[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7351 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7351
To amend the Internal Revenue Code of 1986 to provide a credit for low-
income housing supportive services.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 25, 2020
Mr. Gomez (for himself, Mr. Panetta, Ms. Sanchez, Mr. Thompson of
California, and Ms. Judy Chu of California) 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 provide a credit for low-
income housing supportive services.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Opportunity Starts At Home Act''.
SEC. 2. CREDIT FOR LOW-INCOME HOUSING SUPPORTIVE SERVICES.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 42 the following new section:
``SEC. 42A. CREDIT FOR CONTRIBUTIONS TO LOW-INCOME HOUSING SUPPORTIVE
SERVICES.
``(a) In General.--For purposes of section 38, the amount of the
low-income housing supportive services credit determined under this
section for the applicable taxable year is an amount equal to 25
percent of the qualified supportive housing contribution made by the
taxpayer.
``(b) Qualified Supportive Housing Contribution.--For purposes of
this section--
``(1) In general.--The term `qualified supportive housing
contribution' means the total amount contributed in cash by the
taxpayer to a qualified supportive housing reserve fund with
respect to a qualified low-income building, determined as of
the date the building is placed in service.
``(2) Qualified supportive housing reserve fund.--The term
`qualified supportive housing reserve fund' means, with respect
to any qualified low-income building, a separate fund reserved
exclusively for payment for qualified supportive services
provided to tenants of the building pursuant to an extended
supportive services commitment. The owner of such building
shall designate an administrator to separately account for the
amounts in the fund in such manner as the Secretary may
prescribe.
``(3) Limitations.--
``(A) In general.--No amount attributable to any
governmental grant, including grants provided by the
government of any State, possession, tribe, or
locality, shall be taken into account under paragraph
(1).
``(B) Dollar limitation.--The total qualified
supportive housing contributions taken into account
under this section with respect to any qualified low-
income building shall not exceed--
``(i) $120,000, multiplied by
``(ii) the number of low-income units in
the building which are occupied at the close of
the applicable taxable year.
``(c) Applicable Taxable Year.--For purposes of this section, the
term `applicable taxable year' means the 1st taxable year in the credit
period with respect to the qualified low-income building described in
subsection (b)(1).
``(d) Qualified Supportive Services.--For purposes of this section,
the term `qualified supportive services' means services--
``(1) provided by the owner of a qualified low-income
building (directly or through contracts with a third-party
service provider) to tenants of the building,
``(2) which include health services (including mental
health services), coordination of tenant benefits, job
training, financial counseling, resident engagement services,
or services the principal purpose of which is to help tenants
retain permanent housing, or such other services as the
Secretary may by regulation provide,
``(3) which are provided at no cost to tenants, and
``(4) usage of or participation in which is not required
for tenants.
Such term includes reasonable and necessary measures for the provision
of such services, including measures to engage tenants in and
coordinate such services and measures required to obtain the
certification described in subsection (e)(4).
``(e) Extended Supportive Services Commitment.--The term `extended
supportive services commitment' means any agreement between the owner
of a qualified low-income building and the housing credit agency
which--
``(1) requires that amounts in a qualified supportive
housing reserve fund are spent exclusively on the provision of
qualified supportive services to tenants of such building,
``(2) requires that the amounts in such fund be spent
entirely during the extended use period, and provides for the
manner in which such spending will be distributed across such
period,
``(3) requires the designation of 1 or more individuals to
engage tenants regarding and coordinate delivery of qualified
supportive services,
``(4) requires the maintenance of an appropriate
certification, as determined by the Secretary after
consultation with housing credit agencies, for qualified
supportive services, subject to recertification at least once
every 5 years,
``(5) requires appropriate annual reporting to the housing
credit agency on expenditures and outcomes, as determined by
such agency, and
``(6) is binding on all successors in ownership of such
building.
``(f) Recapture of Qualified Supportive Housing Reserve Amounts.--
``(1) In general.--If the owner of a qualified low-income
building is determined to be noncompliant with the extended
supportive services commitment or extended low-income housing
commitment with respect to such building, any remaining amounts
in the qualified supportive housing reserve fund with respect
to such building shall be transferred to the housing credit
agency.
``(2) Use of repayments.--A housing credit agency shall use
any amount received pursuant to paragraph (1) only for purposes
of qualified low-income buildings.
``(g) Special Rules.--
``(1) In general.--Notwithstanding any other provision of
this section, no credit shall be allowed under this section for
any taxable year with respect to any qualified low-income
building unless--
``(A) the building has received an allocation of
the low-income housing credit under section 42 by a
housing credit agency which is approved by the
governmental unit (in accordance with rules similar to
the rules of section 147(f)(2) (other than subparagraph
(B)(ii) thereof)) of which such agency is a part,
``(B) the housing credit agency sets forth
selection criteria to determine appropriate, evidence-
based supportive services and 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 reporting such noncompliance to the Secretary,
``(C) an extended low-income housing commitment is
in effect with respect to such building as of the end
of such taxable year,
``(D) an extended supportive services commitment is
in effect with respect to such building as of the end
of such taxable year, and
``(E) appropriate books and records for itemized
expenses and expenditures with respect to the qualified
supportive housing reserve fund are maintained on an
annual basis, and are available for inspection upon
request by the housing credit agency.
``(2) Denial of double benefit.--The deductions otherwise
allowed under this chapter for the taxable year shall be
reduced by the amount of the credit allowed under this section
for such taxable year.
``(h) Definitions.--Any term used in this section which is also
used in section 42 shall have the same meaning as when used in such
section.''.
(b) Credit To Be Part of General Business Credit.--
(1) In general.--Section 38(b) of the Internal Revenue Code
of 1986 is amended by striking ``plus'' at the end of paragraph
(32), by striking the period at the end of paragraph (33) and
inserting ``, plus'', and by adding at the end the following
new paragraph:
``(34) the low-income housing supportive services credit
determined under section 42A(a).''.
(2) Treatment as specified credit.--Clause (iii) of section
38(c)(4)(B) of such Code is amended by inserting ``, and the
credit determined under section 42A'' after ``2007''.
(c) Treatment for Purposes of Tax on Base Erosion Payments.--
Paragraph (4) of section 59A(b) of the Internal Revenue Code of 1986 is
amended by redesignating subparagraphs (B) and (C) as subparagraphs (C)
and (D), respectively, and by inserting after subparagraph (A) the
following new subparagraph:
``(B) the low-income housing supportive services
credit determined under section 42A(a),''.
(d) Passive Activity Credits.--
(1) In general.--Section 469 of the Internal Revenue Code
of 1986 is amended by striking ``42'' each place it appears in
subsections (i)(3)(C), (i)(6)(B)(i), and (k)(1) and inserting
``42 or 42A''.
(2) Conforming amendments.--The headings of subsections
(i)(3)(C) and (i)(6)(B) of section 469 of such Code are each
amended by striking ``credit'' and inserting ``credits''.
(e) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 42 the
following new item:
``Sec. 42A. Credit for contributions to low-income housing supportive
services.''.
(f) Effective Date.--The amendments made by this section shall
apply to buildings placed in service after December 31, 2020.
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