On March 23, Representative Brian Higgins (D-NY-26) introduced the Neighborhood Homes Investment Act (NHIA) in the House (H.R. 2143). Identical companion legislation was introduced by Senators Rob Portman (R-OH) and Ben Cardin (D-MD) in the Senate late January (S. 98). The NHIA, modeled after the successful Housing Credit and New Markets Tax Credit (NMTC), would create a federal tax credit to encourage investment in distressed urban, suburban, and rural neighborhoods that face a “value gap” – where the cost of rehabilitating or building a home is greater than the post-construction value of that home. The program would target communities facing the greatest need – those with high poverty rates, low median family incomes, and low home values – and could revitalize an estimated 500,000 homes, creating $100 billion in development revenue over the next 10 years.
The NHIA, which was first introduced last Congress in both the Senate, S. 4073, and the House, H.R. 3316, was also included in the House passed, H.R. 2, the Moving Forward Act. More recently, the Biden administration called for $20 billion to incentivize the building or rehabilitation of over 500,000 homes for low- and middle-income homebuyers through the NHIA through its American Jobs Plan. Enterprise applauds Representative Higgins, other members of Congress, and the Biden administration for their championship of this critical legislation, which could improve property values, increase family wealth, and decrease blight and abandonment in distressed communities.