Neighborhood Homes Investment Act and Moving Forward Infrastructure Legislation

WISCONSIN HOUSING AND ECONOMIC DEVELOPMENT AUTHORITY PARTICIPANTS

• Joaquín Altoro, WHEDA CEO
• Kim Plache, WHEDA Deputy Executive Director
• Sherry Gerondale, WHEDA CFO

PRIORITY 1:

Recognize the critical role of housing and other infrastructure in driving equity and economic opportunity in our communities.

CONGRESSIONAL ASK:

• Cosponsor or support the Neighborhood Homes Investment Act and include these provisions in Moving Forward Act or other infrastructure legislation.

BACKGROUND:

Along with roads, bridges, water and power, housing is part of our critical infrastructure – protecting public health, underpinning our economy and factoring into environmental sustainability. As with other types of infrastructure, access to affordable housing also drives social equity and economic opportunity.

Building on bipartisan momentum in the 116th Congress, U.S. Senators Ben Cardin (D-Md.) and Rob Portman (R-Ohio) have introduced the Neighborhood Homes Investment Act (S. 98) in the 117th Congress to revitalize housing in distressed neighborhoods nationwide. The proposal would create a federal tax credit that covers the cost between building or renovating a home and the price at which the home can be sold. The proposal would help new and existing homeowners in distressed neighborhoods while addressing historic patterns of disinvestment in underserved communities.i

The bill’s sponsors estimate the proposal could lead to the revitalization of 500,000 homes and create $100 billion in development revenue over the next 10 years. During the previous Congressional session, the Neighborhood Homes Investment Act was included in the Moving Forward Infrastructure Act.ii WHEDA and the National Council of State Housing Agencies view integration of the Neighborhood Homes Investment Act into a new infrastructure bill as the most likely path for success.

Housing and other forms of infrastructure are inextricably linked to the vitality of our communities and WHEDA urges consideration of this combined legislative approach in the weeks ahead. Among key provisions to include in any combined or stand-alone legislation:

• Establishment of a single-family housing tax credit to stimulate production of single-family affordable homes in distressed areas.
• An increase in the amount of housing credit and private activity bond authority provided to states annually.
• The allowance of development costs such as construction, substantial rehabilitation, demolition and environmental remediation for single-family tax credit projects.
• The administration of any credits by the state housing finance agency.

Congressional Visits: 03/23-26/21

ⁱ Cardin, Portman Reintroduce Tax Credit to Encourage Revitalization of Distressed Homes. News release. Jan. 28, 2021. https://www.cardin.senate.gov/newsroom/press/release/cardin-portman-reintroduce-tax-credit-to-encourage-revitalization-of-distressed-homes

ⁱⁱ Higgins outlines details of major infrastructure bill, highlights components significant to WNY. News release. June 24, 2020. https://www.wnypapers.com/news/article/current/2020/06/24/142093/higgins-outlines-details-of-major-infrastructure-bill-highlights-components-significant-to-wny