I 
113TH CONGRESS 
2D SESSION 
H. R. 5198 
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. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 24, 2014 
Mr. GALLEGO 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 provide 
an appeal process for designation as qualified census 
tracts and difficult development areas under the low- 
income housing credit. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. APPEAL PROCESS FOR DESIGNATION AS 
QUALIFIED CENSUS TRACTS AND DIFFICULT 
DEVELOPMENT AREAS UNDER THE LOW-IN-
COME HOUSING CREDIT. 
(a) IN GENERAL.—Section 42(d)(5) of the Internal 
Revenue Code of 1986 is amended by adding at the end 
the following new subparagraph: 
‘‘(C) APPEAL
OF
QUALIFIED
CENSUS 
TRACT
AND
DIFFICULT
DEVELOPMENT
AREA 
DESIGNATIONS.— 
‘‘(i) IN GENERAL.—Any State or local 
government agency may petition the Sec-
retary 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 
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this clause) result in a violation of the limi-
tation 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 dif-
ficult development area designations in 
such metropolitan statistical area. If, after 
making any additional designations, or rev-
ocation of designations as a result of such 
review, such limitation is still exceeded, the 
census tract which is the subject of the ap-
peal 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 limita-
tions. 
‘‘(iii) RETROACTIVE APPLICATION OF 
CORRECTIONS.—Any designation, or rev-
ocation 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. 
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‘‘(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 Sec-
retary of Housing and Urban Develop-
ment, and upon verification by such Sec-
retary 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.’’. 
Æ 
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