Sec. 210. Increase in credit for low-income housing supportive services
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Paragraph
(5)of section 42(d) of the Internal Revenue Code of 1986, as amended by section 203, is further amended by adding at the end the following new subparagraphs: In the case of any building which includes common areas, or property used therein, dedicated to the provision of on-site qualified supportive services, except as provided in subparagraphs
(E)and (F), the eligible basis of the portion of the building which is comprised of such areas or property (after the application of subparagraphs
(A)and (B)) shall be increased by an amount equal to 50 percent of such basis determined without regard to this subparagraph and subparagraphs
(B)and (C). For purposes of clause (i), the term qualified supportive services means services— provided by the owner of a building (directly or through contracts with third-party service providers) primarily to tenants of the building, which are intended to promote economic self-sufficiency and physical and mental health and well-being in pursuit of retaining permanent housing, including childcare or eldercare services, health services, coordination of tenant benefits, job training, financial counseling, resident engagement services, or such other similar services as may be defined by the allocating agency in the qualified allocation plan, which are provided to tenants and other beneficiaries as may be specified by the housing credit agency, including specifications as to which services may be provided to non-tenants, which are provided at no cost to beneficiaries other than any fee, copay, or coinsurance customarily charged by service providers for similar services, and usage of or participation in which is not a condition of tenancy in the building. Such term includes reasonable and necessary measures for the provision of such services, including measures to engage tenants and other beneficiaries in and coordinate such services, and measures required to obtain the certification described in subparagraph (E)(ii)(III). Subparagraph (D)(i) shall not apply to a building for any taxable year unless an extended supportive services commitment is in effect for such taxable year. The term extended supportive services commitment means any agreement between the owner of a building and the housing credit agency which— provides estimates of the amounts to be spent, updated at least once every 5 years, on the provision of qualified supportive services to tenants of such building and other beneficiaries for each taxable year remaining in the credit period, requires the designation of one or more individuals to engage tenants regarding, and coordinate delivery of, qualified supportive services, requires the maintenance of an appropriate certification, as determined by the Secretary in consultation with the housing credit agencies, for qualified supportive services, subject to recertification at least once every 5 years, requires appropriate annual reporting to the housing credit agency on expenditures and outcomes, as determined by such agency, and is binding on all successors in ownership of such building. The requirement of clause (ii)(V) for any building shall terminate on the date the building is acquired by foreclosure (or instrument in lieu of foreclosure) unless the housing credit agency determines that such acquisition is part of an arrangement with the taxpayer a purpose of which is to terminate such requirement. If, during a taxable year, there is a determination by the housing credit agency that an extended supportive services commitment was not in effect as of the beginning of such year or that there is evidence of other noncompliance as determined by the housing credit agency (including failure to provide qualified supportive services)— such determination shall not apply to any period before such year and subparagraph (D)(i) shall apply to such taxable year without regard to such determination if the failure is corrected within 1 year from the date of the determination, and in the case of any year to which such determination does apply, if the failure is not corrected within 1 year from the date of the determination, the credit recapture amount under subsection (j)(1) for the year in which such 1 year period expires shall be increased by the amount of any increase in the credit under this section by reason of subparagraph (D)(i) for the year to which the determination applies. Rules similar to the rules of subsection (h)(7)(J) shall apply. Subparagraph (D)(i) shall not apply to a building for any taxable year unless— the housing credit agency sets forth criteria— to determine appropriate, evidence-based supportive services, for the selection of appropriate and competent service providers, and which common areas or property described in subparagraph (D)(i) shall meet in order to qualify for the increase in credit under subparagraph (D), the housing credit agency provides a procedure that the agency (or an agent or other private contractor of such agency) shall follow in monitoring for noncompliance with the provisions of this subparagraph and subparagraphs
(D)and
(E)and in reporting such noncompliance to the Secretary, and appropriate books and records for expenditures with respect to the qualified supportive services are maintained on an annual basis, and are available for inspection upon request by the housing credit agency. . The amendment 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 obligations as described in section 42(h)(4) of the Internal Revenue Code of 1986, which are first taken into account under section 146 of such Code, after the date of the enactment of this Act.