Affordable Housing Incentives Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 4239 To amend the Internal Revenue Code of 1986 to allow for nonrecognition of gain on real property sold for use as affordable housing. IN THE HOUSE OF REPRESENTATIVES SEPTEMBER 6, 2019 Mr. SCHIFF 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 allow for nonrecognition of gain on real property sold for use as affordable housing. 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 ‘‘Affordable Housing 4 Incentives Act of 2019’’. 5 SEC. 2. NONRECOGNITION OF GAIN ON PROPERTY SOLD TO 6 PUBLIC HOUSING AGENCIES FOR USE AS AF- 7 FORDABLE HOUSING. 8 (a) IN GENERAL.—Section 1033 of the Internal Rev- 9 enue Code of 1986 is amended by redesignating subsection 10 VerDate Sep 11 2014 21:20 Sep 06, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4239.IH H4239 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4239 IH (k) as subsection (l) and by inserting after subsection (j) 1 the following new subsection: 2 ‘‘(k) SALES TO PUBLIC HOUSING AGENCIES FOR 3 USE AS AFFORDABLE HOUSING.— 4 ‘‘(1) IN GENERAL.—For purposes of this sub- 5 title, if real property is sold or otherwise transferred 6 to a public housing agency (as such term is defined 7 in section 3(b)(6) of the United States Housing Act 8 of 1937) for use or development by such agency as 9 affordable housing to carry out the mandate (relat- 10 ing to affordable housing) of such agency, such sale 11 or transfer shall be treated as an involuntary conver- 12 sion to which this section applies. 13 ‘‘(2) SPECIAL RULE WITH RESPECT TO PERIOD 14 WITHIN WHICH PROPERTY MUST BE REPLACED.—In 15 the case of a sale or transfer described in paragraph 16 (1), subsection (a)(2)(B)(i) shall be applied by sub- 17 stituting ‘3 years’ for ‘2 years’. 18 ‘‘(3) SPECIAL RULE FOR REAL PROPERTY HELD 19 FOR PRODUCTIVE USE IN TRADE OR BUSINESS.— 20 For purposes of subsection (a), if the real property 21 described in paragraph (1) is held for productive use 22 in a trade or business or for investment, property of 23 a like kind to be held either for productive use in a 24 trade or business or for investment shall be treated 25 VerDate Sep 11 2014 21:20 Sep 06, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4239.IH H4239 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4239 IH as property similar or related in service or use to the 1 property so described.’’. 2 (b) EFFECTIVE DATE.—The amendment made by 3 this section shall apply to sales and transfers made after 4 the date of the enactment of this Act. 5 Æ VerDate Sep 11 2014 21:20 Sep 06, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H4239.IH H4239 pamtmann on DSKBC07HB2PROD with BILLS