Neighborhood Homes Investment Act

Increased Housing Supply in Distressed Areas: The bill seeks to address the housing shortage by closing the "value gap" in distressed communities through tax credits (Section 2(a)).

Support for Homeowners Seeking Improvements: The credit can assist individuals who own homes but have difficulty securing financing for repairs and improvements (Section 2(a)).

Affordable Homeownership Opportunities: The credit is tied to "affordable sales," which are priced based on a multiple of the median family income for the area, making homes more accessible to qualified homeowners (Section 3(d)).

Economic Revitalization: The credit is intended to revitalize distressed communities in both rural and urban geographies (Section 2(b)).

Protection for Homeowners During Rehabilitation: The bill requires credit agencies to create standards to protect owners during rehabilitation, including the capacity to pay costs not covered by the credit (Section 3(f)(1)(F)).

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

Lien on Properties: To ensure potential repayments, the neighborhood homes credit agency will place a lien on each qualified residence that is built or rehabilitated as part of a qualified project (Section s3(g)(3)).

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