I 

113TH CONGRESS 

2D SESSION H. R. 5198 

To amend the Internal Revenue Code of 1986 to provide an appeal process 

for designation as qualified census tracts and difficult development areas 

under the low-income housing credit. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2014 

Mr. GALLEGO introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

an appeal process for designation as qualified census 

tracts and difficult development areas under the lowincome housing credit. 

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


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1 SECTION 1. APPEAL PROCESS FOR DESIGNATION AS 

2 QUALIFIED CENSUS TRACTS AND DIFFICULT 

3 DEVELOPMENT AREAS UNDER THE LOW-IN4 COME HOUSING CREDIT. 

5 (a) IN GENERAL.—Section 42(d)(5) of the Internal 

6 Revenue Code of 1986 is amended by adding at the end 

7 the following new subparagraph: 

8 ‘‘(C) APPEAL OF QUALIFIED CENSUS

9 TRACT AND DIFFICULT DEVELOPMENT AREA

10 DESIGNATIONS.— 

11 ‘‘(i) IN GENERAL.—Any State or local 

12 government agency may petition the Sec13 retary of Housing and Urban Development 

14 to review such Secretary’s designation (or 

15 failure to designate) for any area within 

16 such agency’s jurisdiction as a qualified 

17 census tract or difficult development area 

18 by filing an appeal with such Secretary 

19 during the 120-day period beginning on 

20 the date that such Secretary publishes the 

21 list of qualified census tracts and difficult 

22 development areas for the calendar year. 

23 ‘‘(ii) APPLICATION OF POPULATION

24 LIMITATION.—If a designation is made 

25 pursuant to an appeal under clause (i) and 

26 such designation would (without regard to 


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1 this clause) result in a violation of the limi2 tation imposed under clause (ii)(II) or 

3 (iii)(II) of subparagraph (B) with respect 

4 to the relevant metropolitan statistical 

5 area, then the Secretary of Housing and 

6 Urban Development shall conduct a review 

7 of all of the qualified census tract or dif8 ficult development area designations in 

9 such metropolitan statistical area. If, after 

10 making any additional designations, or rev11 ocation of designations as a result of such 

12 review, such limitation is still exceeded, the 

13 census tract which is the subject of the ap14 peal and such additional designations shall 

15 be substituted for so many of the last 

16 areas designated when such Secretary 

17 made its annual review and determination 

18 as is necessary to comply with such limita19 tions. 

20 ‘‘(iii) RETROACTIVE APPLICATION OF

21 CORRECTIONS.—Any designation, or rev22 ocation of designation, under clause (i) or 

23 (ii) with respect to any appeal shall be 

24 valid retroactive to the beginning of the 

25 calendar year to which the appeal relates. 


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1 ‘‘(iv) PETITION WITH RESPECT TO

2 CENSUS BLOCK GROUPS.—Any landowner 

3 whose property is located within a census 

4 block group or equivalent geographic area 

5 defined by the Bureau of the Census that 

6 meets the criteria for designation of a 

7 qualified census tract can petition the Sec8 retary of Housing and Urban Develop9 ment, and upon verification by such Sec10 retary that such area meets such criteria, 

11 such Secretary shall designate such area as 

12 a qualified census tract. Subparagraph 

13 (B)(ii)(II) shall be applied without regard 

14 to any area designated under this clause.’’. 

Æ 


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