HR 2854

The Neighborhood Homes Investment Act aims to address the shortage of affordable housing in the United States by creating a tax credit for neighborhood revitalization projects. This credit would incentivize the construction and rehabilitation of homes in distressed communities, particularly in rural and urban areas, and would be available to small businesses. The bill establishes a ‘neighborhood homes credit’ that can cover development costs, and sets criteria for identifying ‘qualified census tracts’ – areas with high poverty rates and low median home values. It also includes provisions for repayment of the credit and establishes a framework for state-level allocation of funds, with a focus on supporting projects that benefit low-income communities.