To amend the Internal Revenue Code of 1986 to provide an appeal process for designation as qualified census tracts and difficult development areas under the low-income housing credit.

Amends the Internal Revenue Code to allow a state or local government agency to petition the Secretary of Housing and Urban Development (HUD) to review a HUD designation of (or failure to designate) an area as a qualified census tract (low income area) or difficult development area (an area with high construction, land, and utility costs relative to area median gross income).

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5198 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5198

To amend the Internal Revenue Code of 1986 to provide an appeal process 
 for designation as qualified census tracts and difficult development 
               areas under the low-income housing credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2014

 Mr. Gallego 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 provide an appeal process 
 for designation as qualified census tracts and difficult development 
               areas under the low-income housing credit.

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

SECTION 1. APPEAL PROCESS FOR DESIGNATION AS QUALIFIED CENSUS TRACTS 
              AND DIFFICULT DEVELOPMENT AREAS UNDER THE LOW-INCOME 
              HOUSING CREDIT.

    (a) In General.--Section 42(d)(5) of the Internal Revenue Code of 
1986 is amended by adding at the end the following new subparagraph:
                    ``(C) Appeal of qualified census tract and 
                difficult development area designations.--
                            ``(i) In general.--Any State or local 
                        government agency may petition the Secretary of 
                        Housing and Urban Development to review such 
                        Secretary's designation (or failure to 
                        designate) for any area within such agency's 
                        jurisdiction as a qualified census tract or 
                        difficult development area by filing an appeal 
                        with such Secretary during the 120-day period 
                        beginning on the date that such Secretary 
                        publishes the list of qualified census tracts 
                        and difficult development areas for the 
                        calendar year.
                            ``(ii) Application of population 
                        limitation.--If a designation is made pursuant 
                        to an appeal under clause (i) and such 
                        designation would (without regard to this 
                        clause) result in a violation of the limitation 
                        imposed under clause (ii)(II) or (iii)(II) of 
                        subparagraph (B) with respect to the relevant 
                        metropolitan statistical area, then the 
                        Secretary of Housing and Urban Development 
                        shall conduct a review of all of the qualified 
                        census tract or difficult development area 
                        designations in such metropolitan statistical 
                        area. If, after making any additional 
                        designations, or revocation of designations as 
                        a result of such review, such limitation is 
                        still exceeded, the census tract which is the 
                        subject of the appeal and such additional 
                        designations shall be substituted for so many 
                        of the last areas designated when such 
                        Secretary made its annual review and 
                        determination as is necessary to comply with 
                        such limitations.
                            ``(iii) Retroactive application of 
                        corrections.--Any designation, or revocation of 
                        designation, under clause (i) or (ii) with 
                        respect to any appeal shall be valid 
                        retroactive to the beginning of the calendar 
                        year to which the appeal relates.
                            ``(iv) Petition with respect to census 
                        block groups.--Any landowner whose property is 
                        located within a census block group or 
                        equivalent geographic area defined by the 
                        Bureau of the Census that meets the criteria 
                        for designation of a qualified census tract can 
                        petition the Secretary of Housing and Urban 
                        Development, and upon verification by such 
                        Secretary that such area meets such criteria, 
                        such Secretary shall designate such area as a 
                        qualified census tract. Subparagraph 
                        (B)(ii)(II) shall be applied without regard to 
                        any area designated under this clause.''.
                                 <all>