I 

108TH CONGRESS 

1ST SESSION H. R. 2166

To amend the Internal Revenue Code of 1986 to provide for a temporary 

ex-offender low-income housing credit to encourage the provision of housing, job training, and other essential services to ex-offenders through 

a structured living environment designed to assist the ex-offenders in 

becoming self-sufficient. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 20, 2003

Mr. DAVIS of Illinois (for himself, Mr. SOUDER, Mr. RANGEL, Ms. NORTON, 

Mr. FILNER, Mr. CUMMINGS, Mr. JEFFERSON, Mr. JACKSON of Illinois, 

Ms. LEE, Mr. OWENS, Ms. JACKSON-LEE of Texas, and Mrs. JONES of 

Ohio) introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to provide 

for a temporary ex-offender low-income housing credit 

to encourage the provision of housing, job training, and 

other essential services to ex-offenders through a structured living environment designed to assist the ex-offenders in becoming self-sufficient.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Public Safety Ex-Of3 fender Self-Sufficiency Act of 2003’’.

4 SEC. 2. TEMPORARY EX-OFFENDER LOW-INCOME HOUSING 

5 CREDIT. 

6 (a) IN GENERAL.—Subpart D of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by adding at the end the following new 

9 section: 

10 ‘‘SEC. 45G. EX-OFFENDER LOW-INCOME HOUSING CREDIT. 

11 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

12 amount of the ex-offender low-income housing credit de13 termined under this section for any taxable year in the 

14 credit period shall be an amount equal to—

15 ‘‘(1) the applicable percentage of 

16 ‘‘(2) the qualified basis of each qualified ex-of17 fender residential building. 

18 ‘‘(b) APPLICABLE PERCENTAGE.—In the case of any 

19 qualified ex-offender residential building, the term ‘appli20 cable percentage’ has the meaning given such term in sec21 tion 42(b)(2) with respect to qualified low-income build22 ings, except that, for the purposes of this subsection, the 

23 percentages prescribed by the Secretary under section 

24 42(b)(2)(B) shall yield amounts of credit which have a 

25 present value equal to 70 percent of the qualified basis 

26 of any qualified ex-offender residential building. 
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1 ‘‘(c) QUALIFIED BASIS.—

2 ‘‘(1) IN GENERAL.—For purposes of subsection 

3 (a) and except as otherwise provided in this sub4 section, the term ‘qualified basis’ means the ad5 justed basis of a qualified ex-offender residential 

6 building as of the close of the 1st taxable year of the 

7 credit period. 

8 ‘‘(2) QUALIFIED BASIS TO INCLUDE PORTION

9 OF BUILDING USED TO PROVIDE EX-OFFENDER SUP10 PORT SERVICES.—The qualified basis of any quali11 fied ex-offender residential building for any taxable 

12 year shall be increased by the lesser of—

13 ‘‘(A) so much of the qualified basis of such 

14 building as is used throughout the year to pro15 vide ex-offender support services, or 

16 ‘‘(B) 20 percent of the qualified basis of 

17 such building (determined without regard to 

18 this paragraph). 

19 ‘‘(3) SPECIAL RULES.—Rules similar to the 

20 rules of paragraphs (4), (5) (other than subpara21 graph (A) thereof), and (7) of section 42(d) shall 

22 apply in determining the adjusted basis of any quali23 fied ex-offender residential building. 

24 ‘‘(d) REHABILITATION EXPENDITURES.—Rules simi25 lar to the rules of section 42(e) shall apply in determining 
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1 the treatment of rehabilitation expenditures paid or in2 curred by the taxpayer with respect to a qualified ex-of3 fender residential building. 

4 ‘‘(e) CREDIT PERIOD.—For purposes of this section, 

5 rules similar to the rules of section 42(f) shall apply in 

6 determining the credit period with respect to any qualified 

7 ex-offender residential building. 

8 ‘‘(f) QUALIFIED EX-OFFENDER RESIDENTIAL

9 BUILDING.—For purposes of this section, the term ‘quali10 fied ex-offender residential building’ means any building 

11 which, at all times during the compliance period, meets 

12 the following requirements: 

13 ‘‘(1) EX-OFFENDER RESIDENTIAL UNITS.—

14 ‘‘(A) IN GENERAL.—Each residential unit 

15 in such building shall be made available for oc16 cupancy to not more than 1 ex-offender. 

17 ‘‘(B) RESIDENCY REQUIREMENTS.—Such 

18 ex-offender must—

19 ‘‘(i) meet the residency requirements 

20 under subsection (g); 

21 ‘‘(ii) have failed to meet such require22 ments for fewer than 14 days; or 

23 ‘‘(iii) be in the process of being evict24 ed from such building for failing to meet 

25 such requirements. 
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1 ‘‘(C) FLEXIBILITY.—A building shall not 

2 be determined to fail to satisfy the require3 ments of this paragraph solely because—

4 ‘‘(i) some or all of the residential 

5 units in such building are single room oc6 cupancy (as defined in section (8)(n) of the 

7 United States Housing Act of 1937 (42 

8 U.S.C. 1437f(n))), or 

9 ‘‘(ii) any unit made available to an ex10 offender is also made available to one or 

11 more of the ex-offender’s sons, daughters, 

12 step-sons, or step-daughters. 

13 ‘‘(2) SELF-SUFFICIENCY CENTERS FOR EX-OF14 FENDERS.—The building shall include a self-suffi15 ciency center for ex-offenders that—

16 ‘‘(A) is specifically designed to accommo17 date, and reserved for, the provision of ex-of18 fender support services to residents of the facil19 ity and other ex-offenders; 

20 ‘‘(B) is made available for rental by pro21 viders of such services at a rate determined by 

22 the owner of the facility; and 

23 ‘‘(C) provides an array of such services 

24 sufficient to meet a significant portion of the
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1 needs of ex-offenders for ex-offender support 

2 services. 

3 ‘‘(3) RENT LIMITATIONS.—The portion of the 

4 monthly rent payable by the occupant of each unit 

5 in the building may not exceed 30 percent of the ad6 justed monthly income (as such term is defined in 

7 section 3(b) of the United States Housing Act of 

8 1937 (42 U.S.C. 1437a(b)) of the occupant. 

9 ‘‘(g) RESIDENCY REQUIREMENTS.—

10 ‘‘(1) IN GENERAL.—An ex-offender meets the 

11 residency requirements for a qualified ex-offender 

12 residential building if such ex-offender—

13 ‘‘(A) has a low income; 

14 ‘‘(B) is participating in an ex-offender sup15 port services program as described in paragraph 

16 (3)(B); 

17 ‘‘(C) has not been prohibited from resi18 dency under paragraph (4); and 

19 ‘‘(D) commences occupancy of a unit in a 

20 qualified ex-offender residential building on a 

21 date that is not later than—

22 ‘‘(i) in the case of an ex-offender who 

23 has been discharged from prison, jail, a 

24 half-way house, or any other correctional 

25 facility, 12 months after such discharge; or 
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1 ‘‘(ii) in the case of any ex-offender 

2 whose sentence did not include confine3 ment to a correctional facility, 12 months 

4 after the date of the ex-offender’s convic5 tion. 

6 ‘‘(2) LOW-INCOME.—For purposes of this sec7 tion, an ex-offender is considered to have a low in8 come if, at the commencement of the ex-offender’s 

9 occupancy of a residential unit, the income (if any) 

10 of the ex-offender does not exceed 60 percent of area 

11 median gross income (as determined consistent with 

12 section 8 of the United States Housing Act of 

13 1937). 

14 ‘‘(3) PARTICIPATION IN EX-OFFENDER SUP15 PORT SERVICES PROGRAM.—

16 ‘‘(A) PROGRAM.—For purposes of this sec17 tion, an ex-offender support services program is 

18 a program for the provision of specific ex-of19 fender support services for an ex-offender 

20 that—

21 ‘‘(i) is created and managed by a co22 ordinating individual or entity having edu23 cation, training, and experience with ex-of24 fenders and their support services needs; 
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1 ‘‘(ii) is specifically designed to meet 

2 the needs of the particular ex-offender for 

3 ex-offender support services; 

4 ‘‘(iii) sets forth a specific duration 

5 over which the ex-offender support services 

6 are to be provided and goals by which to 

7 assess the progress of the ex-offender; and 

8 ‘‘(iv) provides for continual oversight 

9 to monitor the progress and needs of the 

10 ex-offender and to ensure that the ex-of11 fender is being provided the appropriate 

12 ex-offender support services and is com13 plying with the requirements of the pro14 gram. 

15 ‘‘(B) PARTICIPATION.—For purposes of 

16 this section, an ex-offender is considered to be 

17 participating in an ex-offender support services 

18 program if the ex-offender—

19 ‘‘(i) has entered into a written agree20 ment with the coordinator for the program 

21 that—

22 ‘‘(I) sets forth the ex-offender 

23 support services that are appropriate 

24 for, and will be made available to, the 
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1 ex-offender and the duration of the 

2 program for the ex-offender; and 

3 ‘‘(II) provides that the ex-offend4 er’s continued attendance at scheduled 

5 program meetings and events and ob6 taining of program services are a con7 dition of the ex-offender’s continued 

8 residency in the facility; and 

9 ‘‘(ii) is not in default with regard to 

10 the ex-offender’s obligations under such 

11 agreement. 

12 ‘‘(C) EX-OFFENDER SUPPORT SERVICES.—

13 For purposes of this section, the term ‘ex-of14 fender support services’ means services that as15 sist ex-offenders to develop skills necessary for 

16 life outside of the environment of a correctional 

17 institution, and includes—

18 ‘‘(i) job training; 

19 ‘‘(ii) employment counseling and 

20 placement; 

21 ‘‘(iii) entrepreneurial training; 

22 ‘‘(iv) financial management training; 

23 ‘‘(v) homeownership and rental coun24 seling; 
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1 ‘‘(vi) drug and alcohol abuse coun2 seling; 

3 ‘‘(vii) self-esteem and peer develop4 ment assistance; 

5 ‘‘(viii) anger management counseling;

6 ‘‘(ix) health care services, including 

7 mental health services and behavioral 

8 counseling; 

9 ‘‘(x) probation services; 

10 ‘‘(xi) family and crisis management 

11 counseling; and 

12 ‘‘(xii) general educational assistance 

13 and counseling. 

14 ‘‘(4) LIMITATION ON TERM OF RESIDENCY.—

15 An ex-offender may not reside in an ex-offender resi16 dential facility at any time after the expiration of 

17 the 2-year period beginning upon the commencement 

18 of the ex-offender’s occupancy in the ex-offender res19 idential facility. 

20 ‘‘(h) EX-OFFENDER.—For purposes of this section, 

21 the term ‘ex-offender’ means any individual who has been 

22 convicted of a crime under State or Federal law which is 

23 punishable by imprisonment for a maximum term of 6 

24 months or longer.
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1 ‘‘(i) ALLOCATION AND DETERMINATION OF CRED2 IT.—

3 ‘‘(1) IN GENERAL.—Except as otherwise pro4 vided in this subsection, rules similar to the rules of 

5 section 42(h) (other than subparagraphs (E) and 

6 (F) of paragraph (1) thereof) shall apply with re7 spect to allocating and determining any credit under 

8 this section. 

9 ‘‘(2) STATE HOUSING CREDIT CEILING.—For 

10 purposes of this section: 

11 ‘‘(A) IN GENERAL.—The State housing 

12 credit ceiling shall be calculated by substituting 

13 the amount determined under section 

14 42(h)(3)(C)(ii) with the State allocation. 

15 ‘‘(B) STATE ALLOCATION.—

16 ‘‘(i) COMPETITIVE PROCESS.—The 

17 State allocation for any State shall be de18 termined by the Secretary, utilizing a com19 petitive application process. 

20 ‘‘(ii) BASIS FOR COMPETITION.—In 

21 determining the State allocation for any 

22 State, the Secretary shall consider the fol23 lowing: 

24 ‘‘(I) Need, as determined by the 

25 ratio between the reported number of 
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1 sentenced prisoners released from 

2 State or Federal jurisdiction in the 

3 applicant State during the most re4 cent year for which information is 

5 available, and the total population of 

6 the applicant State. 

7 ‘‘(II) The commitment of Federal 

8 and other funds within the applicant 

9 State for operating costs and ex-of10 fender support services in projects 

11 that are to be funded by the State 

12 temporary ex-offender low-income 

13 housing credit. 

14 ‘‘(III) The applicant’s plan to 

15 collect available information about the 

16 success of the program with respect to 

17 increased housing stability and lack of 

18 additional incarceration of ex-offeder 

19 participants. 

20 ‘‘(IV) The applicant’s organiza21 tional capacity for the successful de22 velopment or operation of qualified ex23 offender residential buildings. 
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1 ‘‘(V) The goal of making alloca2 tions to the largest feasible number of 

3 States. 

4 ‘‘(iii) AGGREGATE AMOUNT.—The ag5 gregate amount of State allocations for 

6 any year shall be $85,000,000. 

7 ‘‘(C) BUILDING ALLOCATIONS.—The Sec8 retary may allocate a housing credit dollar 

9 amount to any building. In making such alloca10 tions, the Secretary shall utilize a competitive 

11 application process and shall consider the fac12 tors described in subparagraph (B)(ii). Any al13 location made under this subparagraph shall be 

14 treated for purposes of this subsection as part 

15 of the State allocation for the State in which 

16 such building is located. 

17 ‘‘(D) UNUSED HOUSING CREDIT

18 CARRYOVERS.—

19 ‘‘(i) IN GENERAL.—The State housing 

20 credit ceiling shall be calculated by sub21 stituting the amount determined under 

22 section 42(h)(3)(C)(iv) with the State car23 ryover allocation. 

24 ‘‘(ii) STATE CARRYOVER ALLOCA25 TION.—The State carryover allocation for 
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1 any State shall be determined by the Sec2 retary in a manner similar to the manner 

3 in which the State allocation is determined 

4 under subparagraph (B). The aggregate 

5 amount of State carryover allocations for 

6 any year shall be equal to the aggregate 

7 unused housing credit carryovers (within 

8 the meaning of section 42(h)(3)(D)) of all 

9 States for the preceding calendar year. 

10 ‘‘(4) REQUIRED INVOLVEMENT OF QUALIFIED

11 NON-PROFIT ORGANIZATIONS.—For purposes of this 

12 section, section 42(h)(5)(A) shall be applied by sub13 stituting ‘0’ for ‘90’. 

14 ‘‘(j) RECAPTURE OF CREDIT.—Rules similar to the 

15 rules of subsections (i)(1) and (j) of section 42 shall apply 

16 for purposes of this section. 

17 ‘‘(k) APPLICATION OF AT-RISK RULES.—Rules simi18 lar to the rules of section 42(k) shall apply for purposes 

19 of this section. 

20 ‘‘(l) CERTIFICATION AND OTHER REPORTS TO SEC21 RETARY.—Subject to such regulations as the Secretary 

22 may prescribe, rules similar to the rules of section 42(l) 

23 shall apply for purposes of this section. 

24 ‘‘(m) RESPONSIBILITIES OF THE SECRETARY AND

25 HOUSING CREDIT AGENCIES.—Rules similar to the rules 
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1 of subsections (m) and (n) of section 42 shall apply for 

2 purposes of this section.’’. 

3 (b) INCLUSION AS CURRENT YEAR BUSINESS CRED4 IT.—Section 38(b) of the Internal Revenue Code of 1986 

5 is amended by adding at the end the following new para6 graph: 

7 ‘‘(13) the ex-offender low-income housing credit 

8 under section 45G(a).’’. 

9 (c) CLERICAL AMENDMENT.—The table of sections 

10 for subpart D of part IV of subchapter A of chapter 1 

11 of the Internal Revenue Code of 1986 is amended by add12 ing at the end the following new item:

‘‘Sec. 45G. Ex-offender low-income housing credit.’’.

13 (d) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to property placed in service during 

15 taxable years beginning after the date of the enactment 

16 of this Act.

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