Save Affordable Housing Act of 2021
This bill revises the low-income housing tax credit to repeal the qualified contract option for a building that received its allocation of housing credit dollar amount before January 1, 2019, or received before that date, a determination from the bond issuer or housing credit agency of its eligibility to receive an allocation of a housing credit dollar amount.
Under current law, properties eligible for the low-income housing tax credit are subject to a 30-year affordability period, during which the value of properties is set at a below market rate. The qualified contract option allows property owners, in some cases, to convert to market rate after 15 years.
To amend the Internal Revenue Code of 1986 to repeal the qualified 
contract exception to the extended low-income housing commitment rules 
 for purposes of the low-income housing credit, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Save Affordable Housing Act of 
2021''.

SEC. 2. REPEAL OF QUALIFIED CONTRACT OPTION.

    (a) Termination of Option for Certain Buildings.--
            (1) In general.--Subclause (II) of section 42(h)(6)(E)(i) 
        of the Internal Revenue Code of 1986 is amended by inserting 
        ``in the case of a building described in clause (iii),'' before 
        ``on the last day''.
            (2) Buildings described.--Subparagraph (E) of section 
        42(h)(6) of such Code is amended by adding at the end the 
        following new clause:
                            ``(iii) Buildings described.--A building 
                        described in this clause is a building--
                                    ``(I) which received its allocation 
                                of housing credit dollar amount before 
                                January 1, 2019, or
                                    ``(II) in the case of a building 
                                any portion of which is financed as 
                                described in paragraph (4), which 
                                received before January 1, 2019, a 
                                determination from the issuer of the 
                                tax-exempt bonds or the housing credit 
                                agency that the building is eligible to 
                                receive an allocation of housing credit 
                                dollar amount under the rules of 
                                paragraphs (1) and (2) of subsection 
                                (m).''.
    (b) Rules Relating to Existing Projects.--Subparagraph (F) of 
section 42(h)(6) of the Internal Revenue Code of 1986 is amended by 
striking ``the nonlow-income portion'' and all that follows and 
inserting ``the nonlow-income portion and the low-income portion of the 
building for fair market value (determined by the housing credit agency 
by taking into account the rent restrictions required for the low-
income portion of the building to continue to meet the standards of 
paragraphs (1) and (2) of subsection (g)). The Secretary shall 
prescribe such regulations as may be necessary or appropriate to carry 
out this paragraph.''.
    (c) Conforming Amendments.--
            (1) Paragraph (6) of section 42(h) of the Internal Revenue 
        Code of 1986 is amended by striking subparagraph (G) and by 
        redesignating subparagraphs (H), (I), (J), and (K) as 
        subparagraphs (G), (H), (I), and (J), respectively.
            (2) Subclause (II) of section 42(h)(6)(E)(i) of such Code, 
        as amended by subsection (a), is further amended by striking 
        ``subparagraph (I)'' and inserting ``subparagraph (H)''.
    (d) Technical Amendment.--Subparagraph (I) of section 42(h)(6) of 
the Internal Revenue Code of 1986, as redesignated by subsection (c), 
is amended by striking ``agreement'' and inserting ``commitment''.
    (e) Effective Date.--The amendments made by this section shall 
apply to buildings with respect to which a written request described in 
section 42(h)(6)(H) of the Internal Revenue Code of 1986, as 
redesignated by subsection (c), is submitted after the date of the 
enactment of this Act.
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Save Affordable Housing Act of 2021
To amend the Internal Revenue Code of 1986 to repeal the qualified contract exception to the extended low-income housing commitment rules for purposes of the low-income housing credit, and for other purposes.
Save Affordable Housing Act of 2021
Rep. Neguse, Joe