Sec. 205. Buildings designated to serve extremely low-income households
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Subsection
(h)of section 42 of the Internal Revenue Code of 1986 is amended— by redesignating paragraphs (6), (7), and
(8)as paragraphs (7), (8), and (9), respectively; and by inserting after paragraph
(5)the following new paragraph: Not more than 90 percent of the State housing credit ceiling for any State for any calendar year shall be allocated to buildings other than buildings described in subparagraph (B). 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— 30 percent of area median gross income, or 100 percent of an amount equal to the Federal poverty line (within the meaning of section 36B(d)(3)). Nothing in subparagraph
(F)of paragraph
(3)shall be construed to permit a State not to comply with subparagraph
(A)of this paragraph. . Section 42(b)(4)(C) of the Internal Revenue Code of 1986 is amended by striking (h)(7) and inserting (h)(8) . Paragraph
(5)of section 42(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph: In the case of any building— which is described in subsection (h)(6)(B), and 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, subparagraph
(B)shall not apply to the portion of such building which is comprised of such units, and the eligible basis of such portion of the building shall be 150 percent of such basis determined without regard to this subparagraph. . The amendments made by this section shall apply to buildings which receive allocations of housing credit dollar amount or, in the case of projects financed by tax-exempt bonds as described in section 42(h)(4) of the Internal Revenue Code of 1986, which receive a determination of housing credit dollar amount, after the date of the enactment of this Act.