Title: Affordable and Homeless Housing Incentives Act of 2020
Policy area: Taxation

Summary:
Affordable and Homeless Housing Incentives Act of 2020
This bill allows nonrecognition of gain, for income tax purposes, from the sale of real property to a qualified housing operator for use or development by such operator as affordable housing. The bill defines qualified housing operator to include a state or local government, a tribally designated housing entity, a community housing development organization, or a tax-exempt entity organized to provide affordable housing and which receives federal, state, or local grants to develop or operate such housing.
To be eligible for nonrecognition of gain, the seller must make the property either (1) residential rental property, not less than 75% of the units of which are affordable to low-income families; or (2) a homeless shelter.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6011 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6011

To amend the Internal Revenue Code of 1986 to allow for nonrecognition 
      of gain on real property sold for use as affordable housing.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 27, 2020

  Mr. Schiff 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 allow for nonrecognition 
      of gain on real property sold for use as affordable housing.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable and Homeless Housing 
Incentives Act of 2020''.

SEC. 2. NONRECOGNITION OF GAIN ON PROPERTY SOLD FOR USE AS AFFORDABLE 
              HOUSING.

    (a) In General.--Section 1033 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (k) as subsection (l) and by 
inserting after subsection (j) the following new subsection:
    ``(k) Sales for Use as Affordable Housing.--
            ``(1) In general.--For purposes of this subtitle, if real 
        property is sold or otherwise transferred to a qualified 
        housing operator for use or development by such operator as 
        affordable housing and such property meets the requirements of 
        paragraph (3), such sale or transfer shall be treated as an 
        involuntary conversion to which this section applies.
            ``(2) Qualified housing operator.--For purposes of this 
        section, the term `qualified housing operator' means any of the 
        following:
                    ``(A) A State or local government, or any political 
                subdivision or instrumentality thereof.
                    ``(B) A tribally designated housing entity (as such 
                term is defined in section 4 of the Native American 
                Housing Assistance and Self-Determination Act of 1996).
                    ``(C) A community housing development organization 
                (as such term is defined in section 104 of the 
                Cranston-Gonzalez National Affordable Housing Act).
                    ``(D) An organization--
                            ``(i) described in section 501(c) and 
                        exempt from taxation under section 501(a),
                            ``(ii) the purpose of which includes 
                        providing affordable housing, and
                            ``(iii) which--
                                    ``(I) has received Federal, State, 
                                or local grant funds to develop or 
                                operate affordable housing, or
                                    ``(II) is described in section 
                                42(h)(5)(B) with respect to a qualified 
                                low-income housing project that is 
                                allocated housing credit dollar amounts 
                                under section 42.
            ``(3) Affordable housing requirement.--The requirements of 
        this paragraph are met with respect to property if such 
        property has, as of the date of the sale or transfer referred 
        to in paragraph (1), a legal restriction or agreement 
        sufficient to obligate any owner to make (at all times during 
        the 30-year period beginning on such date) such property 
        either--
                    ``(A) residential rental property (within the 
                meaning of section 168) not less than 75 percent of the 
                units of which are affordable to low-income families 
                and either occupied by or available for use by low-
                income residents, or
                    ``(B) a shelter eligible for assistance under title 
                IV of the McKinney-Vento Homeless Assistance Act.
            ``(4) Special rule with respect to period within which 
        property must be replaced.--In the case of a sale or transfer 
        described in paragraph (1), subsection (a)(2)(B)(i) shall be 
        applied by substituting `3 years' for `2 years'.
            ``(5) Special rule for real property held for productive 
        use in trade or business.--For purposes of subsection (a), if 
        the real property described in paragraph (1) is held for 
        productive use in a trade or business or for investment, 
        property of a like kind to be held either for productive use in 
        a trade or business or for investment shall be treated as 
        property similar or related in service or use to the property 
        so described.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to sales and transfers after the date of the enactment of this Act.
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