Reps. Darin LaHood and Suzan DelBene have introduced the bipartisan Affordable Housing Credit Improvement Act of 2025, which seeks to improve the Low-Income Housing Tax Credit (LIHTC) program and finance over 2 million affordable rental homes over the next decade. Key provisions include increasing 9% LIHTC allocations, lowering the bond “financed by” threshold, and expanding access to credits for rural and Native American communities.
As reported by NAHB, the Affordable Housing Credit Improvement Act would:
- Increase 9% LITHC allocations, which are generally reserved for new construction, by 50%.
- Prohibit states from requiring special approvals that treat affordable rental housing differently from any other multifamily project.
- Makes historic tax credit projects in rural and Native American areas eligible for an increased credit from the current 20% to 30%.
- Lower the 50% “financed by” threshold to 25% for private activity bonds to enable more bond deals. Private activity bonds are tax-exempt bonds issued on behalf of a state or local government to provide special financing benefits for qualified projects.
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