Revitalizing America’s Housing Act
Sponsored By: Representative Lawler, Michael [R-NY-17]
In Committee
Summary
Expand affordable housing supply through targeted tax incentives and program changes. This bill would pair new and expanded tax tools with program rules and health and oversight requirements to push more housing development and protect residents.
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 8 benefits, 0 costs, 2 mixed.
Bigger home-sale tax exclusion
If enacted, the tax exclusion for selling your main home would rise to $500,000 for most filers. For married couples filing jointly it would be $1,000,000. For tax years after 2024 those amounts would be adjusted for inflation and rounded down to the nearest $100. The change would apply to sales after enactment.
Neighborhood Homes tax credit
If enacted, the bill would create a Neighborhood Homes tax credit for developers who build or rehab owner‑occupied homes sold at affordable prices. The credit equals the smallest of three tests, including up to 35% of eligible development costs or 28% of the national median new‑home price, with a possible 120% feasibility adjustment. Buyers must occupy the home and have family income at or below 140% of area median income. Credits are allocated by State agencies, have a 5‑year compliance window, and sales within five years may trigger partial repayment that declines each year.
Mold and lead protections
If enacted, a federal research team would study indoor residential mold and report within three years. HUD must build a public mold map within one year using two years of inspection data and update it annually. EPA, HUD, and partners must start a public mold education campaign within one year. HUD must also do yearly lead risk assessments for Section 8 housing, prioritize properties with children under six for remediation, and count lead hazards as a serious inspection failure.
Housing help for first responders
If enacted, verified volunteer first responders could deduct $18,000 from income when USDA determines eligibility for single‑family housing. Volunteer first responders who provide HUD verification would be treated like firefighters for discounted HUD home sales. The Good Neighbor program would open to members of the Armed Forces, firefighters, and law enforcement officers even if properties are not in revitalization areas. Public housing families with a qualifying full‑time police officer, firefighter, or EMT would pay the larger of 15% of monthly adjusted income or 5% of monthly income. States and local governments would be required to exclude VA service‑connected disability pay from low/moderate income tests for certain housing programs. Starting in FY2026 certain VA housing amounts would appear as a separate VA budget line.
Small-dollar mortgages and counseling
If enacted, the bill would define a "small dollar mortgage" as a home loan of $70,000 or less and target rules to those loans. The CFPB would have 270 days to allow salaried loan originators for lenders making only those loans and 180 days to change points‑and‑fees limits to encourage more small‑loan lending. The bill would require prepurchase counseling for buyers using covered federal mortgage loans and foreclosure mitigation counseling for borrowers 30+ days delinquent. HUD would require certified housing counselors and set aside 40% of counseling funds for rental and pre‑foreclosure help. The bill would also set a consumer‑report test for first‑time homebuyer status.
Land-use plans for HUD grants
If enacted, recipients of certain HUD grants would need to have filed a land‑use plan within the last five years showing zoning or permitting steps to reduce barriers to affordable housing. The rule starts one year after enactment and filing would not bind how grant money is spent. State and local governments could petition federal agencies to use unused federal property for affordable housing; agencies must decide within 60 days and GSA may donate property found to be excess. HUD would recapture tenant‑based voucher funds not obligated by year‑end and give them to agencies that used all their voucher money. The Moving to Work demonstration would become permanent and expand to many PHAs. HUD may use up to 10% of CoC/ESG funds for performance bonuses.
More HUD oversight and reports
If enacted, HUD leaders and program heads would testify to Congress each year and HUD would add new public reporting on regulatory barriers. The FHA must send monthly capital‑ratio reports to Congress and notify Congress if the fund falls below required levels. The Comptroller General would deliver multiple housing studies and counts, including reports on middle‑income affordability, sustainable homeownership, elderly and disabled housing, treatment of VA disability, and homes near Superfund sites on 6‑ to 180‑day deadlines. The HUD Inspector General must investigate NYCHA and report within 180 days. HUD must also study inspection backlogs and staffing within one year.
Opportunity Zone ordinary income rule
If enacted, some ordinary income (not just capital gains) could be treated like capital gains for Opportunity Fund investments made after enactment. That would let more types of income qualify for the deferral and inclusion mechanics used by qualified opportunity funds. The change mainly matters to investors deciding whether to move ordinary income into these funds.
Manufactured housing and energy rules
If enacted, the statutory definition of manufactured housing would drop the phrase "built on a permanent chassis," and HUD must recommend new construction and safety standards within 90 days. The Energy Department would be barred from setting energy conservation standards for manufactured homes. The bill also prevents finalizing certain new transformer efficiency rules above trial standard level 2 and delays some transformer rules for ten years.
CDBG limits where squatting allowed
If enacted, jurisdictions that permit "squatting" (living on property without permission for 14+ days and not paying rent) could be barred from receiving Community Development Block Grant money. HUD must publish a yearly list of barred jurisdictions and provide corrective actions. Federal mortgage support for 1‑ to 4‑family loans in barred areas would be blocked. Agencies must issue joint implementing guidelines within 90 days.
Sponsors & CoSponsors
Sponsor
Lawler, Michael [R-NY-17]
NY • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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