Bipartisan Group of Senators Reintroduce Neighborhood Homes Investment Act
Legislation to create a tax credit for the rehabilitation of deteriorated single-family homes in distressed neighborhoods was introduced today in the U.S. Senate. The Neighborhood Homes Investment Act would create a credit for the lesser of the excess of development costs over the sales price, 35% of development costs or 28% of the national median price for new homes. It would be available for qualifying homes sold at prices generally no more than four times the applicable area median income (AMI) to buyers whose income is no more than 140% of the AMI. The legislation–which was introduced in two previous sessions of Congress–calls for an annual state cap of $7 per capita or $9 billion, whichever is higher. The credits would be available after the homes are completed and sold to a homeowner. The legislation’s sponsors are Sens. Ben Cardin, D-Maryland, Todd Young, R-Indiana, Ron Wyden, D-Oregon, Jerry Moran, R-Kansas and Sherrod Brown, D-Ohio.
Housing legislation and regulation will be a focus of the Novogradac 2023 Affordable Housing Conference, April 27-28 in San Francisco.