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HUD Allocates Disaster Recovery Funds for Unmet Housing Needs; IRS Expands Relief From LIHTC and Tax-exempt Bond Requirements to Puerto Rico

12 February 2018
 February 12, 2018
Category Industry News, News

HUD allocated $7.89 billion in Community Development Block disaster recovery (CDBG-DR) funds appropriated by Congress through a supplemental spending bill in 2017. The purpose of the CDBG-RD funds is to assist in the long-term recovery from 2017 disasters.

Allocations Under Public Law 115-56
State of Texas $5,024,215,000
State of Florida $615,922,000
Commonwealth of Puerto Rico $1,507,179,000
United States Virgin Islands $242,684,000
Total $7,390,000,000

 

Given the extent of the damage to housing in disaster-affected areas, and the very limited data at present regarding unmet infrastructure and economic revitalization needs, HUD’s allocation notice requires each grantee to primarily consider and address its unmet housing recovery needs.

In a HUD press release, Secretary Ben Carson said, “These recovery funds will help with broad based economic recovery including damaged homes. As local leaders, along with their citizens, develop their recovery plans, HUD will reduce regulatory barriers and remove any unnecessary roadblocks to speed long-term recovery.”

“We are immensely grateful that HUD is helping to support the long-term recovery underway in the U.S. Virgin Islands,” said US Virgin Islands Governor Mapp. “We are developing a thoughtful plan to restore our housing stock and support our local business community – together we will rebuild smarter and stronger.

Puerto Rico Governor Rosselló added, “On behalf of the many thousands of survivors here in Puerto Rico, I want to express our appreciation to the Administration and HUD for recognizing the tremendous needs that remain in so many of our neighborhoods. This grant will make a huge difference in repairing damaged homes and businesses and facilitating the social and economic recovery here in the island.”

In addition to the previously appropriated CDBG-DR funds, Congress today enacted an additional $84.3 billion in emergency supplemental funding for hurricane and wildfire relief efforts, including 28 billion in CDBG funding. The funds can be used for disaster relief, long-term recovery, infrastructure restoration, housing, and economic revitalization.

Lastly, this week the IRS issued a Notice 2018-17 to expand relief from certain LIHTC and tax-exempt bond requirements to Puerto Rico, including temporary housing relief, compliance monitoring relief, and carryover allocation relief.

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