WASHINGTON, D.C.– Today, Representative Mike Carey (OH-15) and Jimmy Gomez (CA-34) announced the introduction of his bipartisan, bicameral Revitalizing Downtowns and Main Streets Act. The bill encourages the conversion of vacant and underutilized commercial properties into housing.
The bill is co-led by Representatives Dan Kildee (MI-08) and John Larson (CT-01), and co-sponsored by Representatives Brian Fitzpatrick (PA-01), Claudia Tenney (NY-24), Terri Sewell (AL-07), David Kustoff (TN-08), Mike Kelly (PA-16), Don Beyer (VA-08), Carol Miller (WV-01), and Jimmy Panetta (CA-19). A Senate Companion bill is being led by Senator Debbie Stabenow (MI).
According to Pew Research, 49 percent of Americans lack affordable housing in their communities, and the US would need to build an estimated 4.3 million apartments by 2035 to meet the demand for rental housing.
At the same time, commercial properties are sitting vacant. Following the COVID-19 pandemic, an estimated 30 percent of Americans’ workdays are remote. A chilling effect on commercial real estate has followed, with one study estimating a $413 billion reduction in commercial real estate asset values due to the remote work trend.
“Between high housing costs and the rise of remote work, formerly prosperous neighborhoods across the country are struggling,” said Congressman Carey. “The solution is right in front of us. But even though vacant commercial and office space is sitting unused, converting these properties into housing is so expensive it is often uneconomical. This bill will allow communities to meet their residents’ need for affordable, abundant housing and allow American downtowns and main streets to thrive.”
Representative Gomez said, “Our legislation is a response to two major parallel problems—empty commercial and office space in downtowns and throughout suburban and rural communities, and a housing crisis that is forcing people to live on the streets. The Revitalizing Downtowns and Main Streets Act will supercharge main streets by increasing housing supply and filling vacant real estate, making our cities and towns economic powerhouses.”
“The COVID-19 pandemic changed the way we work, leaving many office buildings empty across the downtown Hartford area and the rest of the nation,” said Larson. “It’s time to make use of this empty space and address the constrained housing market our constituents are facing. I joined Reps. Gomez, Carey, and Kildee in this bipartisan effort to revitalize our downtown spaces, help our restaurants and small businesses, and expand access to quality and affordable housing for Connecticut residents,” said Representative Larson.
“With housing costs skyrocketing and supply dwindling, the American Dream of homeownership has become unattainable for far too many families,” said Rep. Fitzpatrick (PA-1). “Bucks and Montgomery counties continue to acutely feel this impact, and I am committed to finding commonsense solutions. Our bipartisan Revitalizing Downtowns and Main Streets Act aims to convert empty commercial buildings into housing units. This initiative will help reduce housing costs and increase the housing supply in our community and nationwide.”
Specifically, the bill provides a federal tax credit, modeled after the Historic Preservation Tax Credit, to facilitate the conversion of older, underutilized office and other commercial buildings into residential housing.
The credit amount for any taxable year would be equal to 20% of the qualified conversion expenditures with respect to a qualified converted building. The bill ensures converted properties will increase the supply of affordable housing by requiring that during the 30-year period following conversion, no less than 20% of the residential units in the buildings is reserved for individuals with incomes at 80% or less of area’s median income.
Full text of the bill can be found here.