DASH Act

# Summary of Sections 213-215: Housing Credit Provisions This legislation introduces three new housing credit provisions designed to address housing shortages, particularly in distressed communities, and support homeownership: ## Section 213: Middle-Income Housing Credit - Creates a new "middle-income housing credit" (Section 42A) for buildings meeting specific income requirements (60-100% of area median income) - Requires an extended 15-year commitment to maintain middle-income status - Sets strict requirements for building location (must be in qualifying census tracts), unit types, and income verification - Includes detailed allocation rules for housing credit agencies - Requires annual reporting to the IRS - Has a 5-year period for the credit to be claimed - Includes provisions to prevent avoidance of the credit rules ## Section 214: Neighborhood Homes Credit - Establishes a new "neighborhood homes credit" (Section 42B) for rehabilitating homes in distressed communities - Provides credits for the rehabilitation of homes sold to qualified homeowners (with income limitations) - Requires homes to be located in specific census tracts (with income, poverty, and housing value criteria) - Includes a 5-year requirement that homes be used as principal residences - Features a repayment mechanism if homes are sold within 5 years (50% of gain, reduced by 10% per year) - Includes specific provisions for condominiums and cooperative housing - Requires annual reporting to the IRS ## Section 215: First-Time Homebuyer Refundable Credit - Creates a new refundable credit for first-time homebuyers (20% of purchase price, up to $15,000) - Includes income limitations (140% of area median income) and purchase price limits - Requires the home to be used as a principal residence - Includes a recapture provision if the home is sold within 5 years (phased out from 100% to 20%) - Has specific documentation requirements for claiming the credit (social security numbers, address, purchase price, etc.) - Includes provisions to prevent fraudulent claims These provisions aim to increase housing inventory, support homeownership, particularly for middle-income and first-time buyers, and revitalize distressed communities through targeted tax incentives.