II 

116TH CONGRESS 

1ST SESSION S. 1956 

To amend the Internal Revenue Code of 1986 to repeal the qualified contract 

exception to the extended low-income housing commitment rules for purposes of the low-income housing credit, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 25, 2019 

Mr. WYDEN (for himself, Mr. YOUNG, Mr. CARDIN, and Mr. BROWN) 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 repeal 

the qualified contract exception to the extended lowincome housing commitment rules for purposes of 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. 

4 This Act may be cited as the ‘‘Save Affordable Hous5 ing Act of 2019’’. 

6 SEC. 2. REPEAL OF QUALIFIED CONTRACT OPTION. 

7 (a) TERMINATION OF OPTION FOR CERTAIN BUILD8 INGS.— 


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•S 1956 IS

1 (1) IN GENERAL.—Subclause (II) of section 

2 42(h)(6)(E)(i) of the Internal Revenue Code of 1986 

3 is amended by inserting ‘‘in the case of a building 

4 described in clause (iii),’’ before ‘‘on the last day’’. 

5 (2) BUILDINGS DESCRIBED.—Subparagraph 

6 (E) of section 42(h)(6) of such Code is amended by 

7 adding at the end the following new clause: 

8 ‘‘(iii) BUILDINGS DESCRIBED.—A 

9 building described in this clause is a build10 ing— 

11 ‘‘(I) which received its allocation 

12 of housing credit dollar amount before 

13 January 1, 2019, or 

14 ‘‘(II) in the case of a building 

15 any portion of which is financed as 

16 described in paragraph (4), which re17 ceived before January 1, 2019, a de18 termination from the issuer of the 

19 tax-exempt bonds or the housing cred20 it agency that the building is eligible 

21 to receive an allocation of housing 

22 credit dollar amount under the rules 

23 of paragraphs (1) and (2) of sub24 section (m).’’. 


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•S 1956 IS

1 (b) RULES RELATING TO EXISTING PROJECTS.— 

2 Subparagraph (F) of section 42(h)(6) of the Internal Rev3 enue Code of 1986 is amended by striking ‘‘the nonlow4 income portion’’ and all that follows and inserting ‘‘the 

5 nonlow-income portion and the low-income portion of the 

6 building for fair market value (determined by the housing 

7 credit agency by taking into account the rent restrictions 

8 required for the low-income portion of the building to con9 tinue to meet the standards of paragraphs (1) and (2) of 

10 subsection (g)). The Secretary shall prescribe such regula11 tions as may be necessary or appropriate to carry out this 

12 paragraph.’’. 

13 (c) CONFORMING AMENDMENTS.— 

14 (1) Paragraph (6) of section 42(h) of the Inter15 nal Revenue Code of 1986 is amended by striking 

16 subparagraph (G) and by redesignating subpara17 graphs (H), (I), (J), and (K) as subparagraphs (G), 

18 (H), (I), and (J), respectively. 

19 (2) Subclause (II) of section 42(h)(6)(E)(i) of 

20 such Code, as amended by subsection (a), is further 

21 amended by striking ‘‘subparagraph (I)’’ and insert22 ing ‘‘subparagraph (H)’’. 

23 (d) TECHNICAL AMENDMENT.—Subparagraph (I) of 

24 section 42(h)(6) of the Internal Revenue Code of 1986, 


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•S 1956 IS

1 as redesignated by subsection (c), is amended by striking 

2 ‘‘agreement’’ and inserting ‘‘commitment’’. 

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

4 this section shall apply to buildings with respect to which 

5 a written request described in section 42(h)(6)(H) of the 

6 Internal Revenue Code of 1986 is submitted after the date 

7 of the enactment of this Act. 

Æ 


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