‘‘(K) Streamlining or shortening permit-
ting processes and timelines, including through 
one-stop and parallel-process permitting. 
‘‘(L) Eliminating or reducing off-street 
parking requirements. 
‘‘(M) Ensuring impact and utility invest-
ment fees accurately reflect required infrastruc-
ture needs and related impacts on housing af-
fordability are otherwise mitigated. 
‘‘(N) Allowing prefabricated construction. 
‘‘(O) Reducing or eliminating minimum 
unit square footage requirements. 
‘‘(P) Allowing the conversion of office units 
to apartments. 
‘‘(Q) Allowing the subdivision of single- 
family homes into duplexes. 
‘‘(R) Allowing accessory dwelling units, in-
cluding detached accessory dwelling units, on all 
lots with single-family homes. 
‘‘(S) Establishing density bonuses. 
‘‘(T) Eliminating or relaxing residential 
property height limitations. 
‘‘(U) Using property tax abatements to en-
able higher density and mixed-income commu-
nities. 
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‘‘(V) Donating vacant land for affordable 
housing development. 
‘‘(3) EFFECT OF SUBMISSION.—A submission 
under this subsection shall not be binding with re-
spect to the use or distribution of amounts received 
under section 106. 
‘‘(4) ACCEPTANCE
OR
NONACCEPTANCE
OF 
PLAN.—The acceptance or nonacceptance of any 
plan submitted under this subsection in which the 
information required under this subsection is pro-
vided is not an endorsement or approval of the plan, 
policies, or methodologies, or lack thereof.’’. 
(2) 
EFFECTIVE
DATE.—The 
requirements 
under subsection (n) of section 104 of the Housing 
and Community Development Act of 1974 (42 
U.S.C. 5304), as added by paragraph (1), shall— 
(A) take effect on the date that is 1 year 
after the date of enactment of this Act; and 
(B) apply to recipients of a grant under 
subsection (b), (d)(1), or (d)(2)(B) of section 
106 of the Housing and Community Develop-
ment Act of 1974 (42 U.S.C. 5306) before, on, 
and after such date. 
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SEC. 106. EXPANDING AND STRENGTHENING THE LOW-IN-
COME HOUSING TAX CREDIT. 
(a) INCREASES IN STATE ALLOCATIONS.— 
(1) IN
GENERAL.—Clause (ii) of section 
42(h)(3)(C) of the Internal Revenue Code is amend-
ed— 
(A) in subclause (I), by striking ‘‘$1.75’’ 
and inserting ‘‘the per capita amount’’, and 
(B) 
in 
subclause 
(II), 
by 
striking 
‘‘$2,000,000’’ and inserting ‘‘the minimum 
amount’’. 
(2) PER CAPITA AMOUNT; MINIMUM AMOUNT.— 
Section 42(h)(3) of the Internal Revenue Code of 
1986 is amended by striking subparagraphs (H) and 
(I) and inserting the following: 
‘‘(H) PER CAPITA AMOUNT.—For purposes 
of subparagraph (C)(ii)(I), the per capita 
amount shall be determined as follows: 
‘‘(i) CALENDAR YEAR 2023.—For cal-
endar year, 2023, the per capita amount is 
$3.90. 
‘‘(ii) CALENDAR YEAR 2024.—For cal-
endar year 2024, the per capita amount is 
the product of— 
‘‘(I) 1.25, and 
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‘‘(II) the dollar amount under 
clause (i) increased by an amount 
equal to— 
‘‘(aa) such dollar amount, 
multiplied by 
‘‘(bb) the cost-of-living ad-
justment determined under sec-
tion 1(f)(3) for such calendar 
year, determined by substituting 
‘calendar year 2022’ for ‘cal-
endar year 2016’ in subpara-
graph (A)(ii) thereof. 
If the amount determined after appli-
cation of the preceding sentence is not 
a multiple of $5,000, such amount 
shall be rounded to the next lowest 
multiple of $5,000. 
‘‘(iii) 
CALENDAR
YEARS
AFTER 
2024.—In the case of any calendar year 
after 2024, the per capita amount is the 
dollar amount determined under clause (ii) 
increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
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‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year, determined by 
substituting ‘calendar year 2023’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
Any amount increased under the preceding 
sentence which is not a multiple of 5 cents 
shall be rounded to the next lowest mul-
tiple of 5 cents. 
‘‘(I) MINIMUM AMOUNT.—For purposes of 
subparagraph (C)(ii)(II), the minimum amount 
shall be determined as follows: 
‘‘(i) CALENDAR YEAR 2023.—For cal-
endar year, 2023, the minimum amount is 
$4,495,000. 
‘‘(ii) CALENDAR YEAR 2024.—For cal-
endar year 2024, the minimum amount is 
the product of— 
‘‘(I) 1.25, and 
‘‘(II) the dollar amount under 
clause (i) increased by an amount 
equal to— 
‘‘(aa) such dollar amount, 
multiplied by 
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‘‘(bb) the cost-of-living ad-
justment determined under sec-
tion 1(f)(3) for such calendar 
year, determined by substituting 
‘calendar year 2022’ for ‘cal-
endar year 2016’ in subpara-
graph (A)(ii) thereof. 
If the amount determined after appli-
cation of the preceding sentence is not 
a multiple of 5 cents, such amount 
shall be rounded to the next lowest 
multiple of 5 cents. 
‘‘(iii) 
CALENDAR
YEARS
AFTER 
2024.—In the case of any calendar year 
after 2024, the minimum amount is the 
dollar amount determined under clause (ii) 
increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year, determined by 
substituting ‘calendar year 2023’ for 
‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
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Any amount increased under the preceding 
sentence which is not a multiple of $5,000 
shall be rounded to the next lowest mul-
tiple of $5,000.’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to calendar years be-
ginning after December 31, 2022. 
(b) REFORMS RELATING TO TENANT ELIGIBILITY.— 
(1) AVERAGE INCOME TEST APPLICABILITY TO 
EXEMPT FACILITY BONDS.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 142(d) of the Internal Revenue Code of 
1986 is amended— 
(i) by striking ‘‘(A) or (B)’’ and in-
serting ‘‘(A), (B), or (C)’’, and 
(ii) by inserting after subparagraph 
(B) the following new subparagraph: 
‘‘(C) AVERAGE INCOME TEST.—A project 
meets the requirements of this subparagraph if 
it meets the minimum requirements of section 
42(g)(1)(C).’’. 
(B) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to elections 
made under section 142(d)(1) of the Internal 
Revenue Code of 1986 after March 23, 2018. 
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(2) CODIFICATION OF RULES RELATING TO IN-
CREASED TENANT INCOME.— 
(A) IN
GENERAL.—Clause (i) of section 
42(g)(2)(D) of the Internal Revenue Code of 
1986 is amended by striking ‘‘clauses (ii), (iii), 
and (iv)’’ and all that follows and inserting 
‘‘clauses (ii), (iii), (iv), and (vi), notwith-
standing an increase in the income of the occu-
pants above the income limitation applicable 
under paragraph (1)— 
‘‘(I) a low-income unit shall con-
tinue to be treated as a low-income 
unit if the income of such occupants 
initially was 60 percent or less of area 
median gross income and such unit 
continues to be rent-restricted, and 
‘‘(II) a unit to which, at the time 
of initial occupancy by such occu-
pants, any Federal, State, or local 
government income restriction ap-
plied, and which subsequently becomes 
part of a building with respect to 
which rehabilitation expenditures are 
taken into account under subsection 
(e), shall be treated as a low-income 
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unit if the income of such occupants 
initially was 60 percent or less of area 
median gross income and does not ex-
ceed 120 percent of area median gross 
income as of the date of acquisition of 
the property by the taxpayer.’’. 
(B) EXCEPTION.—Subparagraph (D) of 
section 42(g)(2) of the Internal Revenue Code 
of 1986, as amended by this section, is further 
amended by adding at the end the following 
new clause: 
‘‘(vi) EXCEPTION TO RULE RELATING 
TO INCREASED TENANT INCOME.—In the 
case of an occupant of a low-income unit 
who initially qualified to occupy such unit 
by reason of paragraph (1)(C) with an in-
come in excess of 60 percent of area me-
dian gross income but not in excess of 80 
percent of area median gross income, 
clause (i) shall be applied for substituting 
‘80 percent’ for ‘60 percent’ each place it 
appears.’’. 
(C) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to taxable 
years beginning after December 31, 2022. 
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(3) MODIFICATION
OF
STUDENT
OCCUPANCY 
RULES.— 
(A) IN GENERAL.—Subparagraph (D) of 
section 42(i)(3) of the Internal Revenue Code of 
1986 is amended to read as follows: 
‘‘(D) RULES RELATING TO STUDENTS.— 
‘‘(i) IN
GENERAL.—A unit occupied 
solely by individuals who— 
‘‘(I) have not attained age 24, 
and 
‘‘(II) are enrolled in a full-time 
course of study at an institution of 
higher education (as defined in section 
3304(f)), 
shall not be treated as a low-income unit. 
‘‘(ii) EXCEPTION FOR CERTAIN FED-
ERAL PROGRAMS.—In the case of a feder-
ally-assisted building (as defined in sub-
section (d)(6)(C)(i)), clause (i) shall not 
apply to a unit all of the occupants of 
which meet all applicable requirements 
under the housing program described in 
such subsection through which the building 
is assisted, financed, or operated. 
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‘‘(iii) OTHER EXCEPTIONS.—An indi-
vidual shall not be treated as described in 
clause (i) if the individual meets the in-
come limitation applicable under subsection 
(g)(1) to the project of which the building 
is a part and— 
‘‘(I) is married, 
‘‘(II) is a person with disabilities 
(as defined in section 3(b)(3)(E) of 
the United States Housing Act of 
1937), 
‘‘(III) is a veteran (as defined in 
section 101(2) of title 38, United 
States Code), 
‘‘(IV) has 1 or more qualifying 
children 
(as 
defined 
in 
section 
152(c)), 
‘‘(V) is or has been a victim or 
threatened victim of domestic violence, 
dating violence, sexual assault, or 
stalking (as defined in section 40002 
of the Violence Against Women Act of 
1994), 
‘‘(VI) is or has been a victim of 
any form of human trafficking, or 
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‘‘(VII) is, or was prior to attain-
ing the age of majority— 
‘‘(aa) an emancipated minor 
or in legal guardianship as deter-
mined by a court of competent 
jurisdiction in the individual’s 
State of legal residence, 
‘‘(bb) under the care and 
placement responsibility of the 
State agency responsible for ad-
ministering a plan under part B 
or part E of title IV of the Social 
Security Act, or 
‘‘(cc) 
an 
unaccompanied 
youth (within the meaning of sec-
tion 725(6) of the McKinney- 
Vento Homeless Assistance Act 
(42 U.S.C. 11434a(6))) or a 
homeless child or youth (within 
the meaning of section 725(2) of 
such 
Act 
(42 
U.S.C. 
11434a(2))). 
For purposes of subclause (VI), an in-
dividual is or has been a victim of 
human trafficking if such individual 
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was subjected to an act or practice de-
scribed in paragraph (11) or (12) of 
section 103 of the Trafficking Victims 
Protection Act of 2000.’’. 
(B) EFFECTIVE
DATE.—The amendment 
made by this paragraph shall apply to taxable 
years beginning after December 31, 2023. 
(4) TENANT VOUCHER PAYMENTS TAKEN INTO 
ACCOUNT AS RENT FOR CERTAIN PURPOSES.— 
(A) IN GENERAL.—Subparagraph (B) of 
section 42(g)(2) of the Internal Revenue Code 
of 1986 is amended by adding at the end the 
following new sentence: ‘‘In the case of a 
project with respect to which the taxpayer elects 
the requirements of subparagraph (C) of para-
graph (1), or the portion of a project to which 
subsection (d)(5)(C) applies, clause (i) shall not 
apply with respect to any tenant-based assist-
ance (as defined in section 8(f)(7) of the United 
States Housing Act of 1937 (42 U.S.C. 
1437f(f)(7))).’’. 
(B) EFFECTIVE DATE.—The amendments 
made by this paragraph shall apply to rent paid 
in taxable years beginning after December 31, 
2023. 
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