Today, the House Financial Services Committee (HFSC) completed a two-day markup, during which it approved the Housing for the 21st Century Act (H.R. 6644). This bipartisan package of housing bills includes the Community Investment and Prosperity Act (S. 2464/H.R. 5913), an AHTCC-backed proposal to raise the public welfare investment (PWI) cap from 15 to 20 percent. The HFSC approved the housing package by a vote of 50-1. Rep. Ralph Norman (R-SC) was the sole vote against advancing the bill.
During today’s markup, several Committee members expressed support for the PWI cap increase. HFSC Chairman French Hill (R-AR) highlighted the PWI cap increase as a key component of the broader housing package, noting that it would mobilize billions in private-sector investment for housing construction. Ranking Member Maxine Waters (D-CA) highlighted its potential to generate billions in new private housing capital annually. Rep. Joyce Beatty (D-OH) underscored the bipartisan nature of the Community Investment and Prosperity Act, thanking Chairman Hill and Ranking Member Waters for working to include the provision and emphasizing that the PWI cap increase would free up capital for affordable housing, small businesses, and local economic development. Rep. Warren Davidson (R-OH) similarly welcomed the provision, describing it as a market-oriented reform that enables banks to deploy private capital directly toward public welfare housing investments.
The AHTCC has been actively engaged in advocacy efforts supporting the PWI cap increase proposal, which would expand private capital available for affordable housing by increasing banks’ capacity to invest in the Housing Credit. In our recent survey of 22 banks, representing more than $14 billion in 2024 Housing Credit investments, over 42 percent of the represented 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. The AHTCC has also developed a fact sheet outlining how the PWI cap increase would impact affordable housing production.
The Community Investment and Prosperity Act (S. 2464/H.R. 5913) is led by Sens. Scott (R-SC), Blunt-Rochester (D-DE), Moreno (R-OH), and Kim (D-NJ) in the Senate and Reps. Lawler (R-NY), Beatty (D-OH), and Kim (D-NJ) in the House. Prior to the HFSC markup, the measure was passed by the Senate as part of the bipartisan ROAD to Housing Act (S. 2651), a bipartisan package of housing bills led by Senate Banking Committee Chairman Tim Scott (R-SC) and Ranking Member Elizabeth Warren (D-MA). The ROAD to Housing Act was first approved by the Senate Banking Committee during its first housing markup in over a decade before being attached to the FY26 National Defense Authorization Act (NDAA). While no provisions of the ROAD to Housing Act ultimately remained on the final version of the NDAA, several of its elements are in the Housing for the 21st Century Act (H.R. 6644). The initial draft of the HFSC’s housing package did not include the PWI cap increase proposal, but it was added in to the manager’s amendment following outreach from industry advocates, including the AHTCC.
While there is no immediate path forward for housing legislation, Chairman Hill has expressed a desire to work with his Senate counterparts to pass bipartisan housing legislation in the new year. Competing priorities, including the need to pass government funding legislation before the end of January, as well as election year politics, could complicate its prospects. However, this week’s markup makes clear that there are a number of housing proposals with bipartisan, bicameral support, and that there is momentum for Congress to take action on housing. Having now been approved by both the HFSC and the full Senate, the proposal to raise the PWI cap is well-positioned for inclusion in any housing package.
The Housing for the 21st Century Act shares several areas of overlap with the ROAD to Housing Act, with both bills seeking to modernize and strengthen affordable housing programs, though they differ in their approaches to many of the proposed changes. Notably, the Housing for the 21st Century Act does not incorporate several provisions that appear in the Senate ROAD to Housing Act, including removal of the RAD cap and Opportunity Zone–based grant prioritization.
“Raising the PWI cap will free additional private sector investment to support affordable housing development using the Housing Credit, the nation’s most successful tool for producing affordable rental housing,” said AHTCC Chief Executive Officer Emily Cadik. “We applaud Chairman Hill, Ranking Member Waters, and Representatives Lawler, Beatty, and Kim for working to pass a vital provision that will directly contribute to increasing our affordable housing supply. As the nation’s affordable housing crisis continues to impact American families and communities, we urge the House of Representatives to consider this legislation for immediate passage.”
“The Housing Credit accounts for roughly 80 percent of national bank public welfare investments, and there are a significant number of banks limited in their ability to invest in the Housing Credit because of the PWI cap,” said Dudley Benoit, President of the AHTCC Board of Directors and Senior Managing Director at Walker & Dunlop. “The PWI cap increase would serve as a welcome boost, allowing banks to more effectively leverage the Housing Credit and increase their investments in affordable housing nationwide.”
Key Elements of the Housing for the 21st Century Act (H.R. 6644):
· Includes the Community Investment and Prosperity Act (S. 2464/H.R. 5913), which raises the cap on banks’ public welfare investments (like affordable housing) from 15% to 20%.
· Incorporates targeted reforms to the HOME Investment Partnerships Program, including modernizing and expanding HOME’s flexibility, and providing exemptions on Build America, Buy America requirements for HOME funds. During the markup, an amendment to this section offered by Rep. Beatty (D-OH) passed, which incorporates elements of the HOME Investment Partnerships Reauthorization and Improvement Act (H.R. 2031).
· Includes elements of the Housing Supply Frameworks Act (H.R. 2840 / S. 1299), directing HUD to promote state and local zoning and land-use best practices.
· Includes NEPA and HUD environmental review streamlining provisions, reducing delays for small, infill, and HUD-assisted housing projects.
See the Housing for the 21st Century legislative text here and the legislative text of the manager’s amendment, containing the PWI cap increase proposal, here.
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