Bill Summary
This bill, called the "Save Affordable Housing Act of 2019," aims to amend the Internal Revenue Code of 1986. Specifically, it seeks to repeal the qualified contract exception to the extended low-income housing commitment rules for the purpose of the low-income housing credit. This means that buildings that received an allocation of housing credit dollar amount before January 1, 2019 or those that received a determination of eligibility before that date will no longer have the option to terminate their housing credit commitments. The bill also includes rules for existing projects to determine the fair market value of the nonlow-income and low-income portions of the building. The Secretary is authorized to create necessary regulations to carry out these rules. Additionally, there are some technical and conforming amendments made to the code. This bill will go into effect for buildings with written requests submitted after the date of its enactment.
Possible Impacts
1) The Save Affordable Housing Act of 2019 could affect low-income individuals living in subsidized housing as it repeals the qualified contract option, potentially causing them to lose their affordable housing.
2) Real estate developers and investors could be affected by this legislation as it changes the rules for receiving housing credit dollar amounts, potentially impacting their ability to finance and develop low-income housing projects.
3) The Internal Revenue Code amendments in this bill could affect the government's budget and tax revenue, as it may reduce the amount of tax credits available for low-income housing projects.
[Congressional Bills 116th Congress] [From the U.S. Government Publishing Office] [H.R. 3479 Introduced in House (IH)] <DOC> 116th CONGRESS 1st Session H. R. 3479 To amend the Internal Revenue Code of 1986 to repeal the qualified contract exception to the extended low-income housing commitment rules for purposes of the low-income housing credit, and for other purposes. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES June 25, 2019 Mr. Neguse (for himself, Mr. Beyer, and Mrs. Walorski) introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to repeal the qualified contract exception to the extended low-income housing commitment rules for purposes of the low-income housing credit, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Save Affordable Housing Act of 2019''. SEC. 2. REPEAL OF QUALIFIED CONTRACT OPTION. (a) Termination of Option for Certain Buildings.-- (1) In general.--Subclause (II) of section 42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is amended by inserting ``in the case of a building described in clause (iii),'' before ``on the last day''. (2) Buildings described.--Subparagraph (E) of section 42(h)(6) of such Code is amended by adding at the end the following new clause: ``(iii) Buildings described.--A building described in this clause is a building-- ``(I) which received its allocation of housing credit dollar amount before January 1, 2019, or ``(II) in the case of a building any portion of which is financed as described in paragraph (4), which received before January 1, 2019, a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building is eligible to receive an allocation of housing credit dollar amount under the rules of paragraphs (1) and (2) of subsection (m).''. (b) Rules Relating to Existing Projects.--Subparagraph (F) of section 42(h)(6) of the Internal Revenue Code of 1986 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 (determined 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 (1) and (2) of subsection (g)). The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this paragraph.''. (c) Conforming Amendments.-- (1) Paragraph (6) of section 42(h) of the Internal Revenue Code of 1986 is amended by striking subparagraph (G) and by redesignating subparagraphs (H), (I), (J), and (K) as subparagraphs (G), (H), (I), and (J), respectively. (2) Subclause (II) of section 42(h)(6)(E)(i) of such Code, as amended by subsection (a), is further amended by striking ``subparagraph (I)'' and inserting ``subparagraph (H)''. (d) Technical Amendment.--Subparagraph (I) of section 42(h)(6) of the Internal Revenue Code of 1986, as redesignated by subsection (c), is amended by striking ``agreement'' and inserting ``commitment''. (e) Effective Date.--The amendments made by this section shall apply to buildings with respect to which a written request described in section 42(h)(6)(H) of the Internal Revenue Code of 1986 is submitted after the date of the enactment of this Act. <all>