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Neighborhood Homes Investment Act

H.R. 2854 Rep. Mike Kelly (R-PA-16) In committee
Bill text PDF
  1. Introduced Apr 10
  2. Committee Apr 10
  3. Passed House Next
  4. Passed Senate Not yet
  5. To President Not yet
  6. Law Not yet
Where it stands
In committee, Apr 10, 2025Next: House vote
566d ago Apr 10, 2025: Referred to the House Committee on Ways and Means.
Final votes
No roll callsNo recorded vote on this bill yet
Lobbying
1company, 5 filings
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2trades in the last 90 days
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Companies lobbying on this bill

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Real Estate 1
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Summary

This bill amends the Internal Revenue Code to create a tax credit for neighborhood revitalization, specifically to encourage the development and rehabilitation of owner-occupied homes in distressed communities. The credit is designed to close the financing gap between development costs and sale prices for affordable homes.

Sec. 3, Neighborhood homes credit: The bill establishes a new tax credit for taxpayers who build or substantially rehabilitate and sell qualified residences in an affordable sale. The credit amount is the lesser of: the excess of reasonable development costs over the sale price (or up to 120% of that if needed for financial feasibility), 40% of eligible development costs, or 32% of the national median sale price for new homes. A qualified residence is a house with 4 or fewer units, a condominium, or a cooperative unit located in a qualified census tract. An affordable sale is a sale to a qualified homeowner (income at or below 140% of area median family income) at a price not exceeding 4 times the area median family income (with higher limits for 2-4 unit homes). The credit is allocated by state neighborhood homes credit agencies, with each state's annual credit ceiling equal to the greater of $9 per capita or $12 million, adjusted for inflation after 2025. Agencies must follow a qualified allocation plan, set standards for costs and construction quality, and report annually to the Treasury. If a qualified residence is sold within 5 years of the affordable sale, the seller must repay a portion of the gain (50% reduced by 10% per year) to the agency, which must use the funds for other qualified projects. The agency may waive repayment for hardship. The bill also includes special rules for condominiums, cooperative housing, related party sales, and inflation adjustments.

Summary of the bill text as introduced in House (Apr 10, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.

Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 28, 2026.