Index Investing News
Friday, May 23, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Exploring Which Stakeholders Stand To Benefit Most From NHIA

by Index Investing News
August 30, 2023
in Property
Reading Time: 3 mins read
A A
0
Home Property
Share on FacebookShare on Twitter


On its face, a new bill called the Neighborhood Homes Investment Act (NHIA) seems to promise … [+] increased development of new affordable housing and improvement of distressed neighborhoods.

getty

It’s a painful reality: The cost of homes is putting homeownership beyond the reach of a growing share of Americans.

A new bill called The Neighborhood Homes Investment Act (NHIA) strives to address this problem, encouraging affordable home building and spurring renewal of distressed neighborhoods through the creation of a new tax credit.

By supporting affordable housing initiatives through tax credits, The American Bankers Association (ABA)-backed NHIA would work much like the Low-Income Housing Tax Credit (LIHTC). Developers or investors would receive the tax credits, which would lessen their federal tax liability, in return for building or renovating housing properties.

“On the surface, the ABA’s endorsement paints a picture of community-focused growth,” says Brian Pillmore, founder and CEO of Oklahoma City, Okla.-based Visbanking, which offers banking tools and services.

“A deeper dive reveals that many of its members could significantly benefit. The banking world, especially those involved as lenders or sponsors in housing transactions, have an undeniable vested interest in such tax credits being ratified. A successful implementation of the NHIA could amplify their transaction volumes, opening up avenues for heightened interest and fee income. It’s essential to juxtapose this backing with the broader implications and beneficiaries of the act.”

Rich potential

The NHIA offers the attractive promise of revitalized development and revived enclaves. But transforming this rich potential into on-the-ground reality is more complicated, Pillmore believes. There’s little question the tax credit could attract development to the distressed areas where it is needed the most, and where the credits would be focused.

However, according to Pillmore, “There’s a looming shadow: The interests of financial behemoths. Banks and developers with their expansive reach and financial clout, are poised to leverage these credits optimally. Thus, while we might witness a cosmetic revival of neighborhoods, the deep-rooted challenges of housing affordability might remain largely unaddressed.”

The NHIA is touted as advancing the cause of housing affordability and galvanizing community investment, both of which augur a more hopeful future for housing in distressed areas. But Pillmore believes the “true value and direction of these investments” remains in doubt. A report by the CBO, he adds, suggests the supply of affordable housing may not be increased as a result of the act. He believes that while neighborhoods could see cosmetic improvements from the NHIA, the lasting impact of the act on housing affordability remains debatable. With banks and developers poised to garner a larger share of the advantages, the community-centered goals of the act could take a back seat to the financial interests of these stakeholders.

Dual role

Pillmore envisions a conflict of interests emerging as a result of passage of the NHIA.

“Banks undeniably have a critical role in shaping community futures and are pivotal in the housing development ecosystem,” he says. “Tax credits, like those proposed in the NHIA, offer them an avenue to both support housing initiatives and realize financial gains. But this dual role can sometimes lead to conflicting interests.

“While banks can significantly impact community development and make homeownership a reality for many, their inherent business model, centered around profitability, can sometimes overshadow community-centric goals. With the NHIA, while banks might play a significant role, the larger question of balance between financial interests and genuine community development remains at the forefront.”

Should the NHIA become reality, a surge in housing activities in earmarked zones seems inevitable. But a core issue remains, Pillmore says. Will neighborhoods benefit from real and lasting improvement? Or will the enhancement turn out to be little more than window dressing? Will the primary beneficiaries be homeowners, or will they be banks, developers and mortgage companies?

“The NHIA, while promising on paper, reignites a pressing debate,” Pillmore concludes. That debate centers, he says, “On the real essence of affordable housing in America, and the actors that shape its destiny.”



Source link

Tags: benefitexploringNHIAStakeholdersstand
ShareTweetShareShare
Previous Post

Kimco Realty Gobbles Up RPT Realty In A Win-Win Transaction (NYSE:KIM)

Next Post

Are U.S. Taxpayers Unintentionally Funding China’s Military Development?

Related Posts

Simply Listed | 9940 S Ocean Drive #G5

Simply Listed | 9940 S Ocean Drive #G5

by Index Investing News
May 22, 2025
0

OUTSTANDING IN OCEANA NORTH1 Mattress | 2 Baths Uncover this COMPLETELY UPDATED, ground-floor apartment within the extremely sought-after Oceana North...

Seattle Metropolis Council committee advances housing plan with extra density

Seattle Metropolis Council committee advances housing plan with extra density

by Index Investing News
May 23, 2025
0

A Seattle Metropolis Council committee voted unanimously Wednesday to advance a stopgap housing plan that can enable as much as...

3.1 MSF Information Heart Venture Strikes Ahead Close to Phoenix

3.1 MSF Information Heart Venture Strikes Ahead Close to Phoenix

by Index Investing News
May 22, 2025
0

EdgeCore’s Mesa campus will embody 3.1 million sq. toes at full build-out. Picture courtesy of EdgeCore Digital Infrastructure EdgeCore Digital...

Howard Hughes Buys Houston-Space Constructing

Howard Hughes Buys Houston-Space Constructing

by Index Investing News
May 23, 2025
0

Howard Hughes Holdings Inc. has acquired 10101 Woodloch Forest Drive, a 202,601-square-foot, eight-story Class A workplace constructing in The Woodlands,...

New 2025 & 2026 Lease Progress Prediction (A BIG Bounce Again?)

New 2025 & 2026 Lease Progress Prediction (A BIG Bounce Again?)

by Index Investing News
May 22, 2025
0

Lease development has slowed considerably because the large hikes of 2020-2023, however might we be shut to a different main...

Next Post
Are U.S. Taxpayers Unintentionally Funding China’s Military Development?

Are U.S. Taxpayers Unintentionally Funding China's Military Development?

Digging Africa Deeper into Hunger; Annual Green Revolution Forum ignores widespread failure of its push for industrialized agriculture

Digging Africa Deeper into Hunger; Annual Green Revolution Forum ignores widespread failure of its push for industrialized agriculture

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Gen Z Makes use of TikTok Like Google, Upsetting the Outdated Web Order

Gen Z Makes use of TikTok Like Google, Upsetting the Outdated Web Order

July 29, 2022
‘Back to the Future’ Review: The DeLorean Crash Lands on Broadway

‘Back to the Future’ Review: The DeLorean Crash Lands on Broadway

August 4, 2023
Baseball conflicted in aftermath of Craig Counsell’s ‘managerial Hunger Games’

Baseball conflicted in aftermath of Craig Counsell’s ‘managerial Hunger Games’

November 8, 2023
Jill Roord: Manchester City complete British record signing of ex-Arsenal midfielder from Wolfsburg | Football News

Jill Roord: Manchester City complete British record signing of ex-Arsenal midfielder from Wolfsburg | Football News

July 6, 2023
NFL Draft 2025: Tennessee Titans choose Cam Ward with first choose as Travis Hunter heads to Jacksonville Jaguars | NFL Information

NFL Draft 2025: Tennessee Titans choose Cam Ward with first choose as Travis Hunter heads to Jacksonville Jaguars | NFL Information

April 25, 2025
Israel’s Mossad says helped Brazilian police foil alleged Hezbollah attack | Politics News

Israel’s Mossad says helped Brazilian police foil alleged Hezbollah attack | Politics News

November 9, 2023
Struct Finance’s customizable DeFi merchandise increase .9 million

Struct Finance’s customizable DeFi merchandise increase $3.9 million

March 22, 2022
North Korea sends 10,000 troops to struggle in Ukraine as Kim Jong-un’s determined pal Putin suffers 600,000 casualties

North Korea sends 10,000 troops to struggle in Ukraine as Kim Jong-un’s determined pal Putin suffers 600,000 casualties

October 28, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In