New Legislation Would Revitalize America's Communities

NAIOP Commends "Revitalizing Downtowns and Main Streets Act" Introduced Today in the U.S. House of Representatives

HERNDON, Va., July 12, 2024 /PRNewswire/ -- NAIOP, the Commercial Real Estate Development Association, commends the introduction of the "Revitalizing Downtowns and Main Streets Act," which establishes a new 20% tax credit to make possible conversion of many underutilized or vacant commercial properties to residential use.

The bipartisan bill is sponsored by U.S. Representatives Mike Carey (R-OH) and Jimmy Gomez (D-CA).

"This legislation will spur the conversion of vacant spaces that can stimulate local economies and begin to address the housing crisis in communities across the U.S.," said Marc Selvitelli, CAE, president and CEO of NAIOP. "This important bill allows Congress to begin rectifying many of the ripple effects of the COVID-19 pandemic that are still affecting the lives of Americans and impacting local tax revenues."

The proposed legislation includes:

• 20% tax credit for expenses incurred during the conversion of an eligible underutilized or vacant commercial property that is older than 20 years and is capable of being repurposed for residential use.
• Affordable housing for those with incomes at or below 80% of the area median income designated for 20% of converted residential units.
• Additional incentives for rural and economically distressed areas to ensure that all communities can benefit from the legislation.
• The ability to combine existing historic tax credits and other incentives offered by municipalities and states.

"This bill reaches beyond the urban core and into cities of all sizes across the country," said Selvitelli. "Its impact on local tax revenues will replace dollars lost to underutilized and defaulted properties, and it provides building owners with the opportunity to create more sustainable, energy-efficient spaces. We encourage the House to move quickly on this important bill, and NAIOP looks forward to productive discussions within the House and Senate so a bill can be enacted into law."

Working with the federal government to incentivize the adaptive reuse of vacant and underutilized office buildings and other structures to help address the severe shortage of affordable housing is a legislative priority for NAIOP and its members.

"NAIOP congratulates Reps. Carey and Gomez for their leadership on this important bill," said Selvitelli. "Together with our coalition partners, NAIOP recognized an issue, identified a solution, and began working to move it forward. As this bill progresses, we expect our 21,000+ members in cities large and small will be called on to share their experiences and voice their support."

To learn more about NAIOP's legislative position and work on adaptive reuse, visit naiop.org/adaptive-reuse.

About NAIOP
NAIOP, the Commercial Real Estate Development Association is the leading organization for developers, owners, investors and related professionals in office, industrial, retail, and mixed-use real estate. NAIOP provides unparalleled industry networking and education and advocates for effective legislation on behalf of our members. NAIOP advances responsible, sustainable development that creates jobs and benefits the communities in which our members work and live. For more information, visit naiop.org.

SOURCE NAIOP