HR6390119th CongressWALLET

Make Housing Affordable and Defend Democracy Act

Sponsored By: Representative Gomez

Introduced

Summary

Permanently rescind $175.7 billion in unobligated immigration-enforcement funds and create a package of housing tax incentives aimed at boosting homebuying, starter-home construction, and conversions of buildings into affordable housing. The bill would pair large funding rescissions with three new tax credits that target first-time buyers, small housing developers, and conversions of commercial buildings into affordable units.

Show full summary
  • Families and first-time buyers: Establishes a nonrefundable First-Time Homebuyer Credit worth up to $25,000, doubled to $50,000 for first-generation buyers, with income phaseouts, an elective escrow advance, and five-year recapture rules.
  • Builders and state housing programs: Creates a Starter Home Construction Credit equal to 15% of qualified construction costs or 30% when units are sold to first-time buyers, with state and tribal allocation caps.
  • Affordable housing developers and low-income renters: Creates a 20% Affordable Housing Conversion Credit for converting older nonresidential buildings into rent-restricted units and ties the program into existing low-income housing credit rules with a $12.0 billion national cap.
  • Federal enforcement and border programs: Removes unobligated balances that had been earmarked for border infrastructure, detention capacity, agency hiring, and related activities, including large amounts such as $46.6 billion for border infrastructure and $45.0 billion for detention capacity.

*Permanently rescinds $175.7 billion in unobligated balances from Public Law 119-21.*

Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 2 costs, 0 mixed.

Up to $50K for first-time buyers

This bill would give first-time homebuyers a nonrefundable credit up to $25,000 for down payment and closing costs. First-generation buyers could get up to $50,000. The credit would phase down above $300,000 (joint), $225,000 (head of household), and $150,000 (single). In high-cost areas, it would add 3.5% of the gap between FHFA high-cost and standard loan limits. You must not have owned a home in the past 10 years, attach the settlement statement, keep it as your main home for 5 years, and you could elect advance payment into escrow.

Credit to convert buildings to housing

Developers would get a 20% credit for qualified costs to convert a commercial building into affordable housing. Projects must spend more than the greater of 50% of the building’s pre-conversion basis or $100,000 and reserve at least 20% of units for households at or below 80% of area median income for 30 years. The credit could be higher: 30% in certain tracts if at least 20% of units are at or below 60% of area median income, and an elective 35% on up to $2 million for qualifying rural historic projects. Credits would be allocated by states under a $12 billion national cap, with up to $3 billion for distressed areas. If a building fails the rules during the 30-year period, credits could be recaptured.

Tax break to build starter homes

Builders would get a federal credit equal to 15% of qualified construction costs for a starter home. The rate would be 30% if the unit is sold to a first-time homebuyer. The home must be 1,200 square feet or less and sell for no more than 80% of the area’s median home price. Credits would be limited by each state’s annual allocation of $30 per resident, with a separate tribal ceiling and inflation adjustments after 2025.

Housing credits reduce your tax basis

If enacted, claiming any of these housing credits would lower your property’s tax basis by the credit amount. That would mean less depreciation for businesses and could mean more taxable gain when you sell, subject to other tax rules.

Cuts immigration enforcement funds and fees

This bill would permanently take back about $175.66 billion in unused immigration enforcement and border security funds from a recent law. Cuts would include border wall and infrastructure ($46.55 billion), detention capacity ($45 billion), CBP personnel and bonuses (about $6.15 billion), and DHS border support ($10 billion). It would also repeal immigration fee authorities in sections 100001–100018 of that law. These changes would take effect upon enactment.

Sponsors & CoSponsors

Sponsor

Gomez

CA • D

Cosponsors

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 12/3/2025

  • Carter (LA)

    LA • D

    Sponsored 12/3/2025

  • Salinas

    OR • D

    Sponsored 12/3/2025

  • Garcia (CA)

    CA • D

    Sponsored 12/3/2025

  • Sherman

    CA • D

    Sponsored 12/3/2025

  • Thompson (CA)

    CA • D

    Sponsored 12/3/2025

  • Garcia (IL)

    IL • D

    Sponsored 12/3/2025

  • Goldman (NY)

    NY • D

    Sponsored 12/3/2025

  • Garcia (TX)

    TX • D

    Sponsored 12/3/2025

  • Cisneros

    CA • D

    Sponsored 12/3/2025

  • Ansari

    AZ • D

    Sponsored 12/3/2025

  • Ruiz

    CA • D

    Sponsored 12/3/2025

  • Rivas

    CA • D

    Sponsored 12/3/2025

  • Thanedar

    MI • D

    Sponsored 12/3/2025

  • Barragan

    CA • D

    Sponsored 12/3/2025

  • Davis (IL)

    IL • D

    Sponsored 12/3/2025

  • Sanchez

    CA • D

    Sponsored 12/3/2025

  • Carson

    IN • D

    Sponsored 12/3/2025

  • Vargas

    CA • D

    Sponsored 12/3/2025

  • Carbajal

    CA • D

    Sponsored 12/3/2025

  • Chu

    CA • D

    Sponsored 12/3/2025

  • Matsui

    CA • D

    Sponsored 12/3/2025

  • Lieu

    CA • D

    Sponsored 12/3/2025

  • Wasserman Schultz

    FL • D

    Sponsored 12/3/2025

  • Beatty

    OH • D

    Sponsored 12/3/2025

  • Jackson (IL)

    IL • D

    Sponsored 12/3/2025

  • Jacobs

    CA • D

    Sponsored 12/3/2025

  • Deluzio

    PA • D

    Sponsored 12/3/2025

  • Swalwell

    CA • D

    Sponsored 12/3/2025

  • Evans (PA)

    PA • D

    Sponsored 12/3/2025

  • Liccardo

    CA • D

    Sponsored 12/3/2025

  • Simon

    CA • D

    Sponsored 12/3/2025

  • Lee (PA)

    PA • D

    Sponsored 12/3/2025

  • McGovern

    MA • D

    Sponsored 12/3/2025

  • Ramirez

    IL • D

    Sponsored 12/3/2025

  • Dexter

    OR • D

    Sponsored 12/3/2025

  • Mullin

    CA • D

    Sponsored 12/3/2025

  • Leger Fernandez

    NM • D

    Sponsored 12/3/2025

  • McIver

    NJ • D

    Sponsored 12/3/2025

  • Menendez

    NJ • D

    Sponsored 12/3/2025

  • Krishnamoorthi

    IL • D

    Sponsored 12/3/2025

  • Cohen

    TN • D

    Sponsored 12/3/2025

  • Titus

    NV • D

    Sponsored 12/3/2025

  • Randall

    WA • D

    Sponsored 12/3/2025

  • Veasey

    TX • D

    Sponsored 12/3/2025

  • Peters

    CA • D

    Sponsored 12/3/2025

  • Johnson (GA)

    GA • D

    Sponsored 12/3/2025

  • Pocan

    WI • D

    Sponsored 12/3/2025

  • Nadler

    NY • D

    Sponsored 12/3/2025

  • Kelly (IL)

    IL • D

    Sponsored 12/3/2025

  • Boyle (PA)

    PA • D

    Sponsored 12/3/2025

  • Dean (PA)

    PA • D

    Sponsored 12/3/2025

  • Kamlager-Dove

    CA • D

    Sponsored 12/3/2025

  • Frost

    FL • D

    Sponsored 12/3/2025

  • Watson Coleman

    NJ • D

    Sponsored 12/3/2025

  • Brownley

    CA • D

    Sponsored 12/3/2025

  • Latimer

    NY • D

    Sponsored 12/3/2025

  • Soto

    FL • D

    Sponsored 12/3/2025

  • Balint

    VT • D

    Sponsored 12/3/2025

  • McClain Delaney

    MD • D

    Sponsored 12/3/2025

  • Schakowsky

    IL • D

    Sponsored 12/3/2025

  • Larson (CT)

    CT • D

    Sponsored 12/5/2025

  • Subramanyam

    VA • D

    Sponsored 1/12/2026

  • Tokuda

    HI • D

    Sponsored 1/13/2026

  • Jayapal

    WA • D

    Sponsored 1/13/2026

  • Stansbury

    NM • D

    Sponsored 1/13/2026

  • Del. Plaskett, Stacey E. [D-VI-At Large]

    VI • D

    Sponsored 1/14/2026

  • Omar

    MN • D

    Sponsored 1/16/2026

  • Garamendi

    CA • D

    Sponsored 1/16/2026

  • Wilson (FL)

    FL • D

    Sponsored 1/16/2026

  • Clarke (NY)

    NY • D

    Sponsored 1/21/2026

  • Foushee

    NC • D

    Sponsored 1/22/2026

  • Huffman

    CA • D

    Sponsored 2/3/2026

  • Lofgren

    CA • D

    Sponsored 2/3/2026

  • DeGette

    CO • D

    Sponsored 2/3/2026

  • Conaway

    NJ • D

    Sponsored 2/3/2026

  • Vindman

    VA • D

    Sponsored 2/20/2026

  • Pallone

    NJ • D

    Sponsored 2/20/2026

Roll Call Votes

No roll call votes available for this bill.

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