A one-pager on the bill can be found here.
The bill is co-led by Representatives John Larson (CT-01) and Dan Kildee (MI-08), and cosponsored 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.
“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 downtowns by increasing housing supply and filling vacant real estate, making our cities and towns economic powerhouses," said Representative Gomez.
“Between high housing costs and the rise of remote work, formerly prosperous neighborhoods across the country are struggling,” said Representative 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.”
“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.
“Our new bipartisan bill, supported by Republicans and Democrats, will help breathe new life into Michigan’s older, industrial communities by repurposing vacant and obsolete buildings into affordable housing for Michiganders,” said Representative Kildee. “This will help lower housing costs, create good jobs and grow the local economy in cities and towns across Michigan.”
“With housing costs skyrocketing and supply dwindling, the American Dream of homeownership has become unattainable for far too many families,” said Representative Fitzpatrick. "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.
“Downtowns and main streets are the lifeblood of our country’s economy. At a time when significant changes in office work patterns continue and a worsening housing shortage threatens prosperity, converting unused commercial space into residential developments will bring jobs and vitality to city centers while increasing the housing stock. By providing the first-ever federal investment in office-to-residential conversions, the Revitalizing Downtowns and Main Streets Act will help communities of all shapes and sizes create new economic opportunities for all their citizens,” said David Downey, President and CEO of the International Downtown Association.
“Cities are at a tipping point and need to reimagine themselves to reach pre-pandemic levels of economic activity. The Revitalizing Downtown and Main Streets Act would provide a much-needed boost to restore the vibrancy of our city centers. We’re grateful for this bipartisan leadership that recognizes how crucial downtowns and main streets are to the fabric of our nation,” said Nella McOsker, President and CEO of Los Angeles Central City Association.
