1. Short title
This Act may be cited as the “Affordable Housing Equity Act of 2023”.
Affordable Housing Equity Act of 2023
A BILL
To amend the Internal Revenue Code of 1986 to designate projects serving extremely low-income households for purposes of allocating the State housing credit ceiling and determining an increased amount of low-income housing tax credit.
2. Buildings designated to serve extremely low-income households
Reserved State allocation—
by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively; and
by inserting after paragraph (5) the following new paragraph:
“(6) Portion of State ceiling set-aside for projects designated to serve extremely low-income households
“(A) In general—Not more than 90 percent of the portion of the State housing credit ceiling amount described in paragraph (3)(C)(ii) for any State for any calendar year shall be allocated to buildings other than buildings described in subparagraph (B).
“(B) Buildings described—A building is described in this subparagraph if 20 percent or more of the residential units in such building are rent-restricted (determined as if the imputed income limitation applicable to such units were 30 percent of area median gross income) and are designated by the taxpayer for occupancy by households the aggregate household income of which does not exceed the greater of—
“(i) 30 percent of area median gross income, or
“(ii) 100 percent of an amount equal to the Federal poverty line (within the meaning of section 36B(d)(3)).
“(C) State may not override set-aside—Nothing in subparagraph (F) of paragraph (3) shall be construed to permit a State not to comply with subparagraph (A) of this paragraph.
“(D) Termination—This paragraph shall not apply to allocations after December 31, 2033.”
Conforming amendment— Section 42(b)(4)(C) of such Code is amended by striking “(h)(7)” and inserting “(h)(8)”.
Increase in credit— Section 42(d)(5) of such Code is amended by adding at the end the following new subparagraph:
“(C) Increase in credit for projects designated to serve extremely low-income households
“(i) In general—In the case of any building—
“(I) which is described in subsection (h)(6)(B), and
“(II) which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project,”
Effective date— The amendments made by this section shall apply to allocations, and determinations, of housing credit dollar amount after December 31, 2023.