Hearings
The most noteworthy housing-related news this week pertains to Hurricane Katrina hearings in the Housing Financial Services Subcommittee on Housing and Community Opportunity. The Subcommittee held two hearings on the subject, “Housing Options in the Aftermath of Hurricanes Katrina and Rita.” HUD declined to send a witness to the first hearing, which made the second necessary. David E. Garratt, Acting Director, Recovery Division, FEMA, Department of Homeland Security was the only witness at the first hearing. His testimony is available at:
https://financialservices.house.gov/hearings.asp?formmode=detail&hearing=433.
After receiving considerable negative publicity for dodging the Subcommittee’s invitation, HUD did send two witnesses to a subsequent hearing. Brian D. Montgomery, Assistant Secretary, Housing/Federal Housing Commissioner; and Orlando J. Cabrera, Assistant Secretary, Public and Indian Housing testified on behalf of HUD. Their written statements are available at:
https://financialservices.house.gov/hearings.asp?formmode=detail&hearing=434.
Katrina Tax Bill
Also, the House overwhelmingly passed legislation amending the Internal Revenue Code of 1986 to provide tax benefits for the Gulf Opportunity Zone and certain areas affected by Hurricanes Rita and Wilma (HR 4440). According to a summary of the bill provided by the Congressional Research Service, there are noteworthy housing provisions. For instance, HR 4440,
“Allows the issuance of mortgage revenue bonds and qualified veterans’ mortgage bonds in the GO Zone on a preferential basis and increases limits for home improvement loans to $150,000.
Allows one additional advance refunding of existing bond obligations for states in the GO Zone.
Increases amounts and allocations of the low-income tax credit for 2006-2008 in the GO Zone. Designates the GO Zone as a difficult development area for purposes of increasing such credit.”
