1. Short title
This Act may be cited as the “Affordable Housing and Area Median Income Fairness Act of 2019”.
Affordable Housing and Area Median Income Fairness Act of 2019
A BILL
To increase the supply of, and lower rents for, affordable housing and to adjust calculations of area median income for purposes of Federal low-income housing assistance, and for other purposes.
2. Area median income fairness
Subparagraph (D) of section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)(D)) is amended—
in the second sentence, by inserting “(in this subparagraph referred to as the “covered jurisdictions”)” before the fifth comma;
in the third sentence—
by striking “Westchester or Rockland Counties” and inserting “the covered jurisdictions”; and
by striking “included Westchester and Rockland Counties” and inserting “does not include the covered jurisdictions”; and
in the fourth sentence, by striking “include Westchester and Rockland Counties, New York, in” and inserting “exclude the covered jurisdictions from”.
3. High housing cost adjustment fairness
Subparagraph (D) of section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)(D)), as amended by the preceding provisions of this Act, is further amended by adding at the end the following: “For purposes of the low-income housing tax credit program under section 42 of the Internal Revenue Code of 1986 and the exempt facilities bond program under section 142 of such Code, the Secretary may not apply, for any city, county, and other such jurisdiction, for the purposes of calculating the area median income or any related metric, in the instances where it is used to derive the income limits or rent amounts for such programs for a given area, a high housing cost adjustment, unless such jurisdiction petitions the Secretary to apply such adjustment to such city, county, or other such jurisdiction. The Secretary shall review and grant such petitions made by any legal and proper authority within the relevant jurisdiction, including petitions enacted by popular referendum. The preceding two sentences may not be construed to affect housing vouchers under section 8 or to carry out any other purpose than those specifically stated in such sentences.”.
4. Low-income housing tax credit disclosures
In general— Section 42 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:
“(o) Annual reporting—No credit shall be allowed under subsection (a) with respect to a qualified low-income building for a taxable year unless the following information is submitted (in such manner and at such time as the Secretary requires) to the relevant housing credit agency:
“(1) All expenditures after the date of the allocation under subsection (h) that substantially affect the basis of such building.
“(2) The projected rents of the affordable units in such building during the 5-year period following such submission.
“(3) The annual profits attributable to such building.
“(4) The annual expenditures attributable to tax credit syndication.
“(5) Any other information required by the Secretary that is reasonably necessary to determine program compliance.”
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
5. Urgent support for affordable housing infrastructure
Home Investment partnerships program—
Authorization of appropriations— There is authorized to be appropriated to carry out title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1721 et seq.) $2,500,000,000 for each of fiscal years 2020 through 2029.
Limitation— Any amounts appropriated pursuant to paragraph (1) shall be used only for assistance for any area within a participating jurisdiction for which the Secretary has applied, or would have applied prior to the enactment of this Act, a high housing cost adjustment.
Community development block grants—
Authorization of appropriations— There is authorized to be appropriated for community development block grant assistance under section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306) $2,500,000,000 for each of fiscal years 2020 through 2029.
Limitation— Any amounts appropriated pursuant to paragraph (1) shall be used only for assistance for any area within a metropolitan city or urban county for which the Secretary has applied, or would have applied prior to the enactment of this Act, a high housing cost adjustment.
Housing Trust Fund—
Authorization of appropriations— There is authorized to be appropriated to the Housing Trust Fund established under section 1338(a) of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568(a)) $2,500,000,000 for each of fiscal years 2020 through 2029.
Limitation— Any amounts appropriated pursuant to paragraph (1) shall be used only for assistance to be used within any area within a unit of general local government for which the Secretary has applied, or would have applied prior to the enactment of this Act, a high housing cost adjustment.
6. Assessment regarding optimizing use of area median income to support affordable housing in urban areas
Assessment of alternative calculation methods— Not later than 180 days after the date of the enactment of this Act, the Secretary shall commence an assessment of alternative methods for calculating area median income, and the use of alternative metrics, for programs administered by the Secretary that would make housing more affordable for low-income families residing in urban areas nationwide, which shall include analysis of the topics identified in subsection (b).
Report— Not later than two years after the date of the enactment of this Act, the Secretary shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and make publicly available, a report setting forth the results of the assessment conducted pursuant to subsection (a), which shall include—
a review and summarization of significant findings and recommendations from any related previous reports regarding area median income;
an assessment of the extent and impacts of the affordable housing crisis in urban areas nationwide, particularly within jurisdictions for which the Secretary has applied a high housing cost adjustment;
an analysis and assessment of the effects that high housing cost adjustments have had on income limits and rent prices in jurisdictions for which the Secretary has applied such an adjustment;
an assessment of the potential impacts to affordable housing, particularly on income limits and rent prices, of calculating area median income on a zip-code level basis and using other localized methodologies;
assess and propose a process through which State housing authorities may designate area median income jurisdictions within that State;
an assessment of alternative metrics to area median income for the purposes of setting income levels and related thresholds for affordable housing programs administered by the Secretary;
recommendations for how the Secretary could reform or eliminate use of area median income for the purposes of making housing more affordable for low-income and middle class families in urban areas; and
any further recommendations for how the Secretary could make housing more affordable for low-income and middle class families in urban areas.
Methodology— Not later than 90 days after the date of the enactment of this Act, the Secretary shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate describing the methodology that will be used to conduct the assessment under this section.
7. Definitions
For purposes of this Act, the following definitions shall apply:
Area median income— The term “area median income” means median income for an area, as such term is used in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)), median family income, and any other substantively similar metric that the Secretary uses to refer to the median income level for a given area or jurisdiction for purposes of any program administered by the Secretary.
High housing cost adjustment— The term “high housing cost adjustment” means an adjustment for high housing costs or high construction costs, or any substantively similar adjustment that the Secretary may use to increase income limits for areas where the cost of housing is abnormally high compared to the median income for such area, for purposes of any program administered by the Secretary.
Secretary— The term “Secretary” means the Secretary of Housing and Urban Development.