTUNITY 
ZONE ACT OF 2005. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a study of the practices em-
ployed by State and local governments, and subdivisions 
thereof, in allocating and utilizing tax incentives provided 
pursuant to the Gulf Opportunity Zone Act of 2005 and 
this Act. 
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