,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #cidj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #i1 #bjbc,mr4   
,kelly ( ,p5nsylvania 7= himself1 ,mr4  
,higg9s ( ,new ,york1 ,ms4 ,t5ney1 ,mr4 
,kildee1 ,mr4 ,fe5/ra1 & ,mr4 ,evans7   
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to e/abli% a tax cr$it =  
neighborhood revitalization1 & = o!r    
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,neighborhood ,homes       
,inve/m5t ,act4  #b4 ,f9d+s & ,s5se (   
,congress  7a7 ,f9d+s ,congress f9ds !  
foll[+3 7#a7 ,exp]ts h det]m9$ t x c\ld 
take ne>ly a decade to address ! h\s+   
%ortage 9 ! ,unit$ ,/ates1 9 l>ge "p due
 to increas+ h\s+ prices & decreas$ h\s+
 inv5tory4  7#b7 ,! h\s+ supply %ortage 
disproportionately impacts l[-income &  
di/ress$ communities4  7#c7 ,home[n]%ip 
is a prim>y s\rce ( h\sehold weal? &    
neighborhood /ability4 ,_m di/ress$     
communities h l[ rates ( home[n]%ip &   

lack quality1 af=dable />t] homes4  7#d7
 ,h\s+ revitalization 9 di/ress$        
communities is prev5t$ by ! value gap1 !
 diff]5ce betwe5 ! price to rehabilitate
 a home & ! sale value ( ! home4  7#e7  
,! ,neighborhood ,homes ,inve/m5t ,act c
 address ! value gap to increase h\s+   
rehabilitation 9 di/ress$ communities4  
7#f7 ,! ,neighborhood ,homes ,inve/m5t  
,act has ! pot5tial to g5]ate #ejj1jjj  
homes ov] #aj ye>s1 #abe1jjj1jjj1jjj (  
total developm5t activity1 ov] #hjj1jjj 
jobs 9 con/ruction & con/ruction-relat$ 
indu/ries1 & ov] #ce1jjj1jjj1jjj 9      
,f$]al1 /ate1 & local tax rev5ues4  7b7 
,s5se ( ,congress ,x is ! s5se (        
,congress t ! neighborhood homes cr$it  
7z add$ "u section #c ( ?is ,act7 %\ld  
be adm9i/]$ 9 a mann] :i*-- 7#a7 is     
consi/5t ) ! ,fair ,h\s+ ,act ( #aifh   
7#db ,u4,s4,c4 #cfja et seq472  7#b7    
emp[]s resid5ts 9 eligible communities2 
&  7#c7 revitalizes di/ress$            
neighborhoods4  #c4 ,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 an am\nt
 equal to-- 7,a7 ! excess 7if any7 (--  
7i7 ! reasonable developm5t co/s paid or
 incurr$ by ! taxpay] ) respect to su*  
qualifi$ resid5ce1 ov]  7ii7 ! sale     
price ( su* qualifi$ resid5ce 7r$uc$ by 
any reasonable exp5ses paid or incurr$  
by ! taxpay] 9 connection ) su* sale71  
or  7,b7 if ! neighborhood homes cr$it  
ag5cy det]m9es x is necess>y to ensure  
f9ancial feasibility1 an am\nt n to     
exce$ #abj p]c5t ( ! am\nt "u           
subp>agraph 7,a71  7#b7 #ce p]c5t ( !   
eligible developm5t co/s paid or incurr$
 by ! taxpay] ) respect to su* qualifi$ 
resid5ce1 or  7#c7 #bh 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 :i* ! 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 ( #g1 multipli$ by ! ,/ate      
population 7det]m9$ 9 accordance )      
section #adf7;j771 or  7,,ii7           
#i1jjj1jjj1 &  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 #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 #bjbc1 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 ( subsection 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 require1 &  7,g7 makes available to 
! g5]al public a writt5 explanation =   
any allocation ( a neighborhood homes   
cr$it doll> am\nt :i* is n made 9       
accordance ) e/abli%$ priorities &      
selection crit]ia ( ! neighborhood homes
 cr$it ag5cy4  ,subp>agraph 7,b7 %all be
 appli$ by sub/itut+ #dj p]c5t = #bj    
p]c5t ea* place x appe>s 9 ! case ( any 

,/ate 9 :i* at lea/ #de p]c5t ( ! ,/ate 
population resides outside metropolitan 
/ati/ical areas 7)9 ! mean+ ( section   
#adc7k77#b77;,b77 & less ?an #bj p]c5t (
 ! c5sus tracts locat$ 9 ! ,/ate are    
describ$ 9 subsection 7c77#b77;,a77i74  
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] %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;,a7-- 7,a7 ,9 g5]al ,!   
repaym5t am\nt is an am\nt equal to !   
applicable p]c5tage ( ! ga9 f ! sale to 
:i* ! repaym5t relates4  7,b7           
,applicable p]c5tage ,= purposes (      

subp>agraph 7,a71 ! applicable p]c5tage 
is #ej p]c5t1 r$uc$ by #aj p]c5tage     
po9ts = 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 ,waiv]  7,a7 ,9 g5]al ,!         
neighborhood homes cr$it ag5cy may waive
 ! repaym5t requir$ "u p>agraph         
7#a77;,a7 if ! ag5cy det]m9es t mak+ a  
repaym5t w\ld con/itute a h>d%ip to !   
sell]4  7,b7 ,h>d%ip ,= purposes (      
subp>agraph 7,a71 ) respect to ! sell]1 
a h>d%ip may include-- 7i7 divorce1     
7ii7 disability1  7iii7 illness1 or     
7iv7 any o!r h>d%ip id5tifi$ by !       
neighborhood homes cr$it ag5cy =        
purposes ( ?is p>agraph4  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] #bjbc1 !  
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> #bjbb = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7,b7
 ,r\nd+  7i7 ,9 ! case ( ! doll> am\nts 
9 subsections 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 subp>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  7#aj7 ,d5ial (
 d$uctions if conv]t$ to r5tal h\s+ ,if1
 dur+ ! #e-ye> p]iod beg9n+ imm$iately  
aft] ! af=dable sale ( a qualifi$       

resid5ce ref]r$ to 9 subsection 7a71 an 
individual :o owns a qualifi$ resid5ce  
7:e!r or n su* individual 0 ! pur*as] 9 
su* af=dable sale7 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  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] & ! specifi$ 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$ home[n] acquir$ su* 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$it ,section #ch7;b7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ plus at ! end ( p>agraph      
7#cg71 by /rik+ ! p]iod at ! end (      
p>agraph 7#ch7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#ci7 ! neighborhood homes cr$it det]m9$
 "u section #db;,a7a74  4  7c7 ,cr$it   
all[$ aga9/ alt]native m9imum tax       
,section #ch7;c77#d77;,b7 ( ! ,int]nal  
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ clauses 7iv7 ?r\gh 7xii7 z   
clauses 7v7 ?r\gh 7xiii71 respectively1 
& by ins]t+ aft] clause 7iii7 ! foll[+  
new clause3  7iv7 ! cr$it det]m9$ "u    
section #db;,a1  4  7d7 ,basis adju/m5ts
  7#a7 ,en]gy effici5t home improvem5t  
cr$it ,section #be;,c7g7 ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
aft] ! fir/ s5t5ce ! foll[+ new s5t5ce3 
,?is subsection %all n apply = purposes 
( det]m9+ ! eligible developm5t co/s or 

adju/$ basis ( any build+ "u section    
#db;,a44  7#b7 ,resid5tial clean en]gy  
cr$it ,section #be;,d7f7 ( su* ,code is 
am5d$ by add+ aft] ! fir/ s5t5ce !      
foll[+ new s5t5ce3 ,?is subsection %all 
n apply = purposes ( det]m9+ ! eligible 
developm5t co/s or adju/$ basis ( any   
build+ "u section #db;,a44  7#c7 ,new   
en]gy effici5t home cr$it ,section      
#de,l7e7 ( su* ,code is am5d$ by ins]t+ 
or = purposes ( det]m9+ ! eligible      
developm5t co/s or adju/$ basis ( any   
build+ "u section #db;,a aft] section   
#db4  7e7 ,exclusion f gross income ,"p 
,,iii ( sub*apt] ,b ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ be=e section #adj ! foll[+ new
 section3  #aci;,j4 ,/ate en]gy         
subsidies = qualifi$ resid5ces  7a7     
,exclusion f gross income ,gross income 
%all n include ! value ( any subsidy    
provid$ to a taxpay] 7:e!r directly or  
indirectly7 by any ,/ate en]gy (fice 7z 
def9$ 9 section #abd7;a7 ( ! ,en]gy     
,policy ,act ( #bjje 7#db ,u4,s4,c4     

#aehba7;a777 = purposes ( any en]gy     
improvem5ts made to a qualifi$ resid5ce 
7z def9$ 9 section #db;,a7c77#a774  4   
7f7 ,con=m+ am5dm5ts  7#a7 ,subsections 
7i77#c77;,c71 7i77#f77;,b77i71 & 7k77#a7
 ( section #dfi ( ! ,int]nal ,rev5ue    
,code ( #aihf are ea* am5d$ by ins]t+ or
 #db;,a aft] section #db 4  7#b7 ,!     
table ( sections = subp>t ,d ( "p ,,iv (
 sub*apt] ,a ( *apt] #a ( su* ,code is  
am5d$ by ins]t+ aft] ! item relat+ to   
section #db ! foll[+ new item3  ,sec4   
#db;,a4 ,neighborhood homes cr$it4  4   
7#c7 ,! table ( sections = "p ,,iii (   
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ be=e ! item relat+ to   
section #adj ! foll[+ new item3  ,sec4  
#aci;,j4 ,/ate en]gy subsidies =        
qualifi$ resid5ces4  4  7g7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjbc4