October 10, 2024

Wyden Joins Legislation to Build and Renovate Homes for Working Families

Washington, D.C. – U.S. Senator Ron Wyden said today he is cosponsoring legislation that would provide tax credits to generate incentives for new investments and additional resources for single-family home construction and renovations for working families in Oregon and nationwide.

Senator Martin Heinrich, D-N.M., who led the New Homes Tax Credit Act, released a report on housing supply in America, which found that underbuilding, restrictive zoning policies, and home financing hurdles have caused the supply of starter homes to shrink and prices to rise. High interest rates and mangled supply chains have also contributed to increased home prices. The legislation would address the lack of housing inventory for individuals and families whose incomes are up to 120 percent of the area median income, particularly in areas where middle-income families have historically been priced out. 

“Democrats are focused on attacking the cost of living, and with rents and home prices climbing every year, the key to solving our housing crisis is to build, build, build. That’s what this bill is all about,” said Wyden. “The housing crisis is no longer just about big cities like Portland, it’s all over Oregon and the entire country – urban centers, suburban communities, even a lot of rural areas. Congress needs to look at every available solution that’ll get more housing built so that families don’t have to break the bank to pay the rent every month.”

The New Homes Tax Credit would be administered under the Community Development Financial Institutions Fund. That fund certifies Housing Development Entities, which can be Community Development Financial Institutions, government and quasi-governmental entities, or non-profits. Following certification, Housing Development Entities will use the capital raised from exchanging their tax credits with investors to provide funds for construction companies that build or renovate single-family homes. 

Along with Wyden, The New Homes Tax Credit Act is cosponsored by Senators Peter Welch, D-Vt., and Chris Van Hollen, D-Md.

The legislation is supported by the Mortgage Bankers Association, National Association of Home Builders, National Association of Realtors, Housing New Mexico, Homewise, Yes Housing, Inc., and Strong Towns Albuquerque. 

The text of the bill is here.