Treasury's Ruling: More than tax credits and units

The socio-economic impact of Treasury’s ruling to exclude GO Zone Tax Credits from its Exchange Program extends beyond the sheer # of housing units and allocated tax credits. The decision affects other federal, state and private infrastructure and capital investments already made toward the development of workforce housing in such areas. Also to be considered are foregone construction and other trade jobs, job losses, losses to our business community and to the state’s tax base. Most importantly, the impact will most painfully be felt by the thousands of families in Louisiana still struggling to recover and who are still looking for an affordable, safe place to live.

The public policy implications of Treasury’s ruling is far reaching as well as it undermines the President’s pledge to help rebuild New Orleans, the Go Zone and other disaster areas. Moreover, the ruling constitutes an unjust taking of a public entitlement; denies GO Zone and other disaster states equal access to public funds under the American Recovery and Reinvestment Act; and denies the return of displaced residents to their homes. If allowed to stand, Treasury’s ruling would produce not just a roadblock to Louisiana’s recovery efforts, but in fact would be another man-made disaster that will prevent the housing and economic resurgence of similarly situated states.

To my colleagues in other Gulf and disaster states I would ask—what’s it costing you?