WASHINGTON - The Treasury Department should promptly clarify that unused Gulf Opportunity Zone low-income housing tax credits can be recaptured by states and reallocated to other "shovel-ready" projects, and that those tax credits can be exchanged for cash grants, two Louisiana housing finance agencies told federal officials.

Over $35 million of low-income housing tax credits and $200 million of community development block grant funds in projects tied to those credits are at risk if the Treasury does not act soon, Milton J. Bailey, president of the Louisiana Housing Finance Agency, told Treasury Secretary Timothy Geithner in a three-page letter he sent last month that was released this week.

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