What does Preamble of HR 537 do?

This bill, formally titled 'To amend the Internal Revenue Code of 1986 to provide tax credits for the conversion of commercial buildings to residential units, to provide support and technical assistance to State and local housing agencies to identify and advance housing conversion opportunities for underutilized commercial buildings, and for other purposes,' aims to address underutilized commercial buildings. The bill proposes to amend the Internal Revenue Code of 1986 to provide tax credits for converting commercial buildings into residential units. It also seeks to provide support and technical assistance to State and local housing agencies for identifying and advancing housing conversion opportunities.

What does SHORT TITLE. of HR 537 do?

This bill is formally titled the 'Incentivizing New Conversions to Residential Entities to Accelerate Supply and Expand Housing Affordability Act' or the 'INCREASE Housing Affordability Act'.

What does COMMERCIAL-TO-RESIDENTIAL CREDIT. of HR 537 do?

This section amends the Internal Revenue Code of 1986 to establish a 'commercial-to-residential credit'. The credit is equal to 15 percent of 'qualified conversion expenditures' with respect to a 'qualified converted building'. The credit is capped at $200,000 per new residential housing unit and $10,000,000 per qualified converted building. Bonus credits are available for buildings with a majority of rental units occupied by low-income individuals and for conversions meeting prevailing wage requirements. A 'qualified converted building' is a building initially placed in service at least 15 years prior to conversion, previously used for nonresidential purposes, and substantially converted to residential or mixed-use. The amendments also include conforming changes to sections 49, 50, and the table of sections for subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986. The changes apply to qualified conversion expenditures incurred after the date of enactment in taxable years ending after such date.

What does COMMERCIAL TO RESIDENTIAL CONVERSION ADVISORY BOARD. of HR 537 do?

This section establishes a Commercial to Residential Conversion Advisory Board within the Department of Housing and Urban Development. The Secretary of Housing and Urban Development must establish the board within one year of the Act's enactment. The board will have at least 20 members appointed by the Secretary. The board's duties include providing support and assistance to state and local housing agencies regarding commercial to residential conversions. Specific duties involve identifying suitable conversion candidates, conducting feasibility analyses, expediting regulatory processes, reforming zoning barriers, and identifying funding sources. The board is authorized to receive $5,000,000 annually from fiscal years 2025 through 2029 to carry out these duties.

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INCREASE Housing Affordability Act — HR. 537

Last updated: 3/5/2026 · Introduced: 1/16/2025

Author: Mikie Sherrill (D-NJ)

TL;DR (AI)

This bill establishes a new tax credit equal to 15% of qualified expenditures for converting commercial buildings into residential units, capped at $200,000 per unit and $10,000,000 per building, with bonus credits for low-income housing and prevailing wage projects.
The bill creates a Commercial to Residential Conversion Advisory Board within the Department of Housing and Urban Development to provide support and technical assistance to state and local housing agencies in identifying and advancing conversion opportunities.
The Advisory Board is authorized $5,000,000 annually from 2025 through 2029 to perform duties such as identifying suitable buildings, conducting feasibility analyses, and reforming zoning barriers.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 2 more.

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