SEC. 2. NO-INCOME HOUSING CREDITS FOR AREA WAR-
RANTING 
ASSISTANCE 
DUE 
TO 
PRESI-
DENTIALLY DECLARED DISASTERS. 
(a) IN GENERAL.—Subchapter Y of chapter 1 of the 
Internal Revenue Code of 1986 (relating to short-term re-
gional benefits) is amended by adding at the end the fol-
lowing new section: 
‘‘PART III—TAX BENEFITS FOR AREAS WAR-
RANTING 
ASSISTANCE 
DUE 
TO 
PRESI-
DENTIALLY DECLARED DISASTERS 
‘‘Sec. 1400U. No-income housing credits for area warranting assistance due to 
Presidentially declared disasters. 
‘‘SEC. 1400U. NO-INCOME HOUSING CREDITS FOR AREA 
WARRANTING ASSISTANCE DUE TO PRESI-
DENTIALLY DECLARED DISASTERS. 
‘‘(a) IN GENERAL.—In the case of a building— 
‘‘(1) located within an area determined by the 
President to warrant individual or individual and 
public assistance from the Federal Government 
under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act, and 
‘‘(2) placed in service during the 5-year period 
beginning on the date of such determination, 
section 42 shall be applied with the modifications set forth 
in subsection (b). 
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‘‘(b) MODIFICATIONS.—For purposes of subsection 
(a), section 42 shall be applied as follows: 
‘‘(1) HOMELESS SHELTERS TREATED AS QUALI-
FIED LOW-INCOME BUILDING.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
low-income housing project’ shall include any 
project, if elected by the taxpayer, for a shelter 
which is used to provide temporary living ac-
commodations for homeless individuals (within 
the meaning of section 103 of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 
11302)). 
‘‘(B) ELECTION IRREVOCABLE.—Any elec-
tion under this paragraph, once made, shall be 
irrevocable. For purposes of this paragraph, 
any property shall not be treated as failing to 
be such a shelter merely because part of the 
building in which such property is located is 
used for purposes other than as such a shelter. 
‘‘(2) QUALIFIED BASIS.—In the case of a quali-
fied low-income building with respect to which an 
election has been made under paragraph (1)— 
‘‘(A) the qualified basis of such building 
for any taxable year shall be increased by so 
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much of the eligible basis of such building as is 
used throughout the year as such a shelter, and 
‘‘(B) subparagraph (E) of section 42(c)(1) 
(relating to qualified basis to include portion of 
building used to provide supportive services for 
homeless) shall not apply. 
‘‘(3) TREATED AS RESIDENTIAL RENTAL PROP-
ERTY IN DETERMINING ADJUSTED BASIS.—A quali-
fied low-income building described in paragraph (2) 
shall be treated as residential rental property for 
purposes of section 42(d)(4)(A).’’. 
(b) CLERICAL AMENDMENT.—The table of parts for 
subchapter Y of chapter 1 of such Code is amended by 
inserting after the item relating to part II the following 
new item: 
‘‘PART III. TAX BENEFITS FOR AREAS WARRANTING ASSISTANCE DUE TO 
PRESIDENTIALLY DECLARED DISASTERS.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to buildings placed in service after 
the date of the enactment of this Act. 
Æ 
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