Affordable Housing Equity Act of 2021
This bill requires allocations through 2031 of low-income housing credit amounts for buildings designated to serve certain low-income households (i.e., aggregate household income does not exceed the greater of 30% of area median gross income, or 100% of an amount equal to the federal poverty line). The bill also increases the rate of the low-income housing credit for projects designated to serve such low-income households.
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.

    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 ``Affordable Housing Equity Act of 
2021''.

SEC. 2. BUILDINGS DESIGNATED TO SERVE EXTREMELY LOW-INCOME HOUSEHOLDS.

    (a) Reserved State Allocation.--
            (1) In general.--Section 42(h) of the Internal Revenue Code 
        of 1986 is amended--
                    (A) by redesignating paragraphs (6), (7), and (8) 
                as paragraphs (7), (8), and (9), respectively; and
                    (B) 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, 2031.''.
            (2) Conforming amendment.--Section 42(b)(4)(C) of such Code 
        is amended by striking ``(h)(7)'' and inserting ``(h)(8)''.
    (b) 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,
                        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.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to allocations, and determinations, of housing credit dollar 
amount after December 31, 2021.
                                 <all>
Affordable Housing Equity Act of 2021
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.
Affordable Housing Equity Act of 2021
Rep. Gomez, Jimmy