United States Representative Jimmy Panetta joined fellow Ways and Means Committee members on May 21 to introduce the Rental Housing Investment Act, a bipartisan bill aimed at modernizing the tax code, lowering construction costs, and incentivizing the development of affordable rental housing.
Panetta said, “Although many people work in California’s 19th Congressional District, contributing so much to our economy and communities, many people can’t afford to live in our district due to the lack of affordable rental housing. That’s why I’m joining my colleagues to introduce the bipartisan Rental Housing Investment Act as a way to incentivize the development of new multifamily rental housing with deductions for upfront costs, which often prevent contractors from getting projects off the ground. This type of bipartisan legislation is a way in which the federal government can play its part to ensure more affordable housing for working families in our communities.”
Representative Linda T. Sánchez said, “Southern California families are being priced out of their own communities. Rents are climbing and there simply are not enough homes to meet demand. Our bill removes a real barrier to building more housing to give working families a shot at finding a home they can afford.” Representative Claudia Tenney added, “Families across New York and across the country are struggling under the weight of rising housing costs and a severe shortage of available rental housing. The federal tax code should encourage the construction of more housing, not stand in the way. This bipartisan legislation takes a practical, market-driven approach to expanding housing supply, reducing development costs, and helping make housing more affordable for hardworking Americans.” Representative Darin LaHood said that addressing this issue requires advancing legislation that drives investment into new affordable housing nationwide.
The United States is experiencing an ongoing shortage of rental properties—particularly multifamily apartments—as construction has failed to keep pace with population growth. High upfront construction costs remain one major obstacle for developers because current tax law requires them to recover these expenses over 27.5 years.
The proposed Rental Housing Investment Act would allow builders an immediate deduction up to $150,000 per unit in construction costs instead of depreciating those expenses over decades; it also offers an enhanced deduction up to $250,000 per unit for projects with income-restricted units reserved for working families who maintain attainability commitments for at least 15 years. The incentive applies only to newly constructed multifamily rentals.
Senator Lisa Blunt Rochester previously introduced companion legislation in the Senate.
