To amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill significantly expands the Low-Income Housing Tax Credit (LIHTC) program, the largest federal program for creating affordable rental housing. It increases tax credit allocations to states, makes it easier for developers to build affordable housing, and extends protections to vulnerable populations including domestic violence survivors and Native Americans. The bill renames the program to 'Affordable Housing Credit.'
Who Benefits and How
Affordable housing developers benefit from increased tax credit allocations (more than doubling the per-capita amount to $3.90), higher credit amounts for extremely low-income and rural projects (up to 50% credit boost), and reduced financing thresholds (25% vs 50% tax-exempt bond requirement). State housing agencies gain more flexibility in allocating credits. Native American communities and rural areas become newly eligible for enhanced credits as 'difficult development areas.' Low-income tenants, domestic violence survivors, veterans, and disabled individuals benefit from expanded eligibility and protections.
Who Bears the Burden and How
Taxpayers bear the cost of increased tax credit allocations to states. Existing LIHTC property owners face new restrictions on planned foreclosures and ownership transfer limitations. Housing credit agencies must implement new oversight requirements for development cost reasonableness.
Key Provisions
- Increases state per-capita housing credit allocation from $1.75 to $3.90, with further 25% increase in 2024
- Lowers tax-exempt bond financing requirement from 50% to 25% for credit eligibility
- Designates Indian areas and rural areas as 'difficult development areas' eligible for enhanced credits
- Adds protections for domestic violence survivors preventing lease termination based on abuser's criminal activity
- Provides 50% credit boost for projects serving extremely low-income households (30% AMI or poverty level)
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Expands and strengthens the Low-Income Housing Tax Credit (LIHTC) program by increasing state allocations, broadening eligibility, reducing regulatory barriers, and renaming it to the Affordable Housing Credit.
Key Policy Areas
Housing, Taxation, Community Development, Native American Affairs, Rural Development
Primary Purpose
Expands and strengthens the Low-Income Housing Tax Credit (LIHTC) program by increasing state allocations, broadening eligibility, reducing regulatory barriers, and renaming it to the Affordable Housing Credit.
Policy Domains
Title I - Allocations
Identified Gains
Contextual inference, no direct clause citation- Affordable housing developers
- State housing agencies
- Low-income renters
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal taxpayers
Contextual inference, no direct clause citation
Title V - Rural Housing
Identified Gains
Contextual inference, no direct clause citation- Rural housing developers
- Rural residents
Contextual inference, no direct clause citation
Title II - Tenant Eligibility and Targeting
Identified Gains
Contextual inference, no direct clause citation- Low-income tenants
- Domestic violence survivors
- Veterans
- Disabled persons
- Students
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Affordable housing property owners
Contextual inference, no direct clause citation
Title IV - Native American Housing
Identified Gains
Contextual inference, no direct clause citation- Native American tribes
- Tribal housing entities
- Native American residents
Contextual inference, no direct clause citation
Title VI - Recycling of Private Activity Bond Volume Cap
Identified Gains
Contextual inference, no direct clause citation- Housing finance agencies
- Multifamily housing developers
Contextual inference, no direct clause citation
Title III - Building Eligibility and Determination of Credit Amount
Identified Gains
Contextual inference, no direct clause citation- Affordable housing developers
- Extremely low-income households
- Disaster-affected property owners
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Housing credit agencies
- Property flippers
Contextual inference, no direct clause citation
Title VIII - Sense of Congress
Identified Gains
Contextual inference, no direct clause citation- Program oversight entities
- General public
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal agencies
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. LaHood (for himself, Ms. DelBene, Mr. Wenstrup, Mr. Beyer, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Affordable housing developers, Affordable housing developers doing rehabilitations, Affordable housing developers facing local opposition
Affordable housing developers faces effects in multiple directions
Positive-direction: Affordable housing developers doing rehabilitations, Affordable housing developers facing local opposition, Affordable housing developers in Indian areas, Affordable housing developers in community revitalization areas, Affordable housing developers in rural areas, Affordable housing developers investing in energy efficiency, Affordable housing developers serving extremely low-income households, Affordable housing developers serving veterans, Affordable housing developers using 4% LIHTC, Affordable housing developers using bond financing, Affordable housing developers using tax-exempt bonds, Affordable housing developers with disaster-damaged properties, Affordable housing property owners, Affordable housing property owners accepting vouchers
Negative-direction: Affordable housing property owners and managers, Legitimate affordable housing developers, Property flippers and speculative investors in LIHTC properties, Property owners seeking to exit LIHTC restrictions early
Domestic violence survivors seeking affordable housing, Extremely low-income households, Low-income students who are married, disabled, veterans, parents, or domestic violence survivors
Local governments opposing affordable housing projects (NIMBYs), Local housing credit agencies, State and local bond issuers
State housing credit agencies faces effects in multiple directions
Positive-direction: Local housing credit agencies, State and local bond issuers, State and local housing finance agencies issuing bonds, State housing finance agencies
Negative-direction: Local governments opposing affordable housing projects (NIMBYs)
Native American tribes and tribal housing entities
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "housing_credit_agency"
- → State Housing Credit Agency
Key Definitions
Terms defined in this bill
A test allowing projects to serve tenants with varying incomes as long as the average tenant income does not exceed 60% of area median income
Any Indian area as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 and any housing area as defined in section 801(5) of such Act
Any non-metropolitan area, or any rural area as defined by section 520 of the Housing Act of 1949, which is identified by the qualified allocation plan
Census tract with 50% or more households with income below 60% of area median gross income
Areas with high construction, land, and utility costs relative to area median gross income, now expanded to include Indian areas and rural areas
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology