(2) in subsection (f), by inserting after para-
graph (4) the following new paragraph: 
‘‘(5) The uses to assist the homeless for which prop-
erty may be made available under this section shall include 
permanent housing for the homeless.’’; 
(3) in subsection (i)— 
(A) in paragraph (4), by striking ‘‘and’’ at 
the end; 
(B) in paragraph (5), by striking the pe-
riod at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
paragraph: 
‘‘(6) the term ‘permanent housing’’ means 
housing that may be occupied for a period of unlim-
ited duration.’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(j) NOTIFICATION.—The Secretary of Housing and 
Urban Development, the Secretary of Health and Human 
Services, and the Director of the Interagency Council on 
the Homeless shall undertake activities necessary to en-
sure that representatives of the homeless are notified of 
properties available in their localities pursuant to this title 
and of procedures for applying for such properties.’’.
TITLE 
III—HOMELESS 
INTER-
VENTION AND PREVENTION 
SEC. 301. PRESERVATION OF PUBLIC HOUSING DWELLING 
UNITS UNDER HOPE VI. 
(a) PURPOSES.—Section 24(a)(1) of the United 
States Housing Act of 1937 (42 U.S.C. 1437v(a)) is 
amended by inserting before the semicolon at the end the 
following: ‘‘, while retaining or increasing the overall num-
ber of dwelling units available to low-income families’’. 
(b) PROHIBITION
OF NET LOSS
OF DWELLING 
UNITS.—Section 24 of the United States Housing Act of 
1937 (42 U.S.C. 1437v) is amended— 
(1) by redesignating subsections (h) through (o) 
as subsections (j) through (q), respectively; and 
(2) by inserting after subsection (g) the fol-
lowing new subsection: 
‘‘(h) PROHIBITION
OF NET LOSS
OF DWELLING 
UNITS.—The Secretary may not approve an application 
for a grant under this section unless the application pro-
vides— 
‘‘(1) for the provision of at least one additional 
decent, safe, and sanitary public housing dwelling 
unit for each public housing dwelling unit demol-
ished or disposed of under the application, which ad-
ditional dwelling units shall be reserved for occu-
pancy by low-income families and located within the 
jurisdiction of the applicant; and 
‘‘(2) that the total number of bedrooms in addi-
tional public housing dwelling units provided pursu-
ant to paragraph (1) is equal to or exceeds the total 
number of bedrooms in dwelling units demolished or 
disposed of under the application.’’. 
SEC. 302. RIGHT TO NEW UNITS OF INDIVIDUALS AND FAMI-
LIES DISPLACED BY HOPE VI PROJECTS. 
(a) PURPOSES.—Section 24(a) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(a)) is amended— 
(1) in paragraph (3), by striking ‘‘and’’ at the 
end; 
(2) by redesignating paragraph (4) as para-
graph (5); and 
(3) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) providing individuals and families pre-
viously residing in public housing replaced pursuant 
to this section with the right to occupancy in a new 
replacement dwelling unit; and’’. 
(b) RIGHT OF RESIDENTS TO OCCUPY NEW DWELL-
ING UNITS.—Section 24 of the United States Housing Act 
of 1937 (42 U.S.C. 1437v) is amended by inserting after
subsection (h) (as added section 301 of this Act) the fol-
lowing new subsection: 
‘‘(i) RIGHT OF PREVIOUS RESIDENTS TO OCCUPY 
NEW DWELLING UNITS.—The Secretary may not approve 
an application for a grant under this section unless the 
application provides that each family displaced from a 
public housing dwelling unit that is demolished or disposed 
of under the application, or otherwise displaced by revital-
ization activities under the application, will be offered first 
occupancy in a public housing or other subsidized dwelling 
unit of appropriate size constructed, acquired, or rehabili-
tated under the application.’’. 
SEC. 303. POLICIES REGARDING HOMELESS INDIVIDUALS 
AND FAMILIES IN FEDERALLY FUNDED FA-
CILITIES. 
(a) MAINTAINING FAMILY UNITS
IN OVERNIGHT 
SHELTERS.—A federally funded facility that provides 
shelter to homeless individuals on an emergency or tem-
porary basis may not establish or continue in effect any 
policy regarding admission to the facility that has the ef-
fect of denying admission to a member of a family or 
household unit that is seeking admission as a family or 
unit, except that the prohibition under this subsection 
shall not apply with respect to admissions policies for the 
prevention of domestic violence.
(b) DISCHARGE REQUIREMENTS
BY RESIDENTIAL 
CARE, TREATMENT, CUSTODY, AND FOSTER CARE FA-
CILITIES.—A federally funded residential care facility 
shall, in discharging each individual provided services at 
the facility, ensure that upon such discharge— 
(1) there is available to such individual a suit-
able residential setting such that the individual will 
not be homeless upon such discharge, except that 
this paragraph may not be construed to authorize a 
facility to hold an individual in the facility without 
the consent of the individual; 
(2) such individual is provided assistance appro-
priate to ensure that the individual obtains all Fed-
eral, State, and local entitlements, services, and ben-
efits (including medical, income, food, and housing 
benefits) for which such individual is eligible; and 
(3) such individual has been issued a social se-
curity number and has in his or her possession a 
State-issued driver’s license or other identification 
card. 
(c) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) FEDERALLY FUNDED.—The term ‘‘federally 
funded’’ means, with respect to a facility, that the 
facility receives financial assistance, directly or indi-
rectly, from any agency or office of the Federal Gov-
ernment, including any loan, grant, subsidy, guar-
antee, mortgage insurance, or other financial assist-
ance. 
(2) RESIDENTIAL CARE FACILITY.—The term 
‘‘residential care facility’’ means a facility that pro-
vides care or treatment (including medical, mental 
health, and drug or alcohol abuse care or treatment) 
or custody in a residential setting. Such term in-
cludes a hospital (to the extent residential care is 
provided therein), nursing home, intermediate care 
facility, board and care home, assisted living facility, 
congregate care facility, and foster care facility. 
(d) REGULATIONS.—The Secretary of Housing and 
Urban Development shall issue final regulations to carry 
out this section not later than 12 months after the date 
of the enactment of this Act. 
SEC. 304. ESTABLISHMENT OF EMERGENCY RENT RELIEF 
FUND. 
(a) GRANT PROGRAM.—The Secretary of Housing 
and Urban Development shall, to the extent approved in 
appropriation Acts, contract to make, and make, grants 
available to non-profit organizations or local or State gov-
ernmental units for the purpose of providing emergency
rent relief payments to landlords on behalf of tenants who 
face eviction due to temporary financial difficulties. 
(b) RENTAL ASSISTANCE PAYMENTS.— 
(1) AUTHORITY OF NON-PROFITS OR LOCAL OR 
STATE GOVERNMENTAL UNITS TO MAKE RENT PAY-
MENTS
TO
LANDLORDS
ON
BEHALF
OF
CERTAIN 
TENANTS.—Any non-profit organization or local or 
State governmental unit which receives any grant 
under subsection (a) shall use such grant to make 
emergency rent relief payments in accordance with 
paragraph (2), to landlords on behalf of tenants who 
meet the requirements of subsection (c) and who 
apply for such assistance. 
(2) AUTHORITY OF NON-PROFITS OR LOCAL OR 
STATE GOVERNMENTAL UNITS TO DETERMINE PAY-
MENTS.—Non-profit organizations or local or state 
governmental units may determine the amounts nec-
essary to be paid to any landlord under paragraph 
(1) on behalf of any tenant, beyond the amounts, if 
any, that the tenant is able to contribute toward 
rent payments, subject to the following conditions 
and limitations: 
(A) MAXIMUM OF TOTAL RENT DUE.—The 
total amount of any payment shall not exceed
the total amount of rent due the landlord from 
the tenant. 
(B) INITIAL PAYMENT NOT TO EXCEED 3 
MONTHS RENT.—The initial payment may in-
clude an amount necessary to make the pay-
ments of such rent current, except that such 
amount may not exceed an amount equal to 3 
monthly rent payments of the tenant. 
(C) MINIMUM AMOUNT TO BE PAID.—Pay-
ments are to be designed to ensure that the 
total monthly housing expense of the tenant 
does not exceed 30 percent of the monthly net 
income of the tenant. 
(D) 
MAXIMUM
OF
CONSECUTIVE 
MONTHLY PAYMENTS.—Payments are not to be 
made for a continuous period of more than 18 
months. 
(E) MAXIMUM OF 36 MONTHLY PAYMENTS 
OVERALL.—Payments are not to be made for 
an aggregate of more than 36 months. 
(F) TERMINATION
OF
PAYMENTS.—Pay-
ments are to be terminated when the non-profit 
organization or local or State governmental unit 
determines that changes in the financial cir-
cumstances of such tenant render such pay-
ments no longer necessary to prevent eviction of 
the tenant. 
(3) EXPEDITIOUS
PROCESSING
OF
APPLICA-
TIONS.—Any non-profit organization or local or 
State governmental unit which receives any grant 
under subsection (a) shall, within 30 days after the 
receipt of any application for rental assistance under 
subsection (b), notify the tenant and landlord in-
volved of its determination to approve or disapprove 
the application. 
(4) ACCEPTANCE OF RENTAL ASSISTANCE PAY-
MENT
BY
LANDLORD
IS
A
WAIVER
OF
CLAIMS 
AGAINST
TENANT
FOR
NONPAYMENT
OF
RENT.— 
Any landlord who accepts any payment of assistance 
under paragraph (1) waives the right to institute or 
continue eviction proceedings that are based on a 
claim of nonpayment of rent for any period before 
the date of the payment. 
(5) REPAYMENT
OF
ASSISTANCE
BY
TEN-
ANTS.— 
(A) IN GENERAL.—Payments made under 
paragraph (1) on behalf of any tenant shall be 
repayable to the Secretary by the tenant on 
terms and conditions prescribed by the Sec-
retary.
(B) MAXIMUM
AMOUNT.—Any non-profit 
organization or local or State governmental unit 
which receives any grant under subsection (a) 
shall ensure that the monthly repayment 
amount for any tenant making repayments 
under subparagraph (A) is calculated so that 
the sum of the monthly repayment amount and 
the total monthly housing expense of the tenant 
is at most 50 percent of the monthly net income 
of the tenant, except that the Secretary may 
waive this limitation on a case-by-case basis. 
(6) DEPOSIT
IN
EMERGENCY
RENT
RELIEF 
FUND.—Amounts received by the Secretary from 
any non-profit organization or local or State govern-
mental unit as repayments under paragraph (5) or 
as interest on assistance payments made under para-
graph (1), shall be deposited in the account of the 
non-profit or local or State governmental unit in the 
Emergency Rent Relief Fund established in sub-
section (g). 
(7) MONITORING
OF
TENANT’S
ABILITY
TO 
PAY.—The Secretary shall establish procedures for 
any tenant on whose behalf payments are made 
under paragraph (1), and any tenant who is to make 
repayments under paragraph (5), to inform the non-
profit organization or local or State governmental 
unit making such payments, or receiving such repay-
ments, of any significant increase or decrease in the 
income of the tenant. 
(8) PERIODIC REVIEW OF TENANT’S FINANCIAL 
CIRCUMSTANCES.—The Secretary shall establish pro-
cedures to be followed by non-profit organizations or 
local or State governmental units for reviewing, not 
less frequently than annually, the financial cir-
cumstances of any tenant on whose behalf payments 
are to be made under paragraph (1), and any tenant 
who is to make repayments under paragraph (5), to 
determine whether such payments or repayments 
should be adjusted or terminated. 
(c) ELIGIBILITY FOR ASSISTANCE.—Any non-profit 
organization or local or State governmental unit which re-
ceives any grant under subsection (a) may make rental 
assistance payments under subsection (b) to any landlord 
on behalf of any tenant if it has determined that all of 
the following requirements have been met: 
(1) LANDLORD HAS NOTIFIED TENANT OF IN-
TENT
TO
EVICT
TENANT
FOR
NONPAYMENT
OF 
RENT.—The landlord has notified the tenant that 
the landlord intends to evict the tenant for non-
payment of rent.
(2) PRINCIPAL RESIDENCE.—The rental prop-
erty involved is the principal residence of the tenant. 
(3) RENT DOES NOT EXCEED MEDIAN RENT 
FOR SIMILAR UNITS IN AREA RECENTLY RENTED.— 
The monthly rent payable by the tenant does not ex-
ceed the amount equal to the median rent paid for 
rental units of the same size by tenants who moved 
into or within the area in which the non-profit or 
local or State governmental unit is located during 
the most recently completed period of at most 12 
months for which such data is available. 
(4) RENT
IS
DELINQUENT
DUE
TO
EVENTS 
OUTSIDE CONTROL OF TENANT.—Events outside the 
control of the tenant have rendered the tenant un-
able to— 
(A) correct a rent payment delinquency 
within a reasonable time; and 
(B) resume full rent payments. 
(5) PAYMENT IS NECESSARY TO PREVENT EVIC-
TION.—The payment is necessary to prevent eviction 
of the tenant. 
(6) PAYMENTS
WILL
PROBABLY
BE
TEM-
PORARY.—There is a reasonable likelihood that the 
tenant will resume full rent payments—
(A) within 18 months after the beginning 
of the period for which payments under sub-
section (b) are to be provided; or 
(B) on termination of assistance under 
such subsection. 
(7) TENANT IS LIKELY TO REPAY.—The tenant 
is likely to repay the amounts paid on behalf of the 
tenant by the non-profit or local or State govern-
mental unit. 
(d) SUBMISSION OF APPLICATION STAYS EVICTION 
PROCEEDINGS UNTIL DISAPPROVAL OF APPLICATION.— 
The submission of an application for assistance under sub-
section (b) by any tenant who meets the requirements of 
subsection (c)(2), after eviction proceedings have begun 
shall automatically stay the proceedings until receipt of 
notification of disapproval of such application. 
(e) ALLOCATION OF GRANTS.— 
(1) ALLOCATION
FORMULA.—The Secretary 
shall allocate the amounts to be made available 
under subsection (a) so that the aggregate amount 
allocated to non-profit organizations or local or 
State governmental units in any State shall be equal 
to the sum of— 
(A)(i) the ratio of the number of unem-
ployed persons in the State to the number of
unemployed persons in the United States, mul-
tiplied by— 
(ii) 1⁄2 of the amount appropriated under 
the authority established in this section; and 
(B)(i) the ratio of the population of the 
State to the population of the United States, 
multiplied by— 
(ii) 1⁄2 of the amount so appropriated. 
(2) APPLICATION
FOR
GRANTS.—Applications 
for grants under subsection (a) shall be made by 
non-profit organizations or local or State govern-
mental units in such form, and according to such 
procedures, as the Secretary shall prescribe. 
(3) RULES FOR CONSIDERATION OF APPLICA-
TIONS.—In considering applications for grants under 
subsection (a), the Secretary shall take into ac-
count— 
(A) the degree of demonstrated need in the 
non-profit organization or local or State govern-
mental unit; 
(B) the capacity of the non-profit organi-
zation or local or State governmental unit to 
administer the program of assistance under this 
section.
(4) PROCESSING OF APPLICATIONS.—The Sec-
retary shall process applications for grants under 
subsection (a) as expeditiously as possible, and shall 
make such grants within 90 days after the effective 
date of the regulations issued by the Secretary under 
subsection (f). 
(f) REGULATIONS.—Within 90 days after the date of 
the enactment of this Act, the Secretary shall issue such 
regulations as may be necessary to carry out this section. 
(g) EMERGENCY RENT RELIEF FUND.— 
(1) ESTABLISHMENT.—There is hereby estab-
lished in the Treasury of the United States a revolv-
ing fund, to be known as the Emergency Rent Relief 
Fund. 
(2) COMPOSITION OF FUND.—The Fund shall 
consist of— 
(A) any amount approved in appropriation 
Acts for purposes of carrying out this section; 
(B) any amount received by the Secretary 
as repayment for payments made under sub-
section (b); and 
(C) any amount received by the Secretary 
from investments made under paragraph (4). 
(3) AVAILABILITY OF FUNDS.—Amounts in the 
Fund by reason of subsection (b)(6) or by reason of
investments made under paragraph (4), shall be 
available, to the extent provided in appropriation 
Acts, to the Secretary to make grants to non-profit 
organizations or local or State governmental units— 
(A) for the making of emergency rent re-
lief payments to landlords on behalf of tenants 
under subsection (b); and 
(B) for the administrative expenses associ-
ated with the making of such payments. 
(4) INVESTMENT
OF
SURPLUS
FUNDS.—Any 
amount in any account of the Fund determined by 
the Secretary to be more than the amount required 
to be in such account to carry out this section shall 
be invested by the Secretary in obligations of, or 
guaranteed as to both principal and interest by, the 
United States or any agency of the United States. 
(h) REPORT TO CONGRESS.—Within 60 days after 
the date of the enactment of this Act, and not less fre-
quently than every 90 days thereafter, the Secretary shall 
submit to the Congress a report on— 
(1) the then current rate of rent payment delin-
quencies and evictions in the rental housing market 
areas of the United States of immediate concern if 
the purposes of this section are to be achieved;
(2) the extent of, and prospect for continuance 
of, voluntary forbearance from the eviction of ten-
ants by landlords in such housing market areas; 
(3) actions taken by government agencies to en-
courage such forbearance; and 
(4) actions taken and actions likely to be taken 
with respect to making assistance under this section 
available to alleviate hardships resulting from any 
serious rates of delinquencies and evictions. 
(i) DEFINITIONS.—As used in this section: 
(1) FUND.—The term ‘‘Fund’’ means the 
Emergency Rent Relief Fund established in sub-
section (g). 
(2) LOCAL GOVERNMENTAL UNIT.—The term 
local governmental unit means any borough, city, 
county, parish, town, township, village, or other gen-
eral purpose political subdivision of a State. 
(3) MONTHLY NET INCOME OF THE TENANT.— 
The term ‘‘monthly net income of the tenant’’ means 
the monthly gross income of the tenant, less any 
Federal, State, or local income or employment taxes 
due with respect to such income. 
(4) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Housing and Urban Development.
(5) STATE.—The term ‘‘State’’ means each of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands, 
Guam, American Samoa, the Northern Mariana Is-
lands, the Trust Territory of the Pacific Islands, and 
any other territory or possession of the United 
States. 
(6) TOTAL
MONTHLY
HOUSING
EXPENSE
OF 
THE TENANT.—The term ‘‘total monthly housing ex-
pense of the tenant’’ means the sum of— 
(A) the monthly rent payment due by the 
tenant; and 
(B) the monthly utility costs of the tenant 
with respect to the tenant’s dwelling unit. 
(j) AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this section, there is authorized to be appropriated 
such sums as necessary for fiscal years 2007, 2008, 2009, 
2010, and 2011. Any amount so appropriated shall be de-
posited in the Fund and shall remain available until ex-
pended. 
(k) BORROWING AUTHORITY.—To carry out the pur-
poses of this section, the Secretary of Housing and Urban 
Development may issue to the Secretary of the Treasury 
notes or other obligations to the extent approved in appro-
priation Acts, in such forms and denominations, bearing
such maturities, and subject to such terms and conditions 
as may be prescribed by the Secretary of the Treasury. 
Such notes or other obligations shall bear interest at a 
rate determined by the Secretary of the Treasury, taking 
into consideration the average interest rate on all interest 
bearing obligations of the United States then forming a 
part of the public debt, computed at the end of the fiscal 
year next preceding the date on which the loan is made. 
The Secretary of the Treasury shall purchase any notes 
and obligations issued hereunder and for that purpose the 
Secretary of the Treasury may use as a public debt trans-
action the proceeds from the sale of any securities issued 
under chapter 31 of title 31, United States Code; and the 
purposes for which securities may be issued under such 
chapter are extended to include any purchase of such 
notes or other obligations. The Secretary of the Treasury 
may at any time sell any of the notes or other obligations 
acquired by the Secretary of the Treasury under this sec-
tion. All redemptions, purchases and sales by the Sec-
retary of the Treasury of such notes or other obligations 
shall be treated as public debt transactions of the United 
States. The Secretary of Housing and Urban Development 
may not issue notes or other obligations to the Secretary 
of the Treasury pursuant to this section except as ap-
proved in appropriation Acts.
SEC. 305. INCOME EXEMPTIONS. 
(a) WORK PERFORMED IN PUBLIC HOUSING.— 
(1) EXEMPTION
FROM
INCOME
UNDER
HUD 
PROGRAMS.—Section 3(b)(5)(A) of the United 
States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(b)(5)(A)) is amended by adding at the end 
the following new clause: 
‘‘(viii) WORK
PERFORMED
IN
PUBLIC 
HOUSING.—The amount of any earned income 
of any member of the family for work per-
formed for the public housing agency at a loca-
tion owned by the agency.’’. 
(2) EXEMPTION FROM INCOME UNDER OTHER 
FEDERAL
PROGRAMS.—Notwithstanding any other 
provision of law, the amount of any earned income 
of any member of the family residing in public hous-
ing (as such term is defined in section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(b)) for work performed for the public housing 
agency that administers such housing at a location 
owned by the agency may not be considered as in-
come or a resource for the purpose of determining 
eligibility for, or the amount of the benefits or serv-
ices to be provided under, any Federal or federally 
assisted program that provides benefits or services 
based in whole or in part, on need.
(b) CHILD SUPPORT PAYMENTS.—Clause (v) of sec-
tion 3(b)(5)(A) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)(5)(A)(v)) is amended to read as fol-
lows: 
‘‘(v) CHILD SUPPORT PAYMENTS.—50 per-
cent of the amount of any payment made by a 
member of the family for the support and main-
tenance of any child who does not reside in the 
household.’’. 
SEC. 306. POST OFFICE BOX AND GENERAL DELIVERY 
SERVICE FOR PERSONS WITH NO FIXED AD-
DRESS. 
Section 404 of title 39, United States Code, is 
amended by adding at the end the following: 
‘‘(c) In an effort to assist persons with no fixed ad-
dress— 
‘‘(1) a homeless person’s application for post of-
fice box service may be approved if the applicant— 
‘‘(A) is personally known to the postmaster 
or clerk; 
‘‘(B) submits proper identification, such as 
(i) a valid driver’s license or other credential 
showing the applicant’s signature and a serial 
number, or (ii) other indicia that can be traced 
to the bearer; or
‘‘(C) provides a verifiable point of contact, 
such as a place of employment, shelter, chari-
table institution, or social service office; or 
‘‘(2) a homeless person may receive indefinite 
general delivery service, as provided under regula-
tions or other standards of the United States Postal 
Service, if such person— 
‘‘(A) is unable to meet the conditions 
under paragraph (1); 
‘‘(B) meets the conditions under paragraph 
(1), but opts for service under this paragraph 
because the service described in paragraph (1) 
is not available; or 
‘‘(C) otherwise opts for service under this 
paragraph instead of the service described in 
paragraph (1).’’. 
SEC. 307. TEMPORARY EX-OFFENDER LOW-INCOME HOUS-
ING CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45N. EX-OFFENDER LOW-INCOME HOUSING CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
amount of the ex-offender low-income housing credit de-
termined under this section for any taxable year in the 
credit period shall be an amount equal to— 
‘‘(1) the applicable percentage of 
‘‘(2) the qualified basis of each qualified ex-of-
fender residential building. 
‘‘(b) APPLICABLE PERCENTAGE.—In the case of any 
qualified ex-offender residential building, the term ‘appli-
cable percentage’ has the meaning given such term in sec-
tion 42(b)(2) with respect to qualified low-income build-
ings, except that, for the purposes of this subsection, the 
percentages prescribed by the Secretary under section 
42(b)(2)(B) shall yield amounts of credit which have a 
present value equal to 70 percent of the qualified basis 
of any qualified ex-offender residential building. 
‘‘(c) QUALIFIED BASIS.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(a) and except as otherwise provided in this sub-
section, the term ‘qualified basis’ means the ad-
justed basis of a qualified ex-offender residential 
building as of the close of the 1st taxable year of the 
credit period. 
‘‘(2) QUALIFIED BASIS TO INCLUDE PORTION 
OF BUILDING USED TO PROVIDE EX-OFFENDER SUP-
PORT SERVICES.—The qualified basis of any quali-
fied ex-offender residential building for any taxable 
year shall be increased by the lesser of— 
‘‘(A) so much of the qualified basis of such 
building as is used throughout the year to pro-
vide ex-offender support services, or 
‘‘(B) 20 percent of the qualified basis of 
such building (determined without regard to 
this paragraph). 
‘‘(3) SPECIAL
RULES.—Rules similar to the 
rules of paragraphs (4), (5) (other than subpara-
graph (A) thereof), and (7) of section 42(d) shall 
apply in determining the adjusted basis of any quali-
fied ex-offender residential building. 
‘‘(d) REHABILITATION EXPENDITURES.—Rules simi-
lar to the rules of section 42(e) shall apply in determining 
the treatment of rehabilitation expenditures paid or in-
curred by the taxpayer with respect to a qualified ex-of-
fender residential building. 
‘‘(e) CREDIT PERIOD.—For purposes of this section, 
rules similar to the rules of section 42(f) shall apply in 
determining the credit period with respect to any qualified 
ex-offender residential building. 
‘‘(f) 
QUALIFIED
EX-OFFENDER
RESIDENTIAL 
BUILDING.—For purposes of this section, the term ‘quali-
fied ex-offender residential building’ means any building
which, at all times during the compliance period, meets 
the following requirements: 
‘‘(1) SINGLE OCCUPANCY EX-OFFENDER RESI-
DENTIAL
UNITS.—Each residential unit in such 
building may be made available for occupancy to not 
more than 1 individual. Such individual must be an 
ex-offender who— 
‘‘(A) meets the residency requirements 
under subsection (g); 
‘‘(B) has failed to meet such requirements 
for fewer than 14 days; or 
‘‘(C) is in the process of being evicted from 
such building for failing to meet such require-
ments. 
A building shall not be determined to fail to satisfy 
the requirements of this paragraph solely because 
some or all of the residential units in such building 
are single room occupancy (as defined in section 
(8)(n) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(n))). 
‘‘(2) SELF-SUFFICIENCY CENTERS FOR EX-OF-
FENDERS.—The building shall include a self-suffi-
ciency center for ex-offenders that— 
‘‘(A) is specifically designed to accommo-
date, and reserved for, the provision of ex-of-
fender support services to residents of the facil-
ity and other ex-offenders; 
‘‘(B) is made available for rental by pro-
viders of such services at a rate determined by 
the owner of the facility; and 
‘‘(C) provides an array of such services 
sufficient to meet a significant portion of the 
needs of ex-offenders for ex-offender support 
services. 
‘‘(3) RENT LIMITATIONS.—The portion of the 
monthly rent payable by the occupant of each unit 
in the building may not exceed 30 percent of the ad-
justed monthly income (as such term is defined in 
section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b)) of the occupant. 
‘‘(g) RESIDENCY REQUIREMENTS.— 
‘‘(1) IN GENERAL.—An ex-offender meets the 
residency requirements for a qualified ex-offender 
residential building if such ex-offender— 
‘‘(A) has a low income; 
‘‘(B) is participating in an ex-offender sup-
port services program as described in paragraph 
(3)(B); 
‘‘(C) has not been prohibited from resi-
dency under paragraph (4); and
‘‘(D) commences occupancy of a unit in a 
qualified ex-offender residential building on a 
date that is not later than— 
‘‘(i) in the case of an ex-offender who 
has been discharged from prison, jail, a 
half-way house, or any other correctional 
facility, 12 months after such discharge; or 
‘‘(ii) in the case of any ex-offender 
whose sentence did not include confine-
ment to a correctional facility, 12 months 
after the date of the ex-offender’s convic-
tion. 
‘‘(2) LOW-INCOME.—For purposes of this sec-
tion, an ex-offender is considered to have a low in-
come if, at the commencement of the ex-offender’s 
occupancy of a residential unit, the income (if any) 
of the ex-offender does not exceed 60 percent of area 
median gross income (as determined consistent with 
section 8 of the United States Housing Act of 
1937). 
‘‘(3) PARTICIPATION
IN
EX-OFFENDER
SUP-
PORT SERVICES PROGRAM.— 
‘‘(A) PROGRAM.—For purposes of this sec-
tion, an ex-offender support services program is 
a program for the provision of specific ex-of-
100 
fender support services for an ex-offender 
that— 
‘‘(i) is created and managed by a co-
ordinating individual or entity having edu-
cation, training, and experience with ex-of-
fenders and their support services needs; 
‘‘(ii) is specifically designed to meet 
the needs of the particular ex-offender for 
ex-offender support services; 
‘‘(iii) sets forth a specific duration 
over which the ex-offender support services 
are to be provided and goals by which to 
assess the progress of the ex-offender; and 
‘‘(iv) provides for continual oversight 
to monitor the progress and needs of the 
ex-offender and to ensure that the ex-of-
fender is being provided the appropriate 
ex-offender support services and is com-
plying with the requirements of the pro-
gram. 
‘‘(B) PARTICIPATION.—For purposes of 
this section, an ex-offender is considered to be 
participating in an ex-offender support services 
program if the ex-offender—
101 
‘‘(i) has entered into a written agree-
ment with the coordinator for the program 
that— 
‘‘(I) sets forth the ex-offender 
support services that are appropriate 
for, and will be made available to, the 
ex-offender and the duration of the 
program for the ex-offender; and 
‘‘(II) provides that the ex-offend-
er’s continued attendance at scheduled 
program meetings and events and ob-
taining of program services are a con-
dition of the ex-offender’s continued 
residency in the facility; and 
‘‘(ii) is not in default with regard to 
the ex-offender’s obligations under such 
agreement. 
‘‘(C) EX-OFFENDER SUPPORT SERVICES.— 
For purposes of this section, the term ‘ex-of-
fender support services’ means services that as-
sist ex-offenders to develop skills necessary for 
life outside of the environment of a correctional 
institution, and includes— 
‘‘(i) job training;
102 
‘‘(ii) 
employment 
counseling 
and 
placement; 
‘‘(iii) entrepreneurial training; 
‘‘(iv) financial management training; 
‘‘(v) homeownership and rental coun-
seling; 
‘‘(vi) drug and alcohol abuse coun-
seling; 
‘‘(vii) self-esteem and peer develop-
ment assistance; 
‘‘(viii) anger management counseling; 
‘‘(ix) health care services, including 
mental health services and behavioral 
counseling; 
‘‘(x) probation services; 
‘‘(xi) family and crisis management 
counseling; and 
‘‘(xii) general educational assistance 
and counseling. 
‘‘(4) LIMITATION ON TERM OF RESIDENCY.— 
An ex-offender may not reside in an ex-offender resi-
dential facility at any time after the expiration of 
the 2-year period beginning upon the commencement 
of the ex-offender’s occupancy in the ex-offender res-
idential facility.
103 
‘‘(h) EX-OFFENDER.—For purposes of this section, 
the term ‘ex-offender’ means any individual who has been 
convicted of a felony under State or Federal law. 
‘‘(i) ALLOCATION AND DETERMINATION OF CRED-
IT.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, rules similar to the rules of 
section 42(h) (other than subparagraphs (E) and 
(F) of paragraph (1) thereof) shall apply with re-
spect to allocating and determining any credit under 
this section. 
‘‘(2) STATE
HOUSING
CREDIT
CEILING.—For 
purposes of this section: 
‘‘(A) IN
GENERAL.—The State housing 
credit ceiling shall be calculated by substituting 
the 
amount 
determined 
under 
section 
42(h)(3)(C)(ii) with the greater of— 
‘‘(i) $85,000,000 multiplied by the 
State ratio, or 
‘‘(ii) $500,000. 
‘‘(B) TERMINATION.—The State housing 
credit ceiling applicable to any State for any 
calendar year beginning after December 31, 
2010, shall be zero.
104 
‘‘(C) STATE RATIO.—The State ratio for 
any State is equal to— 
‘‘(i) the reported number of sentenced 
prisoners released from State or Federal 
jurisdiction in such State during the most 
recent year for which information is avail-
able, divided by 
‘‘(ii) the reported number of sen-
tenced prisoners released from State or 
Federal jurisdiction in the United States 
during the most recent year for which in-
formation is available. 
‘‘(D) REPORTED NUMBER OF SENTENCED 
PRISONERS.—The reported number of sen-
tenced prisoners is the number of such pris-
oners reported to the Attorney General by the 
National Prison Statistics Program. 
‘‘(3) INVOLVEMENT OF QUALIFIED NON-PROFIT 
ORGANIZATIONS.—For purposes of this section, sec-
tion 42(h)(5)(A) shall be applied by substituting ‘0’ 
for ‘90’. 
‘‘(j) RECAPTURE OF CREDIT.—Rules similar to the 
rules of subsections (i)(1) and (j) of section 42 shall apply 
for purposes of this section.
105 
‘‘(k) APPLICATION OF AT-RISK RULES.—Rules simi-
lar to the rules of section 42(k) shall apply for purposes 
of this section. 
‘‘(l) CERTIFICATION AND OTHER REPORTS TO SEC-
RETARY.—Subject to such regulations as the Secretary 
may prescribe, rules similar to the rules of section 42(l) 
shall apply for purposes of this section. 
‘‘(m) RESPONSIBILITIES OF THE SECRETARY AND 
HOUSING CREDIT AGENCIES.—Rules similar to the rules 
of subsections (m) and (n) of section 42 shall apply for 
purposes of this section.’’. 
(b) INCLUSION AS CURRENT YEAR BUSINESS CRED-
IT.—Section 38(b) of the Internal Revenue Code of 1986 
is amended by striking ‘‘and’’ at the end of paragraph 
(25), by striking the period at the end of paragraph (26) 
and inserting ‘‘, and’’, and by adding at the end the fol-
lowing new paragraph: 
‘‘(27) the ex-offender low-income housing credit 
under section 45N(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45N. Ex-offender low-income housing credit.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to qualified ex-of-
106 
fender residential buildings placed in service during tax-
able years beginning after December 31, 2005. 
SEC. 308. ESCROW OF TENANT RENT IN CASES OF OWNER 
FAILURE 
TO 
MAINTAIN 
UNITS 
ASSISTED 
UNDER SECTION 8 RENTAL ASSISTANCE PRO-
GRAM. 
Section 8(o)(8) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(8)) is amended by adding at 
the end the following new subparagraph: 
‘‘(F) ESCROW OF TENANT RENT IN CASES 
OF OWNER FAILURE TO MAINTAIN UNIT.—Each 
housing assistance payment contract under this 
subsection shall provide as follows: 
‘‘(i) REQUIREMENT.—In any case in 
which a public housing agency suspends 
assistance payments under this subsection 
with respect to a dwelling unit because of 
a failure on the part of the owner of the 
unit to maintain the unit in compliance 
with the housing quality standards estab-
lished pursuant to this paragraph, the 
agency shall— 
‘‘(I) require the tenant to sus-
pend payment to the owner of the ten-
ant’s monthly contribution toward
107 
rent and require the tenant to pay 
such amount into an escrow account 
established by the agency; and 
‘‘(II) notify the tenant and the 
owner of the failure to maintain the 
unit in compliance with such housing 
quality standards and of the actions 
required under this subparagraph. 
‘‘(ii) CORRECTION
OF
NONCOMPLI-
ANCE.—If the owner corrects the non-
compliance within the period of time estab-
lished by the agency for such purpose, the 
public housing agency shall release to the 
owner any tenant payments toward rent 
deposited in the escrow account. 
‘‘(iii) FAILURE
TO
CORRECT
NON-
COMPLIANCE.—If the owner fails to correct 
the noncompliance within the period of 
time established by the agency and the ten-
ant moves from the dwelling unit because 
of such noncompliance, the public housing 
agency shall make the any tenant pay-
ments toward rent that are deposited in 
the escrow account available on behalf of 
the tenant upon such move for costs of the
108 
move and for rental of a new dwelling 
unit.’’. 
SEC. 309. SENSE OF CONGRESS REGARDING LOCAL ORDI-
NANCES THAT DISADVANTAGE HOMELESS 
PERSONS. 
It is the sense of the Congress that units of general 
local government that receive grants under the community 
development block grant program under title I of the 
Housing and Community Development Act of 1974 (42 
U.S.C. 5301 et seq.) or the HOME investments partner-
ships program under the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12721 et seq.)— 
(1) should not pass ordinances or fund 
projects— 
(A) that have a disparate impact on home-
less persons or that punish homeless persons 
for carrying out life-sustaining practices in pub-
lic spaces when no alternative public spaces are 
available; or 
(B) relating to curfews or runaways and 
that result in homeless youths being adju-
dicated as delinquent; and 
(2) should not pass zoning ordinances or make 
zoning decisions that have the effect of preventing