119th (2025–2027)
H.R. 537
The INCREASE Housing Affordability Act creates a new federal tax credit to encourage converting commercial buildings—particularly vacant office spaces—into residential housing. The bill establishes a 15% tax credit capped at $200,000 per unit and $10 million per building, with bonus increases of 10-20% for projects that include affordable units for low-income renters and an additional 15% bonus for projects paying prevailing wages. To support these conversion efforts, the bill requires the Department of Housing and Urban Development to establish a 20-member advisory board within one year to provide technical assistance and guidance to state and local housing agencies on identifying conversion opportunities, streamlining permitting, and removing zoning barriers, with $5 million in annual funding authorized through fiscal year 2029. The tax credit applies to conversion costs incurred after the bill becomes law, allowing taxpayers to claim credits gradually as multi-year projects progress. This legislation aims to address housing shortages by transforming underutilized commercial properties into homes while supporting community efforts to increase affordable housing supply.