115 S548 IS: Affordable Housing Credit Improvement Act of 2017
U.S. Senate
2017-03-07
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.Short title; table of contents
(a)This Act may be cited as the Affordable Housing Credit Improvement Act of 2017
. (b)The table of contents for this Act is as follows:Sec. 1. Short title; table of contents.
TITLE I—Reform of State allocation formulas
Sec. 101. Increases in State allocations.
TITLE II—Reforms relating to tenant eligibility
Sec. 201. Average income test.
Sec. 202. Uniform income eligibility for rural projects.
Sec. 203. Codification of rules relating to increased tenant income.
Sec. 204. Modification of student occupancy rules.
Sec. 205. Tenant voucher payments taken into account as rent for certain purposes.
TITLE III—Credit rate and other rules relating to credit eligibility and determination
Sec. 301. Minimum credit rate.
Sec. 302. Reconstruction or replacement period after casualty loss.
Sec. 303. Modification of rights relating to building purchase.
Sec. 304. Modification of 10-year rule; limitation on acquisition basis.
Sec. 305. Certain relocation costs taken into account as rehabilitation expenditures.
Sec. 306. Repeal of qualified census tract population cap.
Sec. 307. Determination of community revitalization plan to be made by housing credit agency.
Sec. 308. Prohibition of local approval and contribution requirements.
Sec. 309. Increase in credit for certain projects designated to serve extremely low-income
households.
Sec. 310. Increase in credit for bond-financed projects designated by State agency.
Sec. 311. Elimination of basis reduction for low-income housing properties receiving certain energy
benefits.
Sec. 312. Restriction of planned foreclosures.
Sec. 313. Increase of population cap for difficult development areas.
TITLE IV—Reforms relating to Native American assistance
Sec. 401. Selection criteria under qualified allocation plans.
Sec. 402. Inclusion of Indian areas as difficult development areas for purposes of certain
buildings.
TITLE V—Affordable housing tax credit
Sec. 501. Affordable housing tax credit.
<enum>I</enum><header>Reform of State allocation formulas</header>
<section id="id64CDC347C70D4D08AC8C9F7BB1E91C5D" section-type="subsequent-section"><enum>101.</enum><header>Increases in State allocations</header>
<subsection id="idF36302ECB39F4F7494DDBB1FAFF641D5"><enum>(a)</enum><header>Phase-In of increases</header>
<paragraph id="idA350F1B81A8B4869ACF2DC4EA46F594E"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(h)(3)(C)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <subparagraph id="id2BEEA5175DFC455897DC39374EC3B1DE"><enum>(A)</enum><text>by striking <quote>$1.75</quote> in subclause (I) and inserting <quote>the per capita dollar amount</quote>, and</text>
</subparagraph><subparagraph id="idC565489F33334BE08CA32212F0B4353E"><enum>(B)</enum><text>by striking <quote>$2,000,000</quote> in subclause (II) and inserting <quote>the minimum ceiling amount</quote>.</text> </subparagraph></paragraph><paragraph id="idB06A5D3F33FF4EB0B0288D26A8F9A461"><enum>(2)</enum><header>Per capita dollar amount; minimum ceiling amount</header><text>Subparagraph (I) of section 42(h)(3) of such Code is amended to read as follows:</text>
<quoted-block act-name="" id="id3D4900204F354C0F9A6B29234586618A" style="OLC">
<subparagraph id="id5658C02DA8DC499CAF2AF9C77D8B47FA"><enum>(I)</enum><header>Per capita dollar amount; minimum ceiling amount</header><text>For purposes of this paragraph—</text> <clause id="idB2E6F7943F6D4330841CE419EC0719EC"><enum>(i)</enum><header>Per capita dollar amount</header><text>The per capita dollar amount is—</text>
<subclause id="idB9CACF62EEE34BB391592532DB8EBF9C"><enum>(I)</enum><text>for calendar year 2017, $2.35,</text> </subclause><subclause id="idE65D96A2055B490FB8D67685D46A9278"><enum>(II)</enum><text>for calendar year 2018, $2.59,</text>
</subclause><subclause id="id4BE0E416AFDA422DA6735277471081DB"><enum>(III)</enum><text>for calendar year 2019, $2.82,</text> </subclause><subclause id="id7EC0E1F56B8E43679C3E77664C224230"><enum>(IV)</enum><text>for calendar year 2020, $3.06,</text>
</subclause><subclause id="id130DFF4C896D4232AE951D76D7D80388"><enum>(V)</enum><text>for calendar year 2021, $3.29, and</text> </subclause><subclause id="id684E8BDFA9994B0886827FA6776F4C7F"><enum>(VI)</enum><text>$3.53 thereafter.</text>
</subclause></clause><clause id="idBB233B5D61F1469298A75F3B2AE98FB0"><enum>(ii)</enum><header>Minimum ceiling amount</header><text>The minimum ceiling amount is—</text> <subclause id="id9C228E7F1F9544E382B62A6681234512"><enum>(I)</enum><text>for calendar year 2017, $2,710,000,</text>
</subclause><subclause id="id4016631D1F614150803F93D5E91A1D27"><enum>(II)</enum><text>for calendar year 2018, $2,981,000,</text> </subclause><subclause id="idB943D740DEE344F19E46213F964736F2"><enum>(III)</enum><text>for calendar year 2019, $3,252,000,</text>
</subclause><subclause id="id8D11788B027C4EF6AC64402F08145DC3"><enum>(IV)</enum><text>for calendar year 2020, $3,523,000,</text> </subclause><subclause id="id56651DB0261B4744A993EE382D18534A"><enum>(V)</enum><text>for calendar year 2021, $3,794,000, and</text>
</subclause><subclause id="id863E328EB759463B8275ADE35B3665D5"><enum>(VI)</enum><text>$4,065,000 thereafter.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </paragraph><paragraph id="idC9D725D6E83A499EA2A61F29F7ADD39F"><enum>(3)</enum><header>Modification of cost-of-living adjustment</header><text>Subparagraph (H) of section 42(h)(3) of such Code is amended—</text>
<subparagraph id="id71CE5760B38A4158889E7DF41AC29747"><enum>(A)</enum><text>by striking <quote>2002</quote> in clause (i) and inserting <quote>2017</quote>,</text> </subparagraph><subparagraph id="id2FC2CD5EB4C24BA4B3AEBA2A497D93E3"><enum>(B)</enum><text>by striking <quote>the $2,000,000 and $1.75 amounts in subparagraph (C)</quote> in clause (i) and inserting <quote>the dollar amounts applicable to such calendar year under clauses (i) and (ii) of subparagraph (I)</quote>,</text>
</subparagraph><subparagraph id="id3058683D024D4490BC7F28FE70546696"><enum>(C)</enum><text>by striking <quote>2001</quote> in clause (i)(II) and inserting <quote>2016</quote>,</text> </subparagraph><subparagraph id="id7DEB0DD4BD094B5EB6727B544D97670E"><enum>(D)</enum><text>by striking <quote>$2,000,000</quote> in clause (ii)(I) and inserting <quote>minimum ceiling</quote>, and</text>
</subparagraph><subparagraph id="idAC23B891AC2349F3B0EE766C62D3A59F"><enum>(E)</enum><text>by striking <quote>$1.75</quote> in clause (ii)(II) and inserting <quote>per capita dollar</quote>.</text> </subparagraph></paragraph><paragraph id="id7FE4161E0EFA40CB8354722CA526C22D"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to calendar years beginning after December 31, 2017.</text>
</paragraph></subsection><subsection id="id0CDB7608019B4569BB3F7B8B863DBB70"><enum>(b)</enum><header>Permanent increases</header>
<paragraph id="id2CBD0197D4C64516B4ACB12AB6F51DC0"><enum>(1)</enum><header>In general</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(h)(3)(C)</external-xref> of the Internal Revenue Code of 1986, as amended by subsection (a)(1), is amended—</text>
<subparagraph id="id4B5BF6A8676F4FB8944BADB5E58556DC"><enum>(A)</enum><text>by striking <quote>the per capita dollar amount</quote> in subclause (I) and inserting <quote>$3.53</quote>, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idB3824672A08443DC994958B0D4856E70"><enum>(B)</enum><text>by striking <quote>the minimum ceiling amount</quote> in subclause (II) and inserting <quote>$4,065,000</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id00DD42942FDC47CCBC71969D847ECCF0"><enum>(2)</enum><header>Conforming amendment</header><text>Paragraph (3) of section 42(h) of such Code is amended by striking subparagraph (I), as amended by subsection (a)(2).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id91F203E6B34B42D5AE42E7C71281CB3A"><enum>(3)</enum><header>Cost-of-living adjustment</header><text>Subparagraph (H) of section 42(h)(3) of such Code, as amended by subsection (a)(3), is amended—</text> <subparagraph commented="no" display-inline="no-display-inline" id="idE6987EC3B2E44F3C8F2C0D6A304C3917"><enum>(A)</enum><text>by striking <quote>the dollar amounts applicable to such calendar year under clauses (i) and (ii) of subparagraph (I)</quote> in clause (i) and inserting <quote>the $4,065,000 and $3.53 amounts in subparagraph (C)</quote>,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idE78D7312356E415D85443A225F3025A8"><enum>(B)</enum><text>by striking <quote>minimum ceiling</quote> in clause (ii)(I) and inserting <quote>$4,065,000</quote>, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3539FEE69C534007ABDB43CFC53A850A"><enum>(C)</enum><text>by striking <quote>per capita dollar</quote> in clause (ii)(II) and inserting <quote>$3.53</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idC1BE706FF969451AA99179BC9E48A3CC"><enum>(4)</enum><header>Effective date</header><text>The amendments made by this subsection shall apply to calendar years beginning after December 31, 2022.</text>
</paragraph></subsection></section><enum>II</enum><header>Reforms relating to tenant eligibility</header>
<section id="id5B2B1F22F29B49EAAD42D24A314FDFBF"><enum>201.</enum><header>Average income test</header>
<subsection id="id76455AFA08034395B7EBCE42BCCF9800"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(g)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id4AD5923A370743C1AA3E266FE5E7E11B"><enum>(1)</enum><text>by striking <quote>subparagraph (A) or (B)</quote> and inserting <quote>subparagraph (A), (B), or (C)</quote>, and</text>
</paragraph><paragraph id="idB3368764B12546CFB04104A52AB1C362"><enum>(2)</enum><text>by inserting after subparagraph (B) the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="id9EF0B6FDFF904DD3BA2F3C251FD8675D" style="OLC"> <subparagraph id="id3A8E408EE44A44E9AF3421562666E9FE"><enum>(C)</enum><header>Average income test</header> <clause id="idB3A05B06789B46FF96FEAD9D2772CD6E"><enum>(i)</enum><header>In general</header><text>The project meets the minimum requirements of this subparagraph if 40 percent or more (25 percent or more in the case of a project described in section 142(d)(6)) of the residential units in such project are both rent-restricted and occupied by individuals whose income does not exceed the imputed income limitation designated by the taxpayer with respect to the respective unit.</text>
</clause><clause id="idEE328A01CFF14FC99E2B9B8FC74D3718"><enum>(ii)</enum><header>Special rules relating to income limitation</header><text>For purposes of clause (i)—</text> <subclause id="id4D6516015D3748649A296AEAEA838393"><enum>(I)</enum><header>Designation</header><text>The taxpayer shall designate the imputed income limitation of each unit taken into account under such clause.</text>
</subclause><subclause id="id4B3F1127962443F3AFD9C247433E08DF"><enum>(II)</enum><header>Average test</header><text>The average of the imputed income limitations designated under subclause (I) shall not exceed 60 percent of area median gross income.</text>
</subclause><subclause id="id789AD1246BAC4AB3AE5E3743D8E48036"><enum>(III)</enum><header>10-percent increments</header><text>The designated imputed income limitation of any unit under subclause (I) shall be 20 percent, 30 percent, 40 percent, 50 percent, 60 percent, 70 percent, or 80 percent of area median gross income.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6626C9605ECD41329376E372DB3D184E"><enum>(b)</enum><header>Rules relating to next available unit</header><text>Subparagraph (D) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(g)(2)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="idA244C6BC252C45DEB71E42997DA34053"><enum>(1)</enum><text>in clause (i), by striking <quote>clause (ii)</quote> and inserting <quote>clauses (ii), (iii), and (iv)</quote>,</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id15AC96E2D88F4017BCEB1C52B9BA1B9C"><enum>(2)</enum><text>in clause (ii)—</text> <subparagraph commented="no" display-inline="no-display-inline" id="id343E373612FB4AE097732D0705FD514A"><enum>(A)</enum><text>by striking <quote>If</quote> and inserting <quote>In the case of a project with respect to which the taxpayer elects the requirements of subparagraph (A) or (B) of paragraph (1), if</quote>,</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id8920F300ECC445CFB3D007E0ECB11B9E"><enum>(B)</enum><text>by striking the second sentence, and</text> </subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id748D2A48848843EA8709E019A3334C1A"><enum>(C)</enum><text>by striking <quote><header-in-text level="clause" style="OLC">Next available unit must be rented to low-income tenant if income rises above 140 percent of income limit</header-in-text></quote> in the heading and inserting <quote><header-in-text level="clause" style="OLC">Rental of next available unit in case of 20–50 or 40–60 test</header-in-text></quote>, and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id22F52D7234544DDF8E5B6E717A482F2B"><enum>(3)</enum><text>by adding at the end the following new clauses:</text> <quoted-block act-name="" display-inline="no-display-inline" id="id3001F254225A47BDAA1C96608BFAB802" style="OLC"> <clause id="idF6FDCFD4416E45E7A66C98AEB3595763"><enum>(iii)</enum><header>Rental of next available unit in case of average income test</header><text>In the case of a project with respect to which the taxpayer elects the requirements of subparagraph (C) of paragraph (1), if the income of the occupants of the unit increases above 140 percent of the greater of—</text>
<subclause id="id6C95982F1038458BADAAC596E8CD7F05"><enum>(I)</enum><text>60 percent of area median gross income, or</text> </subclause><subclause id="id9F64A29FC0B74202A98CDE7102DB18D8"><enum>(II)</enum><text>the imputed income limitation designated with respect to the unit under paragraph (1)(C)(ii)(I),</text>
</subclause><continuation-text continuation-text-level="clause">clause (i) shall cease to apply to any such unit if any residential rental unit in the building (of
a size comparable to, or smaller than, such unit) is occupied by a new
resident whose income exceeds the limitation described in clause (v).</continuation-text></clause><clause id="id43457517588447D3816A2271114C7041"><enum>(iv)</enum><header>Deep rent skewed projects</header><text>In the case of a project described in section 142(d)(4)(B), clause (ii) or (iii), whichever is applicable, shall be applied by substituting <quote>170 percent</quote> for <quote>140 percent</quote>, and—</text>
<subclause id="id952AF54691214F80A169E2D85D7B31A7"><enum>(I)</enum><text>in the case of clause (ii), by substituting <quote>any low-income unit in the building is occupied by a new resident whose income exceeds 40 percent of area median gross income</quote> for <quote>any residential rental unit</quote> and all that follows in such clause, and</text>
</subclause><subclause id="id75A503E95E054B728B00CAA4E79BCF03"><enum>(II)</enum><text>in the case of clause (iii), by substituting <quote>any low-income unit in the building is occupied by a new resident whose income exceeds the lesser of 40 percent of area median gross income or the imputed income limitation designated with respect to such unit under paragraph (1)(C)(ii)(I)</quote> for <quote>any residential rental unit</quote> and all that follows in such clause.</text>
</subclause></clause><clause id="idC8BD43FB567B43A1BE20832C15CA9431"><enum>(v)</enum><header>Limitation described</header><text>For purposes of clause (iii), the limitation described in this clause with respect to any unit is—</text> <subclause id="id71A12639447F4423ADCE0846799A6F84"><enum>(I)</enum><text>the imputed income limitation designated with respect to such unit under paragraph (1)(C)(ii)(I), in the case of a unit which was taken into account as a low-income unit prior to becoming vacant, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="idEAF585337EA24FE0B2C842A1C114BB09"><enum>(II)</enum><text>the imputed income limitation which would have to be designated with respect to such unit under such paragraph in order for the project to continue to meet the requirements of paragraph (1)(C)(ii)(II), in the case of any other unit.</text></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id84698CFFB03E4D0F892F1CCDA810B8D2"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to elections made under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(g)(1)</external-xref> of the Internal Revenue Code of 1986 after the date of the enactment of this Act.</text>
</subsection></section><section id="idEE3DF5EA3BBD40838223D8CA00D8FE30"><enum>202.</enum><header>Uniform income eligibility for rural projects</header>
<subsection id="idDDBD54B0013F41EB9FA82C164AEB7146"><enum>(a)</enum><header>In general</header><text>Paragraph (8) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(i)</external-xref> of the Internal Revenue Code of 1986 is amended by striking the second sentence.</text>
</subsection><subsection id="id027E130E01954822A20D589EDF61CCB7"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2017.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="id20B5619E52A24FC6A54D2BA0DC865359"><enum>203.</enum><header>Codification of rules relating to increased tenant income</header> <subsection commented="no" display-inline="no-display-inline" id="id449675797B324495BBA8B2DFF42ED35E"><enum>(a)</enum><header>In general</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(g)(2)(D)</external-xref> of the Internal Revenue Code of 1986, as amended by this Act, is amended by striking <quote>clauses (ii), (iii), and (iv)</quote> and all that follows and inserting “clauses (ii), (iii), (iv), and (vi), notwithstanding an increase in the income of the occupants above the income limitation applicable under paragraph (1)—</text>
<quoted-block display-inline="no-display-inline" id="id3BDA4FD9166B47E5BD5FB2A4E9F6E4D5" style="OLC">
<subclause commented="no" display-inline="no-display-inline" id="id284D35A71B174A4282F159DADB7BC64D"><enum>(I)</enum><text>a low-income unit shall continue to be treated as a low-income unit if the income of such occupants initially was 60 percent or less of area median gross income and such unit continues to be rent-restricted, and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id4C606D7FA7934D739BE7996A11FCE9B7"><enum>(II)</enum><text>a unit to which, at the time of initial occupancy by such occupants, any Federal, State, or local government income restriction applied, and which subsequently becomes part of a building with respect to which rehabilitation expenditures are taken into account under subsection (e), shall be treated as a low-income unit if the income of such occupants initially was 60 percent or less of area median gross income and does not exceed 120 percent of area median gross income as of the date of acquisition of the property by the taxpayer.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id06A74433644148D3905667B694CBC91E"><enum>(b)</enum><header>Exception</header><text>Subparagraph (D) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(g)(2)</external-xref> of the Internal Revenue Code of 1986, as amended by this Act, is amended by adding at the end the following new clause:</text>
<quoted-block act-name="" id="id5CB19EE633F2459EAA126E569EE43EDF" style="OLC">
<clause id="id665597926515460A8A64FE556540C3FD"><enum>(vi)</enum><header>Exception to rule relating to increased tenant income</header><text>In the case of an occupant of a low-income unit who initially qualified to occupy such unit by reason of paragraph (1)(C) with an income in excess of 60 percent of area median gross income but not in excess of 80 percent of area median gross income, clause (i) shall be applied for substituting <quote>80 percent</quote> for <quote>60 percent</quote> each place it appears.</text></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id33C0C4832EDF436F846DCF3703BA0075"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2016.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idC384FE1CA03A47CF88F01402E79E1266"><enum>204.</enum><header>Modification of student occupancy rules</header> <subsection commented="no" display-inline="no-display-inline" id="id9F2273CFABB8418BBA9B3FEADFD9E037"><enum>(a)</enum><header>In general</header><text>Subparagraph (D) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(i)(3)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id170021C4B9BC45BE9928F6C4999C2F7C" style="OLC">
<subparagraph id="id609F906EF1254358A00D3203FE3BFD7F"><enum>(D)</enum><header>Rules relating to students</header>
<clause id="id4E323C3B27B54C049B9E9C13537737A1"><enum>(i)</enum><header>In general</header><text>A unit occupied solely by individuals who—</text> <subclause id="id14E8094C3C5749C29939FDDEEF005324"><enum>(I)</enum><text>have not attained age 24, and</text>
</subclause><subclause id="idE4850C73A2BC4519BA3F6F2F9DFAB28E"><enum>(II)</enum><text>are enrolled in a full-time course of study at an institution of higher education (as defined in section 3304(f)),</text>
</subclause><continuation-text continuation-text-level="clause">shall not be treated as a low-income unit.</continuation-text></clause><clause id="id9A23A83D9A2C4430BCCCC118B903C1A1"><enum>(ii)</enum><header>Exception for certain Federal programs</header><text>In the case of a federally assisted building (as defined in subsection (d)(6)(C)(i)), clause (i) shall not apply to a unit the occupants of which meet all requirements applicable under the housing program described in subsection (d)(6)(C)(i) through which the building is assisted, financed, or operated.</text>
</clause><clause id="id30452193A59543C5853EDE32BBB839E4"><enum>(iii)</enum><header>Other exceptions</header><text>Clause (i) shall not apply to a unit occupied by an individual who—</text> <subclause id="idB66D5A99CD9A4FB1899AAF3EE7422A6C"><enum>(I)</enum><text>is married,</text>
</subclause><subclause id="id0CE0C46AF162417B8DED9043C8099A6E"><enum>(II)</enum><text>is a person with disabilities (as defined in section 3(b)(3)(E) of the United States Housing Act of 1937),</text>
</subclause><subclause id="idD9C41D773A134A1AB3183D4902B6E507"><enum>(III)</enum><text>is a veteran (as defined in section 101(2) of title 38, United States Code),</text> </subclause><subclause id="id41CD8E038B0D4146B0ACCC869906435C"><enum>(IV)</enum><text>has one or more qualifying children (as defined in section 152(c)), or</text>
</subclause><subclause id="id66930E81D66E4C4C86AC8B499673439C"><enum>(V)</enum><text>meets the income limitation applicable under subsection (g)(1) to the project of which the building is a part and is, or was immediately prior to attaining the age of majority—</text>
<item id="id13A8DD4F2B224BDABBBA8D741CE536BC"><enum>(aa)</enum><text>an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual's State of legal residence,</text>
</item><item commented="no" display-inline="no-display-inline" id="id58E36C0BE53B4D9087FC0C5A27D99AFB"><enum>(bb)</enum><text display-inline="yes-display-inline">under the care and placement responsibility of the State agency responsible for administering a plan under part B or part E of title IV of the Social Security Act, or</text>
</item><item id="id704ED69DE88C41FC9610D263F6E6FD43"><enum>(cc)</enum><text>was an unaccompanied youth (within the meaning of section 725(6) of the McKinney-Vento Homeless Assistance Act (<external-xref legal-doc="usc" parsable-cite="usc/42/11434a">42 U.S.C. 11434a(6)</external-xref>)) or a homeless child or youth (within the meaning of section 725(2) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/42/11434a">42 U.S.C. 11434a(2)</external-xref>)).</text></item></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id99546C5D57304F8882D681C15D676B6E"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to taxable years beginning after December 31, 2017.</text> </subsection></section><section commented="no" display-inline="no-display-inline" id="idBFA28FA7A37B47029AE19632074EA66C"><enum>205.</enum><header>Tenant voucher payments taken into account as rent for certain purposes</header> <subsection commented="no" display-inline="no-display-inline" id="idD13604C7BC8846E9A1558734D7737939"><enum>(a)</enum><header>In general</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(g)(2)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: <quote>In the case of a project with respect to which the taxpayer elects the requirements of subparagraph (C) of paragraph (1), or the portion of a project to which subsection (d)(5)(C) applies, clause (i) shall not apply with respect to any tenant-based assistance (as defined in section 8(f)(7) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(f)(7)</external-xref>)).</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id2DE217DE64C440C28BB8DADB2E3B639B"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to rent paid in taxable years beginning after December 31, 2017.</text>
</subsection></section><enum>III</enum><header>Credit rate and other rules relating to credit eligibility and determination</header>
<section id="id553F618AEC284CE5B915A75F8E4FF8E1"><enum>301.</enum><header>Minimum credit rate</header>
<subsection id="idF3DBB735EEDB4E40ADFAC6C55BCC613E"><enum>(a)</enum><header>In general</header><text>Subsection (b) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id263A8246AA6B4CF09BAB18E33F59FC88"><enum>(1)</enum><text>by redesignating paragraph (3) as paragraph (4), and</text>
</paragraph><paragraph id="id237C14C093A14A8DB0F2760BDB9CBBF9"><enum>(2)</enum><text>by inserting after paragraph (2) the following new paragraph:</text> <quoted-block act-name="" id="idB898B512A4334BFAA71DDD3BF19D30D6" style="OLC"> <paragraph id="id8154C3AD41844F17A1B16C40A2141E2E"><enum>(3)</enum><header>Minimum credit rate</header><text>In the case of any new or existing building to which paragraph (2) does not apply and which is placed in service by the taxpayer after December 31, 2016, the applicable percentage shall not be less than 4 percent.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="idDEB9583BC24947F2AA73BE576E269910"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to buildings placed in service after December 31, 2016.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idBAF4B3C1968448CBA925B557139EA879"><enum>302.</enum><header>Reconstruction or replacement period after casualty loss</header>
<subsection commented="no" display-inline="no-display-inline" id="idBA3885B3A1F149B09C5637A346C977C7"><enum>(a)</enum><header>In general</header><text>Subparagraph (E) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(j)(4)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>a reasonable period established by the Secretary</quote> and inserting <quote>a reasonable period established by the applicable housing credit agency (not to exceed 25 months from the date on which the casualty loss arises). The determination under paragraph (1) shall not be made with respect to a property the basis of which is affected by a casualty loss until the period described in the preceding sentence with respect to such property has expired.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idDC8A23A1D7FE47A0AF8D458D15B29AEF"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to casualty losses arising after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idB3C81427D98C4823AE8B7CA5A69F1982"><enum>303.</enum><header>Modification of rights relating to building purchase</header>
<subsection commented="no" display-inline="no-display-inline" id="id815DA4C8E25F4B12A1CDFA836B71D6E1"><enum>(a)</enum><header>In general</header><text>Subparagraph (A) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(i)(7)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph commented="no" display-inline="no-display-inline" id="idCFD56B48F8A34C91A4552F2642D9AF08"><enum>(1)</enum><text>by striking <quote>a right of 1st refusal</quote> and inserting <quote>an option</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id09F31EEF375544FBAF4FAEA5073C3B98"><enum>(2)</enum><text>by striking <quote>the property</quote> and inserting <quote>the property or a partnership interest relating to the property</quote>.</text> </paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id4396B5A88CC84C37AEA7E333A5CC3D2D"><enum>(b)</enum><header>Conforming amendment</header><text>Subparagraph (B) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(i)(7)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: <quote>In the case of a purchase of a partnership interest, the minimum purchase price is an amount equal to such interest's ratable share of the amount determined under the first sentence of this subparagraph.</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id0782C12C98494873807808305341DB2C"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to agreements entered into or amended after the date of the enactment of this Act.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idBCF23F228EDB4C13960248257034CB6B"><enum>304.</enum><header>Modification of 10-year rule; limitation on acquisition basis</header>
<subsection commented="no" display-inline="no-display-inline" id="idC15B379D3E73442BA019D2416BA1AF96"><enum>(a)</enum><header>In general</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(2)(B)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>, or the taxpayer elects the application of subparagraph (C)(ii)</quote> after <quote>service</quote>.</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="idF83221F94C834938B79684153F3F9B72"><enum>(b)</enum><header>Limitation on acquisition basis</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(2)</external-xref> of the Internal Revenue Code of 1986 is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id482762B1D38F4E3AB8756C9772326C4E"><enum>(1)</enum><text>by striking <quote>For purposes of subparagraph (A), the adjusted basis</quote> and inserting “For purposes of subparagraph (A)—</text> <quoted-block display-inline="no-display-inline" id="idD4633EF37CF74DF590C3FEA5F13EC0C3" style="OLC"> <clause commented="no" display-inline="no-display-inline" id="id5225EF4111E24589B1463C56D6077BE2"><enum>(i)</enum><header>In general</header><text>The adjusted basis</text></clause><after-quoted-block>, and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id45E75A5F199141AE891833EF8D19600C"><enum>(2)</enum><text>by adding at the end the following new clauses:</text> <quoted-block act-name="" id="id36A825B87869454AB23128A1380A4492" style="OLC"> <clause id="id8849ABD2E97B458AA6F2030A320A7BA8"><enum>(ii)</enum><header>Buildings in service within previous 10 years</header><text>If the period between the date of acquisition of the building by the taxpayer and the date the building was last placed in service is less than 10 years, the taxpayer's basis attributable to the acquisition of the building which is taken into account in determining the adjusted basis shall not exceed the sum of—</text>
<subclause id="id59487AD491574F9599A88C9621A79A61"><enum>(I)</enum><text>the lowest amount paid for acquisition of the building by any person during the 10 years preceding the date of the acquisition of the building by the taxpayer, adjusted as provided in clause (iii), and</text>
</subclause><subclause id="idDCCFF424850444CA9E6F994E145D85E2"><enum>(II)</enum><text>the value of any capital improvements made by the person who sells the building to the taxpayer which are reflected in such seller's basis.</text>
</subclause></clause><clause id="id64342B0AD326419BB98254DA9CC1A02E"><enum>(iii)</enum><header>Adjustment</header><text>With respect to a basis determination made in any taxable year, the amount described in clause (ii)(I) shall be increased by an amount equal to—</text>
<subclause id="id9EA73AC6F42C42F385BFD04CC405984B"><enum>(I)</enum><text>such amount, multiplied by</text> </subclause><subclause id="idA496C8BAC2FE40A19E187291996FB423"><enum>(II)</enum><text>a cost-of-living adjustment, determined in the same manner as under section 1(f)(3) for the calendar year in which the taxable year begins by taking into account the acquisition year in lieu of calendar year 1992.</text>
</subclause><continuation-text continuation-text-level="clause">For purposes of the preceding sentence, the acquisition year is the calendar year in which the
lowest amount referenced in clause (ii)(I) was paid for the acquisition of
the building.</continuation-text></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC8309E89EF714A8AB2BF4699CC2F30D2"><enum>(c)</enum><header>Conforming amendments</header><text>Clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(2)(D)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id3167F2DC54FF4A81A557D8CC9EF9D26E"><enum>(1)</enum><text>by striking <quote><header-in-text level="subparagraph" style="OLC">for subparagraph (B)</header-in-text></quote> in the heading, and</text>
</paragraph><paragraph id="id550CC649876B488798B1D33A76058992"><enum>(2)</enum><text>by striking <quote>subparagraph (B)(ii)</quote> in the matter preceding subclause (I) and inserting <quote>subparagraph (B)(ii) or (C)(ii)</quote>.</text> </paragraph></subsection><subsection id="id908D89EB895746ED9FC07502BCCCE9F8"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to buildings placed in service after December 31, 2016.</text>
</subsection></section><section id="id4EBB52DDB0974B74B4389F961EE78989"><enum>305.</enum><header>Certain relocation costs taken into account as rehabilitation expenditures</header>
<subsection id="id084478207A2049C5B43BDB145169A7C1"><enum>(a)</enum><header>In general</header><text>Paragraph (2) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(e)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text>
<quoted-block act-name="" id="id5FA7F2D6E1124801888F8EED5EC919B9" style="OLC">
<subparagraph id="id967CF37A47894D67A204404840D06820"><enum>(C)</enum><header>Certain relocation costs</header><text>In the case of a rehabilitation of a building to which section 280B does not apply, costs relating to the relocation of occupants, including—</text>
<clause id="id8A14296279964ED3AA78A8096ED1F770"><enum>(i)</enum><text>amounts paid to occupants,</text> </clause><clause id="id17EF73DEB7D2460BB275FE6961DBF0AF"><enum>(ii)</enum><text>amounts paid to third parties for services relating to such relocation, and</text>
</clause><clause id="id8A9898FC021F4A87B69B8B796BBF1737"><enum>(iii)</enum><text>amounts paid for temporary housing for occupants,</text> </clause><continuation-text continuation-text-level="subparagraph">shall be treated as chargeable to capital account and taken into account as rehabilitation expenditures.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id76B9A47989C34DDC90FE3DD543AEE9FE"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to expenditures paid or incurred after December 31, 2016.</text>
</subsection></section><section id="id433F6426666E4B2FA0E2453DB3A52BFB"><enum>306.</enum><header>Repeal of qualified census tract population cap</header>
<subsection id="idB5A4F4A01F1C425CBB126B59D3833B15"><enum>(a)</enum><header>In general</header><text>Clause (ii) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id16DFB182E2104FCC9280154F1D3E71B9"><enum>(1)</enum><text>by striking subclauses (II) and (III), and</text>
</paragraph><paragraph id="idBA8ADA9DA29D431AAA61FC93F9958F83"><enum>(2)</enum><text>by striking “<header-in-text level="clause" style="OLC">Qualified census tract</header-in-text>.—</text> <quoted-block display-inline="no-display-inline" id="idD50E8192A3D241D1879D1F35801C30F1" style="OLC"> <subclause id="idC303A136EFD04ECD8A1704E4B438B69A"><enum>(I)</enum><header>In general</header><text>The term</text></subclause><after-quoted-block>,</after-quoted-block></quoted-block>
<continuation-text continuation-text-level="paragraph">and inserting <quote><header-in-text level="clause" style="OLC">Qualified census tract</header-in-text>.—The term</quote>.</continuation-text></paragraph></subsection><subsection id="id20782C9017A24FA6AEFC8BFD90BD4EEE"><enum>(b)</enum><header>Technical corrections</header><text>Sections <external-xref legal-doc="usc" parsable-cite="usc/26/42">42(d)(4)(C)(i)</external-xref> and <external-xref legal-doc="usc" parsable-cite="usc/26/42">42(m)(1)(B)(ii)(III)</external-xref> of the Internal Revenue Code of 1986 are each amended by striking <quote>as defined in paragraph (5)(C)</quote> and inserting <quote>as defined in paragraph (5)(B)(ii)</quote>.</text>
</subsection><subsection id="idAB9A22B123A74B35BA8FDD8EA2E24060"><enum>(c)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to designations of qualified census tracts under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)(ii)</external-xref> of the Internal Revenue Code of 1986 after December 31, 2017.</text>
</subsection></section><section id="id6700386757AA4363B7F7577785248E7A"><enum>307.</enum><header>Determination of community revitalization plan to be made by housing credit agency</header>
<subsection id="idEECF27A231804523BEAB2C9F1F270FE9"><enum>(a)</enum><header>In general</header><text>Subclause (III) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(m)(1)(B)(ii)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting <quote>, as determined by the housing credit agency according to criteria established by such agency,</quote> after <quote>(d)(5)(C)) and</quote>.</text>
</subsection><subsection id="idDBAE586F61B54604A1C6B9CBE35B9420"><enum>(b)</enum><header>Criteria</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(m)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text>
<quoted-block act-name="" id="id23AAE54B177B44AC9DF3302CEA78D3B8" style="OLC">
<subparagraph id="idCD37914659DD42F38F3B91DE9D489771"><enum>(E)</enum><header>Criteria for determination relating to concerted community revitalization plan</header><text>For purposes of subparagraph (B)(ii)(III), the criteria which shall be established by a housing credit agency for determining whether the development of a project contributes to a concerted community development plan shall take into account any factors the agency deems appropriate, including the extent to which the proposed plan—</text>
<clause id="id050D432A00294120861DB0CAC57A0342"><enum>(i)</enum><text>is geographically specific,</text> </clause><clause id="id24D469A78404443FB5CB78EBB74743BC"><enum>(ii)</enum><text>outlines a clear plan for implementation and goals for outcomes,</text>
</clause><clause id="id8E50E103CC8B4E69ACB18A12B40363F2"><enum>(iii)</enum><text>includes a strategy for applying for or obtaining commitments of public or private investment (or both) in nonhousing infrastructure, amenities, or services, and</text>
</clause><clause id="id55F5C53DCCC543438FA1A0998E5CC3E9"><enum>(iv)</enum><text>demonstrates the need for community revitalization.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block> </subsection><subsection id="id79E3F2FD42124DBB9B143D5A7B6F4BA0"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to allocations of housing credit dollar amounts made under qualified allocation plans (as defined in <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(m)(1)(B)</external-xref> of the Internal Revenue Code of 1986) adopted after December 31, 2017.</text>
</subsection></section><section id="idB8A024E5DCB24E4584A3C71D82C7FFDF"><enum>308.</enum><header>Prohibition of local approval and contribution requirements</header>
<subsection id="id83123639E6D549C5B72478242FEADB0C"><enum>(a)</enum><header>In general</header><text>Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(m)</external-xref> of the Internal Revenue Code of 1986, as amended by section 307, is further amended—</text>
<paragraph id="idF31BF7E35E5E4C32BC2881302B371498"><enum>(1)</enum><text>by striking clause (ii) of subparagraph (A) and by redesignating clauses (iii) and (iv) thereof as clauses (ii) and (iii), and</text>
</paragraph><paragraph id="id2344E5D056494CE29BF2DD513BF14AD8"><enum>(2)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block act-name="" id="id78FD140AC9D94965B4A900E289F32214" style="OLC"> <subparagraph id="id0273C3196F7A448781A9ADC3700A6EB1"><enum>(F)</enum><header>Local approval or contribution not taken into account</header><text>The selection criteria under a qualified allocation plan shall not include consideration of—</text>
<clause id="idFB94E28D21944B32BF4785E9BC6CDD5B"><enum>(i)</enum><text>any support or opposition with respect to the project from local or elected officials, or</text> </clause><clause id="idFEA3AF8E234A4BEFAEBDF4896A1D76BA"><enum>(ii)</enum><text>any local government contribution to the project, except to the extent such contribution is taken into account as part of a broader consideration of the project's ability to leverage outside funding sources, and is not prioritized over any other source of outside funding.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idF320ABBCBCBC4FD6978E7117D3621DA2"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to allocations of housing credit dollar amounts made after December 31, 2017.</text>
</subsection></section><section id="id4514045BE71D4694960CDAE0831552CB"><enum>309.</enum><header>Increase in credit for certain projects designated to serve extremely low-income households</header>
<subsection id="id59887ECD15884F8397CED56EAE93EBE2"><enum>(a)</enum><header>In general</header><text>Paragraph (5) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)</external-xref> of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:</text>
<quoted-block act-name="" id="idDCFAB845999E4541BF347D3AE04D4FEC" style="OLC">
<subparagraph id="idEA2B4867C92E4D80A248B05BC693400C"><enum>(C)</enum><header>Increase in credit for projects designated to serve extremely low-income households</header><text>In the case of any building—</text> <clause id="id5ACBE5C788BC47B698CAF097CA06BA89"><enum>(i)</enum><text>20 percent or more of the residential units in which are designated by the taxpayer for occupancy by households the aggregate household income of which does not exceed the greater of—</text>
<subclause id="id6FC90AB80E1C45B9A55FA79C281CDCA1"><enum>(I)</enum><text>30 percent of area median gross income, or</text>
</subclause><subclause id="idBC693C75F40A46509EBDC6E761273B10"><enum>(II)</enum><text>100 percent of an amount equal to the Federal poverty line (within the meaning of section 36B(d)(3)), and</text>
</subclause></clause><clause id="id8ADA4809F4FB4754B858E7A9EA80A345"><enum>(ii)</enum><text>which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project,</text>
</clause><continuation-text continuation-text-level="subparagraph">subparagraph (B) shall not apply to the portion of such building which is comprised of such units,
and the eligible basis of such portion of the building shall be 150
percent of such basis determined without regard to this subparagraph.</continuation-text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id4A62FB86C7C64B06BC7A523F241D2264"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to buildings placed in service after December 31, 2016.</text>
</subsection></section><section id="id02165DC6E9CF4F5682FAE5D77ECA9D98"><enum>310.</enum><header>Increase in credit for bond-financed projects designated by State agency</header>
<subsection id="id39E35FA01DF24D6DA99DCBAC7225B6DF"><enum>(a)</enum><header>In general</header><text>Clause (v) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)</external-xref> of the Internal Revenue Code of 1986 is amended by striking the second sentence.</text>
</subsection><subsection id="id71273FE3B044421DAB48094D6810F72A"><enum>(b)</enum><header>Technical amendment</header><text>Clause (v) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)</external-xref> of the Internal Revenue Code of 1986, as amended by subsection (a), is further amended—</text>
<paragraph id="id6E77C32B44B14DB0B3888EBDD3EC7E27"><enum>(1)</enum><text>by striking <quote><header-in-text level="clause" style="OLC">State</header-in-text></quote> in the heading, and</text> </paragraph><paragraph id="id0DF1793C68DD4EEC837CCABE969FDBE0"><enum>(2)</enum><text>by striking <quote>State housing credit agency</quote> and inserting <quote>housing credit agency</quote>.</text>
</paragraph></subsection><subsection id="id04C10324BA534EE7AA1CECEE0D09218B"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to buildings placed in service after December 31, 2016.</text>
</subsection></section><section id="idFAD01619CB8641A4811C8E27B68F2DE7"><enum>311.</enum><header>Elimination of basis reduction for low-income housing properties receiving certain energy benefits</header>
<subsection id="id613B8F6747B846F99772CAD65FDCEE18"><enum>(a)</enum><header>New energy efficient home credit</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/45L">section 45L</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id8E851C4BD98C4538B02DCD89FBDF9392"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">adjustment</header-in-text>.—For purposes</quote> and inserting “<header-in-text level="subsection" style="OLC">adjustment</header-in-text>.—</text>
<quoted-block display-inline="no-display-inline" id="id6A33AD83492B41F589C7B3F78270581C" style="OLC">
<paragraph id="idE856616CEA3F486E8F8BACDA76876D78"><enum>(1)</enum><header>In general</header><text>For purposes</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block> </paragraph><paragraph id="idDF2581D827D247EDACDFEFE69D53602E"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block act-name="" id="id0B8F54E4094E4E28B7D06FC00893DF0E" style="OLC">
<paragraph id="id8AC34D34E39240FBB514FED42A0F781A"><enum>(2)</enum><header>Exception for affordable housing properties</header><text>Paragraph (1) shall not apply to any property with respect to which a credit is allowed under section 42.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idB1609BA8C1944BF4BA0FAC7DAE7F4B78"><enum>(b)</enum><header>Energy efficient commercial buildings deduction</header><text>Subsection (e) of <external-xref legal-doc="usc" parsable-cite="usc/26/179D">section 179D</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="idBB90EADD3C5949F5BC4DDC2EE31174CD"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">reduction</header-in-text>.—For purposes</quote> and inserting “<header-in-text level="subsection" style="OLC">reduction</header-in-text>.—</text>
<quoted-block display-inline="no-display-inline" id="id64A735696D034FA49C8540B31E76AA7F" style="OLC">
<paragraph id="id1110C778FB3C4BDD9AEE44393AE95E0F"><enum>(1)</enum><header>In general</header><text>For purposes</text></paragraph><after-quoted-block>, and</after-quoted-block></quoted-block> </paragraph><paragraph id="idE37697772DB248BB96C210580D9443BF"><enum>(2)</enum><text>by adding at the end the following new paragraph:</text>
<quoted-block act-name="" id="id528F37B2EC254822959E25F66A667CEB" style="OLC">
<paragraph id="idF60A50DE5614467ABAAB5DF62060712F"><enum>(2)</enum><header>Exception for affordable housing properties</header><text>Paragraph (1) shall not apply to any property with respect to which a credit is allowed under section 42.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="idC4A9C3AC19834A17ACCED4A6E572A603"><enum>(c)</enum><header>Energy credit</header><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/26/50">section 50(c)</external-xref> of the Internal Revenue Code of 1986 is amended—</text> <paragraph id="id86950ABAFA714924940D690054097235"><enum>(1)</enum><text>by striking <quote>and</quote> at the end of subparagraph (A),</text>
</paragraph><paragraph id="id524D8995641E40F29513B603A3F7C576"><enum>(2)</enum><text>by striking the period at the end of subparagraph (B) and inserting <quote>, and</quote>, and</text> </paragraph><paragraph id="idCD80E71DCE3C479FAD3442B5036DA6E9"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text>
<quoted-block act-name="" id="id6A13E6EE2F4F4F7B99F86F07CBCF56E6" style="OLC">
<subparagraph id="id15C4EA4EECA44D9A87D918BB1B67CFD1"><enum>(C)</enum><text>paragraph (1) shall not apply to any property with respect to which a credit is allowed under section 42.</text></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id9D30E38E35F948FF8B8DE2EB46D8EB7B"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to property placed in service after December 31, 2016.</text>
</subsection></section><section id="id9A8730ED52414C249937A8B36C5FF613"><enum>312.</enum><header>Restriction of planned foreclosures</header>
<subsection id="id0F0FD9872EFA46028E9760B7440F1301"><enum>(a)</enum><header>In general</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(h)(6)(E)(i)</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block act-name="" id="id76AF2105B3D94B129E1A7F9982F71D57" style="OLC">
<subclause id="idEFAD2B408763495A9C8D48A3BB6F425E"><enum>(I)</enum><text>on the 61st day after the taxpayer (or a successor in interest) provides notice to the housing credit agency that the building has been acquired by foreclosure (or instrument in lieu of foreclosure) and that the taxpayer intends the termination of such period, unless the housing credit agency determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such period, or</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id3CE280CDFCC84219BBB25998F1C4AE80"><enum>(b)</enum><header>Conforming amendment</header><text>The second sentence of clause (i) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(h)(6)(E)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>Subclause (II)</quote> and inserting <quote>Subclauses (I) and (II)</quote>.</text>
</subsection><subsection id="id2A5470312C794B9EBEB974A4F07A9298"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply to acquisitions by foreclosure (or instrument in lieu of foreclosure) after December 31, 2017.</text>
</subsection></section><section id="id5EFD28F0EE5A42F39100BD331F57096C"><enum>313.</enum><header>Increase of population cap for difficult development areas</header>
<subsection id="id9739C299C2634FB296A3F2397B375BAB"><enum>(a)</enum><header>In general</header><text>Subclause (II) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)(iii)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>20 percent</quote> and inserting <quote>30 percent</quote>.</text>
</subsection><subsection id="id5B9F13C1B9BD4D858EF2E10E407BFEBB"><enum>(b)</enum><header>Effective date</header><text>The amendment made by this section shall apply to designations made under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)(iii)</external-xref> of the Internal Revenue Code of 1986 after December 31, 2017.</text>
</subsection></section><enum>IV</enum><header>Reforms relating to Native American assistance</header>
<section id="id889CDAD7865546CCA97973B7C63874C8"><enum>401.</enum><header>Selection criteria under qualified allocation plans</header>
<subsection id="id481220A932304149AF9933A670BEB608"><enum>(a)</enum><header>In general</header><text>Subparagraph (C) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(m)(1)</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>and</quote> at the end of clause (ix), by striking the period at the end of clause (x) and inserting <quote>, and</quote>, and by adding at the end the following new clause:</text> <quoted-block act-name="" id="id0F7AAB821EC946AE8C4F24DF1F2E3CEF" style="OLC"> <clause id="id35F9123EE20D4086B8F7F0EB4592BD5F"><enum>(xi)</enum><text>the affordable housing needs of individuals in the State who are members of Indian tribes (as defined in section 45A(c)(6)).</text></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id505F9B61A3AE40BB96BAAE7294757AC2"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply to allocations of credits under <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42</external-xref> of the Internal Revenue Code of 1986 made after December 31, 2017.</text>
</subsection></section><section id="id60AE639ED7044B3597F7E3CFF46168AE"><enum>402.</enum><header>Inclusion of Indian areas as difficult development areas for purposes of certain buildings</header>
<subsection id="id068B1C47C34F4EC2BEFF92467DF090D6"><enum>(a)</enum><header>In general</header><text>Subclause (I) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)(iii)</external-xref> of the Internal Revenue Code of 1986 is amended by inserting before the period the following: <quote>, and any Indian area</quote>.</text>
</subsection><subsection id="idBB81EF0BD91A445A913AAFFC57A93C35"><enum>(b)</enum><header>Indian area</header><text>Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)</external-xref> of the Internal Revenue Code of 1986 is amended by redesignating subclause (II) as subclause (III) and by inserting after subclause (I) the following new subclause:</text>
<quoted-block act-name="" id="idAD1A742DFF95432B9583EBE705CD8B07" style="OLC">
<subclause id="id9D93ED04FE934223816E6AA14BD01ADC"><enum>(II)</enum><header>Indian area</header><text>For purposes of subclause (I), the term <term>Indian area</term> means any Indian area (as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(11)</external-xref>).</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id9A820D16B1864764A1D8FADFC0EDCA0D"><enum>(c)</enum><header>Eligible buildings</header><text>Clause (iii) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42(d)(5)(B)</external-xref> of the Internal Revenue Code of 1986, as amended by subsection (b), is amended by adding at the end the following new subclause:</text>
<quoted-block act-name="" id="id7AE6667CC9A340EC9E14219F39C41C92" style="OLC">
<subclause id="id24968EB14A834C75BCFA2ED7A0365441"><enum>(IV)</enum><header>Special rule for buildings in Indian areas</header><text>In the case of an area which is a difficult development area solely because it is an Indian area, a building shall not be treated as located in such area unless such building is assisted or financed under the Native American Housing Assistance and Self Determination Act of 1996 (<external-xref legal-doc="usc" parsable-cite="usc/25/4101">25 U.S.C. 4101</external-xref> et seq.) or the project sponsor is an Indian tribe (as defined in section 45A(c)(6)), a tribally designated housing entity (as defined in section 4(22) of such Act (<external-xref legal-doc="usc" parsable-cite="usc/25/4103">25 U.S.C. 4103(22)</external-xref>)), or wholly owned or controlled by such an Indian tribe or tribally designated housing entity.</text></subclause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id41A884DBBBF345BA985C824068FB85B2"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to buildings placed in service after December 31, 2017.</text>
</subsection></section><enum>V</enum><header>Affordable housing tax credit</header>
<section id="id7AFAEB5A875C4C069B868D0714664322"><enum>501.</enum><header>Affordable housing tax credit</header>
<subsection id="id1286D892F5874866AF75B906F5633DA3"><enum>(a)</enum><header>In general</header><text>The heading of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote><header-in-text level="section" style="OLC">Low-income</header-in-text></quote> and inserting <quote><header-in-text level="section" style="OLC">Affordable</header-in-text></quote>.</text> </subsection><subsection id="id668BD377DC224EDFBBBB684B5FC0C066"><enum>(b)</enum><header>Conforming amendments</header> <paragraph id="id98881D16051540C4A25AE0861A1AE0F9"><enum>(1)</enum><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/26/42">section 42</external-xref> of the Internal Revenue Code of 1986 is amended by striking <quote>low-income</quote> and inserting <quote>affordable</quote>.</text>
</paragraph><paragraph id="id8DED00A0579E4BE6B7D9E1E219F86479"><enum>(2)</enum><text>Paragraph (5) of section 38(b) of such Code is amended by striking <quote>low-income</quote> and inserting <quote>affordable</quote>.</text> </paragraph><paragraph id="idB46EA999F18D4F51AB077D5A591F02C5"><enum>(3)</enum><text>The heading of subparagraph (D) of section 469(i)(3) of such Code is amended by striking <quote><header-in-text level="subparagraph" style="OLC">low-income</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">affordable</header-in-text></quote>.</text>
</paragraph><paragraph id="idBAF554B08468455CB00DCE02DE2C738A"><enum>(4)</enum><text>The heading of subparagraph (B) of section 469(i)(6) of such Code is amended by striking <quote><header-in-text level="subparagraph" style="OLC">low-income</header-in-text></quote> and inserting <quote><header-in-text level="subparagraph" style="OLC">affordable</header-in-text></quote>.</text> </paragraph><paragraph id="id2C250C28B58949F2A659D6D2D3408C0A"><enum>(5)</enum><text>Paragraph (7) of section 772(a) of such Code is amended by striking <quote>low-income</quote> and inserting <quote>affordable</quote>.</text>
</paragraph><paragraph id="idA23351DD7DD84DF4AA937D00DA9D8390"><enum>(6)</enum><text>Paragraph (5) of section 772(d) of such Code is amended by striking <quote>low-income</quote> and inserting <quote>affordable</quote>.</text> </paragraph></subsection><subsection id="idFC283307E00543EE8EFBF1A3A70AC97E"><enum>(c)</enum><header>Clerical amendment</header><text>The item relating to section 42 in the table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idD6808218A421479DB527B27B02B4992C" style="OLC"><toc><toc-entry bold="off" level="section">Sec. 42. Affordable housing credit.</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection></section>