Title: Opportunity Starts At Home Act
Policy area: Taxation

Summary:
Opportunity Starts At Home Act
This bill allows a new tax credit for contributions to a reserve fund for low-income housing supportive services. These services include health services, job training, financial counseling, and resident engagement services and are provided at no cost to tenants of a qualified low-income building.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7351 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 7351

To amend the Internal Revenue Code of 1986 to provide a credit for low-
                  income housing supportive services.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 2020

   Mr. Gomez (for himself, Mr. Panetta, Ms. Sanchez, Mr. Thompson of 
 California, and Ms. Judy Chu of California) 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 a credit for low-
                  income housing supportive services.

    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 ``Opportunity Starts At Home Act''.

SEC. 2. CREDIT FOR LOW-INCOME HOUSING SUPPORTIVE SERVICES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 42 the following new section:

``SEC. 42A. CREDIT FOR CONTRIBUTIONS TO LOW-INCOME HOUSING SUPPORTIVE 
              SERVICES.

    ``(a) In General.--For purposes of section 38, the amount of the 
low-income housing supportive services credit determined under this 
section for the applicable taxable year is an amount equal to 25 
percent of the qualified supportive housing contribution made by the 
taxpayer.
    ``(b) Qualified Supportive Housing Contribution.--For purposes of 
this section--
            ``(1) In general.--The term `qualified supportive housing 
        contribution' means the total amount contributed in cash by the 
        taxpayer to a qualified supportive housing reserve fund with 
        respect to a qualified low-income building, determined as of 
        the date the building is placed in service.
            ``(2) Qualified supportive housing reserve fund.--The term 
        `qualified supportive housing reserve fund' means, with respect 
        to any qualified low-income building, a separate fund reserved 
        exclusively for payment for qualified supportive services 
        provided to tenants of the building pursuant to an extended 
        supportive services commitment. The owner of such building 
        shall designate an administrator to separately account for the 
        amounts in the fund in such manner as the Secretary may 
        prescribe.
            ``(3) Limitations.--
                    ``(A) In general.--No amount attributable to any 
                governmental grant, including grants provided by the 
                government of any State, possession, tribe, or 
                locality, shall be taken into account under paragraph 
                (1).
                    ``(B) Dollar limitation.--The total qualified 
                supportive housing contributions taken into account 
                under this section with respect to any qualified low-
                income building shall not exceed--
                            ``(i) $120,000, multiplied by
                            ``(ii) the number of low-income units in 
                        the building which are occupied at the close of 
                        the applicable taxable year.
    ``(c) Applicable Taxable Year.--For purposes of this section, the 
term `applicable taxable year' means the 1st taxable year in the credit 
period with respect to the qualified low-income building described in 
subsection (b)(1).
    ``(d) Qualified Supportive Services.--For purposes of this section, 
the term `qualified supportive services' means services--
            ``(1) provided by the owner of a qualified low-income 
        building (directly or through contracts with a third-party 
        service provider) to tenants of the building,
            ``(2) which include health services (including mental 
        health services), coordination of tenant benefits, job 
        training, financial counseling, resident engagement services, 
        or services the principal purpose of which is to help tenants 
        retain permanent housing, or such other services as the 
        Secretary may by regulation provide,
            ``(3) which are provided at no cost to tenants, and
            ``(4) usage of or participation in which is not required 
        for tenants.
Such term includes reasonable and necessary measures for the provision 
of such services, including measures to engage tenants in and 
coordinate such services and measures required to obtain the 
certification described in subsection (e)(4).
    ``(e) Extended Supportive Services Commitment.--The term `extended 
supportive services commitment' means any agreement between the owner 
of a qualified low-income building and the housing credit agency 
which--
            ``(1) requires that amounts in a qualified supportive 
        housing reserve fund are spent exclusively on the provision of 
        qualified supportive services to tenants of such building,
            ``(2) requires that the amounts in such fund be spent 
        entirely during the extended use period, and provides for the 
        manner in which such spending will be distributed across such 
        period,
            ``(3) requires the designation of 1 or more individuals to 
        engage tenants regarding and coordinate delivery of qualified 
        supportive services,
            ``(4) requires the maintenance of an appropriate 
        certification, as determined by the Secretary after 
        consultation with housing credit agencies, for qualified 
        supportive services, subject to recertification at least once 
        every 5 years,
            ``(5) requires appropriate annual reporting to the housing 
        credit agency on expenditures and outcomes, as determined by 
        such agency, and
            ``(6) is binding on all successors in ownership of such 
        building.
    ``(f) Recapture of Qualified Supportive Housing Reserve Amounts.--
            ``(1) In general.--If the owner of a qualified low-income 
        building is determined to be noncompliant with the extended 
        supportive services commitment or extended low-income housing 
        commitment with respect to such building, any remaining amounts 
        in the qualified supportive housing reserve fund with respect 
        to such building shall be transferred to the housing credit 
        agency.
            ``(2) Use of repayments.--A housing credit agency shall use 
        any amount received pursuant to paragraph (1) only for purposes 
        of qualified low-income buildings.
    ``(g) Special Rules.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, no credit shall be allowed under this section for 
        any taxable year with respect to any qualified low-income 
        building unless--
                    ``(A) the building has received an allocation of 
                the low-income housing credit under section 42 by a 
                housing credit agency which is approved by the 
                governmental unit (in accordance with rules similar to 
                the rules of section 147(f)(2) (other than subparagraph 
                (B)(ii) thereof)) of which such agency is a part,
                    ``(B) the housing credit agency sets forth 
                selection criteria to determine appropriate, evidence-
                based supportive services and provides a procedure that 
                the agency (or an agent or other private contractor of 
                such agency) will follow in monitoring for 
                noncompliance with the provisions of this section and 
                in reporting such noncompliance to the Secretary,
                    ``(C) an extended low-income housing commitment is 
                in effect with respect to such building as of the end 
                of such taxable year,
                    ``(D) an extended supportive services commitment is 
                in effect with respect to such building as of the end 
                of such taxable year, and
                    ``(E) appropriate books and records for itemized 
                expenses and expenditures with respect to the qualified 
                supportive housing reserve fund are maintained on an 
                annual basis, and are available for inspection upon 
                request by the housing credit agency.
            ``(2) Denial of double benefit.--The deductions otherwise 
        allowed under this chapter for the taxable year shall be 
        reduced by the amount of the credit allowed under this section 
        for such taxable year.
    ``(h) Definitions.--Any term used in this section which is also 
used in section 42 shall have the same meaning as when used in such 
section.''.
    (b) Credit To Be Part of General Business Credit.--
            (1) In general.--Section 38(b) of the Internal Revenue Code 
        of 1986 is amended by striking ``plus'' at the end of paragraph 
        (32), by striking the period at the end of paragraph (33) and 
        inserting ``, plus'', and by adding at the end the following 
        new paragraph:
            ``(34) the low-income housing supportive services credit 
        determined under section 42A(a).''.
            (2) Treatment as specified credit.--Clause (iii) of section 
        38(c)(4)(B) of such Code is amended by inserting ``, and the 
        credit determined under section 42A'' after ``2007''.
    (c) Treatment for Purposes of Tax on Base Erosion Payments.--
Paragraph (4) of section 59A(b) of the Internal Revenue Code of 1986 is 
amended by redesignating subparagraphs (B) and (C) as subparagraphs (C) 
and (D), respectively, and by inserting after subparagraph (A) the 
following new subparagraph:
                    ``(B) the low-income housing supportive services 
                credit determined under section 42A(a),''.
    (d) Passive Activity Credits.--
            (1) In general.--Section 469 of the Internal Revenue Code 
        of 1986 is amended by striking ``42'' each place it appears in 
        subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) and inserting 
        ``42 or 42A''.
            (2) Conforming amendments.--The headings of subsections 
        (i)(3)(C) and (i)(6)(B) of section 469 of such Code are each 
        amended by striking ``credit'' and inserting ``credits''.
    (e) 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 inserting after the item relating to section 42 the 
following new item:

``Sec. 42A. Credit for contributions to low-income housing supportive 
                            services.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to buildings placed in service after December 31, 2020.
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