Feenstra Helps Introduce Legislation to Construct More Affordable Housing in Rural Communities and Keep Families in Rural America

WASHINGTON, D.C. – RealEstateRama – Last month, U.S. Rep. Randy Feenstra (R-Hull) helped introduce – alongside Rep. Mike Kelly (R-PA) – the Neighborhood Homes Investment Act, which will mobilize private investment in rural communities to construct new, affordable homes and revitalize existing homes to attract and keep families and businesses in rural America. This legislation would support the construction or rehabilitation of 500,000 homes for middle- and low-income families.

“Between labor shortages and record inflation to depressed inventory and budgetary restrictions, the cost of building a home has skyrocketed and the price tag of buying a home is out of reach for too many Americans – especially young families in rural communities. This is a serious problem that requires thoughtful solutions to ensure that families who want to buy a home in rural areas can do so,” said Rep. Feenstra. “To keep our families and businesses in rural Iowa, we need to incentivize the construction of new homes and the rehabilitation of older structures, which in turn promotes population growth, generates economic development, and supports our thriving main streets. I’m glad to work with my colleagues on the House Ways and Means Committee to introduce the Neighborhood Homes Investment Act to lower the cost of building new homes, support housing revitalization, and make the dream of homeownership attainable and affordable for our families in rural America.”

More specifically, the Neighborhood Homes Investment Act establishes a federal tax credit that developers can claim to construct new housing or substantially rehabilitate existing homes in rural communities. This tax credit seeks to close the “value gap” – which occurs when the cost to build a home exceeds the price at which it is expected to sell – by covering up to 35% of development expenses for new construction.

The Neighborhood Homes Coalition estimates that this legislation would spur $125 billion in total construction and development activity, support 861,000 jobs in construction and adjacent industries, generate $56 billion in wages, and produce $26 billion in federal and $12 billion in state and local tax revenues.

You can find legislative text HERE.

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