H.R. 4205 – Save Affordable Housing Act of 2021

AI-Generated Summary

Updated February 8, 2026 at 5:00 AM UTC

The Save Affordable Housing Act of 2021 changes the tax rules for the low‑income housing credit. It removes the “qualified contract” exception for buildings that received a credit allocation before January 1, 2019, and updates how the non‑low‑income and low‑income portions of those buildings are valued. The changes apply to developers and owners of affordable‑housing projects that use the credit and to the agencies that administer the program.

Key Provisions

Adds a new clause defining eligible buildings as those that got a credit allocation before Jan 1 2019, eliminating the qualified‑contract exception.
Requires fair‑market‑value calculations for both the low‑income and non‑low‑income portions of a building, taking rent‑restriction requirements into account.
Renumbers and updates related subparagraphs in the Internal Revenue Code and changes the term “agreement” to “commitment.”
Sets the amendments to take effect for any written request submitted after the law’s enactment.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 28, 2021

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HouseIntro Referral

Introduced in House

June 28, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 28, 2021

Bill Text

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Introduced in HouseIssued June 28, 2021

I

117th CONGRESS

1st Session

H. R. 4205

IN THE HOUSE OF REPRESENTATIVES

June 28, 2021

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.

1.

Short title

This Act may be cited as the Save Affordable Housing Act of 2021.

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, 2019, or

(II)

in the case of a building any portion of which is financed as described in paragraph (4), which received before January 1, 2019, a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building is eligible to receive an allocation of housing credit dollar amount under the rules of paragraphs (1) and (2) of subsection (m).

.

(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

The amendments made by this section 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.