Senate Plan Aims to Revitalize Beaten-Down Communities

A bipartisan group of U.S. lawmakers is reviving efforts to spur the renovation of single-family homes in blighted neighborhoods by introducing a new tax credit for developers. Up to 500,000 homes could be created in the next decade.

March 7, 2023 . 10:18 PM

1 min read

A bipartisan group of U.S. lawmakers is reviving efforts to spur the renovation of single-family homes in blighted neighborhoods.
Legislation introduced in the Senate aims to create a new tax credit to cover a developer’s costs when the renovation of a crumbling building exceeds a home’s potential selling price.
The bill envisions fueling the creation of 500,000 new homes in blighted neighborhoods or rural areas by offering about $2 billion a year in tax credits over the next decade.
Credits would be available to developers after they sell renovated or newly built homes in neighborhoods with high poverty rates, low median family incomes and low home values.
Home sale prices would be limited to a maximum of four times the area’s median annual income, among other restrictions, to ensure the properties remain affordable.