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H.R. 186 (104th): Public Housing Rehabilitation Equity Act

The text of the bill below is as of Jan 4, 1995 (Introduced).

Source: GPO

HR 186 IH


1st Session

H. R. 186

To amend the Internal Revenue Code of 1986 to facilitate the rehabilitation of public housing using the low-income housing credit.


January 4, 1995

Mrs. COLLINS of Illinois introduced the following bill; which was referred to the Committee on Ways and Means


To amend the Internal Revenue Code of 1986 to facilitate the rehabilitation of public housing using the low-income housing credit.

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


    This Act may be cited as the ‘Public Housing Rehabilitation Equity Act’.


    (a) IN GENERAL- Subsection (i) of section 42 of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended by adding at the end thereof the following new paragraph:


        ‘(A) IN GENERAL- In the case of an agreement with respect to public housing, if all of the parties to the agreement characterize such agreement as a lease and elect to have the provisions of this paragraph apply with respect to such agreement, and if the requirements of subparagraph (B) are met, then, for purposes of this subtitle--

          ‘(i) such agreement shall be treated as a lease entered into by the parties (and any lessor shall be deemed to have entered into the lease in the course of carrying on its trade or business), and

          ‘(ii) the lessor shall be treated as the owner of the property and the lessee shall be treated as the lessee of the property.

        ‘(B) CERTAIN REQUIREMENTS MUST BE MET- The requirements of this subparagraph are met if--

          ‘(i) the lessee is a public housing agency (as defined in section 3(b)(6) of the United States Housing Act of 1937),

          ‘(ii) the lessor agrees to incur sufficient rehabilitation expenditures to be allowed a credit by reason of subsection (e) not later than the 2d year after entering into the lease,

          ‘(iii) the term of the lease ends at the close of the compliance period for the building, and

          ‘(iv) at the end of the lease term--

            ‘(I) all of the property subject to the lease is owned by the public housing agency, and

            ‘(II) in the case of property in existence on the date of the enactment of this paragraph, the applicable fraction for the property (relating to low-income occupancy) is not less than the applicable fraction for such property on such date.

        ‘(C) PUBLIC HOUSING- The term ‘public housing’ has the meaning given such term by section 3(b)(1) of the United States Housing Act of 1937.

        ‘(D) NO OTHER FACTORS TAKEN INTO ACCOUNT IN DETERMINING WHETHER THERE IS A LEASE- If the requirements of subparagraphs (A) and (B) are met with respect to any transaction described in subparagraph (A), no other factors shall be taken into account in making a determination as to whether subparagraph (A)(i) or (ii) applies with respect to the transaction.

        ‘(E) 10-YEAR RULE NOT TO APPLY- Subsection (d)(2)(B)(ii) shall not apply to any property which is the subject of a transaction to which subparagraph (A) applies.’

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to agreements entered into after December 31, 1995.