Sioux City Times

Earlier this month, U.S. Representative Randy Feenstra of Iowa collaborated with Representative Mike Kelly of Pennsylvania to introduce the Neighborhood Homes Investment Act. The proposed legislation aims to incentivize private investment in the construction of affordable homes and the rehabilitation of existing ones, aiming to attract and retain families and businesses in Iowa.

The act is expected to support the creation or improvement of around 500,000 homes targeting middle- and low-income families. Rep. Feenstra highlighted the importance of affordable housing, stating, "Affordable housing is crucial to growing communities, attracting business investment, and keeping young families rooted in Iowa."

Feenstra, who serves on the House Ways and Means Committee, noted the challenges posed by existing barriers to housing. He expressed his support for legislation that could help address shortages and promote economic growth. "By ensuring that our tax code supports homebuilding, we can help families flourish, encourage our businesses to expand, and keep our communities strong," he remarked.

The Neighborhood Homes Investment Act proposes a federal tax credit for developers. This incentive aims to address the typical "value gap" where the cost of building a home is higher than its market price. The credit could cover up to 35% of development expenses, potentially making new construction more viable.