Moderate-income senior housing project treated as qualified low income housing project

(a)

In general

Subsection (g) of section 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(10)

Special rule for moderate income senior housing project

For purposes of this subsection— (A)

In general

A qualified senior shall be treated as an individual described in subparagraph (A) or (B) of paragraph (1), as the case may be. (B)

Qualified senior

The term qualified senior means any individual— (i)who has attained the age of 62, and (ii)whose income is 140 percent or less of the income limitation otherwise applicable under paragraph (1). (C)

Income limitation for determining rent restriction

(i)

In general

For purposes of paragraph (2), the income limitation under paragraph (1) with respect to a residential unit occupied by a qualified senior shall be treated as the income limitation described in subparagraph (B)(ii). (ii)

Next available unit must be rented to qualified senior if income rises above 140 percent of income limit

In the case of a unit occupied by a qualified senior, if the income of the occupants of the unit increases above 140 percent of the income limitation, paragraph (2)(D)(i) shall continue to apply only if any residential unit in the building (of a size comparable to, or smaller than, such unit) is occupied by a new resident who is a qualified senior.

(b)

Preference for allocating to moderate income senior housing projects

Clause (ii) of section 42(m)(1)(B) of such Code is amended by adding at the end the following new subclause:

(IV)projects serving qualified seniors (as defined in subsection (g)(10)(B)), and

(c)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall apply to determinations under section 42 of the Internal Revenue Code of 1986 with respect to housing credit dollar amounts allocated from State housing credit ceilings for calendar years after 2012. (2)

Buildings not subject to allocation limits

To the extent paragraph (1) of section 42(h) of such Code does not apply to any building by reason of paragraph (4) thereof, the amendments made by this section shall apply to buildings placed in service after December 31, 2012.