,,ii #aaeth ,,congress #b;d ,session ,s4 #cehj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #aa1 #bjah,mr4 ,heller introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a tax credit to taxpayers who provide reductions in rent to low-income senior renters1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,seniors ,affordable ,housing ,tax ,credit ,act4 #b4 ,low-income seniors rent credit 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,t4 ,low-income seniors rent credit 7a7 ,determination of credit amount 7#a7 ,in general ,for purposes of section #ch1 the amount of the low-income seniors rent credit determined under this section for any taxable year is the sum of the amounts determined under paragraph 7#b7 for all qualified buildings with a credit period which includes months occurring during the taxable year4 7#b7 ,qualified building amount ,the amount determined under this paragraph with respect to any qualified building for any taxable year shall be an amount equal to the lesser of-- 7,a7 the aggregate rental reduction amounts for all eligible senior units within such building for months occurring during the taxable year which are within the credit period for such building1 or 7,b7 the rental reduction credit amount allocated to such building for such months4 7#c7 ,qualified building ,for purposes of this section1 the term qualified building means any building which is residential rental property 7as defined in section #afh7;e77#b77;,a77 of the taxpayer with respect to which-- 7,a7 a rental reduction credit amount has been allocated by a rental reduction credit agency of a ,state1 and 7,b7 a qualified rental reduction agreement is in effect4 ,a building shall not fail to be treated as a qualified building merely because a credit was allowed under section #db with respect to such building or there was any other ,federal assistance in the construction or rehabilitation of such building4 7b7 ,rental reduction amount ,for purposes of this section-- 7#a7 ,in general ,the term rental reduction amount means1 with respect to any eligible senior unit for any month1 an amount equal to the applicable percentage 7as determined under subsection 7d77#a77 of the excess of-- 7,a7 the applicable standard fair market rent for such unit1 over 7,b7 the family rental payment required for such unit4 7#b7 ,applicable standard fair market rent ,the term applicable standard fair market rent means1 with respect to any eligible senior unit for any month1 the lesser of-- 7,a7 the amount of rent which would be charged for a substantially similar unit in the same building which is not an eligible senior unit1 or 7,b7 an amount equal to the average modest rent 7as determined in accordance with the ,state rental reduction allocation plan7 for units with the same number of bedrooms in the same statistical area 7as defined in section #adc7k77#b774 7#c7 ,family rental payment requirements 7,a7 ,in general ,each qualified rental reduction agreement with respect to any qualified building shall require that the family rental payment for an eligible senior unit within such building for any month shall be equal to the lesser of-- 7i7 #cj percent of the monthly family income of the residents of the unit 7as determined under subsection 7d77#e771 or 7ii7 the applicable standard fair market rent for such unit determined under paragraph 7#b74 7,b7 ,utility costs ,any utility allowance 7determined by the ,secretary after taking into account such determinations under section #h of the ,united ,states ,housing ,act of #aicg7 paid by residents of an eligible senior unit shall be taken into account as rent in determining the family rental payment for such unit for purposes of this paragraph4 7c7 ,rental reduction credit amount ,for purposes of this section-- 7#a7 ,determination of amount 7,a7 ,in general ,the term rental reduction credit amount means1 with respect to any qualified building1 the dollar amount which is allocated to such building 7and to eligible senior units within such building7 under this subsection4 ,such dollar amount shall be allocated to months in the credit period with respect to such building 7and units7 on the basis of reasonable estimates of rents1 family incomes1 and vacancies in accordance with procedures established by the ,state as part of its ,state rental reduction allocation plan4 7,b7 ,allocation on project basis ,in the case of a project which includes 7or will include7 more than #a building1 the rental reduction credit amount shall be the dollar amount which is allocated to such project for all buildings included in such project4 ,such amount shall be allocated among such buildings in the manner specified by the taxpayer unless the qualified rental reduction agreement with respect to such project provides for such allocation4 7#b7 ,state allocation ,each rental reduction credit agency of a ,state shall each calendar year allocate its portion of the ,state rental reduction credit ceiling to buildings 7and to eligible senior units within such building7 in accordance with the ,state rental reduction allocation plan4 7#c7 ,allocated credit amount to apply to all taxable years ending during or after credit allocation year ,any rental reduction credit amount allocated to any building out of the ,state rental reduction credit ceiling for any calendar year-- 7,a7 shall apply to such building for months in the credit period ending during or after such calendar year1 and 7,b7 shall reduce the portion of such ceiling of the allocating agency only for such calendar year4 7#d7 ,state rental reduction credit ceiling 7,a7 ,in general ,the ,state rental reduction credit ceiling applicable to any ,state for any calendar year shall be an amount equal to the sum of-- 7i7 the greater of-- 7,i7 the per capita amount multiplied by the ,state population1 or 7,,ii7 the minimum ceiling amount1 plus 7ii7 the amount of the ,state rental reduction credit ceiling returned in the calendar year4 7,b7 ,return of ,state ceiling amounts ,for purposes of subparagraph 7,a77ii71 the amount of the ,state rental reduction credit ceiling returned in a calendar year equals the amount of the rental reduction credit amount allocated to any building which1 after the close of the calendar year for which the allocation is made1 is canceled by mutual consent of the rental reduction credit agency and the taxpayer4 7,c7 ,per capita dollar amount2 minimum ceiling amount ,for purposes of this paragraph-- 7i7 ,per capita dollar amount ,the per capita dollar amount is #a4ge4 7ii7 ,minimum ceiling amount ,the minimum ceiling amount is #b1jjj1jjj4 7,d7 ,cost-of-living adjustment 7i7 ,in general ,in the case of a calendar year after #bjai1 the #a4ge amount in subparagraph 7,c77i7 and the #b1jjj1jjj amount in subparagraph 7,c77ii7 shall each be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year by substituting calendar year #bjah for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding 7,i7 ,in the case of the #a4ge amount1 any increase under clause 7i7 which is not a multiple of #e cents shall be rounded to the next lowest multiple of #e cents4 7,,ii7 ,in the case of the #b1jjj1jjj amount1 any increase under clause 7i7 which is not a multiple of #e1jjj shall be rounded to the next lowest multiple of #e1jjj4 7,e7 ,population ,for purposes of this paragraph1 population shall be determined in accordance with section #adf7;j74 7,f7 ,unused rental reduction credit allocated among certain ,states 7i7 ,in general ,the unused rental reduction credit of a ,state for any calendar year shall be assigned to the ,secretary for allocation among qualified ,states for the succeeding calendar year4 7ii7 ,unused rental reduction credit ,for purposes of this subparagraph1 the unused rental reduction credit of a ,state for any calendar year is the excess 7if any7 of-- 7,i7 the ,state rental reduction credit ceiling for the year preceding such year1 over 7,,ii7 the aggregate rental reduction credit amounts allocated for such year4 7iii7 ,formula for allocation of unused credit among qualified ,states ,the amount allocated under this subparagraph to a qualified ,state for any calendar year shall be the amount determined by the ,secretary to bear the same ratio to the aggregate unused rental reduction credits of all ,states for the preceding calendar year as such ,state's population for the calendar year bears to the population of all qualified ,states for the calendar year4 ,for purposes of the preceding sentence1 population shall be determined in accordance with section #adf7;j74 7iv7 ,qualified ,state ,for purposes of this subparagraph1 the term qualified ,state means1 with respect to a calendar year1 any ,state-- 7,i7 which allocated its entire ,state rental reduction credit ceiling for the preceding calendar year1 and 7,,ii7 for which a request is made 7not later than ,may #a of the calendar year7 to receive an allocation under clause 7iii74 7#e7 ,other definitions ,for purposes of this section-- 7,a7 ,rental reduction credit agency ,the term rental reduction credit agency means any agency authorized by a ,state to carry out this subsection4 ,such authorization shall include the jurisdictions within the ,state where the agency may allocate rental reduction credit amounts4 7,b7 ,possessions treated as ,states ,the term ,state includes a possession of the ,united ,states4 7d7 ,terms relating to rental reduction credit and requirements ,for purposes of this section-- 7#a7 ,applicable percentage ,the term applicable percentage means1 with respect to any qualified building1 the percentage 7not greater than #aaj percent7 set by the rental reduction credit agency at the time it allocates the rental reduction credit amount to the building4 7#b7 ,credit period 7,a7 ,in general ,the term credit period means1 with respect to any qualified building1 the #ae-year period beginning with the first month for which the qualified rental reduction agreement is in effect with respect to the building4 7,b7 ,state option ,a rental reduction credit agency may provide a credit period for any qualified building which is less than #ae years4 7#c7 ,eligible senior unit ,the term eligible senior unit means1 with respect to any qualified building1 a unit-- 7,a7 which is occupied by an eligible tenant1 7,b7 the rent of which for does not exceed the family rental payment requirement determined under subsection 7b77#c71 and 7,c7 which is certified to the rental reduction credit agency as an eligible senior unit for purposes of this section and the qualified rental reduction agreement4 7#d7 ,eligible tenant 7,a7 ,in general ,the term eligible tenant means any individual if-- 7i7 the individual's family income does not exceed the greater of-- 7,i7 #cj percent of the area median gross income 7as determined under section #db7;g77#a771 or 7,,ii7 the applicable poverty line for a family of the size involved1 and 7ii7 at least #a of the occupants of the unit in which the individual will reside has attained the age of #ee as of the beginning of the lease4 7,b7 ,applicable poverty line ,the term applicable poverty line means the most recently published poverty line 7within the meaning of section #baaj7;c77#e7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acig;jj7c77#e777 as of the time of the determination as to whether an individual is an eligible tenant4 7#e7 ,family income ,income of a family shall be determined by the taxpayer annually using the method set forth in the ,state rental reduction allocation plan4 7e7 ,state rental reduction allocation plan 7#a7 ,adoption of plan required ,for purposes of this section-- 7,a7 each ,state shall1 before the allocation of its ,state rental reduction credit ceiling1 establish and have in effect a ,state rental reduction allocation plan meeting the requirements of this subsection1 and 7,b7 notwithstanding any other provision of this section1 the rental reduction credit amount allocated to any building shall be zero unless such amount was allocated pursuant to a ,state rental reduction allocation plan meeting such requirements4 ,such plan shall only be adopted after such plan is made public and a reasonable period of time has been allowed for public comment4 7#b7 ,general plan requirements ,a plan shall meet the requirements of this subsection only if-- 7,a7 the plan sets forth the criteria and priorities which a rental reduction credit agency of the ,state shall use in allocating the ,state rental reduction credit ceiling to eligible senior units within a building1 and 7,b7 the plan provides that no credit allocation shall be made which is not in accordance with the criteria and priorities set forth under subparagraph 7,a7 unless such agency provides a written explanation to the general public for any credit allocation which is not so made and the reasons why such allocation is necessary4 ,in establishing the criteria and priorities described in subparagraph 7,a71 the ,state shall take into account the factors described in subparagraphs 7,b7 and 7,c7 of section #db7m77#a7 and shall1 to the maximum extent possible1 coordinate such criteria and priorities with the ,state's qualified allocation plan under section #db4 7#c7 ,specific requirements ,a plan shall meet the requirements of this subsection only if-- 7,a7 the plan provides methods for determining-- 7i7 the amount of rent which would be charged for a substantially similar unit in the same building which is not an eligible seniors unit for purposes of subsection 7b77#b77;,a71 and 7ii7 the applicable percentage under subsection 7d77#a71 7,b7 the plan provides a procedure that the rental reduction credit agency 7or an agent or other private contractor of such agency7 will follow in monitoring for-- 7i7 noncompliance with the provisions of this section and the qualified rental reduction agreement and in notifying the ,internal ,revenue ,service of any such noncompliance of which the agency becomes aware1 and 7ii7 noncompliance with habitability standards through regular site visits1 and 7,c7 the plan requires a person receiving a credit allocation to report to the rental reduction credit agency such information as is necessary to ensure compliance with the provisions of this section and the qualified rental reduction agreement4 7f7 ,qualified rental reduction agreement ,for purposes of this section-- 7#a7 ,in general ,the term qualified rental reduction agreement means1 with respect to any residential rental property 7as defined in section #afh7;e77#b77;,a771 a written1 binding agreement between a rental reduction credit agency and the owner of such building which specifies-- 7,a7 the number of eligible senior units within such building for which a rental reduction credit amount is being allocated1 7,b7 the credit period for such building1 7,c7 the rental reduction credit amount allocated to such building 7and dwelling units within such building71 7,d7 the applicable percentage to be used in computing the qualified rental reduction amounts with respect to the building1 and 7,e7 the method for determining the amount of rent which may be charged for eligible senior units within the building4 7#b7 ,compliance requirements ,a qualified rental reduction agreement shall provide that the owner of a building receiving a rental reduction credit amount shall comply with all reporting and other procedures established by the ,state to ensure compliance with this section and the agreement4 7#c7 ,projects ,in the case of a rental reduction credit allocated to a project consisting of more than #a building1 the rental reduction credit agency may provide for a single qualified rental reduction agreement which applies to all buildings which are part of the project4 7g7 ,transfer of credit 7#a7 ,in general ,subject to paragraph 7#b7 and such regulations or other guidance as the ,secretary may provide1 the taxpayer may transfer to any person all or a portion of the credit allowable to the taxpayer under subsection 7a7 for any taxable year with respect to a building4 7#b7 ,certification ,a transfer under paragraph 7#a7 shall be accompanied by a certificate which includes-- 7,a7 the qualified rental reduction agreement for the building1 7,b7 the taxpayer's name1 address1 and tax identification number1 7,c7 the transferee's name1 address1 and tax identification number1 7,d7 the amount of credit being transferred for each taxable year of the taxpayer1 and 7,e7 such other information as may be required by the ,secretary4 7#c7 ,tax treatment of transfer 7,a7 ,disallowance of deduction ,no deduction shall be allowed for any amount of consideration paid or incurred by the transferee in return for the transfer of any credit under this paragraph4 7,b7 ,allowance of credit ,the amount of credit transferred under subparagraph 7,a7-- 7i7 shall not be allowed to the transferor for any taxable year1 and 7ii7 shall be allowable to the transferee as a credit under this section for the taxable year of the transferee in which such credit is transferred4 7#d7 ,information reporting ,the transferor and the transferee shall each make such reports regarding the transfer of an amount of credit under paragraph 7#a71 and containing such information1 as the ,secretary may require4 ,the reports required by this paragraph shall be filed at such time and in such manner as may be required by the ,secretary4 7h7 ,certifications and other reports to ,secretary 7#a7 ,certification with respect to #ast year of credit period ,following the close of the #ast taxable year in the credit period with respect to any qualified building1 the taxpayer shall certify to the ,secretary 7at such time and in such form and in such manner as the ,secretary prescribes7-- 7,a7 the information described in subsection 7f77#a7 required to be contained in the qualified rental reduction agreement with respect to the building1 7,b7 the transferee 7if any7 of the credit under subsection 7g71 and 7,c7 such other information as the ,secretary may require4 ,in the case of a failure to make the certification required by the preceding sentence on the date prescribed therefor1 unless it is shown that such failure is due to reasonable cause and not to willful neglect1 no credit shall be allowable by reason of subsection 7a7 with respect to such building for any taxable year ending before such certification is made4 7#b7 ,annual reports to the ,secretary ,the ,secretary may require taxpayers to submit an information return 7at such time and in such form and manner as the ,secretary prescribes7 for each taxable year setting forth-- 7,a7 the information described in paragraph 7#a77;,a7 for the taxable year1 and 7,b7 such other information as the ,secretary may require4 ,the penalty under section #ffeb7;j7 shall apply to any failure to submit the return required by the ,secretary under the preceding sentence on the date prescribed therefor4 7#c7 ,annual reports from housing credit agencies ,each agency which allocates any housing credit amount to #a or more buildings for any calendar year shall submit to the ,secretary 7at such time and in such manner as the ,secretary shall prescribe7 an annual report specifying-- 7,a7 the amount of rental reduction credit amounts allocated to each such building for such year1 7,b7 sufficient information to identify each such building and the taxpayer with respect thereto1 7,c7 information as to the demographic and income characteristics of eligible tenants of all such buildings to which such amounts were allocated1 and 7,d7 such other information as the ,secretary may require4 ,the penalty under section #ffeb7;j7 shall apply to any failure to submit the report required by the preceding sentence on the date prescribed therefor4 4 7b7 ,treatment as part of general business credit 7#a7 ,in general ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the low-income seniors rent credit determined under section #de,t7a74 4 7#b7 ,allowance against minimum tax ,section #ch7;c77#d77;,b7 of such ,code is amended by redesignating clauses 7x71 7xi71 and 7xii7 as clauses 7xi71 7xii71 and 7x77iii71 respectively1 and by inserting after clause 7ix7 the following new clause3 7x7 the low-income seniors rent credit determined under section #de,t7a71 4 7c7 ,conforming amendments 7#a7 ,subsections 7i77#c77;,c71 7i77#f77;,b77i71 and 7k77#a7 of section #dfi of such ,code are each amended by inserting or #de,t after #db4 7#b7 ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by inserting at the end the following new item3 ,sec4 #db;,a4 ,low-income seniors rent credit4 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4