Clean Energy/Energy Efficiency Tax Incentives for Housing Providers

Attachment: The Treasury Dept. Housing team requested that NAHMA share the attached factsheet with members. This factsheet highlights some key tax incentives for residential real estate available to affordable housing providers.  Treasury Dept. staff will be speaking at next month’s conference to provide additional details. 


Government Funding Update

Congress has two weeks to prevent a government shutdown by passing a temporary funding bill, also called a continuing resolution (CR).  The House of Representatives, led by House Speaker Johnson (R-LA), is expected to vote on a government funding proposal that would keep the government operating until March 2025. This proposal is not expected to pass, as it does not have support from the Republican Majority. The Democrat Minority will also oppose the proposal, due to the funding limits it places on federal programs. NAHMA expects at some point Congress will pass a bipartisan CR that lasts until December. 


Presidential Candidates Positions on Housing

Housing is on the mind of voters and candidates.  On the campaign trail, respective campaign/political party websites, and in their recent debate, Vice President Kamala Harris and former President Donald Trump have discussed plans to address the national housing crisis. Here is synopsis of their respective proposals:   

  • HarrisProposal: Affordable Rent and Homeownership

Vice President Harris, the Democratic candidate, has emphasized a comprehensive approach to making both rent and homeownership more affordable. As highlighted on her campaign website, Harris pledges to build three million new affordable rental units and homes in her first term. Her proposal includes cutting bureaucratic red tape to speed up construction and penalizing corporations that hoard housing to inflate prices. Harris has also promised to provide first-time homebuyers with up to $25,000 in down payment assistance, with special support for first-generation homeowners. Harris’s focus is on expanding affordable housing options, controlling rising rents, and creating pathways to homeownership, particularly for middle-class families and underrepresented groups. 

  • Trumps Proposal: Bringing Back Affordable Housing

Former President Trump, the Republican candidate, has a different approach focused on economic growth and deregulation. Trump’s plan aims to reduce mortgage rates by cutting inflation and opening limited federal lands for new home construction. The Republican platform also includes promoting homeownership through tax incentives and slashing regulations that increase construction costs. Additionally, Trump’s immigration policy proposes ending “luxury housing” for undocumented immigrants to support homeless veterans.


Senator Scott Introduces Housing Legislation

In other news, Senator Tim Scott (R-SC) recently introduced the ROAD to Housing Act, a comprehensive bill aimed at reforming the U.S. housing market and addressing affordable housing shortages across the nation. Supported by several Senate Republicans, the legislation seeks to overhaul federal housing policies that Sen. Scott claims have failed to deliver meaningful results for renters, homeowners, and the homeless. Key Pillars of the ROAD to Housing Act include:

  1. Safety and Soundness: the need for stronger congressional oversight of federal housing programs.
  2. Encouraging Competition and Innovation: promoting local solutions to housing problems by encouraging private sector innovation to meet the diverse housing needs of communities, from rural areas to urban centers.
  3. Providing Housing Opportunity and Combating Homelessness: reducing homelessness by incentivizing housing providers and communities that actively decrease homelessness rates and improve access to self-sufficiency for struggling families.
  4. Reducing Regulatory Burdens and Accountability: streamline regulatory processes that often hinder the creation of new affordable housing.

Below is a sectional breakdown of the ROAD to Housing Act key housing provisions that are relevant to NAHMA members:

Sec. 101. Reforms to housing counseling and financial literacy programs
This section requires HUD to distribute housing counseling assistance in a geographically diverse manner, prioritizing organizations in areas with high foreclosure rates. It also establishes an ongoing review process for housing counselors working with FHA-insured borrowers, allowing HUD to retest or suspend underperforming counselors. Counseling services will be available for delinquent borrowers under FHA, USDA, or VA programs, with the cost of FHA borrower counseling covered by the FHA insurance fund.

Sec. 201. Rental assistance demonstration (RAD) program – This section removes the cap on public housing units that can be converted under the Rental Assistance Demonstration (RAD) program, allowing private investment in public housing.
Sec. 301. Authorization of Moving to Work (MTW) Program – This section fully authorizes the Moving to Work (MTW) Program, requiring HUD to evaluate housing reforms from MTW participants and identify replicable models that improve efficiency and outcomes for families.
Sec. 302. Promoting self-sufficiency – HUD is tasked with studying the impact of work requirements for HUD-assisted residents under the MTW Program, ensuring no low-income families are negatively impacted.

Sec. 401. Homelessness reforms – This section allows HUD to set aside 10% of Continuum of Care and Emergency Solutions Grants Program funds for grantees that measurably improve outcomes for homeless individuals.

Sec. 501. Opportunity Zone priority – HUD will prioritize competitive grants for housing construction or preservation in communities designated as Opportunity Zones.

While unlikely to pass this Congress, this legislation introduces sweeping reforms aimed at improving access to housing, enhancing financial literacy, and reducing homelessness, all while increasing transparency and accountability in federal housing programs.