II 111th CONGRESS 1st Session S. 1326 IN THE SENATE OF THE UNITED STATES June 23, 2009 Mr. Bayh (for himself, Mr. Shelby, Ms. Landrieu, Mr. Vitter, Mr. Durbin, Mr. Bond, Mr. Harkin, Mr. Johanns, Mr. Wicker, Mr. Lugar, Mr. Cochran, and Mr. Nelson of Nebraska) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the American Recovery and Reinvestment Tax Act of 2009 to clarify the low-income housing credits that are eligible for the low-income housing grant election, and for other purposes.

1.

Short title

This Act may be cited as the Disaster State Housing Recovery Act of 2009.

2.

Low-income housing grant election

(a)

Clarification of eligibility of low-income housing credits for low-income housing grant election

Paragraph (1) of section 1602(b) of the American Recovery and Reinvestment Tax Act of 2009 is amended— (1)by inserting , plus any increase in the State housing credit ceiling for 2009 attributable to any State housing credit ceiling returned in 2009 to the State by reason of section 1400N(c) of such Code (including as such section is applied by reason of sections 702(d)(2) and 704(b) of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008) after 1986 in subparagraph (A), and (2)by inserting , plus any increase in the State housing credit ceiling for 2009 attributable to any additional State housing credit ceiling made by reason of the application of such section 702(d)(2) and 704(b) after such section in subparagraph (B). (b)

Application of additional housing credit amount for purposes of 2009 grant election

Subsection (b) of section 1602 of the American Recovery and Reinvestment Tax Act of 2009, as amended by subsection (a), is amended by adding at the end the following flush sentence: For purposes of subparagraph (B), in the case of any area to which such section 702(d)(2) or 704(b) applies, section 1400N(c)(1)(A) of such Code shall be applied without regard to clause (i).. (c)

Effective date

The amendments made by this section shall apply as if included in the enactment of section 1602 of the American Recovery and Reinvestment Tax Act of 2009.