Prohibition of local approval and contribution requirements

(a) In general Paragraph (1) of section 42(m) of the Internal Revenue Code of 1986 is amended— (1) by striking clause (ii) of subparagraph (A) and by redesignating clauses (iii) and (iv) thereof as clauses (ii) and (iii), respectively, and (2) by adding at the end the following new subparagraph: (E) Local approval or contribution not taken into account The selection criteria under a qualified allocation plan shall not include consideration of— (i) any support or opposition with respect to the project from local or elected officials, or (ii) any local government contribution to the project, except to the extent such contribution is taken into account as part of a broader consideration of the project's ability to leverage outside funding sources, and is not prioritized over any other source of outside funding.. (b) Effective date The amendments made by this section shall apply to allocations of housing credit dollar amounts made after December 31, 2026.