,i  #aag? ,,congress  #b;d ,session  ,h4
 ,r4 #ibdf  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,octob] #bh1 #bjbb,mr4
 ,khanna 7= himself1 ,ms4 ,port]1 & ,mr4
 ,takano7 introduc$ ! foll[+ bill2 :i* 0
 ref]r$ to ! ,committee on ,ways &      
,means1 & 9 addition to ! ,committee on 
,f9ancial ,s]vices1 = a p]iod to be     
subsequ5tly det]m9$ by ! ,speak]1 9 ea* 
case = consid]ation ( su* provisions z  
fall )9 ! jurisdiction ( ! committee    
conc]n$  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to disall[ !      
d$uction ( c]ta9 exp5ses relat+ to      
own]%ip ( s+le-family homes by specifi$ 
l>ge inve/ors1 to impose an excise tax  
on ! sale ( su* homes by su* inve/ors1  
to e/abli% ! neighborhood homes tax     
cr$it1 & to prohibit ,f$]al mortgage    
assi/ance relat+ to c]ta9 l>ge inve/ors4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,/op ,wall ,/reet ,l&lords ,act (   
#bjbb4  #b4 ,disall[ance ( d$uction (   
c]ta9 exp5ses relat$ to s+le-family     
homes held by specifi$ l>ge inve/ors    

7a7 ,9 g5]al ,"p ,,ix ( sub*apt] ,b (   
,*apt] #a ( subtitle ,a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3  #bhj;,i4
 ,c]ta9 exp5ses relat$ to s+le-family   
homes held by specifi$ l>ge inve/ors    
7a7 ,9 g5]al ,9 ! case ( a specifi$ l>ge
 inve/or1 no d$uction %all be all[$ "u  
?is *apt] = ! foll[+ exp5ses relat+ to !
 own]%ip ( a s+le-family home3 7#a7     
,am\nts paid or incurr$ = ! int]e/ on a 
mortgage relat+ to su* s+le-family home 
or to insure su* s+le-family home4  7#b7
 ,depreciation ( su* s+le-family home4  
7b7 ,specifi$ l>ge inve/or ,= purposes (
 ?is section-- 7#a7 ,9 g5]al ,! t]m     
specifi$ l>ge inve/or means any p]son = 
any taxable ye> if ! aggregate fair     
m>ket value ( all assets ( su* p]son    
7r$uc$ by ! aggregate debts ( ! taxpay]7
 exce$s #ajj1jjj1jjj at any "t dur+ su* 
taxable ye>4  7#b7 ,treatm5t ( controll$
 gr\ps ,= purposes ( ?is subsection--   
7,a7 ,9 g5]al ,all p]sons :i* are "p ( a
 controll$ gr\p 7)9 ! mean+ ( section   

#aefc7;a7 appli$ by sub/itut+ m ?an #ej 
p]c5t = at lea/ #hj p]c5t ea* place x   
appe>s7 %all be treat$ z #a p]son4  7,b7
 ,non9corporat$ p]sons "u common control
 ,"u regulations or o!r guidance provid$
 by ! ,secret>y1 pr9ciples simil> to !  
pr9ciples ( subp>agraph 7,a7 %all apply 
to a gr\p ( p]sons "u common control :]e
 #a or m ( su* p]sons is n a            
corporation4  7#c7 ,gov]nm5t entities & 
c]ta9 tax-exempt entities ,su* t]m %all 
n include ei!r ( ! foll[+3 7,a7 ,any    
gov]nm5tal entity4  7,b7 ,any           
organization :i* is describ$ 9 section  
#eja7;c77#c7 & exempt f tax "u section  
#eja7;a74  7c7 ,s+le-,family home  7#a7 
,9 g5]al ,= purposes ( ?is section1 !   
t]m s+le-family home means any real     
prop]ty locat$ 9 ! ,unit$ ,/ates if su* 
prop]ty includes at lea/ #a dwell+ unit 
& n m ?an #d dwell+ units4  7#b7        
,exception = f$]ally-assi/$ build+s ,=  
purposes ( ?is section-- 7,a7 ,9 g5]al  
,su* t]m %all n include any             
f$]ally-assi/$ build+4  7,b7            

,f$]ally-assi/$ build+ ,! t]m           
f$]ally-assi/$ build+ means any build+--
  7,c7 :i* is sub/antially assi/$1      
f9anc$1 or op]at$ "u section #h ( !     
,unit$ ,/ates ,h\s+ ,act ( #aicg1       
section #bba7;d77#c71 #bba7;d77#d71 or  
#bcf ( ! ,national ,h\s+ ,act1 section  
#eae ( ! ,h\s+ ,act ( #aidi1 or any o!r 
h\s+ program adm9i/]$ by ! ,dep>tm5t (  
,h\s+ & ,urban ,developm5t or by !      
,rural ,h\s+ ,s]vice ( ! ,dep>tm5t (    
,agriculture1  7,d7 ) respect to :i* a  
cr$it is all[$ to ! taxpay] "u section  
#db1 or  7,e7 = :i* f9anc+ is provid$ by
 a qualifi$ bond 7)9 ! mean+ ( section  
#ada74  7d7 ,exceptions  7#a7 ,pr9cipal 
resid5ce ,9 ! case ( a specifi$ l>ge    
inve/or :o is an individual1 subsection 
7a7 %all n apply to any s+le-family home
 if su* home is us$ z ! pr9cipal        
resid5ce ( su* inve/or4  7#b7 ,orig9al  
con/ruction or sub/antial rehabilitation
 ,subsection 7a7 %all n apply ) respect 
to a s+le-family home orig9ally         
con/ruct$ or sub/antially rehabilitat$  

7z def9$ 9 section #dg7;c77 by !        
taxpay]4  4  7b7 ,cl]ical am5dm5t ,!    
table ( sections = "p ,,ix ( sub*apt] ,b
 ( *apt] #a ( su* ,code is am5d$ by     
ins]t+ aft] ! item relat+ to section    
#bhj;,h ! foll[+ new item3  ,sec4       
#bhj;,i4 ,c]ta9 exp5ses relat$ to       
s+le-family homes held by specifi$ l>ge 
inve/ors4  4  7c7 ,effective date ,!    
am5dm5ts made by ?is section %all apply 
to am\nts paid or incurr$ & depreciation
 t occurs aft] ! date t is #ah mon?s    
aft] ! date ( ! enactm5t ( ?is ,act4    
#c4 ,excise tax on transf]s (           
s+le-family homes by specifi$ l>ge      
inve/ors  7a7 ,9 g5]al ,sub*apt] ,c (   
*apt] #cf ( subtitle ,d ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  ,c ,tax on transf]s (         
s+le-family homes by specifi$ l>ge      
inve/ors  ,sec4 #ddga4 ,tax on transf]s 
( s+le-family homes by specifi$ l>ge    
inve/ors4  #ddga4 ,tax on transf]s (    
s+le-family homes by specifi$ l>ge      
inve/ors  7a7 ,9 g5]al ,!re is h]eby    

impos$ a tax on ! sale or transf] ( a   
s+le-family home by a specifi$ l>ge     
inve/or 9 an am\nt equal to ! sale price
 ( ! s+le-family home4  7b7 ,specifi$   
l>ge inve/or2 s+le family home ,=       
purposes ( ?is section1 ! t]ms specifi$ 
l>ge inve/or & s+le-family home %all h !
 respective mean+s giv5 su* t]ms 9      
section #bhj;,i4  7c7 ,special rules    
,rules simil> to ! rules ( subsections  
7b77#b71 7d77#a71 & 7d77#b7 ( #bhj;,i   
%all apply = purposes ( ?is section4  4 
7b7 ,cl]ical am5dm5t ,! table (         
sub*apt]s = *apt] #cf ( subtitle ,d (   
su* ,code is am5d$ by add+ aft] ! item  
relat+ to sub*apt] ,b ! foll[+ new item3
  ,sub*apt] ,c4 ,tax on ,transf]s (     
,s+le-,family ,homes by ,specifi$ ,l>ge 
,inve/ors4  4  7c7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to sales & transf]s occurr+ aft] ! date 
t is #ah mon?s aft] ! date ( ! enactm5t 
( ?is ,act4  #d4 ,neighborhood homes    
cr$it  7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv
 ( sub*apt] ,a ( *apt] #a ( ! ,int]nal  

,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #db ! foll[+ new section3 
#db;,a4 ,neighborhood homes cr$it  7a7  
,all[ance ( cr$it ,= purposes ( section 
#ch1 ! neighborhood homes cr$it det]m9$ 
"u ?is section = ! taxable ye> is1 )    
respect to ea* qualifi$ resid5ce sold by
 ! taxpay] dur+ su* taxable ye> 9 an    
af=dable sale1 ! less] (-- 7#a7 ! excess
 7if any7 (-- 7,a7 ! reasonable         
developm5t co/s paid or incurr$ by !    
taxpay] ) respect to su* qualifi$       
resid5ce1 ov]  7,b7 ! sale price ( su*  
qualifi$ resid5ce 7r$uc$ by any         
reasonable exp5ses paid or incurr$ by ! 
taxpay] 9 connection ) su* sale71 or    
7#b7 #ce p]c5t ( ! less] (-- 7,a7 !     
eligible developm5t co/s paid or incurr$
 by ! taxpay] ) respect to su* qualifi$ 
resid5ce1 or  7,b7 #hj p]c5t ( !        
national m$ian sale price = new homes 7z
 det]m9$ pursuant to ! mo/ rec5t c5sus  
data available z ( ! date on :i* !      
neighborhood homes cr$it ag5cy makes an 
allocation = ! qualifi$ project74  7b7  

,developm5t co/s ,= purposes ( ?is      
section-- 7#a7 ,reasonable developm5t   
co/s  7,a7 ,9 g5]al ,! t]m reasonable   
developm5t co/s means am\nts paid or    
incurr$ = ! acquisition ( build+s & l&1 
con/ruction1 sub/antial rehabilitation1 
demolition ( /ructures1 or environm5tal 
rem$iation1 to ! ext5t t ! neighborhood 
homes cr$it ag5cy det]m9es t su* am\nts 
meet ! /&>ds specifi$ pursuant to       
subsection 7f77#a77;,c7 7z ( ! date on  
:i* con/ruction or sub/antial           
rehabilitation is sub/antially complete1
 z det]m9$ by su* ag5cy7 & are necess>y 
to ensure ! f9ancial feasibility ( su*  
qualifi$ resid5ce4  7,b7 ,consid]ations 
9 mak+ det]m9ation ,9 mak+ ! det]m9ation
 "u subp>agraph 7,a71 ! neighborhood    
homes cr$it ag5cy %all consid]-- 7i7 !  
s\rces & uses ( funds & ! total f9anc+1 
7ii7 any proce$s or receipts g5]at$ or  
expect$ to be g5]at$ by reason ( tax    
b5efits1 &  7iii7 ! reasonabl5ess ( !   
developm5tal co/s & fees4  7#b7         
,eligible developm5t co/s ,! t]m        

eligible developm5t co/s means ! am\nt  
:i* w\ld be reasonable developm5t co/s  
if ! am\nts tak5 into acc\nt z paid or  
incurr$ = ! acquisition ( build+s & l&  
did n exce$ #ge p]c5t ( su* co/s det]m9$
 )\t reg>d to any am\nt paid or incurr$ 
= ! acquisition ( build+s & l&4  7#c7   
,sub/antial rehabilitation ,! t]m       
sub/antial rehabilitation means am\nts  
paid or incurr$ = rehabilitation ( a    
qualifi$ resid5ce if su* am\nts exce$ ! 
great] (-- 7,a7 #bj1jjj1 or  7,b7 #bj   
p]c5t ( ! am\nts paid or incurr$ by !   
taxpay] = ! acquisition ( build+s & l& )
 respect to su* qualifi$ resid5ce4  7#d7
 ,con/ruction & rehabilitation only aft]
 allocation tak5 into acc\nt  7,a7 ,9   
g5]al ,! t]ms reasonable developm5t co/s
 & eligible developm5t co/s %all n      
include any am\nt paid or incurr$ be=e !
 date on :i* an allocation is made to ! 
taxpay] "u subsection 7e7 ) respect to !
 qualifi$ project ( :i* ! qualifi$      
resid5ce is "p unless su* am\nt is paid 
or incurr$ = ! acquisition ( build+s or 

l&4  7,b7 ,l& & build+ acquisition co/s 
,am\nts paid or incurr$ = ! acquisition 
( build+s or l& %all be includ$ "u      
p>agraph 7,a7 only if paid or incurr$ n 
m ?an #c ye>s be=e ! date on :i* !      
allocation ref]r$ to 9 subp>agraph 7,a7 
is made4 ,if ! taxpay] acquir$ any      
build+ or l& f an entity 7or any relat$ 
p>ty to su* entity7 t holds an own]%ip  
int]e/ 9 ! taxpay]1 !n su* entity mu/   
also h acquir$ su* prop]ty )9 su* #c-ye>
 p]iod1 & ! acquisition co/ includ$ "u  
subp>agraph 7,a7 ) respect to ! taxpay] 
%all n exce$ ! am\nt su* entity paid or 
incurr$ to acquire su* prop]ty4  7c7    
,qualifi$ resid5ce ,= purposes ( ?is    
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
resid5ce means a resid5ce t-- 7,a7 is   
real prop]ty affix$ on a p]man5t        
f\ndation1  7,b7 is-- 7i7 a h\se :i* is 
compris$ ( #d or few] resid5tial units1 
7ii7 a condom9ium unit1 or  7iii7 a h\se
 or an ap>tm5t own$ by a coop]ative h\s+
 corporation 7z def9$ 9 section         
#baf7;b771  7,c7 is "p ( a qualifi$     

project ) respect to ! neighborhood     
homes cr$it ag5cy has made an allocation
 "u subsection 7e71 &  7,d7 is locat$ 9 
a qualifi$ c5sus tract 7det]m9$ z ( !   
date ( su* allocation74  7#b7 ,qualifi$ 
c5sus tract  7,a7 ,9 g5]al ,! t]m       
qualifi$ c5sus tract means a c5sus      
tract-- 7i7 :i*-- 7,i7 has a m$ian      
family income :i* does n exce$ #hj p]c5t
 ( ! m$ian family income = ! applicable 
area1  7,,ii7 has a pov]ty rate t is n  
less ?an #acj p]c5t ( ! pov]ty rate ( ! 
applicable area1 &  7,,iii7 has a m$ian 
value = own]-occupi$ homes t does n     
exce$ ! m$ian value = own]-occupi$ homes
 9 ! applicable area1  7ii7 :i*-- 7,i7  
is locat$ 9 a city :i* has a population 
( n less ?an #ej1jjj & su* city has a   
pov]ty rate t is n less ?an #aej p]c5t (
 ! pov]ty rate ( ! applicable area1     
7,,ii7 has a m$ian family income :i*    
does n exce$ ! m$ian family income = !  
applicable area1 &  7,,iii7 has a m$ian 
value = own]-occupi$ homes t does n     
exce$ #hj p]c5t ( ! m$ian value =       

own]-occupi$ homes 9 ! applicable area1 
7iii7 :i*-- 7,i7 is locat$ 9 a          
nonmetropolitan c\nty1  7,,ii7 has a    
m$ian family income :i* does n exce$ !  
m$ian family income = ! applicable area1
 &  7,,iii7 has be5 designat$ by a      
neighborhood homes cr$it ag5cy "u ?is   
clause1 or  7iv7 :i* is n o!rwise a     
qualifi$ c5sus tract & is locat$ 9 a    
disa/] area 7z def9$ 9 section          
#gejh;,a7d77#c771 b only ) respect to   
cr$its allocat$ 9 any p]iod dur+ :i* !  
,presid5t ( ! ,unit$ ,/ates has det]m9$ 
t su* area w>rants individual or        
individual & public assi/ance by !      
,f$]al ,gov]nm5t "u ! ,rob]t ,t4 ,/af=d 
,disa/] ,relief & ,em]g5cy ,assi/ance   
,act4  7,b7 ,applicable area ,! t]m     
applicable area means-- 7i7 9 ! case ( a
 metropolitan c5sus tract1 !            
metropolitan area 9 :i* su* c5sus tract 
is locat$1 &  7ii7 9 ! case ( a c5sus   
tract o!r ?an a c5sus tract describ$ 9  
clause 7i71 ! ,/ate4  7d7 ,af=dable sale
 ,= purposes ( ?is section-- 7#a7 ,9    

g5]al ,! t]m af=dable sale means a sale 
to a qualifi$ home[n] ( a qualifi$      
resid5ce t ! neighborhood homes cr$it   
ag5cy c]tifies z meet+ ! /&>ds          
promulgat$ "u subsection 7f77#a77;,d7 = 
a price t does n exce$-- 7,a7 9 ! case (
 any qualifi$ resid5ce n describ$ 9     
subp>agraph 7,b71 7,c71 or 7,d71 ! am\nt
 equal to ! product ( #d multipli$ by ! 
m$ian family income = ! applicable area 
7z det]m9$ pursuant to ! mo/ rec5t c5sus
 data available z ( ! date ( ! contract 
= su* sale71  7,b7 9 ! case ( a h\se    
compris$ ( #b resid5tial units1 #abe    
p]c5t ( ! am\nt describ$ 9 subp>agraph  
7,a71  7,c7 9 ! case ( a h\se compris$ (
 #c resid5tial units1 #aej p]c5t ( !    
am\nt describ$ 9 subp>agraph 7,a71 or   
7,d7 9 ! case ( a h\se compris$ ( #d    
resid5tial units1 #age p]c5t ( ! am\nt  
describ$ 9 subp>agraph 7,a74  7#b7      
,qualifi$ home[n] ,! t]m qualifi$       
home[n] means1 ) respect to a qualifi$  
resid5ce1 an individual-- 7,a7 :o owns &
 uses su* qualifi$ resid5ce z ! pr9cipal

 resid5ce ( su* individual1 &  7,b7 ^:  
family income 7det]m9$ z ( ! date t a   
b9d+ contract = ! af=dable sale ( su*   
resid5ce is ent]$ into7 is #adj p]c5t or
 less ( ! m$ian family income = !       
applicable area 9 :i* ! qualifi$        
resid5ce is locat$4  7e7 ,cr$it ceil+ & 
allocations  7#a7 ,cr$it limit$ bas$ on 
allocations to qualifi$ projects  7,a7  
,9 g5]al ,! cr$it all[$ "u subsection   
7a7 to any taxpay] = any taxable ye> )  
respect to "o or m qualifi$ resid5ces   
:i* are "p ( ! same qualifi$ project    
%all n exce$ ! excess 7if any7 (-- 7i7 !
 am\nt allocat$ by ! neighborhood homes 
cr$it ag5cy "u ?is p>agraph to su*      
taxpay] ) respect to su* qualifi$       
project1 ov]  7ii7 ! aggregate am\nt (  
cr$it all[$ "u subsection 7a7 to su*    
taxpay] ) respect to qualifi$ resid5ces 
:i* are a "p ( su* qualifi$ project =   
all prior taxable ye>s4  7,b7 ,deadl9e =
 completion ,no cr$it %all be all[$ "u  
subsection 7a7 ) respect to any qualifi$
 resid5ce unless ! af=dable sale ( su*  

resid5ce is dur+ ! #e-ye> p]iod beg9n+  
on ! date ( ! allocation to ! qualifi$  
project ( :i* su* resid5ce is a "p 7or1 
9 ! case ( a qualifi$ resid5ce to :i*   
subsection 7i7 applies1 ! rehabilitation
 ( su* resid5ce is complet$ dur+ su*    
#e-ye> p]iod74  7#b7 ,limitations on    
allocations to qualifi$ projects  7,a7  
,allocations limit$ by ,/ate            
neighborhood homes cr$it ceil+ ,!       
aggregate am\nt allocat$ to taxpay]s )  
respect to qualifi$ projects by !       
neighborhood homes cr$it ag5cy ( any    
,/ate = any cal5d> ye> %all n exce$ !   
,/ate neighborhood homes cr$it am\nt (  
su* ,/ate = su* cal5d> ye>4  7,b7       
,set-aside = c]ta9 projects involv+     
qualifi$ nonpr(it organizations ,rules  
simil> to ! rules ( section #db7;h77#e7 
%all apply = purposes ( ?is section4    
7#c7 ,det]m9ation ( ,/ate neighborhood  
homes cr$it ceil+  7,a7 ,9 g5]al ,!     
,/ate neighborhood homes cr$it am\nt = a
 ,/ate = a cal5d> ye> is an am\nt equal 
to ! sum (-- 7i7 ! great] (-- 7,i7 !    

product ( #c 7#f 9 ! case ( cal5d> ye>  
#bjbe71 multipli$ by ! ,/ate population 
7det]m9$ 9 accordance ) section         
#adf7;j771 or  7,,ii7 #d1jjj1jjj        
7#h1jjj1jjj 9 ! case ( cal5d> ye>       
#bjbe71 &  7ii7 any am\nt previ\sly     
allocat$ to any taxpay] ) respect to any
 qualifi$ project by ! neighborhood     
homes cr$it ag5cy ( su* ,/ate :i* c no  
long] be allocat$ to any qualifi$       
resid5ce because ! #e-ye> p]iod describ$
 9 p>agraph 7#a77;,b7 expires dur+      
cal5d> ye>4  7,b7 ,t]m9ation (          
additional am\nts ,! am\nt det]m9$ "u   
subp>agraph 7,a77i7 %all be z]o )       
respect to any cal5d> ye> beg9n+ aft]   
,decemb] #ca1 #bjbe4  7,c7 #c-ye>       
c>ry=w>d ( unus$ limitation ,! ,/ate    
neighborhood homes cr$it am\nt = a ,/ate
 = a cal5d> ye> %all be increas$ by !   
excess 7if any7 ( ! ,/ate neighborhood  
homes cr$it am\nt = su* ,/ate = ! prec$+
 cal5d> ye> ov] ! aggregate am\nt       
allocat$ by ! neighborhood homes cr$it  
ag5cy ( su* ,/ate dur+ su* prec$+ cal5d>

 ye>4 ,any am\nt c>ri$ =w>d "u ! prec$+ 
s5t5ce %all n be c>ri$ pa/ ! ?ird cal5d>
 ye> aft] ! cal5d> ye> 9 :i* su* cr$it  
am\nt orig9ally arose1 det]m9$ on a     
fir/-91 fir/-out basis4  7f7            
,responsibilities ( neighborhood homes  
cr$it ag5cies  7#a7 ,9 g5]al ,not)/&+   
subsection 7e71 ! ,/ate neighborhood    
homes cr$it doll> am\nt %all be z]o = a 
cal5d> ye> unless ! neighborhood homes  
cr$it ag5cy ( ! ,/ate-- 7,a7 allocates  
su* am\nt pursuant to a qualifi$        
allocation plan ( ! neighborhood homes  
cr$it ag5cy1  7,b7 allocates n m ?an #bj
 p]c5t ( am\nts allocat$ 9 ! previ\s ye>
 7or = allocations made 9 #bjbb1 n m ?an
 #bj p]c5t ( ! neighborhood homes cr$it 
ceil+ = su* ye>7 to projects ) respect  
to qualifi$ resid5ces :i*-- 7i7 are     
locat$ 9 c5sus tracts describ$ 9        
subsection 7c77#b77;,a77iii71           
7c77#b77;,a77iv71 7i77#e71 or  7ii7 are 
n locat$ 9 a qualifi$ c5sus tract b meet
 ! requirem5ts ( 7i77#h71  7,c7         
promulgates /&>ds ) respect to          

reasonable qualifi$ developm5t co/s &   
fees1  7,d7 promulgates /&>ds ) respect 
to con/ruction quality1  7,e7 9 ! case (
 any neighborhood homes cr$it ag5cy :i* 
makes an allocation to a qualifi$       
project :i* includes any qualifi$       
resid5ce to :i* subsection 7i7 applies1 
promulgates /&>ds ) respect to protect+ 
! own]s ( su* resid5ces1 includ+ !      
capacity ( su* own]s to pay             
rehabilitation co/s n cov]$ by ! cr$it  
provid$ by ?is section & provid+ = !    
disclosure to su* own]s ( _! rights &   
responsibilities ) respect to !         
rehabilitation ( su* resid5ces1 &  7,f7 
submits to ! ,secret>y 7at su* "t & 9   
su* mann] z ! ,secret>y may prescribe7  
an annual report specify+-- 7i7 ! am\nt 
( ! neighborhood homes cr$its allocat$  
to ea* qualifi$ project = ! previ\s ye>1
  7ii7 ) respect to ea* qualifi$        
resid5ce complet$ 9 ! prec$+ cal5d>     
ye>-- 7,i7 ! c5sus tract 9 :i* su*      
qualifi$ resid5ce is locat$1  7,,ii7 )  
respect to ! qualifi$ project t includes

 su* qualifi$ resid5ce1 ! ye> 9 :i* su* 
project receiv$ an allocation "u ?is    
section1  7,,iii7 :e!r su* qualifi$     
resid5ce 0 new1 sub/antially            
rehabilitat$ & sold to a qualifi$       
home[n]1 or sub/antially rehabilitat$   
pursuant to subsection 7i71  7,,iv7 !   
eligible developm5t co/s ( su* qualifi$ 
resid5ce1  7,v7 ! am\nt ( ! neighborhood
 homes cr$it ) respect to su* qualifi$  
resid5ce1  7,,vi7 ! sales price ( su*   
qualifi$ resid5ce1 if applicable1 &     
7,,vii7 ! family income ( ! qualifi$    
home[n] 7express$ z a p]c5tage ( !      
applicable area m$ian family income = ! 
location ( ! qualifi$ resid5ce71 &      
7iii7 su* o!r in=mation z ! ,secret>y   
may require4  7#b7 ,qualifi$ allocation 
plan ,= purposes ( ?is subsection1 ! t]m
 qualifi$ allocation plan means any plan
 :i*-- 7,a7 sets =? ! selection crit]ia 
to be us$ to prioritize qualifi$        
projects = allocations ( ,/ate          
neighborhood homes cr$it doll> am\nts1  
includ+-- 7i7 ! ne$ = new or            

sub/antially rehabilitat$ own]-occupi$  
homes 9 ! area address$ by ! project1   
7ii7 ! expect$ contribution ( ! project 
to neighborhood /ability &              
revitalization1 includ+ ! impact on     
neighborhood resid5ts1  7iii7 !         
capability & prior p]=mance ( ! project 
sponsor1 &  7iv7 ! likelihood ! project 
w result 9 long-t]m home[n]%ip1  7,b7   
has be5 made available = public comm5t1 
&  7,c7 provides a proc$ure t !         
neighborhood homes cr$it ag5cy 7or any  
ag5t or contractor ( su* ag5cy7 %all    
foll[ = purposes (-- 7i7 id5tify+       
noncompliance ) any provisions ( ?is    
section1 &  7ii7 notify+ ! ,int]nal     
,rev5ue ,s]vice ( any su* noncompliance 
( :i* ! ag5cy becomes aw>e4  7g7        
,repaym5t  7#a7 ,9 g5]al  7,a7 ,sold    
dur+ #e-ye> p]iod ,if a qualifi$        
resid5ce is sold dur+ ! #e-ye> p]iod    
beg9n+ imm$iately aft] ! af=dable sale (
 su* qualifi$ resid5ce ref]r$ to 9      
subsection 7a71 ! sell] 7) respect to ! 
sale dur+ su* #e-ye> p]iod7 %all transf]

 an am\nt equal to ! repaym5t am\nt to !
 relevant neighborhood homes cr$it      
ag5cy4  7,b7 ,use ( repaym5ts ,a        
neighborhood homes cr$it ag5cy %all use 
any am\nt receiv$ pursuant to           
subp>agraph 7,a7 only = purposes (      
qualifi$ projects4  7#b7 ,repaym5t am\nt
 ,= purposes ( p>agraph 7#a77;,a71 !    
repaym5t am\nt is an am\nt equal to #ej 
p]c5t ( ! ga9 f ! sale to :i* ! repaym5t
 relates1 r$uc$ by #bj p]c5t = ea* ye> (
 ! #e-ye> p]iod ref]r$ to 9 p>agraph    
7#a77;,a7 :i* ends be=e ! date ( su*    
sale4  7#c7 ,li5 = repaym5t am\nt ,a    
neighborhood homes cr$it ag5cy receiv+  
an allocation "u ?is section %all place 
a li5 on ea* qualifi$ resid5ce t is     
built or rehabilitat$ z "p ( a qualifi$ 
project = an am\nt su* ag5cy deems      
necess>y to ensure pot5tial repaym5t    
pursuant to p>agraph 7#a77;,a74  7#d7   
,d5ial ( d$uctions if conv]t$ to r5tal  
h\s+ ,if1 dur+ ! #e-ye> p]iod describ$ 9
 p>agraph 7#a71 an individual :o owns a 
qualifi$ resid5ce fails to use su*      

qualifi$ resid5ce z su* individual's    
pr9cipal resid5ce = any p]iod ( "t1 no  
d$uction %all be all[$ = exp5ses paid or
 incurr$ by su* individual ) respect to 
r5t+1 dur+ su* p]iod ( "t1 su* qualifi$ 
resid5ce4  7#e7 ,waiv] ,! neighborhood  
homes cr$it ag5cy may waive ! repaym5t  
requir$ "u p>agraph 7#a77;,a7 9 ! case (
 home[n] exp]i5c+ a h>d%ip4  7h7 ,o!r   
def9itions & special rules ,= purposes (
 ?is section-- 7#a7 ,neighborhood homes 
cr$it ag5cy ,! t]m neighborhood homes   
cr$it ag5cy means ! ag5cy designat$ by !
 gov]nor ( a ,/ate z ! neighborhood     
homes cr$it ag5cy ( ! ,/ate4  7#b7      
,qualifi$ project ,! t]m qualifi$       
project means a project t a neighborhood
 homes cr$it ag5cy c]tifies w build or  
sub/antially rehabilitate "o or m       
qualifi$ resid5ces4  7#c7 ,det]m9ations 
( family income ,rules simil> to ! rules
 ( section #adc7;f77#b7 %all apply =    
purposes ( ?is section4  7#d7           
,possessions treat$ z /ates ,! t]m ,/ate
 includes ! ,di/rict ( ,columbia & !    

possessions ( ! ,unit$ ,/ates4  7#e7    
,special rules relat$ to condom9iums &  
coop]ative h\s+ corporations  7,a7      
,det]m9ation ( developm5t co/s ,9 ! case
 ( a qualifi$ resid5ce describ$ 9 clause
 7ii7 or 7iii7 ( subsection             
7c77#a77;,a71 ! reasonable developm5t   
co/s & eligible developm5t co/s ( su*   
qualifi$ resid5ce %all be an am\nt equal
 to su* co/s1 respectively1 ( ! entire  
condom9ium or coop]ative h\s+ prop]ty 9 
:i* su* qualifi$ resid5ce is locat$1    
multipli$ by a fraction-- 7i7 ! num]ator
 ( :i* is ! total floor space ( su*     
qualifi$ resid5ce1 &  7ii7 ! d5om9ator (
 :i* is ! total floor space ( all       
resid5ces )9 su* prop]ty4  7,b7         
,t5ant-/ockhold]s ( coop]ative h\s+     
corporations treat$ z own]s ,9 ! case ( 
a coop]ative h\s+ corporation 7z su* t]m
 is def9$ 9 section #baf7;b771 a        
t5ant-/ockhold] %all be treat$ z own+ ! 
h\se or ap>tm5t :i* su* p]son is entitl$
 to occupy4  7#f7 ,relat$ p>ty sales n  
treat$ z af=dable sales  7,a7 ,9 g5]al  

,a sale betwe5 relat$ p]sons %all n be  
treat$ z an af=dable sale4  7,b7 ,relat$
 p]sons ,= purposes ( ?is p>agraph1 a   
p]son 79 ?is subp>agraph ref]r$ to z !  
relat$ p]son7 is relat$ to any p]son if 
! relat$ p]son be>s a relation%ip to su*
 p]son specifi$ 9 section #bfg7;b7 or   
#gjg7;b77#a71 or ! relat$ p]son & su*   
p]son are engag$ 9 trades or bus9esses  
"u common control 7)9 ! mean+ (         
subsections 7a7 & 7b7 ( section #eb74 ,=
 purposes ( ! prec$+ s5t5ce1 9 apply+   
section #bfg7;b7 or #gjg7;b77#a71 #aj   
p]c5t %all be sub/itut$ = #ej p]c5t4    
7#g7 ,inflation adju/m5t  7,a7 ,9 g5]al 
,9 ! case ( a cal5d> ye> aft] #bjbb1 !  
doll> am\nts 9 subsections 7b77#c77;,a71
 7e77#c77;,a77i77,i71                   
7e77#c77;,a77i77,,ii71 & 7i77#b77;,c7   
%all ea* be increas$ by an am\nt equal  
to-- 7i7 su* doll> am\nt1 multipli$ by  
7ii7 ! co/-(-liv+ adju/m5t det]m9$ "u   
section #a7;f77#c7 = su* cal5d> ye> by  
sub/itut+ cal5d> ye> #bjba = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7,b7

 ,r\nd+  7i7 ,9 ! case ( ! doll> am\nts 
9 subsection 7b77#c77;,a7 &             
7i77#b77;,c71 any increase "u p>agraph  
7#a7 :i* is n a multiple ( #a1jjj %all  
be r\nd$ to ! ne>e/ multiple ( #a1jjj4  
7ii7 ,9 ! case ( ! doll> am\nt 9        
subsection 7e77#c77;,a77i77,i71 any     
increase "u p>agraph 7#a7 :i* is n a    
multiple ( #j4ja %all be r\nd$ to !     
ne>e/ multiple ( #j4ja4  7iii7 ,9 ! case
 ( ! doll> am\nt 9 subsection           
7e77#c77;,a77i77,,ii71 any increase "u  
p>agraph 7#a7 :i* is n a multiple (     
#ajj1jjj %all be r\nd$ to ! ne>e/       
multiple ( #ajj1jjj4  7#h7 ,report  7,a7
 ,9 g5]al ,! ,secret>y %all annually    
issue a report1 to be made available to 
! public1 :i* conta9s ! in=mation       
submitt$ pursuant to subsection         
7f77#a77;,f74  7,b7 ,de-id5tification ,!
 ,secret>y %all ensure t any in=mation  
made public pursuant to p>agraph 7#a7   
excludes any in=mation t w\ld all[ = !  
id5tification ( qualifi$ home[n]s4  7#i7
 ,li/ ( qualifi$ c5sus tracts ,!        

,secret>y ( ,h\s+ & ,urban ,developm5t  
%all1 = ea* ye>1 make publicly available
 a li/ ( qualifi$ c5sus tracts "u-- 7,a7
 on a comb9$ basis1 clauses 7i7 & 7ii7 (
 subsection 7c77#b77;,a71  7,b7 clause  
7iii7 ( su* subsection1 &  7,c7         
subsection 7i77#e77;,a74  7i7           
,application ( cr$it ) respect to       
own]-,occupi$ rehabilitations  7#a7 ,9  
g5]al ,9 ! case ( a qualifi$            
rehabilitation by ! taxpay] ( any       
qualifi$ resid5ce :i* is own$ 7z ( !    
date t ! writt5 b9d+ contract ref]r$ to 
9 p>agraph 7#c7 is ent]$ into7 by a     
specifi$ home[n]1 ! rules ( p>agraphs   
7#b7 ?r\gh 7#g7 %all apply4  7#b7       
,alt]native cr$it det]m9ation ,9 ! case 
( any qualifi$ resid5ce describ$ 9      
p>agraph 7#a71 ! neighborhood homes     
cr$it det]m9$ "u subsection 7a7 )       
respect to su* resid5ce %all 79 lieu (  
any cr$it o!rwise det]m9$ "u subsection 
7a7 ) respect to su* resid5ce7 be all[$ 
9 ! taxable ye> dur+ :i* ! qualifi$     
rehabilitation is complet$ 7z det]m9$ by

 ! neighborhood homes cr$it ag5cy7 &    
%all be equal to ! lea/ (-- 7,a7 !      
excess 7if any7 (-- 7i7 ! am\nts paid or
 incurr$ by ! taxpay] = ! qualifi$      
rehabilitation ( ! qualifi$ resid5ce to 
! ext5t t su* am\nts are c]tifi$ by !   
neighborhood homes cr$it ag5cy 7at ! "t 
( ! completion ( su* rehabilitation7 z  
meet+ ! /&>ds specifi$ pursuant to      
subsection 7f77#a77;,c71 ov]  7ii7 any  
am\nts paid to su* taxpay] = su*        
rehabilitation1  7,b7 #ej p]c5t ( !     
am\nts describ$ 9 subp>agraph 7,a77i71  
or  7,c7 #ej1jjj4  7#c7 ,qualifi$       
rehabilitation  7,a7 ,9 g5]al ,=        
purposes ( ?is subsection1 ! t]m        
qualifi$ rehabilitation means a         
rehabilitation or recon/ruction p]=m$   
pursuant to a writt5 b9d+ contract      
betwe5 ! taxpay] & ! qualifi$ home[n] if
 ! am\nt paid or incurr$ by ! taxpay] 9 
! p]=mance ( su* rehabilitation or      
recon/ruction exce$s ! doll> am\nt 9    
effect "u subsection 7b77#c77;,a74  7,b7
 ,application ( limitation to exp5ses   

paid or incurr$ aft] allocation ,a rule 
simil> to ! rule ( section 7b77#d7 %all 
apply = purposes ( ?is subsection4  7#d7
 ,specifi$ home[n] ,= purposes ( ?is    
subsection1 ! t]m qualifi$ home[n]      
means1 ) respect to a qualifi$ resid5ce1
 an individual-- 7,a7 :o owns & uses su*
 qualifi$ resid5ce z ! pr9cipal resid5ce
 ( su* individual z ( ! date t ! writt5 
b9d+ contract ref]r$ to 9 p>agraph 7#c7 
is ent]$ into1 &  7,b7 ^: family income 
7det]m9$ z ( su* date7 does n exce$ !   
m$ian family income = ! applicable area 
7) respect to ! c5sus tract 9 :i* !     
qualifi$ resid5ce is locat$74  7#e7     
,additional c5sus tracts 9 :i*          
own]-occupi$ resid5ces may be locat$ ,9 
! case ( any qualifi$ resid5ce describ$ 
9 p>agraph 7#a71 ! t]m qualifi$ c5sus   
tract includes any c5sus tract :i*--    
7,a7 meets ! requirem5ts ( subsection   
7c77#b77;,a77i7 )\t reg>d to subclause  
7,,iii7 !re(1 &  7,b7 is designat$ by ! 
neighborhood homes cr$it ag5cy =        
purposes ( ?is p>agraph4  7#f7          

,modification ( repaym5t requirem5t ,9 !
 case ( any qualifi$ resid5ce describ$ 9
 p>agraph 7#a71 subsection 7g7 %all be  
appli$ by beg9n+ ! #e-ye> p]iod o!rwise 
describ$ !re9 on ! date on :i* !        
qualifi$ own] acquir$ ! resid5ce4  7#g7 
,relat$ p>ties ,p>agraph 7#a7 %all n    
apply if ! taxpay] is ! own] ( !        
qualifi$ resid5ce describ$ 9 p>agraph   
7#a7 or is relat$ 7)9 ! mean+ (         
subsection 7h77#f77;,b77 to su* own]4   
7#h7 ,pyrrhotite rem$iation ,!          
requirem5t ( subsection 7c77#a77;,c7    
%all n apply to a qualifi$              
rehabilitation "u ?is subsection ( a    
qualifi$ resid5ce t is docum5t$ by an   
eng9e]'s report & core te/+ to h a      
f\ndation t is adv]sely impact$ by      
pyrrhotite or o!r iron sulfide m9]als4  
7j7 ,regulations ,! ,secret>y %all      
prescribe su* regulations z may be      
necess>y or appropriate to c>ry out !   
purposes ( ?is section1 includ+         
regulations t prev5t avoidance ( !      
rules1 & abuse ( ! purposes1 ( ?is      

section4  4  7b7 ,cr$it all[$ z "p (    
g5]al bus9ess cr$it ,section #ch7;b7 is 
am5d$ by /rik+ plus at ! end ( p>agraph 
7#ci71 by /rik+ ! p]iod at ! end (      
p>agraph 7#dj7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#da7 ! neighborhood homes cr$it det]m9$
 "u section #db;,a7a71  4  7c7 ,cr$it   
all[$ aga9/ alt]native m9imum tax       
,section #ch7;c77#d77;,b71 z am5d$ by ! 
prec$+ provisions ( ?is ,act1 is am5d$  
by r$esg9at+ clauses 7iv7 ?r\gh 7xiii7 z
 clauses 7v7 ?r\gh 7xiv71 respectively1 
& by ins]t+ aft] clause 7iii7 ! foll[+  
new clause3  7iv7 ! cr$it det]m9$ "u    
section #db;,a1  4  7d7 ,con=m+ am5dm5ts
  7#a7 ,subsections 7i77#c77;,c71       
7i77#f77;,b77i71 & 7k77#a7 ( section    
#dfi are ea* am5d$ by ins]t+ or #db;,a  
aft] section #db4  7#b7 ,! table (      
sections = subp>t ,d ( "p ,,iv (        
sub*apt] ,a ( *apt] #a is am5d$ by      
ins]t+ aft] ! item relat+ to section #db
 ! foll[+ new item3  ,sec4 #db;,a4      
,neighborhood homes cr$it4  4  7e7      

,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #e4 ,prohibitions on f$]al       
mortgage assi/ance  7a7 ,fannie ,mae &  
,fr$die ,mac ,subp>t ,a ( "p #b (       
subtitle ,a ( title ,,xiii ( ! ,h\s+ &  
,community ,developm5t ,act ( #aiib 7#ab
 ,u4,s4,c4 #deda et seq47 is am5d$ by   
add+ at ! end ! foll[+ new section3     
#acbi4 ,prohibition relat+ to specifi$  
l>ge inve/ors ,! ,director %all1 by     
regulation1 prohibit ! ent]prises f     
newly pur*as+ any mortgage on a s+le    
family h\s+ or any portion !re( 7or any 
int]e/ 9 su* a mortgage71 & f newly l5d+
 on ! security ( or securitiz+ any su*  
mortgage "u :i* ! mortgagee is a        
specifi$ l>ge inve/or 7z su* t]m is     
def9$ 9 section #bhj;,i ( ! ,int]nal    
,rev5ue ,code ( #aihf74  4  7b7 ,g9nie  
,mae ,section #cjb7;c7 ( ! ,national    
,h\s+ ,act 7#ab ,u4,s4,c4 #agag7;c77 is 
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#f7 ,! ,association may n   

newly gu>antee ! paym5t ( pr9cipal ( or 
int]e/ on any tru/ c]tificate or o!r    
security bas$ or back$ by a tru/ or pool
 t conta9s1 or pur*ase or acquire1 any  
mortgage "u :i* ! mortgagee is a        
specifi$ l>ge inve/or 7z su* t]m is     
def9$ 9 section #bhj;,i ( ! ,int]nal    
,rev5ue ,code ( #aihf74  4