INCREASE Housing Affordability Act
Sponsored By: Representative Sherrill
Introduced
Summary
A new federal tax credit would target underused office buildings by encouraging their conversion into homes. The bill pairs a 15% commercial-to-residential tax credit with bonus lifts for rent-restricted affordable units and for projects that pay prevailing construction wages, and it would create a HUD advisory board to help speed conversions and remove local barriers.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Tax credit for office to housing conversions
This bill would create a federal tax credit to help convert older office buildings into homes. You could claim 15% of qualified conversion costs, up to $200,000 per new housing unit and $10,000,000 per building. If at least 25% of units are rent‑restricted and income‑qualified (at or below 100%, 80%, or 60% of area median income), the credit and these caps would rise by 10%, 15%, or 20%. If you pay Davis‑Bacon prevailing wages, they would rise by another 15%. To qualify, the building must have been used for offices, first placed in service at least 15 years earlier, and be substantially converted to homes or housing‑plus‑retail. Only certain capital costs would count; buying the building, enlarging it, tax‑exempt use portions, and some short‑term lessee costs would not. You would usually claim the credit when the building is placed in service, but for projects lasting two years or more you could elect to count costs as you build. Costs cannot also earn the low‑income housing or historic rehab credits, and standard basis and recapture rules would apply if you dispose of the property early. This would apply to costs incurred after enactment.
HUD help for local housing conversions
This bill would direct HUD to set up an advisory board within one year to help states and cities convert offices to housing. The board would offer training on floor plans, feasibility, permitting, zoning fixes, and funding sources. It would authorize $5 million each year for 2025 through 2029 to support this work.
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Sponsors & CoSponsors
Sponsor
Sherrill
NJ • D
Cosponsors
Rep. Garcia, Robert [D-CA-42]
CA • D
Sponsored 4/7/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 10/8/2025
Roll Call Votes
No roll call votes available for this bill.
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