H.R. 4572

119th CONGRESS 1st Session

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 · Sponsor: Mr. Neguse · Committee: Committee on Ways and Means

Table of contents

• H.R. 4572
  • SEC. 1. Short title
  • SEC. 2. Repeal of qualified contract option

SEC. 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 of the Internal Revenue Code of 1986 is amended by inserting before . section 42(h)(6)(E)(i)
  • (2) Buildings described
    • (iii) A building described in this clause is a building—
    • which received its allocation of housing credit dollar amount before January 1, 2025, or
    • 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.
    • Subparagraph (E) of section 42(h)(6) of such Code is amended by adding at the end the following new clause:
• (b) Rules relating to existing projects
  • Subparagraph (F) of of the Internal Revenue Code of 1986 is amended by striking the nonlow-income portionand 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.. section 42(h)(6)
• (c) Conforming amendments
  • Paragraph (6) of 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. section 42(h)
  • 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 of the Internal Revenue Code of 1986, as redesignated by subsection (c), is amended by striking agreementand inserting commitment. section 42(h)(6)
• (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 of the Internal Revenue Code of 1986, as redesignated by subsection (c), is submitted after the date of the enactment of this Act. section 42(h)(6)(H)