Heinrich Leads Legislation to Build and Renovate Homes for Working Families
WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.) introduced the New Homes Tax Credit Act, legislation that will provide tax credits to incentivize new investments and additional resources for single-family home construction and renovations for working families.
As Chairman of the U.S. Joint Economic Committee (JEC), Heinrich released a report on housing supply in America, which found that underbuilding, restrictive zoning policies, and home financing hurdles have caused the supply of starter homes to shrink and prices to rise. High interest rates and mangled supply chains have also contributed to increased home prices. Heinrich’s legislation will address the lack of housing inventory for individuals and families whose incomes are up to 120 percent of the area median income (AMI), particularly including in areas where middle-income families have historically been priced out. In Albuquerque, Santa Fe, and Las Cruces, New Mexico, for example, this added housing inventory would benefit families with annual incomes of up to $103,680, $109,800, and $78,960, respectively.
“Every New Mexican who’s looked at buying a home knows: housing prices are too high. To solve that, we need to build and renovate more homes. It's that simple,” said Heinrich. “My New Homes Tax Credit Act will help boost home construction and renovation for middle-income New Mexicans, growing our local economies and giving more working families a shot at success.”
“Democrats are focused on attacking the cost of living, and with rents and home prices climbing every year, the key to solving our housing crisis is to build, build, build. That’s what this bill is all about,” said Wyden. “The housing crisis is no longer just about big cities like Portland, it’s all over Oregon and the entire country – urban centers, suburban communities, even a lot of rural areas. Congress needs to look at every available solution that’ll get more housing built so that families don’t have to break the bank to pay the rent every month.”
“The housing shortage crisis has been brutal for communities across the country. In Vermont, we’ll need at least 30,000 more homes by 2030. To address this crisis, we must find new and innovative ways to encourage new construction and renovations of starter homes for lower and moderate-income communities,” said Welch. “Everyone deserves to have a safe and affordable place to live.”
The New Homes Tax Credit (NHTC) would be administered under the Community Development Financial Institutions (CDFI) Fund. The CDFI Fund certifies Housing Development Entities (HDEs), which can be CDFIs, government and quasi-governmental entities, or non-profits. Following certification, HDEs will use the capital raised from exchanging their NHTCs with investors to provide funds for construction companies that build or renovate single-family homes.
The New Homes Tax Credit Act is cosponsored by U.S. Senators Ron Wyden (D-Ore.), Peter Welch (D-Vt.), and Chris Van Hollen (D-Md.).
The legislation is supported by the Mortgage Bankers Association, National Association of Home Builders, National Association of Realtors, Housing New Mexico, Homewise, Yes Housing, Inc., and Strong Towns Albuquerque.
“With a nationwide shortage of roughly 1.5 million housing units, we must increase the supply of housing to ease the nation’s housing affordability crisis,” said Carl Harris, Chairman of the National Association of Home Builders. “NAHB is pleased to support the Affordable Housing Expansion Tax Credit, which would create a new federal program to help finance the construction or renovation of affordable, entry-level housing. With nearly half of U.S. households unable to afford a $250,000 home, we must adopt policies to make homeownership more accessible and increase production of entry-level housing.”
“Home ownership is still very much part of the American Dream. The New Homes Tax Credit Act, sponsored by Senator Martin Heinrich, is an innovative way to offset construction costs and lower those costs that are passed on to the homebuyers. This makes the purchase of a home much more feasible than what the current market costs allow. Many more Americans will be to attain their goal of owning a home to raise their families.” said Chris Baca, President/CEO, Yes Housing, Inc, a New Mexico based non-profit affordable housing developer.
The legislation is also supported by Strong Towns Albuquerque, which stated, “This Act represents an innovative approach to encourage private investment in the development and renovation of entry-level homes for low- and moderate-income families. By establishing a tax credit for investments in housing development entities that provide affordable housing, this Act promotes the construction and renovation of homes for first-time buyers and those from underserved communities. It directly aligns with our commitment to fostering equitable, sustainable urban growth by expanding access to safe and affordable housing for individuals and families whose incomes do not exceed 120 percent of the area median income (AMI).”
A summary of the bill is here. A tool to determine AMI’s across the country is here.
The text of the bill is here.
Background
Heinrich is a tireless advocate for lowering housing costs, increasing housing supply, and expanding housing affordability and access for families in New Mexico.
Heinrich secured $3 million for Homewise in the Fiscal Year 2025 (FY25) Transporation, Housing and Urban Development, and Related Agencies Appropriations Bill, which will help moderate-income, first-time homebuyers in New Mexico purchase entry-level homes.
Through his role as a member of the Senate Appropriations Committee, particularly through his role as Chairman of the Senate Appropriations Subcommittee on Agriculture, Rural Development, Food and Drug Administration, and Related Agencies, he has worked directly to deliver millions of dollars to New Mexico for renters and home buyers.
In July, Heinrich announced the Senate Appropriations Committee’s bipartisan, unanimous passage of his FY25 Agriculture, Rural Development, and Food and Drug Administration Appropriations Bill that includes $1.6 billion in rental assistance to ensure Americans living in rural areas have access to safe and affordable housing. Heinrich’s bill included an increase of up to $1 billion in Single Family Direct Loans to help more low-income families and first-time home buyers get mortgages.
Heinrich also recently announced the Senate Appropriations Committee’s bipartisan, unanimous passage of the FY25 Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, which included $3.2 billion to expand programs providing critical services and housing for veterans and their families.
In Heinrich’s FY24 Agriculture Appropriations Bill, he secured $1.6 billion for rental assistance, an increase of $120 million over FY23. Heinrich’s FY24 bill also provided for a pilot program that decoupled rental assistance from Multifamily Direct Loans, preventing thousands of low-income families from losing rental assistance.
In May, Heinrich and the N.M. Congressional Delegation welcomed $11,855,081 in federal funding from the U.S. Department of Housing to support public housing authorities build, renovate, and modernize public housing across New Mexico.
In February, Heinrich and the N.M. Congressional Delegation welcomed more than $16 million in federal funding from the U.S. Department of Housing and Urban Development’s (HUD) Continuum of Care program to support New Mexico projects that provide housing assistance and supportive services to people experiencing homelessness.
Heinrich has also introduced a number of bills to tackle New Mexico’s housing crisis.
At a recent roundtable conversation with local educators in Albuquerque, Heinrich announced his Educator Down Payment Assistance Act, legislation designed to help more educators and school staff in New Mexico purchase a home and keep teachers in the communities where they teach.
In March, Heinrich co-led the First-Time Homebuyer Tax Credit Act, legislation to support homeownership among lower- and middle-income Americans by establishing a refundable tax credit worth up to 10 percent of a home’s purchase price – up to a maximum of $15,000 – for first-time homebuyers.
Heinrich also cosponsored the Housing for All Act, comprehensive legislation to expand access to affordable housing in New Mexico and supporting those experiencing homelessness. The bill would invest in proven solutions and provide a historic level of federal funding for strategic, existing programs to keep people housed and reduce homelessness, as well as for innovative, locally developed solutions to help vulnerable populations experiencing homelessness.
Last year, Heinrich introduced the Affordable Housing Credit Improvement Act, which would help build over 14,000 new affordable homes in New Mexico over the next decade, generating over $2.5 billion in wages and business income. The legislation would support the financing of more affordable housing by expanding and strengthening the Low-Income Housing Tax Credit, our country’s most successful affordable housing program.
Heinrich also introduced the Delivering Essential Protection, Opportunity, and Security for Tenants (DEPOSIT) Act, which would help an estimated 12,000 New Mexican families access rental housing through the Housing Choice Voucher Program to pay security deposits and get into a rental home.
In January, as Chairman of the U.S. Joint Economic Committee (JEC), Heinrich released a report highlighting policy approaches to increasing housing supply in America. Heinrich also chaired a JEC hearing on the report. His full opening statement can be found here.
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