Staff report

Nine low-income Valley communities would be eligible for federal tax incentives under legislation seeking to build and preserve more than a half-million single-family homes in the United States.

The Neighborhood Homes Investment Act was reintroduced into the U.S. House last month by Reps. Mike Kelly (R-Pennsylvania) and John Larson (D-Connecticut). Rep. Mike Rulli, R-Salem, recently added his name as one of 34 current co-sponsors.

The bill targets communities that meet federal criteria regarding elevated poverty rates, low home values and median family incomes. Its sponsors say the legislation would close the “value gap” — the financial shortfall that makes it economically unfeasible to build or rehabilitate homes in these neighborhoods.

Communities eligible under the guidelines are Youngstown, Struthers, Campbell, Warren, Warren Township, Girard, McKinley Heights, Brookfield and Masury.

The legislation awards tax credits through statewide competitions administered by state housing finance agencies; permits sponsors to use the credits to raise capital for their projects, while investors would claim the credits against their federal income taxes; and allows the credits to be claimed after the constructed or rehabilitated homes are sold and occupied by lower or middle-income families.

“The Neighborhood Homes Investment Act will revitalize our neighborhoods, create good-paying jobs and boost local economic growth,” Rulli said Wednesday in a news release. “Expanding access to homeownership strengthens families and brings the American Dream within reach.”

The Neighborhood Homes Coalition, a national housing advocacy group, said the Kelly-Larson bill over a 10-year period would affect 500,000 homes and generate $125 billion in development and rehabilitation activity. It also projected that 861,000 jobs in construction and construction-related fields would be supported; generate $56 billion in wages and salary; and produce $26 billion in federal and $12 billion in state and local tax revenues and fees.

“This legislation has the potential to unlock development in long-overlooked neighborhoods, restore homeownership opportunities and spark economic renewal across our region,” said Guy Coviello, president and CEO of the Youngstown / Warren Regional Chamber. “We look forward to the transformative impact this bill can deliver for our families and our future.”

Nearly 73,000 Valley residents, or 17%, live at or below the poverty line, the news release states. The region’s median household income is $51,350.

The Valley’s economic, business and governmental partners have banded together to promote affordable homeownership. According to the 2025 Mahoning Valley Regional Housing Strategy, presented in January, the region faces a projected shortage of more than 63,000 owner- and renter-occupied one- and two-bedroom units by 2030.