Although affordable housing is still associated with excessivegovernment rules and regulations, the perceived risk could beoffset by potential rewards. Moreover, the federal low-incomehousing tax credit program is so widely accepted on Capitol Hillthat it is becoming the tool of choice to restart apartmentconstruction along the hurricane wracked Gulf Coast.

Victoria Spielman, executive director of the Affordable HousingTax Credit Coalition, says the federal low-income housing taxcredit program has become the program of choice to rebuild housingdevastated by Hurricanes Katrina and Rita, especially in light ofpotential increased allocations of credits for Texas, Louisiana,Mississippi, Alabama and Florida.

Under federal law, each state can authorize $1.95 per capita inlow-income housing tax credits each year. Under pendinglegislation, that amount would double in hurricane-struck statesfor at least two years.