Affordable Housing Equity Act of 2025
Sponsored By: Representative Gomez
Introduced
Summary
Creates a bigger Low‑Income Housing Tax Credit for portions of projects that serve extremely low‑income households. The bill would raise the tax-credit basis to 150% for building units set aside for households earning no more than the greater of 30% of area median gross income (AMGI) or 100% of the Federal poverty line (FPL).
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- Families and residents: Extremely low‑income households could gain more housing targeted to their needs because projects that reserve at least 20% of units for them become eligible for a larger federal credit.
- Developers and investors: Projects that meet the 20% threshold would get a higher subsidy for the qualifying portion because the eligible basis for those units is increased to 150% of the usual basis, improving project feasibility.
- State and local housing credit agencies: Agencies must designate units as requiring the credit boost for feasibility in order to unlock the larger credit. The change applies to LIHTC allocations after enactment and to certain obligations issued after December 31, 2025.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More credit for very low-income rentals
If enacted, this bill would boost the Low-Income Housing Tax Credit for units reserved for very low-income renters. If at least 20% of a building’s units are set aside for households at or below the greater of 30% of area median income or 100% of the federal poverty line, owners could claim a larger credit. The eligible basis for that portion would be treated as 150%, which would raise the credit amount. The housing credit agency would need to find the extra credit is needed for the project to be financially feasible. The 20% set-aside would be measured using a 30% of area median income standard. It would apply to buildings getting new credit allocations after enactment; for bond-financed projects, only to issues dated after December 31, 2025. If passed, this could help create or preserve more deeply affordable rentals.
Sponsors & CoSponsors
Sponsor
Gomez
CA • D
Cosponsors
DelBene
WA • D
Sponsored 6/12/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov