118 HR 3963 IH: Visitable Inclusive Tax Credits for Accessible Living (VITAL) Act
U.S. House of Representatives
2023-06-09
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I
118th CONGRESS
1st Session
H. R. 3963
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.
1.

Short title
This Act may be cited as the “Visitable Inclusive Tax Credits for Accessible Living (VITAL) Act”.
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.
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.
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.
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.
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.
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.
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.
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.