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119-s-5625119th CongressWALLET

Affordable Housing Construction Act

Sponsored By: Senator Whitehouse, Sheldon [D-RI]

Introduced

Summary

Boosts the Low‑Income Housing Tax Credit to drive more affordable construction and upgrades. It raises state credit limits and layers big credit bonuses for projects that pay prevailing wages, use renewables, sit near transit, include accessible units, or serve extremely low‑income households.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Higher cap for housing credits

If enacted, States would use larger baseline amounts when calculating their Low-Income Housing Tax Credit ceiling. The bill would change $1.75 to $9.79 and $2,000,000 to $11,340,000 for calendar years starting after December 31, 2026. These are calculation rules that would let States allocate more credits to affordable housing projects. Any actual new housing would depend on later State allocations and project approvals.

Bigger credits for priority projects

If enacted, the bill would let housing agencies raise eligible LIHTC basis for qualifying projects. The increases would include: 50% for prevailing-wage projects, 50% for projects reserving at least 20% of units for extremely low-income households (≤30% AMGI), 25% for projects near public transit, and renewable-energy boosts up to 50% of the building's renewable share. Accessibility increases would count low-income units above a 5% baseline, capped at 50 percentage points. Combined boosts could not exceed 250% of the original basis. The bill would also require States to reserve at least one-third of their annual credit ceiling for these prioritized projects.

Bond, timing, and affordability rules

If enacted, the bill would change several LIHTC bond and timing rules. It would lower a bond-financing test from 25% to 15% and treat “qualified obligations” as limited to bond issues dated before January 1, 2028 (applies to buildings placed in service for taxable years after December 31, 2025). The bill would extend some affordability agreements from 15 years to 35 years for agreements entered into after enactment. It would also set timing rules for rehabilitation projects treated as separate new buildings and change how some qualified-contract values are calculated, requiring agencies to value low-income and market portions separately.

Sponsors & CoSponsors

Sponsor

Whitehouse, Sheldon [D-RI]

RI • D

Cosponsors

  • Sen. Reed, Jack [D-RI]

    RI • D

    Sponsored 9/30/2026

Roll Call Votes

No roll call votes available for this bill.

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