Larson and Colleagues Introduce Bipartisan Bill to Revitalize Downtowns and Tackle Housing Affordability Crisis

Washington, D.C. - Rep. John B. Larson (CT-01) introduced the bipartisan Revitalizing Downtowns and Main Streets Act with Reps. Jimmy Gomez (CA-34) and Mike Carey (OH-15). Their bill incentivizes the conversion of existing vacant and underutilized commercial properties into new housing. 

“As many businesses moved to hybrid work models during the COVID-19 pandemic, downtowns in cities like Hartford saw dramatic changes, including new building vacancies,” said Larson. “The bipartisan Revitalizing Downtowns and Main Streets Act offers a new path forward by supporting the conversion of many of these unused office spaces into reliable housing options. I am thrilled to introduce this innovative solution with my colleagues to expand access to quality, affordable housing for residents and spur economic growth in our cities.” 

“The housing crisis is squeezing family budgets, while empty commercial and office buildings sit unused in downtowns and in suburban and rural communities,” said Gomez. “Our bipartisan bill converts these empty commercial buildings into homes families can afford—a smart way to fix both problems. We need a housing boom like we haven’t seen since World War II, so this legislation is a no-brainer. We’re helping people live where they work by filling vacant real estate and increasing our housing supply.” 

“High costs of living have driven up housing prices for working families and it is cutting into budgets during kitchen table discussions,” said Carey. “There is a solution right in front of us: add existing buildings to the housing supply. Right now, vacant commercial and office space is sitting unused, and converting these properties into housing is often so expensive it isn’t worth doing. This bipartisan bill will allow communities to expand their supply of affordable housing by upgrading existing buildings, allowing American downtowns and main streets to thrive with new investments.” 

“We want Hartford to be the easiest place to do business, and this tax credit is a monumental step in the right direction to attract businesses to Hartford and build on the success our downtown has seen,” said Hartford Mayor Arunan Arulampalam. "I’m grateful to Congressman Larson for his continued efforts to invest in our downtown center, for being a champion of our Capital City and for recognizing how crucial our economic vitality is to the development of the Hartford region.” 

"The Revitalizing Downtowns Act marks a significant opportunity for urban revitalization across the nation,” said David Griggs, President and CEO of the MetroHartford Alliance. “This legislation's innovative tax credit will incentivize the conversion of outdated office buildings into much-needed residential and mixed-use spaces. By doing so, it addresses the dual challenges of underutilized urban spaces and the housing shortage. This Act is essential for fostering economic growth, creating jobs, and maintaining the vibrancy of our downtown areas, and we sincerely appreciate Congressman Larson’s leadership in advancing this legislation. The MetroHartford Alliance enthusiastically supports this bill and its potential to bring positive change to our communities."   

According to Pew Research, 49% of Americans lack affordable housing in their communities, and the United States would need to build an estimated 4.3 million apartments by 2035 to meet the demand for rental housing. At the same time, commercial properties are sitting vacant. Following the COVID-19 pandemic, an estimated 30% of Americans’ workdays are remote. 

The Revitalizing Downtowns and Main Streets Act provides a federal tax credit, modeled after the Historic Preservation Tax Credit, to facilitate the conversion of older, underutilized office and other commercial buildings into residential housing.   

The credit amount for any taxable year would be equal to 20% of the qualified conversion expenditures with respect to a qualified converted building. The bill ensures converted properties will increase the supply of affordable housing by requiring that during the 30-year period following conversion, no less than 20% of the residential units in the buildings is reserved for individuals with incomes at 80% or less of area’s median income.  

Full text of the bill can be found HERE.