Legislation Reintroduced to Help Revitalize Distressed Homes

This Advocacy Update has been reposted from our colleagues at Preservation Action.

Last month, Rep. Mike Kelly (R-PA) and Rep. Brian Higgins (D-NY) introduced the Neighborhood Homes Investment Act (H.R. 3940, S. 657) in the House. Companion legislation was introduced in the Senate earlier this year. This bill would create a federal tax credit to encourage revitalization of distressed homes. 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 rehabilitating a home in these areas and the price at which they can be sold, up to 35% of the total development cost. Similar legislation was introduced during the last Congress and garnered significant bipartisan support.

The bill focuses on communities with the greatest need, by targeting distressed areas. This includes neighborhoods with high poverty rates, incomes below the area median income; and home values that are below the metro or state median value. The Neighborhood Homes Coalition put together an interactive map where you can see what neighborhoods could qualify for funding. The Coalition estimates that the bill could lead to 500,000 homes over 10 years being rehabilitated or constructed.

This legislation has the potential to significantly assist owners of historic and older homes. Preservation Action will continue to monitor this important legislation.