Save Affordable Housing Act of 2019

Bill: 116-s-1956
Sponsor: full_name: Sen. Wyden, Ron [D-OR]
Introduced: 2019-06-25
Policy area: Taxation
Subjects: Housing supply and affordability

Income tax credits

Low- and moderate-income housing
Latest action: action_date: 2019-06-25
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-06-25
action_desc: Introduced in Senate
text: <p><strong>Save Affordable Housing Act of 2019 </strong></p> <p>This bill amends the Internal Revenue Code, with respect to the low-income housing tax credit, to repeal the qualified contract option for a building that received its allocation of housing credit dollar amount before January 1, 2019, or received before that date, a determination from the bond issuer or housing credit agency of its eligibility to receive an allocation of a housing credit dollar amount. </p> <p>Under current law, properties subject to the low-income housing tax credit are subject to a 30-year affordability period, during which the value of properties is set at a below market rate. The qualified contract option allows property owners, in some cases,&nbsp;to convert to market rate after 15 years. </p>

tv_txt: II 116th CONGRESS 1st Session S. 1956 IN THE SENATE OF THE UNITED STATES June 25, 2019 Mr. Wyden (for himself, Mr. Young , Mr. Cardin , and Mr. Brown ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to repeal the qualified contract exception to the extended low-income housing commitment rules for purposes of the low-income housing credit, and for other purposes.

1. Short title This Act may be cited as the Save Affordable Housing Act of 2019 . 2. Repeal of qualified contract option (a) Termination of option for certain buildings (1) In general Subclause (II) of section 42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is amended by inserting in the case of a building described in clause (iii), before on the last day . (2) Buildings described Subparagraph (E) of section 42(h)(6) of such Code is amended by adding at the end the following new clause: (iii) Buildings described A building described in this clause is a building— (I) which received its allocation of housing credit dollar amount before January 1, 2019, or (II) in the case of a building any portion of which is financed as described in paragraph (4), which received before January 1, 2019, a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building is eligible to receive an allocation of housing credit dollar amount under the rules of paragraphs (1) and (2) of subsection (m). . (b) Rules relating to existing projects Subparagraph (F) of section 42(h)(6) of the Internal Revenue Code of 1986 is amended by striking the nonlow-income portion and all that follows and inserting the nonlow-income portion and the low-income portion of the building for fair market value (determined by the housing credit agency by taking into account the rent restrictions required for the low-income portion of the building to continue to meet the standards of paragraphs (1) and (2) of subsection (g)). The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this paragraph. . (c) Conforming amendments (1) Paragraph (6) of section 42(h) of the Internal Revenue Code of 1986 is amended by striking subparagraph (G) and by redesignating subparagraphs (H), (I), (J), and (K) as subparagraphs (G), (H), (I), and (J), respectively. (2) Subclause (II) of section 42(h)(6)(E)(i) of such Code, as amended by subsection (a), is further amended by striking subparagraph (I) and inserting subparagraph (H) . (d) Technical amendment Subparagraph (I) of section 42(h)(6) of the Internal Revenue Code of 1986, as redesignated by subsection (c), is amended by striking agreement and inserting commitment . (e) Effective date The amendments made by this section shall apply to buildings with respect to which a written request described in section 42(h)(6)(H) of the Internal Revenue Code of 1986 is submitted after the date of the enactment of this Act.