WASHINGTON — U.S. Sen. Mark R. Warner (D-VA) has introduced two new pieces of bipartisan legislation to encourage new development, expand supply, and make housing more affordable for Virginians.
“In communities across the Commonwealth, both rural and urban, too many families are struggling to find safe, affordable housing,” Sen. Warner said. “This crisis needs an all-hands-on-deck solution, and that’s why I am proud to continue to look for innovative solutions to help tackle this problem. These bipartisan bills offer commonsense solutions to help boost our housing supply by both protecting our current stock and supporting new investment.”
The Neighborhood Homes Investment Act, introduced with Sen. Todd Young (R-IN), would create a new tax incentive to build and preserve more than 500,000 affordable, single-family homes for homeownership over ten years in under-resourced communities. The tax credit will cover the cost between building or renovating a home in these areas and the price at which they can be sold. The credits would only be available after the homes have been completed and sold to a homeowner – ensuring the investors, not the government, bear the risk. Full text of the Neighborhood Homes Investment Act is available here.
The Preserving Rural Housing Investments Act, introduced with Sen. Jerry Moran (R-KS), will support more investment in rural and low-income housing by clarifying the tax-exempt controlled entity rules to ensure that Government Sponsored Enterprises (GSEs), such as Fannie Mae and Freddie Mac, are able to participate in partnerships that are crucial for low-income housing investments. Full text of the Preserving Rural Housing Investments Act is available here.
These bills are just the latest in Sen. Warner’s longstanding efforts to expand access to homeownership and make housing more affordable for Virginians. Since January, he has introduced multiple bills to amend the federal tax code to encourage new housing construction and rehabilitation, including the Affordable Housing Credit Improvement Act, New Markets Tax Credit Extension Act, the Rural Historic Tax Credit Improvement Act, and the Historic Tax Credit Growth and Opportunity Act – all bipartisan bills to encourage redevelopment and new construction in communities across the country. He is also the lead author of the Low-Income First Time Homebuyers (LIFT) Act to help qualified, first-generation homebuyers build equity in their homes by offering a 20-year mortgage for roughly the same monthly payment as a traditional 30-year loan. Warner has also joined his colleagues in sponsoring the Downpayment Toward Equity Act, which would provide federal grants to assist first-generation homebuyers with qualifying expenses toward purchasing their first home, including down payment costs, closing costs, and costs to reduce the rates of interest.
