Affordable Housing Act

Affordable Housing Act - Title I: Housing Assistance - Directs the Secretary of Housing and Urban Development to provide construction and rehabilitation grants and operating assistance in order to expand and maintain the permanent supply of affordable housing for very low-income and other lower income families. Grants priority to homeless families.

Sets forth program requirements, including recipient preferences, tenant rights, and assistance use restrictions.

Requires an annual program report to the Congress.

Authorizes appropriations beginning in FY 1989. Terminates such authorization upon the acquisition, construction, or rehabilitation of a specified number of housing units.

Title II: Revenue Measures - Amends the Internal Revenue Code to increase to 25 percent the rate of the alternative minimum tax for both corporate and noncorporate taxpayers. (The current corporate rate is 20 percent, 21 percent for noncorporate taxpayers.)

Reduces from 80 percent to 50 percent the income tax deduction for business meal and entertainment expenses.

Amends provisions relating to the basis for calculating taxes on property a taxpayer acquires from a decedent to: (1) eliminate a special rule with respect to the stock of a domestic international sales corporation (DISC); (2) update the carryover basis rules to refer to property acquired from decedents dying after December 31, 1988 (current law refers to 1979); and (3) permit a tax exclusion of gain when an estate's executor uses certain appreciated carryover basis property to satisfy the right of a person to receive a pecuniary request.

Repeals capital gains rules relating to foreign investment company stock acquired from a decedent.

Requires estate executors to: (1) file information returns in connection with carryover basis property; and (2) provide written notice to recipients of such property. Prescribes penalties for failure to report.

Increases the excise taxes on cigars (from 75 cents to $1.88 per thousand for small cigars), cigarettes (from eight cents to 16 cents per thousand for small cigarettes and from $16.80 to $33.60 per thousand for large cigarettes), cigarette papers and tubes, and smokeless tobacco (from 24 cents to 60 cents per pound for snuff and from eight cents to 20 cents per pound for chewing tobacco).