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The Neighborhood Homes Investment Act establishes a federal tax credit for developers and builders who construct or substantially rehabilitate affordable homes in distressed communities and sell them to qualified low-income homebuyers. The credit is designed to close the financing gap between development costs and affordable sale prices in low-income census tracts, rural areas, and disaster zones. A neighborhood homes credit agency would allocate credits to qualified projects, set standards for affordability and development costs, and certify eligible sales. The credit amount is limited to the lesser of the value gap, 40 percent of eligible development costs, or 32 percent of the national median home sale price.
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