Senators Introduce ‘Neighborhood Homes Investment Act’ to Expand Affordable Homeownership Opportunities and Revitalize Communities
Industry Update
March 7, 2023
Source: www.prnewswire.com
Senators Ben Cardin (D-MD) and Todd Young (R-IN) introduced legislation to create a new tax incentive that would produce 500,000 starter homes in under-resourced communities over the next decade. The Neighborhood Homes Investment Act (“Neighborhood Homes”) would address the needs of families throughout the country who are struggling to purchase homes as costs continue to rise and the supply of homes remains limited.
In many areas, the cost to build or rehab a home exceeds the price at which the home could be sold once completed. The new tax credit would help fill that “value gap” – up to 35 percent of eligible development costs for new homes – thus reducing the developer’s risk of loss and encouraging investments in new and rehabbed housing. This will in turn make homeownership more feasible and support broader revitalization and economic development strategies in disinvested urban and rural communities.
Joining Senators Cardin and Young as original co-sponsors of the legislation were Senators Ron Wyden (D-OR), Jerry Moran (R-KS) and Sherrod Brown (D-OH). Similar legislation introduced in the previous session of Congress was co-sponsored by 133 Members of the House and Senate from 37 different states, from Delaware to North Dakota to California.
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