Yesterday, members of the House Financial Services Committee, Representatives Mike Lawler (R-NY), Joyce Beatty (D-OH), and Young Kim (R-CA), introduced legislation to raise the public welfare investment cap from 15 to 20 percent (H.R.5913). This is a companion bill to the Senate version of the Community Investment and Prosperity Act (S.2464), led by Banking Committee Chairman Tim Scott (R-SC), Sen. Lisa Blunt Rochester (D-DE), Sen. Bernie Moreno (R-OH), and Sen. Andy Kim (D-NJ).
“Community investment is essential to revitalizing neighborhoods, expanding affordable housing, and supporting small businesses. By giving banks the flexibility to responsibly invest more in the communities they serve, this bill helps drive economic growth and improves quality of life, particularly in areas that need it most,” said Rep. Lawler (R-NY).
“Families across America are facing a housing crisis that demands creative, bipartisan solutions,” said Rep. Beatty (D-OH). “This commonsense legislation will free up capital for historic investments in affordable housing, small businesses, and community development, delivering results for hardworking families.”
“When we give our banks the tools they need to invest in our communities, Main Street wins. The Community Investment and Prosperity Act will help banks invest more in affordable housing and community development projects that create jobs and opportunity. I’m proud to join Rep. Lawler in leading this commonsense effort to strengthen our neighborhoods, empower community partners, and make the dream of homeownership more attainable for hardworking families,” said Rep. Kim (R-CA).
The proposal to raise the PWI cap has already been passed by the Senate as part of the ROAD to Housing Act (S.2651), comprehensive bipartisan housing legislation led by Banking Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA). This August, the ROAD to Housing Act was unanimously advanced by the Senate Banking Committee in its first markup of housing legislation in over a decade. The legislation was ultimately passed by the full Senate in October as an amendment to the National Defense Authorization Act (NDAA). The House is expected to consider the NDAA before the end of the year. The AHTCC recently 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.
A new fact sheet from the AHTCC explains how raising the PWI cap would increase banks’ capacity to invest in affordable housing and other community development priorities. According to a recent survey of 22 banks, representing more than $14 billion in 2024 Housing Credit investments, over 42 percent of these investments ($6.1 billion) came from banks approaching the current 15 percent cap. Expanding banks’ 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.
“Raising the PWI cap would help ensure the full potential of the recent historic Housing Credit expansion as part of One Big, Beautiful Bill,” said AHTCC CEO Emily Cadik. “Congress has already taken meaningful action to expand the Housing Credit, and lifting the PWI cap removes an outdated barrier to allow bank investors who would like to increase their investments in affordable housing to do so. We applaud Congressman Lawler for leading this effort to increase affordable housing supply at a time of staggering need.”
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