,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #dabj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #cj1 #bjai,mr4  
,lawson ( ,florida 7= himself & ,ms4    
,tlaib7 introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to provide = ! tax       
treatm5t ( fir/-"t home[n] assi/ance    
programs e/abli%$ by ,/ates4  #a4 ,%ort 
title ,?is ,act may be cit$ z !         
,fir/-,"t ,home[n]s ,assi/ance ,act (   
#bjai4  #b4 ,qualifi$ fir/-"t home[n]   
assi/ance program  7a7 ,9 g5]al ,"p     
,,viii ( sub*apt] ,f ( *apt] #a ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#ecj;,a4 ,qualifi$ fir/-"t home[n]      
assi/ance program  7a7 ,g5]al rule ,a   
qualifi$ fir/-"t home[n] assi/ance      
program %all be exempt f taxation "u ?is
 subtitle4 ,not)/&+ ! prec$+ s5t5ce1 su*
 program %all be subject to ! taxes     
impos$ by section #eaa 7relat+ to       
imposition ( tax on unrelat$ bus9ess    

income ( *>itable organizations74  7b7  
,qualifi$ fir/-,"t home[n] assi/ance    
program ,= purposes ( ?is section-- 7#a7
 ,9 g5]al ,! t]m qualifi$ fir/-"t       
home[n] assi/ance program means a       
program e/abli%$ & ma9ta9$ by a ,/ate1  
or ag5cy or in/rum5tality !re(--  7,a7  
"u :i* a p]son may make contributions to
 a fir/-"t home[n] assi/ance acc\nt1    
7,b7 "u :i* nei!r contributors nor      
b5efici>ies are prohibit$ by reason (   
resid5cy )9 ! ,/ate1 &  7,c7 :i* meets !
 o!r requirem5ts ( ?is subsection4  7#b7
 ,ca% contributions ,a program %all n be
 treat$ z a qualifi$ fir/-"t home[n]    
assi/ance program unless x provides t   
contributions--  7,a7 may only be made 9
 ca%1  7,b7 may n be made aft] ! date on
 :i* ! acc\nt b5efici>y atta9s age #dj1 
or  7,c7 except 9 ! case ( rollov]      
contributions1 if su* contribution w\ld 
result 9 aggregate contributions = all  
taxable ye>s exce$+ #bj1jjj4  7#c7      
,sep>ate acc\nt+ ,a program %all n be   
treat$ z a qualifi$ fir/-"t home[n]     

assi/ance program unless x provides     
sep>ate acc\nt+ = ea* designat$         
b5efici>y4  7#d7 ,limit$ inve/m5t       
direction ,a program %all n be treat$ z 
a qualifi$ fir/-"t home[n] assi/ance    
program unless x provides t any         
contributor to1 or designat$ b5efici>y  
"u1 su* program may1 directly or        
indirectly1 direct ! inve/m5t ( any     
contributions to ! program 7or any e>n+s
 !reon7 no m ?an #b times 9 any cal5d>  
ye>4  7#e7 ,no pl$g+ ( int]e/ z security
 ,a program %all n be treat$ z a        
qualifi$ fir/-"t home[n] assi/ance      
program if x all[s any int]e/ 9 !       
program or any portion !re( to be us$ z 
security = a loan4  7#f7 ,c]ta9         
re/rictions disall[$ ,a program %all n  
be treat$ z a qualifi$ fir/-"t home[n]  
assi/ance program unless1 ) respect to  
ea* fir/-"t home[n] assi/ance acc\nt1 ! 
program does n--  7,a7 prohibit !       
designat$ b5efici>y f acquir+ or        
con/ruct+ a pr9cipal resid5ce outside ( 
! ,/ate1  7,b7 limit any ,/ate tax      

pref]5ces = contributions to ^! acc\nts 
bas$ on ! resid5ce ( ! contributor or ! 
designat$ b5efici>y1 or  7,c7 condition 
)drawals1 or limit any ,/ate tax        
pref]5ces = )drawals1 f ^! acc\nts f be+
 appli$ only ) respect to resid5ces     
locat$ )9 ! ,/ate4  7c7 ,fir/-,"t       
home[n] assi/ance acc\nt ,= purposes (  
?is section-- 7#a7 ,9 g5]al ,! t]m      
fir/-"t home[n] assi/ance acc\nt means  
an acc\nt e/abli%$ "u a qualifi$ fir/-"t
 home[n] assi/ance program = ! purpose (
 provid+ qualifi$ d[n paym5t assi/ance  
to ! designat$ b5efici>y ( ! acc\nt4    
7#b7 ,qualifi$ d[n paym5t assi/ance     
7,a7 ,9 g5]al ,! t]m qualifi$ d[n paym5t
 assi/ance means a di/ribution-- 7i7 to 
a designat$ b5efici>y :o is a fir/-"t   
home[n] ( a pr9cipal resid5ce 9 ! ,unit$
 ,/ates1  7ii7 "u a qualifi$ fir/-"t    
home[n] assi/ance program 9 connection )
 ! acquisition1 con/ruction1 or         
sub/antial improvem5t ( a pr9cipal      
resid5ce at or be=e ! "t ( su*          
acquisition or con/ruction1 &  7iii7 !  

am\nt ( :i*1 :5 add$ to all prior       
qualifi$ d[n paym5t assi/ance "u ?is    
subp>agraph dur+ any taxable ye>1 does n
 exce$ #aj p]c5t ( ! co/ ( acquir+1     
con/ruct+1 or sub/antially improv+ !    
pr9cipal resid5ce ( ! designat$         
b5efici>y4  7,b7 ,fir/-"t home[n] ,! t]m
 fir/-"t home[n] means any individual if
 su* individual 7& if m>ri$1 su*        
individual's sp\se7 _h no pres5t own]%ip
 int]e/ 9 a pr9cipal resid5ce dur+ !    
#c-ye> p]iod end+ on ! date ( !         
acquisition1 con/ruction1 or sub/antial 
improvem5t ( ! pr9cipal resid5ce4  7,c7 
,pr9cipal resid5ce  ,! t]m pr9cipal     
resid5ce has ! same mean+ z :5 us$ 9    
section #aba4  7,d7 ,exception ,a       
resid5ce may be tak5 into acc\nt =      
purposes ( ?is p>agraph only if--  7i7 !
 resid5ce is n acquir$ f a p]son relat$ 
to ! p]son acquir+ su* resid5ce 7or1 if 
m>ri$1 su* individual's sp\se71 &  7ii7 
! basis ( ! resid5ce 9 ! h&s ( ! p]son  
acquir+ su* resid5ce is n det]m9$-- 7,i7
 9 :ole or 9 "p by ref]5ce to ! adju/$  

basis ( su* resid5ce 9 ! h&s ( ! p]son f
 :om acquir$1 or  7,,ii7 "u section     
#ajad7;a7 7relat+ to prop]ty acquir$ f a
 dec$5t74  7,e7 ,con/ruction ,a resid5ce
 :i* is con/ruct$ by ! taxpay] %all be  
treat$ z pur*as$ by ! taxpay] on ! date 
! taxpay] fir/ occupies su* resid5ce4   
7,f7 ,special rules relat+ to m>riage   
7i7 ,m>ri$ c\ples mu/ file jo9t return  
,if ! designat$ b5efici>y is m>ri$ on ! 
date ( ! di/ribution1 ! di/ribution %all
 n be treat$ z qualifi$ d[n paym5t      
assi/ance unless ! taxpay] & ! taxpay]'s
 sp\se file a jo9t return = ! taxable   
ye>4  7ii7 ,m>ital /atus ,an individual 
legally sep>at$ f 8 sp\se "u a decree ( 
divorce or ( sep>ate ma9t5ance %all n be
 consid]$ z m>ri$4  7#c7 ,designat$     
b5efici>y ,! t]m designat$ b5efici>y )  
respect to a fir/-"t home[n] assi/ance  
acc\nt means-- 7,a7 ! individual        
designat$ at ! e/abli%m5t ( ! acc\nt z !
 b5efici>y ( am\nts paid 7or to be paid7
 to ! acc\nt1 &  7,b7 9 ! case ( a *ange
 9 b5efici>ies describ$ 9 subsection    

7d77#c77;,c71 ! individual :o is ! new  
b5efici>y ( ! acc\nt4  7#d7 ,memb] (    
family ,! t]m memb] ( ! family means1 ) 
respect to any designat$ b5efici>y--    
7,a7 ! sp\se ( su* b5efici>y1  7,b7 an  
individual :o be>s a relation%ip to su* 
b5efici>y :i* is describ$ 9 subp>agraphs
 7,a7 ?r\gh 7,g7 ( section #aeb7;d77#b71
  7,c7 ! sp\se ( any individual describ$
 9 subp>agraph 7,b71 &  7,d7 any fir/   
c\s9 ( su* b5efici>y4  7d7 ,tax treatm5t
 ( designat$ b5efici>ies & contributors 
7#a7 ,9 g5]al ,except z o!rwise provid$ 
9 ?is subsection1 no am\nt %all be      
includible 9 gross income (-- 7,a7 a    
designat$ b5efici>y "u a qualifi$       
fir/-"t home[n] assi/ance program1 or   
7,b7 a contributor to su* program on    
behalf ( a designat$ b5efici>y1 )       
respect to any di/ribution or e>n+s "u  
su* program4  7#b7 ,gift tax treatm5t ( 
contributions ,= purposes ( *apt]s #ab &
 #ac-- 7,a7 ,9 g5]al ,any contribution  
to a qualifi$ fir/-"t home[n] assi/ance 
program on behalf ( any designat$       

b5efici>y--  7i7 %all be treat$ z a     
complet$ gift to su* b5efici>y :i* is n 
a future int]e/ 9 prop]ty1 &  7ii7 %all 
n be treat$ z a qualifi$ transf] "u     
section #bejc7;e74  7,b7 ,treatm5t (    
excess contributions = gift tax purposes
 ,if ! aggregate am\nt ( contributions  
describ$ 9 subp>agraph 7,a7 dur+ !      
cal5d> ye> by a donor exce$s !          
limitation = su* ye> "u section         
#bejc7;b71 su* aggregate am\nt %all1 at 
! election ( ! donor1 be tak5 into      
acc\nt = purposes ( su* section ratably 
ov] ! #e-ye> p]iod beg9n+ ) su* cal5d>  
ye>4  7#c7 ,di/ributions  7,a7 ,9 g5]al 
,any di/ribution "u a qualifi$ fir/-"t  
home[n] assi/ance program %all be       
includible 9 ! gross income ( !         
di/ributee 9 ! mann] z provid$ "u       
section #gb to ! ext5t n exclud$ f gross
 income "u ?is p>agraph4  7,b7          
,di/ributions = qualifi$ d[n paym5t     
assi/ance ,= purposes ( ?is p>agraph1   
if-- 7i7 di/ributions "u a qualifi$     
fir/-"t home[n] assi/ance program d n   

exce$ ! qualifi$ d[n paym5t assi/ance1  
no am\nt %all be includible 9 gross     
income1 &  7ii7 9 any o!r case1 ! am\nt 
o!rwise includible 9 gross income %all  
be r$uc$ by an am\nt :i* be>s ! same    
ratio to su* am\nt z su* assi/ance be>  
to su* di/ributions4  7,c7 ,*ange 9     
b5efici>ies or programs  7i7 ,rollov]s  
,subp>agraph 7,a7 %all n apply to t     
portion ( any di/ribution :i*1 )9 #fj   
days ( su* di/ribution1 is transf]r$--  
7,i7 to ano!r qualifi$ di/ribution "u a 
qualifi$ fir/-"t home[n] assi/ance      
program or ! b5efit ( ! designat$       
b5efici>y1 or  7,,ii7 to ! cr$it ( ano!r
 designat$ b5efici>y "u a qualifi$      
di/ribution "u a qualifi$ fir/-"t       
home[n] assi/ance program :o is a memb] 
( ! family ( ! designat$ b5efici>y )    
respect to :i* ! di/ribution 0 made4    
7ii7 ,*ange 9 designat$ b5efici>ies ,any
 *ange 9 ! designat$ b5efici>y ( an     
int]e/ 9 a qualifi$ di/ribution "u a    
qualifi$ fir/-"t home[n] assi/ance      
program %all n be treat$ z a di/ribution

 = purposes ( subp>agraph 7,a7 if ! new 
b5efici>y is a memb] ( ! family ( ! old 
b5efici>y4  7iii7 ,limitation on c]ta9  
rollov]s ,clause 7i77,i7 %all n apply to
 any transf] if su* transf] occurs )9   
#ab mon?s f ! date ( a previ\s transf]  
to any qualifi$ di/ribution "u a        
qualifi$ fir/-"t home[n] assi/ance      
program = ! b5efit ( ! designat$        
b5efici>y4  7#d7 ,e/ate tax treatm5t    
7,a7 ,9 g5]al ,no am\nt %all be         
includible 9 ! gross e/ate ( any        
individual = purposes ( *apt] #aa by    
reason ( an int]e/ 9 a qualifi$         
di/ribution "u a qualifi$ fir/-"t       
home[n] assi/ance program4  7,b7 ,am\nts
 includible 9 e/ate ( designat$         
b5efici>y 9 c]ta9 cases ,subp>agraph    
7,a7 %all n apply to am\nts di/ribut$ on
 acc\nt ( ! dea? ( a b5efici>y4  7,c7   
,am\nts includible 9 e/ate ( donor mak+ 
excess contributions ,9 ! case ( a donor
 :o makes ! election describ$ 9 p>agraph
 7#b77;,b7 & :o dies be=e ! close ( !   
#e-ye> p]iod ref]r$ to 9 su* p>agraph1  

not)/&+ subp>agraph 7,a71 ! gross e/ate 
( ! donor %all include ! portion ( su*  
contributions prop]ly allocable to      
p]iods aft] ! date ( dea? ( ! donor4    
7#e7 ,o!r gift tax rules ,= purposes (  
*apt]s #ab & #ac-- 7,a7 ,treatm5t (     
di/ributions ,except z provid$ 9        
subp>agraph 7,b71 9 no ev5t %all a      
di/ribution f a qualifi$ di/ribution "u 
a qualifi$ fir/-"t home[n] assi/ance    
program be treat$ z a taxable gift4     
7,b7 ,treatm5t ( designation ( new      
b5efici>y ,! taxes impos$ by *apt]s #ab 
& #ac %all apply to a transf] by reason 
( a *ange 9 ! designat$ b5efici>y "u !  
program 7or a rollov] to ! acc\nt ( a   
new b5efici>y7 unless ! new b5efici>y   
is--  7i7 assign$ to ! same g5]ation z  
7or a high] g5]ation ?an7 ! old         
b5efici>y 7det]m9$ 9 accordance )       
section #bfea71 &  7ii7 a memb] ( !     
family ( ! old b5efici>y4  7#f7         
,additional tax = di/ributions n us$ =  
qualifi$ d[npaym5t assi/ance  7,a7 ,9   
g5]al ,! tax impos$ by ?is *apt] = any  

taxable ye> on any taxpay] :o receives a
 paym5t or di/ribution f a qualifi$     
fir/-"t home[n] assi/ance program :i* is
 includible 9 gross income %all be      
increas$ by #aj p]c5t ( ! am\nt :i* is s
 includible4  7,b7 ,exceptions          
,subp>agraph 7,a7 %all n apply if !     
paym5t or di/ribution is-- 7i7 made to a
 b5efici>y 7or to ! e/ate ( ! designat$ 
b5efici>y7 on or aft] ! dea? ( !        
designat$ b5efici>y1  7ii7 attributable 
to ! designat$ b5efici>y's be+ disabl$  
7)9 ! mean+ ( section #gb7m77#g771 or   
7iii7 an am\nt :i* is includible 9 gross
 income solely by application ( p>agraph
 7#b77;,c77i77,,ii7 = ! taxable ye>4    
7,c7 ,contributions return$ be=e c]ta9  
date ,subp>agraph 7,a7 %all n apply to !
 di/ribution ( any contribution made    
dur+ a taxable ye> on behalf ( !        
designat$ b5efici>y if--  7i7 su*       
di/ribution is made be=e ! fir/ day ( ! 
six? mon? ( ! taxable ye> foll[+ !      
taxable ye>1 &  7ii7 su* di/ribution is 
accompani$ by ! am\nt ( net income      

attributable to su* excess contribution4
  ,any net income describ$ 9 clause 7ii7
 %all be includ$ 9 gross income = !     
taxable ye> 9 :i* su* excess            
contribution 0 made4  7e7 ,reports ,ea* 
(fic] or employee hav+ control ( !      
qualifi$ di/ribution "u a qualifi$      
fir/-"t home[n] assi/ance program or _! 
designee %all make su* reports reg>d+   
su* program to ! ,secret>y & to         
designat$ b5efici>ies ) respect to      
contributions1 di/ributions1 & su* o!r  
matt]s z ! ,secret>y may require4 ,!    
reports requir$ by ?is subsection %all  
be fil$ at su* "t & 9 su* mann] &       
furni%$ to su* individuals at su* "t & 9
 su* mann] z may be requir$ by !        
,secret>y4  7f7 ,regulations ,not)/&+   
any o!r provision ( ?is section1 !      
,secret>y %all prescribe su* regulations
 z may be necess>y or appropriate to    
c>ry out ! purposes ( ?is section & to  
prev5t abuse ( su* purposes1 includ+    
regulations "u *apt]s #aa1 #ab1 & #ac ( 
?is title4  4  7b7 ,con=m+ am5dm5ts     

7#a7 ,tax on ,excess ,contributions     
7,a7 ,9 g5]al ,subsection 7a7 ( section 
#digc ( su* ,code is am5d$ by /rik+ or  
at ! end ( p>agraph 7#e71 by ins]t+ or  
at ! end ( p>agraph 7#f71 & by ins]t+   
aft] p>agraph 7#f7 ! foll[+ new         
p>agraph3  7#g7 a fir/-"t home[n]       
assi/ance acc\nt 7z def9$ 9 section     
#ecj;,a71  4  7,b7 ,excess contribution 
,section #digc ( su* ,code is am5d$ by  
add+ at ! end ! foll[+ new subsection3  
7i7 ,excess ,contributions to fir/-,"t  
home[n] assi/ance acc\nt ,= purposes (  
?is section--  7#a7 ,9 g5]al ,9 ! case (
 a fir/-"t home[n] assi/ance acc\nt 7z  
def9$ 9 section #ecj;,a7 7)9 ! mean+ (  
section #ebi;,a71 ! t]m excess          
contributions means ! am\nt by :i* !    
am\nt contribut$ = ! taxable ye> to su* 
acc\nt 7o!r ?an contributions "u section
 #ecj;,a7d77#c77;,c77 exce$s !          
contribution limit "u section           
#ecj;,a7b77#b77;,c74  7#b7 ,special rule
 ,= purposes ( ?is subsection1 any      
contribution :i* is di/ribut$ out ( !   

fir/-"t home[n] assi/ance acc\nt 7z s   
def9$7 9 a di/ribution to :i* ! la/     
s5t5ce ( section #ecj;,a7d77#f77;,c7    
applies %all be treat$ z an am\nt n     
contribut$4  4  7#b7 ,section           
#bf7;b77#b7 is am5d$ by /rik+ & at ! end
 ( subp>agraph 7,x71 by /rik+ ! p]iod at
 ! end ( subp>agraph 7,y7 & ins]t+ 1 &1 
& by ins]t+ aft] subp>agraph 7,y7 !     
foll[+3  7,z7 section                   
#ecj;,a7d77#c77;,a7 7relat+ to          
additional tax on fir/-"t home[n]       
assi/ance acc\nt di/ributions n us$ =   
qualifi$ home[n] assi/ance74  4  7#c7   
,p5alty = ,failure to ,file ,reports    
,section #ffic7;a77#b7 ( su* ,code is   
am5d$ by /rik+ & at ! end ( subp>agraph 
7,e71 by /rik+ ! p]iod at ! end (       
subp>agraph 7,f7 & ins]t+ 1 &1 & by     
ins]t+ aft] subp>agraph 7,f7 ! foll[+3  
7,g7 section #ecj;,a7e7 7relat+ to      
qualifi$ fir/-"t home[n] assi/ance      
program71 &  4  7#d7 ,section #hgg;,a ( 
su* ,code is am5d$--  7,a7 9 subsection 
7e77#b7 by ins]t+ a qualifi$ fir/-"t    

home[n] assi/ance program 7z def9$ 9    
section #ecj;,a71 aft] #ecj711 &  7,b7 9
 subsection 7g77#f7 by ins]t+           
#ecj;,a7c77#c71 aft] #ebi7;c77#c714     
7#e7 ,section #dife7;c7 ( su* ,code is  
am5d$ by /rik+ or at ! end ( p>agraph   
7#g71 by /rik+ ! p]iod at ! end (       
p>agraph 7#h7 & ins]t+ 1 or1 & by ins]t+
 aft] p>agraph 7#h7 ! foll[+ new        
p>agraph3  7#i7 a program describ$ 9    
section #ecj;,a4  4  7c7 ,cl]ical       
am5dm5t ,! table ( sections = "p ,,viii 
( sub*apt] ,f ( *apt] #a ( su* ,code is 
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #ecj;,a4 ,qualifi$ fir/-"t 
home[n] assi/ance program4  4  7d7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4