[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6205 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 6205

 To amend the Internal Revenue Code of 1986 to provide an ex-offender 
 low-income housing credit to encourage the provision of housing, job 
   training, and other essential services to ex-offenders through a 
 structured living environment designed to assist the ex-offenders in 
                       becoming self-sufficient.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 27, 2006

Mr. Davis of Illinois 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 provide an ex-offender 
 low-income housing credit to encourage the provision of housing, job 
   training, and other essential services to ex-offenders through a 
 structured living environment designed to assist the ex-offenders in 
                       becoming self-sufficient.

    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 ``Public Safety Ex-Offender Self-
Sufficiency Act of 2006''.

SEC. 2. TEMPORARY EX-OFFENDER LOW-INCOME HOUSING CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45N. EX-OFFENDER LOW-INCOME HOUSING CREDIT.

    ``(a) In General.--For purposes of section 38, the amount of the 
ex-offender low-income housing credit determined under this section for 
any taxable year in the credit period shall be an amount equal to--
            ``(1) the applicable percentage of
            ``(2) the qualified basis of each qualified ex-offender 
        residential building.
    ``(b) Applicable Percentage.--In the case of any qualified ex-
offender residential building, the term `applicable percentage' has the 
meaning given such term in section 42(b)(2) with respect to qualified 
low-income buildings, except that, for the purposes of this subsection, 
the percentages prescribed by the Secretary under section 42(b)(2)(B) 
shall yield amounts of credit which have a present value equal to 70 
percent of the qualified basis of any qualified ex-offender residential 
building.
    ``(c) Qualified Basis.--
            ``(1) In general.--For purposes of subsection (a) and 
        except as otherwise provided in this subsection, the term 
        `qualified basis' means the adjusted basis of a qualified ex-
        offender residential building as of the close of the 1st 
        taxable year of the credit period.
            ``(2) Qualified basis to include portion of building used 
        to provide ex-offender support services.--The qualified basis 
        of any qualified ex-offender residential building for any 
        taxable year shall be increased by the lesser of--
                    ``(A) so much of the qualified basis of such 
                building as is used throughout the year to provide ex-
                offender support services, or
                    ``(B) 20 percent of the qualified basis of such 
                building (determined without regard to this paragraph).
            ``(3) Special rules.--Rules similar to the rules of 
        paragraphs (4), (5) (other than subparagraph (A) thereof), and 
        (7) of section 42(d) shall apply in determining the adjusted 
        basis of any qualified ex-offender residential building.
    ``(d) Rehabilitation Expenditures.--Rules similar to the rules of 
section 42(e) shall apply in determining the treatment of 
rehabilitation expenditures paid or incurred by the taxpayer with 
respect to a qualified ex-offender residential building.
    ``(e) Credit Period.--For purposes of this section, rules similar 
to the rules of section 42(f) shall apply in determining the credit 
period with respect to any qualified ex-offender residential building.
    ``(f) Qualified Ex-Offender Residential Building.--For purposes of 
this section, the term `qualified ex-offender residential building' 
means any building which, at all times during the compliance period, 
meets the following requirements:
            ``(1) Ex-offender residential units.--
                    ``(A) In general.--Each residential unit in such 
                building shall be made available for occupancy to not 
                more than 1 ex-offender.
                    ``(B) Residency requirements.--Such ex-offender 
                must--
                            ``(i) meet the residency requirements under 
                        subsection (g);
                            ``(ii) have failed to meet such 
                        requirements for fewer than 14 days; or
                            ``(iii) be in the process of being evicted 
                        from such building for failing to meet such 
                        requirements.
                    ``(C) Flexibility.--A building shall not be 
                determined to fail to satisfy the requirements of this 
                paragraph solely because--
                            ``(i) some or all of the residential units 
                        in such building are single room occupancy (as 
                        defined in section (8)(n) of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437f(n))), or
                            ``(ii) any unit made available to an ex-
                        offender is also made available to one or more 
                        members of the ex-offender's family (as 
                        determined by the taxpayer).
            ``(2) Self-sufficiency centers for ex-offenders.--The 
        building shall include a self-sufficiency center for ex-
        offenders that--
                    ``(A) is specifically designed to accommodate, and 
                reserved for, the provision of ex-offender support 
                services to residents of the facility and other ex-
                offenders;
                    ``(B) is made available for rental by providers of 
                such services at a rate determined by the owner of the 
                facility; and
                    ``(C) provides an array of such services sufficient 
                to meet a significant portion of the needs of ex-
                offenders for ex-offender support services.
            ``(3) Rent limitations.--The portion of the monthly rent 
        payable by the occupant of each unit in the building may not 
        exceed 30 percent of the adjusted monthly income (as such term 
        is defined in section 3(b) of the United States Housing Act of 
        1937 (42 U.S.C. 1437a(b)) of the occupant.
    ``(g) Residency Requirements.--
            ``(1) In general.--An ex-offender meets the residency 
        requirements for a qualified ex-offender residential building 
        if such ex-offender--
                    ``(A) has a low income;
                    ``(B) is participating in an ex-offender support 
                services program as described in paragraph (3)(B);
                    ``(C) has not been prohibited from residency under 
                paragraph (4); and
                    ``(D) commences occupancy of a unit in a qualified 
                ex-offender residential building on a date that is not 
                later than--
                            ``(i) in the case of an ex-offender who has 
                        been discharged from prison, jail, a half-way 
                        house, or any other correctional facility, 12 
                        months after such discharge; or
                            ``(ii) in the case of any ex-offender whose 
                        sentence did not include confinement to a 
                        correctional facility, 12 months after the date 
                        of the ex-offender's conviction.
            ``(2) Low-income.--For purposes of this section, an ex-
        offender is considered to have a low income if, at the 
        commencement of the ex-offender's occupancy of a residential 
        unit, the income (if any) of the ex-offender does not exceed 60 
        percent of area median gross income (as determined consistent 
        with section 8 of the United States Housing Act of 1937).
            ``(3) Participation in ex-offender support services 
        program.--
                    ``(A) Program.--For purposes of this section, an 
                ex-offender support services program is a program for 
                the provision of specific ex-offender support services 
                for an ex-offender that--
                            ``(i) is created and managed by a 
                        coordinating individual or entity having 
                        education, training, and experience with ex-
                        offenders and their support services needs;
                            ``(ii) is specifically designed to meet the 
                        needs of the particular ex-offender for ex-
                        offender support services;
                            ``(iii) sets forth a specific duration over 
                        which the ex-offender support services are to 
                        be provided and goals by which to assess the 
                        progress of the ex-offender; and
                            ``(iv) provides for continual oversight to 
                        monitor the progress and needs of the ex-
                        offender and to ensure that the ex-offender is 
                        being provided the appropriate ex-offender 
                        support services and is complying with the 
                        requirements of the program.
                    ``(B) Participation.--For purposes of this section, 
                an ex-offender is considered to be participating in an 
                ex-offender support services program if the ex-
                offender--
                            ``(i) has entered into a written agreement 
                        with the coordinator for the program that--
                                    ``(I) sets forth the ex-offender 
                                support services that are appropriate 
                                for, and will be made available to, the 
                                ex-offender and the duration of the 
                                program for the ex-offender; and
                                    ``(II) provides that the ex-
                                offender's continued attendance at 
                                scheduled program meetings and events 
                                and obtaining of program services are a 
                                condition of the ex-offender's 
                                continued residency in the facility; 
                                and
                            ``(ii) is not in default with regard to the 
                        ex-offender's obligations under such agreement.
                    ``(C) Ex-offender support services.--For purposes 
                of this section, the term `ex-offender support 
                services' means services that assist ex-offenders to 
                develop skills necessary for life outside of the 
                environment of a correctional institution, and 
                includes--
                            ``(i) job training;
                            ``(ii) employment counseling and placement;
                            ``(iii) entrepreneurial training;
                            ``(iv) financial management training;
                            ``(v) homeownership and rental counseling;
                            ``(vi) drug and alcohol abuse counseling;
                            ``(vii) self-esteem and peer development 
                        assistance;
                            ``(viii) anger management counseling;
                            ``(ix) health care services, including 
                        mental health services and behavioral 
                        counseling;
                            ``(x) probation services;
                            ``(xi) family and crisis management 
                        counseling; and
                            ``(xii) general educational assistance and 
                        counseling.
            ``(4) Limitation on term of residency.--An ex-offender may 
        not reside in an ex-offender residential facility at any time 
        after the expiration of the 2-year period beginning upon the 
        commencement of the ex-offender's occupancy in the ex-offender 
        residential facility.
    ``(h) Ex-Offender.--For purposes of this section, the term `ex-
offender' means any individual who has been convicted of a crime under 
State or Federal law which is punishable by imprisonment for a maximum 
term of 6 months or longer.
    ``(i) Allocation and Determination of Credit.--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, rules similar to the rules of section 42(h) (other 
        than subparagraphs (E) and (F) of paragraph (1) thereof) shall 
        apply with respect to allocating and determining any credit 
        under this section.
            ``(2) State housing credit ceiling.--For purposes of this 
        section:
                    ``(A) In general.--The State housing credit ceiling 
                shall be calculated by substituting the amount 
                determined under section 42(h)(3)(C)(ii) with the State 
                allocation.
                    ``(B) State allocation.--
                            ``(i) Competitive process.--The State 
                        allocation for any State shall be determined by 
                        the Secretary, utilizing a competitive 
                        application process.
                            ``(ii) Basis for competition.--In 
                        determining the State allocation for any State, 
                        the Secretary shall consider the following:
                                    ``(I) Need, as determined by the 
                                ratio between the reported number of 
                                sentenced prisoners released from State 
                                or Federal jurisdiction in the 
                                applicant State during the most recent 
                                year for which information is 
                                available, and the total population of 
                                the applicant State.
                                    ``(II) The commitment of Federal 
                                and other funds within the applicant 
                                State for operating costs and ex-
                                offender support services in projects 
                                that are to be funded by the State 
                                temporary ex-offender low-income 
                                housing credit.
                                    ``(III) The applicant's plan to 
                                collect available information about the 
                                success of the program with respect to 
                                increased housing stability and lack of 
                                additional incarceration of ex-offeder 
                                participants.
                                    ``(IV) The applicant's 
                                organizational capacity for the 
                                successful development or operation of 
                                qualified ex-offender residential 
                                buildings.
                                    ``(V) The goal of making 
                                allocations to the largest feasible 
                                number of States.
                            ``(iii) Aggregate amount.--The aggregate 
                        amount of State allocations for any year shall 
                        be $85,000,000.
                    ``(C) Building allocations.--The Secretary may 
                allocate a housing credit dollar amount to any 
                building. In making such allocations, the Secretary 
                shall utilize a competitive application process and 
                shall consider the factors described in subparagraph 
                (B)(ii). Any allocation made under this subparagraph 
                shall be treated for purposes of this subsection as 
                part of the State allocation for the State in which 
                such building is located.
                    ``(D) Unused housing credit carryovers.--
                            ``(i) In general.--The State housing credit 
                        ceiling shall be calculated by substituting the 
                        amount determined under section 42(h)(3)(C)(iv) 
                        with the State carryover allocation.
                            ``(ii) State carryover allocation.--The 
                        State carryover allocation for any State shall 
                        be determined by the Secretary in a manner 
                        similar to the manner in which the State 
                        allocation is determined under subparagraph 
                        (B). The aggregate amount of State carryover 
                        allocations for any year shall be equal to the 
                        aggregate unused housing credit carryovers 
                        (within the meaning of section 42(h)(3)(D)) of 
                        all States for the preceding calendar year.
            ``(3) Required involvement of qualified non-profit 
        organizations.--For purposes of this section, section 
        42(h)(5)(A) shall be applied by substituting `75' for `90'.
    ``(j) Recapture of Credit.--Rules similar to the rules of 
subsections (i)(1) and (j) of section 42 shall apply for purposes of 
this section.
    ``(k) Application of At-Risk Rules.--Rules similar to the rules of 
section 42(k) shall apply for purposes of this section.
    ``(l) Certification and Other Reports to Secretary.--Subject to 
such regulations as the Secretary may prescribe, rules similar to the 
rules of section 42(l) shall apply for purposes of this section.
    ``(m) Responsibilities of the Secretary and Housing Credit 
Agencies.--Rules similar to the rules of subsections (m) and (n) of 
section 42 shall apply for purposes of this section.''.
    (b) Inclusion as Current Year Business Credit.--Section 38(b) of 
the Internal Revenue Code of 1986 is amended by striking ``and'' at the 
end of paragraph (29), by striking the period at the end of paragraph 
(30) and inserting ``, and'', and by adding at the end the following 
new paragraph:
            ``(31) the ex-offender low-income housing credit under 
        section 45N(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45N. Ex-offender low-income housing credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property placed in service during taxable years beginning 
after the date of the enactment of this Act.
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