1. Short title This Act may be cited as the Affordable and Homeless Housing Incentives Act of 2023 . 2. Nonrecognition of gain on property sold for use as affordable housing (a) In general Section 1033 of the Internal Revenue Code of 1986 is amended by redesignating subsection (k) as subsection (l) and by inserting after subsection (j) the following new subsection: (k) Sales for use as affordable housing (1) In general For purposes of this subtitle, if real property is sold or otherwise transferred to a qualified housing operator for use or development by such operator as affordable housing and such property meets the requirements of paragraphs (3) and (4), such sale or transfer shall be treated as an involuntary conversion to which this section applies. (2) Qualified housing operator For purposes of this section, the term qualified housing operator means any of the following: (A) A State or local government, or any political subdivision or instrumentality thereof. (B) A tribally designated housing entity (as such term is defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996). (C) A community housing development organization (as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act). (D) An organization— (i) described in section 501(c) and exempt from taxation under section 501(a), (ii) the purpose of which includes providing affordable housing, and (iii) which— (I) has received Federal, State, or local grant funds to develop or operate affordable housing, or (II) is described in section 42(h)(5)(B) with respect to a qualified low-income housing project that is allocated housing credit dollar amounts under section 42. (3) Affordable housing requirement The requirements of this paragraph are met with respect to property if such property has, as of the date of the sale or transfer referred to in paragraph (1), a covenant or other binding legal restriction sufficient to— (A) obligate, at all times during the 30-year period beginning