1.
(a)This Act may be cited
as the Affordable Housing Investment
Act of 2008
.
(b)Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
(c)The table of contents for this Act is as follows:
Sec. 1. Short title, etc.
TITLE I—Facilitate Development of Housing Credit
Property
Sec. 101. Renaming the low-income housing credit as the
affordable housing credit.
Sec. 102. Modification of rules for determining applicable
percentage.
Sec. 103. Increase in credit for buildings in State designated
areas.
Sec. 104. Modification of scattered site rule.
Sec. 105. Treatment of rural projects.
Sec. 106. Expansion of allowable basis for community service
facilities.
TITLE II—Improve Coordination with Other Federal Housing
Programs
Sec. 201. Affordable housing credits allowed for section 8
moderate rehabilitation developments.
Sec. 202. Modification to low-income housing credit rules for
reduction of eligible basis by grants received.
TITLE III—Facilitate Private Investment Capital to Increase the
Efficiency of Affordable Housing Investment
Sec. 301. Repeal of recapture bond rule.
Sec. 302. Affordable housing credit allowed against alternative
minimum tax.
Sec. 303. Interest on qualified mortgage bonds, qualified
veterans’ mortgage bonds, and qualified residential rental project exempt
facility bonds exempt from alternative minimum tax.
TITLE IV—Help Preserve Existing Affordable Housing
Sec. 401. Repeal of 10-year rule for acquisition housing
credits.
Sec. 402. Modification of related person rule for affordable
housing credit.
TITLE V—Simplify Administration of the Housing Credit
Program
Sec. 501. Elimination of certain annual recertifications of
tenant incomes.
TITLE VI—Conform Multifamily Housing Bond Rules to Housing Credit
Rules
Sec. 601. Coordination of certain rules applicable to
affordable housing credit and qualified residential rental project exempt
facility bonds.
TITLE VII—Improve the Mortgage Revenue Bond Program
Sec. 701. Special rule for use of mortgage bonds for disaster
victims, single parents, and homemakers.
Sec. 702. Repeal of required use of certain principal
repayments on qualified mortgage issues to redeem bonds.
TITLE VIII—Effective Date
Sec. 801. Effective date.
<enum>I</enum><header>Facilitate
Development of Housing Credit Property</header>
<section id="H18BE765FB54A40D58560BD048751E792"><enum>101.</enum><header>Renaming the
low-income housing credit as the affordable housing credit</header>
<subsection id="H885EC7072DE741AA9873C13C6C357B62"><enum>(a)</enum><header>In
general</header><text>The heading of section 42 (relating to low-income housing
credit) 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="H2CD9D12155004AB3A782F34D08A0A920"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HD1E771FDAB02402F81FB288700C0BFB3"><enum>(1)</enum><text>Sections 38(b)(5),
42(a), 772(a)(7), and 772(d)(5) are each amended by striking
<quote>low-income</quote> and inserting <quote>affordable</quote>.</text>
</paragraph><paragraph id="HAA9987D515224176BE00B513704D4276"><enum>(2)</enum><text>The headings of
subparagraphs (3)(D) and (6)(B) of section 469(i) are each 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="HBB8687495CED414998C34E01F2B1C6CE"><enum>(3)</enum><text>The table of
sections for subpart D of part IV of subchapter A of chapter 1 is amended by
striking the item relating to section 42 and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="HD617263F59BB462F91B9982440005D5D" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 42. Affordable housing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id7A09361D4998437FAC3F3961C7891AE5"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall take effect on the
date of the enactment of this Act.</text>
</subsection></section><section id="H8585780156C7462BB645005F50CA01FB"><enum>102.</enum><header>Modification of
rules for determining applicable percentage</header>
<subsection id="HE282AE832923458AAA98C72D0650C600"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 42 is amended—</text>
<paragraph id="idE7ABA7368F3F40F78280A0D2F2398377"><enum>(1)</enum><text>by striking the
semicolon and all that follows to the period in the heading,</text>
</paragraph><paragraph id="idA46BBCB3B8EF425DB2DF7EA0B90CDB83"><enum>(2)</enum><text>by striking
paragraph (1) and inserting the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HFC0E9F2734FD4422840346EB227B8F74" style="OLC">
<paragraph id="HAC8E7B8EBFAA4364BEBC2119ED40023"><enum>(1)</enum><header>In
general</header><text>For purposes of this section, the term <term>applicable
percentage</term> means the greater of the alternative applicable percentage
determined under paragraph (2) or—</text>
<subparagraph id="H4205F261668840BCBE0995BDAE6700A"><enum>(A)</enum><text>9 percent in the
case of any building to which subparagraph (B) does not apply, and</text>
</subparagraph><subparagraph id="H6C4A8B81BCF04DA3BE937BC973F34664"><enum>(B)</enum><text>4 percent in the
case of—</text>
<clause id="H3B5D724FD6614E2D9FCA00E00BCC2CB"><enum>(i)</enum><text>any
existing building, and</text>
</clause><clause id="H6E89DF47C279483596607CCC4825C956"><enum>(ii)</enum><text>any new building
if, at any time during the taxable year or any prior taxable year, there is or
was outstanding any obligation—</text>
<subclause id="H7365C3BBC52240AAAFB029E7ABA34000"><enum>(I)</enum><text>not taken into
account under section 146,</text>
</subclause><subclause id="H7B6132E526094EBBA688D3863F4529F5"><enum>(II)</enum><text>which is exempt
from tax under section 103, and</text>
</subclause><subclause id="HEF73600D74254AA9874363B0C5B6994E"><enum>(III)</enum><text>the proceeds of
which are or were used (directly or indirectly) with respect to such building
or the operation thereof.</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>,
</after-quoted-block></quoted-block>
</paragraph><paragraph id="idF6D9EA16E6764B8D8F4BB95004BF08D5"><enum>(3)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">Buildings placed in
service after 1987</header-in-text></quote> in the heading for paragraph (2)
and inserting <quote><header-in-text level="paragraph" style="OLC">Alternative
applicable percentage</header-in-text></quote>, and</text>
</paragraph><paragraph id="id0F06F64F4530402598F9E260A17DACC3"><enum>(4)</enum><text>by striking
<quote>In the case of any qualified low-income building placed in service by
the taxpayer after 1987, the term <term>applicable percentage</term>
means</quote> in paragraph (2)(A) and inserting <quote>For purposes of
paragraph (1), the term <term>alternative applicable percentage</term>
means</quote>.</text>
</paragraph></subsection><subsection id="H6011E8FBC02449C3B4D2E811F86394EA"><enum>(b)</enum><header>Modification of
rules related to Federal subsidies</header>
<paragraph id="id6239E1ACA2C54806A38E00A1B545D8A3"><enum>(1)</enum><header>In
general</header><text>Paragraph (2) of section 42(i) (relating to determination
of whether building is Federally subsidized) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H541F075D65AD41148EAB294513ADB233" style="OLC">
<paragraph id="idE59AF8F709F64B5599895C5540B70915"><enum>(2)</enum><header>Exceptions for
certain new buildings otherwise subject to 4 percent credit limitation</header>
<subparagraph id="id20A3F5BABBE1446CB086314DCA054E4E"><enum>(A)</enum><header>Election to
reduce eligible basis by proceeds of obligations</header><text display-inline="yes-display-inline">A tax-exempt obligation shall not be taken
into account under subsection (b)(1)(B)(ii) if the taxpayer elects to exclude
the proceeds of such obligation from the eligible basis of the building for
purposes of subsection (d).</text>
</subparagraph><subparagraph id="id5E053DC68E1449F09F0FE7B8E5EE43F7"><enum>(B)</enum><header>Special rule
for subsidized construction financing</header><text display-inline="yes-display-inline">A tax-exempt obligation used to provide
construction financing for any building shall not be taken into account under
subsection (b)(1)(B)(ii) if—</text>
<clause id="id05147542DF334BC6B90EC5C484E5BF9C"><enum>(i)</enum><text>such obligation
(when issued) identified the building for which the proceeds of such obligation
would be used, and</text>
</clause><clause id="id6B104CF01A06434FA17A326FDAEAB148"><enum>(ii)</enum><text>such obligation
is redeemed before such building is placed in
service.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="idAD918BBAF1544B7EBA4DD8CC85736369"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 1400N(c)(6) is amended by striking
<quote>December 31, 2010</quote> and inserting <quote>the date of the enactment
of the <short-title>Affordable Housing Investment Act of
2008</short-title></quote>.</text>
</paragraph></subsection></section><section id="HE31100E278DE4977B6249BCEBBF02D8D"><enum>103.</enum><header>Increase in
credit for buildings in State designated areas</header>
<subsection id="H4B51A616B8884A92B3E94E93D78B24E2"><enum>(a)</enum><header>In
general</header><text>Clause (i) of section 42(d)(5)(C) (relating to increase
in credit for buildings in high cost areas) is amended by striking <quote>or
difficult development area</quote> and inserting <quote>, difficult development
area, or State designated project</quote>.</text>
</subsection><subsection id="H519B3EE9BC964120A67B17ED2864A7E8"><enum>(b)</enum><header>State designated
project</header><text>Subparagraph (C) of section 42(d)(5) is amended by adding
at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H7ABFF0102CCF47DC9FFB3141D9B74F95" style="OLC">
<clause id="HD8B05452611E4807A8FDD0338B7027B9"><enum>(v)</enum><header>State designated
project</header><text>For purposes of this subparagraph, the term <quote>State
designated project</quote> means any project published as part of a State's
qualified allocation plan (as defined in subsection (m)(1)(B)) and designated
by the housing credit agency as meeting such criteria for designation under
this clause as the State in which such project is located may specify. The
rules of clauses (ii)(II) and (iii)(II) shall not apply for purposes
designations made under this
clause.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H605E78C2B81641E1A1EDE227B0FC493B"><enum>(c)</enum><header>Conforming
amendment</header><text>The heading of subparagraph (C) of section 42(d)(5) is
amended by striking <quote><header-in-text level="subparagraph" style="OLC">buildings in high cost areas</header-in-text></quote> and inserting
<quote><header-in-text level="subparagraph" style="OLC">certain
buildings</header-in-text></quote>.</text>
</subsection></section><section id="HBF534AC5B1474477981C1227493E3561"><enum>104.</enum><header>Modification of
scattered site rule</header><text display-inline="no-display-inline">Paragraph
(7) of section 42(g) (relating to scattered site projects) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="H11921B04259247598100C33EA7E56CF1" style="OLC">
<paragraph id="HA420AD4879A14D399B3DD7F754B46FE2"><enum>(7)</enum><header>Scattered site
projects</header><text>Buildings which would (but for their lack of proximity)
be treated as a project for purposes of this section shall be so treated if the
rent-restricted (within the meaning of paragraph (2)) residential units of such
project are distributed among such buildings in proportion to the number of
residential units in each
building.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="id3B29AF3C31D441FA8E2C26D71F1CBC70"><enum>105.</enum><header>Treatment of
rural projects</header><text display-inline="no-display-inline">Section 42(i)
(relating to definitions and special rules) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC3BA93F4A9BE4D5EA937FE2C30D596FA" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idA637068A9EE74EA2A46F205EFD13B522"><enum>(8)</enum><header>Treatment of
rural projects</header><text>For purposes of this section, in the case of any
project for residential rental property located in a rural area (as defined in
section 520 of the Housing Act of 1949), any income limitation measured by
reference to area median gross income shall be measured by reference to the
greater of area median gross income or national non-metropolitan median
income.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idE164478D670A4A1CBF9878C5362CBF70"><enum>106.</enum><header>Expansion of
allowable basis for community service facilities</header><text display-inline="no-display-inline">Section 42(d)(4)(C) (relating to inclusion
of basis of property used to provide services for certain nontenants) is
amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id2AA5C4C0C3F54385A7C86EEB5DCEA4CC"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>10 percent of the
eligible basis</quote> in clause (ii)and inserting <quote>20 percent of the
first $5,000,000 in eligible basis plus 10 percent of the remaining eligible
basis</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id88986FA97C094F089CF58F126510BAE6"><enum>(2)</enum><text>by adding at the
end the following new flush sentences:</text>
<quoted-block display-inline="no-display-inline" id="id3C8206370A554C61A1CD417FF9A93AB9" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subparagraph">For
each calendar year beginning after 2008, the dollar amount in clause (ii) shall
be increased by an amount equal to such dollar amount multiplied by the
cost-of-living adjustment determined under section 1(f)(3), determined by
substituting <quote>calendar year 2007</quote> for <quote>calendar year
1992</quote> in subparagraph (B) thereof. If any amount adjusted under the
preceding sentence is not a multiple of $100,000, such amount shall be rounded
to the next lowest multiple of
$100,000.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><enum>II</enum><header>Improve
Coordination with Other Federal Housing Programs</header>
<section id="id22972BD6BE624D59BAABAF555FF1A6AB"><enum>201.</enum><header>Affordable
housing credits allowed for section 8 moderate rehabilitation
developments</header><text display-inline="no-display-inline">Paragraph (2) of
section 42(c) (relating to qualified low-income building) is amended by
striking the last sentence.</text>
</section><section id="ID560c17243adc444ca15c7a39a9a8afdc"><enum>202.</enum><header>Modification
to low-income housing credit rules for reduction of eligible basis by grants
received</header>
<subsection id="ID76c7d9874944417db23c8644dec61f4e"><enum>(a)</enum><header>In
general</header><text>The Secretary of the Treasury shall modify Treasury
Regulations section 1.42–16(b) to provide that none of the following shall be
considered a grant made with respect to a building or its operation for
purposes of section 42(d)(5)(A) of the Internal Revenue Code of 1986:</text>
<paragraph id="IDa09c29c3d7914d639c03e20f3d114f3b"><enum>(1)</enum><text>Rental assistance
under section 521 of the Housing Act of 1949 (42 U.S.C. 1490a).</text>
</paragraph><paragraph id="ID03415da4343c421b874d4ce9e64e213a"><enum>(2)</enum><text>Assistance under
section 538(f)(5) of the Housing Act of 1949 (42 U.S.C. 1490p–2(f)(5)).</text>
</paragraph><paragraph id="IDa10f02c3ff8b439881f970a0fb53b945"><enum>(3)</enum><text>Interest
reduction payments under section 236 of the National Housing Act (12 U.S.C.
1715z–1).</text>
</paragraph><paragraph id="IDc40305d7ecfb443d9cf2e73a27e1ad98"><enum>(4)</enum><text>Rental assistance
under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q).</text>
</paragraph><paragraph id="ID8722fa07808940a89c656a7fd8419168"><enum>(5)</enum><text>Rental assistance
under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 8013).</text>
</paragraph><paragraph id="ID9eeabe5f3e0444cda833feb4fa912949"><enum>(6)</enum><text>Modernization,
operating, and rental assistance pursuant to section 202 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4132).</text>
</paragraph><paragraph id="ID9d77e5b8841a48faa099db3a9412819b"><enum>(7)</enum><text>Assistance under
title IV of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11361 et
seq.).</text>
</paragraph><paragraph id="ID42cbc363d4654a02834598709d19fd60"><enum>(8)</enum><text>Tenant-based
rental assistance under section 212 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12742).</text>
</paragraph><paragraph id="ID91d0cfd0d6144f039ca5b7b5d6195ff2"><enum>(9)</enum><text>Assistance under
the AIDS Housing Opportunity Act (42 U.S.C. 12901 et seq.).</text>
</paragraph><paragraph id="ID545347a4fcdb44d5bce22f6429d9f62b"><enum>(10)</enum><text>Per diem
payments under section 2012 of title 38, United States Code.</text>
</paragraph><paragraph id="ID5c335306b9a24218b8266695a24a2f9c"><enum>(11)</enum><text>Rent supplements
under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C.
1701s).</text>
</paragraph><paragraph id="IDce95b23aea694279910287fc92489f20"><enum>(12)</enum><text>Assistance under
section 542 of the Housing Act of 1949 (42 U.S.C. 1490r).</text>
</paragraph><paragraph id="IDc5314d5301774c5e8f08eb900d33adea"><enum>(13)</enum><text>Any other
ongoing payment used to enable the property to be rented to low-income
tenants.</text>
</paragraph></subsection><subsection id="ID5d057a29694044dab5e802c7c6ded6c8"><enum>(b)</enum><header>Effective
date</header><text>The modifications required by this section shall take effect
on the date of the enactment of this Act.</text>
</subsection><subsection id="id075FEBC93AC84BD9927F3DCE15E59560"><enum>(c)</enum><header>No
inference</header><text>Nothing contained in subsection (a) may be construed to
create any inference with respect to the consideration of any program specified
under subsection (a) as a grant made with respect to a building or its
operation for purposes of section 42(d)(5)(A) of the Internal Revenue Code of
1986 as in effect on the day before such date of enactment.</text>
</subsection></section><enum>III</enum><header>Facilitate
Private Investment Capital to Increase the Efficiency of Affordable Housing
Investment</header>
<section id="idB71F25CF184E4A819E201718A754D114"><enum>301.</enum><header>Repeal of
recapture bond rule</header>
<subsection id="HF0AC6E15111643E891D8C1B8F000790"><enum>(a)</enum><header>In
general</header><text>Paragraph (6) of section 42(j) (relating to recapture of
credit) is amended to read as follows:</text>
<quoted-block id="H1C6BC77440BB4E26977FC0E59E01226B">
<paragraph id="HC705A4C5D55744B29E66408F1208B1FC"><enum>(6)</enum><header>No recapture on
disposition of building (or interest therein) reasonably expected to continue
as a qualified low-income building</header>
<subparagraph id="H43DF1853BA144C14BFAB37AF867CBF78"><enum>(A)</enum><header>In
general</header><text>In the case of a disposition of a building or an interest
therein, the taxpayer shall be discharged from liability for any additional tax
under this subsection by reason of such disposition if it is reasonably
expected that such building will continue to be operated as a qualified
low-income building for the remaining compliance period with respect to such
building.</text>
</subparagraph><subparagraph id="HFC01852EC6494A420087D5F4403C8CCE"><enum>(B)</enum><header>Statute of
limitations</header>
<clause id="H48A0B16C47F4476A834F191C89081B56"><enum>(i)</enum><header>Extension of
period</header><text>The period for assessing a deficiency attributable to the
application of subparagraph (A) with respect to a building (or interest
therein) during the compliance period with respect to such building shall not
expire before the expiration of 3 years after the end of such compliance
period.</text>
</clause><clause id="HFA380D4F2BF743899130D56FAA07D6E"><enum>(ii)</enum><header>Assessment</header><text>Such
deficiency may be assessed before the expiration of the 3-year period referred
to in clause (i) <italic></italic>notwithstanding the provisions of any other
law or rule of law which would otherwise prevent such
assessment.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD2FD958411D64AF9A0007200AEB320F7"><enum>(b)</enum><header>Information
reporting</header>
<paragraph id="HB1C01D4287714B1BA000CFDEA745FFB7"><enum>(1)</enum><header>In
general</header><text>Subpart B of part III of subchapter A of chapter 61
(relating to information concerning transactions with other persons) is amended
by inserting after section 6050V the following new section:</text>
<quoted-block id="HBB58236C900642D6A543BB0008C2C590">
<section id="HFC3906C97AFE4D27B0D8C909817C00C3"><enum>6050W.</enum><header>Returns
relating to payment of low-income housing credit repayment amount</header>
<subsection id="H0A284A173C9F46DAAEA1132098AB4C82"><enum>(a)</enum><header>Requirement of
reporting</header><text>Every person who, at any time during the taxable year,
is an owner of a building (or an interest therein)—</text>
<paragraph id="H5035C93C222C42FBAC72D284E322B4E0"><enum>(1)</enum><text>which is in the
compliance period at any time during such year, and</text>
</paragraph><paragraph id="H1A0DDD8823384A49B48CF7F0C04FF12C"><enum>(2)</enum><text>with respect to
which recapture is required by section 42(j),</text>
</paragraph><continuation-text continuation-text-level="subsection">shall, at
such time as the Secretary may prescribe, make the return described in
subsection (b).</continuation-text></subsection><subsection id="H3C08F2892404425DACDC85D3D18F22D7"><enum>(b)</enum><header>Form and manner
of returns</header><text>A return is described in this subsection if such
return—</text>
<paragraph id="HE6475836C0394A7DA19823E08751C28B"><enum>(1)</enum><text>is in such form as
the Secretary may prescribe, and</text>
</paragraph><paragraph id="H3862ECDA08FC42428DBBC5F922DA826"><enum>(2)</enum><text>contains—</text>
<subparagraph id="H4EB92617E750460FBA3B8C007D40DA85"><enum>(A)</enum><text>the name, address,
and TIN of each person who, with respect to such building or interest, was
formerly an investor in such owner at any time during the compliance
period,</text>
</subparagraph><subparagraph id="HF07B48A90AC94CD2BC2C10DAC1237700"><enum>(B)</enum><text>the amount (if
any) of any credit recapture amount required under section 42(j), and</text>
</subparagraph><subparagraph id="HEBF0A7C493E24C928048B5F5F223919F"><enum>(C)</enum><text>such other
information as the Secretary may prescribe.</text>
</subparagraph></paragraph></subsection><subsection id="H25A6E91AB294469700E6442F1921ED3D"><enum>(c)</enum><header>Statements To Be
furnished to persons with respect to whom information is
required</header><text>Every person required to make a return under subsection
(a) shall furnish to each person whose name is required to be set forth in such
return a written statement showing—</text>
<paragraph id="H55A8FA9B389C45F0B54722672985DB01"><enum>(1)</enum><text>the name and
address of the person required to make such return and the phone number of the
information contact for such person, and</text>
</paragraph><paragraph id="HEEC302871CF64656A1C21100C71F19B6"><enum>(2)</enum><text>the information
required to be shown on the return with respect to such person.</text>
</paragraph><continuation-text continuation-text-level="subsection">The
written statement required under the preceding sentence shall be furnished on
or before March 31 of the year following the calendar year for which the return
under subsection (a) is required to be made.</continuation-text></subsection><subsection id="H1BFFE5E0932944FFBE1EB3D0A6AEFC44"><enum>(d)</enum><header>Compliance
period</header><text>For purposes of this section, the term <term>compliance
period</term> has the meaning given such term by section
42(i).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB5EAA2308F09409CA6BEA7171690E3D1"><enum>(2)</enum><header>Assessable
penalties</header>
<subparagraph id="H76BEA8EB439B4451B4218F99B8D89BCE"><enum>(A)</enum><text>Subparagraph (B)
of section 6724(d)(1) (relating to definitions) is amended by inserting after
clause (xxi) the following new clause:</text>
<quoted-block id="H632E02426CC94A98A191BA869B7F08F9">
<clause id="HEE5768D3C5214F9CA87F48AA5605DE3D"><enum>(xxii)</enum><text>section 6050W
(relating to returns relating to payment of low-income housing credit repayment
amount),</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph id="H1DC63F3B70D247DBAE2E78DB6B4E1D4D"><enum>(B)</enum><text>Paragraph (2) of
section 6724(d) is amended by striking <quote>or</quote> at the end of
subparagraph (BB), by striking the period at the end of subparagraph (CC) and
inserting <quote>, or</quote>, and by adding after subparagraph (CC) the
following new subparagraph:</text>
<quoted-block id="H1E1F9097F6F244FFB6388BA6B0ED7727">
<subparagraph id="idDE6F0338FB99428DA0167879054AF5D6"><enum>(DD)</enum><text>section 6050W
(relating to returns relating to payment of low-income housing credit repayment
amount).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="HCC19D9C403424E8D831C7F006869DDBF"><enum>(3)</enum><header>Clerical
amendment</header><text>The table of sections for subpart B of part III of
subchapter A of chapter 61 is amended by inserting after the item relating to
section 6050V the following new item:</text>
<quoted-block display-inline="no-display-inline" id="H46E0E60CEE2E444A009F85B5D642EAF8" style="OLC">
<toc container-level="quoted-block-container" idref="HBB58236C900642D6A543BB0008C2C590" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="HFC3906C97AFE4D27B0D8C909817C00C3" level="section">Sec. 6050W. Returns relating to payment of low-income housing
credit repayment
amount.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HDCD0B86F217243FC979B094C58844C52"><enum>(c)</enum><header>Effective
date</header>
<paragraph id="H64270280CA62476CAA1EEB5FA3007C27"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply with
respect to any liability for the credit recapture amount under section 42(j) of
the Internal Revenue Code of 1986 that arises after the date of the enactment
of this Act.</text>
</paragraph><paragraph id="H8EBE6906412E473FAEFC4F1308FA4FBF"><enum>(2)</enum><header>Special rule for
low-income housing buildings sold before date of enactment of this
Act</header><text>In the case of a building disposed of before the date of the
enactment of this Act with respect to which the taxpayer posted a bond (or
alternative form of security) under section 42(j) of the Internal Revenue Code
of 1986 (as in effect before such date of enactment), the taxpayer may elect
(by notifying the Secretary of the Treasury in writing)—</text>
<subparagraph id="H172E3F134463431DABE983F85CBEB862"><enum>(A)</enum><text>to cease to be
subject to the bond requirements under section 42(j)(6) of such Code, as in
effect before such date of enactment, and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="H9B46C69ECC1645BBA783D8E263EC65CF"><enum>(B)</enum><text>to be subject to
the requirements of section 42(j) of such Code, as amended by this
section.</text>
</subparagraph></paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="id530E69F8348D4D23BAC5B56924AC13B9"><enum>302.</enum><header>Affordable
housing credit allowed against alternative minimum tax</header>
<subsection commented="no" display-inline="no-display-inline" id="idA2D9A44A4C7344F1969E0BEA19E5D564"><enum>(a)</enum><header>In
general</header><text>Subparagraph (B) of section 38(c)(4) (relating to special
rules for specified credits) is amended by redesignating clauses (ii), (iii),
and (iv) as clauses (iii), (iv), and (v), respectively, and by inserting after
clause (i) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id49E101B530DF4FBCA1E885FEDAEF2697" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="idDDAA18361B2B47BAB451C22D384F52B1"><enum>(ii)</enum><text>the credit
determined under section
42(a),</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id23F53B14C8AB4D3486749609AD0B379B"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this subsection shall apply to
taxable years beginning after the date of the enactment of this Act.</text>
</subsection></section><section id="ID982110d8b3dd46d7a056fa96a642436e"><enum>303.</enum><header>Interest on
qualified mortgage bonds, qualified veterans’ mortgage bonds, and qualified
residential rental project exempt facility bonds exempt from alternative
minimum tax</header>
<subsection id="ID38a2aab7177c4f8d942d07b09f936ead"><enum>(a)</enum><header>In
general</header><text>Clause (ii) of section 57(a)(5)(C) (relating to exception
for qualified 501(c)(3) bonds) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idFCC728445D7E447DA33025D858FBB941" style="OLC">
<clause id="IDe1c4aee0e5d943469f8ec9a5bdd101f2"><enum>(ii)</enum><header>Exception for
certain bonds</header><text>For purposes of clause (i), the term <term>private
activity bond</term> shall not include—</text>
<subclause id="ID7fa910a4d50d481f96afb94bffb11d58"><enum>(I)</enum><text>any qualified
501(c)(3) bond (as defined in section 145);</text>
</subclause><subclause id="IDe2e8a2e40ed84ddfae01c4fde01ab2d7"><enum>(II)</enum><text>any qualified
mortgage bond (as defined in section 143(a));</text>
</subclause><subclause id="ID5a32f7bf1e7c49369351c1d95d173e1f"><enum>(III)</enum><text>any qualified
veterans’ mortgage bond (as defined in section 143(b)); and</text>
</subclause><subclause id="ID41cf0dc1f6514a048cd3a49c48f17b75"><enum>(IV)</enum><text>any exempt
facility bond (as defined in section 142(a)) issued as part of an issue 95
percent or more of the net proceeds of which are to be used to provide
qualified residential rental projects (as defined in section
142(d)).</text>
</subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDf64ede7e44904d0ebef1a7bcd80f675d"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to bonds
originally issued after the date of the enactment of this Act.</text>
</subsection></section><enum>IV</enum><header>Help Preserve
Existing Affordable Housing</header>
<section id="idC8A523AE2DCD47EFACFA053E52D9366A"><enum>401.</enum><header>Repeal of
10-year rule for acquisition housing credits</header>
<subsection id="ID35f97d093a7b4de5a65dcc72921d2964"><enum>(a)</enum><header>In
general</header><text>Subparagraph (B) of section 42(d)(2) (relating to
existing buildings) is amended by striking clause (ii) and by redesignating
clauses (iii) and (iv) as clauses (ii) and (iii), respectively.</text>
</subsection><subsection id="ID2a1bf35b4dc048d2a9a39190959b2329"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 42(d) is amended by striking paragraph (6) and
by redesignating paragraph (7) as paragraph (6).</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id15AABFF5AF06489191A28816FB51636F"><enum>402.</enum><header>Modification
of related person rule for affordable housing credit</header>
<subsection commented="no" display-inline="no-display-inline" id="idF4BF02B7B6524FE3AFE7EFE1BD7063E3"><enum>(a)</enum><header>In
general</header><text>Clause (iii) of section 42(d)(2)(D) (related to related
person, etc.) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idCC47426A2B3B47D49C01677717D2E305" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="id2EC16FF1028546F68254E9A8BF6C06FF"><enum>(iii)</enum><header>Related
person</header><text>For purposes of subparagraph (B)(iii), a person
(hereinafter in this subclause referred to as the <quote>related
person</quote>) is related to any person if the related person bears a
relationship to such person specified in section 267(b) or 707(b)(1), or the
related person and such person are engaged in trades or businesses under common
control (within the meaning of subsections (a) and (b) of section
52.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idABBBAC71CDFA47ACA427CB68DF4BF4F9"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this subsection shall take effect on
the date of the enactment of this Act.</text>
</subsection></section><enum>V</enum><header>Simplify
Administration of the Housing Credit Program</header>
<section id="id901177E99481431C9928E75ED8EE4C78"><enum>501.</enum><header>Elimination of
certain annual recertifications of tenant incomes</header><text display-inline="no-display-inline">Paragraph (8) of section 42(g) (relating to
qualified low-income housing project) is amended—</text>
<paragraph id="IDe83e9b0aa95545ee8a02f93b43c83949"><enum>(1)</enum><text>by striking
<quote>may waive</quote> in the mater preceding subparagraph (A);</text>
</paragraph><paragraph id="ID287574d6680d4a7fafe1bb761961ad0b"><enum>(2)</enum><text>by inserting
<quote>may waive</quote> before <quote>any recapture</quote> in subparagraph
(A); and</text>
</paragraph><paragraph id="ID46f12f24f3774f6fa7c6a4a54a905a10"><enum>(3)</enum><text>by inserting
<quote>shall waive</quote> before <quote>any annual recertification</quote> in
subparagraph (B).</text>
</paragraph></section><enum>VI</enum><header>Conform
Multifamily Housing Bond Rules to Housing Credit Rules</header>
<section id="H6203EAA4170C4387A7EE6816C39EB6DD"><enum>601.</enum><header>Coordination of
certain rules applicable to affordable housing credit and qualified residential
rental project exempt facility bonds</header>
<subsection id="HE37AA62F2377498DA8F2D34DCE3D66C"><enum>(a)</enum><header>Determination of
next available unit</header><text>Paragraph (3) of section 142(d) (relating to
current income determinations) is amended by adding at the end the following
new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H14B43DCB878D4731AA59D27C1D2507F" style="OLC">
<subparagraph id="HF35AF79CD30043A0BFBA55C18DEEA9FF"><enum>(C)</enum><header>Exception for
projects with respect to which affordable housing credit is
allowed</header><text>In the case of a project with respect to which credit is
allowed under section 42, the second sentence of subparagraph (B) shall be
applied by substituting <quote>building (within the meaning of section
42)</quote> for
<quote>project</quote>.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HC5624A1B62CD415E80CC8D907577C1D"><enum>(b)</enum><header>Students</header><text>Paragraph
(2) of section 142(d) (relating to definitions and special rules) is amended by
adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H771A80CF8ABD47D48E015329F006EAE" style="OLC">
<subparagraph id="HBC3548394A2C4675BDDCE0AE834E9B9E"><enum>(C)</enum><header>Students</header><text>Students
(as defined in section 152(f)(2)) shall not be treated as satisfying the
requirements of subparagraph (A) or (B) of paragraph (1) except under rules
similar to the rules of
42(i)(3)(D).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HCEE21E38B6D346D5A3448D0417016D00"><enum>(c)</enum><header>Single-room
occupancy units</header><text display-inline="yes-display-inline">Paragraph (2)
of section 142(d) (relating to definitions and special rules), as amended by
this Act, is further amended by adding at the end the following new
subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H5F70A885050D41E1B2E620ABB93FADC" style="OLC">
<subparagraph id="H143CDA43573349D8ABAF2F5092698FDD"><enum>(D)</enum><header>Single-room
occupancy units</header><text display-inline="yes-display-inline">A unit shall
not fail to be treated as a residential unit merely because such unit is a
single-room occupancy unit (within the meaning of section
42).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H350278CC6D39483A840014A06CEAD6E"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
determinations of the status of qualified residential rental projects for
periods beginning after the date of the enactment of this Act, with respect to
bonds issued before, on, or after such date.</text>
</subsection></section><enum>VII</enum><header>Improve the
Mortgage Revenue Bond Program</header>
<section id="idFB6E0EA6F95442F5934505070CF111E5"><enum>701.</enum><header>Special rule
for use of mortgage bonds for disaster victims, single parents, and
homemakers</header>
<subsection id="id98660B15F95148259A3D27FD46A58413"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 143(d) (relating to exceptions
to 3-year requirement) is amended by striking <quote>and</quote> at the end of
subparagraph (C) and by inserting after subparagraph (D) the following new
subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="id4B74525B91B14FA59391C1E3876A08BD" style="OLC">
<subparagraph id="id3CAE612AD07D4FD9919CECB1C4A0B2EB"><enum>(E)</enum><text>financing of
residences for individuals with an ownership interest in a principal residence
which—</text>
<clause id="id3C4F940881DD4B15B585174B310A32D4"><enum>(i)</enum><text>is located in an
area with respect to which a major disaster has been declared by the President
under section 401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, and</text>
</clause><clause id="id76F286299013426AAACD81AEC5CB2467"><enum>(ii)</enum><text>has been
rendered uninhabitable by reason of the major disaster,</text>
</clause></subparagraph><subparagraph id="id2FFE265F668C4EBDA93C1637856E89E8"><enum>(F)</enum><text>financing of
residences for individuals who—</text>
<clause id="idA0BE7279414546B1ADB99256D44150A4"><enum>(i)</enum><text>are not married,
and</text>
</clause><clause id="id58E2D9D9AF3B4906AC28CD50323FDAE8"><enum>(ii)</enum><text>have one or more
qualifying children (within the meaning of section 152), and</text>
</clause></subparagraph><subparagraph id="id6A01018D68D145ADB7886285B49CC89C"><enum>(G)</enum><text>financing of
residences for displaced
homemakers,</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idC7880713EB5148C0AEA6600B9BD3C67A"><enum>(b)</enum><header>Displaced
homemakers</header><text>Section 143(d) is amended by adding at the end the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="idC8B5377F891747D3A8297A1B869B7B66" style="OLC">
<paragraph id="id9F08B28EC8BE4EB6AED3018468AF51EE"><enum>(4)</enum><header>Displaced
homemaker</header><text>For purposes of paragraph (2)(G), the term
<term>displaced homemaker</term> means any individual who is—</text>
<subparagraph id="idE4013BC98A5248E89700FE3C3C2048E1"><enum>(A)</enum><text>over 18 years of
age,</text>
</subparagraph><subparagraph id="id5C53995611AA417C9C443D1A3F86294D"><enum>(B)</enum><text>is not employed
or underemployed and is experiencing difficulty in obtaining or upgrading
employment, and</text>
</subparagraph><subparagraph id="id42F25E9497424F7892231524EA0FA321"><enum>(C)</enum><text>has not worked
full-time full-year in the labor force for a number of years before the date on
which financing for a residence is supplied, but has, during such years, worked
primarily without remuneration to care for the home and
family.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="idC1D95A1E8EE2458B93B91D02F6ED5686"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after the date of the enactment of this Act.</text>
</subsection></section><section id="ID0359a3cac68e4076a743729d01e22dc3"><enum>702.</enum><header>Repeal of
required use of certain principal repayments on qualified mortgage issues to
redeem bonds</header>
<subsection id="ID82637015f0a549c9a9123b6f83c6342f"><enum>(a)</enum><header>In
general</header><text>Subparagraph (A) of section 143(a)(2) (relating to
qualified mortgage issue defined) is amended by inserting <quote>and</quote> at
the end of clause (ii), by striking <quote>, and</quote> at the end of clause
(iii) and inserting a period, and by striking clause (iv) and the last
sentence.</text>
</subsection><subsection id="ID1d3927c79ac445ca8a5db916ab38355c"><enum>(b)</enum><header>Conforming
amendment</header><text>Clause (ii) of section 143(a)(2)(D) is amended by
striking <quote>(and clause (iv) of subparagraph (A))</quote>.</text>
</subsection><subsection id="ID42aabe1d58f546b3b8de8b99c57f1816"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
repayments received after the date of the enactment of this Act.</text>
</subsection></section><enum>VIII</enum><header>Effective
Date</header>
<section commented="no" display-inline="no-display-inline" id="id06260C3FE9BD4BE080F41B100B19FEA4"><enum>801.</enum><header>Effective
date</header><text display-inline="no-display-inline">Except as otherwise
provided in this Act, the amendments made by this Act shall apply to—</text>
<paragraph id="id14C483BECE1848619C0CA98B29BA0442"><enum>(1)</enum><text>housing credit
dollar amounts allocated after the date of the enactment of this Act,
and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA8249C2D4683440084DBD66518A67877"><enum>(2)</enum><text>buildings placed
in service after such date to the extent paragraph (1) of section 42(h) of the
Internal Revenue Code of 1986 does not apply to such building by reason of
paragraph (4) thereof, but only with respect to bonds issued after such
date.</text>
</paragraph></section>