Save Affordable Housing Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4572 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4572

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 2025

  Mr. Neguse 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 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 
2025''.

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, 2025, or
                                    ``(II) in the case of a building 
                                any portion of which is financed as 
                                described in paragraph (4) and which 
                                received before January 1, 2025, under 
                                the rules of paragraphs (1) and (2) of 
                                subsection (m), a determination from 
                                the issuer of the tax-exempt bonds or 
                                the housing credit agency that the 
                                building would be eligible under the 
                                qualified allocation plan to receive an 
                                allocation of housing credit dollar 
                                amount or that the credits to be earned 
                                are necessary for financial feasibility 
                                of the project and its viability as a 
                                qualified low-income housing project 
                                throughout the credit period.''.
    (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.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall take effect on the date 
        of the enactment of this Act.
            (2) Rules relating to existing projects.--The amendments 
        made by subsection (b) 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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