Bill > HR2854

This bill establishes a new tax credit program called the Neighborhood Homes Investment Act designed to encourage housing development and rehabilitation in distressed communities. The bill creates a tax credit for developers and homeowners who build or substantially rehabilitate homes in low-income census tracts with specific economic characteristics, such as low median family income, high poverty rates, and low home values. The credit can be claimed for new construction or rehabilitation of residential properties with up to four units, including condominiums and cooperative housing units. Developers can receive a tax credit up to 40% of eligible development costs, while homeowners can receive assistance for rehabilitating their existing homes. The credit is allocated by state neighborhood homes credit agencies, which must follow specific guidelines to prioritize projects that contribute to neighborhood stability and long-term homeownership. To ensure continued affordability, the bill includes provisions requiring repayment if a home is sold within five years and limits sales prices based on local median family income. The program aims to address housing supply shortages, particularly in low-income and distressed communities, by providing financial incentives for residential development and improvement. The tax credit would be available for taxable years beginning after December 31, 2025.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2854/all-info