Low Income Housing for Defense Communities Act

Bill: 118-hr-9659
Sponsor: full_name: Rep. Moore, Blake D. [R-UT-1]
Introduced: 2024-09-18
Policy area: Taxation
Latest action: action_date: 2024-09-18
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2024-09-18
action_desc: Introduced in House
text: <p><strong>Low Income Housing for Defense Communities Act</strong></p><p>This bill broadens the exclusion of amounts received by members of the Armed Forces as a basic allowance for housing from income for purposes of meeting the income requirements of the low-income housing tax credit (LIHTC). This bill also increases the basis of properties developed within 15 miles of large military installations, generally making the developer of the property eligible for a larger LIHTC.</p><p>Under current law, to be eligible for the LIHTC, properties must rent a percentage of units to individuals with incomes equal to or less than a percentage of an area’s median gross income (often referred to as the set-aside test). For purposes of calculating an individual’s income to determine if it is equal or less than an area’s median gross income, the basic allowance for housing received by members of the Armed Forces is excluded only if the property is in a specific location that meets requirements related to population growth for a defined time period.&nbsp;</p><p>This bill excludes amounts received by members of the Armed Forces as a basic housing allowance in determining their income and eligibility for low-income housing, without restrictions on the location of the property or population growth of the location.&nbsp;</p><p>Finally, this bill treats properties developed within 15 miles of a large military installation as located in a difficult development area, which qualifies the property for an increased basis of 130% (instead of 100%) and generally increases the amount of the LIHTC.</p>

tv_txt: I 118th CONGRESS 2d Session H. R. 9659 IN THE HOUSE OF REPRESENTATIVES September 18, 2024 Mr. Moore of Utah (for himself and Ms. Strickland ) 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 tax incentives for rental housing for members of the Armed Forces.

1. Short title; sense of Congress (a) Short title This Act may be cited as the Low Income Housing for Defense Communities Act . (b) Sense of Congress It is the sense of Congress that in addition to expanding and strengthening the affordable housing credit for active duty military members through the provisions in the Low Income Housing for Defense Communities Act, further steps should be taken to drive investment into affordable housing projects in the United States and boost overall housing supply for workers and families in the United States, such as the Affordable Housing Credit Improvement Act of 2023. 2. Tax incentives for rental housing for members of the Armed Forces (a) Military basic housing allowance not taken into account in applying certain income restrictions on residential rental projects (1) Low-income housing tax credit Section 42(i) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Income determined without regard to military basic housing allowance Payments under section 403 of title 37, United States Code, as a basic pay allowance for housing shall not be taken into account in determining income for purposes of this section. . (2) Tax-exempt bonds for qualified residential rental projects (A) In general Section 142(d)(2)(B) of such Code, as amended by subparagraph (B), is amended by inserting after clause (i) the following new clause: (ii) Income determined without regard to military basis housing allowance Payments under section 403 of title 37, United States Code, as a basic pay allowance for housing shall not be taken into account in determining income for purposes of clause (i). . (B) Repeal of deadwood Section 142(d)(2)(B) of such Code is amended by striking clauses (ii), (iii), and (iv). (3) Effective date The amendments made by this subsection shall apply to determinations made after the date of the enactment of this Act. (b) Increase in low-Income housing credit for buildings near certain large military installation (1) In general Section 42(d)(5)(B) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause: (vi) Buildings near certain large military installation (I) In general Any building which is located within 15 miles of a large military installation shall be treated as located in a difficult development area which is designated for purposes of this subparagraph. (II) Large military installation For purposes of this clause, the term large military installation means any military installation with a total plant replacement value (as determined by the Secretary of the Defense) in excess of $2,833,000,000. . (2) Effective date The amendment made by this subsection shall apply to buildings placed in service after the date of the enactment of this Act. (3) No requirement that buildings be occupied solely by members of the Armed Forces Nothing in the amendment made by this subsection shall be applied or interpreted to require that buildings described in section 42(d)(5)(B)(vi) of the Internal Revenue Code of 1986 (as added by this section) be occupied solely by members of the Armed Forces.