Congress Members Reintroduce Bipartisan Affordable Housing Credit Improvement Act

Representatives Darin LaHood (R-IL), Suzan DelBene (D-WA), Randy Feenstra (R-IA), Don Beyer (D-VA), Claudia Tenney (R-NY), and Jimmy Panetta (D-CA) introduced the “Affordable Housing Credit Improvement Act of 2025” (AHCIA) (H.R. 2725) this week which would expand and reform the Low-Income Housing Tax Credit (LIHTC). The bill garnered widespread support, introduced with over 100 bipartisan original cosponsors and has been endorsed by NLIHC. The Senate companion bill is expected to be introduced at the end of April.  

The AHCIA would increase the allocation of credits by 50% over two years, adjust rules to facilitate the production and preservation of more homes financed with tax-exempt bonds, and enact reforms to make LIHTC a better tool for development in underserved communities.  

The LIHTC program is the largest federal program designed to build and preserve affordable homes, supporting the construction or preservation of 4 million rental homes since the program’s creation in 1986. However, apartments built using LIHTC are still too expensive for extremely low-income renters, who make up nearly half of LIHTC property residents. If enacted, the AHCIA would reform the tax credit to provide additional incentives to developers to build homes affordable to extremely low-income households most impacted by the housing crisis, as well as underserved rural and Native American communities.  

If enacted with these key reforms, the bill would take important steps toward alleviating the growing rental housing affordability crisis by expanding and reforming the tax credit to better serve the nation’s lowest-income families – those with the greatest and clearest needs. 

Read Congressman LaHood’s press release here: https://bit.ly/3Yqvh34. 

Read the bill text at: https://bit.ly/4jskGgo. 

Read more about needed reforms to LIHTC here.