Save Affordable Housing Act of 2019

II 116TH CONGRESS 1ST SESSION S. 1956 To amend the Internal Revenue Code of 1986 to repeal the qualified contract exception to the extended low-income housing commitment rules for pur- poses of the low-income housing credit, and for other purposes. IN THE SENATE OF THE UNITED STATES JUNE 25, 2019 Mr. WYDEN (for himself, Mr. YOUNG, Mr. CARDIN, and Mr. BROWN) intro- duced the following bill; which was read twice and referred to the Com- mittee on Finance 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Save Affordable Hous- 4 ing Act of 2019’’. 5 SEC. 2. REPEAL OF QUALIFIED CONTRACT OPTION. 6 (a) TERMINATION OF OPTION FOR CERTAIN BUILD- 7 INGS.— 8 VerDate Sep 11 2014 22:48 Jun 27, 2019 Jkt 034408 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1956.IS S1956 pbinns on DSK79D2C42PROD with BILLS 2 •S 1956 IS (1) IN GENERAL.—Subclause (II) of section 1 42(h)(6)(E)(i) of the Internal Revenue Code of 1986 2 is amended by inserting ‘‘in the case of a building 3 described in clause (iii),’’ before ‘‘on the last day’’. 4 (2) BUILDINGS DESCRIBED.—Subparagraph 5 (E) of section 42(h)(6) of such Code is amended by 6 adding at the end the following new clause: 7 ‘‘(iii) BUILDINGS DESCRIBED.—A 8 building described in this clause is a build- 9 ing— 10 ‘‘(I) which received its allocation 11 of housing credit dollar amount before 12 January 1, 2019, or 13 ‘‘(II) in the case of a building 14 any portion of which is financed as 15 described in paragraph (4), which re- 16 ceived before January 1, 2019, a de- 17 termination from the issuer of the 18 tax-exempt bonds or the housing cred- 19 it agency that the building is eligible 20 to receive an allocation of housing 21 credit dollar amount under the rules 22 of paragraphs (1) and (2) of sub- 23 section (m).’’. 24 VerDate Sep 11 2014 22:48 Jun 27, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1956.IS S1956 pbinns on DSK79D2C42PROD with BILLS 3 •S 1956 IS (b) RULES RELATING TO EXISTING PROJECTS.— 1 Subparagraph (F) of section 42(h)(6) of the Internal Rev- 2 enue Code of 1986 is amended by striking ‘‘the nonlow- 3 income portion’’ and all that follows and inserting ‘‘the 4 nonlow-income portion and the low-income portion of the 5 building for fair market value (determined by the housing 6 credit agency by taking into account the rent restrictions 7 required for the low-income portion of the building to con- 8 tinue to meet the standards of paragraphs (1) and (2) of 9 subsection (g)). The Secretary shall prescribe such regula- 10 tions as may be necessary or appropriate to carry out this 11 paragraph.’’. 12 (c) CONFORMING AMENDMENTS.— 13 (1) Paragraph (6) of section 42(h) of the Inter- 14 nal Revenue Code of 1986 is amended by striking 15 subparagraph (G) and by redesignating subpara- 16 graphs (H), (I), (J), and (K) as subparagraphs (G), 17 (H), (I), and (J), respectively. 18 (2) Subclause (II) of section 42(h)(6)(E)(i) of 19 such Code, as amended by subsection (a), is further 20 amended by striking ‘‘subparagraph (I)’’ and insert- 21 ing ‘‘subparagraph (H)’’. 22 (d) TECHNICAL AMENDMENT.—Subparagraph (I) of 23 section 42(h)(6) of the Internal Revenue Code of 1986, 24 VerDate Sep 11 2014 22:48 Jun 27, 2019 Jkt 034408 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1956.IS S1956 pbinns on DSK79D2C42PROD with BILLS 4 •S 1956 IS as redesignated by subsection (c), is amended by striking 1 ‘‘agreement’’ and inserting ‘‘commitment’’. 2 (e) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to buildings with respect to which 4 a written request described in section 42(h)(6)(H) of the 5 Internal Revenue Code of 1986 is submitted after the date 6 of the enactment of this Act. 7 Æ VerDate Sep 11 2014 22:48 Jun 27, 2019 Jkt 034408 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1956.IS S1956 pbinns on DSK79D2C42PROD with BILLS