Tax Credit for Neighborhood Revitalization: Boosting Affordable Homeownership in Distressed Areas.
This Act establishes a new federal tax credit for developers who build or substantially rehabilitate homes in designated distressed neighborhoods and sell them affordably to qualified low-to-moderate-income families. The goal is to close the financial gap between renovation costs and sale prices, aiming to create 500,000 new affordable homes over ten years and stabilize communities. Citizens benefit from increased inventory of quality, affordable starter homes and support for existing homeowners needing major repairs.
Key points
Affordable Housing Creation: Provides tax relief to investors who sell newly built or renovated homes to families earning up to 140% of the area's median income at capped, affordable prices.
Anti-Flipping Measure: If the home is sold within five years of the affordable purchase, the seller must repay a portion of the profit, discouraging quick speculation and ensuring long-term stability.
Support for Current Owners: Existing low-income homeowners in these areas can access a tax credit (up to $50,000) to cover the costs of substantial rehabilitation of their primary residence.
Expired
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