Housing Opportunities and Preservation Enhancement Act of 2026

This bill would add new federal tax rules for certain older apartment buildings owned by partnerships whose managing partners are nonprofits, state or local governments, tribal housing agencies, or public housing authorities. To qualify, at least 70 percent of a building's units must be rent-restricted and rented to households earning 80 percent or less of the area median income, and the owners must spend at least 20 percent of the building's value or $20,000 per unit on rehabilitation within 24 months. Qualifying buildings would receive tax benefits, including a 15-year depreciation period, exemption from passive activity loss rules, and a stepped-up basis on sale after 10 years. The bill would also allow government agencies and certain nonprofits to hold rights to buy the property after 10 years at a set minimum price without the owners losing tax benefits.

Full text and official record on Congress.gov

Sponsors

• Mike Carey Republican sponsor
• 0 cosponsors