,,ii #aafth ,,congress #ast ,session ,s4 #agjc ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #d1 #bjai,ms4 ,cantwell 7for herself1 ,mr4 ,young1 ,mr4 ,wyden1 and ,mr4 ,isakson7 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 reform the low-income housing credit1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,affordable ,housing ,credit ,improvement ,act of #bjai4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,reform of ,state allocation formulas ,sec4 #aja4 ,increases in ,state allocations4 ,,title ,,ii--,reforms relating to tenant eligibility ,sec4 #bja4 ,average income test applicability to exempt facility bonds4 ,sec4 #bjb4 ,codification of rules relating to increased tenant income4 ,sec4 #bjc4 ,modification of student occupancy rules4 ,sec4 #bjd4 ,tenant voucher payments taken into account as rent for certain purposes4 ,sec4 #bje4 ,requirement that low-income housing credit-supported housing protect victims of domestic abuse4 ,sec4 #bjf4 ,clarification of general public use requirement relating to veterans1 etc4 ,,title ,,iii--,credit rate and other rules relating to credit eligibility and determination ,sec4 #cja4 ,minimum credit rate4 ,sec4 #cjb4 ,reconstruction or replacement period after casualty loss4 ,sec4 #cjc4 ,modification and clarification of rights relating to building purchase4 ,sec4 #cjd4 ,modification of previous ownership rules2 limitation on acquisition basis4 ,sec4 #cje4 ,certain relocation costs taken into account as rehabilitation expenditures4 ,sec4 #cjf4 ,repeal of qualified census tract population cap4 ,sec4 #cjg4 ,determination of community revitalization plan to be made by housing credit agency4 ,sec4 #cjh4 ,prohibition of local approval and contribution requirements4 ,sec4 #cji4 ,increase in credit for certain projects designated to serve extremely low-income households4 ,sec4 #caj4 ,increase in credit for bond-financed projects designated by ,state agency4 ,sec4 #caa4 ,elimination of basis reduction for low-income housing properties receiving certain energy benefits4 ,sec4 #cab4 ,restriction of planned foreclosures4 ,sec4 #cac4 ,increase of population cap for difficult development areas4 ,sec4 #cad4 ,increased cost oversight and accountability4 ,,title ,,iv--,reforms relating to ,native ,american assistance ,sec4 #dja4 ,selection criteria under qualified allocation plans4 ,sec4 #djb4 ,inclusion of ,indian areas as difficult development areas for purposes of certain buildings4 ,,title ,v--,reforms relating to rural assistance ,sec4 #eja4 ,inclusion of rural areas as difficult development areas4 ,sec4 #ejb4 ,uniform income eligibility for rural projects4 ,,title ,,vi--,exempt facility bonds ,sec4 #fja4 ,revision and clarification of the treatment of refunding issues4 ,,title ,,vii--,affordable housing tax credit ,sec4 #gja4 ,affordable housing tax credit4 ,i ,reform of ,state allocation formulas #aja4 ,increases in ,state allocations 7a7 ,phase-,in of increases 7#a7 ,in general ,clause 7ii7 of section #db7;h77#c77;,c7 of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking #a4ge in subclause 7,i7 and inserting the per capita dollar amount1 and 7,b7 by striking #b1jjj1jjj in subclause 7,,ii7 and inserting the minimum ceiling amount4 7#b7 ,per capita dollar amount2 minimum ceiling amount ,subparagraph 7,i7 of section #db7;h77#c7 of such ,code is amended to read as follows3 7,i7 ,per capita dollar amount2 minimum ceiling amount ,for purposes of this paragraph-- 7i7 ,per capita dollar amount ,the per capita dollar amount is-- 7,i7 for calendar year #bjai1 #b4gf1 7,,ii7 for calendar year #bjbj1 #c4aj1 7,,iii7 for calendar year #bjba1 #c4di1 7,,iv7 for calendar year #bjbb1 #c4ic1 7,v7 for calendar year #bjbc1 #d4db1 and 7,,vi7 #d4if thereafter4 7ii7 ,minimum ceiling amount ,the minimum ceiling amount is-- 7,i7 for calendar year #bjai1 #c1aff1hge1 7,,ii7 for calendar year #bjbj1 #c1efe1dif1 7,,iii7 for calendar year #bjba1 #d1jaj1bac1 7,,iv7 for calendar year #bjbb1 #d1eaj1dhg1 7,v7 for calendar year #bjbc1 #e1jgc1aga1 and 7,,vi7 #e1gjj1dfh thereafter4 4 7#c7 ,modification of cost-of-living adjustment ,subparagraph 7,h7 of section #db7;h77#c7 of such ,code is amended-- 7,a7 by striking #bjjb in clause 7i7 and inserting #bjai1 7,b7 by striking the #b1jjj1jjj and #a4ge amounts in subparagraph 7,c7 in clause 7i7 and inserting the dollar amounts applicable to such calendar year under clauses 7i7 and 7ii7 of subparagraph 7,i71 7,c7 by striking #bjja in clause 7i77,,ii7 and inserting #bjah1 7,d7 by striking #b1jjj1jjj in clause 7ii77,i7 and inserting minimum ceiling1 and 7,e7 by striking #a4ge in clause 7ii77,,ii7 and inserting per capita dollar4 7#d7 ,effective date ,the amendments made by this subsection shall apply to calendar years beginning after ,december #ca1 #bjai4 7b7 ,permanent increases 7#a7 ,in general ,clause 7ii7 of section #db7;h77#c77;,c7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a77#a71 is amended-- 7,a7 by striking the per capita dollar amount in subclause 7,i7 and inserting #d4if1 and 7,b7 by striking the minimum ceiling amount in subclause 7,,ii7 and inserting #e1gjj1dfh4 7#b7 ,conforming amendment ,paragraph 7#c7 of section #db7;h7 of such ,code is amended by striking subparagraph 7,i71 as amended by subsection 7a77#b74 7#c7 ,cost-of-living adjustment ,subparagraph 7,h7 of section #db7;h77#c7 of such ,code1 as amended by subsection 7a77#c71 is amended-- 7,a7 by striking the dollar amounts applicable to such calendar year under clauses 7i7 and 7ii7 of subparagraph 7,i7 in clause 7i7 and inserting the #e1gjj1dfh and #d4if amounts in subparagraph 7,c71 7,b7 by striking minimum ceiling in clause 7ii77,i7 and inserting #e1gjj1dfh1 and 7,c7 by striking per capita dollar in clause 7ii77,,ii7 and inserting #d4if4 7#d7 ,effective date ,the amendments made by this subsection shall apply to calendar years beginning after ,december #ca1 #bjbd4 ,,ii ,reforms relating to tenant eligibility #bja4 ,average income test applicability to exempt facility bonds 7a7 ,in general ,paragraph 7#a7 of section #adb7;d7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking 7,a7 or 7,b7 and inserting 7,a71 7,b71 or 7,c71 and 7#b7 by inserting after subparagraph 7,b7 the following new subparagraph3 7,c7 ,average income test ,a project meets the requirements of this subparagraph if it meets the minimum requirements of section #db7;g77#a77;,c74 4 7b7 ,effective date ,the amendments made by this section shall apply to elections made under section #adb7;d77#a7 of the ,internal ,revenue ,code of #aihf after ,march #bc1 #bjah4 #bjb4 ,codification of rules relating to increased tenant income 7a7 ,in general ,clause 7i7 of section #db7;g77#b77;,d7 of the ,internal ,revenue ,code of #aihf is amended by striking clauses 7ii71 7iii71 and 7iv7 and all that follows and inserting 8clauses 7ii71 7iii71 7iv71 and 7vi71 notwithstanding an increase in the income of the occupants above the income limitation applicable under paragraph 7#a7-- 7,i7 a low-income unit shall continue to be treated as a low-income unit if the income of such occupants initially was #fj percent or less of area median gross income and such unit continues to be rent-restricted1 and 7,,ii7 a unit to which1 at the time of initial occupancy by such occupants1 any ,federal1 ,state1 or local government income restriction applied1 and which subsequently becomes part of a building with respect to which rehabilitation expenditures are taken into account under subsection 7e71 shall be treated as a low-income unit if the income of such occupants initially was #fj percent or less of area median gross income and does not exceed #abj percent of area median gross income as of the date of acquisition of the property by the taxpayer4 4 7b7 ,exception ,subparagraph 7,d7 of section #db7;g77#b7 of the ,internal ,revenue ,code of #aihf1 as amended by this ,act1 is amended by adding at the end the following new clause3 7vi7 ,exception to rule relating to increased tenant income ,in the case of an occupant of a low-income unit who initially qualified to occupy such unit by reason of paragraph 7#a77;,c7 with an income in excess of #fj percent of area median gross income but not in excess of #hj percent of area median gross income1 clause 7i7 shall be applied for substituting #hj percent for #fj percent each place it appears4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 #bjc4 ,modification of student occupancy rules 7a7 ,in ,general ,subparagraph 7,d7 of section #db7;i77#c7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,d7 ,rules relating to students 7i7 ,in general ,a unit occupied solely by individuals who-- 7,i7 have not attained age #bd1 and 7,,ii7 are enrolled in a full-time course of study at an institution of higher education 7as defined in section #ccjd7;f771 shall not be treated as a low-income unit4 7ii7 ,exception for certain ,federal programs ,in the case of a federally-assisted building 7as defined in subsection 7d77#f77;,c77i771 clause 7i7 shall not apply to a unit all of the occupants of which meet all applicable requirements under the housing program described in such subsection through which the building is assisted1 financed1 or operated4 7iii7 ,other exceptions ,an individual shall not be treated as described in clause 7i7 if the individual-- 7,i7 is married1 7,,ii7 is a person with disabilities 7as defined in section #c7;b77#c77;,e7 of the ,united ,states ,housing ,act of #aicg71 7,,iii7 is a veteran 7as defined in section #aja7b7 of title #ch1 ,united ,states ,code71 7,,iv7 has #a or more qualifying children 7as defined in section #aeb7;c771 7,v7 is or has been a victim or threatened victim of domestic violence1 dating violence1 sexual assault1 or stalking 7as defined in section #djjjb of the ,violence ,against ,women ,act of #aiid71 or 7,,vi7 meets the income limitation applicable under subsection 7g77#a7 to the project of which the building is a part and is1 or was immediately prior to attaining the age of majority-- 7aa7 an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's ,state of legal residence1 7bb7 under the care and placement responsibility of the ,state agency responsible for administering a plan under part ,b or part ,e of title ,,iv of the ,social ,security ,act1 or 7cc7 an unaccompanied youth 7within the meaning of section #gbe7f7 of the ,mc,kinney-,vento ,homeless ,assistance ,act 7#db ,u4,s4,c4 #aadcd;a7#f777 or a homeless child or youth 7within the meaning of section #gbe7b7 of such ,act 7#db ,u4,s4,c4 #aadcd;a7#b7774 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #bjd4 ,tenant voucher payments taken into account as rent for certain purposes 7a7 ,in general ,subparagraph 7,b7 of section #db7;g77#b7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new sentence3 ,in the case of a project with respect to which the taxpayer elects the requirements of subparagraph 7,c7 of paragraph 7#a71 or the portion of a project to which subsection 7d77#e77;,c7 applies1 clause 7i7 shall not apply with respect to any tenant-based assistance 7as defined in section #h7;f77#g7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7f77#g77744 7b7 ,effective date ,the amendments made by this section shall apply to rent paid in taxable years beginning after ,december #ca1 #bjai4 #bje4 ,requirement that low-income housing credit-supported housing protect victims of domestic abuse 7a7 ,in general ,subparagraph 7,b7 of section #db7;h77#f7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7v71 by striking the period at the end of clause 7vi7 and inserting 1 and1 and by adding at the end the following new clause3 7vii7 which-- 7,i7 prohibits the refusal to lease to1 or termination of a lease by1 a person solely on the basis of criminal activity directly relating to domestic violence1 dating violence1 sexual assault1 or stalking that is engaged in by a member of the household of the tenant or any guest or other person under the control of the tenant1 if the tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic violence1 dating violence1 sexual assault1 or stalking1 and 7,,ii7 allows prospective1 present1 or former occupants of the building the right to enforce in any ,state court the prohibition of subclause 7,i74 4 7b7 ,bifurcation 7#a7 ,in general ,subparagraph 7,b7 of section #db7;h77#f7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a71 is amended by adding at the end the following new flush sentence3 ,for purposes of clause 7vii77,i71 rules similar to the rules of section #dadaa7;b77#c77;,b7 of the ,violence ,against ,women ,act of #aiid shall apply with respect to the owner or manager of a building4 4 7#b7 ,effect of bifurcation ,paragraph 7#b7 of section #db7;g7 of such ,code is amended by adding at the end the following new subparagraph3 7,f7 ,treatment of bifurcation in cases of domestic violence ,in any case in which-- 7i7 an occupant is evicted or removed from a low-income unit because such occupant has engaged in criminal activity directly relating to domestic violence1 dating violence1 sexual assault1 or stalking against an affiliated individual or other individual on the basis of criminal activity directly relating to domestic violence1 dating violence1 sexual assault1 or stalking1 and 7ii7 the lease on such unit is bifurcated as provided in the last sentence of subsection 7h77#f77;,b71 then the remaining occupants of such low-income unit shall not be treated as a new tenant for purposes of this section4 4 7c7 ,clarification of general public use requirement ,paragraph 7#i7 of section #db7;g7 of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of subparagraph 7,b71 by striking the period at the end of subparagraph 7,c7 and inserting 1 or1 and by adding at the end the following new subparagraph3 7,d7 who are victims or threatened victims of criminal activity directly relating to domestic violence1 dating violence1 sexual assault1 or stalking4 4 7d7 ,effective dates 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall apply to agreements executed or modified on or after the date that is #cj days after the date of the enactment of this ,act4 7#b7 ,public use requirement ,the amendments made by subsection 7c7 shall apply to buildings placed in service before1 on1 or after the date of the enactment of this ,act4 #bjf4 ,clarification of general public use requirement relating to veterans1 etc 7a7 ,in general ,paragraph 7#i7 of section #db7;g7 of the ,internal ,revenue ,code of #aihf1 as amended by section #bje1 is further amended by adding at the end the following flush language3 ,any veteran of the ,armed ,forces shall be treated as a member of a specified group under a ,federal program for purposes of subparagraph 7,b74 4 7b7 ,qualified residential rental projects ,paragraph 7#b7 of section #adb7;d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,f7 ,clarification of general public use requirement ,a unit shall not fail to meet the general public use requirement solely because of occupancy restrictions or preferences1 if such restrictions or preferences meet the general public use requirement of section #db4 4 7c7 ,effective dates 7#a7 ,in general ,the amendment made by subsection 7a7 shall apply to buildings placed in service before1 on1 or after the date of the enactment of this ,act4 7#b7 ,qualified residential rental projects ,the amendment made by subsection 7b7 shall apply to bonds issued before1 on1 or after the date of the enactment of this ,act4 ,,iii ,credit rate and other rules relating to credit eligibility and determination #cja4 ,minimum credit rate 7a7 ,in general ,subsection 7b7 of section #db of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating paragraph 7#c7 as paragraph 7#d71 and 7#b7 by inserting after paragraph 7#b7 the following new paragraph3 7#c7 ,minimum credit rate ,in the case of any new or existing building to which paragraph 7#b7 does not apply and which is placed in service by the taxpayer after ,december #ca1 #bjah1 the applicable percentage shall not be less than #d percent4 4 7b7 ,effective date ,the amendments made by this section shall apply to buildings which receive allocations of housing credit dollar amount or1 in the case of projects financed by tax-exempt bonds as described in section #db7;h77#d7 of the ,internal ,revenue ,code of #aihf1 which receive a determination of housing credit dollar amount1 after the date of the enactment of this ,act4 #cjb4 ,reconstruction or replacement period after casualty loss 7a7 ,in general ,subparagraph 7,e7 of section #db7;j77#d7 of the ,internal ,revenue ,code of #aihf is amended by striking a reasonable period established by the ,secretary and inserting a reasonable period established by the applicable housing credit agency 7not to exceed #be months from the date on which the casualty loss arises74 ,the determination under paragraph 7#a7 shall not be made with respect to a property the basis of which is affected by a casualty loss until the period described in the preceding sentence with respect to such property has expired44 7b7 ,effective date ,the amendment made by this section shall apply to casualty losses arising after the date of the enactment of this ,act4 #cjc4 ,modification and clarification of rights relating to building purchase 7a7 ,modification of right of first refusal ,subparagraph 7,a7 of section #db7;i77#g7 of the ,internal ,revenue ,code of #aihf is amended by striking a right of #ast refusal and inserting an option4 7b7 ,clarification with respect to right of first refusal and purchase options 7#a7 ,purchase of partnership interest 7,a7 ,in general ,subparagraph 7,a7 of section #db7;i77#g7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a71 is amended by striking the property and inserting the property or all of the partnership interests 7other than interests of the person exercising such option or a related party thereto 7within the meaning of section #bfg7;b7 or #gjg7;b77#a77 relating to the property4 7,b7 ,conforming amendment ,subparagraph 7,b7 of section #db7;i77#g7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,in the case of a purchase of a partnership interest1 the minimum purchase price is an amount not less than such interest's ratable share of the amount determined under the first sentence of this subparagraph44 7#b7 ,property includes assets relating to the building ,paragraph 7#g7 of section #db7;i7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,property ,for purposes of subparagraph 7,a71 the term property may include all or any of the assets held for the development1 operation1 or maintenance of a building4 4 7#c7 ,exercise of right of first refusal and purchase options ,subparagraph 7,a7 of section #db7;i77#g7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a7 and paragraph 7#a77;,a71 is amended by adding at the end the following3 8,for purposes of determining whether an option1 including a right of first refusal1 to purchase property is described in the preceding sentence-- 7i7 such option or right of first refusal may be exercised with or without the approval of the taxpayer1 and 7ii7 a right of first refusal may be exercised in response to any offer to purchase the property1 including an offer by a related party4 4 7c7 ,effective dates 7#a7 ,modification of right of first refusal ,the amendment made by subsection 7a7 shall apply to agreements entered into after the date of the enactment of this ,act4 7#b7 ,clarification ,the amendments made by subsection 7b7 shall apply to agreements among the owners of the project 7including partners1 members1 their affiliated organizations1 and designated entities described in subparagraph 7,a77 entered into before1 on1 or after the date of the enactment of this ,act4 7#c7 ,no effect on agreements ,no provision of this amendment shall supercede the agreement among the parties as to the manner of execution or terms of a right of first refusal or option permitted by section #db7;i77#g74 #cjd4 ,modification of previous ownership rules2 limitation on acquisition basis 7a7 ,in general ,clause 7ii7 of section #db7;d77#b77;,b7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 or the taxpayer elects the application of subparagraph 7,c77ii7 after service4 7b7 ,limitation on acquisition basis ,subparagraph 7,c7 of section #db7;d77#b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking ,for purposes of subparagraph 7,a71 the adjusted basis and inserting 8,for purposes of subparagraph 7,a7-- 7i7 ,in general ,the adjusted basis 1 and 7#b7 by adding at the end the following new clauses3 7ii7 ,buildings in service within previous #aj years ,if the period between the date of acquisition of the building by the taxpayer and the date the building was last placed in service is less than #aj years1 the taxpayer's basis attributable to the acquisition of the building which is taken into account in determining the adjusted basis shall not exceed the sum of-- 7,i7 the lowest amount paid for acquisition of the building by any person during the #aj years preceding the date of the acquisition of the building by the taxpayer1 adjusted as provided in clause 7iii71 and 7,,ii7 the value of any capital improvements made by the person who sells the building to the taxpayer which are reflected in such seller's basis4 7iii7 ,adjustment ,with respect to a basis determination made in any taxable year1 the amount described in clause 7ii77,i7 shall be increased by an amount equal to-- 7,i7 such amount1 multiplied by 7,,ii7 a cost-of-living adjustment1 determined in the same manner as under section #a7;f77#c7 for the calendar year in which the taxable year begins by taking into account the acquisition year in lieu of calendar year #aiib4 ,for purposes of the preceding sentence1 the acquisition year is the calendar year in which the lowest amount referenced in clause 7ii77,i7 was paid for the acquisition of the building4 4 7c7 ,conforming amendments ,clause 7i7 of section #db7;d77#b77;,d7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking for subparagraph 7,b7 in the heading1 and 7#b7 by striking subparagraph 7,b77ii7 in the matter preceding subclause 7,i7 and inserting subparagraph 7,b77ii7 or 7,c77ii74 7d7 ,modification of placed in service rule ,clause 7iii7 of section #db7;d77#b77;,b7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7iii7 the building was not owned by the taxpayer or by any person related 7as of the date of acquisition by the taxpayer7 to the taxpayer at any time during the #e-year period ending on the date of acquisition by the taxpayer1 and 4 7e7 ,effective date ,the amendments made by this section shall apply to buildings placed in service after ,december #ca1 #bjah4 #cje4 ,certain relocation costs taken into account as rehabilitation expenditures 7a7 ,in general ,paragraph 7#b7 of section #db7;e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,certain relocation costs ,in the case of a rehabilitation of a building to which section #bhj;,b does not apply1 costs relating to the relocation of occupants1 including-- 7i7 amounts paid to occupants1 7ii7 amounts paid to third parties for services relating to such relocation1 and 7iii7 amounts paid for temporary housing for occupants1 shall be treated as chargeable to capital account and taken into account as rehabilitation expenditures4 4 7b7 ,effective date ,the amendment made by this section shall apply to expenditures paid or incurred after ,december #ca1 #bjah4 7c7 ,no inference ,nothing in the amendment made by this section shall be construed to create any inference with respect to the treatment of relocation costs paid or incurred before ,december #ca1 #bjah4 #cjf4 ,repeal of qualified census tract population cap 7a7 ,in general ,clause 7ii7 of section #db7;d77#e77;,b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking subclauses 7,,ii7 and 7,,iii71 and 7#b7 by striking 8,qualified census tract4-- 7,i7 ,in general ,the term 1 and inserting ,qualified census tract4--,the term4 7b7 ,effective date ,the amendments made by this section shall apply to designations of qualified census tracts under section #db7;d77#e77;,b77ii7 of the ,internal ,revenue ,code of #aihf after ,december #ca1 #bjai4 #cjg4 ,determination of community revitalization plan to be made by housing credit agency 7a7 ,in general ,subclause 7,,iii7 of section #db7m77#a77;,b77ii7 of the ,internal ,revenue ,code of #aihf is amended by inserting 1 as determined by the housing credit agency according to criteria established by such agency1 after 7d77#e77;,b77ii77 and4 7b7 ,criteria ,paragraph 7#a7 of section #db7m7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,criteria for determination relating to concerted community revitalization plan ,for purposes of subparagraph 7,b77ii77,,iii71 the criteria which shall be established by a housing credit agency for determining whether the development of a project contributes to a concerted community development plan shall take into account any factors the agency deems appropriate1 including the extent to which the proposed plan-- 7i7 is geographically specific1 7ii7 outlines a clear plan for implementation and goals for outcomes1 7iii7 includes a strategy for applying for or obtaining commitments of public or private investment 7or both7 in nonhousing infrastructure1 amenities1 or services1 and 7iv7 demonstrates the need for community revitalization4 4 7c7 ,effective date ,the amendments made by this section shall apply to allocations of housing credit dollar amounts made under qualified allocation plans 7as defined in section #db7m77#a77;,b7 of the ,internal ,revenue ,code of #aihf7 adopted after ,december #ca1 #bjai4 #cjh4 ,prohibition of local approval and contribution requirements 7a7 ,in general ,paragraph 7#a7 of section #db7m7 of the ,internal ,revenue ,code of #aihf1 as amended by section #cjg1 is further amended-- 7#a7 by striking clause 7ii7 of subparagraph 7,a7 and by redesignating clauses 7iii7 and 7iv7 thereof as clauses 7ii7 and 7iii71 and 7#b7 by adding at the end the following new subparagraph3 7,f7 ,local approval or contribution not taken into account ,the selection criteria under a qualified allocation plan shall not include consideration of-- 7i7 any support or opposition with respect to the project from local or elected officials1 or 7ii7 any local government contribution to the project1 except to the extent such contribution is taken into account as part of a broader consideration of the project's ability to leverage outside funding sources1 and is not prioritized over any other source of outside funding4 4 7b7 ,effective date ,the amendments made by this section shall apply to allocations of housing credit dollar amounts made after ,december #ca1 #bjai4 #cji4 ,increase in credit for certain projects designated to serve extremely low-income households 7a7 ,in general ,paragraph 7#e7 of section #db7;d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,increase in credit for projects designated to serve extremely low-income households ,in the case of any building-- 7i7 #bj percent or more of the residential units in which are designated by the taxpayer for occupancy by households the aggregate household income of which does not exceed the greater of-- 7,i7 #cj percent of area median gross income1 or 7,,ii7 #ajj percent of an amount equal to the ,federal poverty line 7within the meaning of section #cf;,b7d77#c771 and 7ii7 which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project1 subparagraph 7,b7 shall not apply to the portion of such building which is comprised of such units1 and the eligible basis of such portion of the building shall be #aej percent of such basis determined without regard to this subparagraph4 4 7b7 ,effective date ,the amendment made by this section shall apply to buildings which receive allocations of housing credit dollar amount or1 in the case of projects financed by tax-exempt bonds as described in section #db7;h77#d7 of the ,internal ,revenue ,code of #aihf1 which receive a determination of housing credit dollar amount1 after the date of the enactment of this ,act4 #caj4 ,increase in credit for bond-financed projects designated by ,state agency 7a7 ,in general ,clause 7v7 of section #db7;d77#e77;,b7 of the ,internal ,revenue ,code of #aihf is amended by striking the second sentence4 7b7 ,technical amendment ,clause 7v7 of section #db7;d77#e77;,b7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7a71 is further amended-- 7#a7 by striking ,state in the heading1 and 7#b7 by striking ,state housing credit agency and inserting housing credit agency4 7c7 ,effective date ,the amendments made by this section shall apply to buildings which receive a determination of housing credit dollar amount after the date of the enactment of this ,act4 #caa4 ,elimination of basis reduction for low-income housing properties receiving certain energy benefits 7a7 ,new energy efficient home credit ,subsection 7e7 of section #de,l of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking adjustment4--,for purposes and inserting 8adjustment4-- 7#a7 ,in general ,for purposes 1 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,exception for affordable housing properties ,paragraph 7#a7 shall not apply for purposes of determining eligible basis under section #db4 4 7b7 ,energy efficient commercial buildings deduction ,subsection 7e7 of section #agi;,d of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking reduction4--,for purposes and inserting 8reduction4-- 7#a7 ,in general ,for purposes 1 and 7#b7 by adding at the end the following new paragraph3 7#b7 ,exception for affordable housing properties ,paragraph 7#a7 shall not apply for purposes of determining eligible basis under section #db4 4 7c7 ,energy credit ,paragraph 7#c7 of section #ej7;c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking and at the end of subparagraph 7,a71 7#b7 by striking the period at the end of subparagraph 7,b7 and inserting 1 and1 and 7#c7 by adding at the end the following new subparagraph3 7,c7 paragraph 7#a7 shall not apply for purposes of determining eligible basis under section #db4 4 7d7 ,effective date ,the amendments made by this section shall apply to buildings which receive allocations of housing credit dollar amount or1 in the case of projects financed by tax-exempt bonds as described in section #db7;h77#d7 of the ,internal ,revenue ,code of #aihf1 which receive a determination of housing credit dollar amount1 after the date of the enactment of this ,act4 #cab4 ,restriction of planned foreclosures 7a7 ,in general ,subclause 7,i7 of section #db7;h77#f77;,e77i7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,i7 on the #fast day after the taxpayer 7or a successor in interest7 provides notice to the ,secretary and the housing credit agency that the building has been acquired by foreclosure 7or instrument in lieu of foreclosure7 and that the taxpayer intends the termination of such period1 unless1 before such date1 the ,secretary or the housing credit agency determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period1 or 4 7b7 ,conforming amendment ,the second sentence of clause 7i7 of section #db7;h77#f77;,e7 of the ,internal ,revenue ,code of #aihf is amended by striking ,subclause 7,,ii7 and inserting ,subclauses 7,i7 and 7,,ii74 7c7 ,effective date ,the amendments made by this section shall apply to acquisitions by foreclosure 7or instrument in lieu of foreclosure7 after ,december #ca1 #bjah4 #cac4 ,increase of population cap for difficult development areas 7a7 ,in general ,subclause 7,,ii7 of section #db7;d77#e77;,b77iii7 of the ,internal ,revenue ,code of #aihf is amended by striking #bj percent and inserting #cj percent4 7b7 ,effective date ,the amendment made by this section shall apply to designations made under section #db7;d77#e77;,b77iii7 of the ,internal ,revenue ,code of #aihf after ,december #ca1 #bjai4 #cad4 ,increased cost oversight and accountability 7a7 ,in general ,subparagraph 7,c7 of section #db7m77#a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7ix71 by striking the period at the end of clause 7x7 and inserting 1 and1 and by adding at the end the following new clause3 7xi7 the reasonableness of the development costs of the project4 4 7b7 ,effective date ,the amendments made by this section shall apply to allocations of credits under section #db of the ,internal ,revenue ,code of #aihf made after ,december #ca1 #bjai4 ,,iv ,reforms relating to ,native ,american assistance #dja4 ,selection criteria under qualified allocation plans 7a7 ,in general ,subparagraph 7,c7 of section #db7m77#a7 of the ,internal ,revenue ,code of #aihf1 as amended by section #cad1 is amended-- 7#a7 by striking and at the end of clause 7x71 by striking the period at the end of clause 7xi7 and inserting 1 and1 and by adding at the end the following new clause3 7xii7 the affordable housing needs of individuals in the ,state who are enrolled members of a tribe with respect to an ,indian tribal government4 1 and 7#b7 by adding at the end the following flush sentence3 ,for purposes of clause 7xii71 the term ,indian tribal government includes any agencies or instrumentalities of an ,indian tribal government and any ,alaska ,native regional or village corporation1 as defined in1 or established pursuant to1 the ,alaska ,native ,claims ,settlement ,act 7#dc ,u4,s4,c4 #afja et seq474 4 7b7 ,effective date ,the amendments made by this section shall apply to allocations of credits under section #db of the ,internal ,revenue ,code of #aihf made after ,december #ca1 #bjai4 #djb4 ,inclusion of ,indian areas as difficult development areas for purposes of certain buildings 7a7 ,in general ,subclause 7,i7 of section #db7;d77#e77;,b77iii7 of the ,internal ,revenue ,code of #aihf is amended by inserting before the period the following3 1 and any ,indian area4 7b7 ,indian area ,clause 7iii7 of section #db7;d77#e77;,b7 of the ,internal ,revenue ,code of #aihf is amended by redesignating subclause 7,,ii7 as subclause 7,,iii7 and by inserting after subclause 7,i7 the following new subclause3 7,,ii7 ,indian area ,for purposes of subclause 7,i71 the term ,indian area means any ,indian area 7as defined in section #d7aa7 of the ,native ,american ,housing ,assistance and ,self ,determination ,act of #aiif 7#be ,u4,s4,c4 #dajc7aa7774 4 7c7 ,eligible buildings ,clause 7iii7 of section #db7;d77#e77;,b7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7b71 is amended by adding at the end the following new subclause3 7,,iv7 ,special rule for buildings in ,indian areas ,in the case of an area which is a difficult development area solely because it is an ,indian area1 a building shall not be treated as located in such area unless such building is assisted or financed under the ,native ,american ,housing ,assistance and ,self ,determination ,act of #aiif 7#be ,u4,s4,c4 #daja et seq47 or the project sponsor is an ,indian tribe 7as defined in section #de;,a7c77#f771 a tribally designated housing entity 7as defined in section #d7bb7 of such ,act 7#be ,u4,s4,c4 #dajc7bb7771 or wholly owned or controlled by such an ,indian tribe or tribally designated housing entity4 4 7d7 ,effective date ,the amendments made by this section shall apply to buildings placed in service after ,december #ca1 #bjai4 ,v ,reforms relating to rural assistance #eja4 ,inclusion of rural areas as difficult development areas 7a7 ,in general ,subclause 7,i7 of section #db7;d77#e77;,b77iii7 of the ,internal ,revenue ,code of #aihf1 as amended by section #djb1 is amended by inserting 1 any rural area after median gross income4 7b7 ,rural area ,clause 7iii7 of section #db7;d77#e77;,b7 of the ,internal ,revenue ,code of #aihf1 as amended by section #djb1 is further amended by redesignating subclause 7,,iii7 as subclause 7,,iv7 and by inserting after subclause 7,,ii7 the following new subclause3 7,,iii7 ,rural area ,for purposes of subclause 7,i71 the term rural area means any non-metropolitan area1 or any rural area as defined by section #ebj of the ,housing ,act of #aidi1 which is identified by the qualified allocation plan under subsection 7m77#a77;,b74 4 7c7 ,effective date ,the amendments made by this section shall apply to buildings placed in service after ,december #ca1 #bjai4 #ejb4 ,uniform income eligibility for rural projects 7a7 ,in general ,paragraph 7#h7 of section #db7;i7 of the ,internal ,revenue ,code of #aihf is amended by striking the second sentence4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjah4 ,,vi ,exempt facility bonds #fja4 ,revision and clarification of the treatment of refunding issues 7a7 ,in general ,subparagraph 7,a7 of section #adf7;i77#f7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,a7 ,in general ,during the #ab-month period beginning on the date of a repayment of a loan financed by an issue #ie percent or more of the net proceeds of which are used to provide projects described in section #adb7;d71 if such repayment is used to provide a new loan for any project described in section #adb7;a77#g7 or for any purpose described in subsection 7a77#b77;,a7 or 7b7 of section #adc1 any bond which is issued to refinance such issue shall be treated as a refunding issue4 ,any issue treated as a refunding issue by reason of the preceding sentence shall be so treated only to the extent the principal amount of such refunding issue does not exceed the principal amount of the bonds refunded4 4 7b7 ,removal of one-,refunding limit ,subparagraph 7,b7 of section #adf7;i77#f7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #d years in clause 7i7 and inserting #aj years1 7#b7 by striking was issued in clause 7ii7 and inserting is issued1 7#c7 by redesignating clauses 7i7 7as so amended71 7ii7 7as so amended71 and 7iii7 as subclauses 7,i71 7,,ii71 and 7,,iii71 respectively1 and by moving such subclauses #b ems to the right1 7#d7 by striking ,limitations4--,subparagraph 7,a7 shall apply to only one refunding of the original issue and and inserting 8,limitations4-- 7i7 ,in general ,subparagraph 7,a7 shall apply to a bond 1 and 7#e7 by adding at the end the following new clause3 7ii7 ,source of loan repayment ,subparagraph 7,a7 shall not apply to any repayment of a loan which is-- 7,i7 made by a repayment of another loan1 or 7,,ii7 financed by an issue treated as a refunding issue under subparagraph 7,a74 4 7c7 ,conforming amendment ,the heading of paragraph 7#f7 of section #adf7;i7 of the ,internal ,revenue ,code of #aihf is amended by striking residential rental project bonds as refunding bonds irrespective of obligor and inserting bonds as refunding bonds4 7d7 ,effective dates 7#a7 ,in general ,the amendments made by subsections 7a7 and 7c7 shall apply to obligations issued on or after the date of the enactment of this ,act4 7#b7 ,removal of one-refunding limit ,the amendments made by subsection 7b7 shall apply to repayments of loans received after ,july #cj1 #bjjh4 ,,vii ,affordable housing tax credit #gja4 ,affordable housing tax credit 7a7 ,in general ,the heading of section #db of the ,internal ,revenue ,code of #aihf is amended by striking ,low-income and inserting ,affordable4 7b7 ,conforming amendments 7#a7 ,subsection 7a7 of section #db of the ,internal ,revenue ,code of #aihf is amended by striking low-income and inserting affordable4 7#b7 ,paragraph 7#e7 of section #ch7;b7 of such ,code is amended by striking low-income and inserting affordable4 7#c7 ,the heading of subparagraph 7,d7 of section #dfi7;i77#c7 of such ,code is amended by striking low-income and inserting affordable4 7#d7 ,the heading of subparagraph 7,b7 of section #dfi7;i77#f7 of such ,code is amended by striking low-income and inserting affordable4 7#e7 ,paragraph 7#g7 of section #ggb7;a7 of such ,code is amended by striking low-income and inserting affordable4 7#f7 ,paragraph 7#e7 of section #ggb7;d7 of such ,code is amended by striking low-income and inserting affordable4 7c7 ,clerical amendment ,the item relating to section #db in the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended to read as follows3 ,sec4 #db4 ,affordable housing credit4 4