II
118TH CONGRESS
1ST SESSION S. 1557
To amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes.
IN THE SENATE OF THE UNITED STATES
MAY 11, 2023
Ms. CANTWELL (for herself, Mr. Y OUNG, Mr. W YDEN, and Mrs. B LACKBURN) introduced the following bill; which was read twice and referred to the Committee on Finance
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 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) S HORT TITLE.—This Act may be cited as the 4
‘‘Affordable Housing Credit Improvement Act of 2023’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6
this Act is as follows: 7
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
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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.
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.
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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
‘‘(i) C ALENDAR YEAR 2023 .—For cal-17
endar year, 2023, the per capita amount is 18
$3.90. 19
‘‘(ii) C ALENDAR YEAR 2024 .—For cal-20
endar year 2024, the per capita amount is 21
the product of— 22
‘‘(I) 1.25, and 23
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‘‘(II) the dollar amount under 1
clause (i) increased by an amount 2
equal to— 3
‘‘(aa) such dollar amount, 4
multiplied by 5
‘‘(bb) the cost-of-living ad-6
justment determined under sec-7
tion 1(f)(3) for such calendar 8
year, determined by substituting 9
‘calendar year 2022’ for ‘cal-10
endar year 2016’ in subpara-11
graph (A)(ii) thereof. 12
If the amount determined after appli-13
cation of the preceding sentence is not 14
a multiple of $5,000, such amount 15
shall be rounded to the next lowest 16
multiple of $5,000. 17
‘‘(iii) C ALENDAR YEARS AFTER 18
2024.—In the case of any calendar year 19
after 2024, the per capita amount is the 20
dollar amount determined under clause (ii) 21
increased by an amount equal to— 22
‘‘(I) such dollar amount, multi-23
plied by 24
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‘‘(II) the cost-of-living adjust-1
ment determined under section 1(f)(3) 2
for such calendar year, determined by 3
substituting ‘calendar year 2023’ for 4
‘calendar year 2016’ in subparagraph 5
(A)(ii) thereof. 6
Any amount increased under the preceding 7
sentence which is not a multiple of 5 cents 8
shall be rounded to the next lowest mul-9
tiple of 5 cents. 10
‘‘(I) M INIMUM AMOUNT .—For purposes of 11
subparagraph (C)(ii)(II), the minimum amount 12
shall be determined as follows: 13
‘‘(i) C ALENDAR YEAR 2023 .—For cal-14
endar year, 2023, the minimum amount is 15
$4,495,000. 16
‘‘(ii) C ALENDAR YEAR 2024 .—For cal-17
endar year 2024, the minimum amount is 18
the product of— 19
‘‘(I) 1.25, and 20
‘‘(II) the dollar amount under 21
clause (i) increased by an amount 22
equal to— 23
‘‘(aa) such dollar amount, 24
multiplied by 25
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‘‘(bb) the cost-of-living ad-1
justment determined under sec-2
tion 1(f)(3) for such calendar 3
year, determined by substituting 4
‘calendar year 2022’ for ‘cal-5
endar year 2016’ in subpara-6
graph (A)(ii) thereof. 7
If the amount determined after appli-8
cation of the preceding sentence is not 9
a multiple of 5 cents, such amount 10
shall be rounded to the next lowest 11
multiple of 5 cents. 12
‘‘(iii) C ALENDAR YEARS AFTER 13
2024.—In the case of any calendar year 14
after 2024, the minimum amount is the 15
dollar amount determined under clause (ii) 16
increased by an amount equal to— 17
‘‘(I) such dollar amount, multi-18
plied by 19
‘‘(II) the cost-of-living adjust-20
ment determined under section 1(f)(3) 21
for such calendar year, determined by 22
substituting ‘calendar year 2023’ for 23
‘calendar year 2016’ in subparagraph 24
(A)(ii) thereof. 25
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Any amount increased under the preceding 1
sentence which is not a multiple of $5,000 2
shall be rounded to the next lowest mul-3
tiple of $5,000.’’. 4
(c) E FFECTIVE DATE.—The amendments made by 5
this section shall apply to calendar years beginning after 6 December 31, 2022. 7
TITLE II—REFORMS RELATING 8
TO TENANT ELIGIBILITY 9
SEC. 201. AVERAGE INCOME TEST APPLICABILITY TO EX-10
EMPT FACILITY BONDS. 11
(a) I N GENERAL.—Paragraph (1) of section 142(d) 12
of the Internal Revenue Code of 1986 is amended— 13
(1) by striking ‘‘(A) or (B)’’ and inserting ‘‘(A), 14
(B), or (C)’’, and 15
(2) by inserting after subparagraph (B) the fol-16
lowing new subparagraph: 17
‘‘(C) A VERAGE INCOME TEST .—A project 18
meets the requirements of this subparagraph if 19
it meets the minimum requirements of section 20
42(g)(1)(C).’’. 21
(b) E FFECTIVE DATE.—The amendments made by 22
this section shall apply to elections made under section 23 142(d)(1) of the Internal Revenue Code of 1986 after 24 March 23, 2018. 25
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SEC. 202. CODIFICATION OF RULES RELATING TO IN-1
CREASED TENANT INCOME. 2
(a) IN GENERAL.—Clause (i) of section 42(g)(2)(D) 3
of the Internal Revenue Code of 1986 is amended by strik-4 ing ‘‘clauses (ii), (iii), and (iv)’’ and all that follows and 5 inserting ‘‘clauses (ii), (iii), (iv), and (vi), notwithstanding 6 an increase in the income of the occupants above the in-7 come limitation applicable under paragraph (1)— 8
‘‘(I) a low-income unit shall con-9
tinue to be treated as a low-income 10
unit if the income of such occupants 11
initially was 60 percent or less of area 12
median gross income and such unit 13
continues to be rent-restricted, and 14
‘‘(II) a unit to which, at the time 15
of initial occupancy by such occu-16
pants, any Federal, State, or local 17
government income restriction ap-18
plied, and which subsequently becomes 19
part of a building with respect to 20
which rehabilitation expenditures are 21
taken into account under subsection 22
(e), shall be treated as a low-income 23
unit if the income of such occupants 24
initially was 60 percent or less of area 25
median gross income and does not ex-26
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ceed 120 percent of area median gross 1
income as of the date of acquisition of 2
the property by the taxpayer.’’. 3
(b) E XCEPTION.—Subparagraph (D) of section 4
42(g)(2) of the Internal Revenue Code of 1986, as amend-5 ed by this Act, is further amended by adding at the end 6 the following new clause: 7
‘‘(vi) E XCEPTION TO RULE RELATING 8
TO INCREASED TENANT INCOME .—In the 9
case of an occupant of a low-income unit 10
who initially qualified to occupy such unit 11
by reason of paragraph (1)(C) with an in-12
come in excess of 60 percent of area me-13
dian gross income but not in excess of 80 14
percent of area median gross income, 15
clause (i) shall be applied for substituting 16
‘80 percent’ for ‘60 percent’ each place it 17
appears.’’. 18
(c) E FFECTIVE DATE.—The amendments made by 19
this section shall apply to taxable years beginning after 20 December 31, 2022. 21
SEC. 203. MODIFICATION OF STUDENT OCCUPANCY RULES. 22
(a) I N GENERAL.—Subparagraph (D) of section 23
42(i)(3) of the Internal Revenue Code of 1986 is amended 24 to read as follows: 25
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‘‘(D) RULES RELATING TO STUDENTS .— 1
‘‘(i) I N GENERAL .—A unit occupied 2
solely by individuals who— 3
‘‘(I) have not attained age 24, 4
and 5
‘‘(II) are enrolled in a full-time 6
course of study at an institution of 7
higher education (as defined in section 8
3304(f)), 9
shall not be treated as a low-income unit. 10
‘‘(ii) E XCEPTION FOR CERTAIN FED -11
ERAL PROGRAMS .—In the case of a feder-12
ally-assisted building (as defined in sub-13
section (d)(6)(C)(i)), clause (i) shall not 14
apply to a unit all of the occupants of 15
which meet all applicable requirements 16
under the housing program described in 17
such subsection through which the building 18
is assisted, financed, or operated. 19
‘‘(iii) O THER EXCEPTIONS .—An indi-20
vidual shall not be treated as described in 21
clause (i) if the individual meets the in-22
come limitation applicable under subsection 23
(g)(1) to the project of which the building 24
is a part and— 25
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‘‘(I) is married, 1
‘‘(II) is a person with disabilities 2
(as defined in section 3(b)(3)(E) of 3
the United States Housing Act of 4
1937), 5
‘‘(III) is a veteran (as defined in 6
section 101(2) of title 38, United 7
States Code), 8
‘‘(IV) has 1 or more qualifying 9
children (as defined in section 10
152(c)), 11
‘‘(V) is or has been a victim or 12
threatened victim of domestic violence, 13
dating violence, sexual assault, or 14
stalking (as defined in section 40002 15
of the Violence Against Women Act of 16
1994), 17
‘‘(VI) is or has been a victim of 18
any form of human trafficking, or 19
‘‘(VII) is, or was prior to attain-20
ing the age of majority— 21
‘‘(aa) an emancipated minor 22
or in legal guardianship as deter-23
mined by a court of competent 24
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jurisdiction in the individual’s 1
State of legal residence, 2
‘‘(bb) under the care and 3
placement responsibility of the 4
State agency responsible for ad-5
ministering a plan under part B 6
or part E of title IV of the Social 7
Security Act, or 8
‘‘(cc) an unaccompanied 9
youth (within the meaning of sec-10
tion 725(6) of the McKinney- 11
Vento Homeless Assistance Act 12
(42 U.S.C. 11434a(6))) or a 13
homeless child or youth (within 14
the meaning of section 725(2) of 15
such Act (42 U.S.C. 16
11434a(2))). 17
For purposes of subclause (VI), an in-18
dividual is or has been a victim of 19
human trafficking if such individual 20
was subjected to an act or practice de-21
scribed in paragraph (11) or (12) of 22
section 103 of the Trafficking Victims 23
Protection Act of 2000.’’. 24
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(b) E FFECTIVE DATE.—The amendment made by 1
this section shall apply to taxable years beginning after 2 December 31, 2023. 3
SEC. 204. TENANT VOUCHER PAYMENTS TAKEN INTO AC-4
COUNT AS RENT FOR CERTAIN PURPOSES. 5
(a) I N GENERAL.—Subparagraph (B) of section 6
42(g)(2) of the Internal Revenue Code of 1986 is amended 7 by adding at the end the following new sentence: ‘‘In the 8 case of a project with respect to which the taxpayer elects 9 the requirements of subparagraph (C) of paragraph (1), 10 or the portion of a project to which subsection (d)(5)(C) 11 applies, clause (i) shall not apply with respect to any ten-12 ant-based assistance (as defined in section 8(f)(7) of the 13 United States Housing Act of 1937 (42 U.S.C. 14
1437f(f)(7))).’’. 15
(b) E FFECTIVE DATE.—The amendments made by 16
this section shall apply to rent paid in taxable years begin-17 ning after December 31, 2023. 18
SEC. 205. REQUIREMENT THAT LOW-INCOME HOUSING 19
CREDIT-SUPPORTED HOUSING PROTECT VIC-20
TIMS OF DOMESTIC ABUSE. 21
(a) I N GENERAL.—Subparagraph (B) of section 22
42(h)(6) of the Internal Revenue Code of 1986 is amended 23 by striking ‘‘and’’ at the end of clause (v), by striking the 24 VerDate Sep 11 2014 21:51 May 23, 2023 Jkt 039200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1557.IS S1557kjohnson on DSK79L0C42PROD with BILLS 14 •S 1557 IS
period at the end of clause (vi) and inserting ‘‘, and’’, and 1 by adding at the end the following new clause: 2
‘‘(vii) which— 3
‘‘(I) prohibits the refusal to lease 4
to, or termination of a lease by, a per-5
son solely on the basis of criminal ac-6
tivity directly relating to domestic vio-7
lence, dating violence, sexual assault, 8
or stalking that is engaged in by a 9
member of the household of the ten-10
ant or any guest or other person 11
under the control of the tenant, if the 12
tenant or an affiliated individual of 13
the tenant is the victim or threatened 14
victim of such domestic violence, dat-15
ing violence, sexual assault, or stalk-16
ing, and 17
‘‘(II) allows prospective, present, 18
or former occupants of the building 19
the right to enforce in any State court 20
the prohibition of subclause (I).’’. 21
(b) BIFURCATION.— 22
(1) IN GENERAL .—Subparagraph (B) of section 23
42(h)(6) of the Internal Revenue Code of 1986, as 24
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amended by subsection (a), is further amended by 1
adding at the end the following new flush sentence: 2
‘‘For purposes of clause (vii)(I), rules similar to 3
the rules of section 41411(b)(3)(B) of the Vio-4
lence Against Women Act of 1994 shall apply 5
with respect to the owner or manager of a 6
building.’’. 7
(2) E FFECT OF BIFURCATION .—Paragraph (2) 8
of section 42(g) of such Code is amended by adding 9
at the end the following new subparagraph: 10
‘‘(F) T REATMENT OF BIFURCATION IN 11
CASES OF DOMESTIC VIOLENCE .—In any case 12
in which— 13
‘‘(i) an occupant is evicted or removed 14
from a low-income unit because such occu-15
pant has engaged in criminal activity di-16
rectly relating to domestic violence, dating 17
violence, sexual assault, or stalking against 18
an affiliated individual or other individual 19
on the basis of criminal activity directly re-20
lating to domestic violence, dating violence, 21
sexual assault, or stalking, and 22
‘‘(ii) the lease on such unit is bifur-23
cated as provided in the last sentence of 24
subsection (h)(6)(B), 25
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then the remaining occupants of such low-in-1
come unit shall not be treated as a new tenant 2
for purposes of this section.’’. 3
(c) C LARIFICATION OF GENERAL PUBLIC USE RE-4
QUIREMENT.—Paragraph (9) of section 42(g) of the Inter-5 nal Revenue Code of 1986 is amended by striking ‘‘or’’ 6 at the end of subparagraph (B), by striking the period 7 at the end of subparagraph (C) and inserting ‘‘, or’’, and 8 by adding at the end the following new subparagraph: 9
‘‘(D) who are victims or threatened victims 10
of criminal activity directly relating to domestic 11
violence, dating violence, sexual assault, or 12
stalking.’’. 13
(d) EFFECTIVE DATES.— 14
(1) I N GENERAL .—Except as provided in para-15
graph (2), the amendments made by this section 16
shall apply to agreements executed or modified on or 17 after the date that is 30 days after the date of the 18 enactment of this Act. 19
(2) P UBLIC USE REQUIREMENT .—The amend-20
ments made by subsection (c) shall apply to build-21
ings placed in service before, on, or after the date 22 of the enactment of this Act. 23
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SEC. 206. CLARIFICATION OF GENERAL PUBLIC USE RE-1
QUIREMENT RELATING TO VETERANS, ETC. 2
(a) IN GENERAL.—Paragraph (9) of section 42(g) of 3
the Internal Revenue Code of 1986, as amended by section 4 205, is further amended by adding at the end the following 5 flush language: 6
‘‘Any veteran of the Armed Forces shall be treated 7
as a member of a specified group under a Federal 8
program for purposes of subparagraph (B).’’. 9
(b) QUALIFIED RESIDENTIAL RENTAL PROJECTS.— 10
Paragraph (2) of section 142(d) of the Internal Revenue 11 Code of 1986 is amended by adding at the end the fol-12 lowing new subparagraph: 13
‘‘(F) C LARIFICATION OF GENERAL PUBLIC 14
USE REQUIREMENT .—A unit shall not fail to 15
meet the general public use requirement solely 16
because of occupancy restrictions or pref-17
erences, if such restrictions or preferences meet 18
the general public use requirement of section 19
42.’’. 20
(c) EFFECTIVE DATES.— 21
(1) I N GENERAL .—The amendment made by 22
subsection (a) shall apply to buildings placed in serv-23 ice before, on, or after the date of the enactment of 24 this Act. 25
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(2) Q UALIFIED RESIDENTIAL RENTAL 1
PROJECTS.—The amendment made by subsection (b) 2
shall apply to bonds issued before, on, or after the 3
date of the enactment of this Act. 4
TITLE III—RULES RELATING TO 5
CREDIT ELIGIBILITY AND DE-6
TERMINATION 7
SEC. 301. RECONSTRUCTION OR REPLACEMENT PERIOD 8
AFTER CASUALTY LOSS. 9
(a) NO RECAPTURE FOLLOWING CASUALTY LOSS.— 10
Subparagraph (E) of section 42(j)(4) of the Internal Rev-11 enue Code of 1986 is amended to read as follows: 12
‘‘(E) N O RECAPTURE BY REASON OF CAS -13
UALTY LOSS .— 14
‘‘(i) I N GENERAL .—The increase in 15
tax under this subsection shall not apply to 16
a reduction in qualified basis by reason of 17
a casualty loss to the extent such loss is 18
restored by reconstruction or replacement 19
within a reasonable period established by 20
the applicable housing credit agency, not to 21
exceed 25 months from the date on which 22
the qualified casualty loss arises. 23
‘‘(ii) QUALIFIED CASUALTY LOSSES .— 24
In the case of a qualified casualty loss, the 25
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period described in clause (i) may be ex-1
tended, but not in excess of 12 months, if 2
the applicable housing credit agency deter-3
mines the qualified casualty arose by rea-4
son of an event which was not discrete to 5
the building and which made a reconstruc-6
tion or replacement within 25 months im-7
practical. In the event the applicable hous-8
ing credit agency determines a period in 9
excess of 25 months is necessary for such 10
reconstruction or replacement, the compli-11
ance period shall be increased by any such 12
additional time. 13
‘‘(iii) A PPLICATION.—The determina-14
tion under paragraph (1) shall not be 15
made with respect to a property the basis 16
of which is affected by a qualified casualty 17
loss until the period described in clause (i) 18
(as modified by clause (ii), if applicable) 19
with respect to such property has expired. 20
‘‘(iv) Q UALIFIED CASUALTY LOSS .— 21
For purposes of this subparagraph, the 22
term ‘qualified casualty loss’ means a cas-23
ualty loss that is the result of a Federally 24
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declared disaster (as defined in section 1
165(i)(5)).’’. 2
(b) Q UALIFIED BASIS FOLLOWING CASUALTY 3
LOSS.—Paragraph (1) of section 42(c) of the Internal 4
Revenue Code of 1986 is amended by adding at the end 5
the following new subparagraph: 6
‘‘(F) Q UALIFIED BASIS FOLLOWING CAS -7
UALTY LOSS .—If a casualty causes the qualified 8
basis of a building in any year to be less than 9
the qualified basis in the immediately preceding 10
year then, in the year of such casualty and each 11
succeeding year until such building or the units 12
affected by the casualty are reconstructed or re-13
placed (but only through the last year of the pe-14
riod permitted for reconstruction or replace-15
ment under subsection (j)(4)(E))— 16
‘‘(i) the qualified basis of such build-17
ing shall be equal to the qualified basis of 18
such building as of the last day of the year 19
preceding the year in which such casualty 20
occurred, 21
‘‘(ii) if such building is not recon-22
structed or replaced by the expiration of 23
the applicable period for such reconstruc-24
tion or replacement under subsection 25
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(j)(4), then the recapture amount provided 1
for in subsection (j)(1) shall include the 2
amount of any credit claimed under this 3
section by reason of the application of 4
clause (i), and 5
‘‘(iii) a building which was a qualified 6
low-income building as of the last day of 7
the year preceding the year in which such 8
casualty occurred shall not cease to be a 9
qualified low-income building solely be-10
cause of such casualty.’’. 11
(c) E FFECTIVE DATE.—The amendments made by 12
this section shall apply to casualties occurring after the 13 date which is 25 months before the date of the enactment 14 of this Act. 15
SEC. 302. MODIFICATION OF PREVIOUS OWNERSHIP RULES; 16
LIMITATION ON ACQUISITION BASIS. 17
(a) IN GENERAL.—Clause (ii) of section 42(d)(2)(B) 18
of the Internal Revenue Code of 1986 is amended by in-19 serting ‘‘, or the taxpayer elects the application of sub-20 paragraph (C)(ii)’’ after ‘‘service’’. 21
(b) L IMITATION ON ACQUISITION BASIS.—Subpara-22
graph (C) of section 42(d)(2) of the Internal Revenue 23 Code of 1986 is amended— 24
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(1) by striking ‘‘For purposes of subparagraph 1
(A), the adjusted basis’’ and inserting ‘‘For pur-2
poses of subparagraph (A)— 3
‘‘(i) I N GENERAL .—The adjusted 4
basis’’, and 5
(2) by adding at the end the following new 6
clauses: 7
‘‘(ii) B UILDINGS IN SERVICE WITHIN 8
PREVIOUS 10 YEARS .—If the period be-9
tween the date of acquisition of the build-10
ing by the taxpayer and the date the build-11
ing was last placed in service is less than 12
10 years, the taxpayer’s basis attributable 13
to the acquisition of the building which is 14
taken into account in determining the ad-15
justed basis shall not exceed the sum of— 16
‘‘(I) the lowest amount paid for 17
acquisition of the building by any per-18
son during the 10 years preceding the 19
date of the acquisition of the building 20
by the taxpayer, adjusted as provided 21
in clause (iii), and 22
‘‘(II) the value of any capital im-23
provements made by the person who 24
sells the building to the taxpayer 25
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which are reflected in such seller’s 1
basis. 2
‘‘(iii) A DJUSTMENT.—With respect to 3
a basis determination made in any taxable 4
year, the amount described in clause (ii)(I) 5
shall be increased by an amount equal to— 6
‘‘(I) such amount, multiplied by 7
‘‘(II) a cost-of-living adjustment, 8
determined in the same manner as 9
under section 1(f)(3) for the calendar 10
year in which the taxable year begins 11
by taking into account the acquisition 12
year in lieu of calendar year 1992. 13
For purposes of the preceding sentence, 14
the acquisition year is the calendar year in 15
which the lowest amount referenced in 16
clause (ii)(I) was paid for the acquisition 17
of the building.’’. 18
(c) C ONFORMING AMENDMENTS.—Clause (i) of sec-19
tion 42(d)(2)(D) of the Internal Revenue Code of 1986 20 is amended— 21
(1) by striking ‘‘ FOR SUBPARAGRAPH (B) ’’ in 22
the heading, and 23
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(2) by striking ‘‘subparagraph (B)(ii)’’ in the 1
matter preceding subclause (I) and inserting ‘‘sub-2
paragraph (B)(ii) or (C)(ii)’’. 3
(d) MODIFICATION OF PLACED IN SERVICE RULE.— 4
Clause (iii) of section 42(d)(2)(B) of the Internal Revenue 5 Code of 1986 is amended to read as follows: 6
‘‘(iii) the building was not owned by 7
the taxpayer or by any person related (as 8
of the date of acquisition by the taxpayer) 9
to the taxpayer at any time during the 5- 10
year period ending on the date of acquisi-11
tion by the taxpayer, and’’. 12
(e) E FFECTIVE DATE.—The amendments made by 13
this section shall apply to buildings placed in service after 14 December 31, 2022. 15
SEC. 303. CERTAIN RELOCATION COSTS TAKEN INTO AC-16
COUNT AS REHABILITATION EXPENDITURES. 17
(a) IN GENERAL.—Paragraph (2) of section 42(e) of 18
the Internal Revenue Code of 1986 is amended by adding 19 at the end the following new subparagraph: 20
‘‘(C) C ERTAIN RELOCATION COSTS .—In 21
the case of a rehabilitation of a building to 22
which section 280B does not apply, costs relat-23
ing to the relocation of occupants, including— 24
‘‘(i) amounts paid to occupants, 25
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‘‘(ii) amounts paid to third parties for 1
services relating to such relocation, and 2
‘‘(iii) amounts paid for temporary 3
housing for occupants, 4
shall be treated as chargeable to capital account 5
and taken into account as rehabilitation ex-6
penditures.’’. 7
(b) E FFECTIVE DATE.—The amendment made by 8
this section shall apply to expenditures paid or incurred 9 after December 31, 2022. 10
(c) N O INFERENCE.—Nothing in the amendment 11
made by this section shall be construed to create any infer-12 ence with respect to the treatment of relocation costs paid 13 or incurred before December 31, 2022. 14
SEC. 304. REPEAL OF QUALIFIED CENSUS TRACT POPU-15
LATION CAP. 16
(a) IN GENERAL.—Clause (ii) of section 42(d)(5)(B) 17
of the Internal Revenue Code of 1986 is amended— 18
(1) by striking subclauses (II) and (III), and 19
(2) by striking ‘‘Q UALIFIED CENSUS TRACT .— 20
‘‘(I) IN GENERAL .—The term’’, 21
and inserting ‘‘Q UALIFIED CENSUS TRACT .—The 22
term’’. 23
(b) E FFECTIVE DATE.—The amendments made by 24
this section shall apply to designations of qualified census 25 VerDate Sep 11 2014 21:51 May 23, 2023 Jkt 039200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1557.IS S1557kjohnson on DSK79L0C42PROD with BILLS 26 •S 1557 IS
tracts under section 42(d)(5)(B)(ii) of the Internal Rev-1 enue Code of 1986 after December 31, 2023. 2
SEC. 305. DETERMINATION OF COMMUNITY REVITALIZA-3
TION PLAN TO BE MADE BY HOUSING CREDIT 4
AGENCY. 5
(a) I N GENERAL.—Subclause (III) of section 6
42(m)(1)(B)(ii) of the Internal Revenue Code of 1986 is 7 amended by inserting ‘‘, as determined by the housing 8 credit agency according to criteria established by such 9 agency,’’ after ‘‘(d)(5)(B)(ii)) and’’. 10
(b) C RITERIA.—Paragraph (1) of section 42(m) of 11
the Internal Revenue Code of 1986 is amended by adding 12 at the end the following new subparagraph: 13
‘‘(E) C RITERIA FOR DETERMINATION RE -14
LATING TO CONCERTED COMMUNITY REVITAL -15
IZATION PLAN .—For purposes of subparagraph 16
(B)(ii)(III), the criteria which shall be estab-17
lished by a housing credit agency for deter-18
mining whether the development of a project 19
contributes to a concerted community develop-20
ment plan shall take into account any factors 21
the agency deems appropriate, including the ex-22
tent to which the proposed plan— 23
‘‘(i) is geographically specific, 24
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‘‘(ii) outlines a clear plan for imple-1
mentation and goals for outcomes, 2
‘‘(iii) includes a strategy for applying 3
for or obtaining commitments of public or 4
private investment (or both) in nonhousing 5
infrastructure, amenities, or services, and 6
‘‘(iv) demonstrates the need for com-7
munity revitalization.’’. 8
(c) E FFECTIVE DATE.—The amendments made by 9
this section shall apply to allocations of housing credit dol-10 lar amounts made under qualified allocation plans (as de-11 fined in section 42(m)(1)(B) of the Internal Revenue Code 12 of 1986) adopted after December 31, 2023. 13
SEC. 306. PROHIBITION OF LOCAL APPROVAL AND CON-14
TRIBUTION REQUIREMENTS. 15
(a) I N GENERAL.—Paragraph (1) of section 42(m) 16
of the Internal Revenue Code of 1986, as amended by sec-17 tion 305, is further amended— 18
(1) by striking clause (ii) of subparagraph (A) 19
and by redesignating clauses (iii) and (iv) thereof as 20 clauses (ii) and (iii), and 21
(2) by adding at the end the following new sub-22
paragraph: 23
‘‘(F) L OCAL APPROVAL OR CONTRIBUTION 24
NOT TAKEN INTO ACCOUNT .—The selection cri-25
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teria under a qualified allocation plan shall not 1
include consideration of— 2
‘‘(i) any support or opposition with re-3
spect to the project from local or elected 4
officials, or 5
‘‘(ii) any local government contribu-6
tion to the project, except to the extent 7
such contribution is taken into account as 8
part of a broader consideration of the 9
project’s ability to leverage outside funding 10
sources, and is not prioritized over any 11
other source of outside funding.’’. 12
(b) 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. 307. INCREASE IN CREDIT FOR CERTAIN PROJECTS 18
DESIGNATED TO SERVE EXTREMELY LOW-IN-19
COME HOUSEHOLDS. 20
(a) IN GENERAL.—Paragraph (5) of section 42(d) of 21
the Internal Revenue Code of 1986 is amended by adding 22 at the end the following new subparagraph: 23
‘‘(C) I NCREASE IN CREDIT FOR PROJECTS 24
DESIGNATED TO SERVE EXTREMELY LOW -IN-25
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COME HOUSEHOLDS .—In the case of any build-1
ing— 2
‘‘(i) 20 percent or more of the resi-3
dential units (determined as if the imputed 4
income limitation applicable to such units 5
were 30 percent of area median gross in-6
come) in which are designated by the tax-7
payer for occupancy by households the ag-8
gregate household income of which does 9
not exceed the greater of— 10
‘‘(I) 30 percent of area median 11
gross income, or 12
‘‘(II) 100 percent of an amount 13
equal to the Federal poverty line 14
(within the meaning of section 15
36B(d)(3)), and 16
‘‘(ii) which is designated by the hous-17
ing credit agency as requiring the increase 18
in credit under this subparagraph in order 19
for such building to be financially feasible 20
as part of a qualified low-income housing 21
project, 22
subparagraph (B) shall not apply to the portion 23
of such building which is comprised of such 24
units (determined in a manner similar to the 25
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unit fraction under subsection (c)(1)(C)), and 1
the eligible basis of such portion of the building 2
shall be 150 percent of such basis determined 3
without regard to this subparagraph.’’. 4
(b) E FFECTIVE DATE.—The amendment made by 5
this section shall apply to buildings which receive alloca-6 tions of housing credit dollar amount after the date of en-7 actment of this Act or, in the case of buildings financed 8 as described in section 42(h)(4)(B) of the Internal Rev-9 enue Code of 1986, to buildings financed by obligations 10 which are part of an issue the issue date of which is after 11 December 31, 2023. 12
SEC. 308. INCREASE IN CREDIT FOR BOND-FINANCED 13
PROJECTS DESIGNATED BY STATE AGENCY. 14
(a) IN GENERAL.—Clause (v) of section 42(d)(5)(B) 15
of the Internal Revenue Code of 1986 is amended by strik-16 ing the second sentence. 17
(b) TECHNICAL AMENDMENT.—Clause (v) of section 18
42(d)(5)(B) of the Internal Revenue Code of 1986, as 19 amended by subsection (a), is further amended— 20
(1) by striking ‘‘S TATE’’ in the heading, and 21
(2) by striking ‘‘State housing credit agency’’ 22
and inserting ‘‘housing credit agency’’. 23
(c) E FFECTIVE DATE.—The amendments made by 24
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42(h)(4)(B) of the Internal Revenue Code of 1986 which 1 are financed by obligations which are part of an issue the 2 issue date of which is after December 31, 2023. 3
SEC. 309. ELIMINATION OF BASIS REDUCTION FOR LOW-IN-4
COME HOUSING PROPERTIES ENERGY EFFI-5
CIENT COMMERCIAL BUILDING DEDUCTION. 6
(a) E NERGY EFFICIENT COMMERCIAL BUILDINGS 7
DEDUCTION.—Subsection (e) of section 179D of the In-8
ternal Revenue Code of 1986 is amended— 9
(1) by striking ‘‘R EDUCTION.—For purposes’’ 10
and inserting ‘‘R EDUCTION.— 11
‘‘(1) IN GENERAL .—For purposes’’, and 12
(2) by adding at the end the following new 13
paragraph: 14
‘‘(2) E XCEPTION FOR AFFORDABLE HOUSING 15
PROPERTIES.—Paragraph (1) shall not apply for 16
purposes of determining eligible basis under section 17
42.’’. 18
(b) E FFECTIVE DATE.—The amendments made by 19
this section shall apply to buildings which receive alloca-20 tions of housing credit dollar amount after the date of the 21 enactment of this Act or, in the case of buildings financed 22 as described in section 42(h)(4)(B) of the Internal Rev-23 enue Code of 1986, to buildings financed by obligations 24 VerDate Sep 11 2014 21:51 May 23, 2023 Jkt 039200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1557.IS S1557kjohnson on DSK79L0C42PROD with BILLS 32 •S 1557 IS
which are part of an issue the issue date of which is after 1 December 31, 2023. 2
SEC. 310. RESTRICTION OF PLANNED FORECLOSURES. 3
(a) I N GENERAL.—Subclause (I) of section 4
42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is 5 amended to read as follows: 6
‘‘(I) on the 61st day after the 7
taxpayer (or a successor in interest) 8
provides notice to the Secretary and 9
the housing credit agency that the 10
building has been acquired by fore-11
closure (or instrument in lieu of fore-12
closure) and that the taxpayer intends 13
the termination of such period, unless, 14
before such date, the Secretary or the 15
housing credit agency determines that 16
such acquisition is part of an arrange-17
ment with the taxpayer a purpose of 18
which is to terminate such period, 19
or’’. 20
(b) C ONFORMING AMENDMENT.—The second sen-21
tence of clause (i) of section 42(h)(6)(E) of the Internal 22 Revenue Code of 1986 is amended by striking ‘‘Subclause 23 (II)’’ and inserting ‘‘Subclauses (I) and (II)’’. 24
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(c) E FFECTIVE DATE.—The amendments made by 1
this section shall apply to acquisitions by foreclosure (or 2 instrument in lieu of foreclosure) after December 31, 3 2022. 4
SEC. 311. INCREASE OF POPULATION CAP FOR DIFFICULT 5
DEVELOPMENT AREAS. 6
(a) I N GENERAL.—Subclause (II) of section 7
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 8 amended by striking ‘‘20 percent’’ and inserting ‘‘30 per-9 cent’’. 10
(b) E FFECTIVE DATE.—The amendment made by 11
this section shall apply to designations made under section 12 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 13 after December 31, 2023. 14
SEC. 312. INCREASED COST OVERSIGHT AND ACCOUNT-15
ABILITY. 16
(a) I N GENERAL.—Subparagraph (C) of section 17
42(m)(1) of the Internal Revenue Code of 1986 is amend-18 ed by striking ‘‘and’’ at the end of clause (ix), by striking 19 the period at the end of clause (x) and inserting ‘‘, and’’, 20 and by adding at the end the following new clause: 21
‘‘(xi) the reasonableness of the devel-22
opment costs of the project.’’. 23
(b) E FFECTIVE DATE.—The amendments made by 24
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tion 42 of the Internal Revenue Code of 1986 made after 1 December 31, 2023. 2
SEC. 313. TAX-EXEMPT BOND FINANCING REQUIREMENT. 3
(a) I N GENERAL.—Subparagraph (B) of section 4
42(h)(4) of the Internal Revenue Code of 1986 is amended 5 by adding at the end the following new sentence: ‘‘In the 6 case of buildings financed by an obligation first taken into 7 account under section 146 in calendar years beginning 8 after the date of the enactment of the Affordable Housing 9 Credit Improvement Act of 2023, the preceding sentence 10 shall be applied by substituting ‘25 percent’ for ‘50 per-11 cent’.’’. 12
(b) E FFECTIVE DATE.—The amendment made by 13
this section shall apply to any building some portion of 14 which, or of the land on which the building is located, is 15 financed by an obligation which is described in section 16 42(h)(4)(A) of the Internal Revenue Code of 1986 and 17 which is part of an issue the issue date of which is after 18 December 31, 2023. 19
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TITLE IV—REFORMS RELATING 1
TO NATIVE AMERICAN AS-2
SISTANCE 3
SEC. 401. SELECTION CRITERIA UNDER QUALIFIED ALLO-4
CATION PLANS. 5
(a) I N GENERAL.—Subparagraph (C) of section 6
42(m)(1) of the Internal Revenue Code of 1986, as 7
amended by section 312, is further amended by striking 8 ‘‘and’’ at the end of clause (x), by striking the period at 9 the end of clause (xi) and inserting ‘‘, and’’, and by adding 10 at the end the following new clause: 11
‘‘(xii) the affordable housing needs of 12
individuals in the State who are— 13
‘‘(I) enrolled members of a tribe 14
with respect to an Indian tribal gov-15
ernment (including any agencies or in-16
strumentalities of an Indian tribal 17
government and any Alaska Native re-18
gional or village corporation, as de-19
fined in, or established pursuant to, 20
the Alaska Native Claims Settlement 21
Act (43 U.S.C. 1601 et seq.), or 22
‘‘(II) described in section 801(9) 23
of the Native American Housing As-24
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sistance and Self-Determination Act 1
of 1996 (25 U.S.C. 4221(9)).’’. 2
(b) E FFECTIVE DATE.—The amendments made by 3
this section shall apply to allocations of credits under sec-4 tion 42 of the Internal Revenue Code of 1986 made after 5 December 31, 2023. 6
SEC. 402. INCLUSION OF INDIAN AREAS AS DIFFICULT DE-7
VELOPMENT AREAS FOR PURPOSES OF CER-8
TAIN BUILDINGS. 9
(a) I N GENERAL.—Subclause (I) of section 10
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 11 amended by inserting before the period the following: ‘‘, 12 and any Indian area’’. 13
(b) I NDIAN AREA.—Clause (iii) of section 14
42(d)(5)(B) of the Internal Revenue Code of 1986 is 15
amended by redesignating subclause (II) as subclause 16 (III) and by inserting after subclause (I) the following new 17 subclause: 18
‘‘(II) I NDIAN AREA .—For pur-19
poses of subclause (I), the term ‘In-20
dian area’ means any Indian area (as 21
defined in section 4(11) of the Native 22
American Housing Assistance and 23
Self Determination Act of 1996 (25 24
U.S.C. 4103(11))) and any housing 25
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area (as defined in section 801(5) of 1
such Act (25 U.S.C. 4221(5))).’’. 2
(c) E LIGIBLE BUILDINGS.—Clause (iii) of section 3
42(d)(5)(B) of the Internal Revenue Code of 1986, as 4
amended by subsection (b), is further amended by adding 5 at the end the following new subclause: 6
‘‘(IV) SPECIAL RULE FOR BUILD -7
INGS IN INDIAN AREAS .—In the case 8
of an area which is a difficult develop-9
ment area solely because it is an In-10
dian area, a building shall not be 11
treated as located in such area unless 12
such building is assisted or financed 13
under the Native American Housing 14
Assistance and Self Determination 15
Act of 1996 (25 U.S.C. 4101 et seq.) 16
or the project sponsor is an Indian 17
tribe (as defined in section 18
45A(c)(6)), a tribally designated hous-19
ing entity (as defined in section 4(22) 20
of such Act (25 U.S.C. 4103(22))), or 21
wholly owned or controlled by such an 22
Indian tribe or tribally designated 23
housing entity.’’. 24
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(d) E FFECTIVE DATE.—The amendments made by 1
this section shall apply to buildings placed in service after 2 December 31, 2023. 3
TITLE V—REFORMS RELATING 4
TO RURAL ASSISTANCE 5
SEC. 501. INCLUSION OF RURAL AREAS AS DIFFICULT DE-6
VELOPMENT AREAS. 7
(a) I N GENERAL.—Subclause (I) of section 8
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986, as 9 amended by section 402, is further amended by inserting 10 ‘‘, any rural area’’ after ‘‘median gross income’’. 11
(b) R URAL AREA.—Clause (iii) of section 12
42(d)(5)(B) of the Internal Revenue Code of 1986, as 13 amended by section 402, is further amended by redesig-14 nating subclause (III) as subclause (IV) and by inserting 15 after subclause (II) the following new subclause: 16
‘‘(III) R URAL AREA .—For pur-17
poses of subclause (I), the term ‘rural 18
area’ means any non-metropolitan 19
area, or any rural area as defined by 20
section 520 of the Housing Act of 21
1949, which is identified by the quali-22
fied allocation plan under subsection 23
(m)(1)(B).’’. 24
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(c) E FFECTIVE DATE.—The amendments made by 1
this section shall apply to buildings placed in service after 2 December 31, 2023. 3
SEC. 502. UNIFORM INCOME ELIGIBILITY FOR RURAL 4
PROJECTS. 5
(a) IN GENERAL.—Paragraph (8) of section 42(i) of 6
the Internal Revenue Code of 1986 is amended by striking 7 the second sentence. 8
(b) E FFECTIVE DATE.—The amendment made by 9
this section shall apply to taxable years beginning after 10 December 31, 2022. 11
TITLE VI—EXEMPT FACILITY 12
BONDS 13
SEC. 601. REVISION AND CLARIFICATION OF THE TREAT-14
MENT OF REFUNDING ISSUES. 15
(a) I N GENERAL.—Subparagraph (A) of section 16
146(i)(6) of the Internal Revenue Code of 1986 is amend-17 ed to read as follows: 18
‘‘(A) I N GENERAL .—During the 12-month 19
period beginning on the date of a repayment of 20
a loan financed by an issue 95 percent or more 21
of the net proceeds of which are used to provide 22
projects described in section 142(d), if such re-23
payment is used to provide a new loan for any 24
project described in section 142(a)(7) or for 25
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any purpose described in subsection (a)(2)(A) 1
or (b) of section 143, any bond which is issued 2
to refinance such issue shall be treated as a re-3
funding issue. Any issue treated as a refunding 4
issue by reason of the preceding sentence shall 5
be so treated only to the extent the principal 6
amount of such refunding issue does not exceed 7
the principal amount of the bonds refunded.’’. 8
(b) R EMOVAL OF ONE-REFUNDING LIMIT.—Sub-9
paragraph (B) of section 146(i)(6) of the Internal Rev-10 enue Code of 1986 is amended— 11
(1) by striking ‘‘4 years’’ in clause (i) and in-12
serting ‘‘10 years’’, 13
(2) by striking ‘‘was issued’’ in clause (ii) and 14
inserting ‘‘is issued’’, 15
(3) by redesignating clauses (i) (as so amend-16
ed), (ii) (as so amended), and (iii) as subclauses (I), 17 (II), and (III), respectively, and by moving such sub-18 clauses 2 ems to the right, 19
(4) by striking ‘‘L IMITATIONS.—Subparagraph 20
(A) shall apply to only one refunding of the original 21 issue and’’ and inserting ‘‘L IMITATIONS.— 22
‘‘(i) I N GENERAL .—Subparagraph (A) 23
shall apply to a bond’’, and 24
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(5) by adding at the end the following new 1
clause: 2
‘‘(ii) S OURCE OF LOAN REPAY -3
MENT.—Subparagraph (A) shall not apply 4
to any repayment of a loan which is— 5
‘‘(I) made by a repayment of an-6
other loan, or 7
‘‘(II) financed by an issue treated 8
as a refunding issue under subpara-9
graph (A).’’. 10
(c) C ONFORMING AMENDMENT.—The heading of 11
paragraph (6) of section 146(i) of the Internal Revenue 12 Code of 1986 is amended by striking ‘‘ RESIDENTIAL 13
RENTAL PROJECT BONDS AS REFUNDING BONDS IRRE -14
SPECTIVE OF OBLIGOR ’’ and inserting ‘‘ BONDS AS RE -15 FUNDING BONDS’’. 16
(d) EFFECTIVE DATES.— 17
(1) I N GENERAL .—The amendments made by 18
subsections (a) and (c) shall apply to bonds issued 19
on or after the date of the enactment of this Act. 20
(2) REMOVAL OF ONE -REFUNDING LIMIT .—The 21
amendments made by subsection (b) shall apply to 22
repayments of loans received after July 30, 2008. 23
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TITLE VII—AFFORDABLE 1
HOUSING TAX CREDIT 2
SEC. 701. AFFORDABLE HOUSING TAX CREDIT. 3
(a) IN GENERAL.—The heading of section 42 of the 4
Internal Revenue Code of 1986 is amended by striking 5
‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 6
(b) CONFORMING AMENDMENTS.— 7
(1) Subsection (a) of section 42 of the Internal 8
Revenue Code of 1986 is amended by striking ‘‘low- 9
income’’ and inserting ‘‘affordable’’. 10
(2) Paragraph (5) of section 38(b) of such Code 11
is amended by striking ‘‘low-income’’ and inserting 12
‘‘affordable’’. 13
(3) The heading of subparagraph (D) of section 14
469(i)(3) of such Code is amended by striking 15
‘‘LOW-INCOME’’ and inserting ‘‘ AFFORDABLE’’. 16
(4) The heading of subparagraph (B) of section 17
469(i)(6) of such Code is amended by striking 18
‘‘LOW-INCOME’’ and inserting ‘‘ AFFORDABLE’’. 19
(5) Paragraph (7) of section 772(a) of such 20
Code is amended by striking ‘‘low-income’’ and in-21
serting ‘‘affordable’’. 22
(6) Paragraph (5) of section 772(d) of such 23
Code is amended by striking ‘‘low-income’’ and in-24
serting ‘‘affordable’’. 25
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(c) C LERICAL AMENDMENT.—The item relating to 1
section 42 in the table of sections for subpart D of part 2 IV of subchapter A of chapter 1 of the Internal Revenue 3 Code of 1986 is amended to read as follows: 4
‘‘Sec. 42. Affordable housing credit.’’.
TITLE VIII—DATA AND 5
TRANSPARENCY 6
SEC. 801. SENSE OF CONGRESS. 7
(a) TRANSPARENCY.—It is the sense of Congress that 8
in addition to expanding and strengthening the affordable 9 housing credit through the provisions in the Affordable 10 Housing Credit Improvement Act of 2023, subsequent 11
steps should also be taken to share data and identify other 12 ways to increase the transparency of the program, and the 13 House of Representatives and the Senate should work to-14 gether with Federal agencies to identify data sources that 15 can be shared. 16
(b) DISCRIMINATORY LAND USE POLICIES.—It is the 17
Sense of Congress that action should be taken to discour-18 age the use of discriminatory land use policies and remove 19 barriers to making housing more affordable to further the 20 original intent of the affordable housing credit program. 21 The House and Senate should work together to develop 22 incentives within the affordable housing credit program to 23 encourage states and localities to remove or reform bur-24 densome land use and zoning regulations and facilitate the 25 VerDate Sep 11 2014 21:51 May 23, 2023 Jkt 039200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1557.IS S1557kjohnson on DSK79L0C42PROD with BILLS 44 •S 1557 IS
adoption or continuation of inclusive land use and zoning 1 policies to increase housing supply and affordability. 2 Æ
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