Affordable Housing and Area Median Income Fairness Act of 2019

To increase the supply of, and lower rents for, affordable housing and to adjust calculations of area median income for purposes of Federal low-income housing assistance, and for other purposes. 1. Short title This Act may be cited as the Affordable Housing and Area Median Income Fairness Act of 2019 2. Area median income fairness Subparagraph (D) of section 3(b)(2) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b)(2)(D) (1) in the second sentence, by inserting (in this subparagraph referred to as the covered jurisdictions (2) in the third sentence— (A) by striking Westchester or Rockland Counties the covered jurisdictions (B) by striking included Westchester and Rockland Counties does not include the covered jurisdictions (3) in the fourth sentence, by striking include Westchester and Rockland Counties, New York, in exclude the covered jurisdictions from 3. High housing cost adjustment fairness Subparagraph (D) of section 3(b)(2) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b)(2)(D) For purposes of the low-income housing tax credit program under section 42 4. Low-income housing tax credit disclosures (a) In general Section 42 (o) Annual reporting No credit shall be allowed under subsection (a) with respect to a qualified low-income building for a taxable year unless the following information is submitted (in such manner and at such time as the Secretary requires) to the relevant housing credit agency: (1) All expenditures after the date of the allocation under subsection (h) that substantially affect the basis of such building. (2) The projected rents of the affordable units in such building during the 5-year period following such submission. (3) The annual profits attributable to such building. (4) The annual expenditures attributable to tax credit syndication. (5) Any other information required by the Secretary that is reasonably necessary to determine program compliance. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 5. Urgent support for affordable housing infrastructure (a) Home Investment partnerships program (1) Authorization of appropriations There is authorized to be appropriated to carry out title II of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 1721 (2) Limitation Any amounts appropriated pursuant to paragraph (1) shall be used only for assistance for any area within a participating jurisdiction for which the Secretary has applied, or would have applied prior to the enactment of this Act, a high housing cost adjustment. (b) Community development block grants (1) Authorization of appropriations There is authorized to be appropriated for community development block grant assistance under section 106 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306 (2) Limitation Any amounts appropriated pursuant to paragraph (1) shall be used only for assistance for any area within a metropolitan city or urban county for which the Secretary has applied, or would have applied prior to the enactment of this Act, a high housing cost adjustment. (c) Housing Trust Fund (1) Authorization of appropriations There is authorized to be appropriated to the Housing Trust Fund established under section 1338(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 ( 12 U.S.C. 4568(a) (2) Limitation Any amounts appropriated pursuant to paragraph (1) shall be used only for assistance to be used within any area within a unit of general local government for which the Secretary has applied, or would have applied prior to the enactment of this Act, a high housing cost adjustment. 6. Assessment regarding optimizing use of area median income to support affordable housing in urban areas (a) Assessment of alternative calculation methods Not later than 180 days after the date of the enactment of this Act, the Secretary shall commence an assessment of alternative methods for calculating area median income, and the use of alternative metrics, for programs administered by the Secretary that would make housing more affordable for low-income families residing in urban areas nationwide, which shall include analysis of the topics identified in subsection (b). (b) Report Not later than two years after the date of the enactment of this Act, the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and make publicly available, a report setting forth the results of the assessment conducted pursuant to subsection (a), which shall include— (1) a review and summarization of significant findings and recommendations from any related previous reports regarding area median income; (2) an assessment of the extent and impacts of the affordable housing crisis in urban areas nationwide, particularly within jurisdictions for which the Secretary has applied a high housing cost adjustment; (3) an analysis and assessment of the effects that high housing cost adjustments have had on income limits and rent prices in jurisdictions for which the Secretary has applied such an adjustment; (4) an assessment of the potential impacts to affordable housing, particularly on income limits and rent prices, of calculating area median income on a zip-code level basis and using other localized methodologies; (5) assess and propose a process through which State housing authorities may designate area median income jurisdictions within that State; (6) an assessment of alternative metrics to area median income for the purposes of setting income levels and related thresholds for affordable housing programs administered by the Secretary; (7) recommendations for how the Secretary could reform or eliminate use of area median income for the purposes of making housing more affordable for low-income and middle class families in urban areas; and (8) any further recommendations for how the Secretary could make housing more affordable for low-income and middle class families in urban areas. (c) Methodology Not later than 90 days after the date of the enactment of this Act, the Secretary shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate describing the methodology that will be used to conduct the assessment under this section. 7. Definitions For purposes of this Act, the following definitions shall apply: (1) Area median income The term area median income 42 U.S.C. 1437a(b) (2) High housing cost adjustment The term high housing cost adjustment (3) Secretary The term Secretary

Summary: Affordable Housing and Area Median Income Fairness Act of 2019 This bill modifies the means by which eligibility for low-income housing assistance and tax credits is&nbsp;determined. The Department of Housing and Urban Development (HUD) is prohibited from considering the New York counties of Westchester and Rockland as within the New York City metropolitan area when determining or establishing area median incomes and income ceilings and limits for the purposes of eligibility for low-income housing assistance. HUD must also assess alternative methods for calculating area median income as well as alternative metrics for use in programs administered by HUD that would make housing more affordable for low-income families in urban areas nationwide. HUD, for the purposes of low-income housing tax credits and exempt facilities bonds, may not apply high housing cost adjustments for any jurisdiction when calculating the area median income or any related metric. A jurisdiction may petition HUD to apply such an adjustment, however. Qualified low-income buildings may not receive a low-income housing credit unless they provide to the relevant housing&nbsp;credit agency certain information required by HUD to determine program compliance. The bill also authorizes through FY2029 certain assistance for jurisdictions for which HUD has applied, or would have applied in the absence of this bill, a high housing cost adjustment.