,,ii #aafth ,,congress #b;d ,session ,s4 #djgh ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #be1 #bjbj,mr4 ,wyden 7for himself1 ,ms4 ,cantwell1 ,mr4 ,bennet1 and ,mr4 ,cardin7 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 improve the low-income housing credit and provide relief relating to the coronavirus emergency1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,emergency ,affordable ,housing ,act of #bjbj4 #b4 ,extension of period for rehabilitation expenditures 7a7 ,in general ,clause 7ii7 of section #db7;e77#c77;,a7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7any #cf-month period1 in the case of buildings receiving an allocation of housing credit dollar amount before ,january #a1 #bjbb7 after #bd-month period4 7b7 ,conforming amendment ,subparagraph 7,a7 of section #db7;e77#d7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7or #cf-month period1 if applicable7 after #bd-month period4 7c7 ,effective date ,the amendments made by this section shall apply to buildings receiving an allocation of housing credit dollar amount after ,december #ca1 #bjaf4 #c4 ,extension of basis expenditure deadline 7a7 ,in general ,clause 7i7 of section #db7;h77#a77;,e7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7the third calendar year1 in the case of an allocation made before ,january #a1 #bjbb7 after second calendar year4 7b7 ,qualified building ,clause 7ii7 of section #db7;h77#a77;,e7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking the date which is #a year after the date that the allocation was made and inserting the applicable date2 7#b7 by inserting 7or third1 if applicable7 after second in the first sentence2 7#c7 by inserting 7or third7 after second in the second sentence2 7#d7 by striking building4--,for purposes of and inserting 8building4-- 7,i7 ,in general ,for purposes of 2 and 7#e7 by adding at the end the following new subclause3 7,,ii7 ,applicable date ,for purposes of subclause 7,i71 the applicable date is #a year after the date that the allocation was made with respect to the building 7#b years1 in the case of allocations made before ,january #a1 #bjbb74 4 7c7 ,effective date ,the amendments made by this section shall apply to buildings receiving an allocation of housing credit dollar amount after ,december #ca1 #bjaf4 #d4 ,tax-exempt bond financing requirement 7a7 ,in general ,subparagraph 7,b7 of section #db7;h77#d7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 ,in the case of buildings financed by an obligation issued in calendar years ending before ,january #a1 #bjbb1 the preceding sentence shall be applied by substituting #be percent for #ej percent44 7b7 ,effective date ,the amendment made by this section shall apply to buildings placed in service in taxable years beginning after ,december #ca1 #bjai4 #e4 ,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#d72 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 apply1 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 are placed in service by the taxpayer after ,january #bj1 #bjbj4 #f4 ,increases in ,state allocations 7a7 ,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 #d4ef 7#c4eh in the case of calendar year #bjba72 and 7#b7 by striking #b1jjj1jjj in subclause 7,,ii7 and inserting #e1bad1jea 7#d1jig1dhf in the case of calendar year #bjba74 7b7 ,cost-of-,living adjustment ,subparagraph 7,h7 of section #db7;h77#c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #bjjb in clause 7i7 and inserting #bjbj2 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 subclauses 7,i7 and 7,,ii7 of subparagraph 7,c77ii72 7#c7 by striking #bjja in clause 7i77,,ii7 and inserting #bjai2 7#d7 by striking #b1jjj1jjj amount in clause 7ii77,i7 and inserting amount under subparagraph 7,c77ii77,,ii72 and 7#e7 by striking #a4ge amount in clause 7ii77,,ii7 and inserting amount under subparagraph 7,c77ii77,i74 7c7 ,effective date ,the amendments made by this section shall apply to calendar years beginning after ,december #ca1 #bjbj4 #g4 ,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 rent-restricted 7determined as if the imputed income limitation applicable to such units were #cj percent of area median gross income7 and 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 ,reserved ,state allocation ,subparagraph 7,c7 of section #db7;h77#c7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking plus at the end of clause 7iii72 7#b7 by striking the period at the end of clause 7iv7 and inserting 1 plus2 7#c7 by inserting after clause 7iv7 the following new clause3 7v7 an amount equal to #aj percent of the sum of the amounts determined under clauses 7i71 7ii71 7iii71 and 7iv7 7if any74 2 and 7#d7 by adding at the end the following3 ,any amount allocated pursuant to clause 7v7 shall be accounted for separately and shall be allocated only to buildings to which subsection 7d77#e77;,c7 applies44 7c7 ,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 #h4 ,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,,iv7 and by inserting after subclause 7,i7 the following new subclauses3 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 7,,iii7 ,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 7c7 ,effective date ,the amendments made by this section shall apply to buildings placed in service after ,december #ca1 #bjai4 #i4 ,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 #h1 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 #h1 is further amended by redesignating subclause 7,,iv7 as subclause 7,v7 and by inserting after subclause 7,,iii7 the following new subclause3 7,,iv7 ,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 #aj4 ,increase in credit for bond-financed projects designated by housing credit 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 heading2 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 #aa4 ,repeal of qualified contract option 7a7 ,termination of option for certain buildings 7#a7 ,in general ,subclause 7,,ii7 of section #db7;h77#f77;,e77i7 of the ,internal ,revenue ,code of #aihf is amended by inserting in the case of a building described in clause 7iii71 before on the last day4 7#b7 ,buildings described ,subparagraph 7,e7 of section #db7;h77#f7 of such ,code is amended by adding at the end the following new clause3 7iii7 ,buildings described ,a building described in this clause is a building-- 7,i7 which received its allocation of housing credit dollar amount before ,january #a1 #bjbj1 or 7,,ii7 in the case of a building any portion of which is financed as described in paragraph 7#d71 which received before ,january #a1 #bjbj1 a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building is eligible to receive an allocation of housing credit dollar amount under the rules of paragraphs 7#a7 and 7#b7 of subsection 7m74 4 7b7 ,rules relating to existing projects ,subparagraph 7,f7 of section #db7;h77#f7 of the ,internal ,revenue ,code of #aihf is amended by striking the nonlow-income portion and all that follows and inserting the nonlow-income portion and the low-income portion of the building for fair market value 7determined by the housing credit agency by taking into account the rent restrictions required for the low-income portion of the building to continue to meet the standards of paragraphs 7#a7 and 7#b7 of subsection 7g774 ,the ,secretary shall prescribe such regulations as may be necessary or appropriate to carry out this paragraph44 7c7 ,conforming amendments 7#a7 ,paragraph 7#f7 of section #db7;h7 of the ,internal ,revenue ,code of #aihf is amended by striking subparagraph 7,g7 and by redesignating subparagraphs 7,h71 7,i71 7,j71 and 7,k7 as subparagraphs 7,g71 7,h71 7,i71 and 7,j71 respectively4 7#b7 ,subclause 7,,ii7 of section #db7;h77#f77;,e77i7 of such ,code1 as amended by subsection 7a71 is further amended by striking subparagraph 7,i7 and inserting subparagraph 7,h74 7d7 ,technical amendment ,subparagraph 7,i7 of section #db7;h77#f7 of the ,internal ,revenue ,code of #aihf1 as redesignated by subsection 7c71 is amended by striking agreement and inserting commitment4 7e7 ,effective date ,the amendments made by this section shall apply to buildings with respect to which a written request described in section #db7;h77#f77;,h7 of the ,internal ,revenue ,code of #aihf is submitted after the date of the enactment of this ,act4 #ab4 ,prohibition of local approval and contribution requirements 7a7 ,in general ,paragraph 7#a7 of section #db7m7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking clause 7ii7 of subparagraph 7,a7 and by redesignating clauses 7iii7 and 7iv7 thereof as clauses 7ii7 and 7iii72 and 7#b7 by adding at the end the following new subparagraph3 7,e7 ,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 #bjbj4 #ac4 ,adjustment of credit to provide relief during ,,covid-#ai outbreak 7a7 ,in general ,at the election of a taxpayer who is an owner of an eligible low-income building-- 7#a7 the credit determined under section #db of the ,internal ,revenue ,code of #aihf for the first or second taxable year of such building's credit period ending on or after ,july #a1 #bjbj1 shall be #aej percent of the amount which would 7but for this subsection7 be so allowable with respect to such building for such taxable year2 and 7#b7 the aggregate credits allowable under such section with respect to such building shall be reduced1 on a pro rata basis for each subsequent taxable year in the credit period1 by the increase in the credit allowed by reason of paragraph 7#a7 with respect to such first or second taxable year4 ,the preceding sentence shall not be construed to affect whether any taxable year is part of the credit1 compliance1 or extended use periods for purposes of such section #db4 7b7 ,eligible low-,income building ,for purposes of this section1 the term eligible low-income building means a qualified low-income building with respect to which-- 7#a7 the first year in the credit period ends on or after ,july #a1 #bjbj1 and before ,july #a1 #bjbb2 and 7#b7 construction or leasing delays have occurred after ,january #ca1 #bjbj1 due to the outbreak of coronavirus disease #bjai 7,,covid-#ai7 in the ,united ,states4 7c7 ,election 7#a7 ,in general ,the election under subsection 7a7 shall be made at such time and in such manner as shall be prescribed by the ,secretary of the ,treasury 7or the ,secretary's delegate7 and1 once made1 shall be irrevocable by the taxpayer and any successor in ownership4 7#b7 ,partnerships ,in the case of an eligible low-income building owned by a partnership or ,s corporation1 such election shall be made at the entity level4 7#c7 ,certification ,an owner making such election shall provide to the housing credit agency1 at the same time and in addition to such other information as may be required under section #db7l77#a7 of the ,internal ,revenue ,code of #aihf with respect to the building1 a certification that the purpose of making such election is to offset any reductions in capital or additional costs arising by reason of the outbreak of coronavirus disease #bjai 7,,covid-#ai7 in the ,united ,states4 ,such certification shall include any documentation which the housing credit agency may request4 7d7 ,definitions ,any term used in this section which is also used in section #db of the ,internal ,revenue ,code of #aihf shall have the same meaning as when used in such section4 #ad4 ,credit for low-income housing supportive services 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #db the following new section3 #db;,a4 ,credit for contributions to low-income housing supportive services 7a7 ,in general ,for purposes of section #ch1 the amount of the low-income housing supportive services credit determined under this section for the applicable taxable year is an amount equal to #be percent of the qualified supportive housing contribution made by the taxpayer4 7b7 ,qualified supportive housing contribution ,for purposes of this section-- 7#a7 ,in general ,the term qualified supportive housing contribution means the total amount contributed in cash by the taxpayer to a qualified supportive housing reserve fund with respect to a qualified low-income building1 determined as of the date the building is placed in service4 7#b7 ,qualified supportive housing reserve fund ,the term qualified supportive housing reserve fund means1 with respect to any qualified low-income building1 a separate fund reserved exclusively for payment for qualified supportive services provided to tenants of the building pursuant to an extended supportive services commitment4 ,the owner of such building shall designate an administrator to separately account for the amounts in the fund in such manner as the ,secretary may prescribe4 7#c7 ,limitations 7,a7 ,in general ,no amount attributable to any governmental grant1 including grants provided by the government of any ,state1 possession1 tribe1 or locality1 shall be taken into account under paragraph 7#a74 7,b7 ,dollar limitation ,the total qualified supportive housing contributions taken into account under this section with respect to any qualified low-income building shall not exceed-- 7i7 #abj1jjj1 multiplied by 7ii7 the number of low-income units in the building which are occupied at the close of the applicable taxable year4 7c7 ,applicable taxable year ,for purposes of this section1 the term applicable taxable year means the first taxable year in the credit period with respect to the qualified low-income building described in subsection 7b77#a74 7d7 ,qualified supportive services ,for purposes of this section1 the term qualified supportive services means services-- 7#a7 provided by the owner of a qualified low-income building 7directly or through contracts with a third party service provider7 to tenants of the building1 7#b7 which include health services 7including mental health services71 coordination of tenant benefits1 job training1 financial counseling1 resident engagement services1 or services the principal purpose of which is to help tenants retain permanent housing1 or such other services as the ,secretary may by regulation provide1 7#c7 which are provided at no cost to tenants1 and 7#d7 usage of or participation in which is not required for tenants4 ,such term includes reasonable and necessary measures for the provision of such services1 including measures to engage tenants in and coordinate such services and measures required to obtain the certification described in subsection 7e77#d74 7e7 ,extended supportive services commitment ,the term extended supportive services commitment means any agreement between the owner of a qualified low-income building and the housing credit agency which-- 7#a7 requires that amounts in a qualified supportive housing reserve fund are spent exclusively on the provision of qualified supportive services to tenants of such building1 7#b7 requires that the amounts in such fund be spent entirely during the extended use period1 and provides for the manner in which such spending will be distributed across such period1 7#c7 requires the designation of one or more individuals to engage tenants regarding and coordinate delivery of qualified supportive services1 7#d7 requires the maintenance of an appropriate certification1 as determined by the ,secretary in consultation with the housing credit agencies1 for qualified supportive services1 subject to recertification at least once every #e years1 7#e7 requires appropriate annual reporting to the housing credit agency on expenditures and outcomes1 as determined by such agency1 and 7#f7 is binding on all successors in ownership of such building4 7f7 ,recapture of qualified supportive housing reserve amounts 7#a7 ,in general ,if the owner of a qualified low-income building is determined to be noncompliant with the extended supportive services commitment or extended low-income housing commitment with respect to such building1 any remaining amounts in the qualified supportive housing reserve fund with respect to such building shall be transferred to the housing credit agency4 7#b7 ,use of repayments ,a housing credit agency shall use any amount received pursuant to paragraph 7#a7 only for purposes of qualified low-income buildings4 7g7 ,special rules 7#a7 ,in general ,notwithstanding any other provision of this section1 no credit shall be allowed under this section for any taxable year with respect to any qualified low-income building unless-- 7,a7 the building has received an allocation of the low-income housing credit under section #db by a housing credit agency which is approved by the governmental unit 7in accordance with rules similar to the rules of section #adg7;f77#b7 7other than subparagraph 7,b77ii7 thereof77 of which such agency is a part1 7,b7 the housing credit agency sets forth selection criteria to determine appropriate1 evidence-based supportive services and provides a procedure that the agency 7or an agent or other private contractor of such agency7 will follow in monitoring for noncompliance with the provisions of this section and in reporting such noncompliance to the ,secretary1 7,c7 an extended low-income housing commitment is in effect with respect to such building as of the end of such taxable year1 7,d7 an extended supportive services commitment is in effect with respect to such building as of the end of such taxable year1 and 7,e7 appropriate books and records for itemized expenses and expenditures with respect to the qualified supportive housing reserve fund are maintained on an annual basis1 and are available for inspection upon request by the housing credit agency4 7#b7 ,denial of double benefit ,the deductions otherwise allowed under this chapter for the taxable year shall be reduced by the amount of the credit allowed under this section for such taxable year4 7h7 ,definitions ,any term used in this section which is also used in section #db shall have the same meaning as when used in such section4 4 7b7 ,credit ,to be 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#cb71 by striking the period at the end of paragraph 7#cc7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cd7 the low-income housing supportive services credit determined under section #db;,a7a74 4 7#b7 ,treatment as specified credit ,clause 7iii7 of section #ch7;c77#d77;,b7 of such ,code is amended by inserting 1 and the credit determined under section #db;,a after #bjjg4 7c7 ,treatment for purposes of tax on base erosion payments ,paragraph 7#d7 of section #ei;,a7b7 of the ,internal ,revenue ,code of #aihf is amended by redesignating subparagraphs 7,b7 and 7,c7 as subparagraphs 7,c7 and 7,d71 respectively1 and by inserting after subparagraph 7,a7 the following new subparagraph3 7,b7 the low-income housing supportive services credit determined under section #db;,a7a71 4 7d7 ,passive activity credits 7#a7 ,in general ,section #dfi of the ,internal ,revenue ,code of #aihf is amended by striking #db each place it appears in subsections 7i77#c77;,c71 7i77#f77;,b77i71 and 7k77#a7 and inserting #db or #db;,a4 7#b7 ,conforming amendments ,the headings of subsections 7i77#c77;,c7 and 7i77#f77;,b7 of section #dfi of such ,code are each amended by striking credit and inserting credits4 7e7 ,clerical amendment ,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 by inserting after the item relating to section #db the following new item3 ,sec4 #db;,a4 ,credit for contributions to low-income housing supportive services4 4 7f7 ,effective date ,the amendments made by this section shall apply to buildings placed in service after ,december #ca1 #bjbj4