New survey finds that a substantial share of banks investing in the Housing Credit are nearing existing limits, suggesting ability of the proposal to boost affordable housing production
Even amid the ongoing government shutdown and extended House recess, the Senate recently advanced bipartisan legislation to raise the public welfare investment (PWI) cap from 15 to 20 percent. Building on this momentum, the AHTCC joined an ACTION Campaign steering committee letter calling for House Financial Services Committee leadership to include an increase in the PWI cap in any housing legislation the Committee considers this Congress. View the ACTION Campaign letter here.
The measure originated in the Senate as a bipartisan bill, the Community Investment and Prosperity Act (S.2464), led by Chairman Tim Scott (R-SC), Sen. Lisa Blunt Rochester (D-DE), Sen. Bernie Moreno (R-OH), and Sen. Andy Kim (D-NJ). The legislation has since been packaged with other housing proposals in the ROAD to Housing Act (S. 2651), a bipartisan package of comprehensive housing legislation, which was passed by the Senate as an amendment to the National Defense Authorization Act (NDAA) for FY 2026 (S.2296). The House is expected to consider the NDAA before the end of the year. However, it remains uncertain which, if any, of the ROAD to Housing provisions included in the Senate-passed version will be retained as the bill moves through conference or if the House will consider other housing legislation.
The AHTCC has also released a new fact sheet outlining how raising the PWI cap would expand banks’ capacity to invest in affordable housing and other community development priorities. Banks are key drivers of equity investment in affordable housing, representing a majority of the Housing Credit market. Expanding their capacity to invest in the Housing Credit could help sustain demand for the additional credits made available through the program’s historic expansion in the One Big, Beautiful Bill Act (H.R.1) earlier this year. Read more about the expansion in our blog post here.
The new fact sheet demonstrates the potential impact of raising the PWI cap with new results from a survey by the AHTCC, the Affordable Housing Investors Council (AHIC), and the National Association of Affordable Housing Lenders (NAAHL) showing that over 42 percent of Housing Credit investment in 2024 came from banks which are nearing the current 15 percent cap. Twenty-two banks responded to the survey, representing over $14 billion of investment in the Housing Credit in 2024 – nearly two-thirds of all bank investment in the Housing Credit.
As the government shutdown continues to shape the legislative environment, the AHTCC will continue to advocate for the inclusion of legislation to lift the PWI cap in any forthcoming housing package, whether as part of the NDAA or through a separate legislative vehicle.
View the ACTION letter here.
View the AHTCC PWI Factsheet here.
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