Affordable Housing Incentives Act

Sponsor: Scott H. Peters (Democratic-CA)July 22, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Lets property owners avoid taxes when selling land for affordable housing.

This bill would let property owners avoid or delay paying capital gains taxes if they sell real estate to groups building affordable housing. The properties would need to stay affordable for at least 30 years.

What Would Change

Today, selling real property generally means paying capital gains tax on any profit from the sale. If this bill passes, selling real property to an approved affordable housing group would let the seller defer or avoid those capital gains taxes, as long as the property stays affordable for 30 years.

Key Provisions

Lets property owners avoid or delay paying capital gains tax when selling real estate for affordable housing.
Requires properties sold under this rule to remain affordable housing for at least 30 years.
Defines "qualified housing operators" to include governments and non-profit groups focused on affordable housing.
Requires sellers to notify the Treasury Department of the sale within 90 days.
Requires the Treasury Department to check every five years for 30 years to ensure properties remain affordable.
Requires the sale price not to exceed a qualified appraisal amount.

View on Congress.gov

HR 9870 · 119th Congress · July 22, 2026 · AI Summary by gemini-2.5-flash · 8/10

Affordable Housing Incentives Act

What Would Change

Key Provisions

Lobbying Activity