,i #aaeth ,,congress #ast ,session ,h4 ,r4 #gfd ,,in ,,the ,,house ,,of ,,representatives ,january #ca1 #bjag,ms4 ,velzquez introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,financial ,services1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide incentives for employer-provided employee housing assistance1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,housing ,america's ,workforce ,act of #bjag4 #b4 ,findings and ,purposes 7a7 ,findings ,the ,congress finds the following3 7#a7 ,resurgent housing markets are pricing out low- and moderate-income families and are producing few lower-cost units4 7#b7 ,in many markets1 housing costs have far outgrown the rate of inflation and the gap between wages and housing costs is widening1 pushing affordable housing beyond the reach of an increasing number of working families4 7#c7 ,despite some of the lowest mortgage rates in our ,nation's history1 millions of working families still find it extremely difficult to rent or purchase a home4 ,many workers who fill jobs that provide the backbone of our communities--teachers1 firefighters1 and police officers--often cannot afford to live in the communities in which they serve4 7#d7 ,the ,united ,states ,department of ,housing and ,urban ,development 7,,hud7 considers housing affordable when a family spends no more than #cj percent of its monthly income on rent and utilities4 ,entry-level wage earners with annual incomes of up to #cj1jjj spending no more than #cj percent of their income on rent can only afford to pay up to #gej for rent4 ,in the high job growth areas1 such rents are not readily available4 7#e7 ,affordable housing is the key to creating and sustaining healthy1 economically vibrant communities4 7#f7 ,the lack of affordable housing across the ,united ,states has been shown to cause or contribute to labor shortages4 7#g7 ,under employer-assisted housing 7,,eah7 programs employers provide much needed housing assistance to their employees4 7#h7 ,,eah programs are innovative local solutions that have increased affordable housing opportunities for thousands of working families across ,america while benefiting the economy4 7#i7 ,according to findings of the ,rutgers ,university ,american ,affordable ,housing ,institute1 employer-assisted housing increases productivity by reducing commuting time as well as saves money on recruitment and retention4 7#aj7 ,the future growth of ,,eah programs will remain dependent upon increasing individual employer knowledge and implementation of these programs4 7#aa7 ,,eah programs will not solve the ,nation's housing problems but such programs do seek to address the challenge from a new perspective and allow the private sector to play a direct role in promoting housing affordability4 ,additionally1 ,,eah programs can help to promote redevelopment and reinvestment in distressed communities4 7b7 ,purposes ,the purposes of this ,act are as follows3 7#a7 ,to expand affordable housing opportunities to low- and moderate-income working individuals and families4 7#b7 ,to encourage employers1 counties1 and municipalities to invest in employer-assisted housing programs4 #c4 ,tax credit for employer-provided employee housing assistance 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to business related credits7 is amended by adding at the end the following new section3 #de,s4 ,employer-provided employee housing assistance 7a7 ,allowance of credit 7#a7 ,in general ,for purposes of section #ch1 the employer-provided employee housing assistance credit determined under this section for any taxable year is an amount equal to #ej percent of the qualified housing expenses paid by the employer during the taxable year if such expenses are furnished pursuant to a program described in subsection 7b74 7#b7 ,special rule for small business employers 7,a7 ,in the case of an employer that is a small business employer1 paragraph 7#a7 shall be applied by substituting #ajj percent for #ej percent4 7,b7 ,small business employer ,for purposes of subparagraph 7,a71 the term small business employer means an employer that is a small business concern 7within the meaning of section #c of the ,small ,business ,act7 which-- 7i7 is engaged in a trade or business1 and 7ii7 employs one or more individuals in such trade or business4 7#c7 ,per employee limitation 7,a7 ,in general ,the aggregate amount of qualified housing expenses taken into account with respect to any eligible employee for any taxable year shall not exceed1 when added to any qualified housing expenses taken into account for any preceding taxable year with respect to such employee-- 7i7 in the case of homeownership assistance1 the lesser of #aj1jjj or #f percent of the purchase price of such employee's principal residence1 and 7ii7 in the case of rental assistance1 #e1jjj4 7,b7 ,inflation adjustment 7i7 ,in general ,in the case of any taxable year beginning after #bjag1 each dollar amount referred to in subparagraph 7,a7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #bf ,u4,s4,c4 #a7;f77#c7 for the calendar year in which the taxable year begins1 by substituting #bjaf for #aiib4 7ii7 ,rounding ,if any amount as adjusted under clause 7i7 is not a multiple of #ej1 such amount shall be rounded to the nearest multiple of #ej4 7b7 ,housing assistance program ,for purposes of this section1 a housing assistance program is a separate written plan of an employer for the exclusive benefit of such employer's employees to provide the qualified housing expenses of such employees and which meets requirements similar to the requirements of paragraphs 7#b7 through 7#f7 of section #abg7;b74 7c7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,eligible employee 7,a7 ,in general ,the term eligible employee means any individual-- 7i7 employed by an employer1 7ii7 whose household income does not exceed #abj percent of the area median gross income 7adjusted for household size7 for the metropolitan statistical area 7as defined in section #adc7k77#b77;,b77 in which the housing is located1 and 7iii7 in the case of homeownership assistance1 who is a qualified homebuyer4 ,if the housing with respect to such employee is located in a high housing cost area 7as defined in section #adc7;f77#e77;,c771 the income limitation under subparagraph 7,b7 shall be adjusted 7but not reduced7 by the application of the rule under section #adc7;f77#e7 by substituting #abj percent for #aae percent in subparagraph 7,b77,i7 thereof4 7,b7 ,certain employees not eligible ,the term eligible employee shall not include-- 7i7 any individual described in subparagraph 7,a71 7,b71 or 7,c7 of section #ea7;i77#a71 and 7ii7 any #e-percent owner 7as defined in section #daf7;i77#a77;,b774 7#b7 ,qualified housing expenses 7,a7 ,in general ,the term qualified housing expenses means rental assistance or homeownership assistance towards the lease or purchase of housing4 7,b7 ,rental assistance ,the term rental assistance means assistance with security deposits and rental payments4 7,c7 ,homeownership assistance ,the term homeownership assistance means assistance for the purchase of a principal residence1 including-- 7i7 payment of qualified acquisition costs 7as defined in section #gb7t77#h77;,c771 7ii7 providing 7or reducing the costs of7 financing1 including the funding of a permanent interest rate buydown1 7iii7 contributions to second mortgage pools or low interest loan programs accessible to eligible employees1 7iv7 mortgage guarantee programs for the repayment of any loans in default that are secured by an eligible employee and guaranteed by the employer1 7v7 contributions to ,individual ,development ,accounts 7within the meaning of section #djd7;h7 of the ,social ,security ,act7 which are designated exclusively for the purchase of a home1 and 7vi7 contributions to homebuyer education and homeownership counseling of eligible employees4 7#c7 ,principal residence ,the term principal residence has the same meaning as when used in section #aba1 except such term shall not include a residence with a purchase price exceeding the greater of-- 7,a7 #ij percent of the average area purchase price applicable to the residence1 or 7,b7 #c4e times the family income limit applicable to the eligible employee under paragraph 7#a77;,a77ii74 7#d7 ,qualified homebuyer 7,a7 ,in general ,the term qualified homebuyer means any individual if such individual 7and if married1 such individual's spouse7 had no present ownership in a principal residence during the #c-year period ending on the date of the purchase of the principal residence to which this section applies4 7,b7 ,one time only ,if an individual is treated as a qualified homebuyer with respect to any principal residence1 such individual may not be treated as a qualified homebuyer with respect to any other principal residence4 7#e7 ,applicable rules ,rules similar to the rules under section #abg7;c77#e77;,a7 shall apply for the purposes of this section4 7d7 ,treatment of employers not able ,to use entire credit 7#a7 ,allowance of credit ,except as otherwise provided in this subsection1 any credit allowable under subsection 7a7 to any employer described in paragraph 7#b77;,c7 may be transferred as provided in this subsection and the determination as to whether the credit is allowable shall be made without regard to the tax-exempt status of the employer4 7#b7 ,transfer of credit 7,a7 ,in general ,an employer described in subparagraph 7,c7 may transfer any credit to which paragraph 7#a7 applies through an assignment to any other person4 ,such transfer may be revoked only with the consent of the ,secretary4 7,b7 ,regulations ,the ,secretary shall prescribe such regulations as necessary to ensure that any credit described in subparagraph 7,a7 is assigned once and not reassigned by such other person4 7,c7 ,employer described ,an employer is described in this subparagraph if the employer is-- 7i7 a ,state or political subdivision thereof1 the ,district of ,columbia1 a possession of the ,united ,states1 or an agency or instrumentality of any of the foregoing1 7ii7 an ,indian tribal government 7within the meaning of section #ghga7 or any agency or instrumentality thereof1 or 7iii7 any entity exempt from taxation under section #eja7;a74 7,d7 ,transfer proceeds treated as arising from essential government function ,any proceeds derived by a person described in clause 7i7 or 7ii7 of subparagraph 7,c7 from the transfer under subparagraph 7,a7 of any credit to which paragraph 7#a7 applies shall be treated as arising from the exercise of an essential government function4 7,e7 ,credit not income ,any transfer under subparagraph 7,a7 of any credit to which paragraph 7#a7 applies shall not be treated as income for purposes of section #eja7;c77#ab74 4 7b7 ,credit allowed as part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf 7defining current year business credit7 is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the employer-provided employee housing assistance credit determined under section #de,s7a74 4 7c7 ,conforming amendments 7#a7 ,subsection 7c7 of section #aif of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of paragraph 7#ac71 by striking the period at the end of paragraph 7#ad7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ae7 the employer-provided employee housing assistance credit determined under section #de,s7a74 4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,s4 ,employer-provided employee housing assistance4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjaf4 #d4 ,exclusion from income of employer-provided employee housing assistance 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to items specifically excluded from gross income7 is amended by inserting after section #aci;,f the following new section3 #aci;,g4 ,employee housing assistance programs 7a7 ,exclusion from gross income 7#a7 ,in general ,gross income of an eligible employee does not include amounts paid or incurred by the employer of such employee for qualified housing expenses provided to the employee if the assistance is furnished pursuant to a program described in subsection 7b74 7#b7 ,limitation 7,a7 ,in general ,the aggregate amount of qualified housing expenses which may be excluded under paragraph 7#a7 with respect to any eligible employee for any taxable year shall not exceed1 when added to any qualified housing expenses excluded in any preceding taxable year with respect to such employee-- 7i7 in the case of homeownership assistance1 the lesser of #aj1jjj or #f percent of the purchase price of such employee's principal residence1 and 7ii7 in the case of rental assistance1 #e1jjj4 7,b7 ,inflation adjustment 7i7 ,in general ,in the case of any taxable year beginning after #bjag1 each dollar amount referred to in subparagraph 7,a7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #bf ,u4,s4,c4 #a7;f77#c7 for the calendar year in which the taxable year begins1 by substituting #bjaf for #aiib4 7ii7 ,rounding ,if any amount as adjusted under clause 7i7 is not a multiple of #ej1 such amount shall be rounded to the nearest multiple of #ej4 7b7 ,housing assistance program ,for purposes of this section1 a housing assistance program is a separate written plan of an employer for the exclusive benefit of such employer's employees to provide the qualified housing expenses of such employees and which meets requirements similar to the requirements of paragraphs 7#b7 through 7#f7 of section #abg7;b74 7c7 ,definitions2 special rules ,for purposes of this section-- 7#a7 ,in general ,any term used in section #de,s which is also used in this section shall have the same meaning as given such term by section #de,s4 7#b7 ,applicable rules ,rules similar to the rules under section #abg7;c77#e77;,a7 shall apply for purposes of this section4 7#c7 ,basis adjustment ,for purposes of this subtitle1 if an exclusion is allowed under subsection 7a7 with respect to a residence1 the basis of such residence shall be reduced by the amount of the exclusion4 4 7b7 ,reporting requirements ,subsection 7d77#a7 of section #fjci;,d of the ,internal ,revenue ,code of #aihf 7relating to returns and records with respect to certain fringe benefit plans7 is amended by striking or #acg and inserting #acg1 or #aci;,g4 7c7 ,conforming amendments 7#a7 ,the table of sections for part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #aci;,f the following new item3 ,sec4 #aci;,g4 ,employee housing assistance programs4 4 7#b7 ,subsection 7a7 of section #ajaf of such ,code 7relating to adjustments to basis7 is amended by striking and at the end of paragraph 7#cf71 by striking the period at the end of paragraph 7#cg7 and inserting 1 and1 and by adding at the end the following new paragraph3 7#ch7 in the case of a residence with respect to which amounts were excluded from income under section #aci;,g1 to the extent provided in section #aci;,g7c77#c74 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning ,december #ca1 #bjaf4 #e4 ,grants to cover employer-assisted housing program costs 7a7 ,grants authorized 7#a7 ,in general ,the ,secretary may award a grant to an eligible entity to pay-- 7,a7 the operating costs of administering an employer-assisted housing program2 7,b7 for technical assistance provided by the eligible entity to an employer in connection with such a program2 and 7,c7 for costs associated with promoting1 publicizing1 or otherwise attempting to distribute information relating to such a program4 7#b7 ,duration ,grants in an annual aggregate total of not more than #e1jjj1jjj may be awarded under this subsection during each of fiscal years #bjag1 #bjah1 and #bjai4 7#c7 ,award basis ,the ,secretary shall award grants under this section on a competitive basis4 7b7 ,eligible entities ,to be eligible to receive a grant under this section1 an entity shall demonstrate that it is-- 7#a7 a nonprofit housing organization with a relevant mission and demonstrated track record in housing counseling or employer-assisted housing contracted by an employer to assist the employer in establishing or maintaining an employer-assisted housing program2 or 7#b7 a city1 county1 town1 township1 parish1 village1 hamlet1 or other general purpose political subdivision of a ,state that seeks to establish or maintain1 or otherwise participate in an employer-assisted housing program for its own employees4 7c7 ,application ,each eligible entity seeking a grant under this section shall submit an application to the ,secretary at such time1 in such manner1 and containing such information as the ,secretary may require4 7d7 ,limitation on use of funds ,a grant awarded to an eligible entity under this section shall be used only for the purposes described under subsection 7a74 7e7 ,reports 7#a7 ,in general ,each eligible entity receiving a grant under this section shall annually prepare and submit to the ,secretary a report that describes the-- 7,a7 amount of grant funds expended during the year2 7,b7 total amount-- 7i7 of funds expended during the year to administer an employer-assisted housing program2 and 7ii7 of down payment assistance provided by such a program2 7,c7 total number of employees utilizing such a program2 7,d7 number of employees utilizing such a program-- 7i7 who are first-time homebuyers2 7ii7 who are previous homeowners2 and 7iii7 who live in high-cost housing areas2 7,e7 average-- 7i7 income of employees utilizing such a program2 7ii7 age of employees utilizing such a program2 and 7iii7 cost of a home purchased under such a program2 7,f7 ethnicity of employees utilizing such a program2 and 7,g7 number of housing units affected by such a program4 7#b7 ,clearinghouse and dissemination 7,a7 ,in general ,not later than #a year after the date of enactment of this ,act1 the ,secretary shall establish a national clearinghouse1 including a website1 designed-- 7i7 to provide information about employer-assisted housing programs to-- 7,i7 ,federal1 ,state1 and local government entities2 and 7,,ii7 interested groups1 businesses1 persons1 and organizations2 and 7ii7 to collect and disseminate the information gathered from the reports required under paragraph 7#a74 7,b7 ,webposting ,the ,secretary shall ensure that-- 7i7 each report submitted under paragraph 7#a7 is posted to the website of the national clearinghouse established under subparagraph 7,a72 and 7ii7 the website of the ,department of ,housing and ,urban ,development provides a hyperlink to such reports on the website of the national clearinghouse4 7f7 ,definitions ,as used in this section3 7#a7 ,secretary ,the term ,secretary means the ,secretary of ,housing and ,urban ,development4 7#b7 ,nonprofit housing organization ,the term nonprofit housing organization means any organization that-- 7,a7 the ,internal ,revenue ,service has ruled is exempt from income taxation under paragraph 7#c71 7#d71 or 7#e7 of section #eja7;c7 of the ,internal ,revenue ,code of #aihf2 and 7,b7 has as its stated purpose to produce1 maintain1 operate1 or promote affordable housing4 7g7 ,authorization of appropriations ,there are authorized to be appropriated #e1jjj1jjj for each of fiscal years #bjag1 #bjah1 and #bjai to carry out this section4 #f4 ,evaluation of employer-assisted housing programs 7a7 ,in general ,a study of employer-assisted programs shall be carried out in accordance with subsection 7b7 for the purposes of evaluating the effects of the tax benefits provided under sections #c and #d and the grant program established under section #e on-- 7#a7 such programs2 and 7#b7 the private sector resources leveraged to further fund such programs4 7b7 ,national evaluation 7#a7 ,in general ,the ,comptroller ,general of the ,united ,states 7in this section referred to as the ,comptroller ,general7 shall conduct the study required under subsection 7a74 7#b7 ,requirements ,the study required under subsection 7a7 shall include an analysis and summary of-- 7,a7 the total number of-- 7i7 employers participating in employer-assisted housing programs2 7ii7 ,states that have enacted employer-assisted housing program legislation2 and 7iii7 ,states considering enacting such legislation2 7,b7 the extent to which ,federal funds are being used to support employer-assisted housing programs2 7,c7 the size and nature of existing ,federal1 ,state1 and private employer-assisted housing programs2 7,d7 the types of assistance offered to employees under employer-assisted housing programs2 7,e7 the distribution of employers offering employer-assisted housing programs1 including a review of the-- 7i7 geographic distribution of such employers2 7ii7 industry distribution of such employers2 and 7iii7 size distribution of such employers2 7,f7 the extent to which employer-assisted housing programs are located in high-cost housing markets2 7,g7 the extent to which employers are able to1 and have made1 use of the tax benefits provided under this ,act2 7,h7 the information contained in the reports submitted under section #e7;e72 and 7,i7 any other information that the ,comptroller ,general determines would be relevant and helpful to the ,secretary of ,housing and ,urban ,development 7in this section referred to as the ,secretary7 in evaluating the effects of the tax benefits provided under sections #c and #d and the grant program established under section #e4 7c7 ,consultation ,in conducting the study required under subsection 7a71 the ,comptroller ,general shall consult with-- 7#a7 appropriate ,federal1 ,state1 and local government entities2 and 7#b7 interested groups1 businesses1 persons1 universities1 and organizations4 7d7 ,report 7#a7 ,interim report ,not later than ,january #a1 #bjbj1 the ,comptroller ,general shall submit to the ,secretary an interim report on the findings of the study required under subsection 7a74 7#b7 ,final report ,not later than ,december #ca1 #bjba1 the ,comptroller ,general shall submit to the ,secretary a final report that describes-- 7,a7 the findings of the study required under subsection 7a72 and 7,b7 any conclusions and recommendations of such study4 7e7 ,authorization of appropriations ,there are authorized to be appropriated #a1jjj1jjj to carry out this section4