WASHINGTON Feb 6 The U.S. government is
clearing the way for people displaced by Superstorm Sandy more
than three months ago to temporarily move into low-income
housing by suspending some tax regulations on those rental
apartments and houses.
Under Internal Revenue Service regulations, housing agencies
can only rent to people with incomes below a certain amount at
projects that were financed with tax-exempt bonds. The tax
agency said on Wednesday it was suspending the income
Owners of apartment buildings would continue to receive a
special tax credit for renting to those with low incomes, even
if people displaced by Sandy with higher incomes move in, the
The low-income qualifications are effectively on pause until
Thousands of people were displaced after the storm came
ashore on the East Coast in October, and many are still
struggling to find adequate shelter while the region is in the
grip of winter.
Altogether, nine states and the District of Columbia were
declared disaster areas by President Barack Obama. New York, New
Jersey and Connecticut were the hardest hit.
Last month, U.S. government-backed housing giants Fannie Mae
and Freddie Mac and the Federal Housing
Administration extended by 90 days their disaster-relief
assistance for borrowers whose homes were damaged in the storm.
Meanwhile, New York Governor Andrew Cuomo plans to spend up
to $400 million of the state's federal recovery money to buy out
the owners of homes that were destroyed.