Affordable Housing Credit Improvement Act of 2025
Sponsor
Darin LaHood
Republican · IL-16
Latest Action · Apr 8, 2025
Referred to the House Committee on Ways and Means.
Bill Progress
Congress Aims to Supercharge Affordable Housing Tax Credit
Why it matters
America’s housing crisis is squeezing millions, and this bill tries to boost affordable rentals fast.
The big picture: With record-high rents and a shortage of affordable apartments, lawmakers from both parties are racing to reform the main federal tool for building low-income housing: the Low-Income Housing Tax Credit. This bill would increase funding for states, make it easier for renters to qualify, and tweak rules so developers can build and maintain affordable apartments more easily.
Zoom in: The proposal notably boosts how many credits states can hand out, so more projects can break ground. It also gives more flexibility for families who earn slightly above poverty, recognizes housing vouchers as rent, and relaxes rules for students and certain tenants—all aiming to keep people housed and make projects more viable. For developers, the tweaks lower some barriers and fine-tune eligibility to drive more affordable units.
Between the lines: The plan’s wide bipartisan support (164 cosponsors so far) shows how housing is shaping up as a rare area of agreement in Congress. But the cost—and getting enough votes to offset lost tax revenue—may still slow things down, especially as lawmakers debate budget priorities.
What This Bill Does
Bigger State Housing Awards
Increases the amount of affordable housing tax credits each state can give out every year, so they can help fund more projects.
Flexible Income Rules
Lets more low-income families qualify, including those whose income rises a little above the poverty line after moving in.
Help for Renters with Vouchers
Counts housing vouchers (like Section 8) fully as rent, making it easier for voucher holders to live in tax credit apartments.
Looser Rules for Students
Eases restrictions on students living in affordable units, so certain students aren’t unfairly blocked from housing.
Tweaks to Developer Rules
Adjusts formulas and tests that decide which projects qualify, making it simpler for builders to create affordable apartments.
Who Benefits
Low-income renters
Gain access to more affordable apartments and keep their homes even if their income rises slightly.
States and local housing agencies
Get larger allocations, so they can support and approve more housing projects.
Developers and builders
Face fewer barriers and more incentives to build or preserve affordable rental housing.
Housing voucher holders
Have an easier time using their vouchers to rent in new or existing affordable apartments.
Who's Affected
Existing tenants in affordable projects
Benefit from stronger protections if their income goes up while they’re living in subsidized housing.
Students seeking apartments
May now qualify for affordable units under relaxed student rules.
Taxpayers
Foot the bill for expanded credits, which could reduce federal tax revenue.
Affordable housing organizations
Can pursue more projects and help more clients, but must navigate updated rules.
Cosponsors (164)
Suzan DelBene
Democrat · WA
Claudia Tenney
Republican · NY
Donald Beyer
Democrat · VA
Randy Feenstra
Republican · IA
Jimmy Panetta
Democrat · CA
Vern Buchanan
Republican · FL
John Larson
Democrat · CT
Mike Kelly
Republican · PA
Danny Davis
Democrat · IL
Ron Estes
Republican · KS
Linda Sánchez
Democrat · CA
Carol Miller
Republican · WV
Recent Actions
Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
What Changes in the Law
15 changes
Sections Amended
Section 42(g) of such Code
adding at the end the following new subparagraph: ``(F) Treatment of bifurcation in cases of domestic violence
Section 42(g) of Internal Revenue Code of 1986
striking ``or'' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ``, or'', and by adding at the end the following new subparagraph: ``(D) who are victims or threatened victims of criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking
Section 142(d) of Internal Revenue Code of 1986
adding at the end the following new subparagraph: ``(F) Clarification of general public use requirement
Section 42(c) of Internal Revenue Code of 1986
adding at the end the following new subparagraph: ``(F) Qualified basis following casualty loss
Section 42(e) of Internal Revenue Code of 1986
adding at the end the following new subparagraph: ``(C) Certain relocation costs
Section 42(m) of Internal Revenue Code of 1986
adding at the end the following new subparagraph: ``(E) Criteria for determination relating to concerted community revitalization plan
Committees (1)
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4 articles about this bill
New Bill: Representative Darin LaHood introduces H.R. 2725: Affordable Housing Credit Improvement Act of 2025
Affordable Housing Champions in the House Reintroduce ...
Max Brossy·Apr 8, 2025
The Affordable Housing Credit Improvement Act of 2025 | Enterprise Community Partners
Novogradac Analysis of Reintroduced AHCIA Estimates Nearly 1.6 Million Additional Affordable Housing Rental Homes Over 10 Years
Full Bill Text
Open in New TabFull Bill Text
View the complete legislative text on Congress.gov
Source: Congress.gov
