The Affordable Housing Tax Credit Coalition The Affordable Housing Tax Credit Coalition
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  • HOUSING CREDIT
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    • Recognition of Housing Tax Credit Excellence
    • Affordable Housing Champion Award
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  • NEWS
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The Affordable Housing Tax Credit Coalition The Affordable Housing Tax Credit Coalition
  • ABOUT
    • About the AHTCC
    • AHTCC Leadership
      • Board of Directors
      • Leadership Circle
      • Staff
    • AHTCC Members
    • Contact Us
  • HOUSING CREDIT
    • About the Housing Credit
    • How It Works
    • Research
      • Rent Savings Report
    • Impact
      • Native Americans
      • Veterans
    • Resident Stories
    • Finding Housing
  • ADVOCACY
    • Advocate Today
    • AHCIA
    • State Tax Credits
    • Regulatory Issues
    • AHTCC Priorities
  • GALLERY
  • EVENTS
  • AWARDS
    • Recognition of Housing Tax Credit Excellence
    • Affordable Housing Champion Award
    • David Reznick Lifetime Achievement Award
  • NEWS
  • JOIN

Affordable Housing Credit Improvement Act
(AHCIA) of 2025

2.4 million jobs

would be supported

$271 billion

in wages and business income would be provided

$94 billion

in tax revenue would be generated

AHCIA OVERVIEW
Cosponsors
ADVOCATE TODAY

Broadly-Supported, Bipartisan Legislation

The bipartisan Affordable Housing Credit Improvement Act (AHCIA, H.R. 2725, S.1515) is comprehensive legislation to expand and strengthen the Low-Income Housing Tax Credit (Housing Credit), our nation’s primary tool for financing affordable rental housing in rural, suburban, and urban communities alike. A successful public-private partnership, the Housing Credit has financed 4 million affordable homes since 1986, serving 9.28 million low-income households, including families, veterans, seniors, people with disabilities, and people who were formerly homeless, and the AHCIA would produce or preserve nearly 1.6 million additional affordable homes over the next 10 years.

Since it was first introduced in 2016, the AHCIA has gained strong, bipartisan support. The AHCIA of 2025 had over 100 original cosponsors (59 Republican and 58 Democratic), representing over 30 states and over a quarter of the House of Representatives, and 30 original cosponsors representing 25 states upon reintroduction in the Seante. In the 118th Congress, the AHCIA was cosponsored by well over half of Congress.

Lead Sponsors of AHCIA of 2025

The Senate AHCIA of 2025 is led by Senators Todd Young (R-IN), Maria Cantwell (D-WA), Marsha Blackburn (R-TN), and Senate Finance Committee Ranking Member Ron Wyden (D-OR).

The House AHCIA of 2025 is led by Representatives Darin LaHood (R-IL), Suzan DelBene (D-WA), Claudia Tenney (R-NY), Don Beyer (D-VA), Randy Feenstra (R-IA), and Jimmy Panetta (D-CA), along with over 100 original bipartisan cosponsors.

Legislation to Strengthen What’s Working

Through successful public-private partnerships, the Housing Credit offers a proven track record of financing 4 million safe, decent, affordable homes in rural, suburban, and urban areas, serving 9.28 million households since 1986. Residents are families with children, seniors, veterans, people with disabilities, and low-wage workers. These homes provide residents with meaningful rent savings compared to market-rate homes which can be redirected toward other essential household needs, such as health care, groceries, transportation, and childcare.

The AHCIA of 2025 builds on prior versions of the AHCIA that have earned widespread bipartisan support since first introduced in 2016. Several key pieces of this legislation have been enacted, including a temporary 12.5 percent Housing Credit allocation increase in 2018 under the first Trump Administration and allowed to expire at the end of 2021. However, the key provisions that would have the greatest impact on affordable housing production are still in critical need of enactment.

The Tax Relief for American Families and Workers Act of 2024 (H.R. 7024) included two Housing Credit provisions derived from the AHCIA to restore the 12.5 percent allocation increase that expired in 2021 and reduce the private activity bond threshold requirement from 50 to 30 percent. The legislation passed in the House of Representatives with overwhelming bipartisan support in February 2024 but failed to advance in the Senate. Read more here.

The AHCIA includes provisions to:

Increase affordable housing production and preservation

  • Restore the 12.5 percent cut to the Housing Credit allocation and further increase the annual Housing Credit allocation by 50 percent over current levels, phased in over 2 years
  • Expand access to Housing Credits and more efficiently use Private Activity Bond financing by reducing the bond-financing threshold from 50 percent to 25 percent

Better serve hard-to-reach areas and populations

  • Make more developments serving extremely low-income and formerly homeless tenants financially feasible
  • Support Housing Credit developments for veterans
  • Encourage developments in rural and Native American communities
  • Facilitate the revitalization of higher-poverty communities and the development of more properties in high-opportunity areas

Remove barriers to affordable housing preservation

  • Facilitate safe tenant relocation during the rehabilitation of Housing Credit properties
  • Ensure properties are given enough time to rebuild after a casualty loss
  • Allow flexibility for existing tenants’ income recertifications when refinancing properties

Streamline program rules and promote efficiency

  • Prohibit local approval requirements that can prevent developments from moving forward due to Not in My Backyard (NIMBY) opposition
  • Clarify that states can determine the definition of a community revitalization plan
  • Better align Housing Credit rules with the Violence Against Women Act
  • Ensure that rules designed to prevent college students from living in Housing Credit properties do not unfairly penalize residents seeking to further their education
  • Add cost reasonableness as a Qualified Allocation Plan selection criteria

The AHCIA includes additional provisions that would further strengthen the Housing Credit. For more information, read the details of the AHCIA of 2025 and the differences between the AHCIA of 2023 and 2025.

RESOURCES

AHCIA RESOURCES

Summary
Impact
Details
New/Updated Provisions
Bill Text (H.R. 2725, S.1515)

AHCIA COSPONSORS

House and Senate Cosponsors

ADDITIONAL RESOURCES

About the Housing Credit

The Urgent Need to Invest in the Housing Credit

Beyond Housing: The Housing Credit and Health

Resident Stories

ADVOCATE FOR THE AHCIA

Virtually all new affordable housing utilizes the Housing Credit – now is the time to expand and strengthen the program to provide more affordable homes. Advocate today.

The Affordable Housing Tax Credit Coalition is a trade organization of housing professionals who advocate in support of the Low-Income Housing Tax Credit

LATEST NEWS FROM AHTCC

  • Housing Credit Priorities Advance Through the House Ways and Means Committee
  • Affordable Housing Credit Improvement Act Reintroduced in the Senate with 30 Bipartisan Original Cosponsors

CONTACT

630 Eye Street NW
Washington, DC 20001
202-935-0977
info@taxcreditcoalition.org

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