Neighborhood Homes Investment Act

The Neighborhood Homes Investment Act creates a new tax credit to encourage rehabilitation and construction of affordable homes in distressed communities. The credit, calculated as the lesser of the rehabilitation cost difference or 35% of development costs, is designed to address the "value gap" preventing housing revitalization. It requires homes to be sold to qualified homeowners (earning no more than 140% of area median income) in designated census tracts with high poverty rates and low homeownership. Homeowners must keep the homes as their primary residence for five years, after which they may sell but must repay a portion of the credit if sold within that period. The bill aims to generate 500,000 new homes over 10 years while promoting fair housing practices and neighborhood revitalization.