Overview
Title
To amend the Internal Revenue Code of 1986 to provide a credit for working families housing development, and for other purposes.
ELI5 AI
H.R. 893 is a plan to give special money bonuses to people who build homes for workers like teachers and firefighters, making it cheaper for them to live. It also sets aside extra money to help build roads and other important things near these homes, especially in countryside areas.
Summary AI
H.R. 893, known as the "Working Families Housing Tax Credit Act," aims to amend the Internal Revenue Code to offer tax credits for developing housing for working families, such as teachers, firefighters, and veterans. The bill sets out criteria and establishes guidelines for qualifying housing projects and defines the credit's calculations based on various factors related to housing needs and construction costs. It also includes measures to ensure affordability and accessibility of housing for working families. Additionally, the bill proposes grants and loans for infrastructure projects supporting housing in rural and exurban areas, with an emphasis on clean energy.
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AnalysisAI
Overview of the Working Families Housing Tax Credit Bill
The bill, titled the "Working Families Housing Tax Credit Act," seeks to amend the Internal Revenue Code of 1986. Its principal aim is to promote the development of affordable housing for working families, including essential workers like teachers, firefighters, and veterans. It introduces tax incentives as a strategy to encourage the construction of such housing and outlines regulations for defining eligible projects and buildings. Additionally, the bill authorizes grants and loans for infrastructure projects supporting designated housing initiatives.
Significant Issues Identified
Complexity and Accessibility
Both Sections 3 and 42A are characterized by substantial length and complex legal language. This complexity could pose significant challenges to understanding and compliance, particularly for smaller housing developers or entities with limited legal resources.
Lack of Clear Allocation Criteria
Section 4 authorizes $100 million for infrastructure projects but lacks specific criteria for fund allocation, opening the door to potential mismanagement or favoritism. The absence of detailed oversight measures raises concerns about accountability and efficient use of taxpayer money.
Subjective Credit Allocations
The responsibility for determining credit allocations and project feasibility lies with various housing credit agencies. This could lead to inconsistent applications and subjectivity across different states, raising fairness issues.
Overlaps with Existing Credits
The introduction of a new tax credit alongside existing low-income housing credits under Section 42 may lead to overlaps and duplications. This could cause confusion or inefficiencies in the deployment of these credits.
Inequitable Resource Distribution
The provision for increased credits for projects in "difficult development areas" lacks clear oversight and criteria, potentially leading to favoritism toward specific regions over others, which might not be equitable.
Ambiguity in Definitions
Phrases like "qualified nonprofit organization" and "working families unit" possess vague definitions, creating opportunities for loopholes or disputes over eligibility. Moreover, terms related to "clean energy" projects lack clarity, potentially leading to ambiguous interpretations.
Potential Impacts on the Public and Stakeholders
Broad Public Impact
The potential benefits of the bill could include increased availability of affordable housing for families who earn below the median income within their area. By reducing housing costs through tax credits, more working families might access quality living conditions. However, the intricacies and bureaucratic challenges outlined could dampen these benefits if stakeholders are unable to fully grasp or implement the legislative intent.
Impact on Housing Developers
Large, well-resourced housing developers might have the capability to navigate the complexities and potential ambiguities within the bill efficiently. On the other hand, smaller developers and nonprofit organizations might face hurdles due to the stringent administrative requirements and potential legal verbosity.
Impact on Local Governments
Local governments could stand to gain from infrastructure grants and loans, aiding them in enhancing public utilities linked to housing projects. However, without clearly defined priorities or oversight, local entities might struggle with aligning these projects with broader community needs.
Impact on Rural and Exurban Communities
Communities in rural and exurban areas may particularly benefit from the bill's infrastructure funding and prioritization of projects in "difficult development areas." Yet, the vague definitions and oversight could lead to uneven resources distribution, impacting long-term regional development goals negatively.
Conclusion
In summary, while the Working Families Housing Tax Credit Act aims to address essential needs for affordable housing among working families, its effectiveness could be compromised by its complexity, lack of clear guidelines for fund distribution, and potential overlaps with existing credits. For the bill to truly serve its intended purpose, stakeholders, including policymakers and regulators, must ensure transparency, simplicity, and equitable allocations to avoid potential pitfalls and maximize its positive impact on those who need it most.
Financial Assessment
The proposed "Working Families Housing Tax Credit Act" includes several financial references, notably in terms of tax credits and appropriations, which are critical to understanding how the bill intends to alleviate housing issues for working families.
Tax Credits Allocation:
The bill introduces a tax credit specifically for developing housing projects for working families, such as teachers and veterans. This credit, known as the "Working Families Housing Credit," is a crucial component of the bill. The financial calculations for this credit depend on factors such as the applicable percentage, determined by the Secretary, which affects the tax liability reduction developers can receive per building. The inclusion of this credit aims to provide financial incentives for developers to construct or rehabilitate housing units that are affordable and accessible to low and moderate-income families. However, there's a financial complexity in how these credits are distributed and allocated, leading to potential difficulties for developers, especially smaller ones, in understanding and complying with the rules. The reference to the State housing credit ceiling, set at the greater of $1.00 per State population or $1,500,000, also indicates a substantial financial allocation at the state level.
Infrastructure Funding:
An important financial component is the allocation of grants and loans for infrastructure projects in connection with these housing projects, particularly in rural and exurban areas. The bill authorizes an amount of $100,000,000 for this purpose, which is a significant outlay intended to support the essential infrastructure needed around these new housing units, such as roads and utility connections. This financial measure prioritizes clean energy projects when allocating funds for electricity infrastructure. However, this authorization raises potential concerns about oversight and the risk of wasteful spending, as the bill does not specify clear criteria for how these funds should be allocated or monitored. This lack of clarity could lead to potential inefficiencies or misuse of taxpayer money.
Overlap with Existing Credits:
Sections 3 and 42A mention that the new working families housing credit could overlap with existing low-income housing credits under Section 42, such as the low-income housing tax credit. Such overlaps could create additional administrative burdens and confusion regarding which credits developers are eligible for or how these credits interact financially. This is significant because it involves the risk of double-dipping into credits, potentially leading to inefficient use of resources and legal challenges over credit applicability.
State Agency Discretion:
The bill allows housing credit agencies significant discretion in determining credit allocation and project feasibility based on their assessment of local conditions and needs. While this can lead to more tailored approaches, it introduces concerns about subjectivity and potential inconsistencies across different states. This discretion can result in uneven financial distribution, where some regions may receive more favorable terms purely based on agency decisions rather than demonstrable need.
In summary, the bill contains several critical financial components, including significant appropriations and tax credit allocations aimed at enhancing affordable housing development. However, the complexities and lack of detailed oversight associated with these financial references could lead to potential inefficiencies, mismanagement, and uneven resource distribution. Therefore, clear criteria and guidelines are essential to ensure these financial measures reach their intended goals effectively.
Issues
The complexity and length of Sections 3 and 42A may hinder understanding and compliance among stakeholders, leading to potential misinterpretations or implementation challenges. This is significant legally and politically due to the potential impact on housing developers, especially smaller ones who might lack resources to navigate these complexities.
Section 4 authorizes $100,000,000 for infrastructure projects without specific criteria for fund allocation, which raises concerns about potential wasteful spending. Financially, this is significant because it involves a large sum of taxpayer money with unclear oversight and accountability measures.
The provision in Sections 3 and 42A allowing housing credit agencies to determine credit allocation and feasibility could lead to subjectivity and inconsistency across states, raising ethical and legal concerns about fair and equitable distribution of resources.
There is a risk of potential overlap and duplication of benefits between the new working families housing tax credit and other existing low-income housing credits under Section 42, as highlighted in Sections 3 and 42A, which could lead to inefficiency and confusion, impacting financial and legal aspects.
Section 3 permits increased credits for buildings in 'difficult development areas' without clear criteria or oversight, potentially leading to favoritism toward specific regions and inequitable resource distribution. This raises ethical and political concerns.
The language in Sections 3 and 42A is laden with legal and financial jargon, making it inaccessible to the general public and stakeholders, leading to potential misunderstandings and reducing accountability to the general public.
General definitions in Sections 3 and 42A for terms like 'qualified nonprofit organization' and 'working families unit' might be ambiguous, possibly creating loopholes for exploitation or disputes about eligibility, which are significant for legal and ethical reasons.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section provides the short title of the act, stating that it can be called the “Working Families Housing Tax Credit Act.”
2. Sense of Congress relating to the working families housing tax credit Read Opens in new tab
Summary AI
Congress expresses that the working family housing tax credit is a key tool for encouraging the creation of quality housing for essential workers and suggests that more legislation should be passed to strengthen this credit.
3. Working families housing tax credit Read Opens in new tab
Summary AI
The text introduces a Working Families Housing Tax Credit in the Internal Revenue Code, offering tax incentives to encourage the development of affordable housing projects for working families. It outlines the criteria for qualifying buildings and projects, the method for calculating the credit's value, limitations on the aggregate credit, and responsibilities of agencies in allocating these credits, while also setting conditions for ensuring long-term affordability and compliance through specific project requirements and procedures.
Money References
- “(b) Applicable percentage.— “(1) DETERMINATION OF APPLICABLE PERCENTAGE.—For purposes of this section— “(A) IN GENERAL.—The term ‘applicable percentage’ means, with respect to any building, the appropriate percentage prescribed by the Secretary for the earlier of— “(i) the month in which such building is placed in service, or “(ii) at the election of the taxpayer, the month in which the taxpayer and the housing credit agency enter into an agreement with respect to such building (which is binding on such agency, the taxpayer, and all successors in interest) as to the housing credit dollar amount to be allocated to such building.
- The requirement of this subclause is met if the qualified basis attributable to such amount, when divided by the number of working families units in the building, is equal to or greater than the dollar amount in effect under section 42(e)(3)(A)(ii)(II) for the calendar year in which such expenditures are treated as placed in service under paragraph (4).
- “(ii) BUILDING DESCRIBED.—A building is described in this clause if— “(I) a waiver is granted under subsection (d)(4) with respect to the acquisition of the building, and “(II) a credit would be allowed for rehabilitation expenditures with respect to such building if subsection (e)(3)(A)(ii)(I) did not apply and if the dollar amount in effect under subsection (e)(3)(A)(ii)(II) were two-thirds of such amount.
- “(h) Limitation on aggregate credit allowable with respect to projects located in a State.— “(1) CREDIT MAY NOT EXCEED CREDIT AMOUNT ALLOCATED TO BUILDING.— “(A) IN GENERAL.—The amount of the credit determined under this section for any taxable year with respect to any building shall not exceed the housing credit dollar amount allocated to such building under this subsection.
- “(C) EXCEPTION WHERE BINDING COMMITMENT.—An allocation meets the requirements of this subparagraph if there is a binding commitment (not later than the close of the calendar year in which the building is placed in service) by the housing credit agency to allocate a specified housing credit dollar amount to such building beginning in a specified later taxable year.
- “(iii) HOUSING CREDIT DOLLAR AMOUNT REDUCED BY FULL ALLOCATION.—Notwithstanding clause (i), the full amount of the allocation shall be taken into account under paragraph (2).
- “(2) ALLOCATED CREDIT AMOUNT TO APPLY TO ALL TAXABLE YEARS ENDING DURING OR AFTER CREDIT ALLOCATION YEAR.—Any housing credit dollar amount allocated to any building for any calendar year— “(A) shall apply to such building for all taxable years in the credit period ending during or after such calendar year, and “(B) shall reduce the aggregate housing credit dollar amount of the allocating agency only for such calendar year.
- “(3) HOUSING CREDIT DOLLAR AMOUNT FOR AGENCIES.
- aggregate housing credit dollar amount which a housing credit agency may allocate for any calendar year is the portion of the State housing credit ceiling allocated under this paragraph for such calendar year to such agency.
- “(C) STATE HOUSING CREDIT CEILING.—The State housing credit ceiling applicable to any State for any calendar year shall be an amount equal to the sum of— “(i) the unused State housing credit ceiling (if any) of such State for the preceding calendar year, “(ii) the greater of— “(I) $1.00 multiplied by the State population, or “(II) $1,500,000, plus “(iii) the amount of State housing credit ceiling returned in the calendar year.
- For purposes of clause (i), the unused State housing credit ceiling for any calendar year is the excess (if any) of the sum of the amounts described in clauses (ii) (reduced by the aggregate amounts described in paragraph (10)(A)(i) with respect to all elections made for such calendar year) and (iii) over the aggregate housing credit dollar amount allocated for such year.
- For purposes of clause (iii), the amount of State housing credit ceiling returned in the calendar year equals the housing credit dollar amount previously allocated within the State to any project which fails to meet the 10 percent test under paragraph (1)(E)(ii) on a date after the close of the calendar year in which the allocation was made or which does not become a qualified working families housing project within the period required by this section or the terms of the allocation or to any project with respect to which an allocation is cancelled by mutual consent of the housing credit agency and the allocation recipient.
- “(F) COST-OF-LIVING ADJUSTMENT.— “(i) IN GENERAL.—In the case of a calendar year after 2026, the $1,500,000 and $1.00 amounts in subparagraph (C) shall each be increased by an amount equal to— “(I) such dollar amount, multiplied by “(II) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 2025’ for ‘calendar year 2016’ in subparagraph (A)(ii) thereof.
- “(ii) ROUNDING.— “(I) In the case of the $1,140,000 amount, any increase under clause (i) which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000.
- In the case of the $1.00 amount, any increase under clause (i) which is not a multiple of 5 cents shall be rounded to the next lowest multiple of 5 cents.
- “(C) ALLOCATION OF CREDIT MAY NOT EXCEED AMOUNT NECESSARY TO SUPPORT COMMITMENT.—The housing credit dollar amount allocated to any building may not exceed the amount necessary to support the applicable fraction specified in the extended working families housing commitment for such building, including any increase in such fraction pursuant to the application of subsection (f)(3) if such increase is reflected in an amended working families housing commitment.
- “(6) SPECIAL RULES.— “(A) BUILDING MUST BE LOCATED WITHIN JURISDICTION OF CREDIT AGENCY.—A housing credit agency may allocate its aggregate housing credit dollar amount only to buildings located in the jurisdiction of the governmental unit of which such agency is a part.
- “(B) AGENCY ALLOCATIONS IN EXCESS OF LIMIT.—If the aggregate housing credit dollar amounts allocated by a housing credit agency for any calendar year exceed the portion of the State housing credit ceiling allocated to such agency for such calendar year, the housing credit dollar amounts so allocated shall be reduced (to the extent of such excess) for buildings in the reverse of the order in which the allocations of such amounts were made.
- IF ALLOCATED CREDIT DOLLAR AMOUNT IS LESS THAN CREDIT WHICH WOULD BE ALLOWABLE WITHOUT REGARD TO PLACED IN SERVICE CONVENTION, ETC.— “(i) IN GENERAL.—The amount of the credit determined under this section with respect to any building shall not exceed the clause (ii) percentage of the amount of the credit which would (but for this subparagraph) be determined under this section with respect to such building.
- “(ii) DETERMINATION OF PERCENTAGE.—For purposes of clause (i), the clause (ii) percentage with respect to any building is the percentage which— “(I) the housing credit dollar amount allocated to such building, bears to “(II) the credit amount determined in accordance with clause (iii).
- “(D) HOUSING CREDIT AGENCY TO SPECIFY APPLICABLE PERCENTAGE AND MAXIMUM QUALIFIED BASIS.—In allocating a housing credit dollar amount to any building, the housing credit agency shall specify the applicable percentage and the maximum qualified basis which may be taken into account under this section with respect to such building.
- — “(1) PLANS FOR ALLOCATION OF CREDIT AMONG PROJECTS.— “(A) IN GENERAL.—Notwithstanding any other provision of this section, the housing credit dollar amount with respect to any building shall be zero unless— “(i) such amount was allocated pursuant to a qualified allocation plan of the housing credit agency which is approved by the governmental unit (in accordance with rules similar to the rules of section 42(m)(1)) of which such agency is a part, “(ii) a comprehensive market study of the housing needs of working family individuals in the area to be served by the project is conducted before the credit allocation is made and at the developer's expense by a disinterested party who is approved by such agency, and “(iii) a written explanation is available to the general public for any allocation of a housing credit dollar amount which is not made in accordance with established priorities and selection criteria of the housing credit agency.
- PLAN.—For purposes of this paragraph, the term ‘qualified allocation plan’ means any plan— “(i) which sets forth selection criteria to be used to determine housing priorities of the housing credit agency which are appropriate to local conditions, “(ii) which also gives preference in allocating housing credit dollar amounts among selected projects to— “(I) projects obligated to serve qualified tenants for the longest periods, “(II) projects in areas with insufficient supply of housing affordable to median income households, “(III) projects which target housing to tenants at a range of incomes between 60 and 100 percent of area median gross income, and “(IV) projects located near transit hubs, and “(iii) which provides a procedure that the agency (or an agent or other private contractor of such agency) will follow in monitoring for noncompliance with the provisions of this section and in notifying the Internal Revenue Service of such noncompliance which such agency becomes aware of and in monitoring for noncompliance with habitability standards through regular site visits.
- “(D) CERTAIN SELECTION CRITERIA PROHIBITED.—The selection criteria set forth in a qualified allocation plan shall not include a requirement of local approval or local contributions, either as a threshold qualification requirement or as part of a point system to be considered for allocations of housing credit dollar amount.
- “(2) CREDIT ALLOCATED TO BUILDING NOT TO EXCEED AMOUNT NECESSARY TO ASSURE PROJECT FEASIBILITY.— “(A) IN GENERAL.—The housing credit dollar amount allocated to a project shall not exceed the amount the housing credit agency determines is necessary for the financial feasibility of the project and its viability as a qualified working families housing project throughout the credit period.
- “(B) AGENCY EVALUATION.—In making the determination under subparagraph (A), the housing credit agency shall consider— “(i) the sources and uses of funds and the total financing planned for the project, “(ii) any proceeds or receipts expected to be generated by reason of tax benefits, “(iii) the percentage of the housing credit dollar amount used for project costs other than the cost of intermediaries, and “(iv) the reasonableness of the developmental and operational costs of the project.
- “(C) DETERMINATION MADE WHEN CREDIT AMOUNT APPLIED FOR AND WHEN BUILDING PLACED IN SERVICE.— “(i) IN GENERAL.—A determination under subparagraph (A) shall be made as of each of the following times: “(I) The application for the housing credit dollar amount.
- The allocation of the housing credit dollar amount.
42A. Working families housing credit Read Opens in new tab
Summary AI
The section establishes a tax credit for working families to help reduce housing costs, specifically offering a credit calculated based on specific percentages of a building’s qualified basis. It outlines criteria and rules governing the allocation and calculation of this credit, including requirements about the income limits for tenants, project eligibility, and the responsibilities of housing credit agencies.
Money References
- (b) Applicable percentage.— (1) DETERMINATION OF APPLICABLE PERCENTAGE.—For purposes of this section— (A) IN GENERAL.—The term “applicable percentage” means, with respect to any building, the appropriate percentage prescribed by the Secretary for the earlier of— (i) the month in which such building is placed in service, or (ii) at the election of the taxpayer, the month in which the taxpayer and the housing credit agency enter into an agreement with respect to such building (which is binding on such agency, the taxpayer, and all successors in interest) as to the housing credit dollar amount to be allocated to such building.
- The requirement of this subclause is met if the qualified basis attributable to such amount, when divided by the number of working families units in the building, is equal to or greater than the dollar amount in effect under section 42(e)(3)(A)(ii)(II) for the calendar year in which such expenditures are treated as placed in service under paragraph (4).
- (B) ACQUISITION CREDIT ALLOWED FOR CERTAIN BUILDINGS NOT ALLOWED A REHABILITATION CREDIT.— (i) IN GENERAL.—In the case of a building described in clause (ii)— (I) subsection (d)(2)(B)(iv) shall not apply, and (II) the credit period for such building shall not begin before the taxable year which would be the 1st taxable year of the credit period for rehabilitation expenditures with respect to the building under the modifications described in clause (ii)(II). (ii) BUILDING DESCRIBED.—A building is described in this clause if— (I) a waiver is granted under subsection (d)(4) with respect to the acquisition of the building, and (II) a credit would be allowed for rehabilitation expenditures with respect to such building if subsection (e)(3)(A)(ii)(I) did not apply and if the dollar amount in effect under subsection (e)(3)(A)(ii)(II) were two-thirds of such amount.
- (h) Limitation on aggregate credit allowable with respect to projects located in a State.— (1) CREDIT MAY NOT EXCEED CREDIT AMOUNT ALLOCATED TO BUILDING.— (A) IN GENERAL.—The amount of the credit determined under this section for any taxable year with respect to any building shall not exceed the housing credit dollar amount allocated to such building under this subsection. (B) TIME FOR MAKING ALLOCATION.—Except in the case of an allocation which meets the requirements of subparagraph (C), (D), (E), or (F), an allocation shall be taken into account under subparagraph (A) only if it is made not later than the close of the calendar year in which the building is placed in service.
- (C) EXCEPTION WHERE BINDING COMMITMENT.—An allocation meets the requirements of this subparagraph if there is a binding commitment (not later than the close of the calendar year in which the building is placed in service) by the housing credit agency to allocate a specified housing credit dollar amount to such building beginning in a specified later taxable year.
- (iii) HOUSING CREDIT DOLLAR AMOUNT REDUCED BY FULL ALLOCATION.—Notwithstanding clause (i), the full amount of the allocation shall be taken into account under paragraph (2).
- ALLOCATION YEAR.—Any housing credit dollar amount allocated to any building for any calendar year— (A) shall apply to such building for all taxable years in the credit period ending during or after such calendar year, and (B) shall reduce the aggregate housing credit dollar amount of the allocating agency only for such calendar year.
- (3) HOUSING CREDIT DOLLAR AMOUNT FOR AGENCIES.
- aggregate housing credit dollar amount which a housing credit agency may allocate for any calendar year is the portion of the State housing credit ceiling allocated under this paragraph for such calendar year to such agency.
- (C) STATE HOUSING CREDIT CEILING.—The State housing credit ceiling applicable to any State for any calendar year shall be an amount equal to the sum of— (i) the unused State housing credit ceiling (if any) of such State for the preceding calendar year, (ii) the greater of— (I) $1.00 multiplied by the State population, or (II) $1,500,000, plus (iii) the amount of State housing credit ceiling returned in the calendar year.
- For purposes of clause (i), the unused State housing credit ceiling for any calendar year is the excess (if any) of the sum of the amounts described in clauses (ii) (reduced by the aggregate amounts described in paragraph (10)(A)(i) with respect to all elections made for such calendar year) and (iii) over the aggregate housing credit dollar amount allocated for such year.
- For purposes of clause (iii), the amount of State housing credit ceiling returned in the calendar year equals the housing credit dollar amount previously allocated within the State to any project which fails to meet the 10 percent test under paragraph (1)(E)(ii) on a date after the close of the calendar year in which the allocation was made or which does not become a qualified working families housing project within the period required by this section or the terms of the allocation or to any project with respect to which an allocation is cancelled by mutual consent of the housing credit agency and the allocation recipient.
- (F) COST-OF-LIVING ADJUSTMENT.— (i) IN GENERAL.—In the case of a calendar year after 2026, the $1,500,000 and $1.00 amounts in subparagraph (C) shall each be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting “calendar year 2025” for “calendar year 2016” in subparagraph (A)(ii) thereof.
- In the case of the $1,140,000 amount, any increase under clause (i) which is not a multiple of $5,000 shall be rounded to the next lowest multiple of $5,000.
- In the case of the $1.00 amount, any increase under clause (i) which is not a multiple of 5 cents shall be rounded to the next lowest multiple of 5 cents.
- (C) ALLOCATION OF CREDIT MAY NOT EXCEED AMOUNT NECESSARY TO SUPPORT COMMITMENT.—The housing credit dollar amount allocated to any building may not exceed the amount necessary to support the applicable fraction specified in the extended working families housing commitment for such building, including any increase in such fraction pursuant to the application of subsection (f)(3) if such increase is reflected in an amended working families housing commitment.
- (6) SPECIAL RULES.— (A) BUILDING MUST BE LOCATED WITHIN JURISDICTION OF CREDIT AGENCY.—A housing credit agency may allocate its aggregate housing credit dollar amount only to buildings located in the jurisdiction of the governmental unit of which such agency is a part.
- (B) AGENCY ALLOCATIONS IN EXCESS OF LIMIT.—If the aggregate housing credit dollar amounts allocated by a housing credit agency for any calendar year exceed the portion of the State housing credit ceiling allocated to such agency for such calendar year, the housing credit dollar amounts so allocated shall be reduced (to the extent of such excess) for buildings in the reverse of the order in which the allocations of such amounts were made.
- (C) CREDIT REDUCED IF ALLOCATED CREDIT DOLLAR AMOUNT IS LESS THAN CREDIT WHICH WOULD BE ALLOWABLE WITHOUT REGARD TO PLACED IN SERVICE CONVENTION, ETC.— (i) IN GENERAL.—The amount of the credit determined under this section with respect to any building shall not exceed the clause (ii) percentage of the amount of the credit which would (but for this subparagraph) be determined under this section with respect to such building.
- (ii) DETERMINATION OF PERCENTAGE.—For purposes of clause (i), the clause (ii) percentage with respect to any building is the percentage which— (I) the housing credit dollar amount allocated to such building, bears to (II) the credit amount determined in accordance with clause (iii).
- (D) HOUSING CREDIT AGENCY TO SPECIFY APPLICABLE PERCENTAGE AND MAXIMUM QUALIFIED BASIS.—In allocating a housing credit dollar amount to any building, the housing credit agency shall specify the applicable percentage and the maximum qualified basis which may be taken into account under this section with respect to such building.
- — (1) PLANS FOR ALLOCATION OF CREDIT AMONG PROJECTS.— (A) IN GENERAL.—Notwithstanding any other provision of this section, the housing credit dollar amount with respect to any building shall be zero unless— (i) such amount was allocated pursuant to a qualified allocation plan of the housing credit agency which is approved by the governmental unit (in accordance with rules similar to the rules of section 42(m)(1)) of which such agency is a part, (ii) a comprehensive market study of the housing needs of working family individuals in the area to be served by the project is conducted before the credit allocation is made and at the developer's expense by a disinterested party who is approved by such agency, and (iii) a written explanation is available to the general public for any allocation of a housing credit dollar amount which is not made in accordance with established priorities and selection criteria of the housing credit agency.
- PLAN.—For purposes of this paragraph, the term “qualified allocation plan” means any plan— (i) which sets forth selection criteria to be used to determine housing priorities of the housing credit agency which are appropriate to local conditions, (ii) which also gives preference in allocating housing credit dollar amounts among selected projects to— (I) projects obligated to serve qualified tenants for the longest periods, (II) projects in areas with insufficient supply of housing affordable to median income households, (III) projects which target housing to tenants at a range of incomes between 60 and 100 percent of area median gross income, and (IV) projects located near transit hubs, and (iii) which provides a procedure that the agency (or an agent or other private contractor of such agency) will follow in monitoring for noncompliance with the provisions of this section and in notifying the Internal Revenue Service of such noncompliance which such agency becomes aware of and in monitoring for noncompliance with habitability standards through regular site visits.
- PROHIBITED.—The selection criteria set forth in a qualified allocation plan shall not include a requirement of local approval or local contributions, either as a threshold qualification requirement or as part of a point system to be considered for allocations of housing credit dollar amount.
- (2) CREDIT ALLOCATED TO BUILDING NOT TO EXCEED AMOUNT NECESSARY TO ASSURE PROJECT FEASIBILITY.— (A) IN GENERAL.—The housing credit dollar amount allocated to a project shall not exceed the amount the housing credit agency determines is necessary for the financial feasibility of the project and its viability as a qualified working families housing project throughout the credit period.
- (B) AGENCY EVALUATION.—In making the determination under subparagraph (A), the housing credit agency shall consider— (i) the sources and uses of funds and the total financing planned for the project, (ii) any proceeds or receipts expected to be generated by reason of tax benefits, (iii) the percentage of the housing credit dollar amount used for project costs other than the cost of intermediaries, and (iv) the reasonableness of the developmental and operational costs of the project.
- The application for the housing credit dollar amount.
- The allocation of the housing credit dollar amount.
4. Loans and grants for infrastructure projects in connection with qualified working families housing projects Read Opens in new tab
Summary AI
The section outlines that the Secretary will provide grants and low-interest loans to local governments in rural and exurban areas for infrastructure projects related to housing for working families. These projects can include services like electricity and roads, with a focus on clean energy, and there's a $100 million budget authorized for these efforts.
Money References
- (d) Authorization of appropriations.—There are authorized to be appropriated $100,000,000 to carry out the purposes of this section.