120 
‘‘(III) in the case of a building 
containing units which are designated 
to serve extremely low-income house-
holds by the State housing credit 
agency and require the increase in 
credit under this subparagraph in 
order for such building to be finan-
cially feasible as part of a qualified 
low-income housing project, the eligi-
ble basis of such building determined 
by the portion of such units shall be 
150 percent of such basis determined 
without 
regard 
to 
this 
subpara-
graph.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations made in calendar 
years beginning after December 31, 2013. 
SEC. 605. USE OF MORTGAGE INTEREST SAVINGS FOR AF-
FORDABLE HOUSING PROGRAMS. 
(a) USE OF SAVINGS.—For each year, the Secretary 
of the Treasury shall determine the amount of revenues 
accruing to the general fund of the Treasury by reason 
of the enactment of section 602 that remain after use of 
such revenues in accordance with section 604 and shall 
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credit an amount equal to such remaining revenues as fol-
lows: 
(1) HOUSING
TRUST
FUND.—The Secretary 
shall credit the Housing Trust Fund established 
under section 1338 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4568) with an amount equal to 60 per-
cent of the amount of such remaining revenues. 
(2) SECTION 8 RENTAL ASSISTANCE.—The Sec-
retary shall credit an amount equal to 30 percent of 
the amount of such remaining revenues to the Sec-
retary of Housing and Urban Development for use 
only for providing tenant- and project-based rental 
assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f). 
(3) PUBLIC
HOUSING
CAPITAL
FUND.—The 
Secretary shall credit an amount equal to 10 percent 
of the amount of such remaining revenues to the 
Public Housing Capital Fund under section 9(d) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437g(d)). 
(b) CHANGES TO HOUSING TRUST FUND.—Not later 
than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall revise the regula-
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122 
tions relating to the Housing Trust Fund established 
under section 1338 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568) to provide that such section is carried out with the 
maximum amount of flexibility possible while complying 
with such section, which shall include revising such regula-
tions— 
(1) to increase the limitation on amounts from 
the Fund that are available for use for operating as-
sistance for housing; 
(2) to allow public housing agencies and tribally 
designated housing entities to be recipient of grants 
amounts from the Fund that are allocated to a State 
or State designated entity; and 
(3) eliminate the applicability of rules for the 
Fund that are based on the HOME Investment 
Partnerships Act (42 U.S.C. 1721 et seq.). 
TITLE VII—LOW-INCOME HOUS-
ING TAX CREDIT FOR HOME-
LESS YOUTH 
SEC. 701. STUDENTS WHO WERE HOMELESS YOUTHS OR 
HOMELESS VETERANS PERMITTED TO OC-
CUPY LOW-INCOME HOUSING UNITS. 
(a) IN GENERAL.—Section 42(i)(3)(D)(i) of the In-
ternal Revenue Code of 1986 is amended by redesignating 
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subclauses (II) and (III) as subclauses (IV) and (V) and 
inserting after subclause (I) the following new subclauses: 
‘‘(II) a student who was (prior to 
occupying such unit) a homeless child 
or youth (as defined in section 725 of 
the McKinney-Vento Homeless Assist-
ance Act), 
‘‘(III) a student who was (prior 
to occupying such unit) a homeless 
veteran (as defined in section 2002 of 
title 38, United States Code),’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to determinations made on or after 
the date of the enactment of this Act. 
TITLE VIII—RENTERS TAX 
CREDIT 
SEC. 801. RENTERS TAX 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. 45S. RENTERS CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of a qualified credit recipient, the renters credit 
for any taxable year is an amount equal to the sum of 
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the renters credit amounts allocated to such qualified 
credit recipient under this section for months ending dur-
ing the taxable year. 
‘‘(b) RENTERS CREDIT AMOUNT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘renters credit amount’ means the 
rent reduction amount with respect to each rental 
unit which is occupied by a qualified renter. 
‘‘(2) QUALIFIED
RENTER.—For purposes of 
this section, the term ‘qualified renter’ means a fam-
ily unit with income not greater than the higher of— 
‘‘(A) 60 percent of local median income, or 
‘‘(B) 150 percent of the Federal poverty 
line, 
in each case as determined by the Secretary of 
Housing and Urban Development for a family of the 
size involved. 
‘‘(3) RENT
REDUCTION
AMOUNT.—For pur-
poses of this section— 
‘‘(A) IN GENERAL.—The term ‘rent reduc-
tion amount’ is the amount by which the fair 
market rent for the unit involved exceeds the 
rent charged to the qualified renter. 
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‘‘(B) LIMITATION.—The rent reduction 
amount taken into account under this section 
shall not exceed the excess of— 
‘‘(i) the rent charged to the qualified 
renter (or, if lower, specified modest rent), 
over 
‘‘(ii) 30 percent of the qualified rent-
ers income (prorated monthly) as deter-
mined by the renters credit agency of the 
State. 
‘‘(C) 
SPECIFIED
MODEST
RENT.—The 
term ‘specified modest rent’ means— 
‘‘(i) the Fair Market Rent determined 
by the Secretary of Housing and Urban 
Development for the ZIP code (if the unit 
is located in a metropolitan area) or non- 
metropolitan county, or 
‘‘(ii) such amount as may be deter-
mined by the State with respect to the 
area in which the unit is located if such 
amount is within 25 percent of the amount 
determined under clause (i) with respect to 
such unit. 
‘‘(D) UTILITIES.—The renters credit agen-
cy of the State may determine whether and how 
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to take into account the cost of utilities in de-
termining the rent reduction amount. 
‘‘(E) CREDIT ADJUSTMENT.—The renters 
credit agency of the State may elect to increase 
the rent reduction amount such that such 
amount does not exceed 110 percent of such 
amount as determined without regard to this 
subparagraph. 
‘‘(c) QUALIFIED CREDIT RECIPIENT.—For purposes 
of this section, the term ‘qualified credit recipient’ means, 
with respect to any rental unit occupied by a qualified 
renter, the owner of such unit but only to the extent of 
the renters credit amounts which have been allocated to 
such person by the renters credit agency. In lieu of the 
owner of the unit, the renters credit agency may treat the 
lender of any loan to such owner as the qualified credit 
recipient if such unit secures such loan. 
‘‘(d) ALLOCATIONS BY RENTERS CREDIT AGENCY TO 
CREDIT RECIPIENTS.— 
‘‘(1) IN GENERAL.—The renters credit agency 
may make allocations of renters credit amounts to 
qualified credit recipients under this section on the 
basis of— 
‘‘(A) the identity of the qualified renter, 
such that the renters credit amount is allowed 
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to the owner of any rental unit which such 
qualified renter occupies (or the lender referred 
to in subsection (c)) for any month, or 
‘‘(B) one or more rental units, such that 
the renters credit amount is allowed to the 
owner of such units (or the lender referred to 
in subsection (c)) for such months as such units 
are occupied by a qualified renter. 
‘‘(2) RESTRICTIONS ON UNIT BASED ALLOCA-
TIONS.—A renters credit agency may make alloca-
tions of renters credit as described in paragraph 
(1)(B) only if— 
‘‘(A) such units are part of a project or 
building in which not more than 40 percent of 
the units receive allocations under this section 
(the Secretary may provide such exceptions to 
the requirement of this subparagraph as the 
Secretary determines appropriate for small 
buildings or buildings with respect to which 
more than 40 percent of the units were pre-
viously subsidized under other Federal pro-
grams), and 
‘‘(B) the Secretary has approved a mobility 
plan submitted by such renters credit agency 
which provides for an adequate method to en-
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sure that qualified renters have the ability to 
move from a unit which is eligible for credit 
under this section without losing the rent sub-
sidy provided by this section. 
‘‘(e) ALLOCATIONS
OF
CREDIT
AUTHORITY
TO 
STATE AGENCIES.— 
‘‘(1) RENTERS CREDIT DOLLAR AMOUNT FOR 
AGENCIES.— 
‘‘(A) STATE LIMITATION.—The aggregate 
credit amounts which a renters credit agency 
may allocate for any calendar year is the por-
tion of the State renters credit ceiling allocated 
under this paragraph for such calendar year to 
such agency. 
‘‘(B) STATE
CEILING
INITIALLY
ALLO-
CATED
TO
STATE
HOUSING
CREDIT
AGEN-
CIES.—Except as provided in subparagraphs 
(D) and (E), the State renters credit ceiling for 
each calendar year shall be allocated to the 
renters credit agency of such State. If there is 
more than 1 renters credit agency of a State, 
all such agencies shall be treated as a single 
agency. 
‘‘(C) STATE RENTERS CREDIT CEILING.— 
The State renters credit ceiling applicable to 
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any State and any calendar year shall be an 
amount equal to the sum of— 
‘‘(i) the unused State renters credit 
ceiling (if any) of such State for the pre-
ceding calendar year, 
‘‘(ii) the greater of— 
‘‘(I) $17.50 multiplied by the 
State population, or 
‘‘(II) $20,000,000, 
‘‘(iii) the amount of State renters 
credit ceiling returned in the calendar year, 
plus 
‘‘(iv) the amount (if any) allocated 
under subparagraph (D) to such State by 
the Secretary. 
For purposes of clause (i), the unused State 
renters credit ceiling for any calendar year is 
the excess (if any) of the sum of the amounts 
described in clauses (ii) through (iv) over the 
aggregate renters credit dollar amount allocated 
for such year. 
‘‘(D) 
UNUSED
RENTERS
CREDIT 
CARRYOVERS
ALLOCATED
AMONG
CERTAIN 
STATES.— 
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‘‘(i) IN GENERAL.—The unused rent-
ers credit carryover of a State for any cal-
endar year shall be assigned to the Sec-
retary for allocation among qualified 
States for the succeeding calendar year. 
‘‘(ii) UNUSED RENTERS CREDIT CAR-
RYOVER.—For purposes of this subpara-
graph, the unused renters credit carryover 
of a State for any calendar year is the ex-
cess (if any) of— 
‘‘(I) the unused State renters 
credit ceiling for the year preceding 
such year, over 
‘‘(II) the aggregate renters credit 
dollar amount allocated for such year. 
‘‘(iii) FORMULA FOR ALLOCATION OF 
UNUSED
HOUSING
CREDIT
CARRYOVERS 
AMONG QUALIFIED STATES.—The amount 
allocated under this subparagraph to a 
qualified State for any calendar year shall 
be the amount determined by the Secretary 
to bear the same ratio to the aggregate un-
used renters credit carryovers of all States 
for the preceding calendar year as such 
State’s population for the calendar year 
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131 
bears to the population of all qualified 
States for the calendar year. For purposes 
of the preceding sentence, population shall 
be determined in accordance with section 
146(j). 
‘‘(iv) QUALIFIED
STATE.—For pur-
poses of this subparagraph, the term 
‘qualified State’ means, with respect to a 
calendar year, any State— 
‘‘(I) which allocated its entire 
State renters credit ceiling for the 
preceding calendar year, and 
‘‘(II) for which a request is made 
(not later than May 1 of the calendar 
year) to receive an allocation under 
clause (iii). 
‘‘(E) APPLICATION OF CERTAIN RULES.— 
For purposes of this paragraph, rules similar to 
the rules of subparagraphs (E), (F), and (G) of 
section 42(h)(3) shall apply. 
‘‘(F) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of a 
calendar year after 2013, the $20,000,000 
and $17.50 amounts in subparagraph (C) 
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