On April 8, 2025, the Affordable Housing Credit Improvement Act (AHCIA) was reintroduced in the House with the support of over 100 bipartisan original co-sponsors. The Senate version of the bill is expected to be reintroduced in the coming weeks.
This vital legislation aims to bolster the financing and development of affordable housing across the nation by expanding and strengthening the Low-Income Housing Tax Credit (LIHTC). It is projected to finance nearly 1.6 million new affordable homes nationwide over the next decade. Since its inception, the LIHTC has built or restored more than 3.5 million affordable housing units, benefiting approximately 8 million American households and generating significant economic activity.
The AHCIA remains consistent with the previous Congress’s version, with no substantive changes. Key points of the AHCIA include:
- Increasing the number of credits allocated to each state by 50% for the next two years and making the temporary 12.5% increase secured in 2018 permanent.
- Increasing the number of affordable housing projects that can be built using private activity bonds, thereby stabilizing financing for workforce housing projects.
- Reducing the “50% test” to 25% for developments financed with tax-exempt bonds, unlocking more resources for affordable housing by lowering the bond volume required for 4% Housing Credit eligibility.
- Providing basis boosts for properties serving extremely low-income tenants, rural communities, Native American populations, and other historically underserved groups.
Read the full press release from the House AHCIA sponsors for more details.
The information contained in this article is for informative purposes only and should not be relied on when making any business, legal, or other decisions. This information may be updated without notice and/or may not contain the most current information that is available related to this topic.