I
118TH CONGRESS
1ST SESSION H. R. 3238
To amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 11, 2023
Mr. L AHOOD (for himself, Ms. D ELBENE, Mr. W ENSTRUP, Mr. B EYER, Ms.
TENNEY, Mr. P ANETTA, Mr. B UCHANAN, Mr. B LUMENAUER, Mr. K ELLY of Pennsylvania, Mr. P ASCRELL, Mr. S CHWEIKERT, Mr. D AVIS of Illinois, Mr. F ERGUSON, Ms. S A´NCHEZ, Mr. S MUCKER, Mr. H IGGINS of New York, Mrs. M ILLER of West Virginia, Ms. S EWELL, Mr. K USTOFF, Ms.
CHU, Mr. F ITZPATRICK, Ms. M OORE of Wisconsin, Mr. M OORE of Utah, Mr. KILDEE, Ms. V AN DUYNE, Mr. E VANS, Mr. F EENSTRA, Mr. S CHNEI- DER, Mr. C AREY, Mr. C LEAVER, Mr. E MMER, Mrs. B EATTY, Mr.
MCHENRY, Mr. T ORRES of New York, Mr. R OSE, Ms. B LUNT ROCH- ESTER, Mr. F LEISCHMANN, Mr. M ORELLE, Mr. B ALDERSON, Ms. C RAIG, Mr. B ERGMAN, Mr. P ETERS, Mr. H UDSON, Mr. G OMEZ, Mr.
MOOLENAAR, Mr. C OHEN, Mr. L AWLER, Mr. K ILMER, Mr. L AMALFA, Mrs. L EE of Nevada, Mr. S TAUBER, Ms. P EREZ, Mr. M OLINARO, Mr.
PHILLIPS, Mr. F INSTAD, Mr. K HANNA, Mr. G ARBARINO, Ms. D EAN of Pennsylvania, Mr. J OYCE of Ohio, Ms. T ITUS, Mrs. H ARSHBARGER, Ms.
MANNING, Mr. W ITTMAN, Mr. Q UIGLEY, Mrs. K IM of California, and Mr.
LATURNER) introduced the following bill; which was referred to the Com- mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to reform
the low-income housing credit, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 21:50 May 23, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3238.IH H3238kjohnson on DSK79L0C42PROD with BILLS 2 •HR 3238 IH
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 1
(a) S HORT TITLE.—This Act may be cited as the 2
‘‘Affordable Housing Credit Improvement Act of 2023’’. 3 (b) TABLE OF CONTENTS.—The table of contents for 4
this Act is as follows: 5
Sec. 1. Short title; table of contents.
TITLE I—REFORM OF STATE ALLOCATION FORMULAS
Sec. 101. Increases in State allocations.
TITLE II—REFORMS RELATING TO TENANT ELIGIBILITY
Sec. 201. Average income test applicability to exempt facility bonds.
Sec. 202. Codification of rules relating to increased tenant income.
Sec. 203. Modification of student occupancy rules.
Sec. 204. Tenant voucher payments taken into account as rent for certain pur- poses.
Sec. 205. Requirement that low-income housing credit-supported housing pro- tect victims of domestic abuse.
Sec. 206. Clarification of general public use requirement relating to veterans, etc.
TITLE III—RULES RELATING TO CREDIT ELIGIBILITY AND
DETERMINATION
Sec. 301. Reconstruction or replacement period after casualty loss.
Sec. 302. Modification of previous ownership rules; limitation on acquisition basis.
Sec. 303. Certain relocation costs taken into account as rehabilitation expendi- tures.
Sec. 304. Repeal of qualified census tract population cap.
Sec. 305. Determination of community revitalization plan to be made by hous- ing credit agency.
Sec. 306. Prohibition of local approval and contribution requirements.
Sec. 307. Increase in credit for certain projects designated to serve extremely low-income households.
Sec. 308. Increase in credit for bond-financed projects designated by State agency.
Sec. 309. Elimination of basis reduction for low-income housing properties en- ergy efficient commercial building deduction.
Sec. 310. Restriction of planned foreclosures.
Sec. 311. Increase of population cap for difficult development areas.
Sec. 312. Increased cost oversight and accountability.
Sec. 313. Tax-exempt bond financing requirement.
TITLE IV—REFORMS RELATING TO NATIVE AMERICAN
ASSISTANCE
Sec. 401. Selection criteria under qualified allocation plans.
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Sec. 402. Inclusion of Indian areas as difficult development areas for purposes of certain buildings.
TITLE V—REFORMS RELATING TO RURAL ASSISTANCE
Sec. 501. Inclusion of rural areas as difficult development areas.
Sec. 502. Uniform income eligibility for rural projects.
TITLE VI—EXEMPT FACILITY BONDS
Sec. 601. Revision and clarification of the treatment of refunding issues.
TITLE VII—AFFORDABLE HOUSING TAX CREDIT
Sec. 701. Affordable housing tax credit.
TITLE VIII—DATA AND TRANSPARENCY
Sec. 801. Sense of Congress.
TITLE I—REFORM OF STATE 1
ALLOCATION FORMULAS 2
SEC. 101. INCREASES IN STATE ALLOCATIONS. 3
(a) IN GENERAL.—Clause (ii) of section 42(h)(3)(C) 4
of the Internal Revenue Code is amended— 5
(1) in subclause (I), by striking ‘‘$1.75’’ and 6
inserting ‘‘the per capita amount’’, and 7
(2) in subclause (II), by striking ‘‘$2,000,000’’ 8
and inserting ‘‘the minimum amount’’. 9
(b) PER CAPITA AMOUNT; MINIMUM AMOUNT.—Sec-10
tion 42(h)(3) of the Internal Revenue Code of 1986 is 11 amended by striking subparagraphs (H) and (I) and in-12 serting the following: 13
‘‘(H) PER CAPITA AMOUNT .—For purposes 14
of subparagraph (C)(ii)(I), the per capita 15
amount shall be determined as follows: 16
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‘‘(i) C ALENDAR YEAR 2023 .—For cal-1
endar year, 2023, the per capita amount is 2
$3.90. 3
‘‘(ii) C ALENDAR YEAR 2024 .—For cal-4
endar year 2024, the per capita amount is 5
the product of— 6
‘‘(I) 1.25, and 7
‘‘(II) the dollar amount under 8
clause (i) increased by an amount 9
equal to— 10
‘‘(aa) such dollar amount, 11
multiplied by 12
‘‘(bb) the cost-of-living ad-13
justment determined under sec-14
tion 1(f)(3) for such calendar 15
year, determined by substituting 16
‘calendar year 2022’ for ‘cal-17
endar year 2016’ in subpara-18
graph (A)(ii) thereof. 19
If the amount determined after appli-20
cation of the preceding sentence is not 21
a multiple of $5,000, such amount 22
shall be rounded to the next lowest 23
multiple of $5,000. 24
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‘‘(iii) C ALENDAR YEARS AFTER 1
2024.—In the case of any calendar year 2
after 2024, the per capita amount is the 3
dollar amount determined under clause (ii) 4
increased by an amount equal to— 5
‘‘(I) such dollar amount, multi-6
plied by 7
‘‘(II) the cost-of-living adjust-8
ment determined under section 1(f)(3) 9
for such calendar year, determined by 10
substituting ‘calendar year 2023’ for 11
‘calendar year 2016’ in subparagraph 12
(A)(ii) thereof. 13
Any amount increased under the preceding 14
sentence which is not a multiple of 5 cents 15
shall be rounded to the next lowest mul-16
tiple of 5 cents. 17
‘‘(I) M INIMUM AMOUNT .—For purposes of 18
subparagraph (C)(ii)(II), the minimum amount 19
shall be determined as follows: 20
‘‘(i) C ALENDAR YEAR 2023 .—For cal-21
endar year, 2023, the minimum amount is 22
$4,495,000. 23
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‘‘(ii) C ALENDAR YEAR 2024 .—For cal-1
endar year 2024, the minimum amount is 2
the product of— 3
‘‘(I) 1.25, and 4
‘‘(II) the dollar amount under 5
clause (i) increased by an amount 6
equal to— 7
‘‘(aa) such dollar amount, 8
multiplied by 9
‘‘(bb) the cost-of-living ad-10
justment determined under sec-11
tion 1(f)(3) for such calendar 12
year, determined by substituting 13
‘calendar year 2022’ for ‘cal-14
endar year 2016’ in subpara-15
graph (A)(ii) thereof. 16
If the amount determined after appli-17
cation of the preceding sentence is not 18
a multiple of 5 cents, such amount 19
shall be rounded to the next lowest 20
multiple of 5 cents. 21
‘‘(iii) C ALENDAR YEARS AFTER 22
2024.—In the case of any calendar year 23
after 2024, the minimum amount is the 24
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dollar amount determined under clause (ii) 1
increased by an amount equal to— 2
‘‘(I) such dollar amount, multi-3
plied by 4
‘‘(II) the cost-of-living adjust-5
ment determined under section 1(f)(3) 6
for such calendar year, determined by 7
substituting ‘calendar year 2023’ for 8
‘calendar year 2016’ in subparagraph 9
(A)(ii) thereof. 10
Any amount increased under the preceding 11
sentence which is not a multiple of $5,000 12
shall be rounded to the next lowest mul-13
tiple of $5,000.’’. 14
(c) E FFECTIVE DATE.—The amendments made by 15
this section shall apply to calendar years beginning after 16 December 31, 2022. 17
TITLE II—REFORMS RELATING 18
TO TENANT ELIGIBILITY 19
SEC. 201. AVERAGE INCOME TEST APPLICABILITY TO EX-20
EMPT FACILITY BONDS. 21
(a) I N GENERAL.—Paragraph (1) of section 142(d) 22
of the Internal Revenue Code of 1986 is amended— 23
(1) by striking ‘‘(A) or (B)’’ and inserting ‘‘(A), 24
(B), or (C)’’, and 25
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(2) by inserting after subparagraph (B) the fol-1
lowing new subparagraph: 2
‘‘(C) A VERAGE INCOME TEST .—A project 3
meets the requirements of this subparagraph if 4
it meets the minimum requirements of section 5
42(g)(1)(C).’’. 6
(b) E FFECTIVE DATE.—The amendments made by 7
this section shall apply to elections made under section 8 142(d)(1) of the Internal Revenue Code of 1986 after 9
March 23, 2018. 10
SEC. 202. CODIFICATION OF RULES RELATING TO IN-11
CREASED TENANT INCOME. 12
(a) IN GENERAL.—Clause (i) of section 42(g)(2)(D) 13
of the Internal Revenue Code of 1986 is amended by strik-14 ing ‘‘clauses (ii), (iii), and (iv)’’ and all that follows and 15 inserting ‘‘clauses (ii), (iii), (iv), and (vi), notwithstanding 16 an increase in the income of the occupants above the in-17 come limitation applicable under paragraph (1)— 18
‘‘(I) a low-income unit shall con-19
tinue to be treated as a low-income 20
unit if the income of such occupants 21
initially was 60 percent or less of area 22
median gross income and such unit 23
continues to be rent-restricted, and 24
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‘‘(II) a unit to which, at the time 1
of initial occupancy by such occu-2
pants, any Federal, State, or local 3
government income restriction ap-4
plied, and which subsequently becomes 5
part of a building with respect to 6
which rehabilitation expenditures are 7
taken into account under subsection 8
(e), shall be treated as a low-income 9
unit if the income of such occupants 10
initially was 60 percent or less of area 11
median gross income and does not ex-12
ceed 120 percent of area median gross 13
income as of the date of acquisition of 14
the property by the taxpayer.’’. 15
(b) E XCEPTION.—Subparagraph (D) of section 16
42(g)(2) of the Internal Revenue Code of 1986, as amend-17 ed by this Act, is further amended by adding at the end 18 the following new clause: 19
‘‘(vi) E XCEPTION TO RULE RELATING 20
TO INCREASED TENANT INCOME .—In the 21
case of an occupant of a low-income unit 22
who initially qualified to occupy such unit 23
by reason of paragraph (1)(C) with an in-24
come in excess of 60 percent of area me-25
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dian gross income but not in excess of 80 1
percent of area median gross income, 2
clause (i) shall be applied for substituting 3
‘80 percent’ for ‘60 percent’ each place it 4
appears.’’. 5
(c) E FFECTIVE DATE.—The amendments made by 6
this section shall apply to taxable years beginning after 7 December 31, 2022. 8
SEC. 203. MODIFICATION OF STUDENT OCCUPANCY RULES. 9
(a) I N GENERAL.—Subparagraph (D) of section 10
42(i)(3) of the Internal Revenue Code of 1986 is amended 11 to read as follows: 12
‘‘(D) RULES RELATING TO STUDENTS .— 13
‘‘(i) I N GENERAL .—A unit occupied 14
solely by individuals who— 15
‘‘(I) have not attained age 24, 16
and 17
‘‘(II) are enrolled in a full-time 18
course of study at an institution of 19
higher education (as defined in section 20
3304(f)), 21
shall not be treated as a low-income unit. 22
‘‘(ii) E XCEPTION FOR CERTAIN FED -23
ERAL PROGRAMS .—In the case of a feder-24
ally-assisted building (as defined in sub-25
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section (d)(6)(C)(i)), clause (i) shall not 1
apply to a unit all of the occupants of 2
which meet all applicable requirements 3
under the housing program described in 4
such subsection through which the building 5
is assisted, financed, or operated. 6
‘‘(iii) O THER EXCEPTIONS .—An indi-7
vidual shall not be treated as described in 8
clause (i) if the individual meets the in-9
come limitation applicable under subsection 10
(g)(1) to the project of which the building 11
is a part and— 12
‘‘(I) is married, 13
‘‘(II) is a person with disabilities 14
(as defined in section 3(b)(3)(E) of 15
the United States Housing Act of 16
1937), 17
‘‘(III) is a veteran (as defined in 18
section 101(2) of title 38, United 19
States Code), 20
‘‘(IV) has 1 or more qualifying 21
children (as defined in section 22
152(c)), 23
‘‘(V) is or has been a victim or 24
threatened victim of domestic violence, 25
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dating violence, sexual assault, or 1
stalking (as defined in section 40002 2
of the Violence Against Women Act of 3
1994), 4
‘‘(VI) is or has been a victim of 5
any form of human trafficking, or 6
‘‘(VII) is, or was prior to attain-7
ing the age of majority— 8
‘‘(aa) an emancipated minor 9
or in legal guardianship as deter-10
mined by a court of competent 11
jurisdiction in the individual’s 12
State of legal residence, 13
‘‘(bb) under the care and 14
placement responsibility of the 15
State agency responsible for ad-16
ministering a plan under part B 17
or part E of title IV of the Social 18
Security Act, or 19
‘‘(cc) an unaccompanied 20
youth (within the meaning of sec-21
tion 725(6) of the McKinney- 22
Vento Homeless Assistance Act 23
(42 U.S.C. 11434a(6))) or a 24
homeless child or youth (within 25
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the meaning of section 725(2) of 1
such Act (42 U.S.C. 2
11434a(2))). 3
For purposes of subclause (VI), an in-4
dividual is or has been a victim of 5
human trafficking if such individual 6
was subjected to an act or practice de-7
scribed in paragraph (11) or (12) of 8
section 103 of the Trafficking Victims 9
Protection Act of 2000.’’. 10
(b) E FFECTIVE DATE.—The amendment made by 11
this section shall apply to taxable years beginning after 12 December 31, 2023. 13
SEC. 204. TENANT VOUCHER PAYMENTS TAKEN INTO AC-14
COUNT AS RENT FOR CERTAIN PURPOSES. 15
(a) I N GENERAL.—Subparagraph (B) of section 16
42(g)(2) of the Internal Revenue Code of 1986 is amended 17 by adding at the end the following new sentence: ‘‘In the 18 case of a project with respect to which the taxpayer elects 19 the requirements of subparagraph (C) of paragraph (1), 20 or the portion of a project to which subsection (d)(5)(C) 21 applies, clause (i) shall not apply with respect to any ten-22 ant-based assistance (as defined in section 8(f)(7) of the 23 United States Housing Act of 1937 (42 U.S.C. 24
1437f(f)(7))).’’. 25
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(b) E FFECTIVE DATE.—The amendments made by 1
this section shall apply to rent paid in taxable years begin-2 ning after December 31, 2023. 3
SEC. 205. REQUIREMENT THAT LOW-INCOME HOUSING 4
CREDIT-SUPPORTED HOUSING PROTECT VIC-5
TIMS OF DOMESTIC ABUSE. 6
(a) I N GENERAL.—Subparagraph (B) of section 7
42(h)(6) of the Internal Revenue Code of 1986 is amended 8 by striking ‘‘and’’ at the end of clause (v), by striking the 9 period at the end of clause (vi) and inserting ‘‘, and’’, and 10 by adding at the end the following new clause: 11
‘‘(vii) which— 12
‘‘(I) prohibits the refusal to lease 13
to, or termination of a lease by, a per-14
son solely on the basis of criminal ac-15
tivity directly relating to domestic vio-16
lence, dating violence, sexual assault, 17
or stalking that is engaged in by a 18
member of the household of the ten-19
ant or any guest or other person 20
under the control of the tenant, if the 21
tenant or an affiliated individual of 22
the tenant is the victim or threatened 23
victim of such domestic violence, dat-24
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ing violence, sexual assault, or stalk-1
ing, and 2
‘‘(II) allows prospective, present, 3
or former occupants of the building 4
the right to enforce in any State court 5
the prohibition of subclause (I).’’. 6
(b) BIFURCATION.— 7
(1) IN GENERAL .—Subparagraph (B) of section 8
42(h)(6) of the Internal Revenue Code of 1986, as 9
amended by subsection (a), is further amended by 10
adding at the end the following new flush sentence: 11
‘‘For purposes of clause (vii)(I), rules similar to 12
the rules of section 41411(b)(3)(B) of the Vio-13
lence Against Women Act of 1994 shall apply 14
with respect to the owner or manager of a 15
building.’’. 16
(2) E FFECT OF BIFURCATION .—Paragraph (2) 17
of section 42(g) of such Code is amended by adding 18
at the end the following new subparagraph: 19
‘‘(F) T REATMENT OF BIFURCATION IN 20
CASES OF DOMESTIC VIOLENCE .—In any case 21
in which— 22
‘‘(i) an occupant is evicted or removed 23
from a low-income unit because such occu-24
pant has engaged in criminal activity di-25
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rectly relating to domestic violence, dating 1
violence, sexual assault, or stalking against 2
an affiliated individual or other individual 3
on the basis of criminal activity directly re-4
lating to domestic violence, dating violence, 5
sexual assault, or stalking, and 6
‘‘(ii) the lease on such unit is bifur-7
cated as provided in the last sentence of 8
subsection (h)(6)(B), 9
then the remaining occupants of such low-in-10
come unit shall not be treated as a new tenant 11
for purposes of this section.’’. 12
(c) C LARIFICATION OF GENERAL PUBLIC USE RE-13
QUIREMENT.—Paragraph (9) of section 42(g) of the Inter-14 nal Revenue Code of 1986 is amended by striking ‘‘or’’ 15 at the end of subparagraph (B), by striking the period 16 at the end of subparagraph (C) and inserting ‘‘, or’’, and 17 by adding at the end the following new subparagraph: 18 ‘‘(D) who are victims or threatened victims 19
of criminal activity directly relating to domestic 20
violence, dating violence, sexual assault, or 21
stalking.’’. 22
(d) EFFECTIVE DATES.— 23
(1) I N GENERAL .—Except as provided in para-24
graph (2), the amendments made by this section 25
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shall apply to agreements executed or modified on or 1
after the date that is 30 days after the date of the 2
enactment of this Act. 3
(2) P UBLIC USE REQUIREMENT .—The amend-4
ments made by subsection (c) shall apply to build-5
ings placed in service before, on, or after the date 6
of the enactment of this Act. 7
SEC. 206. CLARIFICATION OF GENERAL PUBLIC USE RE-8
QUIREMENT RELATING TO VETERANS, ETC. 9
(a) IN GENERAL.—Paragraph (9) of section 42(g) of 10
the Internal Revenue Code of 1986, as amended by section 11 205, is further amended by adding at the end the following 12 flush language: 13
‘‘Any veteran of the Armed Forces shall be treated 14
as a member of a specified group under a Federal 15
program for purposes of subparagraph (B).’’. 16
(b) QUALIFIED RESIDENTIAL RENTAL PROJECTS.— 17
Paragraph (2) of section 142(d) of the Internal Revenue 18 Code of 1986 is amended by adding at the end the fol-19 lowing new subparagraph: 20
‘‘(F) C LARIFICATION OF GENERAL PUBLIC 21
USE REQUIREMENT .—A unit shall not fail to 22
meet the general public use requirement solely 23
because of occupancy restrictions or pref-24
erences, if such restrictions or preferences meet 25
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the general public use requirement of section 1
42.’’. 2
(c) EFFECTIVE DATES.— 3
(1) I N GENERAL .—The amendment made by 4
subsection (a) shall apply to buildings placed in serv-5 ice before, on, or after the date of the enactment of 6 this Act. 7
(2) Q UALIFIED RESIDENTIAL RENTAL 8
PROJECTS.—The amendment made by subsection (b) 9
shall apply to bonds issued before, on, or after the 10 date of the enactment of this Act. 11
TITLE III—RULES RELATING TO 12
CREDIT ELIGIBILITY AND DE-13
TERMINATION 14
SEC. 301. RECONSTRUCTION OR REPLACEMENT PERIOD 15
AFTER CASUALTY LOSS. 16
(a) NO RECAPTURE FOLLOWING CASUALTY LOSS.— 17
Subparagraph (E) of section 42(j)(4) of the Internal Rev-18 enue Code of 1986 is amended to read as follows: 19
‘‘(E) N O RECAPTURE BY REASON OF CAS -20
UALTY LOSS .— 21
‘‘(i) I N GENERAL .—The increase in 22
tax under this subsection shall not apply to 23
a reduction in qualified basis by reason of 24
a casualty loss to the extent such loss is 25
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restored by reconstruction or replacement 1
within a reasonable period established by 2
the applicable housing credit agency, not to 3
exceed 25 months from the date on which 4
the qualified casualty loss arises. 5
‘‘(ii) QUALIFIED CASUALTY LOSSES .— 6
In the case of a qualified casualty loss, the 7
period described in clause (i) may be ex-8
tended, but not in excess of 12 months, if 9
the applicable housing credit agency deter-10
mines the qualified casualty arose by rea-11
son of an event which was not discrete to 12
the building and which made a reconstruc-13
tion or replacement within 25 months im-14
practical. In the event the applicable hous-15
ing credit agency determines a period in 16
excess of 25 months is necessary for such 17
reconstruction or replacement, the compli-18
ance period shall be increased by any such 19
additional time. 20
‘‘(iii) A PPLICATION.—The determina-21
tion under paragraph (1) shall not be 22
made with respect to a property the basis 23
of which is affected by a qualified casualty 24
loss until the period described in clause (i) 25
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(as modified by clause (ii), if applicable) 1
with respect to such property has expired. 2
‘‘(iv) Q UALIFIED CASUALTY LOSS .— 3
For purposes of this subparagraph, the 4
term ‘qualified casualty loss’ means a cas-5
ualty loss that is the result of a Federally 6
declared disaster (as defined in section 7
165(i)(5)).’’. 8
(b) Q UALIFIED BASIS FOLLOWING CASUALTY 9
LOSS.—Paragraph (1) of section 42(c) of the Internal 10 Revenue Code of 1986 is amended by adding at the end 11 the following new subparagraph: 12
‘‘(F) Q UALIFIED BASIS FOLLOWING CAS -13
UALTY LOSS .—If a casualty causes the qualified 14
basis of a building in any year to be less than 15
the qualified basis in the immediately preceding 16
year then, in the year of such casualty and each 17
succeeding year until such building or the units 18
affected by the casualty are reconstructed or re-19
placed (but only through the last year of the pe-20
riod permitted for reconstruction or replace-21
ment under subsection (j)(4)(E))— 22
‘‘(i) the qualified basis of such build-23
ing shall be equal to the qualified basis of 24
such building as of the last day of the year 25
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preceding the year in which such casualty 1
occurred, 2
‘‘(ii) if such building is not recon-3
structed or replaced by the expiration of 4
the applicable period for such reconstruc-5
tion or replacement under subsection 6
(j)(4), then the recapture amount provided 7
for in subsection (j)(1) shall include the 8
amount of any credit claimed under this 9
section by reason of the application of 10
clause (i), and 11
‘‘(iii) a building which was a qualified 12
low-income building as of the last day of 13
the year preceding the year in which such 14
casualty occurred shall not cease to be a 15
qualified low-income building solely be-16
cause of such casualty.’’. 17
(c) E FFECTIVE DATE.—The amendments made by 18
this section shall apply to casualties occurring after the 19 date which is 25 months before the date of the enactment 20 of this Act. 21
SEC. 302. MODIFICATION OF PREVIOUS OWNERSHIP RULES; 22
LIMITATION ON ACQUISITION BASIS. 23
(a) IN GENERAL.—Clause (ii) of section 42(d)(2)(B) 24
of the Internal Revenue Code of 1986 is amended by in-25 VerDate Sep 11 2014 21:50 May 23, 2023 Jkt 039200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H3238.IH H3238kjohnson on DSK79L0C42PROD with BILLS 22 •HR 3238 IH
serting ‘‘, or the taxpayer elects the application of sub-1 paragraph (C)(ii)’’ after ‘‘service’’. 2
(b) L IMITATION ON ACQUISITION BASIS.—Subpara-3
graph (C) of section 42(d)(2) of the Internal Revenue 4 Code of 1986 is amended— 5
(1) by striking ‘‘For purposes of subparagraph 6
(A), the adjusted basis’’ and inserting ‘‘For pur-7
poses of subparagraph (A)— 8
‘‘(i) I N GENERAL .—The adjusted 9
basis’’, and 10
(2) by adding at the end the following new 11
clauses: 12
‘‘(ii) B UILDINGS IN SERVICE WITHIN 13
PREVIOUS 10 YEARS .—If the period be-14
tween the date of acquisition of the build-15
ing by the taxpayer and the date the build-16
ing was last placed in service is less than 17
10 years, the taxpayer’s basis attributable 18
to the acquisition of the building which is 19
taken into account in determining the ad-20
justed basis shall not exceed the sum of— 21
‘‘(I) the lowest amount paid for 22
acquisition of the building by any per-23
son during the 10 years preceding the 24
date of the acquisition of the building 25
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by the taxpayer, adjusted as provided 1
in clause (iii), and 2
‘‘(II) the value of any capital im-3
provements made by the person who 4
sells the building to the taxpayer 5
which are reflected in such seller’s 6
basis. 7
‘‘(iii) A DJUSTMENT.—With respect to 8
a basis determination made in any taxable 9
year, the amount described in clause (ii)(I) 10
shall be increased by an amount equal to— 11
‘‘(I) such amount, multiplied by 12
‘‘(II) a cost-of-living adjustment, 13
determined in the same manner as 14
under section 1(f)(3) for the calendar 15
year in which the taxable year begins 16
by taking into account the acquisition 17
year in lieu of calendar year 1992. 18
For purposes of the preceding sentence, 19
the acquisition year is the calendar year in 20
which the lowest amount referenced in 21
clause (ii)(I) was paid for the acquisition 22
of the building.’’. 23
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(c) C ONFORMING AMENDMENTS.—Clause (i) of sec-1
tion 42(d)(2)(D) of the Internal Revenue Code of 1986 2 is amended— 3
(1) by striking ‘‘ FOR SUBPARAGRAPH (B) ’’ in 4
the heading, and 5
(2) by striking ‘‘subparagraph (B)(ii)’’ in the 6
matter preceding subclause (I) and inserting ‘‘sub-7
paragraph (B)(ii) or (C)(ii)’’. 8
(d) MODIFICATION OF PLACED IN SERVICE RULE.— 9
Clause (iii) of section 42(d)(2)(B) of the Internal Revenue 10 Code of 1986 is amended to read as follows: 11
‘‘(iii) the building was not owned by 12
the taxpayer or by any person related (as 13
of the date of acquisition by the taxpayer) 14
to the taxpayer at any time during the 5- 15
year period ending on the date of acquisi-16
tion by the taxpayer, and’’. 17
(e) E FFECTIVE DATE.—The amendments made by 18
this section shall apply to buildings placed in service after 19 December 31, 2022. 20
SEC. 303. CERTAIN RELOCATION COSTS TAKEN INTO AC-21
COUNT AS REHABILITATION EXPENDITURES. 22
(a) IN GENERAL.—Paragraph (2) of section 42(e) of 23
the Internal Revenue Code of 1986 is amended by adding 24 at the end the following new subparagraph: 25
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‘‘(C) C ERTAIN RELOCATION COSTS .—In 1
the case of a rehabilitation of a building to 2
which section 280B does not apply, costs relat-3
ing to the relocation of occupants, including— 4
‘‘(i) amounts paid to occupants, 5
‘‘(ii) amounts paid to third parties for 6
services relating to such relocation, and 7
‘‘(iii) amounts paid for temporary 8
housing for occupants, 9
shall be treated as chargeable to capital account 10
and taken into account as rehabilitation ex-11
penditures.’’. 12
(b) E FFECTIVE DATE.—The amendment made by 13
this section shall apply to expenditures paid or incurred 14 after December 31, 2022. 15
(c) N O INFERENCE.—Nothing in the amendment 16
made by this section shall be construed to create any infer-17 ence with respect to the treatment of relocation costs paid 18 or incurred before December 31, 2022. 19
SEC. 304. REPEAL OF QUALIFIED CENSUS TRACT POPU-20
LATION CAP. 21
(a) IN GENERAL.—Clause (ii) of section 42(d)(5)(B) 22
of the Internal Revenue Code of 1986 is amended— 23
(1) by striking subclauses (II) and (III), and 24
(2) by striking ‘‘Q UALIFIED CENSUS TRACT .— 25
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‘‘(I) IN GENERAL .—The term’’, 1
and inserting ‘‘Q UALIFIED CENSUS TRACT .—The 2
term’’. 3
(b) E FFECTIVE DATE.—The amendments made by 4
this section shall apply to designations of qualified census 5 tracts under section 42(d)(5)(B)(ii) of the Internal Rev-6 enue Code of 1986 after December 31, 2023. 7
SEC. 305. DETERMINATION OF COMMUNITY REVITALIZA-8
TION PLAN TO BE MADE BY HOUSING CREDIT 9
AGENCY. 10
(a) I N GENERAL.—Subclause (III) of section 11
42(m)(1)(B)(ii) of the Internal Revenue Code of 1986 is 12 amended by inserting ‘‘, as determined by the housing 13 credit agency according to criteria established by such 14 agency,’’ after ‘‘(d)(5)(B)(ii)) and’’. 15
(b) C RITERIA.—Paragraph (1) of section 42(m) of 16
the Internal Revenue Code of 1986 is amended by adding 17 at the end the following new subparagraph: 18
‘‘(E) C RITERIA FOR DETERMINATION RE -19
LATING TO CONCERTED COMMUNITY REVITAL -20
IZATION PLAN .—For purposes of subparagraph 21
(B)(ii)(III), the criteria which shall be estab-22
lished by a housing credit agency for deter-23
mining whether the development of a project 24
contributes to a concerted community develop-25
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ment plan shall take into account any factors 1
the agency deems appropriate, including the ex-2
tent to which the proposed plan— 3
‘‘(i) is geographically specific, 4
‘‘(ii) outlines a clear plan for imple-5
mentation and goals for outcomes, 6
‘‘(iii) includes a strategy for applying 7
for or obtaining commitments of public or 8
private investment (or both) in nonhousing 9
infrastructure, amenities, or services, and 10
‘‘(iv) demonstrates the need for com-11
munity revitalization.’’. 12
(c) E FFECTIVE DATE.—The amendments made by 13
this section shall apply to allocations of housing credit dol-14 lar amounts made under qualified allocation plans (as de-15 fined in section 42(m)(1)(B) of the Internal Revenue Code 16 of 1986) adopted after December 31, 2023. 17
SEC. 306. PROHIBITION OF LOCAL APPROVAL AND CON-18
TRIBUTION REQUIREMENTS. 19
(a) I N GENERAL.—Paragraph (1) of section 42(m) 20
of the Internal Revenue Code of 1986, as amended by sec-21 tion 305, is further amended— 22
(1) by striking clause (ii) of subparagraph (A) 23
and by redesignating clauses (iii) and (iv) thereof as 24 clauses (ii) and (iii), and 25
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(2) by adding at the end the following new sub-1
paragraph: 2
‘‘(F) L OCAL APPROVAL OR CONTRIBUTION 3
NOT TAKEN INTO ACCOUNT .—The selection cri-4
teria under a qualified allocation plan shall not 5
include consideration of— 6
‘‘(i) any support or opposition with re-7
spect to the project from local or elected 8
officials, or 9
‘‘(ii) any local government contribu-10
tion to the project, except to the extent 11
such contribution is taken into account as 12
part of a broader consideration of the 13
project’s ability to leverage outside funding 14
sources, and is not prioritized over any 15
other source of outside funding.’’. 16
(b) E FFECTIVE DATE.—The amendments made by 17
this section shall apply to allocations of housing credit dol-18 lar amounts made under qualified allocation plans (as de-19 fined in section 42(m)(1)(B) of the Internal Revenue Code 20 of 1986) adopted after December 31, 2023. 21
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SEC. 307. INCREASE IN CREDIT FOR CERTAIN PROJECTS 1
DESIGNATED TO SERVE EXTREMELY LOW-IN-2
COME HOUSEHOLDS. 3
(a) IN GENERAL.—Paragraph (5) of section 42(d) of 4
the Internal Revenue Code of 1986 is amended by adding 5 at the end the following new subparagraph: 6
‘‘(C) I NCREASE IN CREDIT FOR PROJECTS 7
DESIGNATED TO SERVE EXTREMELY LOW -IN-8
COME HOUSEHOLDS .—In the case of any build-9
ing— 10
‘‘(i) 20 percent or more of the resi-11
dential units (determined as if the imputed 12
income limitation applicable to such units 13
were 30 percent of area median gross in-14
come) in which are designated by the tax-15
payer for occupancy by households the ag-16
gregate household income of which does 17
not exceed the greater of— 18
‘‘(I) 30 percent of area median 19
gross income, or 20
‘‘(II) 100 percent of an amount 21
equal to the Federal poverty line 22
(within the meaning of section 23
36B(d)(3)), and 24
‘‘(ii) which is designated by the hous-25
ing credit agency as requiring the increase 26
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in credit under this subparagraph in order 1
for such building to be financially feasible 2
as part of a qualified low-income housing 3
project, 4
subparagraph (B) shall not apply to the portion 5
of such building which is comprised of such 6
units (determined in a manner similar to the 7
unit fraction under subsection (c)(1)(C)), and 8
the eligible basis of such portion of the building 9
shall be 150 percent of such basis determined 10
without regard to this subparagraph.’’. 11
(b) E FFECTIVE DATE.—The amendment made by 12
this section shall apply to buildings which receive alloca-13 tions of housing credit dollar amount after the date of en-14 actment of this Act, or in the case of buildings that are 15 described in section 42(h)(4)(B) of the Internal Revenue 16 Code of 1986, for obligations that are part of an issue 17 the issue date of which is after December 31, 2023. 18
SEC. 308. INCREASE IN CREDIT FOR BOND-FINANCED 19
PROJECTS DESIGNATED BY STATE AGENCY. 20
(a) IN GENERAL.—Clause (v) of section 42(d)(5)(B) 21
of the Internal Revenue Code of 1986 is amended by strik-22 ing the second sentence. 23
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(b) TECHNICAL AMENDMENT.—Clause (v) of section 1
42(d)(5)(B) of the Internal Revenue Code of 1986, as 2
amended by subsection (a), is further amended— 3
(1) by striking ‘‘S TATE’’ in the heading, and 4
(2) by striking ‘‘State housing credit agency’’ 5
and inserting ‘‘housing credit agency’’. 6
(c) E FFECTIVE DATE.—The amendments made by 7
this section shall apply to buildings that are described in 8 section 42(h)(4)(B) of the Internal Revenue Code of 1986, 9 taking into account only obligations that are part of an 10 issue the issue date of which is after December 31, 2023. 11 SEC. 309. ELIMINATION OF BASIS REDUCTION FOR LOW-IN-12
COME HOUSING PROPERTIES ENERGY EFFI-13
CIENT COMMERCIAL BUILDING DEDUCTION. 14
(a) E NERGY EFFICIENT COMMERCIAL BUILDINGS 15
DEDUCTION.—Subsection (e) of section 179D of the In-16
ternal Revenue Code of 1986 is amended— 17
(1) by striking ‘‘R EDUCTION.—For purposes’’ 18
and inserting ‘‘R EDUCTION.— 19
‘‘(1) IN GENERAL .—For purposes’’, and 20
(2) by adding at the end the following new 21
paragraph: 22
‘‘(2) E XCEPTION FOR AFFORDABLE HOUSING 23
PROPERTIES.—Paragraph (1) shall not apply for 24
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purposes of determining eligible basis under section 1
42.’’. 2
(b) E FFECTIVE DATE.—The amendments made by 3
this section shall apply to buildings which receive alloca-4 tions of housing credit dollar amount after the date of the 5 enactment of this Act and to buildings that are described 6 in section 42(h)(4)(B) of the Internal Revenue Code of 7 1986 taking into account only obligations that are part 8 of an issue the issue date of which is after December 31, 9 2023. 10
SEC. 310. RESTRICTION OF PLANNED FORECLOSURES. 11
(a) I N GENERAL.—Subclause (I) of section 12
42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is 13 amended to read as follows: 14
‘‘(I) on the 61st day after the 15
taxpayer (or a successor in interest) 16
provides notice to the Secretary and 17
the housing credit agency that the 18
building has been acquired by fore-19
closure (or instrument in lieu of fore-20
closure) and that the taxpayer intends 21
the termination of such period, unless, 22
before such date, the Secretary or the 23
housing credit agency determines that 24
such acquisition is part of an arrange-25
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ment with the taxpayer a purpose of 1
which is to terminate such period, 2
or’’. 3
(b) C ONFORMING AMENDMENT.—The second sen-4
tence of clause (i) of section 42(h)(6)(E) of the Internal 5 Revenue Code of 1986 is amended by striking ‘‘Subclause 6 (II)’’ and inserting ‘‘Subclauses (I) and (II)’’. 7
(c) E FFECTIVE DATE.—The amendments made by 8
this section shall apply to acquisitions by foreclosure (or 9 instrument in lieu of foreclosure) after December 31, 10 2022. 11
SEC. 311. INCREASE OF POPULATION CAP FOR DIFFICULT 12
DEVELOPMENT AREAS. 13
(a) I N GENERAL.—Subclause (II) of section 14
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 15 amended by striking ‘‘20 percent’’ and inserting ‘‘30 per-16 cent’’. 17
(b) E FFECTIVE DATE.—The amendment made by 18
this section shall apply to designations made under section 19 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 20 after December 31, 2023. 21
SEC. 312. INCREASED COST OVERSIGHT AND ACCOUNT-22
ABILITY. 23
(a) I N GENERAL.—Subparagraph (C) of section 24
42(m)(1) of the Internal Revenue Code of 1986 is amend-25 VerDate Sep 11 2014 21:50 May 23, 2023 Jkt 039200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H3238.IH H3238kjohnson on DSK79L0C42PROD with BILLS 34 •HR 3238 IH
ed by striking ‘‘and’’ at the end of clause (ix), by striking 1 the period at the end of clause (x) and inserting ‘‘, and’’, 2 and by adding at the end the following new clause: 3
‘‘(xi) the reasonableness of the devel-4
opment costs of the project.’’. 5
(b) E FFECTIVE DATE.—The amendments made by 6
this section shall apply to allocations of credits under sec-7 tion 42 of the Internal Revenue Code of 1986 made after 8 December 31, 2023. 9
SEC. 313. TAX-EXEMPT BOND FINANCING REQUIREMENT. 10
(a) I N GENERAL.—Subparagraph (B) of section 11
42(h)(4) of the Internal Revenue Code of 1986 is amended 12 by adding at the end the following new sentence: ‘‘In the 13 case of buildings financed by an obligation first taken into 14 account under section 146 in calendar years beginning 15 after the date of the enactment of the Affordable Housing 16 Credit Improvement Act of 2023, the preceding sentence 17 shall be applied by substituting ‘25 percent’ for ‘50 per-18 cent’.’’. 19
(b) E FFECTIVE DATE.—The amendment made by 20
this section shall apply to any building some portion of 21 which, or of the land on which the building is located, is 22 financed by an obligation which is described in section 23 42(h)(4)(A) of the Internal Revenue Code of 1986 and 24 VerDate Sep 11 2014 21:50 May 23, 2023 Jkt 039200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H3238.IH H3238kjohnson on DSK79L0C42PROD with BILLS 35 •HR 3238 IH
which is part of an issue the issue date of which is after 1 December 31, 2023. 2
TITLE IV—REFORMS RELATING 3
TO NATIVE AMERICAN AS-4
SISTANCE 5
SEC. 401. SELECTION CRITERIA UNDER QUALIFIED ALLO-6
CATION PLANS. 7
(a) I N GENERAL.—Subparagraph (C) of section 8
42(m)(1) of the Internal Revenue Code of 1986, as 9
amended by section 312, is further amended by striking 10 ‘‘and’’ at the end of clause (x), by striking the period at 11 the end of clause (xi) and inserting ‘‘, and’’, and by adding 12 at the end the following new clause: 13
‘‘(xii) the affordable housing needs of 14
individuals in the State who are— 15
‘‘(I) enrolled members of a tribe 16
with respect to an Indian tribal gov-17
ernment (including any agencies or in-18
strumentalities of an Indian tribal 19
government and any Alaska Native re-20
gional or village corporation, as de-21
fined in, or established pursuant to, 22
the Alaska Native Claims Settlement 23
Act (43 U.S.C. 1601 et seq.), or 24
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‘‘(II) described in section 801(9) 1
of the Native American Housing As-2
sistance and Self-Determination Act 3
of 1996 (25 U.S.C. 4221(9)).’’. 4
(b) E FFECTIVE DATE.—The amendments made by 5
this section shall apply to allocations of credits under sec-6 tion 42 of the Internal Revenue Code of 1986 made after 7 December 31, 2023. 8
SEC. 402. INCLUSION OF INDIAN AREAS AS DIFFICULT DE-9
VELOPMENT AREAS FOR PURPOSES OF CER-10
TAIN BUILDINGS. 11
(a) I N GENERAL.—Subclause (I) of section 12
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 13 amended by inserting before the period the following: ‘‘, 14 and any Indian area’’. 15
(b) I NDIAN AREA.—Clause (iii) of section 16
42(d)(5)(B) of the Internal Revenue Code of 1986 is 17
amended by redesignating subclause (II) as subclause 18 (III) and by inserting after subclause (I) the following new 19 subclause: 20
‘‘(II) I NDIAN AREA .—For pur-21
poses of subclause (I), the term ‘In-22
dian area’ means any Indian area (as 23
defined in section 4(11) of the Native 24
American Housing Assistance and 25
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Self Determination Act of 1996 (25 1
U.S.C. 4103(11))) and any housing 2
area (as defined in section 801(5) of 3
such Act (25 U.S.C. 4221(5))).’’. 4
(c) E LIGIBLE BUILDINGS.—Clause (iii) of section 5
42(d)(5)(B) of the Internal Revenue Code of 1986, as 6
amended by subsection (b), is further amended by adding 7 at the end the following new subclause: 8
‘‘(IV) SPECIAL RULE FOR BUILD -9
INGS IN INDIAN AREAS .—In the case 10
of an area which is a difficult develop-11
ment area solely because it is an In-12
dian area, a building shall not be 13
treated as located in such area unless 14
such building is assisted or financed 15
under the Native American Housing 16
Assistance and Self Determination 17
Act of 1996 (25 U.S.C. 4101 et seq.) 18
or the project sponsor is an Indian 19
tribe (as defined in section 20
45A(c)(6)), a tribally designated hous-21
ing entity (as defined in section 4(22) 22
of such Act (25 U.S.C. 4103(22))), or 23
wholly owned or controlled by such an 24
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Indian tribe or tribally designated 1
housing entity.’’. 2
(d) E FFECTIVE DATE.—The amendments made by 3
this section shall apply to buildings placed in service after 4 December 31, 2023. 5
TITLE V—REFORMS RELATING 6
TO RURAL ASSISTANCE 7
SEC. 501. INCLUSION OF RURAL AREAS AS DIFFICULT DE-8
VELOPMENT AREAS. 9
(a) I N GENERAL.—Subclause (I) of section 10
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986, as 11 amended by section 402, is further amended by inserting 12 ‘‘, any rural area’’ after ‘‘median gross income’’. 13
(b) R URAL AREA.—Clause (iii) of section 14
42(d)(5)(B) of the Internal Revenue Code of 1986, as 15 amended by section 402, is further amended by redesig-16 nating subclause (III) as subclause (IV) and by inserting 17 after subclause (II) the following new subclause: 18
‘‘(III) R URAL AREA .—For pur-19
poses of subclause (I), the term ‘rural 20
area’ means any non-metropolitan 21
area, or any rural area as defined by 22
section 520 of the Housing Act of 23
1949, which is identified by the quali-24
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fied allocation plan under subsection 1
(m)(1)(B).’’. 2
(c) E FFECTIVE DATE.—The amendments made by 3
this section shall apply to buildings placed in service after 4 December 31, 2023. 5
SEC. 502. UNIFORM INCOME ELIGIBILITY FOR RURAL 6
PROJECTS. 7
(a) IN GENERAL.—Paragraph (8) of section 42(i) of 8
the Internal Revenue Code of 1986 is amended by striking 9 the second sentence. 10
(b) E FFECTIVE DATE.—The amendment made by 11
this section shall apply to taxable years beginning after 12 December 31, 2022. 13
TITLE VI—EXEMPT FACILITY 14
BONDS 15
SEC. 601. REVISION AND CLARIFICATION OF THE TREAT-16
MENT OF REFUNDING ISSUES. 17
(a) I N GENERAL.—Subparagraph (A) of section 18
146(i)(6) of the Internal Revenue Code of 1986 is amend-19 ed to read as follows: 20
‘‘(A) I N GENERAL .—During the 12-month 21
period beginning on the date of a repayment of 22
a loan financed by an issue 95 percent or more 23
of the net proceeds of which are used to provide 24
projects described in section 142(d), if such re-25
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payment is used to provide a new loan for any 1
project described in section 142(a)(7) or for 2
any purpose described in subsection (a)(2)(A) 3
or (b) of section 143, any bond which is issued 4
to refinance such issue shall be treated as a re-5
funding issue. Any issue treated as a refunding 6
issue by reason of the preceding sentence shall 7
be so treated only to the extent the principal 8
amount of such refunding issue does not exceed 9
the principal amount of the bonds refunded.’’. 10
(b) R EMOVAL OF ONE-REFUNDING LIMIT.—Sub-11
paragraph (B) of section 146(i)(6) of the Internal Rev-12 enue Code of 1986 is amended— 13
(1) by striking ‘‘4 years’’ in clause (i) and in-14
serting ‘‘10 years’’, 15
(2) by striking ‘‘was issued’’ in clause (ii) and 16
inserting ‘‘is issued’’, 17
(3) by redesignating clauses (i) (as so amend-18
ed), (ii) (as so amended), and (iii) as subclauses (I), 19 (II), and (III), respectively, and by moving such sub-20 clauses 2 ems to the right, 21
(4) by striking ‘‘L IMITATIONS.—Subparagraph 22
(A) shall apply to only one refunding of the original 23 issue and’’ and inserting ‘‘L IMITATIONS.— 24
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‘‘(i) I N GENERAL .—Subparagraph (A) 1
shall apply to a bond’’, and 2
(5) by adding at the end the following new 3
clause: 4
‘‘(ii) S OURCE OF LOAN REPAY -5
MENT.—Subparagraph (A) shall not apply 6
to any repayment of a loan which is— 7
‘‘(I) made by a repayment of an-8
other loan, or 9
‘‘(II) financed by an issue treated 10
as a refunding issue under subpara-11
graph (A).’’. 12
(c) C ONFORMING AMENDMENT.—The heading of 13
paragraph (6) of section 146(i) of the Internal Revenue 14 Code of 1986 is amended by striking ‘‘ RESIDENTIAL 15
RENTAL PROJECT BONDS AS REFUNDING BONDS IRRE -16
SPECTIVE OF OBLIGOR ’’ and inserting ‘‘ BONDS AS RE -17 FUNDING BONDS’’. 18
(d) EFFECTIVE DATES.— 19
(1) I N GENERAL .—The amendments made by 20
subsections (a) and (c) shall apply to refunding 21
issues described in section 146(i)(6)(A) of the Inter-22 nal Revenue Code of 1986 issued on or after the 23
date of the enactment of this Act. 24
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(2) REMOVAL OF ONE -REFUNDING LIMIT .—The 1
amendments made by subsection (b) shall apply to 2
repayments of loans received after July 30, 2008. 3
TITLE VII—AFFORDABLE 4
HOUSING TAX CREDIT 5
SEC. 701. AFFORDABLE HOUSING TAX CREDIT. 6
(a) IN GENERAL.—The heading of section 42 of the 7
Internal Revenue Code of 1986 is amended by striking 8
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 9
(b) CONFORMING AMENDMENTS.— 10
(1) Subsection (a) of section 42 of the Internal 11
Revenue Code of 1986 is amended by striking ‘‘low- 12
income’’ and inserting ‘‘affordable’’. 13
(2) Paragraph (5) of section 38(b) of such Code 14
is amended by striking ‘‘low-income’’ and inserting 15
‘‘affordable’’. 16
(3) The heading of subparagraph (D) of section 17
469(i)(3) of such Code is amended by striking 18
‘‘LOW-INCOME’’ and inserting ‘‘ AFFORDABLE’’. 19
(4) The heading of subparagraph (B) of section 20
469(i)(6) of such Code is amended by striking 21
‘‘LOW-INCOME’’ and inserting ‘‘ AFFORDABLE’’. 22
(5) Paragraph (7) of section 772(a) of such 23
Code is amended by striking ‘‘low-income’’ and in-24
serting ‘‘affordable’’. 25
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(6) Paragraph (5) of section 772(d) of such 1
Code is amended by striking ‘‘low-income’’ and in-2
serting ‘‘affordable’’. 3
(c) C LERICAL AMENDMENT.—The item relating to 4
section 42 in the table of sections for subpart D of part 5 IV of subchapter A of chapter 1 of the Internal Revenue 6 Code of 1986 is amended to read as follows: 7
‘‘Sec. 42. Affordable housing credit.’’.
TITLE VIII—DATA AND 8
TRANSPARENCY 9
SEC. 801. SENSE OF CONGRESS. 10
It is the sense of Congress that in addition to expand-11 ing and strengthening the affordable housing credit 12
through the provisions in the Affordable Housing Credit 13 Improvement Act of 2023, subsequent steps should also 14 be taken to share data and identify other ways to increase 15 the transparency of the program, and the House of Rep-16 resentatives and the Senate should work together with 17 Federal agencies to identify data sources that can be 18 shared. 19
Æ
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