The Community Housing Act of 2026 aims to increase the supply and affordability of housing by directing significant new federal funding to programs like the Housing Trust Fund and the Capital Magnet Fund. It establishes a new Office of Community Land Use and Zoning within HUD to help states and localities reform restrictive zoning laws that limit housing development. The bill also expands financial support for rural areas, creates a new fund to promote shared equity and community land trusts, and removes a legal cap on the number of public housing units agencies can manage. Additionally, it provides grants to protect tenants from eviction and authorizes low-cost financing options for affordable housing projects.
This bill creates a new tax incentive to encourage the construction and renovation of affordable housing near public transportation hubs. It directly affects developers and investors by increasing the Low-Income Housing Tax Credit for buildings located within half a mile of rail, bus, harbor, or waterway stations in high-density zones. The credit amount is boosted to 150% of the standard value, rising to 155% for projects in Hawaii, Alaska, or U.S. territories, with limits on how many areas can be designated in each region. Additionally, the bill requires the Department of Housing and Urban Development to study geographic cost-of-living differences and propose changes to how tax credit funds are distributed among states.
The Housing Supply Fund Act of 2026 creates a new $5 billion fund within the Treasury Department to provide competitive grants for affordable housing projects. Eligible recipients include certified financial institutions, nonprofit housing organizations, and public housing agencies, with funds intended for low- and very low-income renters and homeowners earning up to 120 percent of the area median income. Grant money can be used to establish loan reserves, capitalize revolving funds, provide risk-sharing loans, or convert commercial properties into affordable housing in urban, suburban, rural, and Tribal areas. The bill requires that all awarded funds be committed for use within four years, with unused amounts recaptured for future funding rounds, while limiting administrative expenses to no more than 5 percent of the total appropriation.
This bill requires the Secretary of Housing and Urban Development to conduct automated assessments of housing damage and economic recovery needs within 60 days of a major disaster declaration and every three months thereafter. Using existing federal data, the Secretary must identify specific shortages in affordable housing and infrastructure to determine how Community Development Block Grant Disaster Recovery funds can best address unmet needs. The results of this analysis must be reported to Congress to guide the allocation of disaster relief resources.
The Make the American Dream Real Again Act creates a new tax credit for homeowners who sell their primary residence to a first-time buyer. This provision allows the seller to claim a refundable credit equal to the lower of the money they spent helping the buyer purchase the home or the amount of tax they would save by excluding the sale gain from their income. The bill defines a first-time homebuyer as someone who has not owned a principal residence in the two years prior to the transaction and covers expenses such as down payments, inspections, and closing costs. These changes are scheduled to take effect for taxable years beginning after December 31, 2026.
This bill creates a new federal tax credit to encourage owners of manufactured home communities to sell their land to residents or nonprofit organizations that agree to keep the community affordable. The credit allows sellers to claim 75% of their profit from the sale, provided the buyer agrees to a binding 50-year covenant that the land will remain used for manufactured housing. To qualify, the new owner must be a resident-owned cooperative or a nonprofit corporation with democratic governance where residents elect the board of directors. The legislation aims to prevent community closures and protect low-income homeowners from rising rents by promoting long-term resident ownership. This change takes effect for taxable years beginning after December 31, 2026.
The Rental Housing Investment Act provides tax incentives to encourage the development of new long-term residential rental properties in the United States. It allows developers to take an accelerated depreciation deduction of up to $150,000 per unit for buildings containing at least two dwelling units, with an increased limit of $250,000 per unit for projects designated as affordable housing. To ensure these properties remain available for rent, the bill includes rules that require the buildings to be used for rental purposes for at least 10 years, or 15 years for affordable housing, before the tax benefits are recaptured. These changes apply to properties placed in service after a 12-month delay following the law's enactment.
The Manufactured Housing Community Sustainability Act of 2026 creates a new federal tax credit to encourage the sale of manufactured home communities to residents or nonprofit organizations. This bill directly affects current owners of manufactured home parks who wish to sell their land and the buyers who want to preserve these communities as affordable housing. Under the law, a seller can claim a tax credit equal to 75 percent of their profit if they sell the property to a qualified resident-owned cooperative or nonprofit that agrees to keep the community affordable for at least 50 years. To prevent abuse, the bill includes a penalty requiring the buyer to pay 20 percent of the sale proceeds if the community is later sold for profit or fails to maintain its affordable status. The provisions take effect for sales occurring after December 31, 2026, aiming to stabilize housing costs for low-income families living in these communities.
The Affordable Housing Credit Carryback Act allows developers of low-income housing projects to apply their tax credits to tax years up to five years prior to the current year. This change directly affects developers who may have incurred losses in earlier years and are unable to fully utilize the tax benefits generated by their projects. By amending the Internal Revenue Code, the bill enables these developers to carry back the low-income housing tax credit to offset taxes owed in those past years. This provision aims to improve the immediate financial viability of affordable housing developments without altering the total amount of tax credit available.
This bill expands Medicaid coverage to include services in assisted living facilities for individuals who currently require hospital or nursing home care, provided they meet state income and resource limits. It also modifies the Low-Income Housing Tax Credit to give priority funding to projects that help reduce long-term medical costs for the elderly by offering care in non-institutional settings. Both changes are scheduled to take effect on January 1, 2027, allowing states time to update their laws and plans to comply with the new requirements.