The Rural Historic Tax Credit Improvement Act increases tax credits for rehabilitating historic buildings in rural areas. It provides a 40% credit for affordable housing projects (where at least half the building meets affordability standards) and a 30% credit for other rural historic projects, with a $5 million cap on eligible costs. Taxpayers can transfer these credits to other taxpayers, requiring certification and reporting to the IRS. The bill also adds recapture rules for projects failing to meet affordable housing requirements and removes a basis adjustment for these credits, effective for projects placed in service after 2025.
This bill requires local governments receiving federal housing funds to track and report on zoning rules that limit housing supply. It mandates annual plans detailing current policies and future steps to adopt specific reforms, such as allowing duplexes in single-family zones, reducing parking requirements, or streamlining permits. The focus is on gathering data to identify barriers - like restrictive zoning - rather than forcing immediate changes. Localities must submit these reports every five years, but the information cannot be used for enforcement or to mandate policy shifts.
This bill increases tax credits for rehabilitating historic buildings in rural areas. It creates a new "applicable rural project" category: affordable housing projects get a 40% credit on rehabilitation costs (up to $5 million total), while other rural projects get a 30% credit. The credit can now be transferred to other taxpayers, unlike previous rules. It specifically targets buildings in areas outside cities over 50,000 people or adjacent urban zones, and requires affordable housing projects to maintain housing affordability standards. The changes apply to property placed in service after December 31, 2025.
HR 6784 creates a federal tax credit allowing homeowners to claim 50% of costs for removing lead hazards in homes built before 1978, directly affecting owners of older properties. The credit covers certified lead abatement (up to $3,000 per home) or interim safety measures (up to $1,000), with a lifetime cap of $4,000 per residence. Homeowners must use certified professionals, provide documentation of completed work meeting federal standards, and cannot double-dip with state/local credits. The credit expires after December 31, 2028, and applies to costs incurred after December 31, 2024.
HR 2710, the People Over Parking Act of 2025, removes requirements for developers to provide a set number of parking spots for new or substantially rebuilt residential, retail, commercial, or industrial buildings located within 0.5 miles of a qualifying public transit point. It directly affects property owners and local governments by giving developers sole discretion over parking provision in these areas, overriding conflicting state or local parking mandates. The bill defines "covered public transit points" as fixed guideway access (like train stations) or bus stops with two or more frequent routes (15-minute peak interval), excluding most standard bus stops. This policy change aims to reduce parking requirements near transit, potentially lowering development costs and land use for parking.
The Revitalize Our Neighborhoods Act of 2025 creates a competitive grant program administered by the Department of Housing and Urban Development (HUD) to eliminate blight and revitalize neighborhoods. It provides funding specifically for states, local governments, or multi-jurisdictional entities to carry out activities like demolishing deteriorated structures, boarding vacant properties, renovating abandoned buildings, and constructing affordable housing - all limited to low-income communities. Recipients must contribute at least 15% in matching funds (from federal programs, local sources, or property sales) and submit detailed 5-year plans for how the funds will be used. The bill prohibits using funds to acquire occupied homes and requires annual reports on project outcomes, geographic distribution, and populations assisted.
HR 7597, the Affordable Housing Barriers Transparency Act, requires the Department of Housing and Urban Development (HUD) to identify and analyze significant regulatory barriers to affordable housing in its annual report. Specifically, it amends HUD's reporting requirements to include a list of these barriers - defined as rules or requirements that hinder affordable housing development - and discuss how to reduce or remove them. This transparency measure directly affects HUD's reporting process, not housing residents or developers. The bill aims to provide clear data to help policymakers understand and address obstacles in creating affordable housing. It does not create new regulations or funding but focuses on making existing barriers visible for potential solutions.
The Affordable Housing Equity Act of 2025 increases tax credits for developers building housing designated for extremely low-income households. It allows developers to claim a 150% increase in the eligible tax credit basis for units where at least 20% of residents earn 30% of local median income or 100% of the federal poverty line. This change directly affects housing developers and low-income renters in qualifying projects by making such developments more financially feasible. The policy modifies existing tax credit rules under Section 42 of the Internal Revenue Code, applying to projects receiving credit allocations after the bill's enactment or with obligations after December 31, 2025.
The INCREASE Housing Affordability Act creates a new tax credit for converting commercial buildings (like offices) into residential housing. Property owners who convert eligible buildings can claim a tax credit equal to 15% of qualified conversion costs, with limits of $200,000 per residential unit or $10 million per building. The bill also provides bonus credits for projects with rent-restricted units for lower-income residents (10-20% more credit) and for paying prevailing wages (15% more credit). To qualify, buildings must have been nonresidential for at least 15 years and undergo substantial conversion (with expenditures exceeding adjusted basis or $15,000).
HR 6327, the Rural Housing Regulatory Relief Act, exempts certain rural housing projects from requiring environmental reviews under the National Environmental Policy Act (NEPA). It applies specifically to construction or modifications on "infill sites" (defined as sites with existing water, sewer, and road infrastructure, excluding greenfield areas or high-risk flood/fire zones) using USDA housing programs like Section 502 or 515. The bill removes the need for NEPA reviews for these projects, aiming to speed up housing development. It also requires the USDA Secretary to report to Congress within five years on whether the exemption reduced review times, costs, and impacts on rural affordable housing. This change directly affects rural housing providers and applicants under the specified USDA programs.
