Affordable Housing Incentives Act

The Affordable Housing Incentives Act allows property owners to avoid paying capital gains taxes when they sell real estate to qualified housing operators for use as affordable housing. To qualify, the property must be subject to a binding legal agreement that ensures it remains affordable or used as a homeless shelter for at least 30 years. The sale price cannot exceed the value determined by a professional appraisal, and the seller must notify the Treasury Department within 90 days of the transfer. The Treasury is required to audit these properties every five years to verify they continue to meet the affordability requirements throughout the 30-year period.