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 reforms the Low-Income Housing Tax Credit (LIHTC) program, renaming it the 'Affordable Housing Credit.' It expands eligibility for the credit to rural areas and Native American tribal lands, increases credits for projects serving extremely low-income households, and adds protections for victims of domestic violence.
Who Benefits and How
Real estate developers and investors benefit from expanded tax credits, easier qualification for 'difficult development area' bonuses (30% more credits), and lower bond financing requirements (reduced from 50% to 25%). Rural communities and tribal nations gain access to housing development incentives previously limited to urban high-cost areas. Low-income tenants, including veterans, students, and domestic violence survivors, receive expanded protections and housing access.
Who Bears the Burden and How
State housing finance agencies face increased administrative responsibilities to evaluate project costs, determine community revitalization compliance, and enforce new tenant protection requirements. Local governments lose influence as the bill prohibits considering local official support/opposition in project selection.
Key Provisions
- Renames the credit to 'Affordable Housing Credit' and expands income eligibility rules
- Designates all rural areas and Indian areas as 'difficult development areas' eligible for 30% credit boost
- Reduces bond financing threshold from 50% to 25% for credit eligibility
- Adds mandatory protections for domestic violence victims in LIHTC properties
- Increases credits for projects with 20%+ units serving extremely low-income households
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
Reforms and expands the Low-Income Housing Tax Credit (LIHTC) program to increase affordable housing production, extend eligibility to rural and tribal areas, protect vulnerable tenants, and reduce regulatory barriers
Key Policy Areas
Housing, Taxation, Tribal Affairs, Rural Development
Primary Purpose
Reforms and expands the Low-Income Housing Tax Credit (LIHTC) program to increase affordable housing production, extend eligibility to rural and tribal areas, protect vulnerable tenants, and reduce regulatory barriers
Policy Domains
Title V - Rural Housing
Identified Gains
- Rural housing developers
- Rural communities
- Low-income rural residents
Title II - Average Income Test and Other Reforms
Identified Gains
- Affordable housing developers
- Low-income tenants
- Veterans
- Students
- Domestic violence survivors
Identified Costs
- State housing credit agencies
Title IV - Native American Housing
Identified Gains
- Native American tribes
- Tribal housing authorities
- Affordable housing developers in tribal areas
Title VI - Bond Financing
Identified Gains
- Municipal bond issuers
- Affordable housing developers
Title III - Credit Determination and Compliance
Identified Gains
- Real estate developers
- Affordable housing investors
- Property rehabilitation companies
Identified Costs
- State housing credit agencies
- Local governments
Title VII - Renaming
Identified Gains
- Affordable housing advocates
Title VIII - Sense of Congress
Identified Gains
- Housing affordability advocates
- Future affordable housing development
Identified Costs
- Local governments with restrictive zoning
Sponsors
Legislative Progress
IntroducedMs. Cantwell (for herself, Mr. Young, Mr. Wyden, and Mrs. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Affordable housing advocates and industry, Affordable housing developers, Affordable housing developers serving veterans
LIHTC property owners and managers faces effects in multiple directions
Positive-direction: Affordable housing advocates and industry, Affordable housing developers, Affordable housing developers serving veterans, Affordable housing developers using bond financing, Affordable housing developers using energy efficient design, Affordable housing developers using tax-exempt bonds, Affordable housing rehabilitation developers, Bond-financed affordable housing developers, Developers building for extremely low-income households, Developers building in Indian areas, Developers building in rural areas, Developers in community revitalization areas, LIHTC developers accepting voucher tenants, LIHTC investors and syndicators, LIHTC property owners affected by disasters, Rural affordable housing developers
Negative-direction: Affordable housing developers with high costs, LIHTC investors seeking early exit via foreclosure, LIHTC property buyers and syndicators, Property sellers seeking inflated prices
Federal government tax revenue, Local housing credit agencies, Native American tribes and housing authorities
Positive-direction: Federal government tax revenue, Local housing credit agencies, Native American tribes and housing authorities, State housing finance agencies, Tribal housing authorities
Negative-direction: State housing credit agencies
Extremely low-income households, Housing voucher recipients, Low-income rural residents
Domestic violence survivors in LIHTC housing, Domestic violence survivors in education, Former foster youth and homeless students
Municipal bond issuers for housing, Municipal bond issuers for housing projects
Veterans enrolled in higher education, Veterans seeking affordable housing
Rural communities, Rural residents seeking LIHTC housing
Native American households seeking housing, Native American tribal members
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of the Treasury
- "the_secretary"
- → Secretary of the Treasury
- "housing_credit_agency"
- → State Housing Finance Agency
- "indian_tribal_government"
- → Federally recognized tribal governments
Key Definitions
Terms defined in this bill
Any non-metropolitan area, or any rural area as defined by section 520 of the Housing Act of 1949, identified by the qualified allocation plan
Income eligibility test for LIHTC projects allowing average tenant income across units to meet requirements
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)
Areas designated by HUD where construction costs are high relative to income, qualifying for 30% credit increase; expanded to include rural areas and Indian 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