“To amend the Internal Revenue Code of 1986 to allow for nonrecognition of gain on real property sold for use as affordable housing.”
No CRS summary available for this bill.
This section treats the sale or transfer of real property to a qualified housing operator for use as affordable housing as an involuntary conversion under section 1033, allowing nonrecognition of gain if the property carries a 30-year affordability covenant, the sale price does not exceed a qualified appraisal, and the transferor notifies the Secretary within 90 days. Qualified housing operators include state, tribal, or local governments and public housing agencies, tribally designated housing entities, community housing development organizations, and certain nonprofits that have developed or operated low-income housing projects under section 42. The Secretary must audit compliance at least every five years. The provision applies to sales and transfers after the date of enactment.