I 

118TH CONGRESS 

2D SESSION H. R. 10009 

To improve the safety of, affordability of, and access to housing. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 18, 2024 

Mr. LAWLER introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committees on Ways 

and Means, Oversight and Accountability, Energy and Commerce, and 

Veterans’ Affairs, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To improve the safety of, affordability of, and access to 

housing. 

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Revitalizing America’s Housing Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; Table of contents. 

TITLE I—PROMOTING OPPORTUNITY AND INCREASING SUPPLY 


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Sec. 101. Identification of regulatory barriers to affordable housing in HUD 

annual report. 

Sec. 102. Opportunity zones transparency, extension, and improvement. 

Sec. 103. Qualifying ordinary income added to special rules for investments in 

opportunity zones. 

Sec. 104. Relieving strain from shortages of transformers. 

Sec. 105. Incentivizing zoning reform. 

Sec. 106. Expanding and strengthening the low-income housing tax credit. 

Sec. 107. Decreasing the equity penalty and incentivizing more long-term owners to sell homes. 

TITLE II—INCREASING ACCESS TO HOUSING AND ADDRESSING 

COST 

Sec. 201. Expanding workforce and volunteer housing. 

Sec. 202. Supporting affordability and safety for public servants. 

Sec. 203. Expanding programs supporting homeownership for those serving the 

community. 

Sec. 204. Improving volunteer first responder housing. 

Sec. 205. Improving access to housing for veterans. 

Sec. 206. Supporting veteran families in need. 

Sec. 207. Attracting private investment to build and rehabilitate owner-occupied homes. 

Sec. 208. Better utilizing and disposing of unused military and government 

lands for housing. 

Sec. 209. Energy conservation standards for manufactured housing. 

Sec. 210. Rental assistance demonstration program. 

Sec. 211. Creating incentives for small dollar loan originators. 

Sec. 212. Small dollar mortgage points and fees. 

Sec. 213. Removing Outdated Regulation for Manufactured Housing. 

Sec. 214. Relieving Burdens on Affordability. 

Sec. 215. Protecting Home Affordability from Energy Mandates. 

TITLE III—SERVING THE MOST VULNERABLE; HEALTH AND 

SAFETY 

Sec. 301. GAO study to determine proximity of housing to Superfund sites. 

Sec. 302. Ensuring public housing agencies inspect each dwelling unit each 

year. 

Sec. 303. Incentivizing local solutions to homelessness. 

Sec. 304. Improving mold and health standards. 

Sec. 305. Improving Protection from Lead Hazards. 

Sec. 306. Improving housing for the elderly and disabled. 

TITLE IV—GOOD GOVERNANCE 

Sec. 401. Requiring annual testimony and oversight from housing regulators. 

Sec. 402. Requiring annual testimony and oversight for government guaranteed 

or insured mortgage programs. 

Sec. 403. Testimony and report from United States Interagency Council on 

Homelessness. 

Sec. 404. Report detailing NYCHA compliance with and HUD oversight of 

2019 agreement. 

Sec. 405. FHA reporting requirements on safety and soundness. 

Sec. 406. Combatting squatting. 

Sec. 407. Reallocation of voucher funding. 


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TITLE V—REGULATORY FLEXIBILITY 

Sec. 501. Authorization of Moving to Work Program. 

Sec. 502. Rescission of Public and Indian Housing Notice 2021–18. 

TITLE VI—IMPROVING FINANCIAL LITERACY REGARDING 

HOUSING 

Sec. 601. Reforms to housing counseling and financial literacy programs. 

1 TITLE I—PROMOTING OPPOR2 TUNITY AND INCREASING 

3 SUPPLY 

4 SEC. 101. IDENTIFICATION OF REGULATORY BARRIERS TO 

5 AFFORDABLE HOUSING IN HUD ANNUAL RE6 PORT. 

7 Section 8 of the Department of Housing and Urban 

8 Development Act (42 U.S.C. 3536) is amended by adding 

9 at the end the following: ‘‘Each such annual report shall 

10 include an identification of significant regulatory barriers 

11 to affordable housing, within the meaning of such term 

12 as provided in the first sentence of section 1203 of the 

13 Housing and Community Development Act of 1992 (42 

14 U.S.C. 12705b), and a discussion and analysis of how to 

15 reduce or remove such barriers.’’. 

16 SEC. 102. OPPORTUNITY ZONES TRANSPARENCY, EXTEN17 SION, AND IMPROVEMENT. 

18 (a) MODIFICATION OF POPULATION CENSUS TRACTS

19 DESIGNATED AS QUALIFIED OPPORTUNITY ZONES.—Sec20 tion 1400Z–1 of the Internal Revenue Code of 1986 is 


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1 amended by adding at the end the following new sub2 section: 

3 ‘‘(g) DISQUALIFICATION OF CERTAIN POPULATION

4 CENSUS TRACTS.— 

5 ‘‘(1) IN GENERAL.—Except as provided in para6 graph (5), any disqualified census tract shall not be 

7 treated as a qualified opportunity zone for any pe8 riod after the date that is 30 days after the date on 

9 which the Secretary publishes the final list of dis10 qualified census tracts under paragraph (4)(B). 

11 ‘‘(2) REPLACEMENT ZONES.— 

12 ‘‘(A) IN GENERAL.—The chief executive of13 ficer of a State shall nominate additional popu14 lation census tracts to replace any population 

15 census tract the designation of which as a 

16 qualified opportunity zone was terminated by 

17 reason of paragraph (1). Except as otherwise 

18 provided in this paragraph, the rules of sub19 sections (b), (c), (d), and (f) shall apply to any 

20 population census tract nominated under this 

21 paragraph. 

22 ‘‘(B) CONSULTATION.—No population cen23 sus tract nominated under subparagraph (A) 

24 may be designated as a qualified opportunity 

25 zone unless the chief executive officer of the 


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1 State certifies in writing to the Secretary that 

2 the chief executive officer has consulted with 

3 the chief executive officer (or the equivalent) of 

4 each local jurisdiction in which the population 

5 census tract is located. 

6 ‘‘(C) SPECIAL RULES.—For purposes of 

7 this subchapter— 

8 ‘‘(i) any population census tract which 

9 is a disqualified census tract (as defined in 

10 paragraph (3) without regard to subpara11 graph (A)(i) thereof) may not be nomi12 nated as a qualified opportunity zone 

13 under this paragraph, 

14 ‘‘(ii) the determination period with re15 spect to a nomination under subparagraph 

16 (A) shall be the 45-day period beginning 

17 on the date on which the Secretary pub18 lishes the final list of disqualified census 

19 tracts under paragraph (4)(B), as ex20 tended under subsection (b)(2), and 

21 ‘‘(iii) the period for which any such 

22 designation is in effect shall be the period 

23 beginning on the date such designation 

24 takes effect and ending on the last day of 

25 the 10th calendar year beginning on or 


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1 after the designation date as a qualified 

2 opportunity zone for the population census 

3 tract which it is replacing as such a zone 

4 by reason of the termination under para5 graph (1). 

6 ‘‘(D) REGULATIONS AND GUIDANCE.—The 

7 Secretary shall prescribe such regulations or 

8 other guidance as may be necessary or appro9 priate to carry out the purposes of this para10 graph. 

11 ‘‘(3) DISQUALIFIED CENSUS TRACT.—For pur12 poses of this subsection— 

13 ‘‘(A) IN GENERAL.—The term ‘disqualified 

14 census tract’ means any population census tract 

15 which— 

16 ‘‘(i) was designated as a qualified op17 portunity zone before the date of the en18 actment of this subsection, and 

19 ‘‘(ii) is described in subparagraph (B) 

20 or (C). 

21 ‘‘(B) HIGH MEDIAN FAMILY INCOME

22 TRACTS.— 

23 ‘‘(i) IN GENERAL.—Except as pro24 vided in clauses (ii) and (iii), a population 

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1 graph if the median family income for such 

2 tract exceeds 130 percent of the national 

3 median family income as published by De4 partment of Housing and Urban Develop5 ment or the CDFI Fund. 

6 ‘‘(ii) EXCEPTION.—Clause (i) shall 

7 not apply if the poverty rate of such popu8 lation census tract (excluding students en9 rolled in an institution of higher education 

10 (as defined in section 101 of the Higher 

11 Education Act of 1965)) is equal to or 

12 greater than 30 percent. 

13 ‘‘(iii) REQUEST TO RETAIN DESIGNA14 TION FOR CERTAIN POPULATION CENSUS

15 TRACTS.—Clause (i) shall not apply if the 

16 Secretary, upon a request of the chief exec17 utive officer of the State made not later 

18 than 60 days after the date the Secretary 

19 publishes the list described in paragraph 

20 (4)(A), determines that— 

21 ‘‘(I) the designation of such pop22 ulation census tract was consistent 

23 with the purposes of this subchapter, 

24 or 


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1 ‘‘(II) the median family income 

2 for the population census tract does 

3 not exceed 130 percent of the national 

4 median family income as published by 

5 Department of Housing and Urban 

6 Development or the CDFI Fund. 

7 ‘‘(C) ELECTION TO INCLUDE ADDITIONAL

8 POPULATION CENSUS TRACTS.— 

9 ‘‘(i) IN GENERAL.—A population cen10 sus tract is described in this subparagraph 

11 if the Secretary, upon the request of the 

12 chief executive officer of the State sub13 mitted not later than 60 days after the 

14 date the Secretary publishes the list de15 scribed in paragraph (4)(A), determines 

16 that the continued designation of such pop17 ulation census tract as a qualified oppor18 tunity zone is not consistent with the pur19 poses of this subchapter. 

20 ‘‘(ii) CONSULTATION.—No population 

21 census tract nominated under clause (i) 

22 may be designated as a qualified oppor23 tunity zone unless the chief executive offi24 cer of the State certifies in writing to the 

25 Secretary that the chief executive officer 


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1 has consulted with the chief executive offi2 cer (or the equivalent) of each local juris3 diction in which the population census 

4 tract is located. 

5 ‘‘(iii) REGULATIONS AND GUID6 ANCE.—Not later than the date on which 

7 the Secretary publishes the final list of dis8 qualified census tracts under paragraph 

9 (4)(B), the Secretary shall issue regula10 tions or guidance with respect to the cri11 teria to be used for making a determina12 tion by the Secretary under clause (i). 

13 ‘‘(4) IDENTIFICATION AND PUBLICATION OF

14 DISQUALIFIED CENSUS TRACTS.— 

15 ‘‘(A) INITIAL IDENTIFICATION.—As soon 

16 as practical, but not later than 12 months after 

17 the date of the enactment of this subsection, 

18 the Secretary shall make public— 

19 ‘‘(i) a list of population census tracts 

20 described in paragraph (3)(B) (determined 

21 without regard to clause (iii) thereof), and 

22 ‘‘(ii) a list of population census tracts 

23 which are low-income communities and 

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1 tunity zone before the date of enactment of 

2 this subsection. 

3 ‘‘(B) FINAL LIST OF DISQUALIFIED CEN4 SUS TRACTS.—Not later than 105 days after 

5 the date the Secretary publishes the list de6 scribed in subparagraph (A), the Secretary shall 

7 make public a final list of disqualified census 

8 tracts. 

9 ‘‘(5) RULES FOR QUALIFIED PREEXISTING IN10 VESTMENTS.— 

11 ‘‘(A) IN GENERAL.—For purposes of this 

12 subchapter, section 1400Z–2 shall be applied 

13 without regard to paragraph (1) with respect to 

14 any qualified preexisting trade or business. 

15 ‘‘(B) QUALIFIED PREEXISTING TRADE OR

16 BUSINESS.—For purposes of this paragraph— 

17 ‘‘(i) IN GENERAL.—The term ‘quali18 fied preexisting trade or business’ means 

19 any trade or business of a qualified oppor20 tunity fund or qualified opportunity zone 

21 business which meets the requirements of 

22 clauses (ii) and (iii) of section 1400Z– 

23 2(d)(3)(A) and with respect to which— 

24 ‘‘(I) before the date of the enact25 ment of this subsection, a registration 


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1 statement under the Securities Act of 

2 1933 (15 U.S.C. 77a et seq.) is filed 

3 or any comparable offering memo4 randum or similar disclosure docu5 ment is provided in reliance on section 

6 230.506 of title 17, Code of Federal 

7 Regulations (or successor regulations), 

8 promulgated under the Securities Act 

9 of 1933, that discloses the intent of 

10 such trade or business to invest in the 

11 disqualified census tract, 

12 ‘‘(II) before the first date on 

13 which the disqualified census tract ap14 pears on any list published under 

15 paragraph (4), investments in the dis16 qualified census tract are made or 

17 agreed pursuant to a binding agree18 ment to be made which— 

19 ‘‘(aa) aggregate more than 

20 $250,000, and 

21 ‘‘(bb) have been designated 

22 in writing for the use in, or the 

23 development of, such trade or 

24 business, or 


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1 ‘‘(III) the qualified opportunity 

2 fund or qualified opportunity zone 

3 business is determined by the Sec4 retary to have relied on the designa5 tion of the disqualified census tract as 

6 a qualified opportunity zone and to 

7 have suffered or is expected to suffer 

8 a loss as a result of the application of 

9 paragraph (1). 

10 ‘‘(ii) TRADE OR BUSINESS.—The term 

11 ‘trade or business’ includes any activity in12 tended to qualify as a trade or business 

13 within the meaning of section 162. 

14 ‘‘(C) REGULATIONS AND GUIDANCE.—The 

15 Secretary shall prescribe such regulations or 

16 guidance as may be necessary or appropriate to 

17 carry out the purposes of this paragraph, in18 cluding guidance to prevent speculative invest19 ment solely for the purpose of falling within the 

20 definition of a qualified preexisting trade or 

21 business. 

22 ‘‘(6) DETERMINATION OF POPULATION CENSUS

23 TRACT DATA.—For purposes of applying this sub24 section, in determining whether a population census 

25 tract meets any qualification with respect to poverty 


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1 rate or any aspect of median income, such deter2 mination shall be made using the most recent census 

3 data that has been published by the Bureau of the 

4 Census as of the date of enactment of this sub5 section.’’. 

6 (b) CERTAIN FORMER INDUSTRIAL TRACTS PER7 MITTED TO BE DESIGNATED AS OPPORTUNITY ZONES.— 

8 Section 1400Z–1 of the Internal Revenue Code of 1986, 

9 as amended by section 101, is amended by adding at the 

10 end the following new subsection: 

11 ‘‘(h) SPECIAL RULE FOR FORMER INDUSTRIAL

12 TRACTS CONTIGUOUS TO DESIGNATED OPPORTUNITY

13 ZONES.— 

14 ‘‘(1) IN GENERAL.—For purposes of this chap15 ter, the term ‘qualified opportunity zone’ means an 

16 population census tract which is described in para17 graph (2) and designated as a qualified opportunity 

18 zone under this subsection. 

19 ‘‘(2) POPULATION CENSUS TRACT DE20 SCRIBED.—A population census tract is described in 

21 this subparagraph if— 

22 ‘‘(A) the tract— 

23 ‘‘(i) has a population of zero, 


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1 ‘‘(ii) was previously used for industrial 

2 purposes and is a brownfield industrial 

3 site, and 

4 ‘‘(iii) is contiguous, including by 

5 water, to a population census tract on at 

6 least 1 side that has been designated as a 

7 qualified opportunity zone under this sec8 tion, or 

9 ‘‘(B) the tract was merged, as a result of 

10 the 2020 decennial census, into a census tract 

11 described in subparagraph (A)(iii) and met all 

12 requirements described in subparagraph (A). 

13 ‘‘(3) DESIGNATION.—For purposes of para14 graph (1), a population census tract that is de15 scribed in paragraph (2) is designated as a qualified 

16 opportunity zone if— 

17 ‘‘(A) not later than 30 days after the date 

18 of the enactment of this subsection, the chief 

19 executive officer of the State in which the tract 

20 is located— 

21 ‘‘(i) nominates the tract for designa22 tion as a qualified opportunity zone, and 

23 ‘‘(ii) notifies the Secretary in writing 

24 of such nomination, and 


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1 ‘‘(B) not later than 30 days after receiving 

2 the notification under subparagraph (A)(ii), the 

3 Secretary certifies such nomination and des4 ignates such tract as a qualified opportunity 

5 zone. 

6 ‘‘(4) DETERMINATION OF CENSUS TRACT IN7 FORMATION.—For purposes of this subsection, the 

8 boundaries and population of a census tract shall be 

9 determined based on United States Census Bureau 

10 data for the 2010 decennial census. 

11 ‘‘(5) NUMBER OF DESIGNATIONS.—Population 

12 census tracts designated as a qualified opportunity 

13 zone under this subsection shall not be taken into 

14 account for purposes of subsection (d). 

15 ‘‘(6) DEFINITIONS.—For purposes of this sub16 section— 

17 ‘‘(A) BROWNFIELD INDUSTRIAL SITE.— 

18 The term ‘brownfield industrial site’ means a 

19 population census tract that includes real prop20 erty the expansion, redevelopment, or reuse of 

21 which may be complicated by the presence or 

22 potential presence of a hazardous substance or 

23 pollutant or contaminant, including real prop24 erty covered by a prospective purchaser agree25 ment or similar agreement entered into by the 


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1 Environmental Protection Agency or the appro2 priate State authority. 

3 ‘‘(B) HAZARDOUS SUBSTANCE.—The term 

4 ‘hazardous substance’ means— 

5 ‘‘(i) a hazardous substance as defined 

6 in section 101(14) of the Comprehensive 

7 Environmental Response, Compensation, 

8 and Liability Act of 1980 (42 U.S.C. 

9 9601(14)), or 

10 ‘‘(ii) petroleum or a petroleum prod11 uct. 

12 ‘‘(C) POLLUTANT OR CONTAMINANT.—The 

13 term ‘pollutant or contaminant’ has the mean14 ing given such term in section 101(33) of such 

15 Act.’’. 

16 (c) INFORMATION REPORTING ON QUALIFIED OP17 PORTUNITY FUNDS.— 

18 (1) IN GENERAL.— 

19 (A) FILING REQUIREMENTS FOR FUNDS

20 AND INVESTORS.—Subpart A of part III of sub21 chapter A of chapter 61 of the Internal Rev22 enue Code of 1986 is amended by inserting 

23 after section 6039J the following new sections: 


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1 ‘‘SEC. 6039K. RETURNS WITH RESPECT TO QUALIFIED OP2 PORTUNITY FUNDS. 

3 ‘‘(a) IN GENERAL.—Every qualified opportunity fund 

4 shall file an annual return (at such time and in such man5 ner as the Secretary may prescribe) containing the infor6 mation described in subsection (b). 

7 ‘‘(b) INFORMATION FROM QUALIFIED OPPORTUNITY

8 FUNDS.—The information described in this subsection 

9 is— 

10 ‘‘(1) the name, address, and taxpayer identifica11 tion number of the qualified opportunity fund, 

12 ‘‘(2) whether the qualified opportunity fund is 

13 organized as a corporation or a partnership, 

14 ‘‘(3) the value of the total assets held by the 

15 qualified opportunity fund as of each date described 

16 in section 1400Z–2(d)(1), 

17 ‘‘(4) the value of all qualified opportunity zone 

18 property held by the qualified opportunity fund on 

19 each such date, 

20 ‘‘(5) with respect to each investment held by 

21 the qualified opportunity fund in qualified oppor22 tunity zone stock or a qualified opportunity zone 

23 partnership interest— 

24 ‘‘(A) the name, address, and taxpayer 

25 identification number of the corporation in 


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1 which such stock is held or the partnership in 

2 which such interest is held, as the case may be, 

3 ‘‘(B) each North American Industry Clas4 sification Code that applies to the trades or 

5 businesses conducted by such corporation or 

6 partnership, 

7 ‘‘(C) the population census tracts in which 

8 the qualified opportunity zone business property 

9 of such corporation or partnership is located, 

10 ‘‘(D) the amount of the investment in such 

11 stock or partnership interest as of each date de12 scribed in section 1400Z–2(d)(1), 

13 ‘‘(E) the value, as determined under regu14 lations issued by the Secretary, of tangible 

15 property held by such corporation or partner16 ship on each such date which is owned by such 

17 corporation or partnership, 

18 ‘‘(F) the value, as determined under regu19 lations issued by the Secretary, of tangible 

20 property held by such corporation or partner21 ship on each such date which is leased by such 

22 corporation or partnership, 

23 ‘‘(G) the information described in para24 graph (6)(E) with respect to buildings with 1 or 


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1 more residential rental units which are held by 

2 such corporation or partnership, and 

3 ‘‘(H) the approximate average monthly 

4 number of full-time equivalent employees of 

5 such corporation or partnership for the year 

6 (within numerical ranges identified by the Sec7 retary) or such other indication of the employ8 ment impact of such corporation or partnership 

9 as determined appropriate by the Secretary, 

10 which shall account for direct and indirect, tem11 porary and permanent jobs, 

12 ‘‘(6) with respect to the items of qualified op13 portunity zone business property held by the quali14 fied opportunity fund— 

15 ‘‘(A) the North American Industry Classi16 fication Code that applies to the trades or busi17 nesses in which such property is held, 

18 ‘‘(B) the population census tract in which 

19 the property is located, 

20 ‘‘(C) whether the property is owned or 

21 leased, 

22 ‘‘(D) the aggregate value, as determined 

23 under regulations issued by the Secretary, of 

24 the items of qualified opportunity zone property 

25 held by the qualified opportunity fund as of 


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1 each date described in section 1400Z–2(d)(1), 

2 and 

3 ‘‘(E) in the case of each building with 1 or 

4 more residential rental units— 

5 ‘‘(i) the total number of such residen6 tial rental units, 

7 ‘‘(ii) the number of such units occu8 pied by tenants with an income of 50 per9 cent or less of area median income ad10 justed for family size, 

11 ‘‘(iii) the number of such units occu12 pied by tenants with an income in excess 

13 of 50 percent, but not exceeding 60 per14 cent of area median income adjusted for 

15 family size, and 

16 ‘‘(iv) whether— 

17 ‘‘(I) at least 20 percent of such 

18 units are occupied by tenants de19 scribed in clause (ii), or 

20 ‘‘(II) at least 40 percent of such 

21 units are occupied by tenants with in22 come averaging not more than 60 per23 cent of area median income adjusted 

24 for family size, 


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1 ‘‘(7) the approximate average monthly number 

2 of full-time equivalent employees for the year of the 

3 trades or businesses of the qualified opportunity 

4 fund in which qualified opportunity zone business 

5 property is held (within numerical ranges identified 

6 by the Secretary) or such other indication of the em7 ployment impact of such trades or businesses as de8 termined appropriate by the Secretary, which shall 

9 account for direct and indirect, temporary and per10 manent jobs, 

11 ‘‘(8) with respect to each person who disposed 

12 of an investment in the qualified opportunity fund 

13 during the year— 

14 ‘‘(A) the name and taxpayer identification 

15 number of such person, 

16 ‘‘(B) the date or dates on which the invest17 ment disposed was acquired, and 

18 ‘‘(C) the date or dates on which any such 

19 investment was disposed and the amount of the 

20 investment disposed, and 

21 ‘‘(9) such other information as the Secretary 

22 may require. 

23 ‘‘(c) STATEMENT REQUIRED TO BE FURNISHED TO

24 INVESTORS.—Every person required to make a return 

25 under subsection (a) shall furnish to each person whose 


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1 name is required to be set forth in such return by reason 

2 of subsection (b)(8) a written statement showing— 

3 ‘‘(1) the name, address and phone number of 

4 the information contact of the person required to 

5 make such return, and 

6 ‘‘(2) the information required to be shown on 

7 such return by reason of subsection (b)(8) with re8 spect to such person. 

9 ‘‘(d) DEFINITIONS.—For purposes of this section— 

10 ‘‘(1) IN GENERAL.—Any term used in this sec11 tion which is also used in subchapter Z of chapter 

12 1 shall have the meaning given such term under 

13 such subchapter. 

14 ‘‘(2) FULL-TIME EQUIVALENT EMPLOYEES.— 

15 The term ‘full-time equivalent employees’ means, 

16 with respect to any month, the sum of— 

17 ‘‘(A) the number of full-time employees (as 

18 defined in section 4980H(c)(4)) for the month, 

19 plus 

20 ‘‘(B) the number of employees determined 

21 (under rules similar to the rules of section 

22 4980H(c)(2)(E)) by dividing the aggregate 

23 number of hours of service of employees who 

24 are not full-time employees for the month by 

25 120. 


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1 ‘‘SEC. 6039L. INFORMATION ON PERSONS INVESTING IN 

2 QUALIFIED OPPORTUNITY FUNDS. 

3 ‘‘(a) IN GENERAL.—Every taxpayer who makes an 

4 investment in a qualified opportunity fund shall provide 

5 an annual statement (at such time and in such manner 

6 as the Secretary may prescribe) containing the informa7 tion described in subsection (b) with respect to each such 

8 investment. 

9 ‘‘(b) INFORMATION FROM INVESTORS.—The infor10 mation described in this subsection is— 

11 ‘‘(1) the name, address, and taxpayer identifica12 tion number of the taxpayer, 

13 ‘‘(2) the name and taxpayer identification num14 ber of the qualified opportunity fund in which the 

15 investment was made, 

16 ‘‘(3) a description of such investment, 

17 ‘‘(4) the date such investment was made, 

18 ‘‘(5) the amount of short-term and long-term 

19 capital gains for which an election was made under 

20 section 1400Z–2(a)(1) for such investment, 

21 ‘‘(6) in the case of any disposition of any in22 vestment in a qualified opportunity fund during the 

23 taxable year— 

24 ‘‘(A) a description of the investment dis25 posed, 

26 ‘‘(B) the date of the disposition, and 


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1 ‘‘(C) the amount of any previously deferred 

2 short-term and long-term capital gain included 

3 in income as a result of such disposition, and 

4 ‘‘(7) such other information as the Secretary 

5 may require. 

6 ‘‘(c) DEFINITIONS.—Any term used in this section 

7 which is also used in subchapter Z of chapter 1 shall have 

8 the meaning given such term under such subchapter. 

9 ‘‘SEC. 6039M. INFORMATION REQUIRED FROM CERTAIN 

10 QUALIFIED OPPORTUNITY ZONE BUSI11 NESSES. 

12 ‘‘(a) IN GENERAL.—Every applicable qualified oppor13 tunity zone business shall furnish to the qualified oppor14 tunity fund described in subsection (b) a written state15 ment in such manner and setting forth such information 

16 as the Secretary may by regulations prescribe for purposes 

17 of enabling such qualified opportunity fund to meet the 

18 requirements of section 6039(b)(5). 

19 ‘‘(b) APPLICABLE QUALIFIED OPPORTUNITY ZONE

20 BUSINESS.—For purposes of subsection (a), the term ‘ap21 plicable qualified opportunity zone business’ means any 

22 qualified opportunity zone business (as defined in section 

23 1400Z–2(d)(3))— 

24 ‘‘(1) which is a trade or business of a qualified 

25 opportunity fund, 


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1 ‘‘(2) in which a qualified opportunity fund holds 

2 qualified opportunity zone stock, or 

3 ‘‘(3) in which a qualified opportunity fund holds 

4 a qualified opportunity zone partnership interest. 

5 ‘‘(c) OTHER TERMS.—Any term used in this section 

6 which is also used in subchapter Z of chapter 1 shall have 

7 the meaning given such term under such subchapter.’’. 

8 (B) PENALTIES.— 

9 (i) IN GENERAL.—Part II of sub10 chapter B of chapter 68 of the Internal 

11 Revenue Code of 1986 is amended by in12 serting after section 6725 the following 

13 new section: 

14 ‘‘SEC. 6726. FAILURE TO COMPLY WITH INFORMATION RE15 PORTING REQUIREMENTS RELATING TO 

16 QUALIFIED OPPORTUNITY FUNDS. 

17 ‘‘(a) INFORMATION RETURNS BY QUALIFIED OPPOR18 TUNITY FUNDS.— 

19 ‘‘(1) IN GENERAL.—In the case of any person 

20 required to file a return under section 6039K fails 

21 to file a complete and correct return under such sec22 tion in the time and in the manner prescribed there23 for, such person shall pay a penalty of $500 for each 

24 day during which such failure continues. 

25 ‘‘(2) LIMITATION.— 


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1 ‘‘(A) IN GENERAL.—The maximum penalty 

2 under this subsection on failures with respect to 

3 any 1 return shall not exceed $10,000. 

4 ‘‘(B) LARGE QUALIFIED OPPORTUNITY

5 FUNDS.—In the case of any failure described in 

6 paragraph (1) with respect to a fund the gross 

7 assets of which (determined on the last day of 

8 the taxable year) are in excess of $10,000,000, 

9 subparagraph (A) shall be applied by sub10 stituting ‘$50,000’ for ‘$10,000’. 

11 ‘‘(3) REDUCTION WHERE CORRECTION IN SPEC12 IFIED PERIOD.—If any failure described in para13 graph (1) is corrected on or before the day 60 days 

14 after the due date (including extensions) for filing 

15 the return, the penalty imposed by paragraph (1) 

16 shall be $500 in lieu of the amount determined 

17 under such paragraph. 

18 ‘‘(4) DE MINIMIS ERRORS.—If— 

19 ‘‘(A) there are one or more such failures 

20 described in paragraph (1) relating to an incor21 rect dollar amount, and no single amount in 

22 error differs from the correct amount by more 

23 than $100, or 

24 ‘‘(B) there are one or more such failures 

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1 merical amount and such error is inconsequen2 tial, then no correction shall be required, and, 

3 for purposes of this section, such statement 

4 shall be treated as having been filed with all 

5 correct required information. 

6 ‘‘(5) PENALTY IN CASES OF INTENTIONAL DIS7 REGARD.—If a failure described in paragraph (1) is 

8 due to intentional disregard, then— 

9 ‘‘(A) paragraph (1) shall be applied by 

10 substituting ‘$2,500’ for ‘$500’, 

11 ‘‘(B) paragraph (2)(A) shall be applied by 

12 substituting ‘$50,000’ for ‘$10,000’, and 

13 ‘‘(C) paragraph (2)(B) shall be applied by 

14 substituting ‘$250,000’ for ‘$50,000’. 

15 ‘‘(6) INFLATION ADJUSTMENT.— 

16 ‘‘(A) IN GENERAL.—In the case of any 

17 failure relating to a return required to be filed 

18 in a calendar year beginning after 2023, each 

19 of the dollar amounts in paragraphs (1), (2), 

20 (3), and (5) shall be increased by an amount 

21 equal to such dollar amount multiplied by the 

22 cost-of-living adjustment determined under sec23 tion 1(f)(3) for the calendar year determined by 

24 substituting ‘calendar year 2022’ for ‘calendar 

25 year 2016’ in subparagraph (A)(ii) thereof. 


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1 ‘‘(B) ROUNDING.— 

2 ‘‘(i) IN GENERAL.—If the $500 dollar 

3 amount in paragraph (1), (3), or (5)(A) or 

4 the $2,500 amount in paragraph (5)(A), 

5 after being increased under subparagraph 

6 (A), is not a multiple of $10, such dollar 

7 amount shall be rounded to the next lowest 

8 multiple of $10. 

9 ‘‘(ii) ASSET THRESHOLD.—If the 

10 $10,000,000 dollar amount in paragraph 

11 (2)(B), after being increased under sub12 paragraph (A), is not a multiple of 

13 $10,000, such dollar amount shall be 

14 rounded to the next lowest multiple of 

15 $10,000. 

16 ‘‘(iii) OTHER DOLLAR AMOUNTS.—If 

17 any dollar amount in paragraph (2), (3), 

18 or (5) (other than any amount to which 

19 clause (i) or (ii) applies), after being in20 creased under subparagraph (A), is not a 

21 multiple of $1,000, such dollar amount 

22 shall be rounded to the next lowest mul23 tiple of $1,000. 

24 ‘‘(b) STATEMENTS BY INVESTORS.— 

25 ‘‘(1) IN GENERAL.—If— 


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1 ‘‘(A) any person is required to file a state2 ment under section 6039L for any period, and 

3 ‘‘(B) fails— 

4 ‘‘(i) to file such statement on or be5 fore the required filing date, or 

6 ‘‘(ii) fails to include all of the infor7 mation required to be shown on the state8 ment or includes incorrect information, 

9 such person shall pay a penalty of $5,000. 

10 ‘‘(2) REDUCTION WHERE CORRECTION IN SPEC11 IFIED PERIOD.—If any failure described in para12 graph (1)(B) is corrected on or before the day 60 

13 days after the due date (including extensions) for fil14 ing the return, the penalty imposed by paragraph 

15 (1) shall be $500 in lieu of the amount determined 

16 under such paragraph. 

17 ‘‘(3) DE MINIMIS ERRORS.—If— 

18 ‘‘(A) there are one or more such failures 

19 described in paragraph (1)(B)(ii) relating to an 

20 incorrect dollar amount, and no single amount 

21 in error differs from the correct amount by 

22 more than $100, or 

23 ‘‘(B) there are one or more such failures 

24 described in paragraph (1)(B)(ii) relating to a 


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1 non-numerical amount and such error is incon2 sequential, 

3 then no correction shall be required, and, for pur4 poses of this section, such statement shall be treated 

5 as having been filed with all correct required infor6 mation. 

7 ‘‘(4) PENALTY IN CASES OF INTENTIONAL DIS8 REGARD.—If one or more failures described in para9 graph (1)(B) are due to intentional disregard of the 

10 filing requirement (or the correct information report11 ing requirement), then, with respect to each such 

12 failure— 

13 ‘‘(A) paragraphs (2) and (3) shall not 

14 apply, and 

15 ‘‘(B) the amount of the penalty determined 

16 under paragraph (1) shall be $25,000. 

17 ‘‘(5) INFLATION ADJUSTMENT.— 

18 ‘‘(A) IN GENERAL.—In the case of any 

19 failure relating to a statement required to be 

20 filed in a calendar year beginning after 2023, 

21 each of the dollar amounts in paragraphs (1), 

22 (2), and (4) shall be increased by an amount 

23 equal to such dollar amount multiplied by the 

24 cost-of-living adjustment determined under sec25 tion 1(f)(3) for the calendar year determined by 


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1 substituting ‘calendar year 2022’ for ‘calendar 

2 year 2016’ in subparagraph (A)(ii) thereof. 

3 ‘‘(B) ROUNDING.—The amount of any in4 crease under subparagraph (A) shall be round5 ed to the nearest multiple of $100 ($10 in the 

6 case of any increase in the amount under para7 graph (2)).’’. 

8 (ii) INFORMATION REQUIRED TO BE

9 SENT TO OTHER TAXPAYERS.—Section 

10 6724(d)(2) of such Code is amended— 

11 (I) by striking ‘‘or’’ at the end of 

12 subparagraph (II), 

13 (II) by striking the period at the 

14 end of the first subparagraph (JJ) 

15 (relating to section 6226) and insert16 ing a comma, 

17 (III) by redesignating the second 

18 subparagraph (JJ) (relating to section 

19 6050Y) as subparagraph (KK), 

20 (IV) by striking the period at the 

21 end of subparagraph (KK) (as redes22 ignated by subclause (III)) and insert23 ing a comma, and 


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1 (V) by inserting after subpara2 graph (KK) (as so redesignated) the 

3 following new subparagraphs: 

4 ‘‘(LL) section 6039K(c) (relating to dis5 position of qualified opportunity fund invest6 ments), or 

7 ‘‘(MM) section 6039M (relating to infor8 mation required from certain qualified oppor9 tunity zone businesses).’’. 

10 (C) ELECTRONIC FILING.—Section 

11 6011(e) of such Code is amended by adding at 

12 the end the following new paragraph: 

13 ‘‘(8) QUALIFIED OPPORTUNITY FUNDS.—Not14 withstanding paragraphs (1) and (2), any return 

15 filed by a qualified opportunity fund shall be filed on 

16 magnetic media or other machine-readable form.’’. 

17 (D) CLERICAL AMENDMENTS.— 

18 (i) The table of sections for subpart A 

19 of part III of subchapter A of chapter 61 

20 of such Code is amended by inserting after 

21 the item relating to section 6039J the fol22 lowing new items: 

‘‘Sec. 6039K. Returns with respect to qualified opportunity funds. 

‘‘Sec. 6039L. Information on persons investing in qualified opportunity funds. 

‘‘Sec. 6039M. Information required from certain qualified opportunity zone 

businesses.’’. 


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1 (ii) The table of sections for part II of 

2 subchapter B of chapter 68 of such Code 

3 is amended by inserting after the item re4 lating to section 6725 the following new 

5 item: 

‘‘Sec. 6726. Failure to comply with information reporting requirements relating 

to qualified opportunity funds.’’. 

6 (E) EFFECTIVE DATE.—The amendments 

7 made by this paragraph shall apply to taxable 

8 years beginning after the date of the enactment 

9 of this Act. 

10 (2) REPORTING OF DATA ON OPPORTUNITY

11 ZONE TAX INCENTIVES.— 

12 (A) IN GENERAL.—As soon as practical 

13 after the date of the enactment of this Act, and 

14 annually thereafter, the Secretary of the Treas15 ury, or the Secretary’s delegate (referred to in 

16 this section as the ‘‘Secretary’’), in consultation 

17 with the Director of the Bureau of the Census 

18 and such other agencies as the Secretary deter19 mines appropriate, shall make publicly available 

20 a report on qualified opportunity funds. 

21 (B) INFORMATION INCLUDED.—The report 

22 required under subparagraph (A) shall include, 

23 to the extent available, the following informa24 tion: 


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1 (i) The number of qualified oppor2 tunity funds. 

3 (ii) The aggregate dollar amount of 

4 assets held in qualified opportunity funds. 

5 (iii) The aggregate dollar amount of 

6 investments made by qualified opportunity 

7 funds in qualified opportunity fund prop8 erty across each industry class under the 

9 North American Industry Classification 

10 Code. 

11 (iv) The percentage of population cen12 sus tracts designated as qualified oppor13 tunity zones that have received qualified 

14 opportunity fund investments. 

15 (v) For each population census tract 

16 designated as a qualified opportunity zone, 

17 the approximate average monthly number 

18 of full-time equivalent employees of the 

19 qualified opportunity zone businesses in 

20 such qualified opportunity zone for the 

21 preceding 12-month period (within numer22 ical ranges identified by the Secretary) or 

23 such other indication of the employment 

24 impact of such qualified opportunity fund 


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1 businesses as determined appropriate by 

2 the Secretary. 

3 (vi) The percentage of the total 

4 amount of investments made directly or in5 directly by qualified opportunity funds 

6 in— 

7 (I) qualified opportunity zone 

8 business property which is real prop9 erty; and 

10 (II) other qualified opportunity 

11 zone business property. 

12 (vii) For each population census tract, 

13 the aggregate approximate number of resi14 dential units resulting from investments 

15 made by qualified opportunity funds in 

16 real property. 

17 (viii) The aggregate dollar amount of 

18 investments made by qualified opportunity 

19 funds in each population census tract. 

20 (C) ADDITIONAL INFORMATION.— 

21 (i) IN GENERAL.—Beginning with the 

22 report submitted under subparagraph (A) 

23 for the 6th year after the date of the en24 actment of this Act, the Secretary shall in25 clude in such report the impacts and outVerDate Sep 11 2014 02:04 Oct 30, 2024 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H10009.IH H10009

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1 comes of a designation of a population cen2 sus tract as a qualified opportunity zone as 

3 measured by economic indicators, such as 

4 job creation, poverty reduction, new busi5 ness starts, and other metrics as deter6 mined by the Secretary. 

7 (ii) SEMI-DECENNIAL INFORMA8 TION.— 

9 (I) IN GENERAL.—In the case of 

10 any report submitted under subpara11 graph (A) in the 6th year or the 11th 

12 year after the date of the enactment 

13 of this Act, the Secretary shall include 

14 the following information: 

15 (aa) For population census 

16 tracts designated as a qualified 

17 opportunity zone, a comparison 

18 (based on aggregate information) 

19 of the factors listed in subclause 

20 (III) between the 5-year period 

21 ending on the date of the enact22 ment of Public Law 115–97 and 

23 the most recent 5-year period for 

24 which data is available. 


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1 (bb) For population census 

2 tracts designated as a qualified 

3 opportunity zone, a comparison 

4 (based on aggregate information) 

5 of the factors listed in subclause 

6 (III) for the most recent 5-year 

7 period for which data is available 

8 between such population census 

9 tracts and a similar population 

10 census tracts that were not des11 ignated as a qualified opportunity 

12 zone. 

13 (II) CONTROL GROUPS.—For 

14 purposes of subclause (I), the Sec15 retary may combine population census 

16 tracts into such groups as the Sec17 retary determines appropriate for pur18 poses of making comparisons. 

19 (III) FACTORS LISTED.—The 

20 factors listed in this subclause are the 

21 following: 

22 (aa) The unemployment 

23 rate. 

24 (bb) The number of persons 

25 working in the population census 


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1 tract, including the percentage of 

2 such persons who were not resi3 dents in the population census 

4 tract in the preceding year. 

5 (cc) Individual, family, and 

6 household poverty rates. 

7 (dd) Median family income 

8 of residents of the population 

9 census tract. 

10 (ee) Demographic informa11 tion on residents of the popu12 lation census tract, including age, 

13 income, education, race, and em14 ployment. 

15 (ff) The average percentage 

16 of income of residents of the pop17 ulation census tract spent on rent 

18 annually. 

19 (gg) The number of resi20 dences in the population census 

21 tract. 

22 (hh) The rate of home own23 ership in the population census 

24 tract. 


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1 (ii) The average value of 

2 residential property in the popu3 lation census tract. 

4 (jj) The number of afford5 able housing units in the popu6 lation census tract. 

7 (kk) The number and per8 centage of residents in the popu9 lation census tract that were not 

10 employed for the preceding year. 

11 (ll) The number of new busi12 ness starts in the population cen13 sus tract. 

14 (mm) The distribution of 

15 employees in the population cen16 sus tract by North American In17 dustry Classification Code. 

18 (D) PROTECTION OF IDENTIFIABLE RE19 TURN INFORMATION.—In making reports re20 quired under this paragraph, the Secretary— 

21 (i) shall establish appropriate proce22 dures to ensure that any amounts reported 

23 do not disclose taxpayer return information 

24 that can be associated with any particular 


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1 taxpayer or competitive or proprietary in2 formation, 

3 (ii) if necessary to protect taxpayer 

4 return information, may combine informa5 tion required with respect to individual 

6 population census tracts into larger geo7 graphic areas, and 

8 (iii) shall treat any violation of this 

9 subparagraph as a violation of section 

10 6103. 

11 (E) DEFINITIONS.—Any term used in this 

12 paragraph which is also used in subchapter Z 

13 of chapter 1 of the Internal Revenue Code of 

14 1986 shall have the meaning given such term 

15 under such subchapter. 

16 (d) EXTENSION OF DEFERRAL AND INVESTMENT

17 PERIOD.— 

18 (1) IN GENERAL.—Subparagraph (B) of sec19 tions 1400Z–2(a)(2) and 1400Z–2(b)(1) of the In20 ternal Revenue Code of 1986 is amended by striking 

21 ‘‘December 31, 2026’’ and inserting ‘‘December 31, 

22 2028’’. 

23 (2) EFFECTIVE DATE.—The amendment made 

24 by this subsection shall apply to amounts invested 

25 after December 22, 2017. 


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1 (e) MODIFICATION OF DEFINITION OF QUALIFIED

2 OPPORTUNITY FUND.— 

3 (1) IN GENERAL.—Section 1400Z–2(d)(1) of 

4 the Internal Revenue Code of 1986 is amended to 

5 read as follows: 

6 ‘‘(1) IN GENERAL.—The term ‘qualified oppor7 tunity fund’ means— 

8 ‘‘(A) any qualified feeder fund, or 

9 ‘‘(B) any other investment vehicle if— 

10 ‘‘(i) such investment vehicle is orga11 nized as a corporation or a partnership for 

12 the purpose of investing in qualified oppor13 tunity zone property (other than another 

14 qualified opportunity fund), and 

15 ‘‘(ii) such investment vehicle holds at 

16 least 90 percent of its assets in qualified 

17 opportunity zone property, determined by 

18 the average of the percentage of qualified 

19 opportunity zone property held in the fund 

20 as measured— 

21 ‘‘(I) on the last day of the first 

22 6-month period of the taxable year of 

23 the fund, and 

24 ‘‘(II) on the last day of the tax25 able year of the fund.’’. 


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1 (2) QUALIFIED FEEDER FUND.—Section 

2 1400Z–2(d) of such Code is amended by adding at 

3 the end the following new paragraph: 

4 ‘‘(4) QUALIFIED FEEDER FUND.—The term 

5 ‘qualified feeder fund’ means any investment vehicle 

6 that invests in a qualified opportunity fund if— 

7 ‘‘(A) such investment vehicle is organized 

8 as a domestic partnership for the purpose of in9 vesting in one more corporations or partner10 ships described in paragraph (1)(B), 

11 ‘‘(B) all investments made in the invest12 ment vehicle are made in cash, and 

13 ‘‘(C) not less than 95 percent of the assets 

14 of which are equity investments in corporations 

15 or partnerships described in paragraph (1)(B) 

16 as measured— 

17 ‘‘(i) on the last day of the first 6- 

18 month period of the taxable year of the 

19 feeder fund, and 

20 ‘‘(ii) on the last day of the tax- able 

21 year of the feeder fund.’’. 

22 (3) EFFECTIVE DATE.—The amendments made 

23 by this subsection shall take effect on the date of the 

24 enactment of this Act. 

25 (f) STATE AND COMMUNITY DYNAMISM FUND.— 


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1 (1) ESTABLISHMENT.—There is established a 

2 State and Community Dynamism Fund to support 

3 public and private investment, including capital for 

4 qualified opportunity zones designated under section 

5 1400Z–1(a) of the Internal Revenue Code of 1986, 

6 and existing small business and community economic 

7 development programs and incentives, to under8 served businesses and communities. 

9 (2) ALLOCATION.— 

10 (A) IN GENERAL.—Funds appropriated to 

11 the State and Community Dynamism Fund 

12 shall be allocated to States. 

13 (B) FORMULA.— 

14 (i) IN GENERAL.—The Secretary of 

15 the Treasury shall determine the allocation 

16 by allocating Federal funds among the 

17 States based on the proportion of prime 

18 working age adults not employed in each 

19 State bears to the total of prime working 

20 age adults not employed for all the States. 

21 (ii) MINIMUM ALLOCATION.—The Sec22 retary shall adjust the allocations under 

23 clause (i) for each State to the extent nec24 essary to ensure that no State receives less 

25 than 0.9 percent of the Federal funds. 


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1 (C) REQUIREMENT.—To receive an alloca2 tion under subparagraph (B), a State shall cer3 tify that the State will use funds to— 

4 (i) build capacity in high-poverty, 

5 underbanked, rural, and otherwise under6 served communities; 

7 (ii) advance investment in minority-, 

8 women, and veteran-owned businesses; 

9 (iii) address workforce development in 

10 strategic sectors of the State’s economy; 

11 and 

12 (iv) align priorities to support 

13 affordably priced housing. 

14 (D) SUBALLOCATION.—A State may spend 

15 funds allocated under this paragraph directly or 

16 suballocate the funds to other entities, including 

17 units of general local government and non18 profits. 

19 (E) ELIGIBLE USES.—Funds allocated 

20 under this paragraph shall be used for any eli21 gible use in a low-income community, as defined 

22 in section 45D(e) of the Internal Revenue Code 

23 of 1986, including for— 

24 (i) operating support and community 

25 capacity building, with priority to given to 


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1 operating support and community capacity 

2 building in qualified opportunity zones, in3 cluding— 

4 (I) personnel to support activi5 ties, including coordination, education, 

6 and investment; 

7 (II) community-level capacity 

8 building, training, and strategic plan9 ning; and 

10 (III) outreach, technical assist11 ance, and professional services to un12 derserved businesses and underserved 

13 opportunity zone fund managers; 

14 (ii) high-impact projects, including— 

15 (I) predevelopment costs associ16 ated with individual Qualified Oppor17 tunity Zone projects; and 

18 (II) risk mitigation for qualified 

19 opportunity zone funds; and 

20 (iii) administrative costs, not to ex21 ceed 3 percent of the funds allocated. 

22 (F) ELIGIBLE PROJECTS.—Funds used for 

23 high-impact project activities, as described in 

24 subparagraph (E)(ii), shall only be used for— 


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1 (i) business with less than 200 em2 ployees; 

3 (ii) projects that provide community 

4 goods or services, including health care, so5 cial services, healthy food access, edu6 cation, broadband, and culture; or 

7 (iii) affordable housing with at least 

8 50 percent of the units that are affordable 

9 to families making less than 80 percent of 

10 area median family income. 

11 (G) PRIORITIZATION.—A State that re12 ceives funds under this subsection must 

13 prioritize activities that— 

14 (i) promote investment in projects 

15 that substantially support minorities, as 

16 defined in section 1204(c) of the Financial 

17 Institutions Reform, Recovery, and En18 forcement Act of 1989 (12 U.S.C. 1811 

19 note), or other targeted populations, as de20 fined in section 103 of the Riegle Commu21 nity Development and Regulatory Improve22 ment Act of 1994 (12 U.S.C. 4702); and 

23 (ii) have demonstrated meaningful en24 gagement with community stakeholders. 


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1 (3) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated 

3 $1,000,000,000 to carry out this subsection. 

4 (4) GAO AUDIT.—The Comptroller General of 

5 the United States shall perform an annual audit of 

6 the Fund and submit to the appropriate committees 

7 of Congress a report containing the results of the 

8 audit. 

9 (5) ANNUAL REPORT.—Not later than March 

10 31 of each year, each State receiving funds under 

11 this subsection shall submit to the Secretary a re12 port on the performance of the State and partici13 pating entities in the State that includes— 

14 (A) an accounting of the expenditure of 

15 funds received by the State, including on ad16 ministrative or indirect costs; 

17 (B) information on the number and char18 acteristics of participants served under this sub19 section; and 

20 (C) a summary describing the training, ca21 pacity-building, and technical assistance offered 

22 by the State and participating entities. 

23 (6) DEFINITIONS.—In this subsection: 

24 (A) PRIME WORKING AGE ADULTS NOT

25 EMPLOYED.—The term ‘‘prime working age 


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1 adults not employed’’ means, with respect to a 

2 State, the share of the adult population aged 25 

3 to 54 that was not employed for the most re4 cent year for which data is available. 

5 (B) STATE.—The term ‘‘State’’ includes 

6 the District of Columbia, any territory or pos7 session of the United States, and any Indian 

8 Tribe. 

9 SEC. 103. QUALIFYING ORDINARY INCOME ADDED TO SPE10 CIAL RULES FOR INVESTMENTS IN OPPOR11 TUNITY ZONES. 

12 (a) IN GENERAL.—Section 1400Z–2 of the Internal 

13 Revenue Code of 1986 is amended— 

14 (1) in the section heading, by striking ‘‘CAP15 ITAL GAINS INVESTED’’ and inserting ‘‘INVEST16 MENTS’’, 

17 (2) in subsection (a)— 

18 (A) in paragraph (1)— 

19 (i) in the heading, by inserting 

20 ‘‘QUALIFYING ORDINARY INCOME AND’’ 

21 after ‘‘OF’’, 

22 (ii) by inserting ‘‘qualifying ordinary 

23 income and’’ after ‘‘case of’’, 

24 (iii) by amending subparagraph (A) to 

25 read as follows: 


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1 ‘‘(A) gross income for the taxable year 

2 shall not include— 

3 ‘‘(i) so much of such gain as does not 

4 exceed the aggregate amount invested by 

5 the taxpayer in a qualified opportunity 

6 fund during the 180-day period beginning 

7 on the date of such sale or exchange, and 

8 ‘‘(ii) so much of such qualifying ordi9 nary income as does not exceed the aggre10 gate amount invested by the taxpayer in a 

11 qualified opportunity fund during such tax12 able year,’’, and 

13 (iv) in subparagraph (B), by inserting 

14 ‘‘qualifying ordinary income and’’ after 

15 ‘‘amount of’’, 

16 (B) in paragraph (2)— 

17 (i) in subparagraph (A), by striking 

18 ‘‘or’’ at the end, 

19 (ii) in subparagraph (B), by striking 

20 the period at the end and inserting ‘‘, or’’, 

21 and 

22 (iii) by adding at the end the fol23 lowing: 


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1 ‘‘(C) with respect to qualified ordinary in2 come received in a taxable year beginning after 

3 December 31, 2026.’’, and 

4 (C) by adding at the end the following: 

5 ‘‘(3) QUALIFYING ORDINARY INCOME DE6 FINED.—In this subsection, the term ‘qualifying or7 dinary income’ means ordinary income other than 

8 income attributable to capital gains.’’, 

9 (3) in subsection (b)— 

10 (A) in the subsection heading, by inserting 

11 ‘‘QUALIFYING ORDINARY INCOME AND’’ after 

12 ‘‘DEFERRAL OF’’, 

13 (B) in paragraph (1), by striking ‘‘Gain’’ 

14 and inserting ‘‘Qualifying ordinary income and 

15 gain’’, and 

16 (C) in paragraph (2)— 

17 (i) in subparagraph (A)— 

18 (I) by inserting ‘‘qualifying ordi19 nary income and’’ after ‘‘amount of’’, 

20 and 

21 (II) in clause (i), by striking ‘‘of 

22 gain’’, and 

23 (ii) in subparagraph (B)— 


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1 (I) in the clause (ii) heading, by 

2 striking ‘‘GAIN’’ and inserting 

3 ‘‘AMOUNT’’, and 

4 (II) by striking ‘‘the amount of 

5 gain’’ each place it appears and in6 serting ‘‘the amount’’, and 

7 (4) in subsection (e)(1), by inserting ‘‘quali8 fying ordinary income and’’ after ‘‘investments of’’. 

9 (b) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to amounts invested after the date 

11 of the enactment of this Act. 

12 SEC. 104. RELIEVING STRAIN FROM SHORTAGES OF TRANS13 FORMERS. 

14 Section 321(35) of the Energy Policy and Conserva15 tion Act (42 U.S.C. 6291(35)) is amended by adding at 

16 the end the following: 

17 ‘‘(C) EFFICIENCY LEVEL.—The Secretary 

18 shall not finalize any rule under which the effi19 ciency level of a liquid-immersed type, low volt20 age dry type, or medium voltage dry type dis21 tribution transformer is greater than trial 

22 standard level 2 (as described in table V.1 in 

23 the proposed rule entitled ‘Energy Conservation 

24 Program: Energy Conservation Standards for 


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1 Distribution Transformers’ (88 Fed. Reg. 1722 

2 (January 11, 2023))). 

3 ‘‘(D) EFFECTIVE DATE FOR CERTAIN

4 RULES.—Any rule finalized by the Secretary 

5 under which the efficiency level of a liquid-im6 mersed type, low voltage dry type, or medium 

7 voltage dry-type distribution transformer is trial 

8 standard level 1 or 2 (as described in table V.1 

9 in the proposed rule entitled ‘Energy Conserva10 tion Program: Energy Conservation Standards 

11 for Distribution Transformers’ (88 Fed. Reg. 

12 1722 (January 11, 2023))) shall not take effect 

13 until 10 years after the date on which the rule 

14 is finalized.’’. 

15 SEC. 105. INCENTIVIZING ZONING REFORM. 

16 (a) PURPOSE.—The purpose of this section is to dis17 courage the use of discriminatory land use policies and 

18 remove barriers to making housing more affordable in 

19 order to further the original intent of the Community De20 velopment Block Grant program. 

21 (b) LAND USE PLAN.— 

22 (1) IN GENERAL.—Section 104 of the Housing 

23 and Community Development Act of 1974 (42 

24 U.S.C. 5304) is amended by adding at the end the 

25 following: 


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1 ‘‘(n) PLAN TO TRACK DISCRIMINATORY LAND USE

2 POLICIES.— 

3 ‘‘(1) IN GENERAL.—Prior to receipt in any fis4 cal year of a grant from the Secretary under sub5 section (b), (d)(1), or (d)(2)(B) of section 106, each 

6 recipient shall have prepared and submitted, not less 

7 frequently than once during the preceding 5-year pe8 riod, in accordance with this subsection and in such 

9 standardized form as the Secretary shall, by regula10 tion, prescribe, with respect to each land use policy 

11 described in paragraph (2) that is applicable to the 

12 jurisdiction served by the recipient, a description 

13 of— 

14 ‘‘(A) whether the recipient has already 

15 adopted the policy in the jurisdiction served by 

16 the recipient; 

17 ‘‘(B) the plan of the recipient to implement 

18 the policy in that jurisdiction; or 

19 ‘‘(C) the ways in which adopting the policy 

20 will benefit the jurisdiction. 

21 ‘‘(2) LAND USE POLICIES.—The policies de22 scribed in this paragraph are as follows: 

23 ‘‘(A) Enacting high-density single-family 

24 and multifamily zoning. 


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1 ‘‘(B) Expanding by-right multifamily zoned 

2 areas. 

3 ‘‘(C) Allowing duplexes, triplexes, or 

4 fourplexes in areas zoned primarily for single5 family residential homes. 

6 ‘‘(D) Allowing manufactured homes in 

7 areas zoned primarily for single-family residen8 tial homes. 

9 ‘‘(E) Allowing multifamily development in 

10 retail, office, and light manufacturing zones. 

11 ‘‘(F) Allowing single-room occupancy de12 velopment wherever multifamily housing is al13 lowed. 

14 ‘‘(G) Reducing minimum lot size. 

15 ‘‘(H) Ensuring historic preservation re16 quirements and other land use policies or re17 quirements are coordinated to encourage cre18 ation of housing in historic buildings and his19 toric districts. 

20 ‘‘(I) Increasing the allowable floor area 

21 ratio in multifamily housing areas. 

22 ‘‘(J) Creating transit-oriented development 

23 zones. 


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1 ‘‘(K) Streamlining or shortening permit2 ting processes and timelines, including through 

3 one-stop and parallel-process permitting. 

4 ‘‘(L) Eliminating or reducing off-street 

5 parking requirements. 

6 ‘‘(M) Ensuring impact and utility invest7 ment fees accurately reflect required infrastruc8 ture needs and related impacts on housing af9 fordability are otherwise mitigated. 

10 ‘‘(N) Allowing prefabricated construction. 

11 ‘‘(O) Reducing or eliminating minimum 

12 unit square footage requirements. 

13 ‘‘(P) Allowing the conversion of office units 

14 to apartments. 

15 ‘‘(Q) Allowing the subdivision of single16 family homes into duplexes. 

17 ‘‘(R) Allowing accessory dwelling units, in18 cluding detached accessory dwelling units, on all 

19 lots with single-family homes. 

20 ‘‘(S) Establishing density bonuses. 

21 ‘‘(T) Eliminating or relaxing residential 

22 property height limitations. 

23 ‘‘(U) Using property tax abatements to en24 able higher density and mixed-income commu25 nities. 


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1 ‘‘(V) Donating vacant land for affordable 

2 housing development. 

3 ‘‘(3) EFFECT OF SUBMISSION.—A submission 

4 under this subsection shall not be binding with re5 spect to the use or distribution of amounts received 

6 under section 106. 

7 ‘‘(4) ACCEPTANCE OR NONACCEPTANCE OF

8 PLAN.—The acceptance or nonacceptance of any 

9 plan submitted under this subsection in which the 

10 information required under this subsection is pro11 vided is not an endorsement or approval of the plan, 

12 policies, or methodologies, or lack thereof.’’. 

13 (2) EFFECTIVE DATE.—The requirements 

14 under subsection (n) of section 104 of the Housing 

15 and Community Development Act of 1974 (42 

16 U.S.C. 5304), as added by paragraph (1), shall— 

17 (A) take effect on the date that is 1 year 

18 after the date of enactment of this Act; and 

19 (B) apply to recipients of a grant under 

20 subsection (b), (d)(1), or (d)(2)(B) of section 

21 106 of the Housing and Community Develop22 ment Act of 1974 (42 U.S.C. 5306) before, on, 

23 and after such date. 


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1 SEC. 106. EXPANDING AND STRENGTHENING THE LOW-IN2 COME HOUSING TAX CREDIT. 

3 (a) INCREASES IN STATE ALLOCATIONS.— 

4 (1) IN GENERAL.—Clause (ii) of section 

5 42(h)(3)(C) of the Internal Revenue Code is amend6 ed— 

7 (A) in subclause (I), by striking ‘‘$1.75’’ 

8 and inserting ‘‘the per capita amount’’, and 

9 (B) in subclause (II), by striking 

10 ‘‘$2,000,000’’ and inserting ‘‘the minimum 

11 amount’’. 

12 (2) PER CAPITA AMOUNT; MINIMUM AMOUNT.— 

13 Section 42(h)(3) of the Internal Revenue Code of 

14 1986 is amended by striking subparagraphs (H) and 

15 (I) and inserting the following: 

16 ‘‘(H) PER CAPITA AMOUNT.—For purposes 

17 of subparagraph (C)(ii)(I), the per capita 

18 amount shall be determined as follows: 

19 ‘‘(i) CALENDAR YEAR 2023.—For cal20 endar year, 2023, the per capita amount is 

21 $3.90. 

22 ‘‘(ii) CALENDAR YEAR 2024.—For cal23 endar year 2024, the per capita amount is 

24 the product of— 

25 ‘‘(I) 1.25, and 


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1 ‘‘(II) the dollar amount under 

2 clause (i) increased by an amount 

3 equal to— 

4 ‘‘(aa) such dollar amount, 

5 multiplied by 

6 ‘‘(bb) the cost-of-living ad7 justment determined under sec8 tion 1(f)(3) for such calendar 

9 year, determined by substituting 

10 ‘calendar year 2022’ for ‘cal11 endar year 2016’ in subpara12 graph (A)(ii) thereof. 

13 If the amount determined after appli14 cation of the preceding sentence is not 

15 a multiple of $5,000, such amount 

16 shall be rounded to the next lowest 

17 multiple of $5,000. 

18 ‘‘(iii) CALENDAR YEARS AFTER

19 2024.—In the case of any calendar year 

20 after 2024, the per capita amount is the 

21 dollar amount determined under clause (ii) 

22 increased by an amount equal to— 

23 ‘‘(I) such dollar amount, multi24 plied by 


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1 ‘‘(II) the cost-of-living adjust2 ment determined under section 1(f)(3) 

3 for such calendar year, determined by 

4 substituting ‘calendar year 2023’ for 

5 ‘calendar year 2016’ in subparagraph 

6 (A)(ii) thereof. 

7 Any amount increased under the preceding 

8 sentence which is not a multiple of 5 cents 

9 shall be rounded to the next lowest mul10 tiple of 5 cents. 

11 ‘‘(I) MINIMUM AMOUNT.—For purposes of 

12 subparagraph (C)(ii)(II), the minimum amount 

13 shall be determined as follows: 

14 ‘‘(i) CALENDAR YEAR 2023.—For cal15 endar year, 2023, the minimum amount is 

16 $4,495,000. 

17 ‘‘(ii) CALENDAR YEAR 2024.—For cal18 endar year 2024, the minimum amount is 

19 the product of— 

20 ‘‘(I) 1.25, and 

21 ‘‘(II) the dollar amount under 

22 clause (i) increased by an amount 

23 equal to— 

24 ‘‘(aa) such dollar amount, 

25 multiplied by 


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1 ‘‘(bb) the cost-of-living ad2 justment determined under sec3 tion 1(f)(3) for such calendar 

4 year, determined by substituting 

5 ‘calendar year 2022’ for ‘cal6 endar year 2016’ in subpara7 graph (A)(ii) thereof. 

8 If the amount determined after appli9 cation of the preceding sentence is not 

10 a multiple of 5 cents, such amount 

11 shall be rounded to the next lowest 

12 multiple of 5 cents. 

13 ‘‘(iii) CALENDAR YEARS AFTER

14 2024.—In the case of any calendar year 

15 after 2024, the minimum amount is the 

16 dollar amount determined under clause (ii) 

17 increased by an amount equal to— 

18 ‘‘(I) such dollar amount, multi19 plied by 

20 ‘‘(II) the cost-of-living adjust21 ment determined under section 1(f)(3) 

22 for such calendar year, determined by 

23 substituting ‘calendar year 2023’ for 

24 ‘calendar year 2016’ in subparagraph 

25 (A)(ii) thereof. 


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1 Any amount increased under the preceding 

2 sentence which is not a multiple of $5,000 

3 shall be rounded to the next lowest mul4 tiple of $5,000.’’. 

5 (3) EFFECTIVE DATE.—The amendments made 

6 by this subsection shall apply to calendar years be7 ginning after December 31, 2022. 

8 (b) REFORMS RELATING TO TENANT ELIGIBILITY.— 

9 (1) AVERAGE INCOME TEST APPLICABILITY TO

10 EXEMPT FACILITY BONDS.— 

11 (A) IN GENERAL.—Paragraph (1) of sec12 tion 142(d) of the Internal Revenue Code of 

13 1986 is amended— 

14 (i) by striking ‘‘(A) or (B)’’ and in15 serting ‘‘(A), (B), or (C)’’, and 

16 (ii) by inserting after subparagraph 

17 (B) the following new subparagraph: 

18 ‘‘(C) AVERAGE INCOME TEST.—A project 

19 meets the requirements of this subparagraph if 

20 it meets the minimum requirements of section 

21 42(g)(1)(C).’’. 

22 (B) EFFECTIVE DATE.—The amendments 

23 made by this paragraph shall apply to elections 

24 made under section 142(d)(1) of the Internal 

25 Revenue Code of 1986 after March 23, 2018. 


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1 (2) CODIFICATION OF RULES RELATING TO IN2 CREASED TENANT INCOME.— 

3 (A) IN GENERAL.—Clause (i) of section 

4 42(g)(2)(D) of the Internal Revenue Code of 

5 1986 is amended by striking ‘‘clauses (ii), (iii), 

6 and (iv)’’ and all that follows and inserting 

7 ‘‘clauses (ii), (iii), (iv), and (vi), notwith8 standing an increase in the income of the occu9 pants above the income limitation applicable 

10 under paragraph (1)— 

11 ‘‘(I) a low-income unit shall con12 tinue to be treated as a low-income 

13 unit if the income of such occupants 

14 initially was 60 percent or less of area 

15 median gross income and such unit 

16 continues to be rent-restricted, and 

17 ‘‘(II) a unit to which, at the time 

18 of initial occupancy by such occu19 pants, any Federal, State, or local 

20 government income restriction ap21 plied, and which subsequently becomes 

22 part of a building with respect to 

23 which rehabilitation expenditures are 

24 taken into account under subsection 

25 (e), shall be treated as a low-income 


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1 unit if the income of such occupants 

2 initially was 60 percent or less of area 

3 median gross income and does not ex4 ceed 120 percent of area median gross 

5 income as of the date of acquisition of 

6 the property by the taxpayer.’’. 

7 (B) EXCEPTION.—Subparagraph (D) of 

8 section 42(g)(2) of the Internal Revenue Code 

9 of 1986, as amended by this section, is further 

10 amended by adding at the end the following 

11 new clause: 

12 ‘‘(vi) EXCEPTION TO RULE RELATING

13 TO INCREASED TENANT INCOME.—In the 

14 case of an occupant of a low-income unit 

15 who initially qualified to occupy such unit 

16 by reason of paragraph (1)(C) with an in17 come in excess of 60 percent of area me18 dian gross income but not in excess of 80 

19 percent of area median gross income, 

20 clause (i) shall be applied for substituting 

21 ‘80 percent’ for ‘60 percent’ each place it 

22 appears.’’. 

23 (C) EFFECTIVE DATE.—The amendments 

24 made by this paragraph shall apply to taxable 

25 years beginning after December 31, 2022. 


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1 (3) MODIFICATION OF STUDENT OCCUPANCY

2 RULES.— 

3 (A) IN GENERAL.—Subparagraph (D) of 

4 section 42(i)(3) of the Internal Revenue Code of 

5 1986 is amended to read as follows: 

6 ‘‘(D) RULES RELATING TO STUDENTS.— 

7 ‘‘(i) IN GENERAL.—A unit occupied 

8 solely by individuals who— 

9 ‘‘(I) have not attained age 24, 

10 and 

11 ‘‘(II) are enrolled in a full-time 

12 course of study at an institution of 

13 higher education (as defined in section 

14 3304(f)), 

15 shall not be treated as a low-income unit. 

16 ‘‘(ii) EXCEPTION FOR CERTAIN FED17 ERAL PROGRAMS.—In the case of a feder18 ally-assisted building (as defined in sub19 section (d)(6)(C)(i)), clause (i) shall not 

20 apply to a unit all of the occupants of 

21 which meet all applicable requirements 

22 under the housing program described in 

23 such subsection through which the building 

24 is assisted, financed, or operated. 


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1 ‘‘(iii) OTHER EXCEPTIONS.—An indi2 vidual shall not be treated as described in 

3 clause (i) if the individual meets the in4 come limitation applicable under subsection 

5 (g)(1) to the project of which the building 

6 is a part and— 

7 ‘‘(I) is married, 

8 ‘‘(II) is a person with disabilities 

9 (as defined in section 3(b)(3)(E) of 

10 the United States Housing Act of 

11 1937), 

12 ‘‘(III) is a veteran (as defined in 

13 section 101(2) of title 38, United 

14 States Code), 

15 ‘‘(IV) has 1 or more qualifying 

16 children (as defined in section 

17 152(c)), 

18 ‘‘(V) is or has been a victim or 

19 threatened victim of domestic violence, 

20 dating violence, sexual assault, or 

21 stalking (as defined in section 40002 

22 of the Violence Against Women Act of 

23 1994), 

24 ‘‘(VI) is or has been a victim of 

25 any form of human trafficking, or 


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1 ‘‘(VII) is, or was prior to attain2 ing the age of majority— 

3 ‘‘(aa) an emancipated minor 

4 or in legal guardianship as deter5 mined by a court of competent 

6 jurisdiction in the individual’s 

7 State of legal residence, 

8 ‘‘(bb) under the care and 

9 placement responsibility of the 

10 State agency responsible for ad11 ministering a plan under part B 

12 or part E of title IV of the Social 

13 Security Act, or 

14 ‘‘(cc) an unaccompanied 

15 youth (within the meaning of sec16 tion 725(6) of the McKinney17 Vento Homeless Assistance Act 

18 (42 U.S.C. 11434a(6))) or a 

19 homeless child or youth (within 

20 the meaning of section 725(2) of 

21 such Act (42 U.S.C. 

22 11434a(2))). 

23 For purposes of subclause (VI), an in24 dividual is or has been a victim of 

25 human trafficking if such individual 


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1 was subjected to an act or practice de2 scribed in paragraph (11) or (12) of 

3 section 103 of the Trafficking Victims 

4 Protection Act of 2000.’’. 

5 (B) EFFECTIVE DATE.—The amendment 

6 made by this paragraph shall apply to taxable 

7 years beginning after December 31, 2023. 

8 (4) TENANT VOUCHER PAYMENTS TAKEN INTO

9 ACCOUNT AS RENT FOR CERTAIN PURPOSES.— 

10 (A) IN GENERAL.—Subparagraph (B) of 

11 section 42(g)(2) of the Internal Revenue Code 

12 of 1986 is amended by adding at the end the 

13 following new sentence: ‘‘In the case of a 

14 project with respect to which the taxpayer elects 

15 the requirements of subparagraph (C) of para16 graph (1), or the portion of a project to which 

17 subsection (d)(5)(C) applies, clause (i) shall not 

18 apply with respect to any tenant-based assist19 ance (as defined in section 8(f)(7) of the United 

20 States Housing Act of 1937 (42 U.S.C. 

21 1437f(f)(7))).’’. 

22 (B) EFFECTIVE DATE.—The amendments 

23 made by this paragraph shall apply to rent paid 

24 in taxable years beginning after December 31, 

25 2023. 


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1 (5) REQUIREMENT THAT LOW-INCOME HOUSING

2 CREDIT-SUPPORTED HOUSING PROTECT VICTIMS OF

3 DOMESTIC ABUSE.— 

4 (A) IN GENERAL.—Subparagraph (B) of 

5 section 42(h)(6) of the Internal Revenue Code 

6 of 1986 is amended by striking ‘‘and’’ at the 

7 end of clause (v), by striking the period at the 

8 end of clause (vi) and inserting ‘‘, and’’, and by 

9 adding at the end the following new clause: 

10 ‘‘(vii) which— 

11 ‘‘(I) prohibits the refusal to lease 

12 to, or termination of a lease by, a per13 son solely on the basis of criminal ac14 tivity directly relating to domestic vio15 lence, dating violence, sexual assault, 

16 or stalking that is engaged in by a 

17 member of the household of the ten18 ant or any guest or other person 

19 under the control of the tenant, if the 

20 tenant or an affiliated individual of 

21 the tenant is the victim or threatened 

22 victim of such domestic violence, dat23 ing violence, sexual assault, or stalk24 ing, and 


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1 ‘‘(II) allows prospective, present, 

2 or former occupants of the building 

3 the right to enforce in any State court 

4 the prohibition of subclause (I).’’. 

5 (B) BIFURCATION.— 

6 (i) IN GENERAL.—Subparagraph (B) 

7 of section 42(h)(6) of the Internal Revenue 

8 Code of 1986, as amended by subsection 

9 (a), is further amended by adding at the 

10 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 Vio13 lence Against Women Act of 1994 shall apply 

14 with respect to the owner or manager of a 

15 building.’’. 

16 (ii) EFFECT OF BIFURCATION.—Para17 graph (2) of section 42(g) of such Code is 

18 amended by adding at the end the fol19 lowing new subparagraph: 

20 ‘‘(F) TREATMENT OF BIFURCATION IN

21 CASES OF DOMESTIC VIOLENCE.—In any case 

22 in which— 

23 ‘‘(i) an occupant is evicted or removed 

24 from a low-income unit because such occu25 pant has engaged in criminal activity diVerDate Sep 11 2014 02:04 Oct 30, 2024 Jkt 059200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H10009.IH H10009

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1 rectly relating to domestic violence, dating 

2 violence, sexual assault, or stalking against 

3 an affiliated individual or other individual 

4 on the basis of criminal activity directly re5 lating to domestic violence, dating violence, 

6 sexual assault, or stalking, and 

7 ‘‘(ii) the lease on such unit is bifur8 cated as provided in the last sentence of 

9 subsection (h)(6)(B), 

10 then the remaining occupants of such low-in11 come unit shall not be treated as a new tenant 

12 for purposes of this section.’’. 

13 (C) CLARIFICATION OF GENERAL PUBLIC

14 USE REQUIREMENT.—Paragraph (9) of section 

15 42(g) of the Internal Revenue Code of 1986 is 

16 amended by striking ‘‘or’’ at the end of sub17 paragraph (B), by striking the period at the 

18 end of subparagraph (C) and inserting ‘‘, or’’, 

19 and by adding at the end the following new sub20 paragraph: 

21 ‘‘(D) who are victims or threatened victims 

22 of criminal activity directly relating to domestic 

23 violence, dating violence, sexual assault, or 

24 stalking.’’. 

25 (D) EFFECTIVE DATES.— 


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1 (i) IN GENERAL.—Except as provided 

2 in clause (ii), the amendments made by 

3 this paragraph shall apply to agreements 

4 executed or modified on or after the date 

5 that is 30 days after the date of the enact6 ment of this Act. 

7 (ii) PUBLIC USE REQUIREMENT.—The 

8 amendments made by subparagraph (C) 

9 shall apply to buildings placed in service 

10 before, on, or after the date of the enact11 ment of this Act. 

12 (6) CLARIFICATION OF GENERAL PUBLIC USE

13 REQUIREMENT RELATING TO VETERANS, ETC.— 

14 (A) IN GENERAL.—Paragraph (9) of sec15 tion 42(g) of the Internal Revenue Code of 

16 1986, as amended by paragraph (5) of this sec17 tion, is further amended by adding at the end 

18 the following flush language: 

19 ‘‘Any veteran of the Armed Forces shall be treated 

20 as a member of a specified group under a Federal 

21 program for purposes of subparagraph (B).’’. 

22 (B) QUALIFIED RESIDENTIAL RENTAL

23 PROJECTS.—Paragraph (2) of section 142(d) of 

24 the Internal Revenue Code of 1986 is amended 


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1 by adding at the end the following new sub2 paragraph: 

3 ‘‘(F) CLARIFICATION OF GENERAL PUBLIC

4 USE REQUIREMENT.—A unit shall not fail to 

5 meet the general public use requirement solely 

6 because of occupancy restrictions or pref7 erences, if such restrictions or preferences meet 

8 the general public use requirement of section 

9 42.’’. 

10 (C) EFFECTIVE DATES.— 

11 (i) IN GENERAL.—The amendment 

12 made by subparagraph (A) shall apply to 

13 buildings placed in service before, on, or 

14 after the date of the enactment of this Act. 

15 (ii) QUALIFIED RESIDENTIAL RENTAL

16 PROJECTS.—The amendment made by sub17 paragraph (B) shall apply to bonds issued 

18 before, on, or after the date of the enact19 ment of this Act. 

20 (c) RULES RELATING TO CREDIT ELIGIBILITY AND

21 DETERMINATION.— 

22 (1) RECONSTRUCTION OR REPLACEMENT PE23 RIOD AFTER CASUALTY LOSS.— 

24 (A) NO RECAPTURE FOLLOWING CASUALTY

25 LOSS.—Subparagraph (E) of section 42(j)(4) of 


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1 the Internal Revenue Code of 1986 is amended 

2 to read as follows: 

3 ‘‘(E) NO RECAPTURE BY REASON OF CAS4 UALTY LOSS.— 

5 ‘‘(i) IN GENERAL.—The increase in 

6 tax under this subsection shall not apply to 

7 a reduction in qualified basis by reason of 

8 a casualty loss to the extent such loss is 

9 restored by reconstruction or replacement 

10 within a reasonable period established by 

11 the applicable housing credit agency, not to 

12 exceed 25 months from the date on which 

13 the qualified casualty loss arises. 

14 ‘‘(ii) QUALIFIED CASUALTY LOSSES.— 

15 In the case of a qualified casualty loss, the 

16 period described in clause (i) may be ex17 tended, but not in excess of 12 months, if 

18 the applicable housing credit agency deter19 mines the qualified casualty arose by rea20 son of an event which was not discrete to 

21 the building and which made a reconstruc22 tion or replacement within 25 months im23 practical. In the event the applicable hous24 ing credit agency determines a period in 

25 excess of 25 months is necessary for such 


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1 reconstruction or replacement, the compli2 ance period shall be increased by any such 

3 additional time. 

4 ‘‘(iii) APPLICATION.—The determina5 tion under paragraph (1) shall not be 

6 made with respect to a property the basis 

7 of which is affected by a qualified casualty 

8 loss until the period described in clause (i) 

9 (as modified by clause (ii), if applicable) 

10 with respect to such property has expired. 

11 ‘‘(iv) QUALIFIED CASUALTY LOSS.— 

12 For purposes of this subparagraph, the 

13 term ‘qualified casualty loss’ means a cas14 ualty loss that is the result of a federally 

15 declared disaster (as defined in section 

16 165(i)(5)).’’. 

17 (B) QUALIFIED BASIS FOLLOWING CAS18 UALTY LOSS.—Paragraph (1) of section 42(c) 

19 of the Internal Revenue Code of 1986 is 

20 amended by adding at the end the following 

21 new subparagraph: 

22 ‘‘(F) QUALIFIED BASIS FOLLOWING CAS23 UALTY LOSS.—If a casualty causes the qualified 

24 basis of a building in any year to be less than 

25 the qualified basis in the immediately preceding 


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1 year then, in the year of such casualty and each 

2 succeeding year until such building or the units 

3 affected by the casualty are reconstructed or re4 placed (but only through the last year of the pe5 riod permitted for reconstruction or replace6 ment under subsection (j)(4)(E))— 

7 ‘‘(i) the qualified basis of such build8 ing shall be equal to the qualified basis of 

9 such building as of the last day of the year 

10 preceding the year in which such casualty 

11 occurred, 

12 ‘‘(ii) if such building is not recon13 structed or replaced by the expiration of 

14 the applicable period for such reconstruc15 tion or replacement under subsection 

16 (j)(4), then the recapture amount provided 

17 for in subsection (j)(1) shall include the 

18 amount of any credit claimed under this 

19 section by reason of the application of 

20 clause (i), and 

21 ‘‘(iii) a building which was a qualified 

22 low-income building as of the last day of 

23 the year preceding the year in which such 

24 casualty occurred shall not cease to be a 


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1 qualified low-income building solely be2 cause of such casualty.’’. 

3 (C) EFFECTIVE DATE.—The amendments 

4 made by this paragraph shall apply to casual5 ties occurring after the date which is 25 months 

6 before the date of the enactment of this Act. 

7 (2) MODIFICATION OF PREVIOUS OWNERSHIP

8 RULES; LIMITATION ON ACQUISITION BASIS.— 

9 (A) IN GENERAL.—Clause (ii) of section 

10 42(d)(2)(B) of the Internal Revenue Code of 

11 1986 is amended by inserting ‘‘, or the tax12 payer elects the application of subparagraph 

13 (C)(ii)’’ after ‘‘service’’. 

14 (B) LIMITATION ON ACQUISITION BASIS.— 

15 Subparagraph (C) of section 42(d)(2) of the In16 ternal Revenue Code of 1986 is amended— 

17 (i) by striking ‘‘For purposes of sub18 paragraph (A), the adjusted basis’’ and in19 serting ‘‘For purposes of subparagraph 

20 (A)— 

21 ‘‘(i) IN GENERAL.—The adjusted 

22 basis’’, and 

23 (ii) by adding at the end the following 

24 new clauses: 


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1 ‘‘(ii) BUILDINGS IN SERVICE WITHIN

2 PREVIOUS 10 YEARS.—If the period be3 tween the date of acquisition of the build4 ing by the taxpayer and the date the build5 ing was last placed in service is less than 

6 10 years, the taxpayer’s basis attributable 

7 to the acquisition of the building which is 

8 taken into account in determining the ad9 justed basis shall not exceed the sum of— 

10 ‘‘(I) the lowest amount paid for 

11 acquisition of the building by any per12 son during the 10 years preceding the 

13 date of the acquisition of the building 

14 by the taxpayer, adjusted as provided 

15 in clause (iii), and 

16 ‘‘(II) the value of any capital im17 provements made by the person who 

18 sells the building to the taxpayer 

19 which are reflected in such seller’s 

20 basis. 

21 ‘‘(iii) ADJUSTMENT.—With respect to 

22 a basis determination made in any taxable 

23 year, the amount described in clause (ii)(I) 

24 shall be increased by an amount equal to— 

25 ‘‘(I) such amount, multiplied by 


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1 ‘‘(II) a cost-of-living adjustment, 

2 determined in the same manner as 

3 under section 1(f)(3) for the calendar 

4 year in which the taxable year begins 

5 by taking into account the acquisition 

6 year in lieu of calendar year 1992. 

7 For purposes of the preceding sentence, 

8 the acquisition year is the calendar year in 

9 which the lowest amount referenced in 

10 clause (ii)(I) was paid for the acquisition 

11 of the building.’’. 

12 (C) CONFORMING AMENDMENTS.—Clause 

13 (i) of section 42(d)(2)(D) of the Internal Rev14 enue Code of 1986 is amended— 

15 (i) by striking ‘‘FOR SUBPARAGRAPH

16 (B)’’ in the heading, and 

17 (ii) by striking ‘‘subparagraph 

18 (B)(ii)’’ in the matter preceding subclause 

19 (I) and inserting ‘‘subparagraph (B)(ii) or 

20 (C)(ii)’’. 

21 (D) MODIFICATION OF PLACED IN SERVICE

22 RULE.—Clause (iii) of section 42(d)(2)(B) of 

23 the Internal Revenue Code of 1986 is amended 

24 to read as follows: 


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1 ‘‘(iii) the building was not owned by 

2 the taxpayer or by any person related (as 

3 of the date of acquisition by the taxpayer) 

4 to the taxpayer at any time during the 5- 

5 year period ending on the date of acquisi6 tion by the taxpayer, and’’. 

7 (E) EFFECTIVE DATE.—The amendments 

8 made by this paragraph shall apply to buildings 

9 placed in service after December 31, 2022. 

10 (3) CERTAIN RELOCATION COSTS TAKEN INTO

11 ACCOUNT AS REHABILITATION EXPENDITURES.— 

12 (A) IN GENERAL.—Paragraph (2) of sec13 tion 42(e) of the Internal Revenue Code of 

14 1986 is amended by adding at the end the fol15 lowing new subparagraph: 

16 ‘‘(C) CERTAIN RELOCATION COSTS.—In 

17 the case of a rehabilitation of a building to 

18 which section 280B does not apply, costs relat19 ing to the relocation of occupants, including— 

20 ‘‘(i) amounts paid to occupants, 

21 ‘‘(ii) amounts paid to third parties for 

22 services relating to such relocation, and 

23 ‘‘(iii) amounts paid for temporary 

24 housing for occupants, 


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1 shall be treated as chargeable to capital account 

2 and taken into account as rehabilitation ex3 penditures.’’. 

4 (B) EFFECTIVE DATE.—The amendment 

5 made by this paragraph shall apply to expendi6 tures paid or incurred after December 31, 

7 2022. 

8 (C) NO INFERENCE.—Nothing in the 

9 amendment made by this paragraph shall be 

10 construed to create any inference with respect 

11 to the treatment of relocation costs paid or in12 curred before December 31, 2022. 

13 (4) REPEAL OF QUALIFIED CENSUS TRACT POP14 ULATION CAP.— 

15 (A) IN GENERAL.—Clause (ii) of section 

16 42(d)(5)(B) of the Internal Revenue Code of 

17 1986 is amended— 

18 (i) by striking subclauses (II) and 

19 (III), and 

20 (ii) by striking ‘‘QUALIFIED CENSUS

21 TRACT.— 

22 ‘‘(I) IN GENERAL.—The term’’, 

23 and inserting ‘‘QUALIFIED CENSUS

24 TRACT.—The term’’. 


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1 (B) EFFECTIVE DATE.—The amendments 

2 made by this paragraph shall apply to designa3 tions of qualified census tracts under section 

4 42(d)(5)(B)(ii) of the Internal Revenue Code of 

5 1986 after December 31, 2023. 

6 (5) DETERMINATION OF COMMUNITY REVITAL7 IZATION PLAN TO BE MADE BY HOUSING CREDIT

8 AGENCY.— 

9 (A) IN GENERAL.—Subclause (III) of sec10 tion 42(m)(1)(B)(ii) of the Internal Revenue 

11 Code of 1986 is amended by inserting ‘‘, as de12 termined by the housing credit agency accord13 ing to criteria established by such agency,’’ 

14 after ‘‘(d)(5)(B)(ii)) and’’. 

15 (B) CRITERIA.—Paragraph (1) of section 

16 42(m) of the Internal Revenue Code of 1986 is 

17 amended by adding at the end the following 

18 new subparagraph: 

19 ‘‘(E) CRITERIA FOR DETERMINATION RE20 LATING TO CONCERTED COMMUNITY REVITAL21 IZATION PLAN.—For purposes of subparagraph 

22 (B)(ii)(III), the criteria which shall be estab23 lished by a housing credit agency for deter24 mining whether the development of a project 

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1 ment plan shall take into account any factors 

2 the agency deems appropriate, including the ex3 tent to which the proposed plan— 

4 ‘‘(i) is geographically specific, 

5 ‘‘(ii) outlines a clear plan for imple6 mentation and goals for outcomes, 

7 ‘‘(iii) includes a strategy for applying 

8 for or obtaining commitments of public or 

9 private investment (or both) in nonhousing 

10 infrastructure, amenities, or services, and 

11 ‘‘(iv) demonstrates the need for com12 munity revitalization.’’. 

13 (C) EFFECTIVE DATE.—The amendments 

14 made by this paragraph shall apply to alloca15 tions of housing credit dollar amounts made 

16 under qualified allocation plans (as defined in 

17 section 42(m)(1)(B) of the Internal Revenue 

18 Code of 1986) adopted after December 31, 

19 2023. 

20 (6) PROHIBITION OF LOCAL APPROVAL AND

21 CONTRIBUTION REQUIREMENTS.— 

22 (A) IN GENERAL.—Paragraph (1) of sec23 tion 42(m) of the Internal Revenue Code of 

24 1986, as amended by paragraph (5) of this sub25 section, is further amended— 


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1 (i) by striking clause (ii) of subpara2 graph (A) and by redesignating clauses 

3 (iii) and (iv) thereof as clauses (ii) and 

4 (iii), and 

5 (ii) by adding at the end the following 

6 new subparagraph: 

7 ‘‘(F) LOCAL APPROVAL OR CONTRIBUTION

8 NOT TAKEN INTO ACCOUNT.—The selection cri9 teria under a qualified allocation plan shall not 

10 include consideration of— 

11 ‘‘(i) any support or opposition with re12 spect to the project from local or elected 

13 officials, or 

14 ‘‘(ii) any local government contribu15 tion to the project, except to the extent 

16 such contribution is taken into account as 

17 part of a broader consideration of the 

18 project’s ability to leverage outside funding 

19 sources, and is not prioritized over any 

20 other source of outside funding.’’. 

21 (B) EFFECTIVE DATE.—The amendments 

22 made by this paragraph shall apply to alloca23 tions of housing credit dollar amounts made 

24 under qualified allocation plans (as defined in 

25 section 42(m)(1)(B) of the Internal Revenue 


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1 Code of 1986) adopted after December 31, 

2 2023. 

3 (7) INCREASE IN CREDIT FOR CERTAIN

4 PROJECTS DESIGNATED TO SERVE EXTREMELY LOW5 INCOME HOUSEHOLDS.— 

6 (A) IN GENERAL.—Paragraph (5) of sec7 tion 42(d) of the Internal Revenue Code of 

8 1986 is amended by adding at the end the fol9 lowing new subparagraph: 

10 ‘‘(C) INCREASE IN CREDIT FOR PROJECTS

11 DESIGNATED TO SERVE EXTREMELY LOW-IN12 COME HOUSEHOLDS.—In the case of any build13 ing— 

14 ‘‘(i) 20 percent or more of the resi15 dential units (determined as if the imputed 

16 income limitation applicable to such units 

17 were 30 percent of area median gross in18 come) in which are designated by the tax19 payer for occupancy by households the ag20 gregate household income of which does 

21 not exceed the greater of— 

22 ‘‘(I) 30 percent of area median 

23 gross income, or 

24 ‘‘(II) 100 percent of an amount 

25 equal to the Federal poverty line 


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1 (within the meaning of section 

2 36B(d)(3)), and 

3 ‘‘(ii) which is designated by the hous4 ing credit agency as requiring the increase 

5 in credit under this subparagraph in order 

6 for such building to be financially feasible 

7 as part of a qualified low-income housing 

8 project, 

9 subparagraph (B) shall not apply to the portion 

10 of such building which is comprised of such 

11 units (determined in a manner similar to the 

12 unit fraction under subsection (c)(1)(C)), and 

13 the eligible basis of such portion of the building 

14 shall be 150 percent of such basis determined 

15 without regard to this subparagraph.’’. 

16 (B) EFFECTIVE DATE.—The amendment 

17 made by this paragraph shall apply to buildings 

18 which receive allocations of housing credit dol19 lar amount after the date of enactment of this 

20 Act, or in the case of buildings that are de21 scribed in section 42(h)(4)(B) of the Internal 

22 Revenue Code of 1986, for obligations that are 

23 part of an issue the issue date of which is after 

24 December 31, 2023. 


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1 (8) INCREASE IN CREDIT FOR BOND-FINANCED

2 PROJECTS DESIGNATED BY STATE AGENCY.— 

3 (A) IN GENERAL.—Clause (v) of section 

4 42(d)(5)(B) of the Internal Revenue Code of 

5 1986 is amended by striking the second sen6 tence. 

7 (B) TECHNICAL AMENDMENT.—Clause (v) 

8 of section 42(d)(5)(B) of the Internal Revenue 

9 Code of 1986, as amended by subparagraph 

10 (A), is further amended— 

11 (i) by striking ‘‘STATE’’ in the head12 ing, and 

13 (ii) by striking ‘‘State housing credit 

14 agency’’ and inserting ‘‘housing credit 

15 agency’’. 

16 (C) EFFECTIVE DATE.—The amendments 

17 made by this paragraph shall apply to buildings 

18 that are described in section 42(h)(4)(B) of the 

19 Internal Revenue Code of 1986, taking into ac20 count only obligations that are part of an issue 

21 the issue date of which is after December 31, 

22 2023. 

23 (9) ELIMINATION OF BASIS REDUCTION FOR

24 LOW-INCOME HOUSING PROPERTIES ENERGY EFFI25 CIENT COMMERCIAL BUILDING DEDUCTION.— 


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1 (A) ENERGY EFFICIENT COMMERCIAL

2 BUILDINGS DEDUCTION.—Subsection (e) of sec3 tion 179D of the Internal Revenue Code of 

4 1986 is amended— 

5 (i) by striking ‘‘REDUCTION.—For 

6 purposes’’ and inserting ‘‘REDUCTION.— 

7 ‘‘(1) IN GENERAL.—For purposes’’, and 

8 (ii) by adding at the end the following 

9 new paragraph: 

10 ‘‘(2) EXCEPTION FOR AFFORDABLE HOUSING

11 PROPERTIES.—Paragraph (1) shall not apply for 

12 purposes of determining eligible basis under section 

13 42.’’. 

14 (B) EFFECTIVE DATE.—The amendments 

15 made by this paragraph shall apply to buildings 

16 which receive allocations of housing credit dol17 lar amount after the date of the enactment of 

18 this Act and to buildings that are described in 

19 section 42(h)(4)(B) of the Internal Revenue 

20 Code of 1986 taking into account only obliga21 tions that are part of an issue the issue date of 

22 which is after December 31, 2023. 

23 (10) RESTRICTION OF PLANNED FORE24 CLOSURES.— 


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1 (A) IN GENERAL.—Subclause (I) of section 

2 42(h)(6)(E)(i) of the Internal Revenue Code of 

3 1986 is amended to read as follows: 

4 ‘‘(I) on the 61st day after the 

5 taxpayer (or a successor in interest) 

6 provides notice to the Secretary and 

7 the housing credit agency that the 

8 building has been acquired by fore9 closure (or instrument in lieu of fore10 closure) and that the taxpayer intends 

11 the termination of such period, unless, 

12 before such date, the Secretary or the 

13 housing credit agency determines that 

14 such acquisition is part of an arrange15 ment with the taxpayer a purpose of 

16 which is to terminate such period, 

17 or’’. 

18 (B) CONFORMING AMENDMENT.—The sec19 ond sentence of clause (i) of section 

20 42(h)(6)(E) of the Internal Revenue Code of 

21 1986 is amended by striking ‘‘Subclause (II)’’ 

22 and inserting ‘‘Subclauses (I) and (II)’’. 

23 (C) EFFECTIVE DATE.—The amendments 

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1 tions by foreclosure (or instrument in lieu of 

2 foreclosure) after December 31, 2022. 

3 (11) INCREASE OF POPULATION CAP FOR DIF4 FICULT DEVELOPMENT AREAS.— 

5 (A) IN GENERAL.—Subclause (II) of sec6 tion 42(d)(5)(B)(iii) of the Internal Revenue 

7 Code of 1986 is amended by striking ‘‘20 per8 cent’’ and inserting ‘‘30 percent’’. 

9 (B) EFFECTIVE DATE.—The amendment 

10 made by this paragraph shall apply to designa11 tions made under section 42(d)(5)(B)(iii) of the 

12 Internal Revenue Code of 1986 after December 

13 31, 2023. 

14 (12) INCREASED COST OVERSIGHT AND AC15 COUNTABILITY.— 

16 (A) IN GENERAL.—Subparagraph (C) of 

17 section 42(m)(1) of the Internal Revenue Code 

18 of 1986 is amended by striking ‘‘and’’ at the 

19 end of clause (ix), by striking the period at the 

20 end of clause (x) and inserting ‘‘, and’’, and by 

21 adding at the end the following new clause: 

22 ‘‘(xi) the reasonableness of the devel23 opment costs of the project.’’. 

24 (B) EFFECTIVE DATE.—The amendments 

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1 tions of credits under section 42 of the Internal 

2 Revenue Code of 1986 made after December 

3 31, 2023. 

4 (13) TAX-EXEMPT BOND FINANCING REQUIRE5 MENT.— 

6 (A) IN GENERAL.—Subparagraph (B) of 

7 section 42(h)(4) of the Internal Revenue Code 

8 of 1986 is amended by adding at the end the 

9 following new sentence: ‘‘In the case of build10 ings financed by an obligation first taken into 

11 account under section 146 in calendar years be12 ginning after the date of the enactment of this 

13 sentence, the preceding sentence shall be ap14 plied by substituting ‘25 percent’ for ‘50 per15 cent’.’’. 

16 (B) EFFECTIVE DATE.—The amendment 

17 made by this paragraph shall apply to any 

18 building some portion of which, or of the land 

19 on which the building is located, is financed by 

20 an obligation which is described in section 

21 42(h)(4)(A) of the Internal Revenue Code of 

22 1986 and which is part of an issue the issue 

23 date of which is after December 31, 2023. 

24 (d) REFORMS RELATING TO NATIVE AMERICAN AS25 SISTANCE.— 


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1 (1) SELECTION CRITERIA UNDER QUALIFIED

2 ALLOCATION PLANS.— 

3 (A) IN GENERAL.—Subparagraph (C) of 

4 section 42(m)(1) of the Internal Revenue Code 

5 of 1986, as amended by subsection (c)(2), is 

6 further amended by striking ‘‘and’’ at the end 

7 of clause (x), by striking the period at the end 

8 of clause (xi) and inserting ‘‘, and’’, and by 

9 adding at the end the following new clause: 

10 ‘‘(xii) the affordable housing needs of 

11 individuals in the State who are— 

12 ‘‘(I) enrolled members of a tribe 

13 with respect to an Indian tribal gov14 ernment (including any agencies or in15 strumentalities of an Indian tribal 

16 government and any Alaska Native re17 gional or village corporation, as de18 fined in, or established pursuant to, 

19 the Alaska Native Claims Settlement 

20 Act (43 U.S.C. 1601 et seq.), or 

21 ‘‘(II) described in section 801(9) 

22 of the Native American Housing As23 sistance and Self-Determination Act 

24 of 1996 (25 U.S.C. 4221(9)).’’. 


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1 (B) EFFECTIVE DATE.—The amendments 

2 made by this paragraph shall apply to alloca3 tions of credits under section 42 of the Internal 

4 Revenue Code of 1986 made after December 

5 31, 2023. 

6 (2) INCLUSION OF INDIAN AREAS AS DIFFICULT

7 DEVELOPMENT AREAS FOR PURPOSES OF CERTAIN

8 BUILDINGS.— 

9 (A) IN GENERAL.—Subclause (I) of section 

10 42(d)(5)(B)(iii) of the Internal Revenue Code 

11 of 1986 is amended by inserting before the pe12 riod the following: ‘‘, and any Indian area’’. 

13 (B) INDIAN AREA.—Clause (iii) of section 

14 42(d)(5)(B) of the Internal Revenue Code of 

15 1986 is amended by redesignating subclause 

16 (II) as subclause (III) and by inserting after 

17 subclause (I) the following new subclause: 

18 ‘‘(II) INDIAN AREA.—For pur19 poses of subclause (I), the term ‘In20 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 


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1 area (as defined in section 801(5) of 

2 such Act (25 U.S.C. 4221(5))).’’. 

3 (C) ELIGIBLE BUILDINGS.—Clause (iii) of 

4 section 42(d)(5)(B) of the Internal Revenue 

5 Code of 1986, as amended by subparagraph 

6 (B), is further amended by adding at the end 

7 the following new subclause: 

8 ‘‘(IV) SPECIAL RULE FOR BUILD9 INGS IN INDIAN AREAS.—In the case 

10 of an area which is a difficult develop11 ment area solely because it is an In12 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 hous21 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 Indian tribe or tribally designated 

25 housing entity.’’. 


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1 (D) EFFECTIVE DATE.—The amendments 

2 made by this paragraph shall apply to buildings 

3 placed in service after December 31, 2023. 

4 (e) REFORMS RELATING TO RURAL ASSISTANCE.— 

5 (1) INCLUSION OF RURAL AREAS AS DIFFICULT

6 DEVELOPMENT AREAS.— 

7 (A) IN GENERAL.—Subclause (I) of section 

8 42(d)(5)(B)(iii) of the Internal Revenue Code 

9 of 1986, as amended by subsection (d)(2), is 

10 further amended by inserting ‘‘, any rural area’’ 

11 after ‘‘median gross income’’. 

12 (B) RURAL AREA.—Clause (iii) of section 

13 42(d)(5)(B) of the Internal Revenue Code of 

14 1986, as amended by subsection (d)(2), is fur15 ther amended by redesignating subclause (III) 

16 as subclause (IV) and by inserting after sub17 clause (II) the following new subclause: 

18 ‘‘(III) RURAL AREA.—For pur19 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 quali24 fied allocation plan under subsection 

25 (m)(1)(B).’’. 


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1 (C) EFFECTIVE DATE.—The amendments 

2 made by this paragraph shall apply to buildings 

3 placed in service after December 31, 2023. 

4 (2) UNIFORM INCOME ELIGIBILITY FOR RURAL

5 PROJECTS.— 

6 (A) IN GENERAL.—Paragraph (8) of sec7 tion 42(i) of the Internal Revenue Code of 1986 

8 is amended by striking the second sentence. 

9 (B) EFFECTIVE DATE.—The amendment 

10 made by this paragraph shall apply to taxable 

11 years beginning after December 31, 2022. 

12 (f) TREATMENT OF EXEMPT FACILITY BONDS RE13 FUNDING ISSUES.— 

14 (1) IN GENERAL.—Subparagraph (A) of section 

15 146(i)(6) of the Internal Revenue Code of 1986 is 

16 amended to read as follows: 

17 ‘‘(A) IN GENERAL.—During the 12-month 

18 period beginning on the date of a repayment of 

19 a loan financed by an issue 95 percent or more 

20 of the net proceeds of which are used to provide 

21 projects described in section 142(d), if such re22 payment is used to provide a new loan for any 

23 project described in section 142(a)(7) or for 

24 any purpose described in subsection (a)(2)(A) 

25 or (b) of section 143, any bond which is issued 


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1 to refinance such issue shall be treated as a re2 funding issue. Any issue treated as a refunding 

3 issue by reason of the preceding sentence shall 

4 be so treated only to the extent the principal 

5 amount of such refunding issue does not exceed 

6 the principal amount of the bonds refunded.’’. 

7 (2) REMOVAL OF ONE-REFUNDING LIMIT.— 

8 Subparagraph (B) of section 146(i)(6) of the Inter9 nal Revenue Code of 1986 is amended— 

10 (A) by striking ‘‘4 years’’ in clause (i) and 

11 inserting ‘‘10 years’’, 

12 (B) by striking ‘‘was issued’’ in clause (ii) 

13 and inserting ‘‘is issued’’, 

14 (C) by redesignating clauses (i) (as so 

15 amended), (ii) (as so amended), and (iii) as 

16 subclauses (I), (II), and (III), respectively, and 

17 by moving such subclauses 2 ems to the right, 

18 (D) by striking ‘‘LIMITATIONS.—Subpara19 graph (A) shall apply to only one refunding of 

20 the original issue and’’ and inserting ‘‘LIMITA21 TIONS.— 

22 ‘‘(i) IN GENERAL.—Subparagraph (A) 

23 shall apply to a bond’’, and 

24 (E) by adding at the end the following new 

25 clause: 


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1 ‘‘(ii) SOURCE OF LOAN REPAY2 MENT.—Subparagraph (A) shall not apply 

3 to any repayment of a loan which is— 

4 ‘‘(I) made by a repayment of an5 other loan, or 

6 ‘‘(II) financed by an issue treated 

7 as a refunding issue under subpara8 graph (A).’’. 

9 (3) CONFORMING AMENDMENT.—The heading 

10 of paragraph (6) of section 146(i) of the Internal 

11 Revenue Code of 1986 is amended by striking ‘‘RES12 IDENTIAL RENTAL PROJECT BONDS AS REFUNDING

13 BONDS IRRESPECTIVE OF OBLIGOR’’ and inserting 

14 ‘‘BONDS AS REFUNDING BONDS’’. 

15 (4) EFFECTIVE DATES.— 

16 (A) IN GENERAL.—The amendments made 

17 by paragraphs (1) and (3) shall apply to re18 funding issues described in section 146(i)(6)(A) 

19 of the Internal Revenue Code of 1986 issued on 

20 or after the date of the enactment of this Act. 

21 (B) REMOVAL OF ONE-REFUNDING

22 LIMIT.—The amendments made by paragraph 

23 (2) shall apply to repayments of loans received 

24 after July 30, 2008. 

25 (g) AFFORDABLE HOUSING TAX CREDIT.— 


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1 (1) IN GENERAL.—The heading of section 42 of 

2 the Internal Revenue Code of 1986 is amended by 

3 striking ‘‘LOW-INCOME’’ and inserting ‘‘AFFORD4 ABLE’’. 

5 (2) CONFORMING AMENDMENTS.— 

6 (A) Subsection (a) of section 42 of the In7 ternal Revenue Code of 1986 is amended by 

8 striking ‘‘low-income’’ and inserting ‘‘afford9 able’’. 

10 (B) Paragraph (5) of section 38(b) of such 

11 Code is amended by striking ‘‘low-income’’ and 

12 inserting ‘‘affordable’’. 

13 (C) The heading of subparagraph (D) of 

14 section 469(i)(3) of such Code is amended by 

15 striking ‘‘LOW-INCOME’’ and inserting ‘‘AF16 FORDABLE’’. 

17 (D) The heading of subparagraph (B) of 

18 section 469(i)(6) of such Code is amended by 

19 striking ‘‘LOW-INCOME’’ and inserting ‘‘AF20 FORDABLE’’. 

21 (E) Paragraph (7) of section 772(a) of 

22 such Code is amended by striking ‘‘low-income’’ 

23 and inserting ‘‘affordable’’. 


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1 (F) Paragraph (5) of section 772(d) of 

2 such Code is amended by striking ‘‘low-income’’ 

3 and inserting ‘‘affordable’’. 

4 (3) CLERICAL AMENDMENT.—The item relating 

5 to section 42 in the table of sections for subpart D 

6 of part IV of subchapter A of chapter 1 of the Inter7 nal Revenue Code of 1986 is amended to read as fol8 lows: 

‘‘Sec. 42. Affordable housing credit.’’. 

9 (h) SENSE OF CONGRESS REGARDING DATA AND

10 TRANSPARENCY.—It is the sense of Congress that in addi11 tion to expanding and strengthening the affordable hous12 ing credit through the provisions in this section, subse13 quent steps should also be taken to share data and identify 

14 other ways to increase the transparency of the program, 

15 and the House of Representatives and the Senate should 

16 work together with Federal agencies to identify data 

17 sources that can be shared. 

18 SEC. 107. DECREASING THE EQUITY PENALTY AND 

19 INCENTIVIZING MORE LONG-TERM OWNERS 

20 TO SELL HOMES. 

21 (a) INCREASE OF EXCLUSION OF GAIN FROM SALE

22 OF PRINCIPAL RESIDENCE.—Section 121(b) of the Inter23 nal Revenue Code of 1986 is amended— 

24 (1) by striking ‘‘$250,000’’ and inserting 

25 ‘‘$500,000’’ each place it appears, 


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1 (2) by striking ‘‘500,000’’ and inserting 

2 ‘‘$1,000,000’’ each place it appears, 

3 (3) in paragraph (2)(A), in the heading, by 

4 striking ‘‘$500,000’’ and inserting ‘‘$1,000,000’’, and 

5 (4) by adding at the end the following new 

6 paragraph: 

7 ‘‘(5) ADJUSTMENT FOR INFLATION.—In the 

8 case of a taxable year beginning after 2023, the 

9 $500,000 and $1,000,000 amounts in paragraphs 

10 (1), (2), and (4) shall be increased by an amount 

11 equal to— 

12 ‘‘(A) such dollar amount, multiplied by 

13 ‘‘(B) the cost-of-living adjustment deter14 mined under section 1(f)(3) for the calendar 

15 year in which the taxable year begins, deter16 mined by substituting ‘2022’ for ‘2016’ in sub17 paragraph (A)(ii) thereof. 

18 If any increase under this clause is not a multiple 

19 of $100, such increase shall be rounded to the next 

20 lowest multiple of $100.’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to sales and exchanges after the 

23 date of the enactment of this Act. 


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1 TITLE II— INCREASING ACCESS 

2 TO HOUSING AND ADDRESS3 ING COST 

4 SEC. 201. EXPANDING WORKFORCE AND VOLUNTEER HOUS5 ING. 

6 (a) CONGRESSIONAL FINDINGS.—The Congress finds 

7 that— 

8 (1) the lack of affordable housing in the United 

9 States is an issue impacting millions of middle-class, 

10 working American families; 

11 (2) many of these families earn more annually 

12 than the income limits for certain Federal housing 

13 financing and benefits; and 

14 (3) these families are often excluded from living 

15 in neighborhoods near their places of work, schools, 

16 shopping, and healthcare due to a lack of afford17 ability. 

18 (b) REPORT TO CONGRESS.—Not later than 180 days 

19 after the date of the enactment of this Act, the Comp20 troller General of the United States shall submit to the 

21 Congress a report that— 

22 (1) identifies issues with housing affordability 

23 for America’s middle-income homeowners and rent24 ers, including identifying geographically where hous25 ing is the most unaffordable for these populations; 


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1 (2) identifies Federal housing programs, includ2 ing Federal tax credits, grants, credit programs, and 

3 other programs that currently benefit lower-income 

4 households, which are not available to middle-income 

5 households; 

6 (3) identifies any gaps in the inclusion of mid7 dle-income households in Federal housing programs 

8 designed to promote affordability; 

9 (4) sets forth recommendations for a definition 

10 of ‘‘workforce housing’’ based on income parameters 

11 in order to assist Federal agencies in including mid12 dle-income households under existing Federal pro13 grams; and 

14 (5) analyzes how such a definition could relate 

15 to incentives for workforce housing development 

16 through Federal programs, policies, and other initia17 tives. 

18 SEC. 202. SUPPORTING AFFORDABILITY AND SAFETY FOR 

19 PUBLIC SERVANTS. 

20 Section 3(a) of the United States Housing Act of 

21 1937 (42 U.S.C. 1437a(a)) is amended— 

22 (1) in paragraph (1), by striking ‘‘Except as 

23 provided in paragraph (2)’’ and inserting ‘‘Except as 

24 provided in paragraphs (2) and (4)’’; and 

25 (2) in paragraph (4)— 


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1 (A) in the heading, by striking ‘‘OCCU2 PANCY BY POLICE OFFICERS’’ and inserting, 

3 ‘‘OCCUPANCY BY POLICE OFFICERS, FIRE4 FIGHTERS, AND EMERGENCY MEDICAL TECHNI5 CIANS’’; 

6 (B) by redesignating subparagraph (C) as 

7 subparagraph (D); 

8 (C) by inserting after subparagraph (B) 

9 the following: 

10 ‘‘(C) RENTAL PAYMENTS.—Notwith11 standing paragraph (1), a family of which one 

12 or more members are a police officer, fire13 fighter, or emergency medical technician shall 

14 pay as rent for a dwelling unit assisted under 

15 this Act the highest of the following amounts, 

16 rounded to the nearest dollar: 

17 ‘‘(i) 15 per centum of the family’s 

18 monthly adjusted income; or 

19 ‘‘(ii) 5 per centum of the family’s 

20 monthly income’’; and 

21 (D) by amending subparagraph (D), as so 

22 redesignated, to read as follows: 

23 ‘‘(D) DEFINITIONS.—In this paragraph: 

24 ‘‘(i) POLICE OFFICER.—The term ‘po25 lice officer’ means any person determined 


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1 by a public housing agency to be, during 

2 the period of residence of that person in 

3 public housing, employed on a full-time 

4 basis as a duly licensed professional police 

5 officer by a Federal, State, or local govern6 ment or by any agency thereof (including 

7 a public housing agency having an accred8 ited police force). 

9 ‘‘(ii) FIREFIGHTER.—The term ‘fire10 fighter’ means any person determined by a 

11 public housing agency to be, during the pe12 riod of residence of that person in public 

13 housing, employed on a full-time basis as 

14 a firefighter by a fire department or emer15 gency medical services responder unit of 

16 the Federal Government, a State, unit of 

17 general local government, or an Indian 

18 tribal government. 

19 ‘‘(iii) EMERGENCY MEDICAL TECHNI20 CIAN.—The term ‘emergency medical tech21 nician’ means any person determined by a 

22 public housing agency to be, during the pe23 riod of residence of that person in public 

24 housing, employed on a full-time basis as 

25 an emergency medical technician by a fire 


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1 department or emergency medical services 

2 responder unit of the Federal Government, 

3 a State, unit of general local government, 

4 or an Indian tribal government.’’. 

5 SEC. 203. EXPANDING PROGRAMS SUPPORTING HOMEOWN6 ERSHIP FOR THOSE SERVING THE COMMU7 NITY. 

8 (a) ELIGIBILITY FOR GOOD NEIGHBORS NEXT DOOR

9 SALES PROGRAM.—Members of the Armed Forces, fire10 fighters, and law enforcement officers shall be eligible to 

11 purchase eligible properties under the Good Neighbor 

12 Next Door Sales Program of the Secretary of Housing and 

13 Urban Development, as provided under subsection (b). 

14 (b) ELIGIBLE PROPERTIES.—Notwithstanding sec15 tion 204 of the National Housing Act (12 U.S.C. 1710), 

16 part 291 of the regulations of the Secretary of Housing 

17 and Urban Development (24 C.F.R. part 291), or any 

18 other provision of law, regulation, guideline, order, or no19 tice, in carrying out the Good Neighbor Next Door Sales 

20 Program for single-unit properties acquired by the Sec21 retary, properties shall be made available for purchase 

22 under the Program by members of the Armed Forces, by 

23 firefighters, and by law enforcement officers without re24 gard to whether or not they are located in a revitalization 

25 area. 


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1 (c) REGULATIONS.—The Secretary of Housing and 

2 Urban Development shall amend the regulations of the 

3 Secretary as necessary to carry out subsections (a) and 

4 (b). 

5 SEC. 204. IMPROVING VOLUNTEER FIRST RESPONDER 

6 HOUSING. 

7 (a) DEFINITIONS.—In this section: 

8 (1) BONA FIDE VOLUNTEER; ELIGIBLE EM9 PLOYER; QUALIFIED SERVICES.—The terms ‘‘bona 

10 fide volunteer’’, ‘‘eligible employer’’, and ‘‘qualified 

11 services’’ have the meanings given those terms in 

12 section 457(e) of the Internal Revenue Code of 

13 1986. 

14 (2) INDIAN TRIBE.—The term ‘‘Indian Tribe’’ 

15 has the meaning given the term ‘‘Indian tribe’’ in 

16 section 501(b) of the Housing Act of 1949 (42 

17 U.S.C. 1471(b)). 

18 (3) QUALIFIED VOLUNTEER FIRST RE19 SPONDER.—The term ‘‘qualified volunteer first re20 sponder’’ means any individual who— 

21 (A) is a bona fide volunteer performing 

22 qualified services for an eligible employer; 

23 (B) continuously served as a volunteer for 

24 the eligible employer during the 2-year period 

25 preceding the date on which the individual subVerDate Sep 11 2014 02:04 Oct 30, 2024 Jkt 059200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\H10009.IH H10009

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1 mits a verification letter under section 3(b) or 

2 4(b); 

3 (C) during each of the 2 years described in 

4 subparagraph (B)— 

5 (i) met the minimum requirements for 

6 active membership established by the eligi7 ble employer; or 

8 (ii) if the eligible employer did not es9 tablish minimum requirements, volunteered 

10 for not less than 200 hours; and 

11 (D) is certified as a firefighter or other 

12 first responder in the State, political subdivision 

13 of a State, or jurisdiction of an Indian Tribe in 

14 which the individual is serving as volunteer. 

15 (b) DEPARTMENT OF AGRICULTURE SINGLE FAMILY

16 HOUSING GUARANTEED LOAN PROGRAM.— 

17 (1) IN GENERAL.—A qualified volunteer first 

18 responder who submits to the Secretary of Agri19 culture (referred to in this subsection as the ‘‘Sec20 retary’’) a verification letter in accordance with 

21 paragraph (2) shall be eligible for a deduction in an22 nual income under section 3555.152(c) of title 7, 

23 Code of Federal Regulations (or any successor regu24 lation), in the amount of $18,000. 


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1 (2) VERIFICATION LETTER.—To be eligible for 

2 a deduction under paragraph (1), a qualified volun3 teer first responder shall submit to the Secretary a 

4 verification letter from the head of the eligible em5 ployer for which the qualified volunteer first re6 sponder volunteers, which shall— 

7 (A) include the date on which the qualified 

8 volunteer first responder joined the eligible em9 ployer as a volunteer; 

10 (B) attest to the Secretary that the quali11 fied volunteer first responder meets the require12 ments under subparagraphs (B) and (C) of sub13 section (a)(3); and 

14 (C) include a copy of the certification de15 scribed in subsection (a)(3)(D). 

16 (c) GOOD NEIGHBOR NEXT DOOR SALES PROGRAM

17 AND SIMILAR PROGRAMS.— 

18 (1) ELIGIBILITY.—A qualified volunteer first 

19 responder who submits to the Secretary of Housing 

20 and Urban Development (referred to in this section 

21 as the ‘‘Secretary’’) a verification letter in accord22 ance with paragraph (2) shall qualify as a firefighter 

23 or emergency medical technician for purposes of any 

24 single family property disposition program carried 

25 out by the Secretary by regulation under section 


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1 204(g) of the National Housing Act (12 U.S.C. 

2 1710(g)) that offers discounted home prices to fire3 fighters or emergency medical technicians. 

4 (2) VERIFICATION LETTER.—To qualify to pur5 chase a home under a single family property disposi6 tion program referred to in paragraph (1), a quali7 fied first responder shall submit to the Secretary a 

8 verification letter from the head of the eligible em9 ployer for which the qualified volunteer first re10 sponder volunteers, which shall— 

11 (A) include the date on which the qualified 

12 volunteer first responder joined the eligible em13 ployer as a volunteer; 

14 (B) attest to the Secretary that the quali15 fied volunteer first responder meets the require16 ments under subparagraphs (B) and (C) of sub17 section (a)(3); 

18 (C) include a copy of the certification de19 scribed in subsection (a)(3)(D); and 

20 (D) include a certification from the quali21 fied volunteer first responder of the responder’s 

22 good faith intention to continue serving as a 

23 volunteer for the eligible employer for not less 

24 than 1 year following the date of closing. 


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1 SEC. 205. IMPROVING ACCESS TO HOUSING FOR VETERANS. 

2 (a) SERVICE CONNECTED DISABILITY COMPENSA3 TION.—Section 102(a)(20) of the Housing and Commu4 nity Development Act of 1974 (42 U.S.C. 5302(a)(20)) 

5 is amended by adding at the end the following: 

6 ‘‘(C) SERVICE-CONNECTED DISABILITY

7 COMPENSATION.—When determining whether a 

8 person is of a person of low and moderate in9 come, a person of low income, or a person of 

10 moderate income under this paragraph, a State, 

11 unit of general local government, or Indian 

12 tribe shall exclude any service-connected dis13 ability compensation received by such person 

14 from the Department of Veterans Affairs.’’. 

15 (b) REPORT.—The Comptroller General of the 

16 United States shall, not later than 1 year after the date 

17 of the enactment of this Act, submit to the Congress a 

18 report that— 

19 (1) examines how service-connected disability 

20 compensation is treated for the purposes of deter21 mining eligibility for all programs administered by 

22 the Secretary of Housing and Urban Development 

23 and identifies any cases where service-connected dis24 ability compensation is treated inconsistently across 

25 a program; and 


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1 (2) with respect to each program administered 

2 by the Secretary of Housing and Urban Develop3 ment, provides legislative recommendations relating 

4 to how such program could better serve veteran pop5 ulations, and under-served communities. 

6 SEC. 206. SUPPORTING VETERAN FAMILIES IN NEED. 

7 Section 2044(e) of title 38, United States Code, is 

8 amended— 

9 (1) by redesignating subparagraphs (A) through 

10 (H) as paragraphs (1) through (8), respectively; and 

11 (2) by adding at the end the following new 

12 paragraph: 

13 ‘‘(9) The amounts that are appropriated to 

14 carry out such subsections for fiscal year 2025 and 

15 each fiscal year thereafter.’’. 

16 SEC. 207. ATTRACTING PRIVATE INVESTMENT TO BUILD 

17 AND REHABILITATE OWNER-OCCUPIED 

18 HOMES. 

19 (a) IN GENERAL.—Subpart D of part IV of sub20 chapter A of chapter 1 of the Internal Revenue Code of 

21 1986 is amended by inserting after section 42 the fol22 lowing new section: 

23 ‘‘SEC. 42A. NEIGHBORHOOD HOMES CREDIT. 

24 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec25 tion 38, the neighborhood homes credit determined under 


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1 this section for the taxable year is, with respect to each 

2 qualified residence sold by the taxpayer during such tax3 able year in an affordable sale, the lesser of— 

4 ‘‘(1) an amount equal to— 

5 ‘‘(A) the excess (if any) of— 

6 ‘‘(i) the reasonable development costs 

7 paid or incurred by the taxpayer with re8 spect to such qualified residence, over 

9 ‘‘(ii) the sale price of such qualified 

10 residence (reduced by any reasonable ex11 penses paid or incurred by the taxpayer in 

12 connection with such sale), or 

13 ‘‘(B) if the neighborhood homes credit 

14 agency determines it is necessary to ensure fi15 nancial feasibility, an amount not to exceed 120 

16 percent of the amount under subparagraph (A), 

17 ‘‘(2) 35 percent of the eligible development 

18 costs paid or incurred by the taxpayer with respect 

19 to such qualified residence, or 

20 ‘‘(3) 28 percent of the national median sale 

21 price for new homes (as determined pursuant to the 

22 most recent census data available as of the date on 

23 which the neighborhood homes credit agency makes 

24 an allocation for the qualified project). 


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1 ‘‘(b) DEVELOPMENT COSTS.—For purposes of this 

2 section— 

3 ‘‘(1) REASONABLE DEVELOPMENT COSTS.— 

4 ‘‘(A) IN GENERAL.—The term ‘reasonable 

5 development costs’ means amounts paid or in6 curred for the acquisition of buildings and land, 

7 construction, substantial rehabilitation, demoli8 tion of structures, or environmental remedi9 ation, to the extent that the neighborhood 

10 homes credit agency determines that such 

11 amounts meet the standards specified pursuant 

12 to subsection (f)(1)(C) (as of the date on which 

13 construction or substantial rehabilitation is sub14 stantially complete, as determined by such 

15 agency) and are necessary to ensure the finan16 cial feasibility of such qualified residence. 

17 ‘‘(B) CONSIDERATIONS IN MAKING DETER18 MINATION.—In making the determination under 

19 subparagraph (A), the neighborhood homes 

20 credit agency shall consider— 

21 ‘‘(i) the sources and uses of funds and 

22 the total financing, 

23 ‘‘(ii) any proceeds or receipts gen24 erated or expected to be generated by rea25 son of tax benefits, and 


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1 ‘‘(iii) the reasonableness of the devel2 opmental costs and fees. 

3 ‘‘(2) ELIGIBLE DEVELOPMENT COSTS.—The 

4 term ‘eligible development costs’ means the amount 

5 which would be reasonable development costs if the 

6 amounts taken into account as paid or incurred for 

7 the acquisition of buildings and land did not exceed 

8 75 percent of such costs determined without regard 

9 to any amount paid or incurred for the acquisition 

10 of buildings and land. 

11 ‘‘(3) SUBSTANTIAL REHABILITATION.—The 

12 term ‘substantial rehabilitation’ means amounts paid 

13 or incurred for rehabilitation of a qualified residence 

14 if such amounts exceed the greater of— 

15 ‘‘(A) $20,000, or 

16 ‘‘(B) 20 percent of the amounts paid or in17 curred by the taxpayer for the acquisition of 

18 buildings and land with respect to such quali19 fied residence. 

20 ‘‘(4) CONSTRUCTION AND REHABILITATION

21 ONLY AFTER ALLOCATION TAKEN INTO ACCOUNT.— 

22 ‘‘(A) IN GENERAL.—The terms ‘reasonable 

23 development costs’ and ‘eligible development 

24 costs’ shall not include any amount paid or in25 curred before the date on which an allocation is 


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1 made to the taxpayer under subsection (e) with 

2 respect to the qualified project of which the 

3 qualified residence is part unless such amount 

4 is paid or incurred for the acquisition of build5 ings or land. 

6 ‘‘(B) LAND AND BUILDING ACQUISITION

7 COSTS.—Amounts paid or incurred for the ac8 quisition of buildings or land shall be included 

9 under paragraph (A) only if paid or incurred 

10 not more than 3 years before the date on which 

11 the allocation referred to in subparagraph (A) 

12 is made. If the taxpayer acquired any building 

13 or land from an entity (or any related party to 

14 such entity) that holds an ownership interest in 

15 the taxpayer, then such entity must also have 

16 acquired such property within such 3-year pe17 riod, and the acquisition cost included under 

18 subparagraph (A) with respect to the taxpayer 

19 shall not exceed the amount such entity paid or 

20 incurred to acquire such property. 

21 ‘‘(c) QUALIFIED RESIDENCE.—For purposes of this 

22 section— 

23 ‘‘(1) IN GENERAL.—The term ‘qualified resi24 dence’ means a residence that— 


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1 ‘‘(A) is real property affixed on a perma2 nent foundation, 

3 ‘‘(B) is— 

4 ‘‘(i) a house which is comprised of 4 

5 or fewer residential units, 

6 ‘‘(ii) a condominium unit, or 

7 ‘‘(iii) a house or an apartment owned 

8 by a cooperative housing corporation (as 

9 defined in section 216(b)), 

10 ‘‘(C) is part of a qualified project with re11 spect to which the neighborhood homes credit 

12 agency has made an allocation under subsection 

13 (e), and 

14 ‘‘(D) is located in a qualified census tract 

15 (determined as of the date of such allocation). 

16 ‘‘(2) QUALIFIED CENSUS TRACT.— 

17 ‘‘(A) IN GENERAL.—The term ‘qualified 

18 census tract’ means a census tract— 

19 ‘‘(i) which— 

20 ‘‘(I) has a median family income 

21 which does not exceed 80 percent of 

22 the median family income for the ap23 plicable area, 


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1 ‘‘(II) has a poverty rate that is 

2 not less than 130 percent of the pov3 erty rate of the applicable area, and 

4 ‘‘(III) has a median value for 

5 owner-occupied homes that does not 

6 exceed the median value for owner-oc7 cupied homes in the applicable area, 

8 ‘‘(ii) which— 

9 ‘‘(I) is located in a city which has 

10 a population of not less than 50,000 

11 and such city has a poverty rate that 

12 is not less than 150 percent of the 

13 poverty rate of the applicable area, 

14 ‘‘(II) has a median family income 

15 which does not exceed the median 

16 family income for the applicable area, 

17 and 

18 ‘‘(III) has a median value for 

19 owner-occupied homes that does not 

20 exceed 80 percent of the median value 

21 for owner-occupied homes in the ap22 plicable area, 

23 ‘‘(iii) which— 

24 ‘‘(I) is located in a nonmetropoli25 tan county, 


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1 ‘‘(II) has a median family income 

2 which does not exceed the median 

3 family income for the applicable area, 

4 and 

5 ‘‘(III) has been designated by a 

6 neighborhood homes credit agency 

7 under this clause, or 

8 ‘‘(iv) which is not otherwise a quali9 fied census tract and is located in a dis10 aster area (as defined in section 

11 7508A(d)(3)), but only with respect to 

12 credits allocated in any period during 

13 which the President of the United States 

14 has determined that such area warrants in15 dividual or individual and public assistance 

16 by the Federal Government under the Rob17 ert T. Stafford Disaster Relief and Emer18 gency Assistance Act. 

19 ‘‘(B) APPLICABLE AREA.—The term ‘appli20 cable area’ means— 

21 ‘‘(i) in the case of a metropolitan cen22 sus tract, the metropolitan area in which 

23 such census tract is located, and 


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1 ‘‘(ii) in the case of a census tract 

2 other than a census tract described in 

3 clause (i), the State. 

4 ‘‘(d) AFFORDABLE SALE.—For purposes of this sec5 tion— 

6 ‘‘(1) IN GENERAL.—The term ‘affordable sale’ 

7 means a sale to a qualified homeowner of a qualified 

8 residence that the neighborhood homes credit agency 

9 certifies as meeting the standards promulgated 

10 under subsection (f)(1)(D) for a price that does not 

11 exceed— 

12 ‘‘(A) in the case of any qualified residence 

13 not described in subparagraph (B), (C), or (D), 

14 the amount equal to the product of 4 multiplied 

15 by the median family income for the applicable 

16 area (as determined pursuant to the most re17 cent census data available as of the date of the 

18 contract for such sale), 

19 ‘‘(B) in the case of a house comprised of 

20 2 residential units, 125 percent of the amount 

21 described in subparagraph (A), 

22 ‘‘(C) in the case of a house comprised of 

23 3 residential units, 150 percent of the amount 

24 described in subparagraph (A), or 


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1 ‘‘(D) in the case of a house comprised of 

2 4 residential units, 175 percent of the amount 

3 described in subparagraph (A). 

4 ‘‘(2) QUALIFIED HOMEOWNER.—The term 

5 ‘qualified homeowner’ means, with respect to a 

6 qualified residence, an individual— 

7 ‘‘(A) who owns and uses such qualified res8 idence as the principal residence of such indi9 vidual, and 

10 ‘‘(B) whose family income (determined as 

11 of the date that a binding contract for the af12 fordable sale of such residence is entered into) 

13 is 140 percent or less of the median family in14 come for the applicable area in which the quali15 fied residence is located. 

16 ‘‘(e) CREDIT CEILING AND ALLOCATIONS.— 

17 ‘‘(1) CREDIT LIMITED BASED ON ALLOCATIONS

18 TO QUALIFIED PROJECTS.— 

19 ‘‘(A) IN GENERAL.—The credit allowed 

20 under subsection (a) to any taxpayer for any 

21 taxable year with respect to one or more quali22 fied residences which are part of the same 

23 qualified project shall not exceed the excess (if 

24 any) of— 


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1 ‘‘(i) the amount allocated by the 

2 neighborhood homes credit agency under 

3 this paragraph to such taxpayer with re4 spect to such qualified project, over 

5 ‘‘(ii) the aggregate amount of credit 

6 allowed under subsection (a) to such tax7 payer with respect to qualified residences 

8 which are a part of such qualified project 

9 for all prior taxable years. 

10 ‘‘(B) DEADLINE FOR COMPLETION.—No 

11 credit shall be allowed under subsection (a) 

12 with respect to any qualified residence unless 

13 the affordable sale of such residence is during 

14 the 5-year period beginning on the date of the 

15 allocation to the qualified project of which such 

16 residence is a part (or, in the case of a qualified 

17 residence to which subsection (i) applies, the re18 habilitation of such residence is completed dur19 ing such 5-year period). 

20 ‘‘(2) LIMITATIONS ON ALLOCATIONS TO QUALI21 FIED PROJECTS.— 

22 ‘‘(A) ALLOCATIONS LIMITED BY STATE

23 NEIGHBORHOOD HOMES CREDIT CEILING.—The 

24 aggregate amount allocated to taxpayers with 

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1 hood homes credit agency of any State for any 

2 calendar year shall not exceed the State neigh3 borhood homes credit amount of such State for 

4 such calendar year. 

5 ‘‘(B) SET-ASIDE FOR CERTAIN PROJECTS

6 INVOLVING QUALIFIED NONPROFIT ORGANIZA7 TIONS.—Rules similar to the rules of section 

8 42(h)(5) shall apply for purposes of this sec9 tion. 

10 ‘‘(3) DETERMINATION OF STATE NEIGHBOR11 HOOD HOMES CREDIT CEILING.— 

12 ‘‘(A) IN GENERAL.—The State neighbor13 hood homes credit amount for a State for a cal14 endar year is an amount equal to the sum of— 

15 ‘‘(i) the greater of— 

16 ‘‘(I) the product of $7, multiplied 

17 by the State population (determined 

18 in accordance with section 146(j)), or 

19 ‘‘(II) $9,000,000, and 

20 ‘‘(ii) any amount previously allocated 

21 to any taxpayer with respect to any quali22 fied project by the neighborhood homes 

23 credit agency of such State which can no 

24 longer be allocated to any qualified resi25 dence because the 5-year period described 


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1 in paragraph (1)(B) expires during cal2 endar year. 

3 ‘‘(B) 3-YEAR CARRYFORWARD OF UNUSED

4 LIMITATION.—The State neighborhood homes 

5 credit amount for a State for a calendar year 

6 shall be increased by the excess (if any) of the 

7 State neighborhood homes credit amount for 

8 such State for the preceding calendar year over 

9 the aggregate amount allocated by the neigh10 borhood homes credit agency of such State dur11 ing such preceding calendar year. Any amount 

12 carried forward under the preceding sentence 

13 shall not be carried past the third calendar year 

14 after the calendar year in which such credit 

15 amount originally arose, determined on a first16 in, first-out basis. 

17 ‘‘(f) RESPONSIBILITIES OF NEIGHBORHOOD HOMES

18 CREDIT AGENCIES.— 

19 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

20 (e), the State neighborhood homes credit dollar 

21 amount shall be zero for a calendar year unless the 

22 neighborhood homes credit agency of the State— 

23 ‘‘(A) allocates such amount pursuant to a 

24 qualified allocation plan of the neighborhood 

25 homes credit agency, 


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1 ‘‘(B) allocates not more than 20 percent of 

2 amounts allocated in the previous year (or for 

3 allocations made in 2023, not more than 20 

4 percent of the neighborhood homes credit ceil5 ing for such year) to projects with respect to 

6 qualified residences which— 

7 ‘‘(i) are located in census tracts de8 scribed in subsection (c)(2)(A)(iii), 

9 (c)(2)(A)(iv), (i)(5), or 

10 ‘‘(ii) are not located in a qualified 

11 census tract but meet the requirements of 

12 subsection (i)(8), 

13 ‘‘(C) promulgates standards with respect 

14 to reasonable qualified development costs and 

15 fees, 

16 ‘‘(D) promulgates standards with respect 

17 to construction quality, 

18 ‘‘(E) in the case of any neighborhood 

19 homes credit agency which makes an allocation 

20 to a qualified project which includes any quali21 fied residence to which subsection (i) applies, 

22 promulgates standards with respect to pro23 tecting the owners of such residences, including 

24 the capacity of such owners to pay rehabilita25 tion costs not covered by the credit provided by 


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1 this section and providing for the disclosure to 

2 such owners of their rights and responsibilities 

3 with respect to the rehabilitation of such resi4 dences, 

5 ‘‘(F) submits to the Secretary (at such 

6 time and in such manner as the Secretary may 

7 prescribe) an annual report specifying— 

8 ‘‘(i) the amount of the neighborhood 

9 homes credits allocated to each qualified 

10 project for the previous year, 

11 ‘‘(ii) with respect to each qualified 

12 residence completed in the preceding cal13 endar year— 

14 ‘‘(I) the census tract in which 

15 such qualified residence is located, 

16 ‘‘(II) with respect to the qualified 

17 project that includes such qualified 

18 residence, the year in which such 

19 project received an allocation under 

20 this section, 

21 ‘‘(III) whether such qualified res22 idence was new, substantially rehabili23 tated and sold to a qualified home24 owner, or substantially rehabilitated 

25 pursuant to subsection (i), 


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1 ‘‘(IV) the eligible development 

2 costs of such qualified residence, 

3 ‘‘(V) the amount of the neighbor4 hood homes credit with respect to 

5 such qualified residence, 

6 ‘‘(VI) the sales price of such 

7 qualified residence, if applicable, and 

8 ‘‘(VII) the family income of the 

9 qualified homeowner (expressed as a 

10 percentage of the applicable area me11 dian family income for the location of 

12 the qualified residence), and 

13 ‘‘(iii) such other information as the 

14 Secretary may require, and 

15 ‘‘(G) makes available to the general public 

16 a written explanation for any allocation of a 

17 neighborhood homes credit dollar amount which 

18 is not made in accordance with established pri19 orities and selection criteria of the neighbor20 hood homes credit agency. 

21 Subparagraph (B) shall be applied by substituting 

22 ‘40 percent’ for ‘20 percent’ each place it appears in 

23 the case of any State in which at least 45 percent 

24 of the State population resides outside metropolitan 

25 statistical areas (within the meaning of section 


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1 143(k)(2)(B)) and less than 20 percent of the cen2 sus tracts located in the State are described in sub3 section (c)(2)(A)(i). 

4 ‘‘(2) QUALIFIED ALLOCATION PLAN.—For pur5 poses of this subsection, the term ‘qualified alloca6 tion plan’ means any plan which— 

7 ‘‘(A) sets forth the selection criteria to be 

8 used to prioritize qualified projects for alloca9 tions of State neighborhood homes credit dollar 

10 amounts, including— 

11 ‘‘(i) the need for new or substantially 

12 rehabilitated owner-occupied homes in the 

13 area addressed by the project, 

14 ‘‘(ii) the expected contribution of the 

15 project to neighborhood stability and revi16 talization, including the impact on neigh17 borhood residents, 

18 ‘‘(iii) the capability and prior perform19 ance of the project sponsor, and 

20 ‘‘(iv) the likelihood the project will re21 sult in long-term homeownership, 

22 ‘‘(B) has been made available for public 

23 comment, and 

24 ‘‘(C) provides a procedure that the neigh25 borhood homes credit agency (or any agent or 


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1 contractor of such agency) shall follow for pur2 poses of— 

3 ‘‘(i) identifying noncompliance with 

4 any provisions of this section, and 

5 ‘‘(ii) notifying the Internal Revenue 

6 Service of any such noncompliance of 

7 which the agency becomes aware. 

8 ‘‘(g) REPAYMENT.— 

9 ‘‘(1) IN GENERAL.— 

10 ‘‘(A) SOLD DURING 5-YEAR PERIOD.—If a 

11 qualified residence is sold during the 5-year pe12 riod beginning immediately after the affordable 

13 sale of such qualified residence referred to in 

14 subsection (a), the seller shall transfer an 

15 amount equal to the repayment amount to the 

16 relevant neighborhood homes credit agency. 

17 ‘‘(B) USE OF REPAYMENTS.—A neighbor18 hood homes credit agency shall use any amount 

19 received pursuant to subparagraph (A) only for 

20 purposes of qualified projects. 

21 ‘‘(2) REPAYMENT AMOUNT.—For purposes of 

22 paragraph (1)(A)— 

23 ‘‘(A) IN GENERAL.—The repayment 

24 amount is an amount equal to the applicable 


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1 percentage of the gain from the sale to which 

2 the repayment relates. 

3 ‘‘(B) APPLICABLE PERCENTAGE.—For 

4 purposes of subparagraph (A), the applicable 

5 percentage is 50 percent, reduced by 10 per6 centage points for each year of the 5-year pe7 riod referred to in paragraph (1)(A) which ends 

8 before the date of such sale. 

9 ‘‘(3) LIEN FOR REPAYMENT AMOUNT.—A 

10 neighborhood homes credit agency receiving an allo11 cation under this section shall place a lien on each 

12 qualified residence that is built or rehabilitated as 

13 part of a qualified project for an amount such agen14 cy deems necessary to ensure potential repayment 

15 pursuant to paragraph (1)(A). 

16 ‘‘(4) WAIVER.— 

17 ‘‘(A) IN GENERAL.—The neighborhood 

18 homes credit agency may waive the repayment 

19 required under paragraph (1)(A) if the agency 

20 determines that making a repayment would 

21 constitute a hardship to the seller. 

22 ‘‘(B) HARDSHIP.—For purposes of sub23 paragraph (A), with respect to the seller, a 

24 hardship may include— 

25 ‘‘(i) divorce, 


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1 ‘‘(ii) disability, 

2 ‘‘(iii) illness, or 

3 ‘‘(iv) any other hardship identified by 

4 the neighborhood homes credit agency for 

5 purposes of this paragraph. 

6 ‘‘(h) OTHER DEFINITIONS AND SPECIAL RULES.— 

7 For purposes of this section— 

8 ‘‘(1) NEIGHBORHOOD HOMES CREDIT AGEN9 CY.—The term ‘neighborhood homes credit agency’ 

10 means the agency designated by the governor of a 

11 State as the neighborhood homes credit agency of 

12 the State. 

13 ‘‘(2) QUALIFIED PROJECT.—The term ‘qualified 

14 project’ means a project that a neighborhood homes 

15 credit agency certifies will build or substantially re16 habilitate one or more qualified residences. 

17 ‘‘(3) DETERMINATIONS OF FAMILY INCOME.— 

18 Rules similar to the rules of section 143(f)(2) shall 

19 apply for purposes of this section. 

20 ‘‘(4) POSSESSIONS TREATED AS STATES.—The 

21 term ‘State’ includes the District of Columbia and 

22 the possessions of the United States. 

23 ‘‘(5) SPECIAL RULES RELATED TO CONDOMIN24 IUMS AND COOPERATIVE HOUSING CORPORATIONS.— 


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1 ‘‘(A) DETERMINATION OF DEVELOPMENT

2 COSTS.—In the case of a qualified residence de3 scribed in clause (ii) or (iii) of subsection 

4 (c)(1)(A), the reasonable development costs and 

5 eligible development costs of such qualified resi6 dence shall be an amount equal to such costs, 

7 respectively, of the entire condominium or coop8 erative housing property in which such qualified 

9 residence is located, multiplied by a fraction— 

10 ‘‘(i) the numerator of which is the 

11 total floor space of such qualified resi12 dence, and 

13 ‘‘(ii) the denominator of which is the 

14 total floor space of all residences within 

15 such property. 

16 ‘‘(B) TENANT-STOCKHOLDERS OF COOPER17 ATIVE HOUSING CORPORATIONS TREATED AS

18 OWNERS.—In the case of a cooperative housing 

19 corporation (as such term is defined in section 

20 216(b)), a tenant-stockholder shall be treated 

21 as owning the house or apartment which such 

22 person is entitled to occupy. 

23 ‘‘(6) RELATED PARTY SALES NOT TREATED AS

24 AFFORDABLE SALES.— 


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1 ‘‘(A) IN GENERAL.—A sale between related 

2 persons shall not be treated as an affordable 

3 sale. 

4 ‘‘(B) RELATED PERSONS.—For purposes 

5 of this paragraph, a person (in this subpara6 graph referred to as the ‘related person’) is re7 lated to any person if the related person bears 

8 a relationship to such person specified in sec9 tion 267(b) or 707(b)(1), or the related person 

10 and such person are engaged in trades or busi11 nesses under common control (within the mean12 ing of subsections (a) and (b) of section 52). 

13 For purposes of the preceding sentence, in ap14 plying section 267(b) or 707(b)(1), ‘10 percent’ 

15 shall be substituted for ‘50 percent’. 

16 ‘‘(7) INFLATION ADJUSTMENT.— 

17 ‘‘(A) IN GENERAL.—In the case of a cal18 endar year after 2023, the dollar amounts in 

19 subsections (b)(3)(A), (e)(3)(A)(i)(I), 

20 (e)(3)(A)(i)(II), and (i)(2)(C) shall each be in21 creased by an amount equal to— 

22 ‘‘(i) such dollar amount, multiplied by 

23 ‘‘(ii) the cost-of-living adjustment de24 termined under section 1(f)(3) for such 

25 calendar year by substituting ‘calendar 


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1 year 2022’ for ‘calendar year 2016’ in sub2 paragraph (A)(ii) thereof. 

3 ‘‘(B) ROUNDING.— 

4 ‘‘(i) In the case of the dollar amounts 

5 in subsections (b)(3)(A) and (i)(2)(C), any 

6 increase under paragraph (1) which is not 

7 a multiple of $1,000 shall be rounded to 

8 the nearest multiple of $1,000. 

9 ‘‘(ii) In the case of the dollar amount 

10 in subsection (e)(3)(A)(i)(I), any increase 

11 under paragraph (1) which is not a mul12 tiple of $0.01 shall be rounded to the near13 est multiple of $0.01. 

14 ‘‘(iii) In the case of the dollar amount 

15 in subsection (e)(3)(A)(i)(II), any increase 

16 under paragraph (1) which is not a mul17 tiple of $100,000 shall be rounded to the 

18 nearest multiple of $100,000. 

19 ‘‘(8) REPORT.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 annually issue a report, to be made available to 

22 the public, which contains the information sub23 mitted pursuant to subsection (f)(1)(F). 

24 ‘‘(B) DE-IDENTIFICATION.—The Secretary 

25 shall ensure that any information made public 


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1 pursuant to subparagraph (A) excludes any in2 formation that would allow for the identification 

3 of qualified homeowners. 

4 ‘‘(9) LIST OF QUALIFIED CENSUS TRACTS.— 

5 The Secretary of Housing and Urban Development 

6 shall, for each year, make publicly available a list of 

7 qualified census tracts under— 

8 ‘‘(A) on a combined basis, clauses (i) and 

9 (ii) of subsection (c)(2)(A), 

10 ‘‘(B) clause (iii) of such subsection, and 

11 ‘‘(C) subsection (i)(5)(A). 

12 ‘‘(10) DENIAL OF DEDUCTIONS IF CONVERTED

13 TO RENTAL HOUSING.—If, during the 5-year period 

14 beginning immediately after the affordable sale of a 

15 qualified residence referred to in subsection (a), an 

16 individual who owns a qualified residence (whether 

17 or not such individual was the purchaser in such af18 fordable sale) fails to use such qualified residence as 

19 such individual’s principal residence for any period 

20 of time, no deduction shall be allowed for expenses 

21 paid or incurred by such individual with respect to 

22 renting, during such period of time, such qualified 

23 residence. 

24 ‘‘(i) APPLICATION OF CREDIT WITH RESPECT TO

25 OWNER-OCCUPIED REHABILITATIONS.— 


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1 ‘‘(1) IN GENERAL.—In the case of a qualified 

2 rehabilitation by the taxpayer of any qualified resi3 dence which is owned (as of the date that the writ4 ten binding contract referred to in paragraph (3) is 

5 entered into) by a specified homeowner, the rules of 

6 paragraphs (2) through (7) shall apply. 

7 ‘‘(2) ALTERNATIVE CREDIT DETERMINATION.— 

8 In the case of any qualified residence described in 

9 paragraph (1), the neighborhood homes credit deter10 mined under subsection (a) with respect to such res11 idence shall (in lieu of any credit otherwise deter12 mined under subsection (a) with respect to such res13 idence) be allowed in the taxable year during which 

14 the qualified rehabilitation is completed (as deter15 mined by the neighborhood homes credit agency) 

16 and shall be equal to the least of— 

17 ‘‘(A) the excess (if any) of— 

18 ‘‘(i) the amounts paid or incurred by 

19 the taxpayer for the qualified rehabilitation 

20 of the qualified residence to the extent that 

21 such amounts are certified by the neigh22 borhood homes credit agency (at the time 

23 of the completion of such rehabilitation) as 

24 meeting the standards specified pursuant 

25 to subsection (f)(1)(C), over 


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1 ‘‘(ii) any amounts paid to such tax2 payer for such rehabilitation, 

3 ‘‘(B) 50 percent of the amounts described 

4 in subparagraph (A)(i), or 

5 ‘‘(C) $50,000. 

6 ‘‘(3) QUALIFIED REHABILITATION.— 

7 ‘‘(A) IN GENERAL.—For purposes of this 

8 subsection, the term ‘qualified rehabilitation’ 

9 means a rehabilitation or reconstruction per10 formed pursuant to a written binding contract 

11 between the taxpayer and the specified home12 owner if the amount paid or incurred by the 

13 taxpayer in the performance of such rehabilita14 tion or reconstruction exceeds the dollar 

15 amount in effect under subsection (b)(3)(A). 

16 ‘‘(B) APPLICATION OF LIMITATION TO EX17 PENSES PAID OR INCURRED AFTER ALLOCA18 TION.—A rule similar to the rule of section 

19 (b)(4) shall apply for purposes of this sub20 section. 

21 ‘‘(4) SPECIFIED HOMEOWNER.—For purposes 

22 of this subsection, the term ‘qualified homeowner’ 

23 means, with respect to a qualified residence, an indi24 vidual— 


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1 ‘‘(A) who owns and uses such qualified res2 idence as the principal residence of such indi3 vidual as of the date that the written binding 

4 contract referred to in paragraph (3) is entered 

5 into, and 

6 ‘‘(B) whose family income (determined as 

7 of such date) does not exceed the median family 

8 income for the applicable area (with respect to 

9 the census tract in which the qualified residence 

10 is located). 

11 ‘‘(5) ADDITIONAL CENSUS TRACTS IN WHICH

12 OWNER-OCCUPIED RESIDENCES MAY BE LOCATED.— 

13 In the case of any qualified residence described in 

14 paragraph (1), the term ‘qualified census tract’ in15 cludes any census tract which— 

16 ‘‘(A) meets the requirements of subsection 

17 (c)(2)(A)(i) without regard to subclause (III) 

18 thereof, and 

19 ‘‘(B) is designated by the neighborhood 

20 homes credit agency for purposes of this para21 graph. 

22 ‘‘(6) MODIFICATION OF REPAYMENT REQUIRE23 MENT.—In the case of any qualified residence de24 scribed in paragraph (1), subsection (g) shall be ap25 plied by beginning the 5-year period otherwise deVerDate Sep 11 2014 02:04 Oct 30, 2024 Jkt 059200 PO 00000 Frm 00137 Fmt 6652 Sfmt 6201 E:\BILLS\H10009.IH H10009

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1 scribed therein on the date on which the qualified 

2 homeowner acquired such residence. 

3 ‘‘(7) RELATED PARTIES.—Paragraph (1) shall 

4 not apply if the taxpayer is the owner of the quali5 fied residence described in paragraph (1) or is re6 lated (within the meaning of subsection (h)(6)(B)) 

7 to such owner. 

8 ‘‘(8) PYRRHOTITE REMEDIATION.—The require9 ment of subsection (c)(1)(C) shall not apply to a 

10 qualified rehabilitation under this subsection of a 

11 qualified residence that is documented by an engi12 neer’s report and core testing to have a foundation 

13 that is adversely impacted by pyrrhotite or other 

14 iron sulfide minerals. 

15 ‘‘(j) REGULATIONS.—The Secretary shall prescribe 

16 such regulations as may be necessary or appropriate to 

17 carry out the purposes of this section, including regula18 tions that prevent avoidance of the rules, and abuse of 

19 the purposes, of this section.’’. 

20 (b) CREDIT ALLOWED AS PART OF GENERAL BUSI21 NESS CREDIT.—Section 38(b) of the Internal Revenue 

22 Code of 1986 is amended by striking ‘‘plus’’ at the end 

23 of paragraph (37), by striking the period at the end of 

24 paragraph (38) and inserting ‘‘, plus’’, and by adding at 

25 the end the following new paragraph: 


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1 ‘‘(39) the neighborhood homes credit deter2 mined under section 42A(a).’’. 

3 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN4 IMUM TAX.—Section 38(c)(4)(B) of the Internal Revenue 

5 Code of 1986 is amended by redesignating clauses (iv) 

6 through (xii) as clauses (v) through (xiii), respectively, and 

7 by inserting after clause (iii) the following new clause: 

8 ‘‘(iv) the credit determined under sec9 tion 42A,’’. 

10 (d) BASIS ADJUSTMENTS.— 

11 (1) ENERGY EFFICIENT HOME IMPROVEMENT

12 CREDIT.—Section 25C(g) of the Internal Revenue 

13 Code of 1986 is amended by adding after the first 

14 sentence the following new sentence: ‘‘This sub15 section shall not apply for purposes of determining 

16 the eligible development costs or adjusted basis of 

17 any building under section 42A.’’. 

18 (2) RESIDENTIAL CLEAN ENERGY CREDIT.— 

19 Section 25D(f) of such Code is amended by adding 

20 after the first sentence the following new sentence: 

21 ‘‘This subsection shall not apply for purposes of de22 termining the eligible development costs or adjusted 

23 basis of any building under section 42A.’’. 

24 (3) NEW ENERGY EFFICIENT HOME CREDIT.— 

25 Section 45L(e) of such Code is amended by inserting 


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1 ‘‘or for purposes of determining the eligible develop2 ment costs or adjusted basis of any building under 

3 section 42A’’ after ‘‘section 42’’. 

4 (e) EXCLUSION FROM GROSS INCOME.—Part III of 

5 subchapter B of chapter 1 of the Internal Revenue Code 

6 of 1986 is amended by inserting before section 140 the 

7 following new section: 

8 ‘‘SEC. 139J. STATE ENERGY SUBSIDIES FOR QUALIFIED 

9 RESIDENCES. 

10 ‘‘(a) EXCLUSION FROM GROSS INCOME.—Gross in11 come shall not include the value of any subsidy provided 

12 to a taxpayer (whether directly or indirectly) by any State 

13 energy office (as defined in section 124(a) of the Energy 

14 Policy Act of 2005 (42 U.S.C. 15821(a))) for purposes 

15 of any energy improvements made to a qualified residence 

16 (as defined in section 42A(c)(1)).’’. 

17 (f) CONFORMING AMENDMENTS.— 

18 (1) Subsections (i)(3)(C), (i)(6)(B)(i), and 

19 (k)(1) of section 469 of the Internal Revenue Code 

20 of 1986 are each amended by inserting ‘‘or 42A’’ 

21 after ‘‘section 42’’. 

22 (2) The table of sections for subpart D of part 

23 IV of subchapter A of chapter 1 of such Code is 

24 amended by inserting after the item relating to sec25 tion 42 the following new item: 

‘‘Sec. 42A. Neighborhood homes credit.’’. 


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1 (3) The table of sections for part III of sub2 chapter B of chapter 1 of such Code is amended by 

3 inserting before the item relating to section 140 the 

4 following new item: 

‘‘Sec. 139J. State energy subsidies for qualified residences.’’. 

5 (g) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2023. 

8 SEC. 208. BETTER UTILIZING AND DISPOSING OF UNUSED 

9 MILITARY AND GOVERNMENT LANDS FOR 

10 HOUSING. 

11 (a) IN GENERAL.—A State or unit of local govern12 ment may submit a petition to a Federal agency request13 ing to use unused property owned by such Federal agency 

14 for the construction of affordable housing. 

15 (b) SUBMISSION TO PBRB.—Any Federal agency 

16 that receives a petition under subsection (a) shall submit 

17 a copy of such petition to the Public Buildings Reform 

18 Board. 

19 (c) DETERMINATION.—A Federal agency that re20 ceives a petition under subsection (a) shall, not less that 

21 60 days after receiving such petition determine whether 

22 the property is excess. 

23 (d) JUSTIFICATION REQUIRED.—If a Federal agency 

24 determines under subsection (c) that a property is not ex25 cess such Federal agency shall submit to the Office of 


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1 Management and Budget a statement that justifies why 

2 such property is not excess. 

3 (e) DONATION BY GSA.—If a Federal agency deter4 mines a property to be excess under subsection (b), the 

5 General Services Administration may donate such prop6 erty to the State or unit of local government that sub7 mitted the petition under subsection (a). 

8 SEC. 209. ENERGY CONSERVATION STANDARDS FOR MANU9 FACTURED HOUSING. 

10 The Secretary of Energy may not, by rule or other11 wise, establish energy conservation standards for manu12 factured housing. 

13 SEC. 210. RENTAL ASSISTANCE DEMONSTRATION PRO14 GRAM. 

15 The matter under the heading ‘‘Rental Assistance 

16 Demonstration’’ in the Department of Housing and Urban 

17 Development Appropriations Act, 2012 (Public Law 112– 

18 55), is amended— 

19 (1) by striking the second proviso; and 

20 (2) by striking the fourth proviso. 

21 SEC. 211. CREATING INCENTIVES FOR SMALL DOLLAR 

22 LOAN ORIGINATORS. 

23 (a) SMALL DOLLAR MORTGAGE DEFINED.—In this 

24 section, the term ‘‘small dollar mortgage’’ means a mort25 gage loan that— 


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1 (1) has an original principal obligation of not 

2 more than $70,000; 

3 (2) is secured by real property designed for the 

4 occupancy of 1 to 4 families; and 

5 (3) is— 

6 (A) insured by the Federal Housing Ad7 ministration under title II of the National 

8 Housing Act (12 U.S.C. 1707 et seq.); 

9 (B) made, guaranteed, or insured by the 

10 Department of Veterans Affairs; 

11 (C) made, guaranteed, or insured by the 

12 Department of Agriculture; or 

13 (D) eligible to be purchased or securitized 

14 by the Federal Home Loan Mortgage Corpora15 tion or the Federal National Mortgage Associa16 tion. 

17 (b) REQUIREMENT TO UPDATE REGULATIONS.—Not 

18 later than 270 days after the date of enactment of this 

19 Act, the Director of the Bureau of Consumer Financial 

20 Protection shall issue regulations to update part 1026 of 

21 title 12, Code of Federal Regulations (commonly referred 

22 to as ‘‘Regulation Z’’) to allow for salaried originators of 

23 residential mortgage loans that only originate small dollar 

24 mortgages. 


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1 SEC. 212. SMALL DOLLAR MORTGAGE POINTS AND FEES. 

2 (a) DEFINITION.—In this section, the term ‘‘small 

3 dollar mortgage’’ means a mortgage with an original prin4 cipal obligation of less than $70,000. 

5 (b) AMENDMENTS REQUIRED.—Not later than 180 

6 days after the date of enactment of this Act, the Director 

7 of the Bureau of Consumer Financial Protection, in con8 sultation with the Secretary of Housing and Urban Devel9 opment and the Director of the Federal Housing Finance 

10 Agency, shall amend the limitations with respect to points 

11 and fees under section 1026.32 of title 12, Code of Fed12 eral Regulations, or any successor regulation, to encourage 

13 additional lending for small dollar mortgages. 

14 SEC. 213. REMOVING OUTDATED REGULATION FOR MANU15 FACTURED HOUSING. 

16 (a) IN GENERAL.—Section 603(6) of the National 

17 Manufactured Housing Construction and Safety Stand18 ards Act of 1974 (42 U.S.C. 5402(6)) is amended by 

19 striking ‘‘built on a permanent chassis and’’. 

20 (b) IMPLEMENTATION.—Not later than 90 days after 

21 the date of the enactment of this Act, the consensus com22 mittee established under section 604(a)(3) of the National 

23 Manufactured Housing Construction and Safety Stand24 ards Act of 1974 (42 U.S.C. 5403(a)(3)) shall meet to 

25 develop and recommend to the Secretary of Housing and 

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1 factured home construction and safety standards, and re2 lated regulations, as are necessary to implement the 

3 amendment made by subsection (a) of this section. Such 

4 revised standards shall be considered by the Secretary for 

5 adoption pursuant to the process set forth in section 604 

6 of such Act. 

7 SEC. 214. RELIEVING BURDENS ON AFFORDABILITY. 

8 (a) IN GENERAL.—Section 164(b)(6) of the Internal 

9 Revenue Code of 1986 is amended by adding at the end 

10 the following: ‘‘In the case of a joint return for a taxable 

11 year beginning after December 31, 2022, and before Jan12 uary 1, 2024, if the taxpayer’s adjusted gross income for 

13 such taxable year is less than $500,000, subparagraph (B) 

14 shall be applied by substituting ‘$20,000’ for ‘$10,000’.’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to taxable years beginning after 

17 December 31, 2022. 

18 SEC. 215. PROTECTING HOME AFFORDABILITY FROM EN19 ERGY MANDATES. 

20 Congress disapproves the rule submitted by the De21 partment of Housing and Urban Development and the De22 partment of Agriculture relating to ‘‘Final Determination: 

23 Adoption of Energy Efficiency Standards for New Con24 struction of HUD- and USDA-Financed Housing’’ (89 


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1 Fed. Reg. 33112 (April 26, 2024)), and such rule shall 

2 have no force or effect. 

3 TITLE III—SERVING THE MOST 

4 VULNERABLE; HEALTH AND 

5 SAFETY 

6 SEC. 301. GAO STUDY TO DETERMINE PROXIMITY OF HOUS7 ING TO SUPERFUND SITES. 

8 (a) STUDY.—The Comptroller General of the United 

9 States shall carry out a study to identify how many resi10 dential dwelling units, and how many dwelling units in 

11 public housing (as such term is defined in section 3(b) 

12 of the United States Housing Act of 1937 (42 U.S.C. 

13 1437a(B))), are located within one mile of a site that is 

14 included on the National Priorities List pursuant to sec15 tion 105 of the Comprehensive Environmental Response, 

16 Compensation, and Liability Act of 1980 (42 U.S.C. 

17 9605). 

18 (b) REPORT.—Not later than the expiration of the 

19 6-month period beginning on the date of the enactment 

20 of this Act, the Comptroller General shall submit a report 

21 to the Congress identifying, for each site referred to in 

22 subsection (a), how many residential dwelling units, and 

23 how many dwelling units in public housing, are located 

24 within one mile of such site. 


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1 SEC. 302. ENSURING PUBLIC HOUSING AGENCIES INSPECT 

2 EACH DWELLING UNIT EACH YEAR. 

3 The Secretary of Housing and Urban Development 

4 and the Comptroller General of the United States shall, 

5 not later than 1 year after the date of the enactment of 

6 this section, conduct a study and submit a report to the 

7 Congress that identifies: 

8 (1) how many inspections required to be con9 ducted by the Secretary of Housing and Urban De10 velopment in the 1-year period are incomplete; and 

11 (2) how many inspectors are needed to ensure 

12 that all inspections required to be conducted by the 

13 Secretary of Housing and Urban Development can 

14 be completed each year. 

15 SEC. 303. INCENTIVIZING LOCAL SOLUTIONS TO HOME16 LESSNESS. 

17 (a) CONTINUUM OF CARE PROGRAM.—Section 428 of 

18 the McKinney-Vento Homeless Assistance Act (42 U.S.C. 

19 1186b) is amended by adding at the end the following: 

20 ‘‘(f) INCENTIVES FOR REDUCING HOMELESNESS.— 

21 ‘‘(1) IN GENERAL.—From the amounts made 

22 available to carry out this subtitle for a fiscal year, 

23 the Secretary may use not more than 10 percent of 

24 the amounts made available to carry out this subtitle 

25 for incentives described in paragraph (2). 


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1 ‘‘(2) INCENTIVES.—The Secretary may provide 

2 bonuses or other incentives to a geographic area 

3 under this subtitle if, during a fiscal year, the Sec4 retary determines that an entity receiving funds 

5 under this subtitle has demonstrably and measurably 

6 improved housing outcomes for homeless individuals 

7 in the geographic area.’’. 

8 (b) EMERGENCY SOLUTIONS GRANTS PROGRAM.— 

9 Section 413 of the McKinney-Vento Homeless Assistance 

10 Act (42 U.S.C. 11372a) is amended by adding at the end 

11 the following: 

12 ‘‘(c) INCENTIVES FOR REDUCING HOMELESNESS.— 

13 ‘‘(1) IN GENERAL.—From the amounts made 

14 available to carry out this subtitle for a fiscal year, 

15 the Secretary may use not more than 10 percent of 

16 the amounts made available to carry out this subtitle 

17 for incentives described in paragraph (2). 

18 ‘‘(2) INCENTIVES.—The Secretary may provide 

19 bonuses or other incentives to a geographic area 

20 under this subtitle if, during a fiscal year, the Sec21 retary determines that an entity receiving funds 

22 under this subtitle has demonstrably and measurably 

23 improved housing outcomes for homeless individuals 

24 in the geographic area.’’. 


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1 SEC. 304. IMPROVING MOLD AND HEALTH STANDARDS. 

2 (a) DEFINITIONS.—In this section: 

3 (1) INDOOR RESIDENTIAL MOLD.—The term 

4 ‘‘indoor residential mold’’ means any form of multi5 cellular fungi in indoor environments, including 

6 cladosporium, penicillium, alternaria, aspergillus, fu7 sarium, trichoderma, memnoniella, mucor, 

8 stachybotrys chartarum, streptomyces, and 

9 epicoccumoften found in water-damaged indoor envi10 ronments and building materials. 

11 (2) RESIDENTIAL MOLD INSPECTION.—The 

12 term ‘‘residential mold inspection’’ means an inspec13 tion, by a certified or licensed mold inspector or 

14 other indoor environmental professional, including 

15 through the Real Estate Assessment Center, of real 

16 property that is designed to discover— 

17 (A) indoor mold growth in residential prop18 erties; 

19 (B) conditions that facilitate indoor resi20 dential mold growth; or 

21 (C) indicia of conditions that are likely to 

22 facilitate indoor residential mold growth. 

23 (3) TOXIGENIC MOLD.—The term ‘‘toxigenic 

24 mold’’ means any indoor mold growth that may be 

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1 monary, respiratory, neurological, gastrointestinal, 

2 or dermatological illnesses, or other major adverse 

3 health impacts, as jointly determined by the Director 

4 of the National Institutes of Health, the Secretary 

5 of Housing and Urban Development, the Adminis6 trator of the Environmental Protection Agency, and 

7 the Director of the Centers for Disease Control and 

8 Prevention. 

9 (b) INTERAGENCY RESEARCH ON HEALTH IMPACTS

10 OF INDOOR RESIDENTIAL MOLD.— 

11 (1) RESEARCH.— 

12 (A) IN GENERAL.—As soon as practicable 

13 after the date of enactment of this Act, the Di14 rector of the National Institute of Environ15 mental Health Sciences at the National Insti16 tutes of Health, in conjunction with the Sec17 retary of Housing and Urban Development, the 

18 Director of the Centers for Disease Control and 

19 Prevention, the Administrator of the Environ20 mental Protection Agency, the Secretary of En21 ergy, the Secretary of Health and Human Serv22 ices, the President of the National Academy of 

23 Sciences, and the Chair of the board of direc24 tors of the National Institute of Building 

25 Sciences shall jointly conduct a comprehensive 


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1 study of the health effects of indoor residential 

2 mold growth, using the most up-to-date sci3 entific peer-reviewed medical literature. 

4 (B) CONTENTS.—The study conducted 

5 under subparagraph (A) shall ascertain, among 

6 other things— 

7 (i) detailed information about harmful 

8 or toxigenic mold, as well as any toxin or 

9 toxic compound such mold can produce; 

10 (ii) the most accurate research-based 

11 methods of detecting harmful or toxigenic 

12 mold; 

13 (iii) potential dangers of prolonged or 

14 chronic exposure to indoor residential mold 

15 growth; 

16 (iv) the hazards involved with inad17 equate residential mold inspections and im18 proper indoor residential mold remediation; 

19 (v) the estimated current public 

20 health burden of new or exacerbated phys21 ical illness resulting from exposure to in22 door residential mold, including its dis23 proportionate impact on vulnerable com24 munities, including children and seniors; 


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1 (vi) improved understanding of the 

2 different health symptomology that can re3 sult from exposure to mold in indoor resi4 dential environments; 

5 (vii) ongoing surveillance of the preva6 lence of idiopathic pulmonary hemorrhage 

7 (AIPH) in infants; and 

8 (viii) longitudinal studies on the ef9 fects of indoor old exposure in early child10 hood on the development of asthma and 

11 other respiratory illnesses. 

12 (C) AVAILABILITY.—Not later than the ex13 piration of the 3-year period beginning on the 

14 date of the enactment of this Act, the results of 

15 the study conducted under subparagraph (A) 

16 shall be submitted to Congress and the Presi17 dent and made available to the general public. 

18 (c) MAPPING.— 

19 (1) IN GENERAL.—Not later than one year 

20 after the date of the enactment of this Act, the Sec21 retary of Housing and Urban Development shall, 

22 using the previous two years of inspection data, es23 tablish a geographic information system mapping 

24 tool that identifies areas which are impacted by a 

25 known presence of indoor residential mold. 


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1 (2) REQUIRED INCLUSIONS.—The Secretary 

2 shall include, as part of the mapping tool— 

3 (A) inspection documentation; 

4 (B) management and occupancy reviews; 

5 (C) transfers of budget authority for con6 tracts under section 8 of the United States 

7 Housing Act of 1937 (42 U.S.C. 1437f); and 

8 (D) any additional information, as required 

9 by the Secretary. 

10 (3) UPDATES.—The Secretary shall update the 

11 mapping tool with the latest inspection data not less 

12 often than once per year. 

13 (d) PUBLIC INFORMATION AND EDUCATION CAM14 PAIGN.— 

15 (1) REQUIREMENT.—The Administrator of the 

16 Environmental Protection Agency, the Secretary of 

17 Housing and Urban Development, and the heads of 

18 any other relevant Federal agencies, as determined 

19 by such Administrator and Secretary, shall jointly 

20 develop and carry out a public information and edu21 cation campaign regarding indoor air quality and re22 lated issues that provides information required 

23 under this section on a recurring and annual basis 

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1 mence within 1 year after the date of the enactment 

2 of this Act. 

3 (2) TOPICS.—The information and education 

4 campaign shall include information on the dangers 

5 and prevention of indoor residential moisture and 

6 mold, volatile organic compounds, dust, smoking, 

7 pollution, indoor origins of smoke, including cooking, 

8 and any other health risks, as determined by such 

9 Administrator and Secretary. 

10 (3) INDOOR RESIDENTIAL MOLD INFORMA11 TION.—The information and education campaign 

12 shall include, at minimum, the following information 

13 regarding indoor residential mold: 

14 (A) The conditions that facilitate indoor 

15 residential moisture and mold growth. 

16 (B) Guidelines for inspecting indoor resi17 dential mold growth. 

18 (C) Guidelines for remediating indoor resi19 dential mold growth. 

20 (D) The dangers and health risks of expo21 sure to indoor residential mold growth. 

22 (E) The importance of ventilation and 

23 methods to prevent moisture accumulation in 

24 indoor residential environments. 


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1 (F) Any other information as determined 

2 appropriate by the heads of the agencies re3 ferred to in paragraph (1). 

4 (4) MODES OF COMMUNICATION.— 

5 (A) IN GENERAL.—The public information 

6 and education campaign shall provide education 

7 and information through modes of communica8 tion that are commonly utilized and able to be 

9 easily consumed by relevant individuals or orga10 nizations, which shall include communication 

11 through advertisements on public transit in all 

12 50 States and in territories and possessions of 

13 the United States, and distribution of the pam14 phlet developed pursuant to paragraph (9) as 

15 required under such paragraph. 

16 (B) AVAILABILITY.—All education and in17 formation that is part of the information and 

18 education campaign shall be made publicly 

19 available on the websites of the Environmental 

20 Protection Agency, the Department of Housing 

21 and Urban Development, and any other applica22 ble Federal agencies. 

23 (5) TARGETED GROUPS.—The public informa24 tion and education campaign shall be designed to 

25 reach tenants, tenant organizations working directly 


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1 with tenants in project-based rental assistance and 

2 other types of federally-assisted housing, resident 

3 groups, landlords, health professionals, the general 

4 public, homeowners, prospective homeowners, the 

5 real estate industry, the home construction and ren6 ovation industries, the health, property and casualty, 

7 and life insurance industries, technical and voca8 tional schools and colleges, and other academic insti9 tutions. 

10 (6) INFORMATION SPECIFIC TO HEALTH PRO11 FESSIONS.—The public information and education 

12 campaign shall include information about warning 

13 signs of mold and other indoor air exposure pollut14 ants and shall include education for health profes15 sions on mold-related illness, including for health 

16 professions who work with vulnerable populations 

17 and children in school or daycare settings. 

18 (7) COORDINATION.—In developing and car19 rying out the public information and education cam20 paign, the heads of the agencies referred to in para21 graph (1) may coordinate with the Ad Council. 

22 (8) LANGUAGE.—All information provided 

23 under the public information and education cam24 paign— 


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1 (A) shall be provided in at least two lan2 guages, as determined by the Secretary, based 

3 on the most common languages spoken in the 

4 neighborhood, tribe, municipality, State, or re5 gion, and may be provided in additional lan6 guages based on the most common languages 

7 spoken in the neighborhood, tribe, municipality, 

8 State, or region, as determined by the Sec9 retary; and 

10 (B) shall be provided in language that is at 

11 a sixth grade reading level and is easy to under12 stand. 

13 (9) PAMPHLET.— 

14 (A) REQUIREMENT.—The Secretary of 

15 Housing and Urban Development, in consulta16 tion with the Director of the National Institutes 

17 of Health, the Administrator of the Environ18 mental Protection Agency, and the heads of any 

19 other agencies the Secretary considers appro20 priate, shall develop, publish, and revise, not 

21 less frequently than every 5 years, a pamphlet 

22 regarding indoor residential mold hazards. 

23 (B) CONTENT.—The pamphlet required 

24 under this subsection shall— 


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1 (i) contain information regarding the 

2 health risks associated with exposure to in3 door residential mold growth; 

4 (ii) provide information on the haz5 ards of indoor residential mold growth in 

6 federally-assisted and federally-owned 

7 housing; 

8 (iii) describe the risks of indoor resi9 dential mold exposure for persons residing 

10 in a dwelling with toxigenic mold; 

11 (iv) provide information on approved 

12 methods for evaluating and reducing in13 door residential mold growth and their ef14 fectiveness in identifying, reducing, elimi15 nating, or preventing indoor residential 

16 mold growth; 

17 (v) provide advice on how to obtain a 

18 list of persons certified to inspect or reme19 diate indoor residential mold growth in the 

20 area in which the pamphlet is to be used; 

21 (vi) include a statement that a risk 

22 assessment or inspection for indoor resi23 dential mold growth is recommended prior 

24 to the purchase, lease, or renovation of tar25 get housing; 


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1 (vii) include a statement that certain 

2 State and local laws impose additional re3 quirements related to indoor residential 

4 mold growth in housing and provide a list5 ing of Federal, State, and local agencies in 

6 each State, including address, telephone 

7 number, and electronic mail address, if 

8 available, that can provide information 

9 about applicable laws and available govern10 mental and private assistance and financ11 ing; 

12 (viii) provide information considered 

13 by the Administrator of the Environmental 

14 Protection Agency to be appropriate or 

15 necessary to promote awareness of the haz16 ards posed by indoor residential mold; 

17 (ix) include information on indoor air 

18 quality safety generally, including best 

19 practices when cooking, taking a shower or 

20 bath, and smoking cessation; 

21 (x) be publicly available on the 

22 websites of the Department of Housing 

23 and Urban Development, the Environ24 mental Protection Agency, and other appli25 cable Federal agencies; and 


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1 (xi) include any other information 

2 considered by the Administrator of the En3 vironmental Protection Agency to be ap4 propriate or necessary. 

5 (10) AUTHORIZATION OF APPROPRIATIONS.— 

6 There is authorized to be appropriated such sums as 

7 may be necessary to carry out this subsection. 

8 (e) GAO STUDY ON HEALTH AND SAFETY CON9 CERNS IN FEDERALLY-ASSISTED HOUSING.—Not later 

10 than the expiration of the 3-year period beginning on the 

11 date of the enactment of this Act, the Comptroller General 

12 of the United States shall submit a report to the Congress 

13 analyzing and assessing the communication, as applicable, 

14 between public housing agencies, landlords, and tenants 

15 over resolving problems with the health, safety, or other 

16 issues of dwelling units that are federally subsidized and 

17 inspected through subpart G of part 5 of title 24, Code 

18 of Federal Regulations, landlord responsiveness regarding 

19 such issues, opportunities for improvement in such com20 munications, and how tenants understand their rights and 

21 how they are responded to when issues arise, including 

22 protocols for responding to tenant complaints and tenant 

23 understanding of such processes. The report shall include 

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1 tions and the physical quality of the housing stock for 

2 which such assistance is provided. 

3 SEC. 305. IMPROVING PROTECTION FROM LEAD HAZARDS. 

4 (a) DEFINITIONS.—In this section— 

5 (1) the term ‘‘covered housing’’ means a dwell6 ing unit receiving project-based rental assistance or 

7 tenant-based rental assistance under section 8 of the 

8 United States Housing Act of 1937 (42 U.S.C. 

9 1437f); and 

10 (2) the term ‘‘Department’’ means the Depart11 ment of Housing and Urban Development. 

12 (b) ANNUAL RISK ASSESSMENT AND REPORT.—Not 

13 later than 1 year after the date of enactment of this Act, 

14 and every year thereafter, the Deputy Assistant Secretary 

15 for the Office of Multifamily Housing Programs of the De16 partment, in collaboration with the Office of Lead Hazard 

17 Control and Healthy Homes of the Department, shall— 

18 (1) conduct a risk assessment of covered hous19 ing to identify properties with the greatest risk of 

20 exposing children under the age of 6 years old to 

21 lead hazards, including lead-based paint and lead 

22 service lines; 

23 (2) develop an action plan relating to remedi24 ation, control, and safeguards to address lead haz25 ards, including lead-based paint and lead-service 


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1 lines, in covered housing identified in the risk as2 sessment conducted under paragraph (1), with pri3 ority given to those properties with children under 

4 the age of 6 years old; and 

5 (3) submit to Congress a report on properties 

6 with covered housing that have lead-based paint or 

7 lead service lines, including the number of children 

8 under the age of 6 years old living at these prop9 erties. 

10 (c) UNIFORM PHYSICAL CONDITION STANDARD IN11 SPECTIONS.—In conducting uniform physical condition in12 spections in accordance with part 5 of title 24, Code of 

13 Federal Regulations, or any successor regulation, the Sec14 retary shall include lead-based paint and lead service lines 

15 in the graded scoring as an exigent health and safety defi16 ciency to ensure that— 

17 (1) lead-based paint and lead service lines are 

18 tracked at each applicable property; and 

19 (2) the owners of those properties are held ac20 countable for remediating deficiencies. 

21 SEC. 306. IMPROVING HOUSING FOR THE ELDERLY AND 

22 DISABLED. 

23 The Comptroller General of the United States shall, 

24 not later than 1 year after the date of the enactment of 

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1 move barriers and improve housing for persons who are 

2 elderly or disabled, including any potential impacts of pro3 viding capital advances for— 

4 (1) the program for supportive housing for the 

5 elderly under section 202 of the Housing Act of 

6 1959; and 

7 (2) the program for supportive housing for per8 sons with disabilities under section 811 of the Cran9 ston-Gonzalez National Affordable Housing Act. 

10 TITLE IV—GOOD GOVERNANCE 

11 SEC. 401. REQUIRING ANNUAL TESTIMONY AND OVER12 SIGHT FROM HOUSING REGULATORS. 

13 (a) TESTIMONY BY SECRETARY.— Section 7 of the 

14 Department of Housing and Urban Development Act (42 

15 U.S.C. 3535) is amended by adding at the end the fol16 lowing new subsection: 

17 ‘‘(u) ANNUAL TESTIMONY.—The Secretary shall ap18 pear before the Committee on Financial Services of the 

19 House of Representatives and the Committee on Banking, 

20 Housing, and Urban Affairs of the Senate at an annual 

21 hearing and present testimony regarding the operations 

22 of the Department during the preceding year, including 

23 regarding the following topics: 

24 ‘‘(1) The physical condition of all public hous25 ing and other housing assisted by the Department. 


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1 ‘‘(2) The financial health of the mortgage in2 surance funds of the FHA. 

3 ‘‘(3) Oversight by the Department of grantees 

4 and sub-grantees engaging in waste, fraud, and 

5 abuse. 

6 ‘‘(4) Ongoing activities of the Department, as 

7 appropriate.’’. 

8 (b) TESTIMONY BY INSPECTOR GENERAL.—Not later 

9 than October 1 of each year, the Inspector General of the 

10 Department of Housing and Urban Development shall ap11 pear before the Committee on Financial Services of the 

12 House of Representatives and the Committee on Banking, 

13 Housing, and Urban Affairs of the Senate and present tes14 timony on the Office of Inspector General’s— 

15 (1) efforts to detect and prevent fraud, waste, 

16 and abuse; 

17 (2) ability to conduct and supervise audits, in18 vestigations, and reviews; 

19 (3) actions to identify opportunities for the pro20 grams of the Department of Housing and Urban 

21 Development to progress and succeed; and 

22 (4) ongoing activities regarding any such addi23 tional work, as appropriate. 


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1 SEC. 402. REQUIRING ANNUAL TESTIMONY AND OVER2 SIGHT FOR GOVERNMENT GUARANTEED OR 

3 INSURED MORTGAGE PROGRAMS. 

4 On an annual basis, the following individuals shall 

5 testify before the Committee on Banking, Housing, and 

6 Urban Affairs of the Senate and the Committee on Finan7 cial Services of the House of Representatives on mortgage 

8 loans guaranteed or insured by the Federal Government: 

9 (1) The President of the Government National 

10 Mortgage Association. 

11 (2) The Federal Housing Commissioner. 

12 (3) The Administrator of the Rural Housing 

13 Service. 

14 SEC. 403. TESTIMONY AND REPORT FROM UNITED STATES 

15 INTERAGENCY COUNCIL ON HOMELESSNESS. 

16 Section 203(a) of the McKinney-Vento Homeless As17 sistance Act (42 U.S.C. 11313(a)) is amended— 

18 (1) in paragraph (1)— 

19 (A) by striking ‘‘Homeless Emergency As20 sistance and Rapid Transition to Housing Act 

21 of 2009’’ and inserting ‘‘Revitalizing America’s 

22 Housing Act’’; and 

23 (B) by striking ‘‘update such plan annu24 ally’’ and inserting the following: ‘‘submit to the 

25 President and Congress a report every year 

26 thereafter that includes— 


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1 ‘‘(A) the status of completion of the plan; 

2 ‘‘(B) any modifications that were made to 

3 the plan and the reasons for those modifica4 tions; and 

5 ‘‘(C) an estimate of when homelessness will 

6 be ended;’’; 

7 (2) by redesignating paragraphs (10) through 

8 (13) as paragraphs (11) through (14), respectively; 

9 (3) by redesignating the second paragraph (9) 

10 (relating to collecting and disseminating informa11 tion) as paragraph (10); 

12 (4) in paragraph (13), as so redesignated, by 

13 striking ‘‘and’’ at the end; 

14 (5) in paragraph (14), as so redesignated, by 

15 striking the period at the end and inserting ‘‘; and’’; 

16 and 

17 (6) by adding at the end the following: 

18 ‘‘(15) testify annually before Congress.’’. 

19 SEC. 404. REPORT DETAILING NYCHA COMPLIANCE WITH 

20 AND HUD OVERSIGHT OF 2019 AGREEMENT. 

21 (a) CONGRESSIONAL FINDINGS.—The Congress finds 

22 that— 

23 (1) the New York City Housing Authority (in 

24 this section referred to as the ‘‘Authority’’) is the 

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1 viding housing for over 520,000 residents in over 

2 177,000 apartments in the City of New York (in 

3 this section referred to as the ‘‘City’’); 

4 (2) the Authority is a public housing agency 

5 that receives Federal financial assistance from the 

6 Department of Housing and Urban Development (in 

7 this section referred to as the ‘‘Department’’) to ad8 minister its public housing program; 

9 (3) the Authority is required to, among other 

10 things, provide decent, safe, and sanitary housing 

11 for the public housing residents of the City and com12 ply with Federal law protecting children from the 

13 hazards of lead poisoning; 

14 (4) on June 11, 2018, the United States filed 

15 a complaint in the United States District Court for 

16 the Southern District of New York (in this section 

17 referred to as the ‘‘Complaint’’); which set forth the 

18 findings of the United States investigation, alleging, 

19 among other things, that the Authority had— 

20 (A) routinely failed to comply with lead21 based paint safety regulations; 

22 (B) failed to provide decent, safe, and san23 itary housing, including with respect to the pro24 vision of heat and elevators and the control and 

25 treatment of mold and pests; and 


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1 (C) repeatedly misled the Department 

2 through false statements and deceptive prac3 tices; 

4 (5) in a Consent Decree executed June 11, 

5 2018, the Authority made admissions regarding, 

6 among other things, deficiencies in physical condi7 tions with respect to lead, mold, heating, elevators 

8 and pests and made untrue statements to the De9 partment regarding the conditions of the Authority’s 

10 properties and practices with regard to Public Hous11 ing Assessment System inspections; 

12 (6) based on the Authority’s misconduct as de13 tailed in the Complaint, on January 31, 2019, the 

14 Secretary of Housing and Urban Development (in 

15 this section referred to as the ‘‘Secretary’’) declared 

16 that the Authority is in substantial default within 

17 the meaning of section 6(j)(3)(A) of the United 

18 States Housing Act of 1937 (42 U.S.C. 

19 1437d(j)(3)(A)); 

20 (7) the Department did not take possession of 

21 the Authority or appoint a receiver, but instead en22 tered into a voluntary agreement between the Au23 thority, the Department, and the City on January 

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1 edy noted deficiencies subject to the oversight of a 

2 Monitor appointed by the City; 

3 (8) as of the date of the enactment of this Act, 

4 the Authority has still fully not complied with the 

5 agreement, including the remedying of deficiencies 

6 or compliance with its obligations under Federal law; 

7 (9) the Department and the United States At8 torney’s Office for the Southern District of New 

9 York have sought to extend the term of a Monitor 

10 over the Authority for an additional five years begin11 ning in 2024; 

12 (10) the residents of housing provided by the 

13 Authority should not be required to wait five addi14 tional years for the Authority to provide decent, 

15 safe, and sanitary housing conditions, as is the 

16 Authority’s most basic and necessary function under 

17 the law; and 

18 (11) the Congress believes that it must provide 

19 additional oversight over the Authority, the Depart20 ment, the City, and the Monitor in order to compel 

21 the Authority to fix the appalling conditions and 

22 other issues that lead to a declaration of substantial 

23 default under section 6(j)(3)(A) of the United States 

24 Housing Act of 1937. 

25 (b) INVESTIGATION AND REPORT TO CONGRESS.— 


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1 (1) INVESTIGATION.—The Inspector General of 

2 the Department of Housing and Urban Development 

3 shall conduct an investigation of the Authority, 

4 which shall include at a minimum— 

5 (A) determining the status of the New 

6 York City Housing Authority’s compliance with 

7 the agreement entered into between the Author8 ity, the Department, and the City on January 

9 31, 2019, including specific areas of deficiency 

10 and progress towards compliance; 

11 (B) conducting a review of actions taken 

12 by the Monitor over the Authority pursuant to 

13 such Agreement, including any gaps in over14 sight by the Monitor; 

15 (C) conducting a survey of the physical 

16 conditions of housing provided by the Authority 

17 for the City’s residents; 

18 (D) conducting an examination of any 

19 waste, fraud, abuse and violations of Federal 

20 law committed by employees or contractors of 

21 the Authority; and 

22 (E) identifying other priority issues and 

23 areas, as deemed necessary and appropriate by 

24 the Inspector General. 


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1 (2) REPORT.—Not later than the expiration of 

2 the 180-day period beginning on the date of the en3 actment of this Act, the Inspector General shall pro4 vide to the Committee on Financial Services of the 

5 House of Representatives and the Committee on 

6 Banking, Housing, and Urban Affairs of the Senate 

7 a report setting forth the findings of its investiga8 tion, a summary of actions the Department may 

9 take to compel the Authority to remedy deficiencies, 

10 and any other recommendations of the Inspector 

11 General. 

12 SEC. 405. FHA REPORTING REQUIREMENTS ON SAFETY 

13 AND SOUNDNESS. 

14 (a) MONTHLY REPORTING ON MUTUAL MORTGAGE

15 INSURANCE FUND CAPITAL RATIO.—Section 202(a) of 

16 the National Housing Act (12 U.S.C. 1708(a)) is amended 

17 by adding at the end the following: 

18 ‘‘(8) OTHER REQUIRED REPORTING.—The Sec19 retary shall— 

20 ‘‘(A) submit to Congress monthly reports 

21 on the capital ratio required under section 

22 205(f)(2); and 

23 ‘‘(B) notify Congress as soon as prac24 ticable after the Fund falls below the capital 

25 ratio required under section 205(f)(2).’’. 


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1 (b) FIRST-TIME HOMEBUYERS.— 

2 (1) DEFINITIONS.—In this section— 

3 (A) the terms ‘‘consumer report’’ has the 

4 meaning given the term in section 603 of the 

5 Fair Credit Reporting Act (15 U.S.C. 1681a); 

6 and 

7 (B) the term ‘‘Federally backed mortgage 

8 loan’’ has the meaning given the term in section 

9 4022 of the CARES Act (15 U.S.C. 9056). 

10 (2) DEFINITION OF FIRST-TIME HOMEBUYER.— 

11 For purposes of qualifying for a Federally backed 

12 mortgage loan for which a consumer report is fur13 nished to a creditor by a consumer reporting agency 

14 described in section 603(p) of the Fair Credit Re15 porting Act (15 U.S.C. 1681a(p)), a first-time 

16 homebuyer shall be defined as a borrower whose con17 sumer report does not indicate that the borrower has 

18 or had a loan with a consumer purpose that is se19 cured by a 1- to 4-unit residential real property. 

20 (c) GAO STUDY ON SUSTAINABLE HOMEOWNER21 SHIP.—Not later than 180 days after the date of enact22 ment of this Act, the Comptroller General of the United 

23 States shall conduct a study and submit to Congress a 

24 report on— 


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1 (1) the value for the Federal Housing Adminis2 tration of defining what is sustainable homeowner3 ship in way that considers borrower default, refi4 nancing to a non-insured mortgage product, paying 

5 off a mortgage loan and transitioning back to rent6 ing, and other factors that demonstrate whether in7 surance provided under title II of the National 

8 Housing Act (12 U.S.C. 1707 et seq.) has success9 fully served a borrower, including for first-time 

10 homebuyers as defined in subsection (b)(2); and 

11 (2) the feasibility of the Federal Housing Ad12 ministration developing a scorecard using the 

13 metrics described in paragraph (1) to measure bor14 rower performance and reporting the scorecard data 

15 to Congress. 

16 SEC. 406. COMBATTING SQUATTING. 

17 (a) CONGRESSIONAL FINDINGS.—The Congress finds 

18 that— 

19 (1) unlawfully entering a property without the 

20 permission of the property owner and residing in 

21 that property for consecutive days without the per22 mission of the property owner and without the pay23 ment of rent or a rental contract agreed to by the 

24 property owner can be defined as ‘‘squatting’’ and 


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1 should not confer any special status as a tenant or 

2 lawful occupant of the property; 

3 (2) local law enforcement should take actions to 

4 expeditiously remove from a property any persons or 

5 persons engaging in squatting and should prosecute 

6 such actions as prescribed by local law; 

7 (3) Federal Government benefits, including 

8 loans, loan guarantees, subsidies, and tax credits, 

9 should not be used to reinforce, condone, or other10 wise incentivize squatting; and 

11 (4) real estate collateral securing a government 

12 or government-sponsored enterprise loan, or subject 

13 to a loan guarantee, mortgage insurance or other 

14 Federal mortgage support program must be pro15 tected from persons engaging in squatting as it cre16 ates undue risks for the value of such property. 

17 (b) PROHIBITION ON CDBG FUNDING.—Section 104 

18 of the Housing and Community Development Act of 1974 

19 (42 U.S.C. 5304) is amended by adding at the end the 

20 following: 

21 ‘‘(n) WITHHOLDING OF FUNDS FOR JURISDICTIONS

22 THAT PERMIT SQUATTING.— 

23 ‘‘(1) PROHIBITION.—The Secretary shall, by 

24 regulation— 


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1 ‘‘(A) prohibit the allocation and provision 

2 of funds under this title for any unit of general 

3 local government that permits squatting or con4 fers special status for rights of tenancy for a 

5 person or persons engaging in the practice of 

6 squatting; and 

7 ‘‘(B) provide for— 

8 ‘‘(i) units of general local government 

9 to take corrective actions to remedy the 

10 applicability of the prohibition under sub11 paragraph (A) to such unit of general local 

12 government; and 

13 ‘‘(ii) certification by the Secretary 

14 upon a determination that such actions 

15 taken by a unit of general local govern16 ment are sufficient for the unit of general 

17 local government to receive funds under 

18 this title. 

19 ‘‘(2) PUBLIC NOTICE.—The Secretary shall 

20 make publicly available for each fiscal year a list of 

21 all units of general local government that are prohib22 ited by paragraph (1) from receiving funds under 

23 this title and the justification for inclusion in the list 

24 of each such unit of general local government. 


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1 ‘‘(3) SQUATTING.—For purposes of this sub2 section, the term ‘squatting’ means the practice of 

3 entering a property without the permission of the 

4 property owner and residing in that property for 14 

5 or more consecutive days without the permission of 

6 the property owner and without the payment of rent 

7 or a rental contract agreed to by the property 

8 owner.’’. 

9 (c) PROHIBITION ON FEDERAL MORTGAGE SUP10 PORT.— 

11 (1) PROHIBITION.—No Federal support may be 

12 provided for any loan that is secured by a first or 

13 subordinate lien on residential real property (includ14 ing individual units of condominiums and coopera15 tives) and designed principally for the occupancy of 

16 from 1- to 4-families if the property securing such 

17 loan is located in a unit of general local government 

18 that is, at such time, prohibited from receiving funds 

19 under title I of the Housing and Community Devel20 opment Act of 1974 by section 104(n)(1)(A) of such 

21 Act. 

22 (2) REGULATIONS.—The heads of the covered 

23 agencies shall jointly develop, by regulations issued 

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1 ment of this Act, guidelines for such covered agen2 cies to carry out this subsection. 

3 (3) DEFINITIONS.—For purposes of this sub4 section, the following definitions shall apply: 

5 (A) COVERED AGENCY.—The term ‘‘cov6 ered agency’’ means— 

7 (i) the Department of Housing and 

8 Urban Development; 

9 (ii) the Federal Housing Finance 

10 Agency; 

11 (iii) the Department of Veterans Af12 fairs; and 

13 (iv) the Department of Agriculture. 

14 (B) FEDERAL SUPPORT.—The term ‘‘Fed15 eral support’’ means, with respect to a loan— 

16 (i) insurance of the loan by the Fed17 eral Housing Administration under title II 

18 of the National Housing Act (12 U.S.C. 

19 1707 et seq.); 

20 (ii) insurance of the loan under sec21 tion 255 of the National Housing Act (12 

22 U.S.C. 1715z–20); 

23 (iii) guarantee of the loan under sec24 tion 184 or 184A of the Housing and 


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1 Community Development Act of 1992 (12 

2 U.S.C. 1715z–13a, 1715z–13b); 

3 (iv) guarantee or insurance of the 

4 loan by the Department of Veterans Af5 fairs; 

6 (v) guarantee or insurance of the loan 

7 by the Department of Agriculture; 

8 (vi) making of the loan by the Depart9 ment of Agriculture; or 

10 (vii) purchase or securitization of the 

11 loan by the Federal Home Loan Mortgage 

12 Corporation or the Federal National Mort13 gage Association. 

14 (C) SQUATTING.—The term ‘‘squatting’’ 

15 means the practice of entering a property with16 out the permission of the property owner and 

17 residing in that property for 14 or more con18 secutive days without the permission of the 

19 property owner and without the payment of 

20 rent or a rental contract agreed to by the prop21 erty owner. 

22 SEC. 407. REALLOCATION OF VOUCHER FUNDING. 

23 Section 8(o) of the United States Housing Act of 

24 1937 is amended by adding at the end the following: 


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1 ‘‘(24) REALLOCATION OF AMOUNTS.—The Sec2 retary shall, at the end of each fiscal year— 

3 ‘‘(A) recapture from each public housing 

4 agency any amounts provided to such public 

5 housing agency for tenant-based assistance 

6 under paragraph (1)(A) that such public hous7 ing agency did not obligate during such fiscal 

8 year; and 

9 ‘‘(B) provide amounts recaptured under 

10 subparagrah (A) to public housing agencies that 

11 used all of the amounts provided to them for 

12 tenant-based assistance under paragraph 

13 (1)(A).’’. 

14 TITLE V—REGULATORY 

15 FLEXIBILITY 

16 SEC. 501. AUTHORIZATION OF MOVING TO WORK PRO17 GRAM. 

18 (a) PROGRAM REFORMS.—Section 204 of the Depart19 ments of Veterans Affairs and Housing and Urban Devel20 opment, and Independent Agencies Appropriations Act, 

21 1996 (42 U.S.C. 1437f note) is amended— 

22 (1) in the section heading, by striking ‘‘DEM23 ONSTRATION’’ and inserting ‘‘PROGRAM’’; 

24 (2) by striking subsection (a) and inserting the 

25 following: 


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1 ‘‘(a) PURPOSES.—The purposes of the program 

2 under this section are as follows: 

3 ‘‘(1) ECONOMIC INDEPENDENCE.—To develop 

4 measures to promote economic independence for 

5 families with children whose head of household is 

6 working, seeking work, or preparing for work, for 

7 able-bodied individuals, and for persons with disabil8 ities who are able to work on a limited basis, to ob9 tain employment and become economically inde10 pendent, by participating in job training, educational 

11 programs, or other supportive services and programs 

12 that assist in meeting such goal. 

13 ‘‘(2) FLEXIBILITY AND COST-EFFECTIVE14 NESS.—To give public housing agencies and the Sec15 retary of Housing and Urban Development the flexi16 bility to design and implement various approaches 

17 for providing and administering housing assistance 

18 that reduce cost and achieve greater cost effective19 ness in Federal expenditures. 

20 ‘‘(3) HOUSING CHOICE.—To increase housing 

21 choices for low-income families.’’; 

22 (3) in subsection (b)— 

23 (A) by striking ‘‘(b) PROGRAM AUTHOR24 ITY.—The Secretary’’ and inserting the fol25 lowing: 


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1 ‘‘(b) PROGRAM AUTHORITY.— 

2 ‘‘(1) IN GENERAL.—The Secretary’’; 

3 (B) in the first sentence, by striking ‘‘con4 duct a demonstration program’’ and all that fol5 lows through ‘‘Indian housing program and’’ 

6 and inserting ‘‘carry out a program under this 

7 section under which public housing agencies ad8 ministering the public housing program or’’; 

9 (C) by inserting after the first sentence the 

10 following: ‘‘There shall be no limitation on the 

11 number of public housing agencies that may 

12 participate in the program under this section.’’; 

13 (D) by striking ‘‘The Secretary shall’’ and 

14 all that follows through ‘‘demonstration.’’ and 

15 inserting the following: 

16 ‘‘(2) IDENTIFICATION OF REPLICABLE MOD17 ELS.—The Secretary shall provide training and tech18 nical assistance under the program and conduct de19 tailed evaluations of various agencies to identify 

20 replicable program models promoting the purposes 

21 of the program.’’; 

22 (E) by striking ‘‘Under the demonstration’’ 

23 and inserting the following: 

24 ‘‘(3) COMBINATION OF ASSISTANCE.—Under 

25 the program under this section’’; and 


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1 (F) by striking ‘‘operating assistance pro2 vided under section 9 of the United States 

3 Housing Act of 1937, modernization assistance 

4 provided under section 14’’ and inserting 

5 ‘‘amounts provided to the agency from the Op6 erating Fund under section 9(e) of the United 

7 States Housing Act of 1937, amounts provided 

8 to the agency from the Capital Fund under sec9 tion 9(d)’’; 

10 (4) in subsection (c)— 

11 (A) in the matter preceding paragraph (1), 

12 by striking ‘‘demonstration’’ and inserting ‘‘pro13 gram under this section’’; 

14 (B) in paragraph (1), by striking ‘‘9, and 

15 14’’ and inserting ‘‘9(d), and 9(e)’’; 

16 (C) in paragraph (3)— 

17 (i) in subparagraph (A), by striking 

18 ‘‘demonstration’’; 

19 (ii) in subparagraph (B)— 

20 (I) by striking ‘‘self-sufficiency’’ 

21 and inserting ‘‘economic independ22 ence’’; and 

23 (II) by striking ‘‘purpose of this 

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1 pose of the program under subsection 

2 (a)(1)’’; 

3 (iii) in subparagraph (D), by striking 

4 ‘‘demonstration’’ and inserting ‘‘program 

5 under this section;’’; 

6 (iv) in subparagraph (E), by striking 

7 ‘‘demonstration program’’ and inserting 

8 ‘‘program under this section’’; 

9 (v) by redesignating subparagraphs 

10 (A), (B), (C), (D), and (E) as subpara11 graphs (B), (C), (D), (G), and (H), respec12 tively; 

13 (vi) by inserting before subparagraph 

14 (B), as so redesignated, the following: 

15 ‘‘(A) actions to be taken under the pro16 posed program to achieve the purposes of the 

17 program under paragraphs (1), (2), and (3) of 

18 subsection (a);’’; and 

19 (vii) by inserting after subparagraph 

20 (D), as so redesignated, the following: 

21 ‘‘(E) hardship exceptions consistent with 

22 the purposes under subsection (a) under which 

23 tenants may be temporarily exempted from 

24 compliance with the program operated by the 

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1 cumstances preventing such compliance and a 

2 process that provides tenants with recourse to 

3 a speedy determination regarding such an ex4 ception and makes available the contents and 

5 results of such a determination available to the 

6 public and the board of directors or other gov7 erning body on request of the tenant concerned 

8 or the director or other head official of the 

9 agency; 

10 ‘‘(F) providing assisted families and par11 ticipants in the program operated by the agency 

12 with an informal administrative hearing or 

13 grievance process, prior to any eviction or ter14 mination of assistance, which process shall 

15 make the content and determination of the 

16 hearing available to the public and the board of 

17 directors or other governing body on request of 

18 the tenant concerned or the director or other 

19 head official of the agency;’’; and 

20 (D) in paragraph (4), by striking ‘‘dem21 onstration’’ and inserting ‘‘proposed program’’; 

22 (5) in subsection (d)— 

23 (A) by striking ‘‘(d) SELECTION.—In se24 lecting among applications, the Secretary shall 


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1 take into account the’’ and inserting the fol2 lowing: 

3 ‘‘(d) APPLICATIONS FOR PARTICIPATION.— 

4 ‘‘(1) SUBMISSION; STANDARDS FOR PARTICIPA5 TION.—The Secretary shall provide for public hous6 ing agencies to submit applications for participation 

7 in the program under this section and shall estab8 lish, and make public, standards and requirements 

9 for participation that further the purposes of this 

10 program set forth in subsection (a), which shall— 

11 ‘‘(A) provide that all public housing agen12 cies not designated as troubled pursuant to part 

13 902 or subpart B of part 985, Code of Federal 

14 Regulations, at any time during the most recent 

15 2 fiscal years are invited to submit applications 

16 for consideration; 

17 ‘‘(B) provide that participation of a public 

18 housing agency, upon approval, shall be for a 

19 period not shorter than 10 years; 

20 ‘‘(C) include a common set of budget 

21 metrics for use under the program that allow 

22 for comparison of the performance of different 

23 public housing agencies under the program; 

24 ‘‘(D) require that each public housing 

25 agency include in its application— 


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1 ‘‘(i) a list of innovative proposals to 

2 be carried out under the program that are 

3 designed to reduce the cost of, and in4 crease the cost-efficiency of, housing pro5 vided in connection with the program and 

6 metrics to assess the progress of the agen7 cy toward such goals; and 

8 ‘‘(ii) a list of innovative manners in 

9 which the public housing agency will use 

10 the authorities under the program to assist 

11 families, goals regarding such activities to 

12 accomplish on an annual basis, and metrics 

13 to assess the progress of the agency toward 

14 such goals; and 

15 ‘‘(E) include a plan for using, to the great16 est extent feasible, electronic data-matching for 

17 income verification services. 

18 ‘‘(2) DETERMINATION AND NOTIFICATION.— 

19 ‘‘(A) REVIEW AND DETERMINATION.— 

20 Upon receipt of an application for participation 

21 in the program under this section, the Secretary 

22 shall provide for review such application by a 

23 selection panel comprised of Federal officials 

24 and employees and established by the Secretary 

25 for such purpose. Based on such review, such 


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1 selection panel shall make a determination of 

2 whether to approve such agency for participa3 tion in the program under this section, based 

4 on the criteria under paragraph (4). 

5 ‘‘(B) NOTIFICATION.—Upon making a de6 termination pursuant to subparagraph (A), the 

7 selection panel shall notify the public housing 

8 agency, the Secretary, and the governments for 

9 any counties and municipalities in which the ju10 risdiction of the public housing agency is lo11 cated of such determination. In the case of dis12 approval of an application, such notice shall in13 clude a statement specifying the reasons for 

14 such disapproval. 

15 ‘‘(3) TRANSITION.— 

16 ‘‘(A) NUMERICAL LIMITATION.— 

17 ‘‘(i) IN GENERAL.—The Secretary 

18 shall review and process such applications 

19 as to enable the transition of not less than 

20 25 public housing agencies per year to the 

21 program under this section (subject to ap22 provable applications), until such time as 

23 there are not 25 public housing agencies 

24 whose applications merit approval. 


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1 ‘‘(ii) RESERVED SPOTS FOR SMALL

2 AND RURAL PHAS.—Of the applications of 

3 public housing agencies approved in each 

4 year pursuant to clause (i), not less than 

5 10 shall be applications of public housing 

6 agencies that administer, in the aggregate, 

7 fewer than 6,000 vouchers for rental as8 sistance under section 8 of the United 

9 States Housing Act of 1937 (42 U.S.C. 

10 1437f) and public housing dwelling units, 

11 except that if for any year the Secretary 

12 receives fewer than 10 applications by pub13 lic housing agencies described in this 

14 clause that merit approval, the require15 ment under this clause shall apply for such 

16 year only to the extent of the number of 

17 such approvable applications received. 

18 ‘‘(iii) TREATMENT OF NEW MTW

19 AGENCIES.—Any agency that is newly 

20 transitioned under this subparagraph to 

21 participation in the program as in effect 

22 pursuant to the amendments made by this 

23 Act shall count toward fulfillment of the 

24 numerical limitation in clause (i), notwith25 standing the authority under section 239 


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1 of the Transportation, Housing and Urban 

2 Development, and Related Agencies Appro3 priations Act, 2016 (division L of Public 

4 Law 114–113) or any other provision of 

5 law other than this section authorizing 

6 participation of new agencies. 

7 ‘‘(B) CONTRACT REVISIONS.—The Sec8 retary shall, from time to time and in consulta9 tion with public housing agencies, amend con10 tracts for participation by agencies in the pro11 gram under this section as may be necessary, 

12 based on experiences of agencies that have par13 ticipated in the program, to correct mistakes 

14 and better achieve the goals of this program set 

15 forth in subsection (a). 

16 ‘‘(C) RENEWAL OF CERTIFICATION.— 

17 ‘‘(i) IN GENERAL.—The Secretary 

18 shall provide that upon expiration of a con19 tract for participation by a public housing 

20 agency in the program under this section, 

21 to continue participating in the program 

22 the agency shall be required to recertify 

23 with the Secretary for such renewed par24 ticipation. The standards and requirements 

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1 pation in the program shall also apply to 

2 applications for renewed participation in 

3 the program. 

4 ‘‘(ii) TREATMENT OF NUMERICAL LIM5 ITATION.—An agency approved for contin6 ued participation in the program pursuant 

7 to recertification under this subparagraph 

8 shall not count toward fulfillment of the 

9 numerical limitation in subparagraph 

10 (A)(i). 

11 ‘‘(4) CRITERIA.—The Secretary shall establish 

12 criteria for approval of applications of public housing 

13 agencies for participation in the program under this 

14 section, which shall provide for approval of applica15 tions that are reasonably designed to carry out the 

16 purposes of the program under subsection (a). Such 

17 criteria shall take into consideration the capacity 

18 and’’; 

19 (B) by striking ‘‘each’’ and inserting 

20 ‘‘the’’; 

21 (C) by striking ‘‘a program under the dem22 onstration’’ and inserting ‘‘the proposed pro23 gram in the application’’; and 

24 (D) by striking ‘‘an agency’’ and inserting 

25 ‘‘the agency’’; 


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1 (6) in subsection (e)— 

2 (A) in paragraph (1), by striking ‘‘this 

3 demonstration’’ and inserting ‘‘the program 

4 under this section’’; and 

5 (B) in paragraph (2), by striking ‘‘dem6 onstration’’ and inserting ‘‘program under this 

7 section’’; 

8 (7) in subsection (f), by striking ‘‘section 9, or 

9 pursuant to section 14 by a public housing agency 

10 participating in the demonstration under this part’’ 

11 and inserting ‘‘of the United States Housing Act of 

12 1937, or provided from the Operating Fund under 

13 section 9(e) or from the Capital Fund under section 

14 9(d) of such Act, by a public housing agency partici15 pating in the program under this section’’; 

16 (8) in subsection (g)— 

17 (A) in paragraph (1), by inserting ‘‘, in18 cluding performance in achieving each of the 

19 purposes of the program specified in subsection 

20 (a)’’; 

21 (B) in paragraph (2)— 

22 (i) in the first sentence— 

23 (I) by inserting ‘‘, and including 

24 such content, as shall be’’ before 

25 ‘‘specified by the Secretary’’; and 


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1 (II) by inserting ‘‘, but not less 

2 often than annually’’ before the period 

3 at the end; and 

4 (ii) by striking subparagraph (C) and 

5 inserting the following: 

6 ‘‘(C) describe and analyze the effects of 

7 the program of the agency and the assisted ac8 tivities under such program in addressing and 

9 achieving the objectives of the program under 

10 this section and each of the purposes specified 

11 in subsection (a), including the effects of the 

12 program on— 

13 ‘‘(i) the number of new families the 

14 agency has been able to assist from the 

15 waiting lists for housing assistance that is 

16 administered by the agency, including 

17 vouchers for rental assistance under sec18 tion 8(o) of the United States Housing Act 

19 of 1937 (42 U.S.C. 1437f(o)) and dwelling 

20 units in public housing and in housing as21 sisted with project-based section 8 assist22 ance, as a result of the flexibility of funds 

23 and achievement of economic independ24 ence; 


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1 ‘‘(ii) the cost and annual change, per 

2 family participating in the program, of 

3 providing housing assistance referred to in 

4 clause (i) that is administered by the agen5 cy; 

6 ‘‘(iii) any cost savings and additional 

7 housing resulting from the program; 

8 ‘‘(iv) the household incomes, and 

9 changes in such incomes, of members of 

10 families participating in the program who 

11 are not exempt from work requirements; 

12 and 

13 ‘‘(v) such other factors as the Sec14 retary considers appropriate.’’; 

15 (C) by redesignating paragraphs (3) and 

16 (4) as paragraphs (5) and (6); and 

17 (D) by inserting after paragraph (2) the 

18 following new paragraphs: 

19 ‘‘(3) ANNUAL BUDGET PLAN.— 

20 ‘‘(A) REQUIREMENT.—Each agency shall 

21 submit annually to the Secretary, together with 

22 the report under paragraph (2), a budget plan 

23 for the program of the agency for the upcoming 

24 year and shall make such budget plan publicly 

25 available. 


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1 ‘‘(B) FORM AND METRICS.—Each annual 

2 budget plan shall be set forth in a standard 

3 form, prescribed by the Secretary and shall uti4 lize a common budget metric that allows for 

5 comparison of the budget plans of all public 

6 housing agencies participating in the program. 

7 ‘‘(C) CONTENT.—Each annual budget plan 

8 shall include such content as the Secretary shall 

9 specify, which shall include— 

10 ‘‘(i) a description and explanation of 

11 all new rules and policy changes adopted 

12 by the agency in accordance with this sec13 tion and the program under this section 

14 and, with respect to such new rules and 

15 policy changes— 

16 ‘‘(I) a description of the effect 

17 such rules and changes will have on 

18 the operation of the agency as com19 pared to the preceding year and as 

20 compared to the operations of the 

21 agency other than under the program 

22 under this section; 

23 ‘‘(II) a description of the extent 

24 to which such rules and changes 

25 helped to achieve the annual goals 


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1 identified in the public housing agen2 cy’s application pursuant to sub3 section (d)(1)(E) and, in the case of 

4 any such goals not achieved, a de5 scription of the extent to which such 

6 goals were not achieved and the rea7 sons for such failure; and 

8 ‘‘(III) whether the adoption of 

9 such new rules and policy changes re10 quired an adjustment in the annual 

11 goals identified in the public housing 

12 agency’s application pursuant to sub13 section (d)(1); 

14 ‘‘(ii) a plan for all capital assets and 

15 anticipated construction and rehabilitation 

16 activities of the public housing agency in 

17 the upcoming year and a description of 

18 whether and how such activities are au19 thorized and assisted under the program 

20 under this section; and 

21 ‘‘(iii) assurances satisfactory to the 

22 Secretary that such plan will conform with 

23 all applicable provisions of the Civil Rights 

24 Act of 1964 (42 U.S.C. 2000d et seq.), the 

25 Fair Housing Act (42 U.S.C. 3601 et 


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1 seq.), the Rehabilitation Act of 1973 (29 

2 U.S.C. 701 et seq.), and the Americans 

3 with Disabilities Act of 1990 (42 U.S.C. 

4 12101 et seq.). 

5 ‘‘(4) PUBLIC AND RESIDENT PARTICIPATION.— 

6 ‘‘(A) NOTIFICATION OF RESIDENTS.—Each 

7 public housing agency shall annually hold a 

8 meeting to notify all assisted families partici9 pating in the program of the public housing 

10 agency of the contents of the report under 

11 paragraph (2) for such year and budget plan 

12 under paragraph (3) for such year and impacts 

13 on such assisted families. Any public housing 

14 agency that assists, in the aggregate, more than 

15 50,000 families or assists families in multiple 

16 counties shall hold as many meetings as nec17 essary to provide each assisted family a good18 faith opportunity to attend such a meeting. 

19 ‘‘(B) PUBLIC COMMENT.—Each annual re20 port under paragraph (2) and annual plan 

21 under paragraph (3) shall— 

22 ‘‘(i) be made available for inspection 

23 and public comment 30 days before the 

24 meeting required by subparagraph (A) re25 garding such plan or report; and 


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1 ‘‘(ii) be approved in a public meeting 

2 of the board of directors or other gov3 erning body of the public housing agency 

4 before submission to the Secretary. 

5 ‘‘(C) PUBLIC AVAILABILITY.—Each annual 

6 report under paragraph (2) and annual plan 

7 under paragraph (3) shall, upon submission to 

8 the Secretary, be made publicly available and 

9 shall include all comments provided pursuant to 

10 subparagraph (B).’’; 

11 (9) in subsection (h)— 

12 (A) in paragraph (1), by striking ‘‘dem13 onstration’’ and inserting ‘‘program under this 

14 section’’; and 

15 (B) by striking paragraph (2) and insert16 ing the following: 

17 ‘‘(2) REVIEW.—The Secretary shall annually 

18 review the activities of each public housing agency 

19 participating in the program under this section and, 

20 based on such review and the information submitted 

21 by the agency pursuant to subsection (g), deter22 mine— 

23 ‘‘(A) the impact and effectiveness of the 

24 public housing agency’s program and activities 

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1 gram specified in subsection (a), including an 

2 assessment of such impact and effectiveness 

3 using the common set of budget metrics estab4 lished pursuant to subsection (d)(1)(D); 

5 ‘‘(B) the progress of the public housing 

6 agency toward meeting the goals identified in 

7 the public housing agency’s application pursu8 ant to subsection (d)(1)(E), using the metrics 

9 identified in the public housing agency’s appli10 cation pursuant to such subsection; and 

11 ‘‘(C) the extent of compliance by the public 

12 housing agency with the requirements of the 

13 program under this section and, in determining 

14 such extent of compliance, shall take into con15 sideration the unique characteristics of the pub16 lic housing agency. 

17 ‘‘(3) VERIFICATION OF ACCURACY.—In assess18 ing information submitted by public housing agen19 cies pursuant to subsection (g) and in reviewing 

20 such information and making determinations pursu21 ant to paragraph (2) of this subsection, the Sec22 retary shall carry out control activities and proce23 dures designed to verify the accuracy of such infor24 mation, which shall include auditing a representative 


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1 sample of such information using standard statis2 tical methods. 

3 ‘‘(4) CONTINUED PARTICIPATION.—The Sec4 retary shall not terminate the participation of any 

5 public housing agency in the program under this 

6 section unless the Secretary finds that the agency— 

7 ‘‘(A) is in material default of the condi8 tions and obligations under the agreement en9 tered into between the agency and the Secretary 

10 providing for such participation; 

11 ‘‘(B) as demonstrated in its reports under 

12 subsection (g)(2) and its annual budget plans 

13 under subsection (g)(3), has persistently failed 

14 to meet the goals identified in its application, 

15 and the reasons or circumstances specified in 

16 the public housing agency’s reports and plans 

17 for such failure are not sufficient to justify the 

18 continued failure; 

19 ‘‘(C) has misused or misappropriated 

20 funds; 

21 ‘‘(D) has failed to make a good faith effort 

22 to carry out the purposes of the program speci23 fied in subsection (a); or 


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1 ‘‘(E) has failed to cure a material defi2 ciency in performance after notice and an op3 portunity to correct the deficiency. 

4 ‘‘(5) CORRECTIVE ACTION PROGRAM.—The Sec5 retary shall carry out a program— 

6 ‘‘(A) to identify public housing agencies 

7 participating in the program under this section 

8 that are at risk of termination of such partici9 pation pursuant to paragraph (6); 

10 ‘‘(B) to consult with such public housing 

11 agencies regarding actions that may be taken to 

12 avoid such termination; 

13 ‘‘(C) to establish goals and timelines for 

14 such corrective actions; and 

15 ‘‘(D) to provide appropriate technical as16 sistance designed to facilitate such actions and 

17 avoid such termination. 

18 ‘‘(6) TERMINATION OF PARTICIPATION.—Any 

19 public housing agency whose participation in the 

20 program under this section is terminated shall be 

21 subject to the provisions of the United States Hous22 ing Act of 1937 (42 U.S.C. 1437 et seq.) and all 

23 other provisions of law applicable to public housing 

24 agencies not participating in the program, except 

25 that the Secretary shall provide a transition period, 


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1 that begins upon such termination and is not shorter 

2 than 18 months, for such public housing agencies to 

3 come into compliance with such laws. 

4 ‘‘(7) REPORTS TO CONGRESS.—Not later than 

5 the expiration of the 5-year period beginning on the 

6 date of the enactment of this Act, and not later than 

7 the expiration of each successive 5-year period there8 after, the Secretary shall submit a report to the 

9 Congress regarding the program under this section 

10 and the results of the reviews conducted under para11 graph (2), which shall— 

12 ‘‘(A) evaluate the programs carried out by 

13 public housing agencies participating in the pro14 gram, including with respect to each of the pur15 poses specified in subsection (a); and 

16 ‘‘(B) include findings and recommenda17 tions for appropriate legislative changes to the 

18 program. 

19 ‘‘(8) GAO REVIEWS AND REPORTS.—Not later 

20 than 180 days after the date of enactment of this 

21 Act, and not less frequently than every 8 years 

22 thereafter, the Comptroller General of the United 

23 States shall— 

24 ‘‘(A) conduct and complete a review of the 

25 program under this section, which shall include 


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1 examination and analysis of the implementation 

2 of the program and identification of any short3 comings and any means for improving the pro4 gram; and 

5 ‘‘(B) submit to the Congress a report re6 garding the review, which shall set forth a de7 tailed description of such implementation, any 

8 shortcomings of the program identified, and 

9 recommendations for improving the program.’’; 

10 (10) in subsection (i)— 

11 (A) in the matter preceding paragraph (1), 

12 by striking ‘‘section 14 of the United States 

13 Housing Act of 1937 for fiscal years 1996, 

14 1997, and 1998’’ and inserting ‘‘the Capital 

15 Fund under section 9(d) of the United States 

16 Housing Act of 1937 in each fiscal year’’; and 

17 (B) in paragraph (1)(B), by striking ‘‘up 

18 to 10’’; and 

19 (11) by striking subsection (j). 

20 (b) TREATMENT OF PARTICIPATING AGENCIES.— 

21 (1) CONTINUATION OF PARTICIPATION.—This 

22 section and the amendments made by this section 

23 shall not affect the status of any public housing 

24 agency that, as of the date of the enactment of this 

25 Act, is participating in the Moving to Work Program 


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1 under section 204 of the Departments of Veterans 

2 Affairs and Housing and Urban Development, and 

3 Independent Agencies Appropriations Act, 1996 (42 

4 U.S.C. 1437f note), as such a participating agency. 

5 (2) ELECTION.—Any public housing agency re6 ferred to in paragraph (1) may elect— 

7 (A) to continue participation in the Pro8 gram under section 204 of the Departments of 

9 Veterans Affairs and Housing and Urban De10 velopment, and Independent Agencies Appro11 priations Act, 1996 (42 U.S.C. 1437f note) 

12 under the terms of the agreement entered into 

13 between the agency and the Secretary providing 

14 for such participation until the date of the expi15 ration of such agreement; or 

16 (B) at any time before date of the expira17 tion of such agreement, to transition to partici18 pation under the program under such section 

19 204, as amended by this Act. 

20 (3) CONVERSION TO REFORMED PROGRAM.— 

21 (A) IN GENERAL.—Except as provided in 

22 subparagraph (B) of this paragraph, any public 

23 housing agency that elects pursuant to para24 graph (2)(A) of this subsection to continue par25 ticipation in the Program under section 204 of 


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1 the Departments of Veterans Affairs and Hous2 ing and Urban Development, and Independent 

3 Agencies Appropriations Act, 1996 (42 U.S.C. 

4 1437f note) shall, upon the expiration of the 

5 agreement referred to in such paragraph, be 

6 considered to have been approved for participa7 tion in the Program under such section 204, as 

8 amended by this Act, and the Secretary of 

9 Housing and Urban Development shall provide 

10 for the transition of the agency to participation 

11 under the Program under such section as so 

12 amended. 

13 (B) INAPPLICABILITY.—Subparagraph (A) 

14 shall not apply to any public housing agency 

15 that is determined by the Secretary to be in 

16 material default, upon the expiration of the 

17 agreement referred to in paragraph (2)(A), of 

18 the conditions and obligations under such 

19 agreement. 

20 (4) INAPPLICABILITY OF NUMERICAL LIMITA21 TION.—Any public housing agency transitioned pur22 suant to paragraph (2)(B) or (3)(A) of this sub23 section to participation under the program under 

24 section 204 of the Departments of Veterans Affairs 

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1 pendent Agencies Appropriations Act, 1996 (42 

2 U.S.C. 1437f note), as amended by this section, 

3 shall not count toward fulfillment of the numerical 

4 limitation under section 204(d)(3)(A) of the Depart5 ments of Veterans Affairs and Housing and Urban 

6 Development, and Independent Agencies Appropria7 tions Act, 1996 (42 U.S.C. 1437f note), as added by 

8 the amendment made by this section. 

9 SEC. 502. RESCISSION OF PUBLIC AND INDIAN HOUSING 

10 NOTICE 2021–18. 

11 The Public and Indian Housing Notice 2021–18 of 

12 the Department of Housing and Urban Development is 

13 hereby rescinded. 

14 TITLE VI—IMPROVING FINAN15 CIAL LITERACY REGARDING 

16 HOUSING 

17 SEC. 601. REFORMS TO HOUSING COUNSELING AND FINAN18 CIAL LITERACY PROGRAMS. 

19 (a) IN GENERAL.—Section 106(a)(4) of the Housing 

20 and Urban Development Act of 1968 (12 U.S.C. 

21 1701x(a)(4)) is amended— 

22 (1) in subparagraph (B)— 

23 (A) by striking ‘‘The Secretary’’ and in24 serting the following: 


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1 ‘‘(i) IN GENERAL.—The Secretary’’; 

2 and 

3 (B) by adding at the end the following: 

4 ‘‘(ii) REQUIREMENT.—The Secretary 

5 shall require each organization receiving 

6 assistance under this paragraph to employ 

7 individuals providing housing counseling 

8 who— 

9 ‘‘(I) are certified to understand 

10 sustainable homeownership; and 

11 ‘‘(II) pass required examinations 

12 that determine the ability of the indi13 vidual to counsel borrowers on respon14 sible homeownership. 

15 ‘‘(iii) SUSPENSION OF CERTIFI16 CATION.—If an individual employed by an 

17 organization that receives assistance under 

18 this paragraph provides counseling services 

19 to borrowers who, after receiving those 

20 services, have default rates that exceed the 

21 average default rates for borrowers coun22 seled by individuals in the area served by 

23 the organization, the Secretary— 

24 ‘‘(I) shall suspend the certifi25 cation from the individual; and 


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1 ‘‘(II) may deny future assistance 

2 under this paragraph to that organi3 zation. 

4 ‘‘(iv) PROHIBITION ON LOBBYING AC5 TIVITIES.—An organization that applies 

6 for or receives assistance under this para7 graph shall not engage in political activi8 ties, advocacy, or lobbying, whether di9 rectly or through other parties.’’; and 

10 (2) by adding at the end the following: 

11 ‘‘(F) SET ASIDES.—The Secretary shall set 

12 aside 40 percent of amounts authorized to carry 

13 out this paragraph for organizations that pro14 vide rental counseling or pre-foreclosure coun15 seling. 

16 ‘‘(G) GEOGRAPHIC DIVERSITY.—In making 

17 grants under this paragraph, the Secretary 

18 shall ensure that the recipients are geographi19 cally diverse and include organizations that 

20 serve urban and rural areas.’’. 

21 (b) REQUIRING PREPURCHASE AND FORECLOSURE

22 MITIGATION COUNSELING.— 

23 (1) COVERED MORTGAGE LOAN DEFINED.—In 

24 this subsection, the term ‘‘covered mortgage loan’’ 

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1 dinate lien on residential real property (including in2 dividual units of condominiums and cooperatives) de3 signed principally for the occupancy of from 1- to 4- 

4 families that is— 

5 (A) insured by the Federal Housing Ad6 ministration under title II of the National 

7 Housing Act (12 U.S.C. 1707 et seq.); 

8 (B) insured under section 255 of the Na9 tional Housing Act (12 U.S.C. 1715z–20); 

10 (C) guaranteed under section 184 or 184A 

11 of the Housing and Community Development 3 

12 Act of 1992 (12 U.S.C. 1715z–13a, 1715z–4 

13 13b); 

14 (D) guaranteed or insured by the Depart15 ment of Agriculture; or 

16 (E) made by the Department of Agri17 culture. 

18 (2) REQUIREMENT FOR PURCHASERS.—Before 

19 purchasing residential real property that secures a 

20 covered mortgage loan, the purchaser shall partici21 pate in prepurchase housing counseling. 

22 (3) REQUIREMENT FOR BORROWERS.—A bor23 rower with respect to a covered mortgage loan who 

24 is 30 days or more delinquent on payments for the 


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1 covered mortgage loan shall participate in fore2 closure mitigation counseling. 

Æ 


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