To amend the Internal Revenue Code of 1986 to provide an appeal process for designation as qualified census tracts and difficult development areas under the low-income housing credit.

To amend the Internal Revenue Code of 1986 to provide an appeal process for designation as qualified census tracts and difficult development areas under the low-income housing credit. 1. Appeal process for designation as qualified census tracts and difficult development areas under the low-income housing credit (a) In general Section 42(d)(5) (C) Appeal of qualified census tract and difficult development area designations (i) In general Any State or local government agency may petition the Secretary of Housing and Urban Development to review such Secretary’s designation (or failure to designate) for any area within such agency’s jurisdiction as a qualified census tract or difficult development area by filing an appeal with such Secretary during the 120-day period beginning on the date that such Secretary publishes the list of qualified census tracts and difficult development areas for the calendar year. (ii) Application of population limitation If a designation is made pursuant to an appeal under clause (i) and such designation would (without regard to this clause) result in a violation of the limitation imposed under clause (ii)(II) or (iii)(II) of subparagraph (B) with respect to the relevant metropolitan statistical area, then the Secretary of Housing and Urban Development shall conduct a review of all of the qualified census tract or difficult development area designations in such metropolitan statistical area. If, after making any additional designations, or revocation of designations as a result of such review, such limitation is still exceeded, the census tract which is the subject of the appeal and such additional designations shall be substituted for so many of the last areas designated when such Secretary made its annual review and determination as is necessary to comply with such limitations. (iii) Retroactive application of corrections Any designation, or revocation of designation, under clause (i) or (ii) with respect to any appeal shall be valid retroactive to the beginning of the calendar year to which the appeal relates. (iv) Petition with respect to census block groups Any landowner whose property is located within a census block group or equivalent geographic area defined by the Bureau of the Census that meets the criteria for designation of a qualified census tract can petition the Secretary of Housing and Urban Development, and upon verification by such Secretary that such area meets such criteria, such Secretary shall designate such area as a qualified census tract. Subparagraph (B)(ii)(II) shall be applied without regard to any area designated under this clause. .

Summary: Amends the Internal Revenue Code to allow a state or local government agency to petition the Secretary of Housing and Urban Development (HUD) to review a HUD designation of (or failure to designate) an area as a qualified census tract (low income area) or difficult development area (an area with high construction, land, and utility costs relative to area median gross income).