(5) REQUIREMENT THAT LOW-INCOME HOUSING 
CREDIT-SUPPORTED HOUSING PROTECT VICTIMS OF 
DOMESTIC ABUSE.— 
(A) IN GENERAL.—Subparagraph (B) of 
section 42(h)(6) of the Internal Revenue Code 
of 1986 is amended by striking ‘‘and’’ at the 
end of clause (v), by striking the period at the 
end of clause (vi) and inserting ‘‘, and’’, and by 
adding at the end the following new clause: 
‘‘(vii) which— 
‘‘(I) prohibits the refusal to lease 
to, or termination of a lease by, a per-
son solely on the basis of criminal ac-
tivity directly relating to domestic vio-
lence, dating violence, sexual assault, 
or stalking that is engaged in by a 
member of the household of the ten-
ant or any guest or other person 
under the control of the tenant, if the 
tenant or an affiliated individual of 
the tenant is the victim or threatened 
victim of such domestic violence, dat-
ing violence, sexual assault, or stalk-
ing, and 
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‘‘(II) allows prospective, present, 
or former occupants of the building 
the right to enforce in any State court 
the prohibition of subclause (I).’’. 
(B) BIFURCATION.— 
(i) IN GENERAL.—Subparagraph (B) 
of section 42(h)(6) of the Internal Revenue 
Code of 1986, as amended by subsection 
(a), is further amended by adding at the 
end the following new flush sentence: 
‘‘For purposes of clause (vii)(I), rules similar to 
the rules of section 41411(b)(3)(B) of the Vio-
lence Against Women Act of 1994 shall apply 
with respect to the owner or manager of a 
building.’’. 
(ii) EFFECT OF BIFURCATION.—Para-
graph (2) of section 42(g) of such Code is 
amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(F) TREATMENT
OF
BIFURCATION
IN 
CASES OF DOMESTIC VIOLENCE.—In any case 
in which— 
‘‘(i) an occupant is evicted or removed 
from a low-income unit because such occu-
pant has engaged in criminal activity di-
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rectly relating to domestic violence, dating 
violence, sexual assault, or stalking against 
an affiliated individual or other individual 
on the basis of criminal activity directly re-
lating to domestic violence, dating violence, 
sexual assault, or stalking, and 
‘‘(ii) the lease on such unit is bifur-
cated as provided in the last sentence of 
subsection (h)(6)(B), 
then the remaining occupants of such low-in-
come unit shall not be treated as a new tenant 
for purposes of this section.’’. 
(C) CLARIFICATION OF GENERAL PUBLIC 
USE REQUIREMENT.—Paragraph (9) of section 
42(g) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘or’’ at the end of sub-
paragraph (B), by striking the period at the 
end of subparagraph (C) and inserting ‘‘, or’’, 
and by adding at the end the following new sub-
paragraph: 
‘‘(D) who are victims or threatened victims 
of criminal activity directly relating to domestic 
violence, dating violence, sexual assault, or 
stalking.’’. 
(D) EFFECTIVE DATES.— 
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(i) IN GENERAL.—Except as provided 
in clause (ii), the amendments made by 
this paragraph shall apply to agreements 
executed or modified on or after the date 
that is 30 days after the date of the enact-
ment of this Act. 
(ii) PUBLIC USE REQUIREMENT.—The 
amendments made by subparagraph (C) 
shall apply to buildings placed in service 
before, on, or after the date of the enact-
ment of this Act. 
(6) CLARIFICATION OF GENERAL PUBLIC USE 
REQUIREMENT RELATING TO VETERANS, ETC.— 
(A) IN GENERAL.—Paragraph (9) of sec-
tion 42(g) of the Internal Revenue Code of 
1986, as amended by paragraph (5) of this sec-
tion, is further amended by adding at the end 
the following flush language: 
‘‘Any veteran of the Armed Forces shall be treated 
as a member of a specified group under a Federal 
program for purposes of subparagraph (B).’’. 
(B) QUALIFIED
RESIDENTIAL
RENTAL 
PROJECTS.—Paragraph (2) of section 142(d) of 
the Internal Revenue Code of 1986 is amended 
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by adding at the end the following new sub-
paragraph: 
‘‘(F) CLARIFICATION OF GENERAL PUBLIC 
USE REQUIREMENT.—A unit shall not fail to 
meet the general public use requirement solely 
because of occupancy restrictions or pref-
erences, if such restrictions or preferences meet 
the general public use requirement of section 
42.’’. 
(C) EFFECTIVE DATES.— 
(i) IN
GENERAL.—The amendment 
made by subparagraph (A) shall apply to 
buildings placed in service before, on, or 
after the date of the enactment of this Act. 
(ii) QUALIFIED RESIDENTIAL RENTAL 
PROJECTS.—The amendment made by sub-
paragraph (B) shall apply to bonds issued 
before, on, or after the date of the enact-
ment of this Act. 
(c) RULES RELATING TO CREDIT ELIGIBILITY AND 
DETERMINATION.— 
(1) RECONSTRUCTION
OR
REPLACEMENT
PE-
RIOD AFTER CASUALTY LOSS.— 
(A) NO RECAPTURE FOLLOWING CASUALTY 
LOSS.—Subparagraph (E) of section 42(j)(4) of 
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the Internal Revenue Code of 1986 is amended 
to read as follows: 
‘‘(E) NO RECAPTURE BY REASON OF CAS-
UALTY LOSS.— 
‘‘(i) IN
GENERAL.—The increase in 
tax under this subsection shall not apply to 
a reduction in qualified basis by reason of 
a casualty loss to the extent such loss is 
restored by reconstruction or replacement 
within a reasonable period established by 
the applicable housing credit agency, not to 
exceed 25 months from the date on which 
the qualified casualty loss arises. 
‘‘(ii) QUALIFIED CASUALTY LOSSES.— 
In the case of a qualified casualty loss, the 
period described in clause (i) may be ex-
tended, but not in excess of 12 months, if 
the applicable housing credit agency deter-
mines the qualified casualty arose by rea-
son of an event which was not discrete to 
the building and which made a reconstruc-
tion or replacement within 25 months im-
practical. In the event the applicable hous-
ing credit agency determines a period in 
excess of 25 months is necessary for such 
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reconstruction or replacement, the compli-
ance period shall be increased by any such 
additional time. 
‘‘(iii) APPLICATION.—The determina-
tion under paragraph (1) shall not be 
made with respect to a property the basis 
of which is affected by a qualified casualty 
loss until the period described in clause (i) 
(as modified by clause (ii), if applicable) 
with respect to such property has expired. 
‘‘(iv) QUALIFIED
CASUALTY
LOSS.— 
For purposes of this subparagraph, the 
term ‘qualified casualty loss’ means a cas-
ualty loss that is the result of a federally 
declared disaster (as defined in section 
165(i)(5)).’’. 
(B) QUALIFIED
BASIS
FOLLOWING
CAS-
UALTY LOSS.—Paragraph (1) of section 42(c) 
of the Internal Revenue Code of 1986 is 
amended by adding at the end the following 
new subparagraph: 
‘‘(F) QUALIFIED BASIS FOLLOWING CAS-
UALTY LOSS.—If a casualty causes the qualified 
basis of a building in any year to be less than 
the qualified basis in the immediately preceding 
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year then, in the year of such casualty and each 
succeeding year until such building or the units 
affected by the casualty are reconstructed or re-
placed (but only through the last year of the pe-
riod permitted for reconstruction or replace-
ment under subsection (j)(4)(E))— 
‘‘(i) the qualified basis of such build-
ing shall be equal to the qualified basis of 
such building as of the last day of the year 
preceding the year in which such casualty 
occurred, 
‘‘(ii) if such building is not recon-
structed or replaced by the expiration of 
the applicable period for such reconstruc-
tion or replacement under subsection 
(j)(4), then the recapture amount provided 
for in subsection (j)(1) shall include the 
amount of any credit claimed under this 
section by reason of the application of 
clause (i), and 
‘‘(iii) a building which was a qualified 
low-income building as of the last day of 
the year preceding the year in which such 
casualty occurred shall not cease to be a 
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qualified low-income building solely be-
cause of such casualty.’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to casual-
ties occurring after the date which is 25 months 
before the date of the enactment of this Act. 
(2) MODIFICATION
OF
PREVIOUS
OWNERSHIP 
RULES; LIMITATION ON ACQUISITION BASIS.— 
(A) IN GENERAL.—Clause (ii) of section 
42(d)(2)(B) of the Internal Revenue Code of 
1986 is amended by inserting ‘‘, or the tax-
payer elects the application of subparagraph 
(C)(ii)’’ after ‘‘service’’. 
(B) LIMITATION ON ACQUISITION BASIS.— 
Subparagraph (C) of section 42(d)(2) of the In-
ternal Revenue Code of 1986 is amended— 
(i) by striking ‘‘For purposes of sub-
paragraph (A), the adjusted basis’’ and in-
serting ‘‘For purposes of subparagraph 
(A)— 
‘‘(i) 
IN
GENERAL.—The 
adjusted 
basis’’, and 
(ii) by adding at the end the following 
new clauses: 
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‘‘(ii) BUILDINGS IN SERVICE WITHIN 
PREVIOUS
YEARS.—If the period be-
tween the date of acquisition of the build-
ing by the taxpayer and the date the build-
ing was last placed in service is less than 
10 years, the taxpayer’s basis attributable 
to the acquisition of the building which is 
taken into account in determining the ad-
justed basis shall not exceed the sum of— 
‘‘(I) the lowest amount paid for 
acquisition of the building by any per-
son during the 10 years preceding the 
date of the acquisition of the building 
by the taxpayer, adjusted as provided 
in clause (iii), and 
‘‘(II) the value of any capital im-
provements made by the person who 
sells the building to the taxpayer 
which are reflected in such seller’s 
basis. 
‘‘(iii) ADJUSTMENT.—With respect to 
a basis determination made in any taxable 
year, the amount described in clause (ii)(I) 
shall be increased by an amount equal to— 
‘‘(I) such amount, multiplied by 
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‘‘(II) a cost-of-living adjustment, 
determined in the same manner as 
under section 1(f)(3) for the calendar 
year in which the taxable year begins 
by taking into account the acquisition 
year in lieu of calendar year 1992. 
For purposes of the preceding sentence, 
the acquisition year is the calendar year in 
which the lowest amount referenced in 
clause (ii)(I) was paid for the acquisition 
of the building.’’. 
(C) CONFORMING
AMENDMENTS.—Clause 
(i) of section 42(d)(2)(D) of the Internal Rev-
enue Code of 1986 is amended— 
(i) by striking ‘‘FOR SUBPARAGRAPH 
(B)’’ in the heading, and 
(ii) 
by 
striking 
‘‘subparagraph 
(B)(ii)’’ in the matter preceding subclause 
(I) and inserting ‘‘subparagraph (B)(ii) or 
(C)(ii)’’. 
(D) MODIFICATION OF PLACED IN SERVICE 
RULE.—Clause (iii) of section 42(d)(2)(B) of 
the Internal Revenue Code of 1986 is amended 
to read as follows: 
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‘‘(iii) the building was not owned by 
the taxpayer or by any person related (as 
of the date of acquisition by the taxpayer) 
to the taxpayer at any time during the 5- 
year period ending on the date of acquisi-
tion by the taxpayer, and’’. 
(E) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to buildings 
placed in service after December 31, 2022. 
(3) CERTAIN RELOCATION COSTS TAKEN INTO 
ACCOUNT AS REHABILITATION EXPENDITURES.— 
(A) IN GENERAL.—Paragraph (2) of sec-
tion 42(e) of the Internal Revenue Code of 
1986 is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) CERTAIN
RELOCATION
COSTS.—In 
the case of a rehabilitation of a building to 
which section 280B does not apply, costs relat-
ing to the relocation of occupants, including— 
‘‘(i) amounts paid to occupants, 
‘‘(ii) amounts paid to third parties for 
services relating to such relocation, and 
‘‘(iii) amounts paid for temporary 
housing for occupants, 
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