WASHINGTON -- United States Senator Mary L. Landrieu, D-La., today introduced legislation aimed at aiding the development of affordable housing in Louisiana. The bill would extend the place-in-service deadline for Gulf Opportunity (GO) Zone low-income housing tax credits from January 1, 2011 to January 1, 2012.

"The extension of the workforce housing tax credits will mean that more Louisianians who were displaced by the 2005 hurricanes and haven't been able to find workforce housing will be able to return home," Sen. Landrieu said. "It is essential that builders have enough time to finish their developments and still receive the tax credit so that we can continue to rebuild our communities."

"No one could have imagined the national economic crisis our nation would face when GO Zone tax credit regulations were put in place," said Paul Rainwater, Executive Director of the Louisiana Recovery Authority. "Because of these difficult times, many developers simply need more time to see their projects come to fruition. We are happy Senator Landrieu is working to extend the placed in service date so that we can protect these tax credit investments, which will create housing and jobs."

The Federal Emergency Management Agency (FEMA) estimates that thousands of Gulf Coast rental units were destroyed or heavily damaged by the 2005 hurricanes (Katrina, Rita, Wilma). In Louisiana and Mississippi alone, over 100,000 units were affected.

The Gulf Opportunity Zone Act of 2005 encouraged investment in businesses and housing in the Gulf Coast by providing a series of tax incentives, including a nine-fold increase in the workforce housing tax credits Louisiana receives. To date, almost 7,000 GO Zone low-income housing tax credit projects have not closed on their financing.

By extending the deadline, developers will be able to attract investors to their developments, have adequate time to overcome development challenges, and create more opportunities for displaced residents looking to return after the 2005 storms. This fix could help rebuild as many as 7,000 more homes in the Gulf Coast -- resulting in $715 million in local income and more than 13,500 local jobs in the region.

United States Senator David Vitter, R-La., cosponsored the bill.