Bill Summary
The Transportation Oriented Development Act of 2020 is a proposed bill that aims to amend the Internal Revenue Code of 1986 by modifying the low-income housing credit to incentivize affordable and transit-oriented development. This bill would increase the eligible basis (amount used to calculate the credit) for buildings located in designated transit-oriented development areas by 150%. These areas would be designated by the Secretary of Housing and Urban Development and State housing credit agencies as being within 1/4 of a mile from a rail, bus, harbor, or waterway station and zoned for high-density. The bill also limits the total area that can be designated for this purpose to 20% of a metropolitan statistical area or nonmetropolitan statistical area. Additionally, the bill calls for a study to be conducted by the Secretary of Housing and Urban Development to identify cost-of-living differences based on geographic location and proximity to transit. This study would inform the Secretary's recommendation for formulas to adjust annual allocations of low-income housing tax credits to reflect these differences.
Possible Impacts
1. Increased access to affordable housing in areas near transit stations could benefit low-income individuals and families who may rely on public transportation to get to work or school.
2. Developers may be incentivized to build more housing in transit-oriented areas, which could lead to gentrification and displacement of current residents.
3. The study conducted by HUD could potentially lead to changes in how tax credits are allocated, which could impact the availability and affordability of housing in different regions of the country.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8969 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 8969
To amend the Internal Revenue Code of 1986 to modify the low-income
housing credit to incentivize affordable and transit-oriented
development, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
December 15, 2020
Ms. Gabbard introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to modify the low-income
housing credit to incentivize affordable and transit-oriented
development, 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 ``Transportation Oriented Development
Act of 2020''.
SEC. 2. LOW-INCOME HOUSING CREDIT FOR TRANSIT-ORIENTED DEVELOPMENT
AREAS.
(a) In General.--Section 42(d)(5) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(C) Increase in credit for buildings in transit-
oriented development areas.--
``(i) In general.--In the case of any
building located in a transit-oriented
development area which is designated for
purposes of this subparagraph--
``(I) in the case of a new
building, the eligible basis of such
building shall be 150 percent of such
basis determined without regard to this
subparagraph, and
``(II) in the case of an existing
building, the rehabilitation
expenditures taken into account under
subsection (e) shall be 150 percent of
such expenditures determined without
regard to this subparagraph.
``(ii) Transit-oriented development area.--
For purposes of this subparagraph, the term
`transit-oriented development area' means an
area designated by the Secretary of Housing and
Urban Development and State housing credit
agency as located in an area within \1/4\ of a
mile from a rail, bus, harbor, or waterway
station and as zoned for high-density.
``(iii) Limit on areas designated.--The
portions of metropolitan statistical areas
which may be designated for purposes of this
subparagraph shall not exceed an aggregate area
having 20 percent of the population of such
metropolitan statistical areas. A comparable
rule shall apply to nonmetropolitan statistical
areas.
``(iv) Coordination with high cost areas.--
If the eligible basis of a new building, or the
rehabilitation expenditures with respect to an
existing building, are determined pursuant to
subparagraph (B), such building shall not be
treated as located in a transit-oriented
development area for purposes of this
subparagraph.''.
(b) Effective Date.--The amendment made by this section shall apply
to buildings placed in service after the date of the enactment of this
Act.
SEC. 3. HUD STUDY REGARDING ADJUSTMENT OF TAX CREDIT ALLOCATIONS TO
REFLECT GEOGRAPHIC COST-OF-LIVING DIFFERENCES.
The Secretary of Housing and Urban Development shall conduct a
study to identify cost-of-living differences throughout the United
States based on geographic location and proximity and accessibility to
transit. Not later than the expiration of the 1-year period beginning
on the date of the enactment of this Act, the Secretary shall submit a
report to the Congress setting forth the results and conclusions of the
study and recommending formulas for the adjustment of annual
allocations to the States of low-income housing tax credits under
section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42) to
reflect such cost-of-living differences.
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