Governor Requests Waiver from U.S. Treasury for Flood Victims

Waiver would provide relief from various requirements of the low income housing tax credit program

Madison – In a letter to the United States Department of Treasury on Thursday, Governor Jim Doyle requested relief in further response to the significant number of Wisconsin residents who were displaced from their homes by the recent flooding.

The request would provide a waiver from certain requirements of the low income housing tax credit program from the Internal Revenue Service (IRS), which would result in the expanded availability of housing for disaster victims and their families throughout the state.

“Residents have been displaced from their homes due to the disastrous weather that struck Wisconsin in recent weeks,” Governor Doyle said. “This action could provide housing relief to a large number of people who are in desperate need of additional assistance.”

Current Federal tax credit rules limit the occupancy of tax credit housing projects on the basis of income. A waiver would temporarily suspend these limitations allowing owners of low income tax credit properties to provide housing for those displaced by the recent flooding.

The IRS recently announced a temporary suspension of its limitations for projects located in the states of Indiana and Iowa.

Wisconsin has experienced record-breaking floods in recent weeks, resulting in a federal declaration of a major disaster under the authority of the Robert T. Stafford Disaster Relief and Emergency Assistance Act on June 14th.

The Wisconsin Housing and Economic Development Authority (WHEDA®) awards housing tax credits annually on a competitive basis. In exchange for receiving the tax credits, developers agree to reserve a portion of their housing units for low and moderate income households for at least 30 years. For more information on WHEDA and tax credits, browse this website.