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CRE Industry Groups Applaud Bipartisan Bill to Incentivize Residential Conversion
Industry associations applauded the introduction of the bipartisan Revitalizing Downtowns and Main Streets Act (H.R. 9002), which would create a tax credit to facilitate conversion of many underutilized or vacant commercial properties to residential use. The bill is sponsored by U.S. Representatives Mike Carey (R-OH) and Jimmy Gomez (D-CA), both members of the House Ways and Means Committee.
“This legislation will spur the conversion of vacant spaces that can stimulate local economies and begin to address the housing crisis in communities across the U.S.,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “This important bill allows Congress to begin rectifying many of the ripple effects of the COVID-19 pandemic that are still affecting the lives of Americans and impacting local tax revenues.”
At the Real Estate Roundtable, president and CEO Jeffrey DeBoer said, “The Revitalizing Downtowns and Main Streets Act is a proactive, market-based policy measure that aims to breathe new life into underutilized commercial properties, create jobs, generate local property tax revenue and help reinvigorate our nation’s cities and suburbs. We commend the leadership of the bill sponsors for their vision and urge support for this critical bipartisan legislation.”
The proposed legislation includes the following provisions:
- 20% tax credit for expenses incurred during the conversion of an eligible underutilized or vacant commercial property that is older than 20 years and is capable of being repurposed for residential use.
- Affordable housing for those with incomes at or below 80% of the area median income designated for 20% of converted residential units.
- Additional incentives for rural and economically distressed areas to ensure that all communities can benefit from the legislation.
- The ability to combine existing historic tax credits and other incentives offered by municipalities and states.
- ◦Financing
- ◦Policy/Gov't
