INCREASE Housing Affordability Act

The INCREASE Housing Affordability Act would amend the tax code to provide tax credits for businesses and developers who convert underutilized commercial buildings into residential housing units. This would incentivize property owners to repurpose vacant or underused office buildings, retail spaces, and other commercial properties into apartments and homes, helping address housing shortages in communities across the country.

The bill includes bonus tax credits for conversions that include affordable units. Buildings that dedicate at least 25 percent of their residential units as affordable housing for people earning up to 100 percent of the area median income would receive a 10 percent credit increase, while those serving people earning up to 80 percent of area median income would receive a 15 percent increase. These bonuses would encourage developers to prioritize affordability in their conversion projects.

The legislation would also establish a federal advisory board within the Department of Housing and Urban Development to provide technical assistance and support to state and local housing agencies. This board would help identify which commercial buildings are good candidates for conversion, provide best practices and training, and support the planning and execution of conversion projects. The bill has passed the House and now moves to the Senate for consideration.