Continuing Care Seniors Housing Act of 2005

Continuing Care Seniors Housing Act of 2005 - Amends Internal Revenue Code provisions which allow a tax exemption for the interest imputed to below-market rate interest loans to certain continuing care facilities to: (1) decrease from 65 to 62 the qualifying age for lenders to continuing care facilities; (2) eliminate the $90,000 limitation on loans to such facilities; (3) modify continuing care contract requirements; and (4) revise the definition of continuing care facility to include an independent living unit, plus an assisted living or nursing facility, or both.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4608 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4608

   To amend the Internal Revenue Code of 1986 to modernize the rules 
   governing the treatment of qualifying continuing care facilities.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2005

 Mr. Shaw (for himself, Mr. Foley, Mr. Lewis of Kentucky, Mrs. Johnson 
of Connecticut, Mr. Boswell, and Mr. Calvert) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to modernize the rules 
   governing the treatment of qualifying continuing care facilities.

    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 ``Continuing Care Seniors Housing Act 
of 2005''.

SEC. 2. AMENDMENTS TO THE EXCEPTION FOR CONTINUING CARE FACILITIES.

    (a) In General.--Subsection (g) of section 7872 of the Internal 
Revenue Code of 1986 (relating to exceptions for certain loans to 
qualified continuing care facilities) is amended to read as follows:
    ``(g) Exception for Loans to Qualified Continuing Care 
Facilities.--
            ``(1) In general.--This section shall not apply for any 
        calendar year to any below-market loan made by a lender to a 
        qualified continuing care facility pursuant to a continuing 
        care contract if the lender (or the lender's spouse) attains 
        age 62 before the close of such year.
            ``(2) Continuing care contract.--For purposes of this 
        section, the term `continuing care contract' means a written 
        contract between an individual and a qualified continuing care 
        facility under which--
                    ``(A) the individual or individual's spouse may use 
                a qualified continuing care facility for their life or 
                lives,
                    ``(B) the individual or individual's spouse will be 
                provided with housing in an independent living unit 
                (which has additional available facilities outside such 
                unit for the provision of meals and other personal 
                care), an assisted living facility, or a nursing 
                facility, as appropriate for the health of such 
                individual or individual's spouse, and
                    ``(C) the individual or individual's spouse will be 
                provided assisted living or nursing care as the health 
                of such individual or individual's spouse requires.
            ``(3) Qualified continuing care facility.--
                    ``(A) In general.--For purposes of this section, 
                the term `qualified continuing care facility' means 1 
                or more facilities--
                            ``(i) which are designed to provide 
                        services under continuing care contracts,
                            ``(ii) that include an independent living 
                        unit, plus an assisted living or nursing 
                        facility, or both, and
                            ``(iii) substantially all of the 
                        independent living unit residents of which are 
                        covered by continuing care contracts.
                One or more facilities shall be treated as a qualified 
                continuing care facility for any calendar year only if 
                such facilities meet the requirements of clauses (i), 
                (ii), and (iii) at all times during such year.
                    ``(B) Nursing homes excluded.--The term `qualified 
                continuing care facility' shall not include any 
                facility which is of a type which is traditionally 
                considered a nursing home.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to calendar years beginning after December 31, 2005, with respect 
to loans made before, on, or after such date.
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