119-HR-537 Journalist Public Summary

Public Summary: INCREASE Housing Affordability Act (H.R. 537)

Headline Summary: A tax-credit plan to turn unused office space into homes, with extra incentives for affordable units and fair-wage labor, plus a federal advisory board to help local conversion efforts. (congress.gov)

What It Does: The bill creates a new “commercial‑to‑residential” investment tax credit equal to 15% of qualified conversion costs, capped at $200,000 per new housing unit and $10 million per building. Projects can earn add‑on bonuses: up to +20% if at least 25% of units are rent‑restricted for lower‑income households (with tiers at 100%, 80%, and 60% of area median income) and +15% if prevailing wages are paid during construction. Eligible buildings must be older office properties (15+ years since first placed in service) that undergo substantial conversion; the credit cannot be claimed on the same expenditures also used for the Low‑Income Housing Tax Credit or the historic rehabilitation credit. The bill also directs HUD to stand up a 20‑member advisory board to provide technical assistance to state and local agencies, with $5 million authorized annually from FY2025–FY2029. (congress.gov)

• Sponsor: Rep. Mikie Sherrill (D‑NJ). (congress.gov)
• Cosponsors: Reps. Robert Garcia (D‑CA) and Seth Magaziner (D‑RI). (congress.gov)
• Endorsements noted by the sponsor include LIUNA (Laborers’ International Union of North America), Greater Middlesex & Morris Habitat for Humanity, New Jersey Realtors, SchoolHouse Connection, and other New Jersey‑based groups, arguing the bill would boost supply for “missing‑middle” households. (sherrill.house.gov)

• Fiscal and policy skeptics often question new, targeted federal tax credits on cost‑effectiveness grounds and prefer broader reforms or direct appropriations; analysts also warn that conversions are not a silver bullet given the small share of office buildings that pencil out. (economics.td.com)
• Urban policy researchers highlight feasibility and quality concerns (e.g., deep floorplates, code challenges) and caution that incentives should be paired with local zoning/permit fixes to avoid poor‑quality housing outcomes. (brookings.edu)

What’s Next: Status—Introduced on January 16, 2025 and referred to the House Ways and Means and Financial Services Committees; as of March 6, 2026, Congress.gov shows no further action. If advanced, it would still need House passage, Senate approval, and the President’s signature. (congress.gov)