Neighborhood Homes Investment Act

Increased Housing Development: The credit is designed to close the "value gap" between development costs and sale prices, which can increase housing development and rehabilitation in distressed communities (Section 2(a)(4) and (5)).

Support for Low-Income Communities: The bill targets qualified census tracts which include areas with specific poverty rates and median family income levels, aiming to assist those disproportionately impacted by housing shortages (Section 2(a)(1) and (2)).

Affordable Homeownership: The credit applies to "affordable sales," which are sales to qualified homeowners at prices tied to median family income, helping to promote neighborhood stability (Section 2(a)(3) and Section 3(d)(1)).

Help for Homeowners with Repair Needs: The act addresses individuals who own homes but have difficulty securing financing for home repairs and improvements (Section 2(a)(3)).

Benefits for Specific Home Types: The credit covers a variety of residential options, including houses with up to four units, condominiums, and cooperative housing (Section s3(c)(1)(B)).

Repayment Requirements for Sellers: If a qualified residence is sold during a specific 5-year period following the affordable sale, the seller must pay a "repayment amount" back to the credit agency (Section 3(g)(1)).

Liens on Properties: To ensure the potential repayment of the credit, the neighborhood homes credit agency will place a lien on each qualified residence that is built or rehabilitated (Section 3(g)(3)).

Income Restrictions for Tax Benefits: To qualify for the sale benefits, a homeowner's family income must not exceed 140 percent of the median family income for the applicable area (Section 3(d)(2)).

Loss of Deductions: If a qualified residence is converted to rental housing during the 5-year period following the sale, the owner is denied a deduction for expenses paid or incurred for renting that residence (Section 3(h)(10)).