,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ihgj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,july #bb1 #bjbf,mr4  
,pet]s 7= himself & ,mr4 ,fitzpatrick7  
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to all[ = nonrecognition (
 ga9 on real prop]ty sold = use z       
af=dable h\s+4  #a4 ,%ort title ,?is    
,act may be cit$ z ! ,af=dable ,h\s+    
,inc5tives ,act4  #b4 ,nonrecognition ( 
ga9 on prop]ty sold = use z af=dable    
h\s+  7a7 ,9 g5]al ,section #ajcc ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by r$esignat+ subsection 7k7 z          
subsection 7l7 & by ins]t+ aft]         
subsection 7j7 ! foll[+ new subsection3 
7k7 ,sales = use z af=dable h\s+  7#a7  
,9 g5]al ,= purposes ( ?is subtitle1 if 
real prop]ty is sold or o!rwise         
transf]r$ to a qualifi$ h\s+ op]ator =  
use or developm5t by su* op]ator z      
af=dable h\s+ & su* prop]ty meets !     
requirem5ts ( p>agraphs 7#c71 7#d71 &   

7#e71 su* sale or transf] %all be treat$
 z an involunt>y conv]sion to :i* ?is   
section applies4  7#b7 ,qualifi$ h\s+   
op]ator ,= purposes ( ?is section1 ! t]m
 qualifi$ h\s+ op]ator means any ( !    
foll[+3 7,a7 ,a ,/ate1 tribal1 or local 
gov]nm5t1 or any political subdivision  
or in/rum5tality !re(1 includ+ a public 
h\s+ ag5cy 7z def9$ 9 subp>agraph 7,a7  
or 7,b7 ( section #c7;b77#f7 ( ! ,unit$ 
,/ates ,h\s+ ,act ( #aicg 7#db ,u4,s4,c4
 #adcg;a7b77#f7774  7,b7 ,a tribally    
designat$ h\s+ entity 7z su* t]m is     
def9$ 9 section #d ( ! ,native ,am]ican 
,h\s+ ,assi/ance & ,self-,det]m9ation   
,act ( #aiif74  7,c7 ,a community h\s+  
developm5t organization 7z su* t]m is   
def9$ 9 section #ajd ( !                
,cran/on-,gonzalez ,national ,af=dable  
,h\s+ ,act74  7,d7 ,an organization     
:i*-- 7i7 has ! purpose ( provid+       
af=dable h\s+1  7ii7 has receiv$ ,f$]al1
 ,/ate1 or local grant funds to develop 
or op]ate af=dable h\s+1 or  7iii7 has  
own$ 7ei!r directly or ?r\gh a p>tn]%ip7

 an int]e/ 9 a qualifi$ l[-income h\s+  
project t is allocat$ h\s+ cr$it doll>  
am\nts "u section #db & mat]ially       
p>ticipat$ 7)9 ! mean+ ( section        
#dfi7;h77 9 ! developm5t & op]ation (   
su* project4  7#c7 ,af=dable h\s+       
requirem5t ,! requirem5ts ( ?is p>agraph
 are met ) respect to prop]ty if su*    
prop]ty has1 z ( ! date ( ! sale or     
transf] ref]r$ to 9 p>agraph 7#a71 a    
cov5ant or o!r b9d+ legal re/riction    
suffici5t to obligate1 at all times dur+
 ! #cj-ye> p]iod beg9n+ on su* date1 ea*
 own] ( su* prop]ty ) respect to !      
portion ( su* p]iod dur+ :i* su* own]   
owns su* prop]ty1 to ma9ta9 su* prop]ty 
z ei!r3 7,a7 resid5tial r5tal prop]ty   
7)9 ! mean+ ( section #afh7 t meets !   
requirem5ts ( subp>agraph 7,a71 7,b71 or
 7,c7 ( section #db7;g77#a7 7appli$ by  
treat+ su* prop]ty z a project71 or     
7,b7 a %elt] or prop]ty eligible =      
assi/ance "u title ,,iv ( !             
,mc,kinney-,v5to ,homeless ,assi/ance   
,act1 &  7#d7 ,notification ( ,treasury 

7,a7 ,9 g5]al ,! requirem5ts ( ?is      
p>agraph are met ) respect to any       
prop]ty if1 n lat] ?an #ij days aft] !  
date ( ! sale or transf] ref]r$ to 9    
p>agraph 7#a71 ! transf]or notifies !   
,secret>y ( su* transf] 9 su* mann] z ! 
,secret>y may provide4  7,b7 ,en=cem5t  
obligations ( ,treasury ,) respect to   
ea* prop]ty ! ,secret>y receives        
notification "u subp>agraph 7,a71 !     
,secret>y %all ensure 7n less (t5 ?an e 
#e ye>s dur+ ! #cj-ye> p]iod describ$ 9 
p>agraph 7#c7 t su* prop]ty complies ) !
 requirem5ts ( p>agraph 7#c774  7,c7    
,audits ,! ,secret>y %all en=ce !       
af=dability requirem5ts ( p>agraph 7#c7 
?r\gh audit proc$ures4  7#e7 ,sale price
 does n exce$ qualifi$ appraisal ,!     
requirem5ts ( ?is p>agraph are met )    
respect to any prop]ty if-- 7,a7 !      
taxpay] atta*es to ! return ( tax = !   
taxable ye> :i* includes ! date ( ! sale
 or transf] ( su* prop]ty a qualifi$    
appraisal 7z def9$ section              
#agj7;f77#aa77;,e77 ( su* prop]ty1 &    

7,b7 ! sale price ( su* prop]ty does n  
exce$ ! am\nt det]m9$ 9 su* appraisal4  
7#f7 ,special rule = real prop]ty held =
 productive use 9 trade or bus9ess ,=   
purposes ( subsection 7a71 if ! real    
prop]ty describ$ 9 p>agraph 7#a7 is held
 = productive use 9 a trade or bus9ess  
or = inve/m5t1 prop]ty ( a l k9d to be  
held ei!r = productive use 9 a trade or 
bus9ess or = inve/m5t %all be treat$ z  
prop]ty simil> or relat$ 9 s]vice or use
 to ! prop]ty s describ$4  7#g7         
,regulations ,! ,secret>y may prescribe 
su* regulations or o!r guidance z may be
 necess>y or appropriate to c>ry out !  
purposes ( ?is subsection4  4  7b7      
,effective date ,! am5dm5t made by ?is  
section %all apply to sales & transf]s  
aft] ! date ( ! enactm5t ( ?is ,act4