From Preservation Action:
Last week the Neighborhood Homes Investment Act (S. 98) was reintroduced in the Senate. Led by Senators Ben Cardin (D-MD), Rob Portman (R-OH) and four other original cosponsors, this bill would create a federal tax credit to encourage revitalization of distressed homes. In urban and rural areas in many parts of the country, the cost of purchasing and renovating a home is greater than the value of the home's sale price. The bill would create a tax credit to cover the cost between building or renovating a home in these areas and the price at which they can be sold, up to 35% of the total development cost.
The bill focuses on communities with the greatest need, by targeting communities with poverty rates that are 130% or greater than the metro or state rate; have incomes that are 80% or less that area median income; and have home values that are below the metro or state median value. The bill also requires homes using the credit to be sold to homeowners making less than 140% of the area median income.
This bill was introduced during the last Congress and was included in the House passed infrastructure package, the Moving Forward Act, and could be targeted for inclusion in a future infrastructure package. The bill is expected to be introduced in the House soon. Preservation will continue to track this legislation, stay tuned for more.
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