Visitable Inclusive Tax credits for Accessible Living (VITAL) Act

Subjects: Taxation

Summary:  <p> <strong>Visitable Inclusive Tax credits for Accessible Living (VITAL) Act </strong></p> <p>This bill increases the low-income housing tax credit to serve the housing needs of older people and people with disabilities. Specifically, the bill increases state allocations of the credit and credit amounts for projects for assisting households with disabled individuals.</p> <p>The bill requires each state housing finance agency to establish and operate a Resource Center for the Low-Income Housing Tax Credit Program to support new program applicants and recipients. It also establishes a National Low-Income Housing Tax Credit Advisory Council to provide best practice recommendations to state housing finance agencies and other entities relating to affordable housing trends.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1377 Introduced in Senate (IS)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                S. 1377

 To amend the Internal Revenue Code of 1986 to improve the low-income 
                            housing credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2023

Mr. Casey (for himself, Ms. Duckworth, Mrs. Gillibrand, Ms. Klobuchar, 
and Mr. Welch) 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 improve the low-income 
                            housing 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 ``Visitable Inclusive Tax credits for 
Accessible Living (VITAL) Act''.

SEC. 2. PURPOSE.

    The purposes of this Act are to--
            (1) increase low-income housing tax credits to increase the 
        stock of disability-accessible and affordable housing;
            (2) ensure that States are using the Federal tax credits to 
        construct housing that will meet the needs of an aging 
        population and currently underserved populations such as 
        households with people with disabilities;
            (3) encourage States to make sure older adults and 
        underserved populations are integrated into their community and 
        can fully participate in society; and
            (4) increase technical assistance, awareness, knowledge, 
        and understanding of the low-income housing credit program and 
        the housing needs of older adults and people with disabilities.

SEC. 3. FINDINGS.

    Congress makes the following findings:
            (1) By 2060, 1 in every 4 Americans will be over age 65, 
        and currently, 2 in 5 adults over age 65 have a disability. As 
        people age, they need structurally safe and functional housing 
        that accommodates people with disabilities.
            (2) Approximately 26 percent of people in the United States 
        have a disability, yet less than 6 percent of the national 
        housing supply is designed to be even rudimentarily accessible.
            (3) An accessible home offers specific features or 
        technologies such as lowered kitchen counters and sinks, 
        widened doorways, and zero-step showers.
            (4) A lack of affordable and accessible housing can 
        relegate people with disabilities to living in institutional 
        settings when they would prefer to live in a community setting.
            (5) Older adults and people with disabilities prefer to 
        remain in their homes for as long as possible. More than 89 
        percent of adults aged 65 and over hope to stay in their homes 
        as they age.
            (6) Older adults and people with disabilities must be able 
        to run errands, work, visit family and friends, and keep doctor 
        appointments, while not always being able to drive. Accessible 
        and affordable public transit options and walkable and roll-
        able neighborhoods allow older adults and people with 
        disabilities to remain independent and active in their 
        communities.
            (7) Many older adults and people with disabilities are 
        experiencing an affordability crisis. Approximately 4,800,000 
        non-institutionalized people with disabilities who depend on 
        Federal monthly Supplemental Security Income have incomes 
        averaging only about $9,156 per year, low enough to be priced 
        out of every rental housing market in the nation.

SEC. 4. INCREASES IN STATE ALLOCATIONS.

    (a) In General.--Clause (ii) of section 42(h)(3)(C) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``$1.75'' in subclause (I) and inserting 
        ``$4.47'', and
            (2) by striking ``$2,000,000'' in subclause (II) and 
        inserting ``$5,154,965''.
    (b) Cost-of-Living Adjustment.--Subparagraph (H) of section 
42(h)(3) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``2002'' in clause (i) and inserting 
        ``2023'',
            (2) by striking ``the $2,000,000 and $1.75 amounts in 
        subparagraph (C)'' in clause (i) and inserting ``the $5,154,965 
        and $4.47 amounts in subparagraph (C)'',
            (3) by striking ``2001'' in clause (i)(II) and inserting 
        ``2022'',
            (4) by striking ``$2,000,000 amount'' in clause (ii)(I) and 
        inserting ``$5,154,965'', and
            (5) by striking ``$1.75 amount'' in clause (ii)(II) and 
        inserting ``$4.47''.
    (c) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2023.

SEC. 5. TAX-EXEMPT BOND FINANCING REQUIREMENT.

    (a) In General.--Subparagraph (B) of section 42(h)(4) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following: ``In the case of buildings financed by an obligation first 
taken into account under section 146 in calendar years beginning after 
2023, the preceding sentence shall be applied by substituting `25 
percent' for `50 percent'.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to buildings placed in service in taxable years beginning after 
December 31, 2023.

SEC. 6. INCREASE IN CREDIT FOR PROJECTS DESIGNATED TO SERVE HOUSEHOLDS 
              WITH PEOPLE WITH DISABILITIES.

    (a) In General.--Paragraph (5) of section 42(d) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Increase in credit for projects designated to 
                serve households with people with disabilities.--
                            ``(i) In general.--In the case of any 
                        building--
                                    ``(I) 50 percent or more of the 
                                low-income units in the building are 
                                units designated by the taxpayer to 
                                meet the applicable design standards 
                                for occupancy by persons with mental, 
                                physical, sensory, or developmental 
                                disabilities,
                                    ``(II) which is located in a census 
                                block group designated by the 
                                Environmental Protection Agency as 
                                being--
                                            ``(aa) above average or 
                                        better in terms of walkability, 
                                        or
                                            ``(bb) adjacent to 2 or 
                                        more census tracts described in 
                                        item (aa), and
                                    ``(III) which is designated by the 
                                housing credit agency as requiring the 
                                increase in credit under this 
                                subparagraph in order for such building 
                                to be financially feasible as part of a 
                                qualified low-income housing project,
                        subparagraph (B) shall not apply to the portion 
                        of such building which is comprised of such 
                        units, and the eligible basis of such portion 
                        of the building shall be 130 percent of such 
                        basis determined without regard to this 
                        subparagraph.
                            ``(ii) Design standards.--For purposes of 
                        clause (i)(I), the term `applicable design 
                        standards' means the principles and standards 
                        of adaptable design as detailed in the Uniform 
                        Federal Accessibility Standards, or any 
                        successor standard designated by the 
                        Secretary.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to buildings which receive allocations of housing credit dollar amount 
or, in the case of projects financed by tax-exempt obligations as 
described in section 42(h)(4) of the Internal Revenue Code of 1986, 
which are first taken into account under section 146 of such Code, 
after the date of the enactment of this Act.

SEC. 7. REQUIREMENT FOR PROJECTS DESIGNATED TO SERVE HOUSEHOLDS WITH 
              PEOPLE WITH DISABILITIES.

    (a) In General.--Paragraph (1) of section 42(m) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(E) Projects designated to serve households with 
                people with disabilities.--
                            ``(i) In general.--The qualified allocation 
                        plan shall ensure that, with respect to any 3-
                        year period, the applicable percentage is not 
                        less than 40 percent.
                            ``(ii) Applicable percentage.--For purposes 
                        of this subparagraph, the applicable percentage 
                        is the ratio (expressed as a percentage) of--
                                    ``(I) the number of low-income 
                                units in all projects receiving an 
                                allocation of the housing credit dollar 
                                amount during such period which meet 
                                the requirements of subclause (I) of 
                                subsection (d)(5)(C)(i), to
                                    ``(II) the aggregate number of all 
                                low-income units in all projects 
                                receiving an allocation of the housing 
                                credit dollar amount during such 
                                period.
                            ``(iii) Special rule.--For purposes of 
                        clause (ii)(I), any low-income unit which is 
                        part of a project which meets the requirements 
                        of both subclause (I) and subclause (II) of 
                        subsection (d)(5)(C)(i) shall be counted 
                        twice.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to buildings which receive allocations of housing credit dollar amount 
or, in the case of projects financed by tax-exempt obligations as 
described in section 42(h)(4) of the Internal Revenue Code of 1986, 
which are first taken into account under section 146 of such Code, 
after the date of the enactment of this Act.

SEC. 8. RESOURCE CENTERS FOR THE LOW-INCOME HOUSING TAX CREDIT PROGRAM.

    (a) Definitions.--In this section:
            (1) Center.--The term ``Center'' means a Resource Center 
        established under subsection (b).
            (2) Program.--The term ``Program'' means a program 
        established for allocating amount under section 42(h) of the 
        Internal Revenue Code of 1986.
    (b) Establishment.--Each State housing finance agency shall 
establish and operate a Resource Center for the Low-Income Housing Tax 
Credit Program to support new applicants and recipients for the Program 
in the State by--
            (1) providing potential applicants and recipients with 
        information and technical assistance to effectively prepare and 
        submit a Program application;
            (2) ensuring that all interested and eligible entities have 
        the tools to apply for the Program;
            (3) prioritizing providing assistance to nonprofit and 
        first-time developers applying for the Program;
            (4) identifying potential barriers to preparing and 
        submitting a successful application for the Program;
            (5) prioritizing providing assistance to developers 
        dedicated to serving communities who have faced a history of 
        housing discrimination; and
            (6) proposing streamlined solutions to those barriers that 
        the State and each locality within the State can adopt.
    (c) Operating Standards and Reporting Requirements.--Each State 
housing finance agency shall develop and issue operating standards and 
reporting requirements for the Center established by the agency.
    (d) Set Aside.--There is authorized to be appropriated $8,250,000 
for fiscal year 2024 and each fiscal year thereafter to carry out this 
section, of which $150,000 shall be allocated each fiscal year to each 
State housing finance agency located in--
            (1) a State of the United States;
            (2) the District of Columbia; or
            (3) a territory of the United States.

SEC. 9. NATIONAL LOW-INCOME HOUSING TAX CREDIT ADVISORY COUNCIL.

    (a) Definitions.--In this section:
            (1) Council.--The term ``Council'' means the National Low-
        Income Housing Tax Credit Advisory Council established under 
        subsection (b).
            (2) Covered property.--The term ``covered property'' means 
        a building receiving an allocation of credit under section 42 
        of the Internal Revenue Code of 1986.
    (b) Establishment.--There is established a National Low-Income 
Housing Tax Credit Advisory Council.
    (c) Membership.--
            (1) Selection; chair.--The Council shall be comprised of 
        members selected by a designee jointly selected by the 
        Secretary of Housing and Urban Development and the Secretary of 
        the Treasury, who shall serve as chair of the Council.
            (2) Members.--The Council shall be composed of not less 
        than 1 representative from each of the following groups:
                    (A) Community-based organizations that support 
                individuals with disabilities living in covered 
                properties.
                    (B) Community-based organizations that support 
                older adults living in covered properties.
                    (C) Community-based organizations that support 
                veterans living in covered properties.
                    (D) Community-based organizations that support 
                families and children living in covered properties.
                    (E) A multi-State not-for-profit housing developer.
                    (F) A multi-State for-profit housing developer.
                    (G) Investors or syndicators of funds to which 
                credits allocated under section 42 of the Internal 
                Revenue Code of 1986 are sold.
                    (H) The research community.
                    (I) State housing finance agencies.
                    (J) Community-based organizations that support 
                individuals protected from discrimination under the 
                Fair Housing Act (42 U.S.C. 3601 et seq.).
            (3) Qualifications.--The members of the Council shall--
                    (A) have a lived experience as part of the group 
                they represent; and
                    (B) represent a diversity of--
                            (i) educational and professional 
                        backgrounds;
                            (ii) racial, ethnic, gender, and linguistic 
                        identities;
                            (iii) disabilities, including intellectual 
                        disabilities;
                            (iv) ages; and
                            (v) geographic locations.
            (4) Duration.--Each member of the Council shall be 
        appointed for a period of 3 years and may be re-appointed for 
        an additional term.
    (d) Duties.--The Council shall provide best practice 
recommendations and resources to State housing finance agencies, 
developers, investors, and consumers related to national trends in the 
development of affordable housing under section 42 of the Internal 
Revenue Code of 1986.
    (e) Report.--
            (1) In general.--The Council shall submit to each State 
        housing finance agency and the Secretary of Housing and Urban 
        Development a report, which shall be submitted not less 
        frequently than once every 3 years, with final recommendations 
        on best practices to--
                    (A) fulfill the mission of the credits allocated 
                under section 42 of the Internal Revenue Code of 1986;
                    (B) serve the needs of individuals with 
                disabilities and older adults; and
                    (C) study the effects of factors such as zoning, 
                land use requirements, location, and cost of affordable 
                housing developments.
            (2) Public availability.--Upon receiving a report submitted 
        under paragraph (1), the Secretary of Housing and Urban 
        Development shall make the report available to the public.
    (f) Authorization of Appropriations.--There is authorized to be 
appropriated $15,000,000 for fiscal year 2024 and each fiscal year 
thereafter to carry out this section, which amounts shall be provided 
to the Council to cover the costs of travel and the necessary 
operations of the Council.
                                 &lt;all&gt;
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