H.R. 3126 — Promoting Submetering for Affordable Housing Act

This section increases the eligible basis for the low-income housing tax credit (LIHTC) to 105% (from 100%) for buildings with 4 or more units that use water submeters to bill each unit separately and provide tenants access to read the submeters—including in landlord-controlled areas—within 72 hours of a request. (The LIHTC provides federal tax credits to encourage construction and rehabilitation of affordable rental housing for low-income households.) The change applies to buildings receiving housing credit dollar amount allocations, or first taken into account under section 146 for tax-exempt bond-financed projects, after enactment.