"Last week, House representatives Brian Higgins, D-N.Y., and Mike Kelly, R-Pa., introduced a bill to Congress that would create a new tax credit for neighborhood revitalization. The Neighborhood Homes Investment Act[1] would build onto the current low-income housing tax credit, which has long subsidized the development of affordable rental housing, by providing a new incentive to build affordable owner-occupied housing.
"The bipartisan proposal comes in the wake of years of reports about skyrocketing housing costs and the scarcity of affordable housing in many parts of the country. For this reason, it will probably attract significant support from observers across the political spectrum. However, our history with tax-subsidized housing and community development provides reason to pause. My research on investment tax incentives and neighborhood change suggests that past policies may have contributed to housing segregation on the one hand, and harmful gentrification on the other."
In an op-ed published by Law360, Professor Michelle Layser discusses her research on investment tax incentives.
Read the full op-ed.
Note: The views expressed are those of the author and do not necessarily reflect the views of the University of Illinois College of Law.