To rescind certain immigration enforcement funds and amend the Internal Revenue Code to provide for new credits related to expanding access to housing.
Sponsors
Legislative Progress
IntroducedMr. Gomez (for himself, Ms. Norton, Mr. Carter of Louisiana, …
Summary
What This Bill Does
The Make Housing Affordable and Defend Democracy Act rescinds approximately $175.6 billion in previously allocated immigration enforcement funds and redirects federal fiscal resources toward a comprehensive suite of housing affordability programs. The bill creates four new tax credits targeting homebuyers, renters, and housing developers to address the national housing affordability crisis.
Who Benefits and How
First-time homebuyers receive up to $25,000 in tax credits for down payments and closing costs, with first-generation homebuyers (those whose parents never owned property, foster care alumni) receiving up to $50,000. Low-income renters paying more than 30% of their income on rent receive refundable tax credits with an option for monthly advance payments. Home builders constructing small starter homes under 1,200 square feet receive 15-30% tax credits on construction costs. Real estate developers converting old commercial buildings to affordable housing receive 20% investment tax credits from a $12 billion national pool. Affordable housing developers serving extremely low-income households receive enhanced LIHTC credits with a 50% basis boost. Mortgage lenders, real estate professionals, and banks also benefit from increased housing market activity.
Who Bears the Burden and How
Federal taxpayers bear the cost of the new tax credit programs through reduced tax revenue. U.S. Customs and Border Protection, ICE, and the Department of Homeland Security lose $175.6 billion in previously appropriated funds for border enforcement, detention, personnel, and infrastructure. Border wall construction contractors lose $46.5 billion in contracts. Immigration detention facility operators lose $45 billion. Border security technology vendors lose $6.1 billion in potential contracts. State governments lose $10 billion from the State Border Security Reinforcement Fund. The IRS faces significant new administrative burden implementing multiple new credit programs including a monthly advance payment system for renters.
Key Provisions
- First-Time Homebuyer Credit: Up to $25,000 ($50,000 for first-generation buyers) for down payment and closing costs, with income phase-outs and high-cost area bonuses
- Renter Tax Credit: Refundable credit for renters paying over 30% of income on rent, with tiered percentages based on income and optional monthly advance payments
- Starter Home Construction Credit: 15% credit (30% for first-time buyer sales) for homes under 1,200 sq ft priced at 80% of area median, allocated via state housing agencies
- Affordable Housing Conversion Credit: 20% investment credit for converting commercial buildings 20+ years old to affordable housing, with a $12 billion national cap
- LIHTC Enhancement: 50% basis boost for buildings serving extremely low-income households (30% AMI or below)
- Immigration Funding Rescission: $175.66 billion in enforcement funds rescinded from border wall, detention, personnel, technology, and related programs
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Rescind approximately $175.6 billion in previously appropriated immigration enforcement funds and redirect fiscal resources toward housing affordability through multiple new tax credits for homebuyers, renters, and housing developers.
Policy Domains
Legislative Strategy
"Redirect funds from immigration enforcement to create a comprehensive suite of housing tax incentives targeting first-time homebuyers, renters paying more than 30% of income, home builders constructing affordable starter homes, and developers converting commercial buildings to affordable housing."
Likely Beneficiaries
- First-time homebuyers (especially first-generation homebuyers who receive double the credit)
- Renters paying more than 30% of income on housing
- Home builders constructing small starter homes
- Real estate developers converting commercial buildings to affordable housing
- Low-Income Housing Tax Credit (LIHTC) developers serving extremely low-income households
- Mortgage lenders and banks administering escrow accounts
- State housing credit agencies
Likely Burden Bearers
- Federal taxpayers (reduced tax revenue from credits)
- Department of Homeland Security (loss of appropriated enforcement funds)
- U.S. Customs and Border Protection (loss of personnel, vehicle, and facility funding)
- U.S. Immigration and Customs Enforcement (loss of hiring and training funds)
- Bureau of Prisons (loss of $5 billion in funding)
- IRS (administration of new tax credit programs and advance payment systems)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "congress"
- → United States Congress
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of the Treasury
- "housing_credit_agency"
- → State Housing Credit Agency
- "the_secretary"
- → Secretary of the Treasury
- "housing_credit_agency"
- → State Housing Credit Agency
- "housing_credit_agency"
- → State Housing Credit Agency
- "hud"
- → Department of Housing and Urban Development
- "the_secretary"
- → Secretary of the Treasury
Key Definitions
Terms defined in this bill
Includes any amount paid for utilities of a type taken into account for purposes of determining the utility allowance.
The conversion of an eligible commercial building into a qualified affordable housing building if expenditures exceed the greater of 50 percent of adjusted basis or $100,000.
A residential building where during a 30-year period, not less than 20 percent of units are both rent-restricted and reserved for individuals with income at 80 percent or less of area median income.
Amounts paid or incurred for labor and material costs to construct a unit of housing placed in service where total square footage does not exceed 1,200 feet and sale price does not exceed 80 percent of area median home price.
An individual who aged out of foster care, was emancipated from their parent, or whose parents never had a majority interest in residential property during the individual's lifetime.
Any individual (and if married, spouse) who had no present ownership interest in a principal residence during the 10-year period ending on the purchase date, has not been allowed the credit previously, and attests they have never had a majority interest in residential property.
Amounts paid for a down payment on the purchase of a home and closing costs with respect to such purchase.
Any building originally placed in service not less than 20 years before the conversion begins and was nonresidential real property immediately prior to conversion.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology