,i  #aaith ,,congress  #b;d ,session    
,h4 ,r4 #ihgj  ,,in ,,the ,,house ,,of  
,,representatives  ,july #bb1 #bjbf,mr4 
,peters 7for himself and ,mr4           
,fitzpatrick7 introduced the following  
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to allow for            
nonrecognition of gain on real property 
sold for use as affordable housing4  #a4
 ,short title ,this ,act may be cited as
 the ,affordable ,housing ,incentives   
,act4  #b4 ,nonrecognition of gain on   
property sold for use as affordable     
housing  7a7 ,in general ,section #ajcc 
of the ,internal ,revenue ,code of #aihf
 is amended by redesignating subsection 
7k7 as subsection 7l7 and by inserting  
after subsection 7j7 the following new  
subsection3  7k7 ,sales for use as      
affordable housing  7#a7 ,in general    
,for purposes of this subtitle1 if real 
property is sold or otherwise           
transferred to a qualified housing      

operator for use or development by such 
operator as affordable housing and such 
property meets the requirements of      
paragraphs 7#c71 7#d71 and 7#e71 such   
sale or transfer shall be treated as an 
involuntary conversion to which this    
section applies4  7#b7 ,qualified       
housing operator ,for purposes of this  
section1 the term qualified housing     
operator means any of the following3    
7,a7 ,a ,state1 tribal1 or local        
government1 or any political subdivision
 or instrumentality thereof1 including a
 public housing agency 7as defined in   
subparagraph 7,a7 or 7,b7 of section    
#c7;b77#f7 of the ,united ,states       
,housing ,act of #aicg 7#db ,u4,s4,c4   
#adcg;a7b77#f7774  7,b7 ,a tribally     
designated housing entity 7as such term 
is defined in section #d of the ,native 
,american ,housing ,assistance and      
,self-,determination ,act of #aiif74    
7,c7 ,a community housing development   
organization 7as such term is defined in
 section #ajd of the ,cranston-,gonzalez

 ,national ,affordable ,housing ,act74  
7,d7 ,an organization which-- 7i7 has   
the purpose of providing affordable     
housing1  7ii7 has received ,federal1   
,state1 or local grant funds to develop 
or operate affordable housing1 or  7iii7
 has owned 7either directly or through a
 partnership7 an interest in a qualified
 low-income housing project that is     
allocated housing credit dollar amounts 
under section #db and materially        
participated 7within the meaning of     
section #dfi7;h77 in the development and
 operation of such project4  7#c7       
,affordable housing requirement ,the    
requirements of this paragraph are met  
with respect to property if such        
property has1 as of the date of the sale
 or transfer referred to in paragraph   
7#a71 a covenant or other binding legal 
restriction sufficient to obligate1 at  
all times during the #cj-year period    
beginning on such date1 each owner of   
such property with respect to the       
portion of such period during which such

 owner owns such property1 to maintain  
such property as either3 7,a7           
residential rental property 7within the 
meaning of section #afh7 that meets the 
requirements of subparagraph 7,a71 7,b71
 or 7,c7 of section #db7;g77#a7 7applied
 by treating such property as a         
project71 or  7,b7 a shelter or property
 eligible for assistance under title    
,,iv of the ,mc,kinney-,vento ,homeless 
,assistance ,act1 and  7#d7             
,notification of ,treasury  7,a7 ,in    
general ,the requirements of this       
paragraph are met with respect to any   
property if1 not later than #ij days    
after the date of the sale or transfer  
referred to in paragraph 7#a71 the      
transferor notifies the ,secretary of   
such transfer in such manner as the     
,secretary may provide4  7,b7           
,enforcement obligations of ,treasury   
,with respect to each property the      
,secretary receives notification under  
subparagraph 7,a71 the ,secretary shall 
ensure 7not less often than every #e    

years during the #cj-year period        
described in paragraph 7#c7 that such   
property complies with the requirements 
of paragraph 7#c774  7,c7 ,audits ,the  
,secretary shall enforce the            
affordability requirements of paragraph 
7#c7 through audit procedures4  7#e7    
,sale price does not exceed qualified   
appraisal ,the requirements of this     
paragraph are met with respect to any   
property if-- 7,a7 the taxpayer attaches
 to the return of tax for the taxable   
year which includes the date of the sale
 or transfer of such property a         
qualified appraisal 7as defined section 
#agj7;f77#aa77;,e77 of such property1   
and  7,b7 the sale price of such        
property does not exceed the amount     
determined in such appraisal4  7#f7     
,special rule for real property held for
 productive use in trade or business    
,for purposes of subsection 7a71 if the 
real property described in paragraph    
7#a7 is held for productive use in a    
trade or business or for investment1    

property of a like kind to be held      
either for productive use in a trade or 
business or for investment shall be     
treated as property similar or related  
in service or use to the property so    
described4  7#g7 ,regulations ,the      
,secretary may prescribe such           
regulations or other guidance as may be 
necessary or appropriate to carry out   
the purposes of this subsection4  4  7b7
 ,effective date ,the amendment made by 
this section shall apply to sales and   
transfers after the date of the         
enactment of this ,act4