Extension, when enacted will help Spur Affordable Housing, Economic Development Projects in New Orleans
WASHINGTON – U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan issued a statement today following the United States Senate’s adoption of an amendment extending the Gulf Coast Opportunity Zone (GO Zone) Low Income Housing Tax Credit (LIHTC) placed in service date by two years, to December 31, 2012. Donovan and Treasury Secretary Timothy Geithner sent a letter to U.S. Senator Mary Landrieu earlier this week, expressing the Administration’s support of the amendment she sponsored and was adopted today.
"I want to applaud the United States Senate and Senator Mary Landrieu in particular, for taking this important step toward the Gulf Coast’s continued revitalization. The GO Zone tax credits have driven redevelopment efforts and stimulated local economies in these devastated areas, helping to enable families to return to their communities more quickly. GO Zone projects have created jobs and helped to return much needed affordable housing to the Gulf Coast. In New Orleans specifically, the tax credits have been particularly important to help leverage financing to restore affordable housing in the ‘Big Four’ public housing developments: St. Bernard, C.J. Pete, Lafitte, and B.W. Cooper. The Obama Administration is committed to ensuring that the tragedy of disasters and their aftermaths leads to better housing and stronger neighborhoods. We don’t want to rebuild the Big Four as they existed before, we want to rebuild them better, smarter, and safer. The extension of the GO Zone credits will provide the flexibility for new developments to serve as economic engines for communities that are more viable. We now have an opportunity, not only revitalize New Orleans, but also to use the Crescent City as a model for building more livable, accessible, and sustainable cities across the country."
The full text of Donovan and Geithner’s letter to Landrieu can be found on HUD’s website.