U.S. Reps. Mike Kelly, R-Pennsylvania, and Brian Higgins, D-New York, today introduced the Neighborhood Homes Investment Act (NHIA), a bill which would create a single-family tax credit similar to the low-income housing tax credit (LIHTC) to help finance the new construction or acquisition and rehabilitation of owner-occupied homes in distressed neighborhoods. The NHIA coalition estimates 500,000 homes would be built or substantially rehabilitated and more than $125 billion of total development activity over a decade of the tax incentive.

Higgins and Kelly introduced similar versions of the bill in previous sessions of Congress. Original co-sponsors for the 2023 introduction of the bill include Claudia Tenney, R-New York; Dan Kildee, D-Michigan; Randy Feenstra, R-Iowa; and Dwight Evans, D-Pennsylvania. The text of H.R. 3940 was not immediately available, but is identical to S. 657, which was introduced in March in the Senate.

A Notes from Novogradac blog post provides more information about the NHIA.