NAIOP Plays Key Role in New Adaptive Reuse Bill Introduced Today in the U.S. House of Representatives

A bill that NAIOP and its members spearheaded was introduced today in the U.S. House of Representatives. The “Revitalizing Downtowns and Main Streets Act” establishes a new 20% tax credit to convert many underutilized or vacant commercial properties to residential use.

The bipartisan bill is sponsored by U.S. Representatives Mike Carey (R-OH) and Jimmy Gomez (D-CA).

“This legislation will spur the conversion of vacant spaces that can stimulate local economies and begin to address the housing crisis in communities across the U.S.,” said Marc Selvitelli, CAE, president and CEO of NAIOP. “This important bill allows Congress to begin rectifying many of the ripple effects of the COVID-19 pandemic that are still affecting the lives of Americans and impacting local tax revenues.”

The proposed legislation includes:

• 20% tax credit for expenses incurred during the conversion of an eligible underutilized or vacant commercial property older than 20 years and capable of being repurposed for residential use.
• Affordable housing for those with incomes at or below 80% of the area median income is designated for 20% of converted residential units.
• Additional incentives for rural and economically distressed areas to ensure that all communities can benefit from the legislation.
• The ability to combine existing historic tax credits and other incentives offered by municipalities and states.  

“This bill reaches beyond the urban core and into cities and communities of all sizes across the country,” said Selvitelli. “Its impact on local tax revenues will replace dollars lost to underutilized and defaulted properties, and it provides building owners with the opportunity to create more sustainable, energy-efficient spaces. We encourage the House to move quickly on this important bill, and NAIOP looks forward to productive discussions within the House and Senate so a bill can be enacted into law.”

Working with the federal government to incentivize the adaptive reuse of vacant and underutilized office buildings and other structures to help address the severe shortage of affordable housing is a legislative priority for NAIOP and its members.

“NAIOP congratulates Reps. Carey and Gomez for their leadership on this important bill” said Selvitelli. “Together with our coalition partners, NAIOP recognized an issue, identified a solution, and began working to move it forward. As this bill progresses, we expect our 21,000+ members in cities large and small will be called on to share their experiences and voice their support.”

As this legislation progresses, NAIOP members will be activated to voice support and communicate the needs of their communities. To learn more about NAIOP’s legislative position and work on adaptive reuse, visit naiop.org/adaptive-reuse.