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”.
LIHTC Financing Enabling Long-term Investment in Neighborhood Excellence Act
A BILL
To amend title VI of the Social Security Act to allow State and Local Fiscal Recovery Funds to be loaned for low-income housing tax credit projects.
Sec. 2 Authority to loan State and Local Fiscal Recovery Funds for low-income housing tax credit projects
in section 602—
in subsection (a)(1), by inserting “(except as provided in subsection (c)(5))” after “December 31, 2024”; and
in subsection (c)—
in paragraph (1), in the matter preceding subparagraph (A), by striking “paragraph (3)” and inserting “paragraphs (3), (4), and (5)”; and
by adding at the end the following new paragraph:
“(5) Use of funds for low-income housing tax credit projects
“(A) In general—A State, territory, or Tribal government may use funds provided under this section to finance “qualified low-income housing projects” within the meaning of section 42(g) of the Internal Revenue Code of 1986 with loans having maturities of 30 or more years. Such loans must be obligated by December 31, 2024, and expended for eligible costs by December 31, 2026. Any amount loaned in accordance with this subparagraph shall be considered incurred in accordance with the requirements of this subsection.
“(B) Returned or repaid funds—Under regulations prescribed by the Secretary, 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 “qualified low-income housing projects” within the meaning of section 42(g) of the Internal Revenue Code of 1986.”
in section 603—
in subsection (a), by inserting “(except as provided in subsection (c)(6))” after “December 31, 2024”; and
in subsection (c)—
in paragraph (1), in the matter preceding subparagraph (A), by striking “paragraphs (3) and (4)” and inserting “paragraphs (3), (4), (5), and (6)”; and
by adding at the end the following new paragraph:
“(6) Use of funds for low-income housing tax credit projects
“(A) In general—A metropolitan city, nonentitlement unit of local government, or county may use funds provided under this section to finance “qualified low-income housing projects” within the meaning of section 42(g) of the Internal Revenue Code of 1986 with loans having maturities of 30 or more years. Such loans must be obligated by December 31, 2024, and expended for eligible costs by December 31, 2026. Any amount loaned in accordance with this subparagraph shall be considered incurred in accordance with the requirements of this subsection.
“(B) Returned or repaid funds—Under regulations prescribed by the Secretary, 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 “qualified low-income housing projects” within the meaning of section 42(g) of the Internal Revenue Code of 1986.”
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”.