I
107TH CONGRESS
2D SESSION
H. R. 3701
To amend the Internal Revenue Code of 1986 to provide for a temporary
ex-offender low-income housing credit to encourage the provision of hous-
ing, job training, and other essential services to ex-offenders through
a structured living environment designed to assist the ex-offenders in
becoming self-sufficient.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 7, 2002
Mr. DAVIS of Illinois (for himself, Mr. RANGEL, Mr. CONYERS, Mr. TOWNS,
Ms. CARSON of Indiana, Mr. THOMPSON of Mississippi, and Ms. NOR-
TON) 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
for a temporary ex-offender low-income housing credit
to encourage the provision of housing, job training, and
other essential services to ex-offenders through a struc-
tured living environment designed to assist the ex-offend-
ers in becoming self-sufficient.
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 ‘‘Public Safety Ex-Of-
fender Self-Sufficiency Act of 2002’’.
SEC. 2. TEMPORARY EX-OFFENDER LOW-INCOME HOUSING
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. 45G. 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-
(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-
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—
‘‘(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;
‘‘(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.
‘‘(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,
2007, shall be zero.
‘‘(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.
‘‘(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 adding at the end the following new para-
graph:
‘‘(13) the ex-offender low-income housing credit
under section 45G(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. 45G. Ex-offender low-income housing credit.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply with respect to qualified ex-of-
fender residential buildings placed in service during tax-
able years beginning after December 31, 2002.
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