Reps. Schiff, Peters Introduce Bill to Tackle Affordable Housing Shortage
Washington, DC —Today, Rep. Adam Schiff (D-Calif.), joined by Rep. Scott Peters (D-Calif.), introduced the Affordable and Homeless Housing Incentives Act to help tackle the affordable housing shortage in California and across the nation. The bill would offer a tax incentive to those who sell their property to nonprofits or public agencies for the purpose of creating affordable housing. According to a 2021 National Association of Realtors (NAR) report, there's been a shortage of over 5.5 million homes in the past 20 years.
“Too many families are forced to make impossible financial sacrifices just to keep a roof over their heads. It's critical that we address California’s – and our nation's – need for affordable housing,” said Rep. Schiff. “This legislation provides a meaningful tax incentive to property owners who sell to non-profits and public housing agencies, directly boosting the creation of affordable homes. Every American deserves access to a home they can afford.”
“In San Diego and across the country, far too many people struggle to put a roof over their heads. Our bill takes a commonsense approach to increasing the supply of affordable housing and supporting the countless nonprofits and government entities that operate these properties,” said Rep. Peters.“This is a win for sellers who will receive favorable tax treatment and for affordable housing operators who will become more competitive in acquiring new property.”
“The Affordable and Homeless Housing Incentives Act, by creating new tax incentives for property owners to sell to public agencies and nonprofit housing developers, provides a new tool that will enable communities across the country more effectively address the challenges of developing affordable housing and homeless shelters. I applaud Congressman Schiff for sponsoring this innovative legislative initiative and wholeheartedly endorse its enactment,” said Burbank Mayor Konstantine Anthony.
“The City of Glendale fully supports the Affordable and Homeless Housing Incentives Act as it can help make the difference in developing affordable housing by tipping the scales in favor of cities and developers when competing to find and acquire land. By incentivizing that transaction, more affordable projects can be built, and more members of our unhoused can call these projects home,” said Glendale Mayor Dan Brotman.
“The introduction of the Affordable and Homeless Housing Incentives Act comes at a pivotal time when the need for affordable housing has never been more urgent. It promises a brighter future for countless families striving for affordable housing security. We thank Rep. Schiff for his leadership and for taking the lead on introducing this much-needed legislation,” said Stephanie Klasky-Gamer, CEO of LA Family Housing.
“The Affordable and Homeless Housing Incentives Act is an innovative and important new tool that we desperately need in California to address homelessness at a time when we are struggling with lack of access to suitable properties. Offering these tax incentives is also a great way to encourage a new form of private-public partnership that would bring new resources and political support to addressing our state’s most pressing need – to provide more affordable homes for the homeless and very low income,” said California Housing Partnership CEO Matt Schwartz.
The Affordable and Homeless Housing Incentives Act would allow property owners to waive capital gains tax liability when they sell to qualified agencies and use the money to buy another property within three years. This bill applies the existing IRS 1033 exchange framework to property sold to affordable housing operators— the same tax treatment for seized or condemned property. In exchange, the buyer must use the property for affordable housing or a qualified shelter for at least 30 years. Eligible agencies include local governments, housing authorities, and nonprofits that have previously received Department of Housing and Urban Development (HUD) funding or have a history of being a beneficiary. Sales under this act will be overseen by HUD's Enforcement Center.
The bill is endorsed by the California State Association of Counties (CSAC), California Housing Partnership, City of Burbank, City of Glendale and Glendale Housing Authority, Council of Large Public Housing Authorities (CLPHA), and LA Family Housing.
You can find the full bill text here.