LIFELINE Act

Bill: 117-s-4181
Sponsor: full_name: Sen. Leahy, Patrick J. [D-VT]
Introduced: 2022-05-11
Policy area: Housing and Community Development
Subjects: Cardiovascular and respiratory health

Congressional oversight

Emergency medical services and trauma care

Government lending and loan guarantees

Housing and community development funding

Housing supply and affordability

Income tax credits

Infectious and parasitic diseases

Low- and moderate-income housing

Residential rehabilitation and home repair

State and local finance

State and local government operations
Latest action: action_date: 2022-05-11
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2022-05-11
action_desc: Introduced in Senate
text: <p><strong>LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence Act or the LIFELINE Act</strong></p> <p>This bill permits states, territories, or tribal governments to use State and Local Fiscal Recovery Funds to finance qualified low-income housing projects (i.e., projects for residential rental property meeting certain income tests) with loans obligated by December 31, 2024, and having maturities of 30 or more years.</p>

tv_txt: II 117th CONGRESS 2d Session S. 4181 IN THE SENATE OF THE UNITED STATES May 11 (legislative day, May 10), 2022 Mr. Leahy (for himself, Ms. Collins , Mr. Wyden , Mr. Bennet , Ms. Cortez Masto , Mr. King , Ms. Hassan , Mr. Padilla , Mr. Reed , Mr. Sanders , and Mr. Whitehouse ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title VI of the Social Security Act to allow coronavirus State and local fiscal recovery funds to be used for low-income housing credit projects.

1. Short title This Act may be cited as the LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence Act or the LIFELINE Act . 2. Authority to use coronavirus State and local fiscal recovery funds for low-income housing credit projects (a) In general Title VI of the Social Security Act ( 42 U.S.C. 801 et seq. ) is amended— (1) in section 602— (A) in subsection (a)(1), by inserting (except as provided in subsection (c)(5)) after December 31, 2024 ; and (B) in subsection (c)— (i) in paragraph (1), in the matter preceding subparagraph (A), by striking paragraph (3) and inserting paragraphs (3), (4), and (5) ; and (ii) by adding at the end the following new paragraph: (5) Use of funds for low-income housing credit projects (A) In general A State, territory, or Tribal government, in consultation with a housing finance agency, may use funds provided under this section to finance the cost of construction of 1 or more new qualified low-income buildings (as defined in section 42(c)(2) of the Internal Revenue Code of 1986), or the cost of rehabilitation expenditures (as defined in section 42(e)(2) of such Code), which are expected to be eligible for the low-income housing credit under section 42 of such Code in an amount greater than $0, including credits described in subsection (h)(4) thereof. The financing permitted by the preceding sentence must be provided by loans having maturities of 30 or more years, with such buildings having a placed in service date that is no earlier than the date of enactment of this paragraph. Funds provided under this section to finance such buildings must be obligated by December 31, 2024, and expended by December 31, 2026. Any amount loaned in accordance with this subparagraph shall be considered expended in accordance with the requirements of this subsection. (B) Requirements The project sponsor of a building financed in whole or in part by loans for which financing is permitted under this paragraph shall agree, as a condition for accepting such a loan— (i) to waive any right to request a qualified contract (as defined in section 42(h)(6)(F) of the Internal Revenue Code of 1986); and (ii) to repay any loaned funds to the entity that originated the loan at the time the project of which the building is a part becomes non-compliant, including if such project ceases to satisfy the requirements to be considered a qualified low-income housing project (as defined in section 42(g) of the Internal Revenue Code) or a qualified residential rental project (as defined in section 142(d) of such Code), or if such project fails to comply with an extended low-income housing commitment (as defined in section 42(h)(6) of such Code). (C) Returned or repaid funds Any funds used by a State, territory, or Tribal government in accordance with subparagraph (A) that are returned to the State, territory, or Tribal government, including from loan repayment, shall be used to finance affordable housing, including buildings that are eligible for low-income housing credits under section 42(a) of the Internal Revenue Code of 1986 by virtue of being part of 1 or more qualified low-income housing projects (as defined in section 42(g) of such Code), or being part of 1 or more qualified residential rental projects (as defined in section 142(d) of such Code). (D) Reports (i) Annual reports on LIHTC project obligations During the period beginning on the date of enactment of this paragraph and ending on December 31, 2026, the Secretary shall provide annual reports to the Committee on Ways and Means of the House of Representatives, the Committee on Oversight and Reform of the House of Representatives, the Committee on Appropriations of the House of Representatives, the Committee on Finance of the Senate, and the Committee on Appropriations of the Senate on the obligation and expenditure of funds for projects under this paragraph. (ii) Annual reports on LIHTC project loans For each year during the term of an initial loan financed by funds made available under this paragraph is outstanding, the Secretary shall provide an annual report to each of the committees identified in clause (i) on any repayment of such funds. ; and (2) in section 603— (A) in subsection (a), by inserting (except as provided in subsection (c)(6)) after December 31, 2024 ; and (B) in subsection (c)— (i) in paragraph (1), in the matter preceding subparagraph (A), by striking paragraphs (3) and (4) and inserting paragraphs (3), (4), (5), and (6) ; and (ii) by adding at the end the following new paragraph: (6) Use of funds for low-income housing credit projects (A) In general A metropolitan city, nonentitlement unit of local government, or county, in consultation with a housing finance agency, may use funds provided under this section to finance the cost of construction of 1 or more new qualified low-income buildings (as defined in section 42(c)(2) of the Internal Revenue Code of 1986), or the cost of rehabilitation expenditures (as defined in section 42(e)(2) of such Code), which are expected to be eligible for the low-income housing credit under section 42 of such Code in an amount greater than $0, including credits described in subsection (h)(4) thereof. The financing permitted by the preceding sentence must be provided by loans having maturities of 30 or more years, with such buildings having a placed in service date that is no earlier than the date of enactment of this paragraph. Funds provided under this section to finance such buildings must be obligated by December 31, 2024, and expended by December 31, 2026. Any amount loaned in accordance with this subparagraph shall be considered expended in accordance with the requirements of this subsection. (B) Requirements The project sponsor of a building financed in whole or in part by loans for which financing is permitted under this paragraph shall agree, as a condition for accepting such a loan— (i) to waive any right to request a qualified contract (as defined in section 42(h)(6)(F) of the Internal Revenue Code of 1986); and (ii) to repay any loaned funds to the entity that originated the loan at the time the project of which the building is a part becomes non-compliant, including if such project ceases to satisfy the requirements to be considered a qualified low-income housing project (as defined in section 42(g) of the Internal Revenue Code) or a qualified residential rental project (as defined in section 142(d) of such Code), or if such project fails to comply with an extended low-income housing commitment (as defined in section 42(h)(6) of such Code). (C) Returned or repaid funds Any funds used by a metropolitan city, nonentitlement unit of local government, or county in accordance with subparagraph (A) that are returned to the metropolitan city, nonentitlement unit of local government, or county, including from loan repayment, shall be used to finance affordable housing, including buildings that are eligible for low-income housing credits under section 42(a) of the Internal Revenue Code of 1986 by virtue of being part of 1 or more qualified low-income housing projects (as defined in section 42(g) of such Code), or being part of 1 or more qualified residential rental projects (as defined in section 142(d) of such Code). (D) Reports (i) Annual reports on LIHTC project obligations During the period beginning on the date of enactment of this paragraph and ending on December 31, 2026, the Secretary shall provide annual reports to the Committee on Ways and Means of the House of Representatives, the Committee on Oversight and Reform of the House of Representatives, the Committee on Appropriations of the House of Representatives, the Committee on Finance of the Senate, and the Committee on Appropriations of the Senate on the obligation and expenditure of funds for projects under this paragraph. (ii) Annual reports on LIHTC project loans For each year during the term of an initial loan financed by funds made available under this paragraph is outstanding, the Secretary shall provide an annual report to each of the committees identified in clause (i) on any repayment of such funds. . (b) Technical amendments Sections 602(c)(3) and 603(c)(3) of title VI of the Social Security Act ( 42 U.S.C. 802(c)(3) , 803(c)(3)) are each amended by striking paragraph (17) of .