Transportation Oriented Development Act of 2020

I 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. IN THE HOUSE OF REPRESENTATIVES DECEMBER 15, 2020 Ms. GABBARD 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 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 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 ‘‘Transportation Ori- 4 ented Development Act of 2020’’. 5 VerDate Sep 11 2014 00:45 Dec 31, 2020 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H8969.IH H8969 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 8969 IH SEC. 2. LOW-INCOME HOUSING CREDIT FOR TRANSIT-ORI- 1 ENTED DEVELOPMENT AREAS. 2 (a) IN GENERAL.—Section 42(d)(5) of the Internal 3 Revenue Code of 1986 is amended by adding at the end 4 the following new subparagraph: 5 ‘‘(C) INCREASE IN CREDIT FOR BUILDINGS 6 IN TRANSIT-ORIENTED DEVELOPMENT 7 AREAS.— 8 ‘‘(i) IN GENERAL.—In the case of any 9 building located in a transit-oriented devel- 10 opment area which is designated for pur- 11 poses of this subparagraph— 12 ‘‘(I) in the case of a new build- 13 ing, the eligible basis of such building 14 shall be 150 percent of such basis de- 15 termined without regard to this sub- 16 paragraph, and 17 ‘‘(II) in the case of an existing 18 building, the rehabilitation expendi- 19 tures taken into account under sub- 20 section (e) shall be 150 percent of 21 such expenditures determined without 22 regard to this subparagraph. 23 ‘‘(ii) TRANSIT-ORIENTED DEVELOP- 24 MENT AREA.—For purposes of this sub- 25 paragraph, the term ‘transit-oriented de- 26 VerDate Sep 11 2014 00:45 Dec 31, 2020 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H8969.IH H8969 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 8969 IH velopment area’ means an area designated 1 by the Secretary of Housing and Urban 2 Development and State housing credit 3 agency as located in an area within 1⁄4 of 4 a mile from a rail, bus, harbor, or water- 5 way station and as zoned for high-density. 6 ‘‘(iii) LIMIT ON AREAS DES- 7 IGNATED.—The portions of metropolitan 8 statistical areas which may be designated 9 for purposes of this subparagraph shall not 10 exceed an aggregate area having 20 per- 11 cent of the population of such metropolitan 12 statistical areas. A comparable rule shall 13 apply to nonmetropolitan statistical areas. 14 ‘‘(iv) COORDINATION WITH HIGH COST 15 AREAS.—If the eligible basis of a new 16 building, or the rehabilitation expenditures 17 with respect to an existing building, are 18 determined pursuant to subparagraph (B), 19 such building shall not be treated as lo- 20 cated in a transit-oriented development 21 area for purposes of this subparagraph.’’. 22 (b) EFFECTIVE DATE.—The amendment made by 23 this section shall apply to buildings placed in service after 24 the date of the enactment of this Act. 25 VerDate Sep 11 2014 00:45 Dec 31, 2020 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8969.IH H8969 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 8969 IH SEC. 3. HUD STUDY REGARDING ADJUSTMENT OF TAX 1 CREDIT ALLOCATIONS TO REFLECT GEO- 2 GRAPHIC COST-OF-LIVING DIFFERENCES. 3 The Secretary of Housing and Urban Development 4 shall conduct a study to identify cost-of-living differences 5 throughout the United States based on geographic loca- 6 tion and proximity and accessibility to transit. Not later 7 than the expiration of the 1-year period beginning on the 8 date of the enactment of this Act, the Secretary shall sub- 9 mit a report to the Congress setting forth the results and 10 conclusions of the study and recommending formulas for 11 the adjustment of annual allocations to the States of low- 12 income housing tax credits under section 42 of the Inter- 13 nal Revenue Code of 1986 (26 U.S.C. 42) to reflect such 14 cost-of-living differences. 15 Æ VerDate Sep 11 2014 00:45 Dec 31, 2020 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\H8969.IH H8969 pamtmann on DSKBC07HB2PROD with BILLS