,,ii #aaith ,,congress #b;d ,session ,s4 #efbe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #cj1 #bjbf,mr4 ,whitehouse 7for himself and ,mr4 ,reed7 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 enhance the low-income housing tax credit1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,affordable ,housing ,construction ,act4 #b4 ,increase in ,state housing credit ceiling 7a7 ,in general ,section #db7;h77#c77;,c77ii7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking #a4ge in subclause 7,i7 and inserting #i4gi1 and 7#b7 by striking #b1jjj1jjj in subclause 7,,ii7 and inserting #aa1cdj1jjj4 7b7 ,inflation adjustments ,section #db7;h77#c77;,h7 is amended-- 7#a7 by striking ,in the case of a calendar year after #bjjb1 the #b1jjj1jjj and #a4ge amounts in subparagraph 7,c7 in clause 7i7 and inserting ,in the case of a calendar year after #bjbg1 the #aa1cdj1jjj and #i4gi amounts in subparagraph 7,c71 7#b7 by striking calendar year #bjja in clause 7i77,,ii7 and inserting calendar year #bjbf1 7#c7 by striking #b1jjj1jjj in clause 7ii77,i7 and inserting #aa1cdj1jjj1 and 7#d7 by striking #a4ge in clause 7ii77,,ii7 and inserting #i4gi4 7c7 ,effective date ,the amendments made by this section shall apply to calendar years beginning after ,december #ca1 #bjbf4 #c4 ,increased credit amounts and credit allocation set-asides for certain buildings 7a7 ,increased credit amounts 7#a7 ,in general ,section #db7;d77#e7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraphs3 7,c7 ,increase in credit for prevailing wage buildings 7i7 ,in general ,in the case of any building which pays applicable laborers at rates not less than the prevailing rates for construction1 alteration1 or repair of a similar character in the locality in which such facility is located as most recently determined by the ,secretary of ,labor1 in accordance with subchapter ,,iv of chapter #ca of title #dj1 ,united ,states ,code1 and which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such payments to be financially feasible as part of a qualified low-income housing project-- 7,i7 in the case of a new building1 the eligible basis of such building shall be increased by #ej percent of such basis determined without regard to this subparagraph and subparagraphs 7,b71 7,d71 7,e71 7,f71 and 7,g71 and 7,,ii7 in the case of an existing building1 the rehabilitation expenditures taken into account under subsection 7e7 shall be increased by #ej percent of such expenditures determined without regard to this subparagraph and subparagraphs 7,b71 7,d71 7,e71 7,f71 and 7,g74 7ii7 ,applicable laborers ,for purposes of this clause1 the term applicable laborers means1 with respect to any building1 any laborers employed by the taxpayer1 or any contractor or subcontractor1 in the construction1 alteration1 or repair of the building4 7,d7 ,increase in credit for buildings powered by renewable energy 7i7 ,in general ,in the case of any building which utilizes renewable energy 7as defined in section #bjc7;b77#b7 of the ,energy ,policy ,act of #bjje71 and which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such renewable energy use to be financially feasible as part of a qualified low-income housing project-- 7,i7 in the case of a new building1 the eligible basis of such building shall be increased by the applicable percentage of such basis determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,e71 7,f71 and 7,g71 and 7,,ii7 in the case of an existing building1 the rehabilitation expenditures taken into account under subsection 7e7 shall be increased by the applicable percentage of such expenditures determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,e71 7,f71 and 7,g74 7ii7 ,applicable percentage ,for purposes of this subparagraph1 the applicable percentage is #ej percent of the percentage of the energy utilized by such building which is from renewable energy 7as so defined74 7,e7 ,increase in credit for buildings near public transportation 7i7 ,in general ,in the case of any building which is located in a public transportation zone and 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 project-- 7,i7 in the case of a new building1 the eligible basis of such building shall be increased by #be percent of such basis determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,d71 7,f71 and 7,g71 and 7,,ii7 in the case of an existing building1 the rehabilitation expenditures taken into account under subsection 7e7 shall be increased by #be percent of such expenditures determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,d71 7,f71 and 7,g74 7ii7 ,public transportation zone ,for purposes of this subparagraph1 a building is located in a public transportation zone if-- 7,i7 the building is within one-half mile of an existing commuter rail1 light rail1 or subway station1 7,,ii7 the building is within one-quarter mile of one or more existing public bus stops1 or 7,,iii7 the building is located in a census tract-- 7aa7 designated by the ,administrator of the ,environmental ,protection ,agency as having above average walkability1 or 7bb7 which is adjacent to #b or more such census tracts described in item 7aa74 7,f7 ,increase in credit for buildings serving households with people with disabilities 7i7 ,in general ,in the case of any building which has low-income units that meet the applicable design standards for occupancy by persons with mental1 physical1 sensory1 or developmental disabilities1 and 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 project-- 7,i7 in the case of a new building1 the eligible basis of such building shall be increased by the applicable percentage of such basis determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,d71 7,e71 and 7,g71 and 7,,ii7 in the case of an existing building1 the rehabilitation expenditures taken into account under subsection 7e7 shall be increased by the applicable percentage of such expenditures determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,d71 7,e71 and 7,g74 7ii7 ,design standards ,for purposes of clause 7i71 the term applicable design standards means the principles and standards of adaptable design as detailed in the ,uniform ,federal ,accessibility ,standards1 or any successor standard designated by the ,secretary4 7iii7 ,applicable percentage ,for purposes of this subparagraph1 the term applicable percentage means the number of percentage points 7not to exceed #ej percentage points7 by which-- 7,i7 the ratio 7expressed as a percentage and rounded to the nearest percent7 of the number of low-income units in the building that meet the applicable design standards for occupancy by persons with mental1 physical1 sensory1 or developmental disabilities bears to the total number of units in the building1 exceeds 7,,ii7 #e percentage points4 7,g7 ,increase in credit for buildings serving extremely low-income families 7i7 ,in general ,in the case of any building in which #bj percent of the units are occupied by extremely low-income families and 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 project-- 7,i7 in the case of a new building1 the eligible basis of such building shall be increased by #ej percent of such basis determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,d71 7,e71 and 7,f71 and 7,,ii7 in the case of an existing building1 the rehabilitation expenditures taken into account under subsection 7e7 shall be increased by #ej percent of such expenditures determined without regard to this subparagraph and subparagraphs 7,b71 7,c71 7,d71 7,e71 and 7,f74 7ii7 ,extremely low-income families ,for purposes of this subparagraph1 the term extremely low-income families means families whose annual incomes do not exceed #cj percent of the area median gross income1 as determined in consultation with the ,secretary of ,health and ,human ,services4 7,h7 ,limitation ,notwithstanding subparagraphs 7,b71 7,c71 7,d71 7,e71 7,f71 and 7,g7-- 7i7 the eligible basis of any building shall not exceed an amount equal to #bej percent of such basis determined without regard to subparagraphs 7,b71 7,c71 7,d71 7,e71 7,f71 and 7,g71 and 7ii7 the rehabilitation expenditures taken into account under subsection 7e7 shall not exceed #bej percent of such expenditures determined without regard to subparagraphs 7,b71 7,c71 7,d71 7,e71 7,f71 and 7,g74 4 7#b7 ,conforming amendments ,section #db7;d77#e77;,b77i7 of such ,code is amended-- 7,a7 by striking shall be #acj percent of each place it appears in subclauses 7,i7 and 7,,ii7 and inserting shall be increased by #cj percent of1 and 7,b7 by striking this subparagraph each place it appears in subclauses 7,i7 and 7,,ii7 and inserting this subparagraph and subparagraphs 7,b71 7,c71 7,d71 7,e71 7,f71 and 7,g74 7#c7 ,effective date ,the amendments made by this subsection shall apply to buildings placed in service after the date of the enactment of this ,act4 7b7 ,set-,aside for certain projects 7#a7 ,in general ,section #db7;h7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new paragraph3 7#i7 ,portion of ,state ceiling set-aside for certain projects 7,a7 ,in general ,not more than two-thirds of the ,state housing credit ceiling for any ,state for any calendar year shall be allocated to projects other than qualified low-income housing projects described in subparagraphs 7,c71 7,d71 7,e71 7,f71 and 7,g7 of subsection 7d77#e74 7,b7 ,state may not override set-aside ,nothing in subparagraph 7,f7 of paragraph 7#c7 shall be construed to permit a ,state not to comply with subparagraph 7,a7 of this paragraph4 4 7#b7 ,effective date ,the amendments made by this subsection shall apply to calendar years beginning after the date of the enactment of this ,act4 #d4 ,tax-exempt bond financing requirement 7a7 ,in general ,section #db7;h77#d7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subparagraph 7,b77ii77,i7-- 7,a7 by striking obligations described in subparagraph 7,a7 and inserting qualified obligations1 and 7,b7 by striking #be percent and inserting #ae percent1 and 7#b7 by adding at the end the following new subparagraph3 7,c7 ,qualified obligation ,for purposes of subparagraph 7,b77ii71 the term qualified obligation means an obligation which is described in subparagraph 7,a7 and which is part of an issue the issue date of which is before ,january #a1 #bjbh4 4 7b7 ,effective date 7#a7 ,in general ,the amendment made by this section shall apply to buildings placed in service in taxable years beginning after ,december #ca1 #bjbe4 7#b7 ,rehabilitation expenditures treated as separate new building ,in the case of any building with respect to which any expenditures are treated as a separate new building under section #db7;e7 of the ,internal ,revenue ,code of #aihf1 for purposes of paragraph 7#a71 both the existing building and the separate new building shall be treated as having been placed in service on the date such expenditures are treated as placed in service under section #db7;e77#d7 of such ,code4 #e4 ,modification of extended use period 7a7 ,in general ,section #db7;h77#f77;,d77ii77,,ii7 of the ,internal ,revenue ,code of #aihf is amended by striking #ae years and inserting #ce years4 7b7 ,effective date ,the amendment made by this section shall apply to agreements entered into in taxable years beginning after the date of the enactment of this ,act4 #f4 ,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 #bjbg1 or 7,,ii7 in the case of a building any portion of which is financed as described in paragraph 7#d71 and which received before ,january #a1 #bjbg1 under the rules of paragraphs 7#a7 and 7#b7 of subsection 7m71 a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building would be eligible under the qualified allocation plan to receive an allocation of housing credit dollar amount or that the credits to be earned are necessary for financial feasibility of the project and its viability as a qualified low-income housing project throughout the credit period4 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 dates 7#a7 ,in general ,except as provided in paragraph 7#b71 the amendments made by this section shall take effect on the date of the enactment of this ,act4 7#b7 ,subsection 7b7 ,the amendments made by subsection 7b7 shall apply to buildings with respect to which a written request described in section #db7;h77#f77;,h7 of the ,internal ,revenue ,code of #aihf1 as redesignated by subsection 7c71 is submitted after the date of the enactment of this ,act4