Housing Opportunities and Preservation Enhancement Act of 2026

The Housing Opportunities and Preservation Enhancement Act of 2026 provides specific tax incentives to encourage the rehabilitation and long-term preservation of low-income rental housing. It defines "qualified property" as buildings that have been in service for over 15 years, are owned by specific non-profit or government entities, and maintain restrictions ensuring at least 70% of units are occupied by low-income tenants. To qualify, these buildings must undergo significant rehabilitation spending within a 24-month period, a fact that must be certified by an independent accountant. The bill grants these properties exemptions from various tax rules, including passive activity limitations and profit motive requirements, while also allowing for accelerated depreciation over 15 years. Additionally, it clarifies how gains are calculated upon sale and ensures that certain capital grants used for construction do not reduce the property's tax basis.