Peters, Fitzpatrick Introduce Bill to Create More Affordable Housing
Legislation would encourage property sales for affordable housing and homeless services
Washington, D.C. — Today, Representatives Scott Peters (CA-50) and Brian Fitzpatrick (PA-01) introduced the Affordable Housing Incentives Act, a bold effort to make it easier for property owners to sell to affordable housing and homeless service providers by offering a tax deferral. This will make it easier to acquire properties and build more affordable homes for communities like San Diego, where high rents and low homeownership rates make it difficult for families to find a place to live.
“San Diego’s housing crisis is urgent and undeniable. Average rents here are 44% above the national average, and only 13% of county households can afford to purchase a median-priced home,” said Rep. Peters. “Our bipartisan bill is a commonsense solution that rewards property owners who help expand affordable housing and makes it easier for organizations dedicated to serving our community to provide homes for those who need them most.”
“From expanding the supply of new homes to removing barriers for veterans, seniors, and working families, we have been advancing a comprehensive affordability agenda grounded in practical, bipartisan action,” said Rep. Fitzpatrick. “The Affordable Housing Incentives Act builds on that work by bringing property owners, local governments, and trusted community organizations together to unlock more housing for long-term affordable use—while protecting taxpayers and preserving affordability for decades. We will continue pursuing every responsible solution available to lower costs, strengthen our communities, and ensure more families can build a secure future in the places they call home.”
“The Local Initiatives Support Corporation (LISC) thanks Representatives Peters and Fitzpatrick for introducing the Affordable Housing Incentives Act. LISC San Diego has seen firsthand how the high costs of housing and limited supply of affordable units are impacting families in our communities. This legislation would incentivize multifamily housing owners to sell their properties to affordable housing operators. We thank Representatives Peters and Fitzpatrick for their leadership on this bill and for recognizing that increased affordable housing opportunities are essential to solving local housing challenges,” said Ricardo Flores, Executive Director, LISC San Diego.
“America needs to build more homes, but we can also create long-term affordable housing from the homes we already have,” said Mike Kingsella, Chief Executive Officer of Up for Growth and Up for Growth Action. “The Affordable Housing Incentives Act gives apartment owners a meaningful tax incentive to sell to affordable housing providers. Those homes would remain affordable for at least 30 years, creating affordable housing now and protecting it for decades to come.”
In competitive real estate markets like San Diego, organizations that build and operate affordable housing and homeless services, like nonprofits and government agencies, often face difficulties acquiring new properties to develop, even when they have funding available. Under current law, the sale of property to an affordable housing operator is taxed the same as any other real estate sale, with capital gains due at the time of sale. This discourages property owners from selling to organizations that can help address our housing shortage.
The Affordable Housing Incentives Act lets property owners sell to affordable housing or homeless shelter organizations with incentives, as long as the property stays affordable for at least 30 years and the sale price is fair. Sellers must also ensure the sale price does not exceed an independent qualified appraised value to prevent sellers from inflating the sale price and protect affordable housing operators from potential exploitation.
This bill is supported by National Low Income Housing Coalition, US Conference of Mayors, National Association of Home Builders, Up for Growth, and Inclusive Abundance Action.
Background:
Rep. Peters has made addressing housing affordability and homelessness a central focus of his work in Congress, particularly in response to rising rents and housing shortages in San Diego. He has championed policies to increase the supply of affordable housing, support building higher-density housing near transit, and ban income discrimination in housing. He is also a member of the Build America Caucus – a bipartisan group of lawmakers working to expedite infrastructure development.
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