I
105TH CONGRESS
1ST SESSION
H. R. 1102
To amend the Internal Revenue Code of 1986 to provide tax incentives
to encourage the preservation of low-income housing.
IN THE HOUSE OF REPRESENTATIVES
MARCH 18, 1997
Mr. JEFFERSON 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
tax incentives to encourage the preservation of low-in-
come housing.
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 ‘‘Low-Income Housing
Preservation Act of 1997’’.
SEC. 2. 15-YEAR RECOVERY PERIOD.
(a) GENERAL RULE.—Subsection (c) of section 168
of the Internal Revenue Code of 1986 (relating to applica-
ble recovery period) is amended—
(1) by striking ‘‘as provided in paragraph (2)’’
in paragraph (1) and inserting ‘‘as otherwise pro-
vided in this subsection’’,
(2) by redesignating paragraph (2) as para-
graph (3), and
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) LOW-INCOME
HOUSING.—In the case of
any residential rental property which is part of a
qualified low-income housing project (as defined in
subsection (i)(14)), the applicable recovery period
shall be 15 years.’’
(b) QUALIFIED LOW-INCOME HOUSING PROJECT.—
Subsection (i) of section 168 of such Code is amended by
adding at the end the following new paragraph:
‘‘(14) 
QUALIFIED
LOW-INCOME
HOUSING
PROJECT.—
‘‘(A) IN GENERAL.—For purposes of this
section, the term ‘qualified low-income housing
project’ means any project for residential rental
property if—
‘‘(i) such project is assisted under a
specified HUD program,
‘‘(ii) 50 percent or more of the resi-
dential units in such project—
‘‘(I) in the case of a project de-
scribed in clause (i) or (ii) of subpara-
graph (C), are occupied by individuals
whose income (at the time of their ini-
tial occupancy in such project) was
less than 80 percent of the area me-
dian gross income (as of such time),
or
‘‘(II) in the case of a project de-
scribed in clause (iii) or (iv) of sub-
paragraph (C), are units with respect
to which rental assistance is provided
under section 8 of the United States
Housing Act of 1937 (42 U.S.C.
1437f),
‘‘(iii) such project was originally
placed in service at least 10 years before
the taxpayer acquired an interest in such
project,
‘‘(iv) such project is substantially re-
habilitated,
‘‘(v) the taxpayer acquired such tax-
payer’s interest in such project by pur-
chase, and
‘‘(vi) such project was not previously
placed in service by the taxpayer or by any
person who was a related person (as de-
fined in section 42(d)(2)(D)(iii)) with re-
spect to the taxpayer as of the time pre-
viously placed in service.
‘‘(B) DENIAL
OF
DOUBLE
BENEFIT.—A
project shall not be treated as a qualified low-
income housing project if the taxpayer (or any
other person holding an interest in such
project) claims any benefits with respect to
such project under—
‘‘(i) section 42 (relating to low-income
housing credit),
‘‘(ii) section 47 (relating to rehabilita-
tion credit),
‘‘(iii) the Low-Income Housing Pres-
ervation and Resident Homeownership Act
of 1990 (12 U.S.C. 4101 et seq.), or
‘‘(iv) the Emergency Low-Income
Housing Preservation Act of 1987 pursu-
ant to section 604 of the Cranston-Gon-
zalez National Affordable Housing Act (12
U.S.C. 4101 note).