Sec. 2. Authority to use coronavirus State and local fiscal recovery funds for low-income housing credit projects
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Title VI of the Social Security Act ( 42 U.S.C. 801 et seq. ) is amended— 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: A State, territory, or Tribal government, in consultation with a housing finance agency, may use funds provided under this section to finance the cost of construction of 1 or more new qualified low-income buildings (as defined in section 42(c)(2) of the Internal Revenue Code of 1986), or the cost of rehabilitation expenditures (as defined in section 42(e)(2) of such Code), which are expected to be eligible for the low-income housing credit under section 42 of such Code in an amount greater than $0, including credits described in subsection (h)(4) thereof. The financing permitted by the preceding sentence must be provided by loans having maturities of 30 or more years, with such buildings having a placed in service date that is no earlier than the date of enactment of this paragraph. Funds provided under this section to finance such buildings must be obligated by December 31, 2024, and expended by December 31, 2026. Any amount loaned in accordance with this subparagraph shall be considered expended in accordance with the requirements of this subsection. The project sponsor of a building financed in whole or in part by loans for which financing is permitted under this paragraph shall agree, as a condition for accepting such a loan— to waive any right to request a qualified contract (as defined in section 42(h)(6)(F) of the Internal Revenue Code of 1986); and to repay any loaned funds to the entity that originated the loan at the time the project of which the building is a part becomes non-compliant, including if such project ceases to satisfy the requirements to be considered a qualified low-income housing project (as defined in section 42(g) of the Internal Revenue Code) or a qualified residential rental project (as defined in section 142(d) of such Code), or if such project fails to comply with an extended low-income housing commitment (as defined in section 42(h)(6) of such Code). 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 buildings that are eligible for low-income housing credits under section 42(a) of the Internal Revenue Code of 1986 by virtue of being part of 1 or more qualified low-income housing projects (as defined in section 42(g) of such Code), or being part of 1 or more qualified residential rental projects (as defined in section 142(d) of such Code). During the period beginning on the date of enactment of this paragraph and ending on December 31, 2026, the Secretary shall provide annual reports to the Committee on Ways and Means of the House of Representatives, the Committee on Oversight and Reform of the House of Representatives, the Committee on Appropriations of the House of Representatives, the Committee on Finance of the Senate, and the Committee on Appropriations of the Senate on the obligation and expenditure of funds for projects under this paragraph. For each year during the term of an initial loan financed by funds made available under this paragraph is outstanding, the Secretary shall provide an annual report to each of the committees identified in clause
(i)on any repayment of such funds. ; and 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: A metropolitan city, nonentitlement unit of local government, or county, in consultation with a housing finance agency, may use funds provided under this section to finance the cost of construction of 1 or more new qualified low-income buildings (as defined in section 42(c)(2) of the Internal Revenue Code of 1986), or the cost of rehabilitation expenditures (as defined in section 42(e)(2) of such Code), which are expected to be eligible for the low-income housing credit under section 42 of such Code in an amount greater than $0, including credits described in subsection (h)(4) thereof. The financing permitted by the preceding sentence must be provided by loans having maturities of 30 or more years, with such buildings having a placed in service date that is no earlier than the date of enactment of this paragraph. Funds provided under this section to finance such buildings must be obligated by December 31, 2024, and expended by December 31, 2026. Any amount loaned in accordance with this subparagraph shall be considered expended in accordance with the requirements of this subsection. The project sponsor of a building financed in whole or in part by loans for which financing is permitted under this paragraph shall agree, as a condition for accepting such a loan— to waive any right to request a qualified contract (as defined in section 42(h)(6)(F) of the Internal Revenue Code of 1986); and to repay any loaned funds to the entity that originated the loan at the time the project of which the building is a part becomes non-compliant, including if such project ceases to satisfy the requirements to be considered a qualified low-income housing project (as defined in section 42(g) of the Internal Revenue Code) or a qualified residential rental project (as defined in section 142(d) of such Code), or if such project fails to comply with an extended low-income housing commitment (as defined in section 42(h)(6) of such Code). 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 buildings that are eligible for low-income housing credits under section 42(a) of the Internal Revenue Code of 1986 by virtue of being part of 1 or more qualified low-income housing projects (as defined in section 42(g) of such Code), or being part of 1 or more qualified residential rental projects (as defined in section 142(d) of such Code). During the period beginning on the date of enactment of this paragraph and ending on December 31, 2026, the Secretary shall provide annual reports to the Committee on Ways and Means of the House of Representatives, the Committee on Oversight and Reform of the House of Representatives, the Committee on Appropriations of the House of Representatives, the Committee on Finance of the Senate, and the Committee on Appropriations of the Senate on the obligation and expenditure of funds for projects under this paragraph. For each year during the term of an initial loan financed by funds made available under this paragraph is outstanding, the Secretary shall provide an annual report to each of the committees identified in clause
(i)on any repayment of such funds. . 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 .
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Sec. 2
Authority to use coronavirus State and local fiscal recovery funds for low-income housing credit projects
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