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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4181 Introduced in Senate (IS)]

<DOC>

117th CONGRESS
  2d Session
                                S. 4181

To amend title VI of the Social Security Act to allow coronavirus State 
   and local fiscal recovery funds to be used for low-income housing 
                            credit projects.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                 May 11 (legislative day, May 10), 2022

Mr. Leahy (for himself, Ms. Collins, Mr. Wyden, Mr. Bennet, Ms. Cortez 
 Masto, Mr. King, Ms. Hassan, Mr. Padilla, Mr. Reed, Mr. Sanders, and 
Mr. Whitehouse) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
To amend title VI of the Social Security Act to allow coronavirus State 
   and local fiscal recovery funds to be used for low-income housing 
                            credit projects.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``LIHTC Financing Enabling Long-term 
Investment in Neighborhood Excellence Act'' or the ``LIFELINE Act''.

SEC. 2. AUTHORITY TO USE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY 
              FUNDS FOR LOW-INCOME HOUSING CREDIT PROJECTS.

    (a) In General.--Title VI of the Social Security Act (42 U.S.C. 801 
et seq.) is amended--
            (1) in section 602--
                    (A) in subsection (a)(1), by inserting ``(except as 
                provided in subsection (c)(5))'' after ``December 31, 
                2024''; and
                    (B) in subsection (c)--
                            (i) in paragraph (1), in the matter 
                        preceding subparagraph (A), by striking 
                        ``paragraph (3)'' and inserting ``paragraphs 
                        (3), (4), and (5)''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(5) Use of funds for low-income housing credit 
        projects.--
                    ``(A) In general.--A State, territory, or Tribal 
                government, in consultation with a housing finance 
                agency, may use funds provided under this section to 
                finance the cost of construction of 1 or more new 
                qualified low-income buildings (as defined in section 
                42(c)(2) of the Internal Revenue Code of 1986), or the 
                cost of rehabilitation expenditures (as defined in 
                section 42(e)(2) of such Code), which are expected to 
                be eligible for the low-income housing credit under 
                section 42 of such Code in an amount greater than $0, 
                including credits described in subsection (h)(4) 
                thereof. The financing permitted by the preceding 
                sentence must be provided by loans having maturities of 
                30 or more years, with such buildings having a placed 
                in service date that is no earlier than the date of 
                enactment of this paragraph. Funds provided under this 
                section to finance such buildings must be obligated by 
                December 31, 2024, and expended by December 31, 2026. 
                Any amount loaned in accordance with this subparagraph 
                shall be considered expended in accordance with the 
                requirements of this subsection.
                    ``(B) Requirements.--The project sponsor of a 
                building financed in whole or in part by loans for 
                which financing is permitted under this paragraph shall 
                agree, as a condition for accepting such a loan--
                            ``(i) to waive any right to request a 
                        qualified contract (as defined in section 
                        42(h)(6)(F) of the Internal Revenue Code of 
                        1986); and
                            ``(ii) to repay any loaned funds to the 
                        entity that originated the loan at the time the 
                        project of which the building is a part becomes 
                        non-compliant, including if such project ceases 
                        to satisfy the requirements to be considered a 
                        qualified low-income housing project (as 
                        defined in section 42(g) of the Internal 
                        Revenue Code) or a qualified residential rental 
                        project (as defined in section 142(d) of such 
                        Code), or if such project fails to comply with 
                        an extended low-income housing commitment (as 
                        defined in section 42(h)(6) of such Code).
                    ``(C) Returned or repaid funds.--Any funds used by 
                a State, territory, or Tribal government in accordance 
                with subparagraph (A) that are returned to the State, 
                territory, or Tribal government, including from loan 
                repayment, shall be used to finance affordable housing, 
                including buildings that are eligible for low-income 
                housing credits under section 42(a) of the Internal 
                Revenue Code of 1986 by virtue of being part of 1 or 
                more qualified low-income housing projects (as defined 
                in section 42(g) of such Code), or being part of 1 or 
                more qualified residential rental projects (as defined 
                in section 142(d) of such Code).
                    ``(D) Reports.--
                            ``(i) Annual reports on lihtc project 
                        obligations.--During the period beginning on 
                        the date of enactment of this paragraph and 
                        ending on December 31, 2026, the Secretary 
                        shall provide annual reports to the Committee 
                        on Ways and Means of the House of 
                        Representatives, the Committee on Oversight and 
                        Reform of the House of Representatives, the 
                        Committee on Appropriations of the House of 
                        Representatives, the Committee on Finance of 
                        the Senate, and the Committee on Appropriations 
                        of the Senate on the obligation and expenditure 
                        of funds for projects under this paragraph.
                            ``(ii) Annual reports on lihtc project 
                        loans.--For each year during the term of an 
                        initial loan financed by funds made available 
                        under this paragraph is outstanding, the 
                        Secretary shall provide an annual report to 
                        each of the committees identified in clause (i) 
                        on any repayment of such funds.''; and
            (2) in section 603--
                    (A) in subsection (a), by inserting ``(except as 
                provided in subsection (c)(6))'' after ``December 31, 
                2024''; and
                    (B) in subsection (c)--
                            (i) in paragraph (1), in the matter 
                        preceding subparagraph (A), by striking 
                        ``paragraphs (3) and (4)'' and inserting 
                        ``paragraphs (3), (4), (5), and (6)''; and
                            (ii) by adding at the end the following new 
                        paragraph:
            ``(6) Use of funds for low-income housing credit 
        projects.--
                    ``(A) In general.--A metropolitan city, 
                nonentitlement unit of local government, or county, in 
                consultation with a housing finance agency, may use 
                funds provided under this section to finance the cost 
                of construction of 1 or more new qualified low-income 
                buildings (as defined in section 42(c)(2) of the 
                Internal Revenue Code of 1986), or the cost of 
                rehabilitation expenditures (as defined in section 
                42(e)(2) of such Code), which are expected to be 
                eligible for the low-income housing credit under 
                section 42 of such Code in an amount greater than $0, 
                including credits described in subsection (h)(4) 
                thereof. The financing permitted by the preceding 
                sentence must be provided by loans having maturities of 
                30 or more years, with such buildings having a placed 
                in service date that is no earlier than the date of 
                enactment of this paragraph. Funds provided under this 
                section to finance such buildings must be obligated by 
                December 31, 2024, and expended by December 31, 2026. 
                Any amount loaned in accordance with this subparagraph 
                shall be considered expended in accordance with the 
                requirements of this subsection.
                    ``(B) Requirements.--The project sponsor of a 
                building financed in whole or in part by loans for 
                which financing is permitted under this paragraph shall 
                agree, as a condition for accepting such a loan--
                            ``(i) to waive any right to request a 
                        qualified contract (as defined in section 
                        42(h)(6)(F) of the Internal Revenue Code of 
                        1986); and
                            ``(ii) to repay any loaned funds to the 
                        entity that originated the loan at the time the 
                        project of which the building is a part becomes 
                        non-compliant, including if such project ceases 
                        to satisfy the requirements to be considered a 
                        qualified low-income housing project (as 
                        defined in section 42(g) of the Internal 
                        Revenue Code) or a qualified residential rental 
                        project (as defined in section 142(d) of such 
                        Code), or if such project fails to comply with 
                        an extended low-income housing commitment (as 
                        defined in section 42(h)(6) of such Code).
                    ``(C) Returned or repaid funds.--Any funds used by 
                a metropolitan city, nonentitlement unit of local 
                government, or county in accordance with subparagraph 
                (A) that are returned to the metropolitan city, 
                nonentitlement unit of local government, or county, 
                including from loan repayment, shall be used to finance 
                affordable housing, including buildings that are 
                eligible for low-income housing credits under section 
                42(a) of the Internal Revenue Code of 1986 by virtue of 
                being part of 1 or more qualified low-income housing 
                projects (as defined in section 42(g) of such Code), or 
                being part of 1 or more qualified residential rental 
                projects (as defined in section 142(d) of such Code).
                    ``(D) Reports.--
                            ``(i) Annual reports on lihtc project 
                        obligations.--During the period beginning on 
                        the date of enactment of this paragraph and 
                        ending on December 31, 2026, the Secretary 
                        shall provide annual reports to the Committee 
                        on Ways and Means of the House of 
                        Representatives, the Committee on Oversight and 
                        Reform of the House of Representatives, the 
                        Committee on Appropriations of the House of 
                        Representatives, the Committee on Finance of 
                        the Senate, and the Committee on Appropriations 
                        of the Senate on the obligation and expenditure 
                        of funds for projects under this paragraph.
                            ``(ii) Annual reports on lihtc project 
                        loans.--For each year during the term of an 
                        initial loan financed by funds made available 
                        under this paragraph is outstanding, the 
                        Secretary shall provide an annual report to 
                        each of the committees identified in clause (i) 
                        on any repayment of such funds.''.
    (b) Technical Amendments.--Sections 602(c)(3) and 603(c)(3) of 
title VI of the Social Security Act (42 U.S.C. 802(c)(3), 803(c)(3)) 
are each amended by striking ``paragraph (17) of''.
                                 <all>
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