Congress·In Committee·H.R. 2725

House Committee Targets Affordable Housing Shortage With $4.25 Per-Person Tax Credit Boost

Affordable Housing Credit Improvement Act of 2025

12 months ago·View on Congress.gov

Part of: Bipartisan Bill Proposes $2,000 Tax Credit for Family Caregivers Starting 2027

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

Key Points

The bill significantly increases the amount of tax credits states receive to build or renovate affordable apartments. In 2025, the funding amount per person would jump from $1.75 to $4.25. This change is designed to help developers build more homes for people who struggle to pay high market-rate rents.
From policy text
“For calendar year 2025, the per capita amount is $4.25.”
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It makes it easier for specific groups to live in these homes. For example, it allows full-time students who are veterans, former foster youth, or single parents to qualify for housing. It also ensures that victims of domestic violence cannot be turned away or evicted because of crimes committed against them by others.
From policy text
“``(I) prohibits the refusal to lease to, or termination of a lease by, a person solely on the basis of criminal activity directly relating to domestic violence, dating violence, sexual assault, or stalking that is engaged in by a member of the household of the tenant or any guest or other person under the control of the tenant, if the tenant or an affiliated individual of the tenant is the victim or threatened victim of such domestic violence, dating violence, sexual assault, or stalking,”
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The plan provides extra financial help for building in rural areas and on Native American tribal lands. By labeling these places as 'difficult development areas,' the government would give builders a 30% bonus in tax credits to make sure projects in these often-overlooked communities are actually profitable to build.
From policy text
“In the case of an area which is a difficult development area solely because it is an Indian area, a building shall not be treated as located in such area unless such building is assisted or financed under the Native American Housing Assistance and Self Determination Act of 1996”
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It changes a major rule about how projects are funded. Currently, projects must use 50% private activity bonds to get certain tax credits; this bill lowers that requirement to 25%. This makes it much easier for builders to combine different types of funding to get new apartment buildings started.
From policy text
“In the case of buildings financed by an obligation first taken into account under section 146 in calendar years beginning after the date of the enactment of the Affordable Housing Credit Improvement Act of 2025, the preceding sentence shall be applied by substituting `25 percent' for `50 percent'.”
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The bill stops local governments from blocking affordable housing projects just by refusing to give them a 'letter of support' or a local donation. This is meant to prevent local officials from stopping new construction in neighborhoods where some residents might not want low-income neighbors.
From policy text
“The selection criteria under a qualified allocation plan shall not include consideration of-- ``(i) any support or opposition with respect to the project from local or elected officials, or ``(ii) any local government contribution to the project, except to the extent such contribution is taken into account as part of a broader consideration of the project's ability to leverage outside funding sources, and is not prioritized over any other source of outside funding.”
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HousingTaxesCivil Rights

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Apr 8, 2025House

Referred to the House Committee on Ways and Means.

Apr 8, 2025

Introduced in House

Related News

3 articles

Politico·9 months ago

Senate Clears Trump Tax Package, Delivering Historic Win for Affordable Housing Developers

In a 51-50 vote, the Senate approved a massive tax and spending bill that permanently expands the LIHTC program. The legislation incorporates key elements of the Affordable Housing Credit Improvement Act, including basis boosts for rural and tribal communities to spur development.

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Affordable Housing Finance·12 months ago

AHCIA Reintroduced in the House with Record Bipartisan Support

Reps. LaHood and DelBene reintroduced the Affordable Housing Credit Improvement Act of 2025, seeking a 50% increase in credit allocations. The bill aims to finance 2 million new homes and includes protections for veterans, foster youth, and victims of domestic violence in affordable housing.

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New York Times·about 2 months ago

Congress Targets Housing Crisis as Solutions Elude Trump

As the nation grapples with a shortage of 5.5 million homes, lawmakers are pushing to fully implement the housing provisions of last year's reconciliation bill. The expansion of tax credits remains the primary federal tool for incentivizing developers to build units for low-income families.

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Related Bills

3 bills

H.R. 6900Related bill

American Affordability Act of 2025

Dec 18 — Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Workforce, and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

S. 1515Related bill

Affordable Housing Credit Improvement Act of 2025

Apr 29 — Read twice and referred to the Committee on Finance.

H.R. 3964Related bill

Affordable Housing Equity Act of 2025

Jun 12 — Referred to the House Committee on Ways and Means.