Revitalizing America’s Housing Act

This bill aims to make housing more available, safer, and more affordable. It pushes local zoning reforms, raises the home-sale tax break, opens more homebuying help for public servants and veterans, improves small-dollar mortgages, and tackles home health hazards like mold and lead. It also adds new tools to build and fix owner‑occupied homes and adjusts some energy and tax rules to support housing growth.

Key points

• Local zoning and planning: Cities and counties that get certain federal community development grants must submit a housing‑friendly land use plan (for example, allowing duplexes, accessory units, smaller lots, less parking, and faster permits). This starts one year after enactment.
• Selling your home: The tax‑free amount when you sell your main home goes up to $500,000 for single filers and $1,000,000 for joint filers, with inflation adjustments after 2024. Applies to sales after enactment.
• Public servants and volunteers: Families in public housing with a police officer, firefighter, or EMT get a special rent formula. Service members, firefighters, and law enforcement can buy discounted HUD homes in more places, and volunteer first responders get an $18,000 income deduction for USDA rural loan eligibility and can qualify for HUD discounts with a simple verification letter.
• Veterans: VA disability compensation would not count against income limits in certain housing programs, helping more veterans qualify.
• Small‑dollar mortgages: Federal regulators must update rules to encourage loans under $70,000, including adjusting points‑and‑fees limits and allowing salaried loan originators for these small loans.
• Health and safety: Agencies must study health effects of indoor mold, map problem areas, and run a yearly public information campaign. Materials must be in plain, sixth‑grade language, in at least two languages, include a mold pamphlet updated every five years, and appear on agency websites and public transit ads. HUD must also do annual lead‑risk checks in assisted housing, make action plans, and treat lead as a serious inspection issue.
• Building and investment: Creates a Neighborhood Homes Credit to help build or rehab owner‑occupied homes, with safeguards if homes are resold quickly. It also allows more types of income to get tax breaks when invested in Opportunity Zone funds and delays/caps new distribution‑transformer efficiency rules for 10 years to ease supply shortages.
• Oversight: Improves reporting and oversight of housing programs, including monthly FHA fund updates and steps to prevent federal support from enabling squatting.