1. Short title
This Act may be cited as the “Affordable Housing Incentives Act of 2019”.
Affordable Housing Incentives Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to allow for nonrecognition of gain on real property sold for use as affordable housing.
2. Nonrecognition of gain on property sold to public housing agencies for use as affordable housing
In general— Section 1033 of the Internal Revenue Code of 1986 is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection:
“(k) Sales to public housing agencies for use as affordable housing
“(1) In general—For purposes of this subtitle, if real property is sold or otherwise transferred to a public housing agency (as such term is defined in section 3(b)(6) of the United States Housing Act of 1937) for use or development by such agency as affordable housing to carry out the mandate (relating to affordable housing) of such agency, such sale or transfer shall be treated as an involuntary conversion to which this section applies.
“(2) Special rule with respect to period within which property must be replaced—In the case of a sale or transfer described in paragraph (1), subsection (a)(2)(B)(i) shall be applied by substituting “3 years” for “2 years”.
“(3) Special rule for real property held for productive use in trade or business—For purposes of subsection (a), if the real property described in paragraph (1) is held for productive use in a trade or business or for investment, property of a like kind to be held either for productive use in a trade or business or for investment shall be treated as property similar or related in service or use to the property so described.”
Effective date— The amendment made by this section shall apply to sales and transfers made after the date of the enactment of this Act.