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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1619 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H.R. 1619

   To amend the Internal Revenue Code of 1986 to make the low-income 
housing credit permanent and to facilitate the rehabilitation of public 
                       housing using such credit.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1993

   Mrs. Collins of Illinois 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 make the low-income 
housing credit permanent and to facilitate the rehabilitation of public 
                       housing using such credit.

    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 ``Public Housing Rehabilitation Equity 
Act''.

SEC. 2. LOW INCOME HOUSING CREDIT MADE PERMANENT.

    Subsection (o) of section 42 of the Internal Revenue Code of 1986 
(relating to termination of low-income housing credit) is hereby 
repealed.

SEC. 3. HOUSING CREDIT AVAILABLE FOR REHABILITATION OF PUBLIC HOUSING.

    (a) In General.--Subsection (i) of section 42 of the Internal 
Revenue Code of 1986 (relating to definitions and special rules) is 
amended by adding at the end thereof the following new paragraph:
            ``(8) Special rules for certain leases.--
                    ``(A) In general.--In the case of an agreement with 
                respect to public housing, if all of the parties to the 
                agreement characterize such agreement as a lease and 
                elect to have the provisions of this paragraph apply 
                with respect to such agreement, and if the requirements 
                of subparagraph (B) are met, then, for purposes of this 
                subtitle--
                            ``(i) such agreement shall be treated as a 
                        lease entered into by the parties (and any 
                        lessor shall be deemed to have entered into the 
                        lease in the course of carrying on its trade or 
                        business), and
                            ``(ii) the lessor shall be treated as the 
                        owner of the property and the lessee shall be 
                        treated as the lessee of the property.
                    ``(B) Certain requirements must be met.--The 
                requirements of this subparagraph are met if--
                            ``(i) the lessee is a public housing agency 
                        (as defined in section 3(b)(6) of the United 
                        States Housing Act of 1937),
                            ``(ii) the lessor agrees to incur 
                        sufficient rehabilitation expenditures to be 
                        allowed a credit by reason of subsection (e) 
                        not later than the 2d year after entering into 
                        the lease,
                            ``(iii) the term of the lease ends at the 
                        close of the compliance period for the 
                        building, and
                            ``(iv) at the end of the lease term--
                                    ``(I) all of the property subject 
                                to the lease is owned by the public 
                                housing agency, and
                                    ``(II) in the case of property in 
                                existence on the date of the enactment 
                                of this paragraph, the applicable 
                                fraction for the property (relating to 
                                low-income occupancy) is not less than 
                                the applicable fraction for such 
                                property on such date.
                    ``(C) Public housing.--The term `public housing' 
                has the meaning given such term by section 3(b)(1) of 
                the United States Housing Act of 1937.
                    ``(D) No other factors taken into account in 
                determining whether there is a lease.--If the 
                requirements of subparagraphs (A) and (B) are met with 
                respect to any transaction described in subparagraph 
                (A), no other factors shall be taken into account in 
                making a determination as to whether subparagraph 
                (A)(i) or (ii) applies with respect to the transaction.
                    ``(E) 10-year rule not to apply.--Subsection 
                (d)(2)(B)(ii) shall not apply to any property which is 
                the subject of a transaction to which subparagraph (A) 
                applies.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to agreements entered into after December 31, 1993.

                                 <all>
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