Affordable Housing Credit Improvement Act of 2025
Sponsored By: Senator Young, Todd [R-IN]
Introduced
Summary
This bill reforms the Affordable Housing Credit to change how states get credits, alter project financing rules, and add tenant protections. It combines formula changes, new developer rules, and targeted help for tribal and rural areas.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Tax and financing changes for developers
If enacted, the bill would cap acquisition basis for buyers of buildings last placed in service within ten years. The cap would equal the lowest price paid in the prior 10 years (inflation-adjusted) plus seller-reflected capital improvements. If enacted, a five-year non-ownership rule would limit which acquisitions qualify for placed-in-service treatment. If enacted, the notice period to end a compliance period after foreclosure would be 61 days, and the IRS or housing agency could block terminations tied to arrangements. If enacted, relocation payments tied to rehabilitation would count as rehabilitation expenditures for costs paid after December 31, 2024. If enacted, casualty losses would generally avoid credit recapture if the owner restores the building within an agency-set period, usually up to 25 months, with extensions for declared disasters. If enacted, the 179D basis-reduction rule would not cut eligible basis for certain allocations, and projects reserving at least 20% of units for extremely low-income households could get 150% eligible basis for that portion if the housing agency finds it needed for feasibility. If enacted, the bond-financed test would lower from 50% to 25% for certain obligations, and the housing-credit average-income test would apply to certain exempt facility bond projects.
Changes to state housing credit allocations
If enacted, the per-capita housing credit would be $4.25 for 2025 and the 2025 minimum state allocation would be $4,876,000. The 2026 amounts would equal 1.25 times the 2025 amounts adjusted by a cost-of-living increase, and later years would use annual COLA rules. If enacted, qualified allocation plans could expand Difficult Development Areas, raising the population cap to 30 percent and allowing Indian and rural area designations with protections for tribal projects. If enacted, the bill would remove the population cap on Qualified Census Tract designations after December 31, 2025. If enacted, housing agencies would need clearer criteria for community revitalization projects, must check cost reasonableness, and must consider tribal housing needs. Agencies could not base selection on local political support or prioritize local government money over other outside funding.
New tenant protections and voucher rules
If enacted, a unit would still count as low-income if the tenant's income later rises and the tenant's initial income was 60% of AMGI or less and the unit stays rent-restricted. For some units that first qualified under a special rule, the 60% test would be read as 80%, and certain rehabbed units would keep low-income status if initial income was not over 120% of AMGI at acquisition. If enacted, tenant-based rental vouchers would count as rent for certain projects for rent paid in taxable years starting after December 31, 2025. If enacted, owners could not deny or end a lease just because a tenant is a victim or threatened victim of domestic violence, sexual assault, dating violence, or stalking; leases signed or changed 30 days after enactment are covered. If enacted, a unit occupied only by full-time students under age 24 would not count as a low-income unit, but many exceptions apply. If enacted, veterans and qualifying victims would be explicitly treated as groups eligible for occupancy preference in housing programs.
Sponsors & CoSponsors
Sponsor
Young, Todd [R-IN]
IN • R
Cosponsors
Sen. Cantwell, Maria [D-WA]
WA • D
Sponsored 4/29/2025
Sen. Blackburn, Marsha [R-TN]
TN • R
Sponsored 4/29/2025
Sen. Wyden, Ron [D-OR]
OR • D
Sponsored 4/29/2025
Sen. Cassidy, Bill [R-LA]
LA • R
Sponsored 4/29/2025
Sen. Bennet, Michael F. [D-CO]
CO • D
Sponsored 4/29/2025
Sen. Tillis, Thomas [R-NC]
NC • R
Sponsored 4/29/2025
Sen. Warner, Mark R. [D-VA]
VA • D
Sponsored 4/29/2025
Sen. Marshall, Roger [R-KS]
KS • R
Sponsored 4/29/2025
Sen. Whitehouse, Sheldon [D-RI]
RI • D
Sponsored 4/29/2025
John Boozman
AR • R
Sponsored 4/29/2025
Sen. Hassan, Margaret Wood [D-NH]
NH • D
Sponsored 4/29/2025
Shelley Capito
WV • R
Sponsored 4/29/2025
Sen. Cortez Masto, Catherine [D-NV]
NV • D
Sponsored 4/29/2025
Sen. Cramer, Kevin [R-ND]
ND • R
Sponsored 4/29/2025
Sen. Smith, Tina [D-MN]
MN • D
Sponsored 4/29/2025
Sen. Collins, Susan M. [R-ME]
ME • R
Sponsored 4/29/2025
Sen. Luján, Ben Ray [D-NM]
NM • D
Sponsored 4/29/2025
Cindy Hyde-Smith
MS • R
Sponsored 4/29/2025
Raphael Warnock
GA • D
Sponsored 4/29/2025
Sen. Justice, James C. [R-WV]
WV • R
Sponsored 4/29/2025
Peter Welch
VT • D
Sponsored 4/29/2025
Sen. Moran, Jerry [R-KS]
KS • R
Sponsored 4/29/2025
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 4/29/2025
Sen. Murkowski, Lisa [R-AK]
AK • R
Sponsored 4/29/2025
Sen. Gillibrand, Kirsten E. [D-NY]
NY • D
Sponsored 4/29/2025
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 4/29/2025
Charles Schumer
NY • D
Sponsored 4/29/2025
Mike Rounds
SD • R
Sponsored 4/29/2025
Amy Klobuchar
MN • D
Sponsored 4/29/2025
Roger Wicker
MS • R
Sponsored 5/7/2025
Sen. Murray, Patty [D-WA]
WA • D
Sponsored 5/7/2025
Sen. Husted, Jon [R-OH]
OH • R
Sponsored 5/8/2025
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 5/8/2025
Dan Sullivan
AK • R
Sponsored 5/13/2025
John Hickenlooper
CO • D
Sponsored 5/13/2025
Sen. Budd, Ted [R-NC]
NC • R
Sponsored 5/14/2025
Sen. Fetterman, John [D-PA]
PA • D
Sponsored 5/14/2025
Sen. McCormick, David [R-PA]
PA • R
Sponsored 5/22/2025
Sen. Kaine, Tim [D-VA]
VA • D
Sponsored 5/22/2025
John Hoeven
ND • R
Sponsored 6/10/2025
Sen. Rosen, Jacky [D-NV]
NV • D
Sponsored 6/10/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov