[Congressional Record (Bound Edition), Volume 153 (2007), Part 7]
[Extensions of Remarks]
[Page 9522]
[From the U.S. Government Publishing Office, www.gpo.gov]




        THE ``KATRINA HOUSING TAX RELIEF ACT OF 2007'' H.R. 1562

                                 ______
                                 

                           HON. EARL POMEROY

                            of north dakota

                    in the house of representatives

                        Thursday, April 19, 2007

  Mr. POMEROY. Mr. Speaker, I rise today in support of H.R. 1562, the 
``Katrina Housing Tax Relief Act of 2007,'' a bill to extend and 
enhanced credit available for building low income housing under the 
Gulf Opportunity Zone Act of 2005. For far too long the residents of 
the Gulf Coast have struggled to rebuild their homes, their lives and 
their communities. They continue to face construction delays that could 
cost them the Federal assistance promised in the 2005 legislation. I 
want to encourage my colleagues to support this legislation that will 
encourage the construction of low-income housing in the areas damaged 
by Hurricane Katrina while assuring accountability for the tax credits.
  The Gulf Opportunity Zone Act of 2005 made the affected areas 
eligible for larger credits to encourage building low-income housing. 
``GO Zone'' benefits are available if the project was built and placed 
in service before the end of calendar year 2008. H.R. 1562 recognizes 
the magnitude of the struggle to rebuild the housing stock and it 
extends the credits for two additional years--2009 and 2010.
  As the Member of Congress from North Dakota where 10 years ago the 
City of Grand Forks was destroyed by a flood and a fire in its 
aftermath, I know that government can effectively provide Americans 
help to rebuild our communities when a disaster strikes. The 50,000 
residents of Grand Forks were fortunate to have an effective Federal 
Emergency Management Association (FEMA) under the leadership of James 
Lee Witt there to assist them with the momentous task of starting from 
the ground up after the flood waters receded. Today Grand Forks is 
flourishing thanks to a well coordinated effort on the part of FEMA. 
The rebuilding effort drew upon Federal government resources such as 
Community Development Block Grants which served as a catalyst to 
encourage accelerated investments in Grand Forks.
  This bill permits Community Development Block Grants (CDBG), 
available because of prior liberalizations, to be combined with all of 
these enhanced low-income housing credits for affected areas. Under the 
Katrina Housing Tax Relief Act, qualified projects will not be treated 
as having below market Federal loans solely by reason of assistance 
provided under the CDBG. Since many of the GO Zone communities have 
lost much, if not all, of their economic base, CDBG assistance is vital 
and will not restrict an otherwise qualifying building from utilizing 
the higher 9 percent credit. This will encourage builders to deliver 
more housing to the Gulf Coast communities in desperate need of homes 
for those who want to return and help rebuild their lives.
  Finally, H.R. 1562 would require that the Government Accountability 
Office submit a report on the allocation and use of these tax 
incentives in the GO Zone to the Committee on Ways and Means and no 
later than one year after the date of enactment. I urge passage of H.R. 
1562, a common sense bill that brings much relief to the Gulf Region.

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