Low-Income Housing Revitalization Act

Low-Income Housing Revitalization Act - Amends Internal Revenue Code (IRC) provisions relating to the low-income housing credit to: (1) increase the credit from four percent to nine percent with respect to new buildings that are federally subsidized; (2) reallocate unused credit amounts among other States for their housing credit agencies; and (3) permit carryover to the succeeding year of a housing credit amount, if it is reasonably likely that the building will be put into service then.

Extends the low-income housing credit through 1991.

Amends IRC accounting provisions to exempt low-income housing credit activities from limitations on passive losses.

Revises the accelerated cost recovery system in connection with low-income residential rental property to reduce the applicable recovery period from 27.5 to 20 years.

Disallows an income tax deduction for any expense relating to residential rental units that violate State or local building, health, or safety codes and are not brought into compliance. Requires the regulatory agency that notifies a taxpayer of the substandard conditions to file an information return with respect to affected taxpayers.

Excludes deductions for business expenses, interest on indebtedness, and taxes from calculations to determine the passive loss limitation in connection with rental real estate activity relating to a qualified low-income housing project in which a noncorporate taxpayer actively or materially participates.