Bipartisan bill would tackle rental housing shortage, lower costs for families

May 21, 2026 Press Release WASHINGTON – Ways and Means Committee members Linda T. Sánchez (D-Calif.), Claudia Tenney (R-N.Y.), Jimmy Panetta (D-Calif.) and Darin LaHood (R-Ill.) today introduced the Rental Housing Investment Act , a bipartisan bill that would modernize the tax code, lower construction costs and create stronger incentives to build affordable rental housing. “Southern California families are being priced out of their own communities,” said Congresswoman Sánchez. “Rents are climbing and there simply are not enough homes to meet demand. Our bill removes a real barrier to building more housing to give working families a shot at finding a home they can afford.” “Families across New York and across the country are struggling under the weight of rising housing costs and a severe shortage of available rental housing,” said Congresswoman Tenney. “The federal tax code should encourage the construction of more housing, not stand in the way. This bipartisan legislation takes a practical, market-driven approach to expanding housing supply, reducing development costs, and helping make housing more affordable for hardworking Americans.” “Although many people work in California’s 19th Congressional District, contributing so much to our economy and communities, many people can't afford to live in our district due to the lack of affordable rental housing,” said Congressman Panetta. “That’s why I’m joining my colleagues to introduce the bipartisan Rental Housing Investment Act as a way to incentivize the development of new multifamily rental housing with deductions for upfront costs, which often prevent contractors from getting projects off the ground. This type of bipartisan legislation is a way in which the federal government can play its part to ensure more affordable housing for working families in our communities.” “The shortage of affordable housing is a rural, urban, and suburban issue, impacting communities throughout central and northwestern Illinois,” said Congressman LaHood. “To address this growing crisis across the country, Congress must continue to advance legislation that drives investment into new affordable housing and expands housing options for hardworking Americans nationwide. I am proud to join my colleagues to introduce the bipartisan Rental Housing Investment Act to encourage the development of new affordable housing and lower costs for families.” The United States is facing a persistent shortage of rental housing, particularly multifamily apartments. Construction has not kept pace with population growth, driving up rents and deepening the affordability crisis. A key barrier to new construction is the high upfront costs for building rental housing. Under current tax law, developers must recover those costs over 27.5 years, making many otherwise viable projects financially difficult, especially in a high-interest-rate environment. The bill addresses this by modernizing cost recovery in the tax code and encouraging greater private investment in rental housing. The Rental Housing Investment Act would: Allow builders to immediately deduct up to $150,000 per unit in construction costs, rather than depreciating those costs over 27.5 years. Provide an enhanced deduction of up to $250,000 per unit for projects that include income-restricted units reserved for working families. Projects receiving the enhanced benefit would be required to maintain attainability commitments for at least 15 years. Apply only to newly constructed multifamily rental housing, ensuring the incentive creates new supply. Senator Lisa Blunt Rochester (D-Del.) previously introduced companion legislation in the Senate. ### Issues : Housing and Homelessness