II 

116TH CONGRESS 

1ST SESSION S. 1703 

To amend the Internal Revenue Code of 1986 to reform the low-income 

housing credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 4, 2019 

Ms. CANTWELL (for herself, Mr. YOUNG, Mr. WYDEN, and Mr. ISAKSON) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to reform 

the low-income housing credit, and for other purposes. 

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 ‘‘Affordable Housing Credit Improvement Act of 2019’’. 

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—REFORM OF STATE ALLOCATION FORMULAS 

Sec. 101. Increases in State allocations. 

TITLE II—REFORMS RELATING TO TENANT ELIGIBILITY 


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Sec. 201. Average income test applicability to exempt facility bonds. 

Sec. 202. Codification of rules relating to increased tenant income. 

Sec. 203. Modification of student occupancy rules. 

Sec. 204. Tenant voucher payments taken into account as rent for certain purposes. 

Sec. 205. Requirement that low-income housing credit-supported housing protect victims of domestic abuse. 

Sec. 206. Clarification of general public use requirement relating to veterans, 

etc. 

TITLE III—CREDIT RATE AND OTHER RULES RELATING TO 

CREDIT ELIGIBILITY AND DETERMINATION 

Sec. 301. Minimum credit rate. 

Sec. 302. Reconstruction or replacement period after casualty loss. 

Sec. 303. Modification and clarification of rights relating to building purchase. 

Sec. 304. Modification of previous ownership rules; limitation on acquisition 

basis. 

Sec. 305. Certain relocation costs taken into account as rehabilitation expenditures. 

Sec. 306. Repeal of qualified census tract population cap. 

Sec. 307. Determination of community revitalization plan to be made by housing credit agency. 

Sec. 308. Prohibition of local approval and contribution requirements. 

Sec. 309. Increase in credit for certain projects designated to serve extremely 

low-income households. 

Sec. 310. Increase in credit for bond-financed projects designated by State 

agency. 

Sec. 311. Elimination of basis reduction for low-income housing properties receiving certain energy benefits. 

Sec. 312. Restriction of planned foreclosures. 

Sec. 313. Increase of population cap for difficult development areas. 

Sec. 314. Increased cost oversight and accountability. 

TITLE IV—REFORMS RELATING TO NATIVE AMERICAN 

ASSISTANCE 

Sec. 401. Selection criteria under qualified allocation plans. 

Sec. 402. Inclusion of Indian areas as difficult development areas for purposes 

of certain buildings. 

TITLE V—REFORMS RELATING TO RURAL ASSISTANCE 

Sec. 501. Inclusion of rural areas as difficult development areas. 

Sec. 502. Uniform income eligibility for rural projects. 

TITLE VI—EXEMPT FACILITY BONDS 

Sec. 601. Revision and clarification of the treatment of refunding issues. 

TITLE VII—AFFORDABLE HOUSING TAX CREDIT 

Sec. 701. Affordable housing tax credit. 


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1 TITLE I—REFORM OF STATE 

2 ALLOCATION FORMULAS 

3 SEC. 101. INCREASES IN STATE ALLOCATIONS. 

4 (a) PHASE-IN OF INCREASES.— 

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

6 42(h)(3)(C) of the Internal Revenue Code of 1986 

7 is amended— 

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

9 and inserting ‘‘the per capita dollar amount’’, 

10 and 

11 (B) by striking ‘‘$2,000,000’’ in subclause 

12 (II) and inserting ‘‘the minimum ceiling 

13 amount’’. 

14 (2) PER CAPITA DOLLAR AMOUNT; MINIMUM

15 CEILING AMOUNT.—Subparagraph (I) of section 

16 42(h)(3) of such Code is amended to read as follows: 

17 ‘‘(I) PER CAPITA DOLLAR AMOUNT; MIN18 IMUM CEILING AMOUNT.—For purposes of this 

19 paragraph— 

20 ‘‘(i) PER CAPITA DOLLAR AMOUNT.— 

21 The per capita dollar amount is— 

22 ‘‘(I) for calendar year 2019, 

23 $2.76, 

24 ‘‘(II) for calendar year 2020, 

25 $3.10, 


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1 ‘‘(III) for calendar year 2021, 

2 $3.49, 

3 ‘‘(IV) for calendar year 2022, 

4 $3.93, 

5 ‘‘(V) for calendar year 2023, 

6 $4.42, and 

7 ‘‘(VI) $4.96 thereafter. 

8 ‘‘(ii) MINIMUM CEILING AMOUNT.— 

9 The minimum ceiling amount is— 

10 ‘‘(I) for calendar year 2019, 

11 $3,166,875, 

12 ‘‘(II) for calendar year 2020, 

13 $3,565,496, 

14 ‘‘(III) for calendar year 2021, 

15 $4,010,213, 

16 ‘‘(IV) for calendar year 2022, 

17 $4,510,487, 

18 ‘‘(V) for calendar year 2023, 

19 $5,073,171, and 

20 ‘‘(VI) $5,700,468 thereafter.’’. 

21 (3) MODIFICATION OF COST-OF-LIVING ADJUST22 MENT.—Subparagraph (H) of section 42(h)(3) of 

23 such Code is amended— 

24 (A) by striking ‘‘2002’’ in clause (i) and 

25 inserting ‘‘2019’’, 


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1 (B) by striking ‘‘the $2,000,000 and $1.75 

2 amounts in subparagraph (C)’’ in clause (i) and 

3 inserting ‘‘the dollar amounts applicable to such 

4 calendar year under clauses (i) and (ii) of sub5 paragraph (I)’’, 

6 (C) by striking ‘‘2001’’ in clause (i)(II) 

7 and inserting ‘‘2018’’, 

8 (D) by striking ‘‘$2,000,000’’ in clause 

9 (ii)(I) and inserting ‘‘minimum ceiling’’, and 

10 (E) by striking ‘‘$1.75’’ in clause (ii)(II) 

11 and inserting ‘‘per capita dollar’’. 

12 (4) EFFECTIVE DATE.—The amendments made 

13 by this subsection shall apply to calendar years be14 ginning after December 31, 2019. 

15 (b) PERMANENT INCREASES.— 

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

17 42(h)(3)(C) of the Internal Revenue Code of 1986, 

18 as amended by subsection (a)(1), is amended— 

19 (A) by striking ‘‘the per capita dollar 

20 amount’’ in subclause (I) and inserting 

21 ‘‘$4.96’’, and 

22 (B) by striking ‘‘the minimum ceiling 

23 amount’’ in subclause (II) and inserting 

24 ‘‘$5,700,468’’. 


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1 (2) CONFORMING AMENDMENT.—Paragraph (3) 

2 of section 42(h) of such Code is amended by striking 

3 subparagraph (I), as amended by subsection (a)(2). 

4 (3) COST-OF-LIVING ADJUSTMENT.—Subpara5 graph (H) of section 42(h)(3) of such Code, as 

6 amended by subsection (a)(3), is amended— 

7 (A) by striking ‘‘the dollar amounts appli8 cable to such calendar year under clauses (i) 

9 and (ii) of subparagraph (I)’’ in clause (i) and 

10 inserting ‘‘the $5,700,468 and $4.96 amounts 

11 in subparagraph (C)’’, 

12 (B) by striking ‘‘minimum ceiling’’ in 

13 clause (ii)(I) and inserting ‘‘$5,700,468’’, and 

14 (C) by striking ‘‘per capita dollar’’ in 

15 clause (ii)(II) and inserting ‘‘$4.96’’. 

16 (4) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply to calendar years be18 ginning after December 31, 2024. 

19 TITLE II—REFORMS RELATING 

20 TO TENANT ELIGIBILITY 

21 SEC. 201. AVERAGE INCOME TEST APPLICABILITY TO EX22 EMPT FACILITY BONDS. 

23 (a) IN GENERAL.—Paragraph (1) of section 142(d) 

24 of the Internal Revenue Code of 1986 is amended— 


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1 (1) by striking ‘‘(A) or (B)’’ and inserting ‘‘(A), 

2 (B), or (C)’’, and 

3 (2) by inserting after subparagraph (B) the fol4 lowing new subparagraph: 

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

6 meets the requirements of this subparagraph if 

7 it meets the minimum requirements of section 

8 42(g)(1)(C).’’. 

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

10 this section shall apply to elections made under section 

11 142(d)(1) of the Internal Revenue Code of 1986 after 

12 March 23, 2018. 

13 SEC. 202. CODIFICATION OF RULES RELATING TO IN14 CREASED TENANT INCOME. 

15 (a) IN GENERAL.—Clause (i) of section 42(g)(2)(D) 

16 of the Internal Revenue Code of 1986 is amended by strik17 ing ‘‘clauses (ii), (iii), and (iv)’’ and all that follows and 

18 inserting ‘‘clauses (ii), (iii), (iv), and (vi), notwithstanding 

19 an increase in the income of the occupants above the in20 come limitation applicable under paragraph (1)— 

21 ‘‘(I) a low-income unit shall con22 tinue to be treated as a low-income 

23 unit if the income of such occupants 

24 initially was 60 percent or less of area 


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1 median gross income and such unit 

2 continues to be rent-restricted, and 

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

4 of initial occupancy by such occu5 pants, any Federal, State, or local 

6 government income restriction ap7 plied, and which subsequently becomes 

8 part of a building with respect to 

9 which rehabilitation expenditures are 

10 taken into account under subsection 

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

12 unit if the income of such occupants 

13 initially was 60 percent or less of area 

14 median gross income and does not ex15 ceed 120 percent of area median gross 

16 income as of the date of acquisition of 

17 the property by the taxpayer.’’. 

18 (b) EXCEPTION.—Subparagraph (D) of section 

19 42(g)(2) of the Internal Revenue Code of 1986, as amend20 ed by this Act, is amended by adding at the end the fol21 lowing new clause: 

22 ‘‘(vi) EXCEPTION TO RULE RELATING

23 TO INCREASED TENANT INCOME.—In the 

24 case of an occupant of a low-income unit 

25 who initially qualified to occupy such unit 


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1 by reason of paragraph (1)(C) with an in2 come in excess of 60 percent of area me3 dian gross income but not in excess of 80 

4 percent of area median gross income, 

5 clause (i) shall be applied for substituting 

6 ‘80 percent’ for ‘60 percent’ each place it 

7 appears.’’. 

8 (c) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2018. 

11 SEC. 203. MODIFICATION OF STUDENT OCCUPANCY RULES. 

12 (a) IN GENERAL.—Subparagraph (D) of section 

13 42(i)(3) of the Internal Revenue Code of 1986 is amended 

14 to read as follows: 

15 ‘‘(D) RULES RELATING TO STUDENTS.— 

16 ‘‘(i) IN GENERAL.—A unit occupied 

17 solely by individuals who— 

18 ‘‘(I) have not attained age 24, 

19 and 

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

21 course of study at an institution of 

22 higher education (as defined in section 

23 3304(f)), 

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


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1 ‘‘(ii) EXCEPTION FOR CERTAIN FED2 ERAL PROGRAMS.—In the case of a feder3 ally-assisted building (as defined in sub4 section (d)(6)(C)(i)), clause (i) shall not 

5 apply to a unit all of the occupants of 

6 which meet all applicable requirements 

7 under the housing program described in 

8 such subsection through which the building 

9 is assisted, financed, or operated. 

10 ‘‘(iii) OTHER EXCEPTIONS.—An indi11 vidual shall not be treated as described in 

12 clause (i) if the individual— 

13 ‘‘(I) is married, 

14 ‘‘(II) is a person with disabilities 

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

16 the United States Housing Act of 

17 1937), 

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

19 section 101(2) of title 38, United 

20 States Code), 

21 ‘‘(IV) has 1 or more qualifying 

22 children (as defined in section 

23 152(c)), 

24 ‘‘(V) is or has been a victim or 

25 threatened victim of domestic violence, 


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1 dating violence, sexual assault, or 

2 stalking (as defined in section 40002 

3 of the Violence Against Women Act of 

4 1994), or 

5 ‘‘(VI) meets the income limita6 tion applicable under subsection 

7 (g)(1) to the project of which the 

8 building is a part and is, or was im9 mediately prior to attaining the age of 

10 majority— 

11 ‘‘(aa) an emancipated minor 

12 or in legal guardianship as deter13 mined by a court of competent 

14 jurisdiction in the individual’s 

15 State of legal residence, 

16 ‘‘(bb) under the care and 

17 placement responsibility of the 

18 State agency responsible for ad19 ministering a plan under part B 

20 or part E of title IV of the Social 

21 Security Act, or 

22 ‘‘(cc) an unaccompanied 

23 youth (within the meaning of sec24 tion 725(6) of the McKinney25 Vento Homeless Assistance Act 


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1 (42 U.S.C. 11434a(6))) or a 

2 homeless child or youth (within 

3 the meaning of section 725(2) of 

4 such Act (42 U.S.C. 

5 11434a(2))).’’. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2019. 

9 SEC. 204. TENANT VOUCHER PAYMENTS TAKEN INTO AC10 COUNT AS RENT FOR CERTAIN PURPOSES. 

11 (a) IN GENERAL.—Subparagraph (B) of section 

12 42(g)(2) of the Internal Revenue Code of 1986 is amended 

13 by adding at the end the following new sentence: ‘‘In the 

14 case of a project with respect to which the taxpayer elects 

15 the requirements of subparagraph (C) of paragraph (1), 

16 or the portion of a project to which subsection (d)(5)(C) 

17 applies, clause (i) shall not apply with respect to any ten18 ant-based assistance (as defined in section 8(f)(7) of the 

19 United States Housing Act of 1937 (42 U.S.C. 

20 1437f(f)(7))).’’. 

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

22 this section shall apply to rent paid in taxable years begin23 ning after December 31, 2019. 


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1 SEC. 205. REQUIREMENT THAT LOW-INCOME HOUSING 

2 CREDIT-SUPPORTED HOUSING PROTECT VIC3 TIMS OF DOMESTIC ABUSE. 

4 (a) IN GENERAL.—Subparagraph (B) of section 

5 42(h)(6) of the Internal Revenue Code of 1986 is amended 

6 by striking ‘‘and’’ at the end of clause (v), by striking the 

7 period at the end of clause (vi) and inserting ‘‘, and’’, and 

8 by adding at the end the following new clause: 

9 ‘‘(vii) which— 

10 ‘‘(I) prohibits the refusal to lease 

11 to, or termination of a lease by, a per12 son solely on the basis of criminal ac13 tivity directly relating to domestic vio14 lence, dating violence, sexual assault, 

15 or stalking that is engaged in by a 

16 member of the household of the ten17 ant or any guest or other person 

18 under the control of the tenant, if the 

19 tenant or an affiliated individual of 

20 the tenant is the victim or threatened 

21 victim of such domestic violence, dat22 ing violence, sexual assault, or stalk23 ing, and 

24 ‘‘(II) allows prospective, present, 

25 or former occupants of the building 


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1 the right to enforce in any State court 

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

3 (b) BIFURCATION.— 

4 (1) IN GENERAL.—Subparagraph (B) of section 

5 42(h)(6) of the Internal Revenue Code of 1986, as 

6 amended by subsection (a), is amended by adding at 

7 the end the following new flush sentence: 

8 ‘‘For purposes of clause (vii)(I), rules similar to 

9 the rules of section 41411(b)(3)(B) of the Vio10 lence Against Women Act of 1994 shall apply 

11 with respect to the owner or manager of a 

12 building.’’. 

13 (2) EFFECT OF BIFURCATION.—Paragraph (2) 

14 of section 42(g) of such Code is amended by adding 

15 at the end the following new subparagraph: 

16 ‘‘(F) TREATMENT OF BIFURCATION IN

17 CASES OF DOMESTIC VIOLENCE.—In any case 

18 in which— 

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

20 from a low-income unit because such occu21 pant has engaged in criminal activity di22 rectly relating to domestic violence, dating 

23 violence, sexual assault, or stalking against 

24 an affiliated individual or other individual 

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1 lating to domestic violence, dating violence, 

2 sexual assault, or stalking, and 

3 ‘‘(ii) the lease on such unit is bifur4 cated as provided in the last sentence of 

5 subsection (h)(6)(B), 

6 then the remaining occupants of such low-in7 come unit shall not be treated as a new tenant 

8 for purposes of this section.’’. 

9 (c) CLARIFICATION OF GENERAL PUBLIC USE RE10 QUIREMENT.—Paragraph (9) of section 42(g) of the Inter11 nal Revenue Code of 1986 is amended by striking ‘‘or’’ 

12 at the end of subparagraph (B), by striking the period 

13 at the end of subparagraph (C) and inserting ‘‘, or’’, and 

14 by adding at the end the following new subparagraph: 

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

16 of criminal activity directly relating to domestic 

17 violence, dating violence, sexual assault, or 

18 stalking.’’. 

19 (d) EFFECTIVE DATES.— 

20 (1) IN GENERAL.—Except as provided in para21 graph (2), the amendments made by this section 

22 shall apply to agreements executed or modified on or 

23 after the date that is 30 days after the date of the 

24 enactment of this Act. 


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1 (2) PUBLIC USE REQUIREMENT.—The amend2 ments made by subsection (c) shall apply to build3 ings placed in service before, on, or after the date 

4 of the enactment of this Act. 

5 SEC. 206. CLARIFICATION OF GENERAL PUBLIC USE RE6 QUIREMENT RELATING TO VETERANS, ETC. 

7 (a) IN GENERAL.—Paragraph (9) of section 42(g) of 

8 the Internal Revenue Code of 1986, as amended by section 

9 205, is further amended by adding at the end the following 

10 flush language: 

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

12 as a member of a specified group under a Federal 

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

14 (b) QUALIFIED RESIDENTIAL RENTAL PROJECTS.— 

15 Paragraph (2) of section 142(d) of the Internal Revenue 

16 Code of 1986 is amended by adding at the end the fol17 lowing new subparagraph: 

18 ‘‘(F) CLARIFICATION OF GENERAL PUBLIC

19 USE REQUIREMENT.—A unit shall not fail to 

20 meet the general public use requirement solely 

21 because of occupancy restrictions or pref22 erences, if such restrictions or preferences meet 

23 the general public use requirement of section 

24 42.’’. 

25 (c) EFFECTIVE DATES.— 


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1 (1) IN GENERAL.—The amendment made by 

2 subsection (a) shall apply to buildings placed in serv3 ice before, on, or after the date of the enactment of 

4 this Act. 

5 (2) QUALIFIED RESIDENTIAL RENTAL

6 PROJECTS.—The amendment made by subsection (b) 

7 shall apply to bonds issued before, on, or after the 

8 date of the enactment of this Act. 

9 TITLE III—CREDIT RATE AND 

10 OTHER RULES RELATING TO 

11 CREDIT ELIGIBILITY AND DE12 TERMINATION 

13 SEC. 301. MINIMUM CREDIT RATE. 

14 (a) IN GENERAL.—Subsection (b) of section 42 of the 

15 Internal Revenue Code of 1986 is amended— 

16 (1) by redesignating paragraph (3) as para17 graph (4), and 

18 (2) by inserting after paragraph (2) the fol19 lowing new paragraph: 

20 ‘‘(3) MINIMUM CREDIT RATE.—In the case of 

21 any new or existing building to which paragraph (2) 

22 does not apply and which is placed in service by the 

23 taxpayer after December 31, 2018, the applicable 

24 percentage shall not be less than 4 percent.’’. 


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

2 this section shall apply to buildings which receive alloca3 tions of housing credit dollar amount or, in the case of 

4 projects financed by tax-exempt bonds as described in sec5 tion 42(h)(4) of the Internal Revenue Code of 1986, which 

6 receive a determination of housing credit dollar amount, 

7 after the date of the enactment of this Act. 

8 SEC. 302. RECONSTRUCTION OR REPLACEMENT PERIOD 

9 AFTER CASUALTY LOSS. 

10 (a) IN GENERAL.—Subparagraph (E) of section 

11 42(j)(4) of the Internal Revenue Code of 1986 is amended 

12 by striking ‘‘a reasonable period established by the Sec13 retary’’ and inserting ‘‘a reasonable period established by 

14 the applicable housing credit agency (not to exceed 25 

15 months from the date on which the casualty loss arises). 

16 The determination under paragraph (1) shall not be made 

17 with respect to a property the basis of which is affected 

18 by a casualty loss until the period described in the pre19 ceding sentence with respect to such property has ex20 pired.’’. 

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

22 this section shall apply to casualty losses arising after the 

23 date of the enactment of this Act. 


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1 SEC. 303. MODIFICATION AND CLARIFICATION OF RIGHTS 

2 RELATING TO BUILDING PURCHASE. 

3 (a) MODIFICATION OF RIGHT OF FIRST REFUSAL.— 

4 Subparagraph (A) of section 42(i)(7) of the Internal Rev5 enue Code of 1986 is amended by striking ‘‘a right of 1st 

6 refusal’’ and inserting ‘‘an option’’. 

7 (b) CLARIFICATION WITH RESPECT TO RIGHT OF

8 FIRST REFUSAL AND PURCHASE OPTIONS.— 

9 (1) PURCHASE OF PARTNERSHIP INTEREST.— 

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

11 section 42(i)(7) of the Internal Revenue Code of 

12 1986, as amended by subsection (a), is amend13 ed by striking ‘‘the property’’ and inserting 

14 ‘‘the property or all of the partnership interests 

15 (other than interests of the person exercising 

16 such option or a related party thereto (within 

17 the meaning of section 267(b) or 707(b)(1)) re18 lating to the property’’. 

19 (B) CONFORMING AMENDMENT.—Subpara20 graph (B) of section 42(i)(7) of the Internal 

21 Revenue Code of 1986 is amended by adding at 

22 the end the following: ‘‘In the case of a pur23 chase of a partnership interest, the minimum 

24 purchase price is an amount not less than such 

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1 mined under the first sentence of this subpara2 graph.’’. 

3 (2) PROPERTY INCLUDES ASSETS RELATING TO

4 THE BUILDING.—Paragraph (7) of section 42(i) of 

5 the Internal Revenue Code of 1986 is amended by 

6 adding at the end the following new subparagraph: 

7 ‘‘(C) PROPERTY.—For purposes of sub8 paragraph (A), the term ‘property’ may include 

9 all or any of the assets held for the develop10 ment, operation, or maintenance of a build11 ing.’’. 

12 (3) EXERCISE OF RIGHT OF FIRST REFUSAL

13 AND PURCHASE OPTIONS.—Subparagraph (A) of 

14 section 42(i)(7) of the Internal Revenue Code of 

15 1986, as amended by subsection (a) and paragraph 

16 (1)(A), is amended by adding at the end the fol17 lowing: ‘‘For purposes of determining whether an 

18 option, including a right of first refusal, to purchase 

19 property is described in the preceding sentence— 

20 ‘‘(i) such option or right of first re21 fusal may be exercised with or without the 

22 approval of the taxpayer, and 

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1 chase the property, including an offer by a 

2 related party.’’. 

3 (c) EFFECTIVE DATES.— 

4 (1) MODIFICATION OF RIGHT OF FIRST RE5 FUSAL.—The amendment made by subsection (a) 

6 shall apply to agreements entered into after the date 

7 of the enactment of this Act. 

8 (2) CLARIFICATION.—The amendments made 

9 by subsection (b) shall apply to agreements among 

10 the owners of the project (including partners, mem11 bers, their affiliated organizations, and designated 

12 entities described in subparagraph (A)) entered into 

13 before, on, or after the date of the enactment of this 

14 Act. 

15 (3) NO EFFECT ON AGREEMENTS.—No provi16 sion of this amendment shall supercede the agree17 ment among the parties as to the manner of execu18 tion or terms of a right of first refusal or option per19 mitted by section 42(i)(7). 

20 SEC. 304. MODIFICATION OF PREVIOUS OWNERSHIP RULES; 

21 LIMITATION ON ACQUISITION BASIS. 

22 (a) IN GENERAL.—Clause (ii) of section 42(d)(2)(B) 

23 of the Internal Revenue Code of 1986 is amended by in24 serting ‘‘, or the taxpayer elects the application of sub25 paragraph (C)(ii)’’ after ‘‘service’’. 


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1 (b) LIMITATION ON ACQUISITION BASIS.—Subpara2 graph (C) of section 42(d)(2) of the Internal Revenue 

3 Code of 1986 is amended— 

4 (1) by striking ‘‘For purposes of subparagraph 

5 (A), the adjusted basis’’ and inserting ‘‘For pur6 poses of subparagraph (A)— 

7 ‘‘(i) IN GENERAL.—The adjusted 

8 basis’’, and 

9 (2) by adding at the end the following new 

10 clauses: 

11 ‘‘(ii) BUILDINGS IN SERVICE WITHIN

12 PREVIOUS 10 YEARS.—If the period be13 tween the date of acquisition of the build14 ing by the taxpayer and the date the build15 ing was last placed in service is less than 

16 10 years, the taxpayer’s basis attributable 

17 to the acquisition of the building which is 

18 taken into account in determining the ad19 justed basis shall not exceed the sum of— 

20 ‘‘(I) the lowest amount paid for 

21 acquisition of the building by any per22 son during the 10 years preceding the 

23 date of the acquisition of the building 

24 by the taxpayer, adjusted as provided 

25 in clause (iii), and 


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1 ‘‘(II) the value of any capital im2 provements made by the person who 

3 sells the building to the taxpayer 

4 which are reflected in such seller’s 

5 basis. 

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

7 a basis determination made in any taxable 

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

9 shall be increased by an amount equal to— 

10 ‘‘(I) such amount, multiplied by 

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

12 determined in the same manner as 

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

14 year in which the taxable year begins 

15 by taking into account the acquisition 

16 year in lieu of calendar year 1992. 

17 For purposes of the preceding sentence, 

18 the acquisition year is the calendar year in 

19 which the lowest amount referenced in 

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

21 of the building.’’. 

22 (c) CONFORMING AMENDMENTS.—Clause (i) of sec23 tion 42(d)(2)(D) of the Internal Revenue Code of 1986 

24 is amended— 


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1 (1) by striking ‘‘FOR SUBPARAGRAPH (B)’’ in 

2 the heading, and 

3 (2) by striking ‘‘subparagraph (B)(ii)’’ in the 

4 matter preceding subclause (I) and inserting ‘‘sub5 paragraph (B)(ii) or (C)(ii)’’. 

6 (d) MODIFICATION OF PLACED IN SERVICE RULE.— 

7 Clause (iii) of section 42(d)(2)(B) of the Internal Revenue 

8 Code of 1986 is amended to read as follows: 

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

10 the taxpayer or by any person related (as 

11 of the date of acquisition by the taxpayer) 

12 to the taxpayer at any time during the 5- 

13 year period ending on the date of acquisi14 tion by the taxpayer, and’’. 

15 (e) EFFECTIVE DATE.—The amendments made by 

16 this section shall apply to buildings placed in service after 

17 December 31, 2018. 

18 SEC. 305. CERTAIN RELOCATION COSTS TAKEN INTO AC19 COUNT AS REHABILITATION EXPENDITURES. 

20 (a) IN GENERAL.—Paragraph (2) of section 42(e) of 

21 the Internal Revenue Code of 1986 is amended by adding 

22 at the end the following new subparagraph: 

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

24 the case of a rehabilitation of a building to 


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1 which section 280B does not apply, costs relat2 ing to the relocation of occupants, including— 

3 ‘‘(i) amounts paid to occupants, 

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

5 services relating to such relocation, and 

6 ‘‘(iii) amounts paid for temporary 

7 housing for occupants, 

8 shall be treated as chargeable to capital account 

9 and taken into account as rehabilitation ex10 penditures.’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to expenditures paid or incurred 

13 after December 31, 2018. 

14 (c) NO INFERENCE.—Nothing in the amendment 

15 made by this section shall be construed to create any infer16 ence with respect to the treatment of relocation costs paid 

17 or incurred before December 31, 2018. 

18 SEC. 306. REPEAL OF QUALIFIED CENSUS TRACT POPU19 LATION CAP. 

20 (a) IN GENERAL.—Clause (ii) of section 42(d)(5)(B) 

21 of the Internal Revenue Code of 1986 is amended— 

22 (1) by striking subclauses (II) and (III), and 

23 (2) by striking ‘‘QUALIFIED CENSUS TRACT.— 

24 ‘‘(I) IN GENERAL.—The term’’, 


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1 and inserting ‘‘QUALIFIED CENSUS TRACT.—The 

2 term’’. 

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

4 this section shall apply to designations of qualified census 

5 tracts under section 42(d)(5)(B)(ii) of the Internal Rev6 enue Code of 1986 after December 31, 2019. 

7 SEC. 307. DETERMINATION OF COMMUNITY REVITALIZA8 TION PLAN TO BE MADE BY HOUSING CREDIT 

9 AGENCY. 

10 (a) IN GENERAL.—Subclause (III) of section 

11 42(m)(1)(B)(ii) of the Internal Revenue Code of 1986 is 

12 amended by inserting ‘‘, as determined by the housing 

13 credit agency according to criteria established by such 

14 agency,’’ after ‘‘(d)(5)(B)(ii)) and’’. 

15 (b) CRITERIA.—Paragraph (1) of section 42(m) of 

16 the Internal Revenue Code of 1986 is amended by adding 

17 at the end the following new subparagraph: 

18 ‘‘(E) CRITERIA FOR DETERMINATION RE19 LATING TO CONCERTED COMMUNITY REVITAL20 IZATION PLAN.—For purposes of subparagraph 

21 (B)(ii)(III), the criteria which shall be estab22 lished by a housing credit agency for deter23 mining whether the development of a project 

24 contributes to a concerted community develop25 ment plan shall take into account any factors 


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1 the agency deems appropriate, including the ex2 tent to which the proposed plan— 

3 ‘‘(i) is geographically specific, 

4 ‘‘(ii) outlines a clear plan for imple5 mentation and goals for outcomes, 

6 ‘‘(iii) includes a strategy for applying 

7 for or obtaining commitments of public or 

8 private investment (or both) in nonhousing 

9 infrastructure, amenities, or services, and 

10 ‘‘(iv) demonstrates the need for com11 munity revitalization.’’. 

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to allocations of housing credit dol14 lar amounts made under qualified allocation plans (as de15 fined in section 42(m)(1)(B) of the Internal Revenue Code 

16 of 1986) adopted after December 31, 2019. 

17 SEC. 308. PROHIBITION OF LOCAL APPROVAL AND CON18 TRIBUTION REQUIREMENTS. 

19 (a) IN GENERAL.—Paragraph (1) of section 42(m) 

20 of the Internal Revenue Code of 1986, as amended by sec21 tion 307, is further amended— 

22 (1) by striking clause (ii) of subparagraph (A) 

23 and by redesignating clauses (iii) and (iv) thereof as 

24 clauses (ii) and (iii), and 


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1 (2) by adding at the end the following new sub2 paragraph: 

3 ‘‘(F) LOCAL APPROVAL OR CONTRIBUTION

4 NOT TAKEN INTO ACCOUNT.—The selection cri5 teria under a qualified allocation plan shall not 

6 include consideration of— 

7 ‘‘(i) any support or opposition with re8 spect to the project from local or elected 

9 officials, or 

10 ‘‘(ii) any local government contribu11 tion to the project, except to the extent 

12 such contribution is taken into account as 

13 part of a broader consideration of the 

14 project’s ability to leverage outside funding 

15 sources, and is not prioritized over any 

16 other source of outside funding.’’. 

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

18 this section shall apply to allocations of housing credit dol19 lar amounts made after December 31, 2019. 

20 SEC. 309. INCREASE IN CREDIT FOR CERTAIN PROJECTS 

21 DESIGNATED TO SERVE EXTREMELY LOW-IN22 COME HOUSEHOLDS. 

23 (a) IN GENERAL.—Paragraph (5) of section 42(d) of 

24 the Internal Revenue Code of 1986 is amended by adding 

25 at the end the following new subparagraph: 


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1 ‘‘(C) INCREASE IN CREDIT FOR PROJECTS

2 DESIGNATED TO SERVE EXTREMELY LOW-IN3 COME HOUSEHOLDS.—In the case of any build4 ing— 

5 ‘‘(i) 20 percent or more of the resi6 dential units in which are designated by 

7 the taxpayer for occupancy by households 

8 the aggregate household income of which 

9 does not exceed the greater of— 

10 ‘‘(I) 30 percent of area median 

11 gross income, or 

12 ‘‘(II) 100 percent of an amount 

13 equal to the Federal poverty line 

14 (within the meaning of section 

15 36B(d)(3)), and 

16 ‘‘(ii) which is designated by the hous17 ing credit agency as requiring the increase 

18 in credit under this subparagraph in order 

19 for such building to be financially feasible 

20 as part of a qualified low-income housing 

21 project, 

22 subparagraph (B) shall not apply to the portion 

23 of such building which is comprised of such 

24 units, and the eligible basis of such portion of 

25 the building shall be 150 percent of such basis 


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1 determined without regard to this subpara2 graph.’’. 

3 (b) EFFECTIVE DATE.—The amendment made by 

4 this section shall apply to buildings which receive alloca5 tions of housing credit dollar amount or, in the case of 

6 projects financed by tax-exempt bonds as described in sec7 tion 42(h)(4) of the Internal Revenue Code of 1986, which 

8 receive a determination of housing credit dollar amount, 

9 after the date of the enactment of this Act. 

10 SEC. 310. INCREASE IN CREDIT FOR BOND-FINANCED 

11 PROJECTS DESIGNATED BY STATE AGENCY. 

12 (a) IN GENERAL.—Clause (v) of section 42(d)(5)(B) 

13 of the Internal Revenue Code of 1986 is amended by strik14 ing the second sentence. 

15 (b) TECHNICAL AMENDMENT.—Clause (v) of section 

16 42(d)(5)(B) of the Internal Revenue Code of 1986, as 

17 amended by subsection (a), is further amended— 

18 (1) by striking ‘‘STATE’’ in the heading, and 

19 (2) by striking ‘‘State housing credit agency’’ 

20 and inserting ‘‘housing credit agency’’. 

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

22 this section shall apply to buildings which receive a deter23 mination of housing credit dollar amount after the date 

24 of the enactment of this Act. 


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1 SEC. 311. ELIMINATION OF BASIS REDUCTION FOR LOW-IN2 COME HOUSING PROPERTIES RECEIVING 

3 CERTAIN ENERGY BENEFITS. 

4 (a) NEW ENERGY EFFICIENT HOME CREDIT.—Sub5 section (e) of section 45L of the Internal Revenue Code 

6 of 1986 is amended— 

7 (1) by striking ‘‘ADJUSTMENT.—For purposes’’ 

8 and inserting ‘‘ADJUSTMENT.— 

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

10 (2) by adding at the end the following new 

11 paragraph: 

12 ‘‘(2) EXCEPTION FOR AFFORDABLE HOUSING

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

14 purposes of determining eligible basis under section 

15 42.’’. 

16 (b) ENERGY EFFICIENT COMMERCIAL BUILDINGS

17 DEDUCTION.—Subsection (e) of section 179D of the In18 ternal Revenue Code of 1986 is amended— 

19 (1) by striking ‘‘REDUCTION.—For purposes’’ 

20 and inserting ‘‘REDUCTION.— 

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

22 (2) by adding at the end the following new 

23 paragraph: 

24 ‘‘(2) EXCEPTION FOR AFFORDABLE HOUSING

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


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1 purposes of determining eligible basis under section 

2 42.’’. 

3 (c) ENERGY CREDIT.—Paragraph (3) of section 

4 50(c) of the Internal Revenue Code of 1986 is amended— 

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (A), 

7 (2) by striking the period at the end of sub8 paragraph (B) and inserting ‘‘, and’’, and 

9 (3) by adding at the end the following new sub10 paragraph: 

11 ‘‘(C) paragraph (1) shall not apply for pur12 poses of determining eligible basis under section 

13 42.’’. 

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

15 this section shall apply to buildings which receive alloca16 tions of housing credit dollar amount or, in the case of 

17 projects financed by tax-exempt bonds as described in sec18 tion 42(h)(4) of the Internal Revenue Code of 1986, which 

19 receive a determination of housing credit dollar amount, 

20 after the date of the enactment of this Act. 

21 SEC. 312. RESTRICTION OF PLANNED FORECLOSURES. 

22 (a) IN GENERAL.—Subclause (I) of section 

23 42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is 

24 amended to read as follows: 


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1 ‘‘(I) on the 61st day after the 

2 taxpayer (or a successor in interest) 

3 provides notice to the Secretary and 

4 the housing credit agency that the 

5 building has been acquired by fore6 closure (or instrument in lieu of fore7 closure) and that the taxpayer intends 

8 the termination of such period, unless, 

9 before such date, the Secretary or the 

10 housing credit agency determines that 

11 such acquisition is part of an arrange12 ment with the taxpayer a purpose of 

13 which is to terminate such period, 

14 or’’. 

15 (b) CONFORMING AMENDMENT.—The second sen16 tence of clause (i) of section 42(h)(6)(E) of the Internal 

17 Revenue Code of 1986 is amended by striking ‘‘Subclause 

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

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall apply to acquisitions by foreclosure (or 

21 instrument in lieu of foreclosure) after December 31, 

22 2018. 


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1 SEC. 313. INCREASE OF POPULATION CAP FOR DIFFICULT 

2 DEVELOPMENT AREAS. 

3 (a) IN GENERAL.—Subclause (II) of section 

4 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 

5 amended by striking ‘‘20 percent’’ and inserting ‘‘30 per6 cent’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section shall apply to designations made under section 

9 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 

10 after December 31, 2019. 

11 SEC. 314. INCREASED COST OVERSIGHT AND ACCOUNT12 ABILITY. 

13 (a) IN GENERAL.—Subparagraph (C) of section 

14 42(m)(1) of the Internal Revenue Code of 1986 is amend15 ed by striking ‘‘and’’ at the end of clause (ix), by striking 

16 the period at the end of clause (x) and inserting ‘‘, and’’, 

17 and by adding at the end the following new clause: 

18 ‘‘(xi) the reasonableness of the devel19 opment costs of the project.’’. 

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

21 this section shall apply to allocations of credits under sec22 tion 42 of the Internal Revenue Code of 1986 made after 

23 December 31, 2019. 


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1 TITLE IV—REFORMS RELATING 

2 TO NATIVE AMERICAN AS3 SISTANCE 

4 SEC. 401. SELECTION CRITERIA UNDER QUALIFIED ALLO5 CATION PLANS. 

6 (a) IN GENERAL.—Subparagraph (C) of section 

7 42(m)(1) of the Internal Revenue Code of 1986, as 

8 amended by section 314, is amended— 

9 (1) by striking ‘‘and’’ at the end of clause (x), 

10 by striking the period at the end of clause (xi) and 

11 inserting ‘‘, and’’, and by adding at the end the fol12 lowing new clause: 

13 ‘‘(xii) the affordable housing needs of 

14 individuals in the State who are enrolled 

15 members of a tribe with respect to an In16 dian tribal government.’’, and 

17 (2) by adding at the end the following flush 

18 sentence: 

19 ‘‘For purposes of clause (xii), the term ‘Indian 

20 tribal government’ includes any agencies or in21 strumentalities of an Indian tribal government 

22 and any Alaska Native regional or village cor23 poration, as defined in, or established pursuant 

24 to, the Alaska Native Claims Settlement Act 

25 (43 U.S.C. 1601 et seq.).’’. 


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

2 this section shall apply to allocations of credits under sec3 tion 42 of the Internal Revenue Code of 1986 made after 

4 December 31, 2019. 

5 SEC. 402. INCLUSION OF INDIAN AREAS AS DIFFICULT DE6 VELOPMENT AREAS FOR PURPOSES OF CER7 TAIN BUILDINGS. 

8 (a) IN GENERAL.—Subclause (I) of section 

9 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 

10 amended by inserting before the period the following: ‘‘, 

11 and any Indian area’’. 

12 (b) INDIAN AREA.—Clause (iii) of section 

13 42(d)(5)(B) of the Internal Revenue Code of 1986 is 

14 amended by redesignating subclause (II) as subclause 

15 (III) and by inserting after subclause (I) the following new 

16 subclause: 

17 ‘‘(II) INDIAN AREA.—For pur18 poses of subclause (I), the term ‘In19 dian area’ means any Indian area (as 

20 defined in section 4(11) of the Native 

21 American Housing Assistance and 

22 Self Determination Act of 1996 (25 

23 U.S.C. 4103(11))).’’. 

24 (c) ELIGIBLE BUILDINGS.—Clause (iii) of section 

25 42(d)(5)(B) of the Internal Revenue Code of 1986, as 


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1 amended by subsection (b), is amended by adding at the 

2 end the following new subclause: 

3 ‘‘(IV) SPECIAL RULE FOR BUILD4 INGS IN INDIAN AREAS.—In the case 

5 of an area which is a difficult develop6 ment area solely because it is an In7 dian area, a building shall not be 

8 treated as located in such area unless 

9 such building is assisted or financed 

10 under the Native American Housing 

11 Assistance and Self Determination 

12 Act of 1996 (25 U.S.C. 4101 et seq.) 

13 or the project sponsor is an Indian 

14 tribe (as defined in section 

15 45A(c)(6)), a tribally designated hous16 ing entity (as defined in section 4(22) 

17 of such Act (25 U.S.C. 4103(22))), or 

18 wholly owned or controlled by such an 

19 Indian tribe or tribally designated 

20 housing entity.’’. 

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

22 this section shall apply to buildings placed in service after 

23 December 31, 2019. 


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1 TITLE V—REFORMS RELATING 

2 TO RURAL ASSISTANCE 

3 SEC. 501. INCLUSION OF RURAL AREAS AS DIFFICULT DE4 VELOPMENT AREAS. 

5 (a) IN GENERAL.—Subclause (I) of section 

6 42(d)(5)(B)(iii) of the Internal Revenue Code of 1986, as 

7 amended by section 402, is amended by inserting ‘‘, any 

8 rural area’’ after ‘‘median gross income’’. 

9 (b) RURAL AREA.—Clause (iii) of section 

10 42(d)(5)(B) of the Internal Revenue Code of 1986, as 

11 amended by section 402, is further amended by redesig12 nating subclause (III) as subclause (IV) and by inserting 

13 after subclause (II) the following new subclause: 

14 ‘‘(III) RURAL AREA.—For pur15 poses of subclause (I), the term ‘rural 

16 area’ means any non-metropolitan 

17 area, or any rural area as defined by 

18 section 520 of the Housing Act of 

19 1949, which is identified by the quali20 fied allocation plan under subsection 

21 (m)(1)(B).’’. 

22 (c) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to buildings placed in service after 

24 December 31, 2019. 


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1 SEC. 502. UNIFORM INCOME ELIGIBILITY FOR RURAL 

2 PROJECTS. 

3 (a) IN GENERAL.—Paragraph (8) of section 42(i) of 

4 the Internal Revenue Code of 1986 is amended by striking 

5 the second sentence. 

6 (b) EFFECTIVE DATE.—The amendment made by 

7 this section shall apply to taxable years beginning after 

8 December 31, 2018. 

9 TITLE VI—EXEMPT FACILITY 

10 BONDS 

11 SEC. 601. REVISION AND CLARIFICATION OF THE TREAT12 MENT OF REFUNDING ISSUES. 

13 (a) IN GENERAL.—Subparagraph (A) of section 

14 146(i)(6) of the Internal Revenue Code of 1986 is amend15 ed to read as follows: 

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

17 period beginning on the date of a repayment of 

18 a loan financed by an issue 95 percent or more 

19 of the net proceeds of which are used to provide 

20 projects described in section 142(d), if such re21 payment is used to provide a new loan for any 

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

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

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

25 to refinance such issue shall be treated as a re26 funding issue. Any issue treated as a refunding 


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1 issue by reason of the preceding sentence shall 

2 be so treated only to the extent the principal 

3 amount of such refunding issue does not exceed 

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

5 (b) REMOVAL OF ONE-REFUNDING LIMIT.—Sub6 paragraph (B) of section 146(i)(6) of the Internal Rev7 enue Code of 1986 is amended— 

8 (1) by striking ‘‘4 years’’ in clause (i) and in9 serting ‘‘10 years’’, 

10 (2) by striking ‘‘was issued’’ in clause (ii) and 

11 inserting ‘‘is issued’’, 

12 (3) by redesignating clauses (i) (as so amend13 ed), (ii) (as so amended), and (iii) as subclauses (I), 

14 (II), and (III), respectively, and by moving such sub15 clauses 2 ems to the right, 

16 (4) by striking ‘‘LIMITATIONS.—Subparagraph 

17 (A) shall apply to only one refunding of the original 

18 issue and’’ and inserting ‘‘LIMITATIONS.— 

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

20 shall apply to a bond’’, and 

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

22 clause: 

23 ‘‘(ii) SOURCE OF LOAN REPAY24 MENT.—Subparagraph (A) shall not apply 

25 to any repayment of a loan which is— 


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1 ‘‘(I) made by a repayment of an2 other loan, or 

3 ‘‘(II) financed by an issue treated 

4 as a refunding issue under subpara5 graph (A).’’. 

6 (c) CONFORMING AMENDMENT.—The heading of 

7 paragraph (6) of section 146(i) of the Internal Revenue 

8 Code of 1986 is amended by striking ‘‘RESIDENTIAL

9 RENTAL PROJECT BONDS AS REFUNDING BONDS IRRE10 SPECTIVE OF OBLIGOR’’ and inserting ‘‘BONDS AS RE11 FUNDING BONDS’’. 

12 (d) EFFECTIVE DATES.— 

13 (1) IN GENERAL.—The amendments made by 

14 subsections (a) and (c) shall apply to obligations 

15 issued on or after the date of the enactment of this 

16 Act. 

17 (2) REMOVAL OF ONE-REFUNDING LIMIT.—The 

18 amendments made by subsection (b) shall apply to 

19 repayments of loans received after July 30, 2008. 

20 TITLE VII—AFFORDABLE 

21 HOUSING TAX CREDIT 

22 SEC. 701. AFFORDABLE HOUSING TAX CREDIT. 

23 (a) IN GENERAL.—The heading of section 42 of the 

24 Internal Revenue Code of 1986 is amended by striking 

25 ‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 


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1 (b) CONFORMING AMENDMENTS.— 

2 (1) Subsection (a) of section 42 of the Internal 

3 Revenue Code of 1986 is amended by striking ‘‘low4 income’’ and inserting ‘‘affordable’’. 

5 (2) Paragraph (5) of section 38(b) of such Code 

6 is amended by striking ‘‘low-income’’ and inserting 

7 ‘‘affordable’’. 

8 (3) The heading of subparagraph (D) of section 

9 469(i)(3) of such Code is amended by striking 

10 ‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 

11 (4) The heading of subparagraph (B) of section 

12 469(i)(6) of such Code is amended by striking 

13 ‘‘LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 

14 (5) Paragraph (7) of section 772(a) of such 

15 Code is amended by striking ‘‘low-income’’ and in16 serting ‘‘affordable’’. 

17 (6) Paragraph (5) of section 772(d) of such 

18 Code is amended by striking ‘‘low-income’’ and in19 serting ‘‘affordable’’. 

20 (c) CLERICAL AMENDMENT.—The item relating to 

21 section 42 in the table of sections for subpart D of part 

22 IV of subchapter A of chapter 1 of the Internal Revenue 

23 Code of 1986 is amended to read as follows: 

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

Æ 


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