[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3963 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 3963
To amend the Internal Revenue Code of 1986 to improve the low-income
housing credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 9, 2023
Mr. Evans (for himself and Mr. Fitzpatrick) 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 improve the low-income
housing credit.
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 ``Visitable Inclusive Tax Credits for
Accessible Living (VITAL) Act''.
SEC. 2. PURPOSE.
The purposes of this Act are to--
(1) increase low-income housing tax credits to increase the
stock of disability-accessible and affordable housing;
(2) ensure that States are using the Federal tax credits to
construct housing that will meet the needs of an aging
population and currently underserved populations such as
households with people with disabilities;
(3) encourage States to make sure older adults and
underserved populations are integrated into their community and
can fully participate in society; and
(4) increase technical assistance, awareness, knowledge,
and understanding of the low-income housing credit program and
the housing needs of older adults and people with disabilities.
SEC. 3. FINDINGS.
Congress makes the following findings:
(1) By 2030, 1 in every 5 Americans will be over age 65,
and currently, 2 in 5 adults over age 65 have a disability. As
people age, they need structurally safe and functional housing
that accommodates people with disabilities.
(2) Approximately 26 percent of people in the United States
have a disability, yet less than 6 percent of the national
housing supply is designed to be even rudimentarily accessible.
(3) An accessible home offers specific features or
technologies such as lowered kitchen counters and sinks,
widened doorways, and zero-step showers.
(4) A lack of affordable and accessible housing can
relegate people with disabilities to living in institutional
settings when they would prefer to live in a community setting.
(5) Older adults and people with disabilities prefer to
remain in their homes for as long as possible. More than 89
percent of adults age 65 and over hope to stay in their homes
as they age.
(6) Older adults and people with disabilities must be able
to run errands, work, visit family and friends, and keep doctor
appointments, while not always being able to drive. Accessible
and affordable public transit options and walkable and roll-
able neighborhoods allow older adults to remain independent and
active in their communities.
(7) Many older adults and people with disabilities are
experiencing an affordability crisis. Approximately 4,800,000
non-institutionalized people with disabilities who depend on
Federal monthly Supplemental Security Income have incomes
averaging only about $9,156 per year, low enough to be priced
out of every rental housing market in the nation.
SEC. 4. INCREASES IN STATE ALLOCATIONS.
(a) In General.--Clause (ii) of section 42(h)(3)(C) of the Internal
Revenue Code of 1986 is amended--
(1) by striking ``$1.75'' in subclause (I) and inserting
``$4.47'', and
(2) by striking ``$2,000,000'' in subclause (II) and
inserting ``$5,154,965''.
(b) Cost-of-Living Adjustment.--Subparagraph (H) of section
42(h)(3) of the Internal Revenue Code of 1986 is amended--
(1) by striking ``2002'' in clause (i) and inserting
``2023'',
(2) by striking ``the $2,000,000 and $1.75 amounts in
subparagraph (C)'' in clause (i) and inserting ``the $5,154,965
and $4.47 amounts in subparagraph (C)'',
(3) by striking ``2001'' in clause (i)(II) and inserting
``2022'',
(4) by striking ``$2,000,000 amount'' in clause (ii)(I) and
inserting ``$5,154,965'', and
(5) by striking ``$1.75 amount'' in clause (ii)(II) and
inserting ``$4.47''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after December 31, 2023.
SEC. 5. TAX-EXEMPT BOND FINANCING REQUIREMENT.
(a) In General.--Subparagraph (B) of section 42(h)(4) of the
Internal Revenue Code of 1986 is amended by adding at the end the
following: ``In the case of buildings financed by an obligation first
taken into account under section 146 in calendar years beginning after
2023, the preceding sentence shall be applied by substituting `25
percent' for `50 percent'.''.
(b) Effective Date.--The amendment made by this section shall apply
to buildings placed in service in taxable years beginning after
December 31, 2023.
SEC. 6. INCREASE IN CREDIT FOR PROJECTS DESIGNATED TO SERVE HOUSEHOLDS
WITH PEOPLE WITH DISABILITIES.
(a) In General.--Paragraph (5) of section 42(d) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(C) Increase in credit for projects designated to
serve households with people with disabilities.--
``(i) In general.--In the case of any
building--
``(I) 50 percent or more of the
low-income units in the building are
units designated by the taxpayer to
meet the applicable design standards
for occupancy by persons with mental,
physical, sensory, or developmental
disabilities,
``(II) which is located in a census
block group designated by the
Environmental Protection Agency as
being--
``(aa) above average or
better in terms of walkability,
or
``(bb) adjacent to 2 or
more census tracts described in
item (aa), and
``(III) 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,
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 130 percent of such
basis determined without regard to this
subparagraph.
``(ii) Design standards.--For purposes of
clause (i)(I), the term `applicable design
standards' means the principles and standards
of adaptable design as detailed in the Uniform
Federal Accessibility Standards, or any
successor standard designated by the
Secretary.''.
(b) Effective Date.--The amendment made by this section shall apply
to buildings which receive allocations of housing credit dollar amount
or, in the case of projects financed by tax-exempt obligations as
described in section 42(h)(4) of the Internal Revenue Code of 1986,
which are first taken into account under section 146 of such Code,
after the date of the enactment of this Act.
SEC. 7. REQUIREMENT FOR PROJECTS DESIGNATED TO SERVE HOUSEHOLDS WITH
PEOPLE WITH DISABILITIES.
(a) In General.--Paragraph (1) of section 42(m) of the Internal
Revenue Code of 1986 is amended by adding at the end the following new
subparagraph:
``(E) Projects designated to serve households with
people with disabilities.--
``(i) In general.--The qualified allocation
plan shall ensure that, with respect to any 3-
year period, the applicable percentage is not
less than 40 percent.
``(ii) Applicable percentage.--For purposes
of this subparagraph, the applicable percentage
is the ratio (expressed as a percentage) of--
``(I) the number of low-income
units in all projects receiving an
allocation of the housing credit dollar
amount during such period which meet
the requirements of subclause (I) of
subsection (d)(5)(C)(i), to
``(II) the aggregate number of all
low-income units in all projects
receiving an allocation of the housing
credit dollar amount during such
period.
``(iii) Special rule.--For purposes of
clause (ii)(I), any low-income unit which is
part of a project which meets the requirements
of both subclause (I) and subclause (II) of
subsection (d)(5)(C)(i) shall be counted
twice.''.
(b) Effective Date.--The amendment made by this section shall apply
to buildings which receive allocations of housing credit dollar amount
or, in the case of projects financed by tax-exempt obligations as
described in section 42(h)(4) of the Internal Revenue Code of 1986,
which are first taken into account under section 146 of such Code,
after the date of the enactment of this Act.
SEC. 8. RESOURCE CENTERS FOR THE LOW-INCOME HOUSING TAX CREDIT PROGRAM.
(a) Definitions.--In this section:
(1) Center.--The term ``Center'' means a Resource Center
established under subsection (b).
(2) Program.--The term ``Program'' means a program
established for allocating amount under section 42(h) of the
Internal Revenue Code of 1986.
(b) Establishment.--Each State housing finance agency shall
establish and operate a Resource Center for the Low-Income Housing Tax
Credit Program to support new applicants and recipients for the Program
in the State by--
(1) providing potential applicants and recipients with
information and technical assistance to effectively prepare and
submit a Program application;
(2) ensuring that all interested and eligible entities have
the tools to apply for the Program;
(3) prioritizing providing assistance to nonprofit and
first-time developers applying for the Program;
(4) identifying potential barriers to preparing and
submitting a successful application for the Program; and
(5) proposing streamlined solutions to those barriers that
the State and each locality within the State can adopt.
(c) Operating Standards and Reporting Requirements.--Each State
housing finance agency shall develop and issue operating standards and
reporting requirements for the Center established by the agency.
(d) Set Aside.--There is authorized to be appropriated $8,250,000
for fiscal year 2024 and each fiscal year thereafter to carry out this
section, of which $150,000 shall be allocated each fiscal year to each
State housing finance agency located in--
(1) a State of the United States;
(2) the District of Columbia; or
(3) a territory of the United States.
SEC. 9. NATIONAL LOW-INCOME HOUSING TAX CREDIT ADVISORY COUNCIL.
(a) Definitions.--In this section:
(1) Council.--The term ``Council'' means the National Low-
Income Housing Tax Credit Advisory Council established under
subsection (b).
(2) Covered property.--The term ``covered property'' means
a building receiving an allocation of credit under section 42
of the Internal Revenue Code of 1986.
(b) Establishment.--There is established a National Low-Income
Housing Tax Credit Advisory Council.
(c) Membership.--
(1) Selection; chair.--The Council shall be comprised of
members selected by a designee jointly selected by the
Secretary of Housing and Urban Development and the Secretary of
the Treasury, who shall serve as chair of the Council.
(2) Members.--The Council shall be composed of not less
than 1 representative from each of the following groups:
(A) Community-based organizations that support
individuals with disabilities living in covered
properties.
(B) Community-based organizations that support
older adults living in covered properties.
(C) Community-based organizations that support
veterans living in covered properties.
(D) Community-based organizations that support
families and children living in covered properties.
(E) A multi-State not-for-profit housing developer.
(F) A multi-State for-profit housing developer.
(G) Investors or syndicators of funds to which
credits allocated under section 42 of the Internal
Revenue Code of 1986 are sold.
(H) The research community.
(I) State housing finance agencies.
(3) Qualifications.--The members of the Council shall--
(A) have a lived experience as part of the group
they represent; and
(B) represent a diversity of--
(i) educational and professional
backgrounds;
(ii) racial, ethnic, gender, and linguistic
identities;
(iii) disabilities, including intellectual
disabilities;
(iv) ages; and
(v) geographic locations.
(4) Duration.--Each member of the Council shall be
appointed for a period of 3 years and may be re-appointed for
an additional term.
(d) Duties.--The Council shall provide best practice
recommendations and resources to State housing finance agencies,
developers, investors, and consumers related to national trends in the
development of affordable housing under section 42 of the Internal
Revenue Code of 1986.
(e) Report.--
(1) In general.--The Council shall submit to each State
housing finance agency and the Secretary of Housing and Urban
Development a report, which shall be submitted not less
frequently than once every 3 years, with final recommendations
on best practices to--
(A) fulfill the mission of the credits allocated
under section 42 of the Internal Revenue Code of 1986;
(B) serve the needs of individuals with
disabilities and older adults; and
(C) study the effects of factors such as zoning,
land use requirements, location, and cost of affordable
housing developments.
(2) Public availability.--Upon receiving a report submitted
under paragraph (1), the Secretary of Housing and Urban
Development shall make the report available to the public.
(f) Authorization of Appropriations.--There is authorized to be
appropriated $15,000,000 for fiscal year 2024 and each fiscal year
thereafter to carry out this section, which amounts shall be provided
to the Council to cover the costs of travel and the necessary
operations of the Council.
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