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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