Bill · H.R. 9870· House(119-HR-9870)
Affordable Housing Incentives Act
- Introduced
- 7/22/2026
- Last activity
- 7/22/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Scott Peters
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The Affordable Housing Incentives Act aims to amend the Internal Revenue Code of 1986. It seeks to allow for the nonrecognition of gain when real property is sold or transferred for use as affordable housing. This applies when the property is transferred to a qualified housing operator. To qualify, the property must meet specific affordable housing requirements and sale price limitations. The Secretary of the Treasury is tasked with ensuring compliance through audits and periodic reviews.
Yes· 3 of 9
Does this make housing cost less?+7
The bill incentivizes the sale of property to qualified operators specifically for the purpose of maintaining it as affordable housing or shelter for 30 years.
Would households on low incomes be better off under this?+6
The bill facilitates the creation and maintenance of affordable housing and shelters for low-income populations.
Is this likely to reduce homelessness?+5
The bill explicitly includes property used as a shelter or eligible for McKinney-Vento assistance as qualifying affordable housing.
The opposite
Does this make what the government does easier for the public to see?-2
The bill mandates that the Secretary of the Treasury conduct audits and periodic reviews of property to ensure compliance.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Relief for Property Transfers: The bill allows for the nonrecognition of gain on real property sold for use as affordable housing, treating such sales as an involuntary conversion (Section 2(a)(1)).
-
Support for Various Housing Entities: The bill defines "qualified housing operator" to include State, tribal, or local governments, public housing agencies, tribally designated housing entities, and community housing development organizations (Section 2(a)(2)).
-
Encouragement of Long-term Affordable Housing: Property may be protected through a covenant or binding legal restriction that requires it to be used as residential rental property or a shelter for a 30-year period (Section 2(a)(3)).
-
Support for Vulnerable Populations: The bill recognizes property used as a shelter or property eligible for assistance under title IV of the McKinney-Vento Homeless Assistance Act as qualifying affordable housing (Section 2(a)(3)(B)).
Potential Negative Impacts for People
-
Compliance and Oversight Burdens: The Secretary of the Treasury is required to ensure that property complies with affordability requirements through audit procedures and reviews not less often than every 5 years (Section 2(a)(4)(B) and (C)).
-
Strict Documentation Requirements: To meet the requirements, a taxpayer must attach a qualified appraisal to their tax return and ensure the sale price does not exceed the amount determined in that appraisal (Section 2(a)(5)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Social Issues And Justice
- Improves Affordable Housing+7Reduces Homelessness+5Improves Poverty Reduction+4
- Demographic And Interest Groups
- Good For Low Income Households+6Good For Native Americans+4Good For Urban Residents+3Good For Middle Class Households+2
- Economy And Finance
- Reduces Capital Gains Tax+5Improves Economic Growth+3
- Governance And Ideology
- Improves Government Transparency-2
- 7/22/2026
- Referred to the House Committee on Ways and Means.
- 1 Cosponsor added.
- Introduced in House
Brian FitzpatrickRepublican · Pennsylvania