Feenstra Helps Introduce Legislation to Build Affordable Homes

HULL, IOWA – Earlier this month, U.S. Rep. Randy Feenstra (R-Hull) helped introduce – alongside Rep. Mike Kelly (R-PA) – the Neighborhood Homes Investment Act, which would mobilize private investment to construct new, affordable homes and revitalize existing homes to attract and keep families and businesses in Iowa. 

This legislation would support the construction or rehabilitation of roughly 500,000 homes for middle- and low-income families.

“Affordable housing is crucial to growing communities, attracting business investment, and keeping young families rooted in Iowa. However, certain barriers, often out of the control of local governments and contractors, cause housing shortages that hinder economic growth and community development,” said Rep. Feenstra. “Serving on the House Ways and Means Committee, I’m glad to help lead legislation to expand the housing supply, including in rural communities, to bring down costs and make the dream of homeownership attainable for more families. By ensuring that our tax code supports homebuilding, we can help families flourish, encourage our businesses to expand, and keep our communities strong.”

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. 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.

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