Affordable Housing Equity Act of 2025
Summary
What This Bill Does
The Affordable Housing Equity Act creates a new basis boost for low-income housing tax credit projects serving extremely low-income households. A building can qualify if at least 20 percent of residential units are designated for households whose aggregate income does not exceed the greater of 30 percent of area median gross income or 100 percent of the federal poverty line, and if the state housing credit agency determines the credit increase is needed for financial feasibility as part of a qualified low-income housing project. The amendment applies to buildings receiving housing credit allocations after enactment and, for certain bond-financed buildings, obligations issued after December 31, 2025. The purpose is to make deeply affordable units pencil out by increasing eligible tax-credit basis when projects commit a meaningful share of units to extremely low-income tenants.
Who Benefits and How
Extremely low-income tenants benefit if more LIHTC projects reserve units affordable at 30 percent of area median income or the poverty-line threshold. LIHTC developers benefit from a larger credit basis when state housing credit agencies determine the boost is needed for feasibility. State housing credit agencies benefit from a new tool to make deeply affordable projects financially feasible. Nonprofit affordable housing sponsors benefit if the basis boost closes financing gaps for projects serving the lowest-income renters.
Who Bears the Burden and How
Federal taxpayers bear the cost of larger low-income housing tax credits. State housing credit agencies must assess feasibility and designate qualifying buildings for the basis increase. Developers seeking the boost must commit at least 20 percent of units to the extremely low-income standard. Projects without qualifying unit designations cannot use the new basis increase.
Key Provisions
- Expands LIHTC basis for projects reserving at least 20 percent of units for extremely low-income households.
- Defines the income threshold as the greater of 30 percent of area median income or 100 percent of the federal poverty line.
- Requires state housing credit agency designation that the basis increase is necessary for financial feasibility.
- Applies to later credit allocations and qualifying bond-financed buildings after December 31, 2025.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Increases low-income housing tax credit basis for buildings where at least 20 percent of residential units are designated for households with income not above the greater of 30 percent of area median gross income or 100 percent of the federal poverty line, when the housing credit agency designates the increase as necessary for project feasibility, with application to later credit allocations and certain bond-financed buildings after December 31, 2025.
Key Policy Areas
Housing, Tax, Low-Income Housing
Primary Purpose
Increases low-income housing tax credit basis for buildings where at least 20 percent of residential units are designated for households with income not above the greater of 30 percent of area median gross income or 100 percent of the federal poverty line, when the housing credit agency designates the increase as necessary for project feasibility, with application to later credit allocations and certain bond-financed buildings after December 31, 2025.
Policy Domains
Resolution provisions
Identified Gains
- Extremely low-income tenants
- LIHTC developers
- State housing credit agencies
- Nonprofit affordable housing sponsors
Identified Costs
- Federal taxpayers
- State housing credit agencies
- Developers seeking the boost
- Nonqualifying housing projects
Sponsors
Legislative Progress
In CommitteeMr. Gomez (for himself and Ms. DelBene) introduced the following …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Developers seeking the boost, Extremely low-income tenants, LIHTC developers
Positive-direction: Extremely low-income tenants, Nonprofit affordable housing sponsors
Negative-direction: Developers seeking the boost, Nonqualifying housing projects
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
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