The HOPE Act
The Housing Opportunities and Preservation Enhancement (HOPE) Act, H.R. 9573, intends to attract private investment for the rehabilitation of affordable housing. The bill targets residential rental properties that are at least 15 years old, many of which are past their compliance period for the Low-Income Housing Tax Credit (LIHTC) under IRC § 42 and at risk of being converted to market-rate units.
The HOPE Act would make smaller-scale preservation projects more attractive to individual investors by offering several key tax benefits. The legislation would exempt investors in qualified properties from the passive activity loss rules under IRC § 469 and the profit-motive rules of IRC § 183. This would allow investors to deduct losses from these properties against other income.
To dig deeper, visit the original article on the Thomson Reuters blog.