I 
118TH CONGRESS 
1ST SESSION H. R. 3719 
To amend the Internal Revenue Code of 1986 to repeal the qualified contract 
exception to the extended low-income housing commitment rules for pur-
poses of the low-income housing credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 25, 2023 
Mr. NEGUSE 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 repeal 
the qualified contract exception to the extended low- 
income housing commitment rules for purposes of the 
low-income housing credit, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Save Affordable Hous-
ing Act of 2023’’. 
SEC. 2. REPEAL OF QUALIFIED CONTRACT OPTION. 
(a) TERMINATION OF OPTION FOR CERTAIN BUILD-
INGS.— 
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(1) IN
GENERAL.—Subclause (II) of section 
42(h)(6)(E)(i) of the Internal Revenue Code of 1986 
is amended by inserting ‘‘in the case of a building 
described in clause (iii),’’ before ‘‘on the last day’’. 
(2) 
BUILDINGS
DESCRIBED.—Subparagraph 
(E) of section 42(h)(6) of such Code is amended by 
adding at the end the following new clause: 
‘‘(iii) 
BUILDINGS
DESCRIBED.—A 
building described in this clause is a build-
ing— 
‘‘(I) which received its allocation 
of housing credit dollar amount before 
January 1, 2023, or 
‘‘(II) in the case of a building 
any portion of which is financed as 
described in paragraph (4), which re-
ceived before January 1, 2023, a de-
termination from the issuer of the 
tax-exempt bonds or the housing cred-
it agency that the building is eligible 
to receive an allocation of housing 
credit dollar amount under the rules 
of paragraphs (1) and (2) of sub-
section (m).’’. 
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(b) RULES RELATING TO EXISTING PROJECTS.— 
Subparagraph (F) of section 42(h)(6) of the Internal Rev-
enue Code of 1986 is amended by striking ‘‘the nonlow- 
income portion’’ and all that follows and inserting ‘‘the 
nonlow-income portion and the low-income portion of the 
building for fair market value (determined by the housing 
credit agency by taking into account the rent restrictions 
required for the low-income portion of the building to con-
tinue to meet the standards of paragraphs (1) and (2) of 
subsection (g)). The Secretary shall prescribe such regula-
tions as may be necessary or appropriate to carry out this 
paragraph.’’. 
(c) CONFORMING AMENDMENTS.— 
(1) Paragraph (6) of section 42(h) of the Inter-
nal Revenue Code of 1986 is amended by striking 
subparagraph (G) and by redesignating subpara-
graphs (H), (I), (J), and (K) as subparagraphs (G), 
(H), (I), and (J), respectively. 
(2) Subclause (II) of section 42(h)(6)(E)(i) of 
such Code, as amended by subsection (a), is further 
amended by striking ‘‘subparagraph (I)’’ and insert-
ing ‘‘subparagraph (H)’’. 
(d) TECHNICAL AMENDMENT.—Subparagraph (I) of 
section 42(h)(6) of the Internal Revenue Code of 1986, 
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as redesignated by subsection (c), is amended by striking 
‘‘agreement’’ and inserting ‘‘commitment’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings with respect to which 
a written request described in section 42(h)(6)(H) of the 
Internal Revenue Code of 1986, as redesignated by sub-
section (c), is submitted after the date of the enactment 
of this Act. 
Æ 
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