Affordable Housing Credit Improvement Act of 2025
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
The bill exempts extends the average income test from the Low-Income Housing Tax Credit (LIHTC) to tax-exempt private activity bonds for multifamily housing, allowing projects financed with exempt facility bonds to use averaged, defines codifies rules allowing low-income housing units to retain their designation even when tenant incomes rise above the initial eligibility threshold, up to 120% of area median income for acquired/rehabilitated, and exempts modifies student occupancy rules to allow certain categories of students to qualify for LIHTC housing, including veterans, persons with disabilities, victims of domestic violence, former foster youth. It relies on definition changes, exemptions, compliance mandates, and tax credits. The main policy areas are Finance, Housing, Native American Affairs, and Rural Development.
Who Benefits and How
State and local housing finance agencies issuing bonds could gain revenue opportunities, Federal government (taxpayers) could see lower costs, and Victims of domestic violence, dating violence, sexual assault, or stalking could face reduced risk.
Who Bears the Burden and How
Federal government (taxpayers) could face higher costs, Real estate speculators flipping LIHTC properties could lose revenue opportunities, and LIHTC property owners seeking to exit affordability restrictions early could face higher barriers.
Key Provisions
- Exempts extends the average income test from the Low-Income Housing Tax Credit (LIHTC) to tax-exempt private activity bonds for multifamily housing, allowing projects financed with exempt facility bonds to use averaged...
- Defines codifies rules allowing low-income housing units to retain their designation even when tenant incomes rise above the initial eligibility threshold, up to 120% of area median income for acquired/rehabilitated...
- Exempts modifies student occupancy rules to allow certain categories of students to qualify for LIHTC housing, including veterans, persons with disabilities, victims of domestic violence, former foster youth...
- Defines allows tenant-based housing vouchers (Section 8) to be counted as tenant-paid rent for purposes of income averaging projects, making it easier for voucher holders to access LIHTC properties.
- Requires LIHTC properties to prohibit eviction or lease denial based on domestic violence and allows victims to enforce these protections in state court.
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
The bill exempts extends the average income test from the Low-Income Housing Tax Credit (LIHTC) to tax-exempt private activity bonds for multifamily housing, allowing projects financed with exempt facility bonds to use averaged, defines codifies rules allowing low-income housing units to retain their designation even when tenant incomes rise above the initial eligibility threshold, up to 120% of area median income for acquired/rehabilitated, and exempts modifies student occupancy rules to allow certain categories of students to qualify for LIHTC housing, including veterans, persons with disabilities, victims of domestic violence, former foster youth.
Key Policy Areas
Finance, Housing, Native American Affairs, Rural Development
Primary Purpose
The bill exempts extends the average income test from the Low-Income Housing Tax Credit (LIHTC) to tax-exempt private activity bonds for multifamily housing, allowing projects financed with exempt facility bonds to use averaged, defines codifies rules allowing low-income housing units to retain their designation even when tenant incomes rise above the initial eligibility threshold, up to 120% of area median income for acquired/rehabilitated, and exempts modifies student occupancy rules to allow certain categories of students to qualify for LIHTC housing, including veterans, persons with disabilities, victims of domestic violence, former foster youth.
Policy Domains
Title I - Increases in State Allocations
Identified Gains
- State and local housing finance agencies issuing bonds
- Federal government (taxpayers)
- Victims of domestic violence, dating violence, sexual assault, or stalking
- Tenants with rising incomes in LIHTC housing
- Students with disabilities, domestic violence survivors, former foster youth
Identified Costs
- Federal government (taxpayers)
- Real estate speculators flipping LIHTC properties
- LIHTC property owners seeking to exit affordability restrictions early
- Local governments seeking to influence LIHTC placement
- Developers with inflated project costs
Sponsors
Legislative Progress
In CommitteeMr. Young (for himself, Ms. Cantwell, Mrs. Blackburn, Mr. Wyden, …
Read twice and referred to the Committee on Finance.
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Affordable housing developers accepting vouchers, Affordable housing developers doing rehabilitation projects, Affordable housing developers in localities with NIMBY opposition
Positive-direction: Affordable housing developers accepting vouchers, Affordable housing developers doing rehabilitation projects, Affordable housing developers in localities with NIMBY opposition, Affordable housing developers in rural areas, Affordable housing developers near colleges, Affordable housing developers targeting veteran populations, Affordable housing developers using bond financing, Affordable housing developers using tax-exempt bonds, Affordable housing owners in disaster-prone areas, Affordable housing property owners and developers, Developers building energy-efficient affordable housing, Developers building housing for extremely low-income households, Developers in community revitalization areas, Developers using tax-exempt bond financing for LIHTC projects, Long-term affordable housing developers, Real estate developers using tax-exempt bonds for affordable housing, Rural affordable housing developers, Tribal housing entities and developers
Negative-direction: Affordable housing property owners and managers, Developers with inflated project costs, LIHTC property owners seeking to exit affordability restrictions early, Non-tribal developers in Indian areas, Real estate speculators flipping LIHTC properties
Extremely low-income households (30% AMI or below), Low-income renters in high-opportunity areas, Low-income renters in rural communities
Federal government (taxpayers), Indian tribes and tribally designated housing entities, Local governments seeking to influence LIHTC placement
Federal government (taxpayers), State housing finance agencies face effects in multiple directions
Positive-direction: Indian tribes and tribally designated housing entities, Local housing finance agencies, State and local housing finance agencies issuing bonds, State housing finance agencies administering rural projects
Negative-direction: Local governments seeking to influence LIHTC placement
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "housing_credit_agency"
- → State housing credit agency
- "the_secretary"
- → Secretary of the Treasury
- "housing_credit_agency"
- → State housing credit agency
- "the_secretary"
- → Secretary of the Treasury
- "applicable_housing_credit_agency"
- → State housing credit agency
- "indian_tribal_government"
- → Indian tribal government or Alaska Native corporation
- "tribally_designated_housing_entity"
- → Tribally designated housing entity under NAHASDA
- "housing_credit_agency"
- → State housing credit agency
Key Definitions
Terms defined in this bill
A project meets average income requirements if it meets the minimum requirements specified in section 42(g)(1)(C), allowing projects to serve households at varying income levels averaging to the required threshold.
A casualty loss that is the result of a Federally declared disaster.
For 2025: ,876,000 minimum floor for small states; adjusted for inflation in subsequent years.
A census tract designated by HUD where the average income does not exceed a specified percentage of area median gross income.
For 2025: .25 per capita; for 2026: 1.25 times the 2025 amount adjusted for cost-of-living; after 2026: adjusted annually for inflation.
Any Indian area as defined in section 4(11) of the Native American Housing Assistance and Self Determination Act of 1996 (25 U.S.C. 4103(11)) 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.
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