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HR 2854119th CongressIntroduced
Neighborhood Homes Investment Act
Introduced: Oct 29, 2025
Economy & TaxesEnvironment & ClimateHousing & Urban Development
Standard Summary
Comprehensive overview in 1-2 paragraphs
The Neighborhood Homes Investment Act creates a tax credit under the Internal Revenue Code to incentivize housing development and rehabilitation in distressed communities, aiming to address shortages by closing financing gaps and promoting affordable homeownership through state-administered allocations and compliance measures.
Key Points
- 1Establishes a tax credit for building or rehabilitating qualified residences in distressed census tracts, with credit amounts tied to development costs and income limits.
- 2Requires state neighborhood homes credit agencies to allocate funds via a qualified allocation plan, prioritizing projects that enhance stability and affordability in underserved areas.
- 3Imposes repayment obligations if homes are sold within five years, with exceptions for hardships, and excludes deductions if properties are converted to rentals.
Impact Areas
Low-income families in distressed urban and rural communitiesSmall residential builders and remodelersHousing market stability in areas with affordability challengesState agencies administering the credit program
Generated by legislative-analysis-v3 on Nov 8, 2025