Kelly, Larson reintroduce Neighborhood Homes Investment Act

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WASHINGTON, D.C. -- Today, U.S. Reps. Mike Kelly (R-PA), Chairman of the Ways & Means Subcommittee on Tax and John Larson (D-CT), Ranking Member of the Ways & Means Social Security Subcommittee, reintroduced the Neighborhood Homes Investment Act. This bipartisan legislation creates a new tax incentive to build and preserve more than 500,000 affordable, single-family homes for homeownership over ten years in under-resourced communities.

"The Neighborhood Homes Investment Act will allow homeowners and developers to not only affordably restore beautiful homes, but also to build and create more affordable housing in communities that need it the most. For the families whose dreams of homeownership feel unattainable, this bill could make those dreams closer to reality," said Rep. Kelly. "I am proud to join my colleagues in leading the bipartisan Neighborhood Homes Investment Act, which will create stronger homes, stronger families, and stronger neighborhoods."

"I am proud to join my colleague, Rep. Mike Kelly, to introduce a bipartisan solution to bring down costs and increase the supply of affordable housing," said Rep. Larson. "The Neighborhood Homes Investment Act will tackle our housing crisis by incentivizing the construction of new homes and the revitalization of vacant homes in need of repair. We will continue to work together to spur the development of good, quality housing in the Northeast and across the country, and make homeownership a reality for more of our nation's families."

The Neighborhood Homes Investment Act gained strong backing in the 118th Congress, with 111 House cosponsors, including 17 members of the House Ways & Means Committee. The Senate version of the bill had 16 cosponsors last Congress, and a companion Senate bill is anticipated to be reintroduced later this month by Senators Todd Young (R-IN) and Mark Warner (D-VA).

House original co-sponsors include Representatives Randy Feenstra (R-IA), Vern Buchanan (R-FL), Carol Miller (R-WV), Mike Carey (R-OH), David Kustoff (R-TN), Nicole Malliotakis (R-NY), Nathaniel Moran (R-TX), Terri Sewell (D-AL), Danny Davis (D-IL), and Jimmy Panetta (D-CA).

BACKGROUND

Under this legislation:

• Tax credits would be awarded to project sponsors through statewide competitions administered by state housing finance agencies.
• Sponsors, which could include developers, lenders, or local governments, would use the credits to raise capital for their projects, and investors would claim the credits against their federal income taxes.
• The credits can only be claimed for homes developed or rehabilitated in eligible low-income
  communities, and only after the homes are sold and occupied by lower or middle-income families.

The Neighborhood Homes Coalition estimates that the legislation would support a substantial economic impact over the next 10 years. The 500,000 homes that would be developed or rehabbed would:

• Spur $125 billion in total development activity.
• Support 861,000 jobs in construction and construction-related industries.
• Create $56 billion in wages and salaries.
• Produce $26 billion in federal and $12 billion in state and local tax revenues and fees.

You can read the full bill text here.

Issues:Tax Reform, Small Business, & The Economy