Make Housing Affordable Act

Summary#

This bill would rescind specified unobligated funds previously provided for immigration enforcement and border operations and would add several new tax credits and programs to expand access to housing. The bill text lists a total rescission of $175,660,630,000 across many items (for example, border infrastructure and wall system, detention capacity, DHS border support, ICE hiring and training, CBP personnel and facilities, Bureau of Prisons, and other items). It repeals a set of immigration fee provisions (sections 100001–100018 of the cited Act).

On housing and taxes, the bill would amend the Internal Revenue Code to create or change several credits and programs, including:

• A first-time homebuyer credit: up to $25,000 of qualified home purchase expenses, with a $50,000 amount for certain "first-generation" homebuyers; income-based phaseouts; rules for advance payment to qualifying escrow accounts; recapture if the home is not kept as a primary residence for up to 5 years; and inflation adjustments. Effective for residences purchased in taxable years beginning after enactment.
• A starter home construction credit: a credit equal to 15% of qualified home construction costs (30% when sold to a first-time homebuyer), limited by allocations to State housing agencies. State ceilings are set at $30 multiplied by the State population. Effective for taxable years beginning after enactment.
• An affordable housing conversion credit: an investment credit equal to 20% of qualified conversion expenditures for converting eligible commercial buildings to affordable housing (30% in certain areas), with a national qualified conversion credit limitation of $12,000,000,000 and a $3,000,000,000 designation for certain economically distressed areas; allocation and monitoring rules for State housing agencies. Effective for buildings placed in service after enactment.
• A targeted boost to the Low-Income Housing Tax Credit (LIHTC) for units reserved for extremely low-income households, increasing eligible basis for that portion of a project to 150%.
• A renter tax credit: a refundable credit for renters who pay rent exceeding 30% of adjusted gross income, with an applicable percentage that phases down as income rises (100% at AGI up to $25,000; 0% over $100,000). Rent considered is capped at 100% of the applicable small area fair market rent. The bill also creates a program for monthly advance payments of the renter credit and appropriates $50,000,000 for IRS outreach and related enrollment support. Effective for taxable years beginning after December 31, 2023 (for the renter credit provisions).

What it means for you#

• If you are a first-time homebuyer who meets the rules, you could claim a tax credit up to the stated limits ($25,000 or $50,000 for qualifying first-generation buyers) to cover down payment and closing costs. The credit has income phaseouts and other eligibility rules.
• Builders and developers of small "starter" homes and entities converting commercial buildings into affordable housing could claim new tax credits if they meet size, price, and allocation rules set by State housing agencies.
• Renters who pay rent that is more than 30% of their adjusted gross income may be eligible for a renter tax credit. Eligible renters may also apply to receive monthly advance payments of that credit.
• Indian Tribal Governments and housing agencies are given allocation rules and minimums to use credits for tribal and state projects.
• The bill rescinds large, specified unobligated appropriations that had been set aside for a range of border and immigration enforcement activities. The bill text does not describe operational consequences of those rescissions.

Expenses#

• Total rescissions specified in the bill: $175,660,630,000 (itemized in the bill text across multiple accounts and programs).
• Examples of rescinded amounts named in the bill text include:
  • Border infrastructure and wall system: $46,550,000,000
  • Detention capacity: $45,000,000,000
  • U.S. Immigration and Customs Enforcement hiring and training: $29,850,000,000
  • Department of Homeland Security border support: $10,000,000,000
  • State Border Security Reinforcement Fund: $10,000,000,000
  • Department of Defense border support and counter-drug missions: $1,000,000,000
  • Bureau of Prisons: $5,000,000,000
  • Other specified rescissions for CBP personnel, vehicles, facilities, DOJ, reimbursement fund, Operation Stonegarden, and training centers are listed in the bill text.
• Housing credit program limits and ceilings included in the bill text: national qualified conversion credit limitation of $12,000,000,000; up to $3,000,000,000 for certain economically distressed area designations; State starter home credit ceilings equal to $30 multiplied by State population; aggregate Indian starter home ceiling rules including a floor of $30,000,000.
• Appropriation for IRS outreach and enrollment support for the renter credit: $50,000,000, available for 5 years as described.
• The bill text does not provide a single overall net budget estimate or total cost for the new credits or for long-term fiscal effects. No publicly available information on total budgetary impact is provided in the bill text.

Proponents' View#

The bill text states its purpose is "to rescind certain immigration enforcement funds and amend the Internal Revenue Code to provide for new credits related to expanding access to housing." Sponsors listed in the bill metadata introduced it in the House. The text focuses on creating tax incentives and programs intended to expand homebuying, starter home construction, conversions to affordable housing, targeted LIHTC increases, and renter relief.

Opponents' View#

No publicly available information.