Affordable housing Development incentive for private sector

Economy
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1

Affordable housing Development incentive for private sector Bill (2024)**

This Act shall be known as the Affordable Housing Development Incentive Act of 2024.

Section 2: Purpose
The purpose of this Act is to facilitate the development of affordable housing units through private sector engagement, using tax incentives and government-owned land to reduce construction costs and promote sustainable, low-cost housing options for low- and moderate-income families.

Section 3: Definitions

  • Affordable Housing: Housing units where the rent or mortgage does not exceed 30% of a household’s annual income, targeting individuals and families earning 80% or below the median area income (AMI).
  • Private Sector Developer: Any for-profit or non-profit entity engaged in the construction and development of residential housing.
  • Government-Owned Land: Any land or property owned by a government entity and designated for housing development.

Section 4: Tax Incentives for Developers
To incentivize private developers to build affordable housing, the government shall offer the following tax cuts:
(a) **Property Tax Reduction & Exoneration **: Developers constructing affordable housing projects shall receive property taxes exoneration for the first 5 years of operation, then a 50% reduction for the next 20 years.
(b) Tax Credits: Developers may claim a tax credit equal to 35% of eligible construction costs for affordable housing projects.
(c) Tax Exemption on Income: The rental income from affordable housing units shall be exempt from state income tax for the first 10 years of operation.

Section 5: Provision of Government-Owned Land
(a) The government shall identify and designate underutilized or surplus land for affordable housing development, across inner cities in the 50 states
(b) Eligible private developers shall be offered the option to develop the land for free (if government wishes to keep ownership) or purchase this land at a discounted price, not to exceed 25% of its market value, provided the land is used exclusively for the construction of affordable housing units.
(c) Right shall be given to developers who commit to building exclusively affordable housing units(section8 )within the development project.
(d) government entities attached to the land shall provide utilities connection to the land if none existent. Builder will cover the cost of the utilities connection from the street to the unites

Section 6: Affordability Commitment
Developers benefiting from tax incentives and government-owned land shall commit to maintaining affordability for a minimum of 30 years, ensuring that at least 70% of the total units within the project remain affordable to households earning 80% or less of the area median income.

Section 7: Reporting and Oversight
(a) Developers receiving benefits under this Act must submit an annual report to the appropriate government agency detailing the number of affordable units built, occupancy rates, and compliance with affordability requirements.
(b) The government shall establish a monitoring board to ensure that developers adhere to the terms of the affordability commitments.

Section 8: Effective Date
This Act shall take effect immediately upon passage.

2

I live in a Tax Credit Senior Housing Apartment. I had a neighbor that was wheelchair bound ,he live on the third floor which was not very good for him. The same development company built some ground floor units in the same town. My neighbor wanted to move there but was told he did not qualify for a unit there. He had qualified for one building but not qualify for another building, due to a different set of qualifiers. both/all those qualifiers should be the same regardless of how the developer was funded or the tax credits were implimented.

3

There needs to be some oversight as these complex’s fall into disrepair and become unsanitary and bug ridden. In order to receive the tax credit these owners need to be held accountable and upkeep these properties ! They must be kept clean and bug ridden in like new condition or NO tax credit given!
These complex’s especially for seniors need to be built in nice and safe neighborhoods instead of the worst cheapest neighborhoods riddled with crime.
They also need rents capped at 3% per year as they are supposed to be for low income.

4

I would suggest that incentives also be offered to private landlords of existing properties. Although this would not result in new development, it could increase the amount of existing affordable units in the market. These are also more likely to be “scattered sites”, so that rentals are in regular neighborhoods rather than large affordable housing complexes. Many people cite problems to surrounding communities with this model of development, so it would be nice to see a move away from the large complexes.

5

totally agree. they will need to follow guidelines like clean, free or pest, utilities up to code etc.

6

yes! great idea. please vote for it to help me get views