U.S. Rep. Mike Carey (R-OH) aims to help provide more affordable housing across the United States via proposed legislation that would create tax incentives for renovating older rental properties.
The Housing Opportunities and Preservation Enhancement (HOPE) Act, H.R. 9573, would help rehabilitate aging rental properties, expand access to quality affordable housing, and encourage partnerships that put residents first, said the congressman, who sponsored the bill on July 2.
“We were able to expand and make permanent the Low-Income Housing Tax Credit through the Working Families Tax Cuts, and this legislation builds on that success by preserving more affordable housing for the families who need it most,” Rep. Carey said. “By modernizing the tax code, we can ensure more hardworking families have access to safe, affordable places to call home.”
If enacted, the bill would amend the Internal Revenue Code to encourage the purchase and major renovation of existing residential rental properties that are at least 15 years old.
To qualify for these new tax incentives, a property must undergo significant rehabilitation of at least $20,000 per unit and be owned by partnerships involving non-profit, government, or tribal entities.
The legislation also would require that at least 70 percent of the units be rent-restricted for families making 80 percent or less of the local area median income, according to a bill summary provided by his staff.
Additionally, H.R. 9573 would ensure long-term preservation through a 10-year right of first refusal for qualified buyers at below-market prices while cutting IRS red tape by exempting investors from standard passive activity loss and profit-motive restrictions, the summary says.
The National CORE, the National Church Residences, and Novogradac & Company support the proposed bill.