I
119THCONGRESS
1
STSESSION H. R. 2725
To amend the Internal Revenue Code of 1986 to reform the low-income
housing credit, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL8, 2025
Mr. L
AHOOD(for himself, Ms. DELBENE, Ms. TENNEY, Mr. BEYER, Mr.
F
EENSTRA, Mr. PANETTA, Mr. BUCHANAN, Mr. LARSONof Connecticut,
Mr. K
ELLYof Pennsylvania, Mr. DAVISof Illinois, Mr. ESTES, Ms.
S
A´NCHEZ, Mrs. MILLERof West Virginia, Ms. SEWELL, Mr. MURPHY,
Ms. C
HU, Mr. KUSTOFF, Ms. MOOREof Wisconsin, Mr. FITZPATRICK,
Mr. E
VANSof Pennsylvania, Mr. MOOREof Utah, Mr. SCHNEIDER, Ms.
M
ALLIOTAKIS, Mr. GOMEZ, Mr. CAREY, Mr. HORSFORD, Mr. YAKYM, Mr.
S
UOZZI, Mr. MILLERof Ohio, Mr. LIEU, Mr. EMMER, Mr. NEGUSE, Mr.
H
UDSON, Mr. MRVAN, Mr. RESCHENTHALER, Ms. MCCOLLUM, Mrs.
H
OUCHIN, Ms. MCBRIDE, Mr. FLOOD, Ms. KELLYof Illinois, Mr.
F
INSTAD, Ms. SCHAKOWSKY, Mr. KILEYof California, Ms. OMAR, Ms.
S
ALAZAR, Mr. PETERS, Mr. HUIZENGA, Mrs. RAMIREZ, Mr. BALDERSON,
Ms. B
UDZINSKI, Mr. MOOLENAAR, Mr. PAPPAS, Mr. GOODEN, Mrs.
B
EATTY, Mr. LAMALFA, Mr. GARCIAof California, Mr. BERGMAN, Ms.
G
OODLANDER, Mr. FLEISCHMANN, Mrs. DINGELL, Mrs. KIM, Mr.
C
ASTEN, Mr. GARBARINO, Ms. DEGETTE, Mr. COLE, Mr. VARGAS, Mr.
V
ALADAO, Ms. BARRAGA´N, Mr. CARTERof Georgia, Ms. TLAIB, Mr.
W
ALBERG, Mr. BERA, Mr. CALVERT, Mr. COSTA, Mr. ROUZER, Ms.
H
OULAHAN, Mr. BARR, Mr. FOSTER, Mr. LAWLER, Mr. QUIGLEY, Mr.
G
UEST, Ms. DEANof Pennsylvania, Mr. TAYLOR, Mr. GOLDMANof New
York, Mr. E
VANSof Colorado, Mr. MORELLE, Ms. MALOY, Mr. TORRES
of New York, Mr. Z
INKE, Mr. CROW, Mr. SESSIONS, Ms. PETTERSEN,
Mr. I
SSA, Mr. MULLIN, Mr. NUNNof Iowa, Mr. VASQUEZ, Mr.
L
ANGWORTHY, Ms. STEVENS, Mr. GUTHRIE, Mr. CLEAVER, Mrs.
H
INSON, Mr. DELUZIO, Mr. WITTMAN, Mr. MAGAZINER, Mr. JOHNSON
of South Dakota, Ms. M
ATSUI, Mrs. KIGGANSof Virginia, Mr.
T
HANEDAR, Mr. COMER, Mrs. MCIVER, Mr. ROGERSof Kentucky, Mr.
A
MO, Mr. MANN, Ms. BALINT, Mr. BOST, Mr. HUFFMAN, Mr. EZELL,
Ms. C
RAIG, and Mr. STAUBER) introduced the following bill; which was
referred to the Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to reform
the low-income housing credit, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) S
HORTTITLE.—This Act may be cited as the 4
‘‘Affordable Housing Credit Improvement Act of 2025’’. 5
(b) T
ABLE OFCONTENTS.—The table of contents for 6
this Act is as follows: 7
Sec. 1. Short title; table of contents.
TITLE I—REFORM OF STATE ALLOCATION FORMULAS
Sec. 101. Increases in State allocations.
TITLE II—REFORMS RELATING TO TENANT ELIGIBILITY
Sec. 201. Average income test applicability to exempt facility bonds.
Sec. 202. Codification of rules relating to increased tenant income.
Sec. 203. Modification of student occupancy rules.
Sec. 204. Tenant voucher payments taken into account as rent for certain pur-
poses.
Sec. 205. Requirement that low-income housing credit-supported housing pro-
tect victims of domestic abuse.
Sec. 206. Clarification of general public use requirement relating to veterans,
etc.
TITLE III—RULES RELATING TO CREDIT ELIGIBILITY AND
DETERMINATION
Sec. 301. Reconstruction or replacement period after casualty loss.
Sec. 302. Modification of previous ownership rules; limitation on acquisition
basis.
Sec. 303. Certain relocation costs taken into account as rehabilitation expendi-
tures.
Sec. 304. Repeal of qualified census tract population cap.
Sec. 305. Determination of community revitalization plan to be made by hous-
ing credit agency.
Sec. 306. Prohibition of local approval and contribution requirements.
Sec. 307. Increase in credit for certain projects designated to serve extremely
low-income households.
Sec. 308. Increase in credit for bond-financed projects designated by State
agency.
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Sec. 309. Elimination of basis reduction for low-income housing properties en-
ergy efficient commercial building deduction.
Sec. 310. Restriction of planned foreclosures.
Sec. 311. Increase of population cap for difficult development areas.
Sec. 312. Increased cost oversight and accountability.
Sec. 313. Tax-exempt bond financing requirement.
TITLE IV—REFORMS RELATING TO NATIVE AMERICAN
ASSISTANCE
Sec. 401. Selection criteria under qualified allocation plans.
Sec. 402. Inclusion of Indian areas as difficult development areas for purposes
of certain buildings.
TITLE V—REFORMS RELATING TO RURAL ASSISTANCE
Sec. 501. Inclusion of rural areas as difficult development areas.
Sec. 502. Uniform income eligibility for rural projects.
TITLE VI—EXEMPT FACILITY BONDS
Sec. 601. Revision and clarification of the treatment of refunding issues.
TITLE VII—AFFORDABLE HOUSING TAX CREDIT
Sec. 701. Affordable housing tax credit.
TITLE VIII—DATA AND TRANSPARENCY
Sec. 801. Sense of Congress.
TITLE I—REFORM OF STATE 1
ALLOCATION FORMULAS 2
SEC. 101. INCREASES IN STATE ALLOCATIONS. 3
(a) I
NGENERAL.—Clause (ii) of section 42(h)(3)(C) 4
of the Internal Revenue Code of 1986 is amended— 5
(1) in subclause (I), by striking ‘‘$1.75’’ and 6
inserting ‘‘the per capita amount’’, and 7
(2) in subclause (II), by striking ‘‘$2,000,000’’ 8
and inserting ‘‘the minimum amount’’. 9
(b) P
ERCAPITAAMOUNT; MINIMUMAMOUNT.—Sec-10
tion 42(h)(3) of the Internal Revenue Code of 1986 is 11
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amended by striking subparagraphs (H) and (I) and in-1
serting the following: 2
‘‘(H) P
ER CAPITA AMOUNT.—For purposes 3
of subparagraph (C)(ii)(I), the per capita 4
amount shall be determined as follows: 5
‘‘(i) C
ALENDAR YEAR 2025.—For cal-6
endar year 2025, the per capita amount is 7
$4.25. 8
‘‘(ii) C
ALENDAR YEAR 2026.—For cal-9
endar year 2026, the per capita amount is 10
the product of— 11
‘‘(I) 1.25, and 12
‘‘(II) the dollar amount under 13
clause (i) increased by an amount 14
equal to— 15
‘‘(aa) such dollar amount, 16
multiplied by 17
‘‘(bb) the cost-of-living ad-18
justment determined under sec-19
tion 1(f)(3) for such calendar 20
year, determined by substituting 21
‘calendar year 2024’ for ‘cal-22
endar year 2016’ in subpara-23
graph (A)(ii) thereof. 24
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If the amount determined after appli-1
cation of the preceding sentence is not 2
a multiple of $5,000, such amount 3
shall be rounded to the next lowest 4
multiple of $5,000. 5
‘‘(iii) C
ALENDAR YEARS AFTER 6
2026.—In the case of any calendar year 7
after 2026, the per capita amount is the 8
dollar amount determined under clause (ii) 9
increased by an amount equal to— 10
‘‘(I) such dollar amount, multi-11
plied by 12
‘‘(II) the cost-of-living adjust-13
ment determined under section 1(f)(3) 14
for such calendar year, determined by 15
substituting ‘calendar year 2025’ for 16
‘calendar year 2016’ in subparagraph 17
(A)(ii) thereof. 18
Any amount increased under the preceding 19
sentence which is not a multiple of 5 cents 20
shall be rounded to the next lowest mul-21
tiple of 5 cents. 22
‘‘(I) M
INIMUM AMOUNT.—For purposes of 23
subparagraph (C)(ii)(II), the minimum amount 24
shall be determined as follows: 25
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‘‘(i) CALENDAR YEAR 2025.—For cal-1
endar year 2025, the minimum amount is 2
$4,876,000. 3
‘‘(ii) C
ALENDAR YEAR 2026.—For cal-4
endar year 2026, the minimum amount is 5
the product of— 6
‘‘(I) 1.25, and 7
‘‘(II) the dollar amount under 8
clause (i) increased by an amount 9
equal to— 10
‘‘(aa) such dollar amount, 11
multiplied by 12
‘‘(bb) the cost-of-living ad-13
justment determined under sec-14
tion 1(f)(3) for such calendar 15
year, determined by substituting 16
‘calendar year 2024’ for ‘cal-17
endar year 2016’ in subpara-18
graph (A)(ii) thereof. 19
If the amount determined after appli-20
cation of the preceding sentence is not 21
a multiple of 5 cents, such amount 22
shall be rounded to the next lowest 23
multiple of 5 cents. 24
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‘‘(iii) CALENDAR YEARS AFTER 1
2026.—In the case of any calendar year 2
after 2026, the minimum amount is the 3
dollar amount determined under clause (ii) 4
increased by an amount equal to— 5
‘‘(I) such dollar amount, multi-6
plied by 7
‘‘(II) the cost-of-living adjust-8
ment determined under section 1(f)(3) 9
for such calendar year, determined by 10
substituting ‘calendar year 2025’ for 11
‘calendar year 2016’ in subparagraph 12
(A)(ii) thereof. 13
Any amount increased under the preceding 14
sentence which is not a multiple of $5,000 15
shall be rounded to the next lowest mul-16
tiple of $5,000.’’. 17
(c) E
FFECTIVEDATE.—The amendments made by 18
this section shall apply to calendar years beginning after 19
December 31, 2024. 20
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TITLE II—REFORMS RELATING 1
TO TENANT ELIGIBILITY 2
SEC. 201. AVERAGE INCOME TEST APPLICABILITY TO EX-3
EMPT FACILITY BONDS. 4
(a) I
NGENERAL.—Paragraph (1) of section 142(d) 5
of the Internal Revenue Code of 1986 is amended— 6
(1) by striking ‘‘(A) or (B)’’ and inserting ‘‘(A), 7
(B), or (C)’’, and 8
(2) by inserting after subparagraph (B) the fol-9
lowing new subparagraph: 10
‘‘(C) A
VERAGE INCOME TEST .—A project 11
meets the requirements of this subparagraph if 12
it meets the minimum requirements of section 13
42(g)(1)(C).’’. 14
(b) E
FFECTIVEDATE.—The amendments made by 15
this section shall apply to elections made under section 16
142(d)(1) of the Internal Revenue Code of 1986 after 17
March 23, 2018. 18
SEC. 202. CODIFICATION OF RULES RELATING TO IN-19
CREASED TENANT INCOME. 20
(a) I
NGENERAL.—Clause (i) of section 42(g)(2)(D) 21
of the Internal Revenue Code of 1986 is amended by strik-22
ing ‘‘clauses (ii), (iii), and (iv)’’ and all that follows and 23
inserting ‘‘clauses (ii), (iii), (iv), and (vi), notwithstanding 24
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an increase in the income of the occupants above the in-1
come limitation applicable under paragraph (1)— 2
‘‘(I) a low-income unit shall con-3
tinue to be treated as a low-income 4
unit if the income of such occupants 5
initially was 60 percent or less of area 6
median gross income and such unit 7
continues to be rent-restricted, and 8
‘‘(II) a unit to which, at the time 9
of initial occupancy by such occu-10
pants, any Federal, State, or local 11
government income restriction ap-12
plied, and which subsequently becomes 13
part of a building with respect to 14
which rehabilitation expenditures are 15
taken into account under subsection 16
(e), shall be treated as a low-income 17
unit if the income of such occupants 18
initially was 60 percent or less of area 19
median gross income and does not ex-20
ceed 120 percent of area median gross 21
income as of the date of acquisition of 22
the property by the taxpayer.’’. 23
(b) E
XCEPTION.—Subparagraph (D) of section 24
42(g)(2) of the Internal Revenue Code of 1986, as amend-25
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ed by this Act, is further amended by adding at the end 1
the following new clause: 2
‘‘(vi) E
XCEPTION TO RULE RELATING 3
TO INCREASED TENANT INCOME .—In the 4
case of an occupant of a low-income unit 5
who initially qualified to occupy such unit 6
by reason of paragraph (1)(C) with an in-7
come in excess of 60 percent of area me-8
dian gross income but not in excess of 80 9
percent of area median gross income, 10
clause (i) shall be applied for substituting 11
‘80 percent’ for ‘60 percent’ each place it 12
appears.’’. 13
(c) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to taxable years beginning after 15
December 31, 2024. 16
SEC. 203. MODIFICATION OF STUDENT OCCUPANCY RULES. 17
(a) I
NGENERAL.—Subparagraph (D) of section 18
42(i)(3) of the Internal Revenue Code of 1986 is amended 19
to read as follows: 20
‘‘(D) R
ULES RELATING TO STUDENTS .— 21
‘‘(i) I
N GENERAL.—A unit occupied 22
solely by individuals who— 23
‘‘(I) have not attained age 24, 24
and 25
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‘‘(II) are enrolled in a full-time 1
course of study at an institution of 2
higher education (as defined in section 3
3304(f)), 4
shall not be treated as a low-income unit. 5
‘‘(ii) E
XCEPTION FOR CERTAIN FED -6
ERAL PROGRAMS.—In the case of a feder-7
ally-assisted building (as defined in sub-8
section (d)(6)(C)(i)), clause (i) shall not 9
apply to a unit all of the occupants of 10
which meet all applicable requirements 11
under the housing program described in 12
such subsection through which the building 13
is assisted, financed, or operated. 14
‘‘(iii) O
THER EXCEPTIONS.—An indi-15
vidual shall not be treated as described in 16
clause (i) if the individual meets the in-17
come limitation applicable under subsection 18
(g)(1) to the project of which the building 19
is a part and— 20
‘‘(I) is married, 21
‘‘(II) is a person with disabilities 22
(as defined in section 3(b)(3)(E) of 23
the United States Housing Act of 24
1937), 25
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‘‘(III) is a veteran (as defined in 1
section 101(2) of title 38, United 2
States Code), 3
‘‘(IV) has 1 or more qualifying 4
children (as defined in section 5
152(c)), 6
‘‘(V) is or has been a victim or 7
threatened victim of domestic violence, 8
dating violence, sexual assault, or 9
stalking (as defined in section 40002 10
of the Violence Against Women Act of 11
1994), 12
‘‘(VI) is or has been a victim of 13
any form of human trafficking, or 14
‘‘(VII) is, or was prior to attain-15
ing the age of majority— 16
‘‘(aa) an emancipated minor 17
or in legal guardianship as deter-18
mined by a court of competent 19
jurisdiction in the individual’s 20
State of legal residence, 21
‘‘(bb) under the care and 22
placement responsibility of the 23
State agency responsible for ad-24
ministering a plan under part B 25
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or part E of title IV of the Social 1
Security Act, or 2
‘‘(cc) an unaccompanied 3
youth (within the meaning of sec-4
tion 725(6) of the McKinney- 5
Vento Homeless Assistance Act 6
(42 U.S.C. 11434a(6))) or a 7
homeless child or youth (within 8
the meaning of section 725(2) of 9
such Act (42 U.S.C. 10
11434a(2))). 11
For purposes of subclause (VI), an in-12
dividual is or has been a victim of 13
human trafficking if such individual 14
was subjected to an act or practice de-15
scribed in paragraph (11) or (12) of 16
section 103 of the Trafficking Victims 17
Protection Act of 2000.’’. 18
(b) E
FFECTIVEDATE.—The amendment made by 19
this section shall apply to taxable years beginning after 20
December 31, 2025. 21
SEC. 204. TENANT VOUCHER PAYMENTS TAKEN INTO AC-22
COUNT AS RENT FOR CERTAIN PURPOSES. 23
(a) I
NGENERAL.—Subparagraph (B) of section 24
42(g)(2) of the Internal Revenue Code of 1986 is amended 25
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by adding at the end the following new sentence: ‘‘In the 1
case of a project with respect to which the taxpayer elects 2
the requirements of subparagraph (C) of paragraph (1), 3
or the portion of a project to which subsection (d)(5)(C) 4
applies, clause (i) shall not apply with respect to any ten-5
ant-based assistance (as defined in section 8(f)(7) of the 6
United States Housing Act of 1937 (42 U.S.C. 7
1437f(f)(7))).’’. 8
(b) E
FFECTIVEDATE.—The amendments made by 9
this section shall apply to rent paid in taxable years begin-10
ning after December 31, 2025. 11
SEC. 205. REQUIREMENT THAT LOW-INCOME HOUSING 12
CREDIT-SUPPORTED HOUSING PROTECT VIC-13
TIMS OF DOMESTIC ABUSE. 14
(a) I
NGENERAL.—Subparagraph (B) of section 15
42(h)(6) of the Internal Revenue Code of 1986 is amended 16
by striking ‘‘and’’ at the end of clause (v), by striking the 17
period at the end of clause (vi) and inserting ‘‘, and’’, and 18
by adding at the end the following new clause: 19
‘‘(vii) which— 20
‘‘(I) prohibits the refusal to lease 21
to, or termination of a lease by, a per-22
son solely on the basis of criminal ac-23
tivity directly relating to domestic vio-24
lence, dating violence, sexual assault, 25
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or stalking that is engaged in by a 1
member of the household of the ten-2
ant or any guest or other person 3
under the control of the tenant, if the 4
tenant or an affiliated individual of 5
the tenant is the victim or threatened 6
victim of such domestic violence, dat-7
ing violence, sexual assault, or stalk-8
ing, and 9
‘‘(II) allows prospective, present, 10
or former occupants of the building 11
the right to enforce in any State court 12
the prohibition of subclause (I).’’. 13
(b) B
IFURCATION.— 14
(1) I
N GENERAL.—Subparagraph (B) of section 15
42(h)(6) of the Internal Revenue Code of 1986, as 16
amended by subsection (a), is further amended by 17
adding at the end the following new flush sentence: 18
‘‘For purposes of clause (vii)(I), rules similar to 19
the rules of section 41411(b)(3)(B) of the Vio-20
lence Against Women Act of 1994 shall apply 21
with respect to the owner or manager of a 22
building.’’. 23
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(2) EFFECT OF BIFURCATION .—Paragraph (2) 1
of section 42(g) of such Code is amended by adding 2
at the end the following new subparagraph: 3
‘‘(F) T
REATMENT OF BIFURCATION IN 4
CASES OF DOMESTIC VIOLENCE .—In any case 5
in which— 6
‘‘(i) an occupant is evicted or removed 7
from a low-income unit because such occu-8
pant has engaged in criminal activity di-9
rectly relating to domestic violence, dating 10
violence, sexual assault, or stalking against 11
an affiliated individual or other individual 12
on the basis of criminal activity directly re-13
lating to domestic violence, dating violence, 14
sexual assault, or stalking, and 15
‘‘(ii) the lease on such unit is bifur-16
cated as provided in the last sentence of 17
subsection (h)(6)(B), 18
then the remaining occupants of such low-in-19
come unit shall not be treated as a new tenant 20
for purposes of this section.’’. 21
(c) C
LARIFICATION OFGENERALPUBLICUSERE-22
QUIREMENT.—Paragraph (9) of section 42(g) of the Inter-23
nal Revenue Code of 1986 is amended by striking ‘‘or’’ 24
at the end of subparagraph (B), by striking the period 25
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at the end of subparagraph (C) and inserting ‘‘, or’’, and 1
by adding at the end the following new subparagraph: 2
‘‘(D) who are victims or threatened victims 3
of criminal activity directly relating to domestic 4
violence, dating violence, sexual assault, or 5
stalking.’’. 6
(d) E
FFECTIVEDATES.— 7
(1) I
N GENERAL.—Except as provided in para-8
graph (2), the amendments made by this section 9
shall apply to agreements executed or modified on or 10
after the date that is 30 days after the date of the 11
enactment of this Act. 12
(2) P
UBLIC USE REQUIREMENT .—The amend-13
ments made by subsection (c) shall apply to build-14
ings placed in service before, on, or after the date 15
of the enactment of this Act. 16
SEC. 206. CLARIFICATION OF GENERAL PUBLIC USE RE-17
QUIREMENT RELATING TO VETERANS, ETC. 18
(a) I
NGENERAL.—Paragraph (9) of section 42(g) of 19
the Internal Revenue Code of 1986, as amended by section 20
205, is further amended by adding at the end the following 21
flush language: 22
‘‘Any veteran of the Armed Forces shall be treated 23
as a member of a specified group under a Federal 24
program for purposes of subparagraph (B).’’. 25
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(b) QUALIFIEDRESIDENTIALRENTALPROJECTS.— 1
Paragraph (2) of section 142(d) of the Internal Revenue 2
Code of 1986 is amended by adding at the end the fol-3
lowing new subparagraph: 4
‘‘(F) C
LARIFICATION OF GENERAL PUBLIC 5
USE REQUIREMENT .—A unit shall not fail to 6
meet the general public use requirement solely 7
because of occupancy restrictions or pref-8
erences, if such restrictions or preferences meet 9
the general public use requirement of section 10
42.’’. 11
(c) E
FFECTIVEDATES.— 12
(1) I
N GENERAL.—The amendment made by 13
subsection (a) shall apply to buildings placed in serv-14
ice before, on, or after the date of the enactment of 15
this Act. 16
(2) Q
UALIFIED RESIDENTIAL RENTAL 17
PROJECTS.—The amendment made by subsection (b) 18
shall apply to bonds issued before, on, or after the 19
date of the enactment of this Act. 20
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TITLE III—RULES RELATING TO 1
CREDIT ELIGIBILITY AND DE-2
TERMINATION 3
SEC. 301. RECONSTRUCTION OR REPLACEMENT PERIOD 4
AFTER CASUALTY LOSS. 5
(a) N
ORECAPTUREFOLLOWINGCASUALTYLOSS.— 6
Subparagraph (E) of section 42(j)(4) of the Internal Rev-7
enue Code of 1986 is amended to read as follows: 8
‘‘(E) N
O RECAPTURE BY REASON OF CAS -9
UALTY LOSS.— 10
‘‘(i) I
N GENERAL.—The increase in 11
tax under this subsection shall not apply to 12
a reduction in qualified basis by reason of 13
a casualty loss to the extent such loss is 14
restored by reconstruction or replacement 15
within a reasonable period established by 16
the applicable housing credit agency, not to 17
exceed 25 months from the date on which 18
the qualified casualty loss arises. 19
‘‘(ii) Q
UALIFIED CASUALTY LOSSES .— 20
In the case of a qualified casualty loss, the 21
period described in clause (i) may be ex-22
tended, but not in excess of 12 months, if 23
the applicable housing credit agency deter-24
mines the qualified casualty arose by rea-25
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son of an event which was not discrete to 1
the building and which made a reconstruc-2
tion or replacement within 25 months im-3
practical. In the event the applicable hous-4
ing credit agency determines a period in 5
excess of 25 months is necessary for such 6
reconstruction or replacement, the compli-7
ance period shall be increased by any such 8
additional time. 9
‘‘(iii) A
PPLICATION.—The determina-10
tion under paragraph (1) shall not be 11
made with respect to a property the basis 12
of which is affected by a qualified casualty 13
loss until the period described in clause (i) 14
(as modified by clause (ii), if applicable) 15
with respect to such property has expired. 16
‘‘(iv) Q
UALIFIED CASUALTY LOSS .— 17
For purposes of this subparagraph, the 18
term ‘qualified casualty loss’ means a cas-19
ualty loss that is the result of a federally 20
declared disaster (as defined in section 21
165(i)(5)).’’. 22
(b) Q
UALIFIEDBASISFOLLOWING CASUALTY 23
L
OSS.—Paragraph (1) of section 42(c) of the Internal 24
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Revenue Code of 1986 is amended by adding at the end 1
the following new subparagraph: 2
‘‘(F) Q
UALIFIED BASIS FOLLOWING CAS -3
UALTY LOSS.—If a casualty causes the qualified 4
basis of a building in any year to be less than 5
the qualified basis in the immediately preceding 6
year then, in the year of such casualty and each 7
succeeding year until such building or the units 8
affected by the casualty are reconstructed or re-9
placed (but only through the last year of the pe-10
riod permitted for reconstruction or replace-11
ment under subsection (j)(4)(E))— 12
‘‘(i) the qualified basis of such build-13
ing shall be equal to the qualified basis of 14
such building as of the last day of the year 15
preceding the year in which such casualty 16
occurred, 17
‘‘(ii) if such building is not recon-18
structed or replaced by the expiration of 19
the applicable period for such reconstruc-20
tion or replacement under subsection 21
(j)(4), then the recapture amount provided 22
for in subsection (j)(1) shall include the 23
amount of any credit claimed under this 24
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section by reason of the application of 1
clause (i), and 2
‘‘(iii) a building which was a qualified 3
low-income building as of the last day of 4
the year preceding the year in which such 5
casualty occurred shall not cease to be a 6
qualified low-income building solely be-7
cause of such casualty.’’. 8
(c) E
FFECTIVEDATE.—The amendments made by 9
this section shall apply to casualties occurring after the 10
date which is 25 months before the date of the enactment 11
of this Act. 12
SEC. 302. MODIFICATION OF PREVIOUS OWNERSHIP RULES; 13
LIMITATION ON ACQUISITION BASIS. 14
(a) I
NGENERAL.—Clause (ii) of section 42(d)(2)(B) 15
of the Internal Revenue Code of 1986 is amended by in-16
serting ‘‘, or the taxpayer elects the application of sub-17
paragraph (C)(ii)’’ after ‘‘service’’. 18
(b) L
IMITATION ONACQUISITIONBASIS.—Subpara-19
graph (C) of section 42(d)(2) of the Internal Revenue 20
Code of 1986 is amended— 21
(1) by striking ‘‘For purposes of subparagraph 22
(A), the adjusted basis’’ and inserting ‘‘For pur-23
poses of subparagraph (A)— 24
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‘‘(i) IN GENERAL.—The adjusted 1
basis’’, and 2
(2) by adding at the end the following new 3
clauses: 4
‘‘(ii) B
UILDINGS IN SERVICE WITHIN 5
PREVIOUS 10 YEARS .—If the period be-6
tween the date of acquisition of the build-7
ing by the taxpayer and the date the build-8
ing was last placed in service is less than 9
10 years, the taxpayer’s basis attributable 10
to the acquisition of the building which is 11
taken into account in determining the ad-12
justed basis shall not exceed the sum of— 13
‘‘(I) the lowest amount paid for 14
acquisition of the building by any per-15
son during the 10 years preceding the 16
date of the acquisition of the building 17
by the taxpayer, adjusted as provided 18
in clause (iii), and 19
‘‘(II) the value of any capital im-20
provements made by the person who 21
sells the building to the taxpayer 22
which are reflected in such seller’s 23
basis. 24
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‘‘(iii) ADJUSTMENT.—With respect to 1
a basis determination made in any taxable 2
year, the amount described in clause (ii)(I) 3
shall be increased by an amount equal to— 4
‘‘(I) such amount, multiplied by 5
‘‘(II) a cost-of-living adjustment, 6
determined in the same manner as 7
under section 1(f)(3) for the calendar 8
year in which the taxable year begins 9
by taking into account the acquisition 10
year in lieu of calendar year 1992. 11
For purposes of the preceding sentence, 12
the acquisition year is the calendar year in 13
which the lowest amount referenced in 14
clause (ii)(I) was paid for the acquisition 15
of the building.’’. 16
(c) C
ONFORMINGAMENDMENTS.—Clause (i) of sec-17
tion 42(d)(2)(D) of the Internal Revenue Code of 1986 18
is amended— 19
(1) by striking ‘‘
FOR SUBPARAGRAPH (B) ’’ in 20
the heading, and 21
(2) by striking ‘‘subparagraph (B)(ii)’’ in the 22
matter preceding subclause (I) and inserting ‘‘sub-23
paragraph (B)(ii) or (C)(ii)’’. 24
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(d) MODIFICATION OFPLACED INSERVICERULE.— 1
Clause (iii) of section 42(d)(2)(B) of the Internal Revenue 2
Code of 1986 is amended to read as follows: 3
‘‘(iii) the building was not owned by 4
the taxpayer or by any person related (as 5
of the date of acquisition by the taxpayer) 6
to the taxpayer at any time during the 5- 7
year period ending on the date of acquisi-8
tion by the taxpayer, and’’. 9
(e) E
FFECTIVEDATE.—The amendments made by 10
this section shall apply to buildings placed in service after 11
December 31, 2024. 12
SEC. 303. CERTAIN RELOCATION COSTS TAKEN INTO AC-13
COUNT AS REHABILITATION EXPENDITURES. 14
(a) I
NGENERAL.—Paragraph (2) of section 42(e) of 15
the Internal Revenue Code of 1986 is amended by adding 16
at the end the following new subparagraph: 17
‘‘(C) C
ERTAIN RELOCATION COSTS .—In 18
the case of a rehabilitation of a building to 19
which section 280B does not apply, costs relat-20
ing to the relocation of occupants, including— 21
‘‘(i) amounts paid to occupants, 22
‘‘(ii) amounts paid to third parties for 23
services relating to such relocation, and 24
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‘‘(iii) amounts paid for temporary 1
housing for occupants, 2
shall be treated as chargeable to capital account 3
and taken into account as rehabilitation ex-4
penditures.’’. 5
(b) E
FFECTIVEDATE.—The amendment made by 6
this section shall apply to expenditures paid or incurred 7
after December 31, 2024. 8
(c) N
OINFERENCE.—Nothing in the amendment 9
made by this section shall be construed to create any infer-10
ence with respect to the treatment of relocation costs paid 11
or incurred before January 1, 2025. 12
SEC. 304. REPEAL OF QUALIFIED CENSUS TRACT POPU-13
LATION CAP. 14
(a) I
NGENERAL.—Clause (ii) of section 42(d)(5)(B) 15
of the Internal Revenue Code of 1986 is amended— 16
(1) by striking subclauses (II) and (III), and 17
(2) by striking ‘‘Q
UALIFIED CENSUS TRACT .— 18
‘‘(I) I
N GENERAL.—The term’’, 19
and inserting ‘‘Q
UALIFIED CENSUS TRACT .—The 20
term’’. 21
(b) E
FFECTIVEDATE.—The amendments made by 22
this section shall apply to designations of qualified census 23
tracts under section 42(d)(5)(B)(ii) of the Internal Rev-24
enue Code of 1986 after December 31, 2025. 25
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SEC. 305. DETERMINATION OF COMMUNITY REVITALIZA-1
TION PLAN TO BE MADE BY HOUSING CREDIT 2
AGENCY. 3
(a) I
NGENERAL.—Subclause (III) of section 4
42(m)(1)(B)(ii) of the Internal Revenue Code of 1986 is 5
amended by inserting ‘‘, as determined by the housing 6
credit agency according to criteria established by such 7
agency,’’ after ‘‘(d)(5)(B)(ii)) and’’. 8
(b) C
RITERIA.—Paragraph (1) of section 42(m) of 9
the Internal Revenue Code of 1986 is amended by adding 10
at the end the following new subparagraph: 11
‘‘(E) C
RITERIA FOR DETERMINATION RE -12
LATING TO CONCERTED COMMUNITY REVITAL -13
IZATION PLAN.—For purposes of subparagraph 14
(B)(ii)(III), the criteria which shall be estab-15
lished by a housing credit agency for deter-16
mining whether the development of a project 17
contributes to a concerted community develop-18
ment plan shall take into account any factors 19
the agency deems appropriate, including the ex-20
tent to which the proposed plan— 21
‘‘(i) is geographically specific, 22
‘‘(ii) outlines a clear plan for imple-23
mentation and goals for outcomes, 24
‘‘(iii) includes a strategy for applying 25
for or obtaining commitments of public or 26
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private investment (or both) in nonhousing 1
infrastructure, amenities, or services, and 2
‘‘(iv) demonstrates the need for com-3
munity revitalization.’’. 4
(c) E
FFECTIVEDATE.—The amendments made by 5
this section shall apply to allocations of housing credit dol-6
lar amounts made under qualified allocation plans (as de-7
fined in section 42(m)(1)(B) of the Internal Revenue Code 8
of 1986) adopted after December 31, 2025. 9
SEC. 306. PROHIBITION OF LOCAL APPROVAL AND CON-10
TRIBUTION REQUIREMENTS. 11
(a) I
NGENERAL.—Paragraph (1) of section 42(m) 12
of the Internal Revenue Code of 1986, as amended by sec-13
tion 305, is further amended— 14
(1) by striking clause (ii) of subparagraph (A) 15
and by redesignating clauses (iii) and (iv) thereof as 16
clauses (ii) and (iii), and 17
(2) by adding at the end the following new sub-18
paragraph: 19
‘‘(F) L
OCAL APPROVAL OR CONTRIBUTION 20
NOT TAKEN INTO ACCOUNT .—The selection cri-21
teria under a qualified allocation plan shall not 22
include consideration of— 23
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‘‘(i) any support or opposition with re-1
spect to the project from local or elected 2
officials, or 3
‘‘(ii) any local government contribu-4
tion to the project, except to the extent 5
such contribution is taken into account as 6
part of a broader consideration of the 7
project’s ability to leverage outside funding 8
sources, and is not prioritized over any 9
other source of outside funding.’’. 10
(b) E
FFECTIVEDATE.—The amendments made by 11
this section shall apply to allocations of housing credit dol-12
lar amounts made under qualified allocation plans (as de-13
fined in section 42(m)(1)(B) of the Internal Revenue Code 14
of 1986) adopted after December 31, 2025. 15
SEC. 307. INCREASE IN CREDIT FOR CERTAIN PROJECTS 16
DESIGNATED TO SERVE EXTREMELY LOW-IN-17
COME HOUSEHOLDS. 18
(a) I
NGENERAL.—Paragraph (5) of section 42(d) of 19
the Internal Revenue Code of 1986 is amended by adding 20
at the end the following new subparagraph: 21
‘‘(C) I
NCREASE IN CREDIT FOR PROJECTS 22
DESIGNATED TO SERVE EXTREMELY LOW -IN-23
COME HOUSEHOLDS .—In the case of any build-24
ing— 25
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‘‘(i) 20 percent or more of the resi-1
dential units (determined as if the imputed 2
income limitation applicable to such units 3
were 30 percent of area median gross in-4
come) in which are designated by the tax-5
payer for occupancy by households the ag-6
gregate household income of which does 7
not exceed the greater of— 8
‘‘(I) 30 percent of area median 9
gross income, or 10
‘‘(II) 100 percent of an amount 11
equal to the Federal poverty line 12
(within the meaning of section 13
36B(d)(3)), and 14
‘‘(ii) which is designated by the hous-15
ing credit agency as requiring the increase 16
in credit under this subparagraph in order 17
for such building to be financially feasible 18
as part of a qualified low-income housing 19
project, 20
subparagraph (B) shall not apply to the portion 21
of such building which is comprised of such 22
units (determined in a manner similar to the 23
unit fraction under subsection (c)(1)(C)), and 24
the eligible basis of such portion of the building 25
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shall be 150 percent of such basis determined 1
without regard to this subparagraph.’’. 2
(b) E
FFECTIVEDATE.—The amendment made by 3
this section shall apply to buildings which receive alloca-4
tions of housing credit dollar amount after the date of en-5
actment of this Act, or in the case of buildings that are 6
described in section 42(h)(4)(B) of the Internal Revenue 7
Code of 1986, for obligations that are part of an issue 8
the issue date of which is after December 31, 2025. 9
SEC. 308. INCREASE IN CREDIT FOR BOND-FINANCED 10
PROJECTS DESIGNATED BY STATE AGENCY. 11
(a) I
NGENERAL.—Clause (v) of section 42(d)(5)(B) 12
of the Internal Revenue Code of 1986 is amended by strik-13
ing the second sentence. 14
(b) T
ECHNICALAMENDMENT.—Clause (v) of section 15
42(d)(5)(B) of the Internal Revenue Code of 1986, as 16
amended by subsection (a), is further amended— 17
(1) by striking ‘‘S
TATE’’ in the heading, and 18
(2) by striking ‘‘State housing credit agency’’ 19
and inserting ‘‘housing credit agency’’. 20
(c) E
FFECTIVEDATE.—The amendments made by 21
this section shall apply to buildings that are described in 22
section 42(h)(4)(B) of the Internal Revenue Code of 1986, 23
taking into account only obligations that are part of an 24
issue the issue date of which is after December 31, 2025. 25
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SEC. 309. ELIMINATION OF BASIS REDUCTION FOR LOW-IN-1
COME HOUSING PROPERTIES ENERGY EFFI-2
CIENT COMMERCIAL BUILDING DEDUCTION. 3
(a) E
NERGYEFFICIENTCOMMERCIALBUILDINGS 4
D
EDUCTION.—Subsection (e) of section 179D of the In-5
ternal Revenue Code of 1986 is amended— 6
(1) by striking ‘‘R
EDUCTION.—For purposes’’ 7
and inserting ‘‘R
EDUCTION.— 8
‘‘(1) I
N GENERAL.—For purposes’’, and 9
(2) by adding at the end the following new 10
paragraph: 11
‘‘(2) E
XCEPTION FOR AFFORDABLE HOUSING 12
PROPERTIES.—Paragraph (1) shall not apply for 13
purposes of determining eligible basis under section 14
42.’’. 15
(b) E
FFECTIVEDATE.—The amendments made by 16
this section shall apply to buildings which receive alloca-17
tions of housing credit dollar amount after the date of the 18
enactment of this Act and to buildings that are described 19
in section 42(h)(4)(B) of the Internal Revenue Code of 20
1986 taking into account only obligations that are part 21
of an issue the issue date of which is after December 31, 22
2025. 23
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SEC. 310. RESTRICTION OF PLANNED FORECLOSURES. 1
(a) I
NGENERAL.—Subclause (I) of section 2
42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is 3
amended to read as follows: 4
‘‘(I) on the 61st day after the 5
taxpayer (or a successor in interest) 6
provides notice to the Secretary and 7
the housing credit agency that the 8
building has been acquired by fore-9
closure (or instrument in lieu of fore-10
closure) and that the taxpayer intends 11
the termination of such period, unless, 12
before such date, the Secretary or the 13
housing credit agency determines that 14
such acquisition is part of an arrange-15
ment with the taxpayer a purpose of 16
which is to terminate such period, 17
or’’. 18
(b) C
ONFORMINGAMENDMENT.—The second sen-19
tence of clause (i) of section 42(h)(6)(E) of the Internal 20
Revenue Code of 1986 is amended by striking ‘‘Subclause 21
(II)’’ and inserting ‘‘Subclauses (I) and (II)’’. 22
(c) E
FFECTIVEDATE.—The amendments made by 23
this section shall apply to acquisitions by foreclosure (or 24
instrument in lieu of foreclosure) after December 31, 25
2024. 26
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SEC. 311. INCREASE OF POPULATION CAP FOR DIFFICULT 1
DEVELOPMENT AREAS. 2
(a) I
NGENERAL.—Subclause (II) of section 3
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 4
amended by striking ‘‘20 percent’’ and inserting ‘‘30 per-5
cent’’. 6
(b) E
FFECTIVEDATE.—The amendment made by 7
this section shall apply to designations made under section 8
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 9
after December 31, 2025. 10
SEC. 312. INCREASED COST OVERSIGHT AND ACCOUNT-11
ABILITY. 12
(a) I
NGENERAL.—Subparagraph (C) of section 13
42(m)(1) of the Internal Revenue Code of 1986 is amend-14
ed by striking ‘‘and’’ at the end of clause (ix), by striking 15
the period at the end of clause (x) and inserting ‘‘, and’’, 16
and by adding at the end the following new clause: 17
‘‘(xi) the reasonableness of the devel-18
opment costs of the project.’’. 19
(b) E
FFECTIVEDATE.—The amendments made by 20
this section shall apply to allocations of credits under sec-21
tion 42 of the Internal Revenue Code of 1986 made after 22
December 31, 2025. 23
SEC. 313. TAX-EXEMPT BOND FINANCING REQUIREMENT. 24
(a) I
NGENERAL.—Subparagraph (B) of section 25
42(h)(4) of the Internal Revenue Code of 1986 is amended 26
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by adding at the end the following new sentence: ‘‘In the 1
case of buildings financed by an obligation first taken into 2
account under section 146 in calendar years beginning 3
after the date of the enactment of the Affordable Housing 4
Credit Improvement Act of 2025, the preceding sentence 5
shall be applied by substituting ‘25 percent’ for ‘50 per-6
cent’.’’. 7
(b) E
FFECTIVEDATE.—The amendment made by 8
this section shall apply to any building some portion of 9
which, or of the land on which the building is located, is 10
financed by an obligation which is described in section 11
42(h)(4)(A) of the Internal Revenue Code of 1986 and 12
which is part of an issue the issue date of which is after 13
December 31, 2025. 14
TITLE IV—REFORMS RELATING 15
TO NATIVE AMERICAN AS-16
SISTANCE 17
SEC. 401. SELECTION CRITERIA UNDER QUALIFIED ALLO-18
CATION PLANS. 19
(a) I
NGENERAL.—Subparagraph (C) of section 20
42(m)(1) of the Internal Revenue Code of 1986, as 21
amended by section 312, is further amended by striking 22
‘‘and’’ at the end of clause (x), by striking the period at 23
the end of clause (xi) and inserting ‘‘, and’’, and by adding 24
at the end the following new clause: 25
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‘‘(xii) the affordable housing needs of 1
individuals in the State who are— 2
‘‘(I) enrolled members of a tribe 3
with respect to an Indian tribal gov-4
ernment (including any agencies or in-5
strumentalities of an Indian tribal 6
government and any Alaska Native re-7
gional or village corporation, as de-8
fined in, or established pursuant to, 9
the Alaska Native Claims Settlement 10
Act (43 U.S.C. 1601 et seq.), or 11
‘‘(II) described in section 801(9) 12
of the Native American Housing As-13
sistance and Self-Determination Act 14
of 1996 (25 U.S.C. 4221(9)).’’. 15
(b) E
FFECTIVEDATE.—The amendments made by 16
this section shall apply to allocations of credits under sec-17
tion 42 of the Internal Revenue Code of 1986 made after 18
December 31, 2025. 19
SEC. 402. INCLUSION OF INDIAN AREAS AS DIFFICULT DE-20
VELOPMENT AREAS FOR PURPOSES OF CER-21
TAIN BUILDINGS. 22
(a) I
NGENERAL.—Subclause (I) of section 23
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986 is 24
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amended by inserting before the period the following: ‘‘, 1
and any Indian area’’. 2
(b) I
NDIANAREA.—Clause (iii) of section 3
42(d)(5)(B) of the Internal Revenue Code of 1986 is 4
amended by redesignating subclause (II) as subclause 5
(III) and by inserting after subclause (I) the following new 6
subclause: 7
‘‘(II) I
NDIAN AREA.—For pur-8
poses of subclause (I), the term ‘In-9
dian area’ means any Indian area (as 10
defined in section 4(11) of the Native 11
American Housing Assistance and 12
Self Determination Act of 1996 (25 13
U.S.C. 4103(11))) and any housing 14
area (as defined in section 801(5) of 15
such Act (25 U.S.C. 4221(5))).’’. 16
(c) E
LIGIBLEBUILDINGS.—Clause (iii) of section 17
42(d)(5)(B) of the Internal Revenue Code of 1986, as 18
amended by subsection (b), is further amended by adding 19
at the end the following new subclause: 20
‘‘(IV) S
PECIAL RULE FOR BUILD -21
INGS IN INDIAN AREAS.—In the case 22
of an area which is a difficult develop-23
ment area solely because it is an In-24
dian area, a building shall not be 25
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treated as located in such area unless 1
such building is assisted or financed 2
under the Native American Housing 3
Assistance and Self Determination 4
Act of 1996 (25 U.S.C. 4101 et seq.) 5
or the project sponsor is an Indian 6
tribe (as defined in section 7
45A(c)(6)), a tribally designated hous-8
ing entity (as defined in section 4(22) 9
of such Act (25 U.S.C. 4103(22))), or 10
wholly owned or controlled by such an 11
Indian tribe or tribally designated 12
housing entity.’’. 13
(d) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to buildings placed in service after 15
December 31, 2025. 16
TITLE V—REFORMS RELATING 17
TO RURAL ASSISTANCE 18
SEC. 501. INCLUSION OF RURAL AREAS AS DIFFICULT DE-19
VELOPMENT AREAS. 20
(a) I
NGENERAL.—Subclause (I) of section 21
42(d)(5)(B)(iii) of the Internal Revenue Code of 1986, as 22
amended by section 402, is further amended by inserting 23
‘‘, any rural area’’ after ‘‘median gross income’’. 24
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(b) RURALAREA.—Clause (iii) of section 1
42(d)(5)(B) of the Internal Revenue Code of 1986, as 2
amended by section 402, is further amended by redesig-3
nating subclause (III) as subclause (IV) and by inserting 4
after subclause (II) the following new subclause: 5
‘‘(III) R
URAL AREA.—For pur-6
poses of subclause (I), the term ‘rural 7
area’ means any non-metropolitan 8
area, or any rural area as defined by 9
section 520 of the Housing Act of 10
1949, which is identified by the quali-11
fied allocation plan under subsection 12
(m)(1)(B).’’. 13
(c) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to buildings placed in service after 15
December 31, 2025. 16
SEC. 502. UNIFORM INCOME ELIGIBILITY FOR RURAL 17
PROJECTS. 18
(a) I
NGENERAL.—Paragraph (8) of section 42(i) of 19
the Internal Revenue Code of 1986 is amended by striking 20
the second sentence. 21
(b) E
FFECTIVEDATE.—The amendment made by 22
this section shall apply to taxable years beginning after 23
December 31, 2024. 24
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TITLE VI—EXEMPT FACILITY 1
BONDS 2
SEC. 601. REVISION AND CLARIFICATION OF THE TREAT-3
MENT OF REFUNDING ISSUES. 4
(a) I
NGENERAL.—Subparagraph (A) of section 5
146(i)(6) of the Internal Revenue Code of 1986 is amend-6
ed to read as follows: 7
‘‘(A) I
N GENERAL.—During the 12-month 8
period beginning on the date of a repayment of 9
a loan financed by an issue 95 percent or more 10
of the net proceeds of which are used to provide 11
projects described in section 142(d), if such re-12
payment is used to provide a new loan for any 13
project described in section 142(a)(7) or for 14
any purpose described in subsection (a)(2)(A) 15
or (b) of section 143, any bond which is issued 16
to refinance such issue shall be treated as a re-17
funding issue. Any issue treated as a refunding 18
issue by reason of the preceding sentence shall 19
be so treated only to the extent the principal 20
amount of such refunding issue does not exceed 21
the principal amount of the bonds refunded.’’. 22
(b) R
EMOVAL OF ONE-REFUNDINGLIMIT.—Sub-23
paragraph (B) of section 146(i)(6) of the Internal Rev-24
enue Code of 1986 is amended— 25
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(1) by striking ‘‘4 years’’ in clause (i) and in-1
serting ‘‘10 years’’, 2
(2) by striking ‘‘was issued’’ in clause (ii) and 3
inserting ‘‘is issued’’, 4
(3) by redesignating clauses (i) (as so amend-5
ed), (ii) (as so amended), and (iii) as subclauses (I), 6
(II), and (III), respectively, and by moving such sub-7
clauses 2 ems to the right, 8
(4) by striking ‘‘L
IMITATIONS.—Subparagraph 9
(A) shall apply to only one refunding of the original 10
issue and’’ and inserting ‘‘L
IMITATIONS.— 11
‘‘(i) I
N GENERAL.—Subparagraph (A) 12
shall apply to a bond’’, and 13
(5) by adding at the end the following new 14
clause: 15
‘‘(ii) S
OURCE OF LOAN REPAY -16
MENT.—Subparagraph (A) shall not apply 17
to any repayment of a loan which is— 18
‘‘(I) made by a repayment of an-19
other loan, or 20
‘‘(II) financed by an issue treated 21
as a refunding issue under subpara-22
graph (A).’’. 23
(c) C
ONFORMING AMENDMENT.—The heading of 24
paragraph (6) of section 146(i) of the Internal Revenue 25
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Code of 1986 is amended by striking ‘‘RESIDENTIAL 1
RENTAL PROJECT BONDS AS REFUNDING BONDS IRRE -2
SPECTIVE OF OBLIGOR ’’ and inserting ‘‘BONDS AS RE-3
FUNDING BONDS’’. 4
(d) E
FFECTIVEDATES.— 5
(1) I
N GENERAL.—The amendments made by 6
subsections (a) and (c) shall apply to refunding 7
issues described in section 146(i)(6)(A) of the Inter-8
nal Revenue Code of 1986 issued on or after the 9
date of the enactment of this Act. 10
(2) R
EMOVAL OF ONE-REFUNDING LIMIT.—The 11
amendments made by subsection (b) shall apply to 12
repayments of loans received after July 30, 2008. 13
TITLE VII—AFFORDABLE 14
HOUSING TAX CREDIT 15
SEC. 701. AFFORDABLE HOUSING TAX CREDIT. 16
(a) I
NGENERAL.—The heading of section 42 of the 17
Internal Revenue Code of 1986 is amended by striking 18
‘‘
LOW-INCOME’’ and inserting ‘‘AFFORDABLE ’’. 19
(b) C
ONFORMINGAMENDMENTS.— 20
(1) Subsection (a) of section 42 of the Internal 21
Revenue Code of 1986 is amended by striking ‘‘low- 22
income’’ and inserting ‘‘affordable’’. 23
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(2) Paragraph (5) of section 38(b) of such Code 1
is amended by striking ‘‘low-income’’ and inserting 2
‘‘affordable’’. 3
(3) The heading of subparagraph (D) of section 4
469(i)(3) of such Code is amended by striking 5
‘‘
LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 6
(4) The heading of subparagraph (B) of section 7
469(i)(6) of such Code is amended by striking 8
‘‘
LOW-INCOME’’ and inserting ‘‘AFFORDABLE’’. 9
(5) Paragraph (7) of section 772(a) of such 10
Code is amended by striking ‘‘low-income’’ and in-11
serting ‘‘affordable’’. 12
(6) Paragraph (5) of section 772(d) of such 13
Code is amended by striking ‘‘low-income’’ and in-14
serting ‘‘affordable’’. 15
(c) C
LERICALAMENDMENT.—The item relating to 16
section 42 in the table of sections for subpart D of part 17
IV of subchapter A of chapter 1 of the Internal Revenue 18
Code of 1986 is amended to read as follows: 19
‘‘Sec. 42. Affordable housing credit.’’.
TITLE VIII—DATA AND 20
TRANSPARENCY 21
SEC. 801. SENSE OF CONGRESS. 22
(a) T
RANSPARENCY.—It is the sense of Congress that 23
in addition to expanding and strengthening the affordable 24
housing credit through the provisions in the Affordable 25
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Housing Credit Improvement Act of 2025, subsequent 1
steps should also be taken to share data and identify other 2
ways to increase the transparency of the program, and the 3
House of Representatives and the Senate should work to-4
gether with Federal agencies to identify data sources that 5
can be shared. 6
(b) D
ISCRIMINATORYLANDUSEPOLICIES.—It is the 7
Sense of Congress that action should be taken to discour-8
age the use of discriminatory land use policies and remove 9
barriers to making hosing more affordable to further the 10
original intent of the affordable housing credit program. 11
The House and Senate should work together to develop 12
incentives within the affordable housing credit program to 13
encourage states and localities to remove or reform bur-14
densome land use and zoning regulations and facilitate the 15
adoption or continuation of inclusive land use and zoning 16
policies to increase housing supply and affordability. 17
Æ
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