A coalition of nonprofits, industry trade groups, and state housing agencies is calling on Congress to pass a federal tax credit that would support the creation of 500,000 starter homes in low-income areas.
In a letter (pdf) to U.S. House and Senate leaders dated Nov. 28, the nonprofit Neighborhood Homes Coalition urged lawmakers to pass the Neighborhood Homes Investment Act by the end of the year, arguing that a shortage of affordable starter homes is helping fuel inflation and rising housing costs.
Introduced in the House and Senate last year, the bill creates a tax credit that would fund part of the development costs to build or rehabilitate half a million homes over the next decade. The program would focus on developing modestly priced, single-family homes in struggling neighborhoods with high poverty rates and dilapidated housing….