II 

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. 

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 ‘‘LIHTC Financing En5 abling Long-term Investment in Neighborhood Excellence 

6 Act’’ or the ‘‘LIFELINE Act’’. 


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1 SEC. 2. AUTHORITY TO USE CORONAVIRUS STATE AND 

2 LOCAL FISCAL RECOVERY FUNDS FOR LOW3 INCOME HOUSING CREDIT PROJECTS. 

4 (a) IN GENERAL.—Title VI of the Social Security Act 

5 (42 U.S.C. 801 et seq.) is amended— 

6 (1) in section 602— 

7 (A) in subsection (a)(1), by inserting ‘‘(ex8 cept as provided in subsection (c)(5))’’ after 

9 ‘‘December 31, 2024’’; and 

10 (B) in subsection (c)— 

11 (i) in paragraph (1), in the matter 

12 preceding subparagraph (A), by striking 

13 ‘‘paragraph (3)’’ and inserting ‘‘para14 graphs (3), (4), and (5)’’; and 

15 (ii) by adding at the end the following 

16 new paragraph: 

17 ‘‘(5) USE OF FUNDS FOR LOW-INCOME HOUS18 ING CREDIT PROJECTS.— 

19 ‘‘(A) IN GENERAL.—A State, territory, or 

20 Tribal government, in consultation with a hous21 ing finance agency, may use funds provided 

22 under this section to finance the cost of con23 struction of 1 or more new qualified low-income 

24 buildings (as defined in section 42(c)(2) of the 

25 Internal Revenue Code of 1986), or the cost of 

26 rehabilitation expenditures (as defined in secVerDate Sep 11 2014 04:33 May 12, 2022 Jkt 000000 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S4181.IS S4181

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1 tion 42(e)(2) of such Code), which are expected 

2 to be eligible for the low-income housing credit 

3 under section 42 of such Code in an amount 

4 greater than $0, including credits described in 

5 subsection (h)(4) thereof. The financing per6 mitted by the preceding sentence must be pro7 vided by loans having maturities of 30 or more 

8 years, with such buildings having a placed in 

9 service date that is no earlier than the date of 

10 enactment of this paragraph. Funds provided 

11 under this section to finance such buildings 

12 must be obligated by December 31, 2024, and 

13 expended by December 31, 2026. Any amount 

14 loaned in accordance with this subparagraph 

15 shall be considered expended in accordance with 

16 the requirements of this subsection. 

17 ‘‘(B) REQUIREMENTS.—The project spon18 sor of a building financed in whole or in part 

19 by loans for which financing is permitted under 

20 this paragraph shall agree, as a condition for 

21 accepting such a loan— 

22 ‘‘(i) to waive any right to request a 

23 qualified contract (as defined in section 

24 42(h)(6)(F) of the Internal Revenue Code 

25 of 1986); and 


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1 ‘‘(ii) to repay any loaned funds to the 

2 entity that originated the loan at the time 

3 the project of which the building is a part 

4 becomes non-compliant, including if such 

5 project ceases to satisfy the requirements 

6 to be considered a qualified low-income 

7 housing project (as defined in section 

8 42(g) of the Internal Revenue Code) or a 

9 qualified residential rental project (as de10 fined in section 142(d) of such Code), or if 

11 such project fails to comply with an ex12 tended low-income housing commitment 

13 (as defined in section 42(h)(6) of such 

14 Code). 

15 ‘‘(C) RETURNED OR REPAID FUNDS.—Any 

16 funds used by a State, territory, or Tribal gov17 ernment in accordance with subparagraph (A) 

18 that are returned to the State, territory, or 

19 Tribal government, including from loan repay20 ment, shall be used to finance affordable hous21 ing, including buildings that are eligible for low22 income housing credits under section 42(a) of 

23 the Internal Revenue Code of 1986 by virtue of 

24 being part of 1 or more qualified low-income 

25 housing projects (as defined in section 42(g) of 


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1 such Code), or being part of 1 or more qualified 

2 residential rental projects (as defined in section 

3 142(d) of such Code). 

4 ‘‘(D) REPORTS.— 

5 ‘‘(i) ANNUAL REPORTS ON LIHTC

6 PROJECT OBLIGATIONS.—During the pe7 riod beginning on the date of enactment of 

8 this paragraph and ending on December 

9 31, 2026, the Secretary shall provide an10 nual reports to the Committee on Ways 

11 and Means of the House of Representa12 tives, the Committee on Oversight and Re13 form of the House of Representatives, the 

14 Committee on Appropriations of the House 

15 of Representatives, the Committee on Fi16 nance of the Senate, and the Committee on 

17 Appropriations of the Senate on the obliga18 tion and expenditure of funds for projects 

19 under this paragraph. 

20 ‘‘(ii) ANNUAL REPORTS ON LIHTC

21 PROJECT LOANS.—For each year during 

22 the term of an initial loan financed by 

23 funds made available under this paragraph 

24 is outstanding, the Secretary shall provide 

25 an annual report to each of the committees 


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1 identified in clause (i) on any repayment of 

2 such funds.’’; and 

3 (2) in section 603— 

4 (A) in subsection (a), by inserting ‘‘(except 

5 as provided in subsection (c)(6))’’ after ‘‘De6 cember 31, 2024’’; and 

7 (B) in subsection (c)— 

8 (i) in paragraph (1), in the matter 

9 preceding subparagraph (A), by striking 

10 ‘‘paragraphs (3) and (4)’’ and inserting 

11 ‘‘paragraphs (3), (4), (5), and (6)’’; and 

12 (ii) by adding at the end the following 

13 new paragraph: 

14 ‘‘(6) USE OF FUNDS FOR LOW-INCOME HOUS15 ING CREDIT PROJECTS.— 

16 ‘‘(A) IN GENERAL.—A metropolitan city, 

17 nonentitlement unit of local government, or 

18 county, in consultation with a housing finance 

19 agency, may use funds provided under this sec20 tion to finance the cost of construction of 1 or 

21 more new qualified low-income buildings (as de22 fined in section 42(c)(2) of the Internal Rev23 enue Code of 1986), or the cost of rehabilita24 tion expenditures (as defined in section 42(e)(2) 

25 of such Code), which are expected to be eligible 


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1 for the low-income housing credit under section 

2 42 of such Code in an amount greater than $0, 

3 including credits described in subsection (h)(4) 

4 thereof. The financing permitted by the pre5 ceding sentence must be provided by loans hav6 ing maturities of 30 or more years, with such 

7 buildings having a placed in service date that is 

8 no earlier than the date of enactment of this 

9 paragraph. Funds provided under this section 

10 to finance such buildings must be obligated by 

11 December 31, 2024, and expended by December 

12 31, 2026. Any amount loaned in accordance 

13 with this subparagraph shall be considered ex14 pended in accordance with the requirements of 

15 this subsection. 

16 ‘‘(B) REQUIREMENTS.—The project spon17 sor of a building financed in whole or in part 

18 by loans for which financing is permitted under 

19 this paragraph shall agree, as a condition for 

20 accepting such a loan— 

21 ‘‘(i) to waive any right to request a 

22 qualified contract (as defined in section 

23 42(h)(6)(F) of the Internal Revenue Code 

24 of 1986); and 


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1 ‘‘(ii) to repay any loaned funds to the 

2 entity that originated the loan at the time 

3 the project of which the building is a part 

4 becomes non-compliant, including if such 

5 project ceases to satisfy the requirements 

6 to be considered a qualified low-income 

7 housing project (as defined in section 

8 42(g) of the Internal Revenue Code) or a 

9 qualified residential rental project (as de10 fined in section 142(d) of such Code), or if 

11 such project fails to comply with an ex12 tended low-income housing commitment 

13 (as defined in section 42(h)(6) of such 

14 Code). 

15 ‘‘(C) RETURNED OR REPAID FUNDS.—Any 

16 funds used by a metropolitan city, nonentitle17 ment unit of local government, or county in ac18 cordance with subparagraph (A) that are re19 turned to the metropolitan city, nonentitlement 

20 unit of local government, or county, including 

21 from loan repayment, shall be used to finance 

22 affordable housing, including buildings that are 

23 eligible for low-income housing credits under 

24 section 42(a) of the Internal Revenue Code of 

25 1986 by virtue of being part of 1 or more qualiVerDate Sep 11 2014 04:33 May 12, 2022 Jkt 000000 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S4181.IS S4181

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1 fied low-income housing projects (as defined in 

2 section 42(g) of such Code), or being part of 1 

3 or more qualified residential rental projects (as 

4 defined in section 142(d) of such Code). 

5 ‘‘(D) REPORTS.— 

6 ‘‘(i) ANNUAL REPORTS ON LIHTC

7 PROJECT OBLIGATIONS.—During the pe8 riod beginning on the date of enactment of 

9 this paragraph and ending on December 

10 31, 2026, the Secretary shall provide an11 nual reports to the Committee on Ways 

12 and Means of the House of Representa13 tives, the Committee on Oversight and Re14 form of the House of Representatives, the 

15 Committee on Appropriations of the House 

16 of Representatives, the Committee on Fi17 nance of the Senate, and the Committee on 

18 Appropriations of the Senate on the obliga19 tion and expenditure of funds for projects 

20 under this paragraph. 

21 ‘‘(ii) ANNUAL REPORTS ON LIHTC

22 PROJECT LOANS.—For each year during 

23 the term of an initial loan financed by 

24 funds made available under this paragraph 

25 is outstanding, the Secretary shall provide 


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1 an annual report to each of the committees 

2 identified in clause (i) on any repayment of 

3 such funds.’’. 

4 (b) TECHNICAL AMENDMENTS.—Sections 602(c)(3) 

5 and 603(c)(3) of title VI of the Social Security Act (42 

6 U.S.C. 802(c)(3), 803(c)(3)) are each amended by striking 

7 ‘‘paragraph (17) of’’. 

Æ 


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