[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 4181 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 4181
To amend title VI of the Social Security Act to allow coronavirus State
and local fiscal recovery funds to be used for low-income housing
credit projects.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 11 (legislative day, May 10), 2022
Mr. Leahy (for himself, Ms. Collins, Mr. Wyden, Mr. Bennet, Ms. Cortez
Masto, Mr. King, Ms. Hassan, Mr. Padilla, Mr. Reed, Mr. Sanders, and
Mr. Whitehouse) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend title VI of the Social Security Act to allow coronavirus State
and local fiscal recovery funds to be used for low-income housing
credit projects.
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 ``LIHTC Financing Enabling Long-term
Investment in Neighborhood Excellence Act'' or the ``LIFELINE Act''.
SEC. 2. AUTHORITY TO USE CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY
FUNDS FOR LOW-INCOME HOUSING CREDIT PROJECTS.
(a) In General.--Title VI of the Social Security Act (42 U.S.C. 801
et seq.) is amended--
(1) in section 602--
(A) in subsection (a)(1), by inserting ``(except as
provided in subsection (c)(5))'' after ``December 31,
2024''; and
(B) in subsection (c)--
(i) in paragraph (1), in the matter
preceding subparagraph (A), by striking
``paragraph (3)'' and inserting ``paragraphs
(3), (4), and (5)''; and
(ii) by adding at the end the following new
paragraph:
``(5) Use of funds for low-income housing credit
projects.--
``(A) In general.--A State, territory, or Tribal
government, in consultation with a housing finance
agency, may use funds provided under this section to
finance the cost of construction of 1 or more new
qualified low-income buildings (as defined in section
42(c)(2) of the Internal Revenue Code of 1986), or the
cost of rehabilitation expenditures (as defined in
section 42(e)(2) of such Code), which are expected to
be eligible for the low-income housing credit under
section 42 of such Code in an amount greater than $0,
including credits described in subsection (h)(4)
thereof. The financing permitted by the preceding
sentence must be provided by loans having maturities of
30 or more years, with such buildings having a placed
in service date that is no earlier than the date of
enactment of this paragraph. Funds provided under this
section to finance such buildings must be obligated by
December 31, 2024, and expended by December 31, 2026.
Any amount loaned in accordance with this subparagraph
shall be considered expended in accordance with the
requirements of this subsection.
``(B) Requirements.--The project sponsor of a
building financed in whole or in part by loans for
which financing is permitted under this paragraph shall
agree, as a condition for accepting such a loan--
``(i) to waive any right to request a
qualified contract (as defined in section
42(h)(6)(F) of the Internal Revenue Code of
1986); and
``(ii) to repay any loaned funds to the
entity that originated the loan at the time the
project of which the building is a part becomes
non-compliant, including if such project ceases
to satisfy the requirements to be considered a
qualified low-income housing project (as
defined in section 42(g) of the Internal
Revenue Code) or a qualified residential rental
project (as defined in section 142(d) of such
Code), or if such project fails to comply with
an extended low-income housing commitment (as
defined in section 42(h)(6) of such Code).
``(C) Returned or repaid funds.--Any funds used by
a State, territory, or Tribal government in accordance
with subparagraph (A) that are returned to the State,
territory, or Tribal government, including from loan
repayment, shall be used to finance affordable housing,
including buildings that are eligible for low-income
housing credits under section 42(a) of the Internal
Revenue Code of 1986 by virtue of being part of 1 or
more qualified low-income housing projects (as defined
in section 42(g) of such Code), or being part of 1 or
more qualified residential rental projects (as defined
in section 142(d) of such Code).
``(D) Reports.--
``(i) Annual reports on lihtc project
obligations.--During the period beginning on
the date of enactment of this paragraph and
ending on December 31, 2026, the Secretary
shall provide annual reports to the Committee
on Ways and Means of the House of
Representatives, the Committee on Oversight and
Reform of the House of Representatives, the
Committee on Appropriations of the House of
Representatives, the Committee on Finance of
the Senate, and the Committee on Appropriations
of the Senate on the obligation and expenditure
of funds for projects under this paragraph.
``(ii) Annual reports on lihtc project
loans.--For each year during the term of an
initial loan financed by funds made available
under this paragraph is outstanding, the
Secretary shall provide an annual report to
each of the committees identified in clause (i)
on any repayment of such funds.''; and
(2) in section 603--
(A) in subsection (a), by inserting ``(except as
provided in subsection (c)(6))'' after ``December 31,
2024''; and
(B) in subsection (c)--
(i) in paragraph (1), in the matter
preceding subparagraph (A), by striking
``paragraphs (3) and (4)'' and inserting
``paragraphs (3), (4), (5), and (6)''; and
(ii) by adding at the end the following new
paragraph:
``(6) Use of funds for low-income housing credit
projects.--
``(A) In general.--A metropolitan city,
nonentitlement unit of local government, or county, in
consultation with a housing finance agency, may use
funds provided under this section to finance the cost
of construction of 1 or more new qualified low-income
buildings (as defined in section 42(c)(2) of the
Internal Revenue Code of 1986), or the cost of
rehabilitation expenditures (as defined in section
42(e)(2) of such Code), which are expected to be
eligible for the low-income housing credit under
section 42 of such Code in an amount greater than $0,
including credits described in subsection (h)(4)
thereof. The financing permitted by the preceding
sentence must be provided by loans having maturities of
30 or more years, with such buildings having a placed
in service date that is no earlier than the date of
enactment of this paragraph. Funds provided under this
section to finance such buildings must be obligated by
December 31, 2024, and expended by December 31, 2026.
Any amount loaned in accordance with this subparagraph
shall be considered expended in accordance with the
requirements of this subsection.
``(B) Requirements.--The project sponsor of a
building financed in whole or in part by loans for
which financing is permitted under this paragraph shall
agree, as a condition for accepting such a loan--
``(i) to waive any right to request a
qualified contract (as defined in section
42(h)(6)(F) of the Internal Revenue Code of
1986); and
``(ii) to repay any loaned funds to the
entity that originated the loan at the time the
project of which the building is a part becomes
non-compliant, including if such project ceases
to satisfy the requirements to be considered a
qualified low-income housing project (as
defined in section 42(g) of the Internal
Revenue Code) or a qualified residential rental
project (as defined in section 142(d) of such
Code), or if such project fails to comply with
an extended low-income housing commitment (as
defined in section 42(h)(6) of such Code).
``(C) Returned or repaid funds.--Any funds used by
a metropolitan city, nonentitlement unit of local
government, or county in accordance with subparagraph
(A) that are returned to the metropolitan city,
nonentitlement unit of local government, or county,
including from loan repayment, shall be used to finance
affordable housing, including buildings that are
eligible for low-income housing credits under section
42(a) of the Internal Revenue Code of 1986 by virtue of
being part of 1 or more qualified low-income housing
projects (as defined in section 42(g) of such Code), or
being part of 1 or more qualified residential rental
projects (as defined in section 142(d) of such Code).
``(D) Reports.--
``(i) Annual reports on lihtc project
obligations.--During the period beginning on
the date of enactment of this paragraph and
ending on December 31, 2026, the Secretary
shall provide annual reports to the Committee
on Ways and Means of the House of
Representatives, the Committee on Oversight and
Reform of the House of Representatives, the
Committee on Appropriations of the House of
Representatives, the Committee on Finance of
the Senate, and the Committee on Appropriations
of the Senate on the obligation and expenditure
of funds for projects under this paragraph.
``(ii) Annual reports on lihtc project
loans.--For each year during the term of an
initial loan financed by funds made available
under this paragraph is outstanding, the
Secretary shall provide an annual report to
each of the committees identified in clause (i)
on any repayment of such funds.''.
(b) Technical Amendments.--Sections 602(c)(3) and 603(c)(3) of
title VI of the Social Security Act (42 U.S.C. 802(c)(3), 803(c)(3))
are each amended by striking ``paragraph (17) of''.
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