Affordable housing champions in the Senate reintroduced the Affordable Housing Credit Improvement Act of 2025 (AHCIA, S. 1515) today to strengthen and expand the Low-Income Housing Tax Credit (Housing Credit). This bipartisan legislation is sponsored by Senators Todd Young (R-IN), Maria Cantwell (D-WA), Marsha Blackburn (R-TN), and Ron Wyden (D-OR). The Senate bill was introduced with 30 bipartisan original cosponsors, including leads, split evenly by party. An identical House version (H.R. 2725) was reintroduced earlier this month by Reps. Darin LaHood (R-IL-16), Suzan DelBene (D-WA-01), Claudia Tenney (R-NY-24), Don Beyer (D-VA-08), Randy Feenstra (R-IA-04), and Jimmy Panetta (D-CA-19), and now has 131 cosponsors, including leads, split evenly by party – or 30 percent of the House.
In the last Congress, the AHCIA (S. 1557 / H.R. 3238) achieved record-breaking support. Across both chambers, the AHCIA had 309 cosponsors, or nearly 60 percent of Congress, the most backing the bill has received in any Congress thus far. The AHCIA also achieved the most support of tax-writers since it was first introduced: 61 percent of the Senate Finance Committee and 80 percent of the House Ways and Means Committee. In the House, it was by far the most-cosponsored tax bill introduced in the 118th Congress. The ACTION Campaign is looking to build on that success in this Congress.
The 2024 elections marked the first campaign season that housing affordability was a key priority for candidates on both sides, including both presidential candidates. Clearly, Republican and Democratic candidates across the country recognize the importance of the housing shortage and the impacts it has been having on so many Americans.
Since Republicans achieved a trifecta in the election, controlling the House, Senate, and Presidency, they will be using a process called budget reconciliation to expedite tax legislation this year, in order to extend expiring provisions from the Tax Cuts and Jobs Act of 2017. The strong showing of support is particularly important as it signals support for the inclusion of Housing Credit resources in 2025’s major tax bill, on which congressional tax-writers are currently working. Given this once-in-a-decade opportunity, ACTION strongly urges Congress to include eligible provisions from the AHCIA in the tax package this year.
The ACTION Campaign provided the following statement for the AHCIA Senate leads’ press release:
“The reintroduction of the Affordable Housing Credit Improvement Act is a vital step toward addressing our nation’s housing crisis. Expanding the Housing Credit is the most effective way to increase the supply of affordable housing, leveraging public-private partnerships to build and preserve homes for working families, seniors, and vulnerable communities. At a time when rents are rising and supply is lagging, strengthening the Housing Credit will ensure that more Americans have access to safe, stable, and affordable housing,” said Ayrianne Parks and Jennifer Schwartz, co-chairs of the ACTION Campaign. “The ACTION Campaign thanks Senators Todd Young, Maria Cantwell, Marsha Blackburn, and Ron Wyden for their leadership.”
The AHCIA of 2025 includes the same key financing provisions from the previous measure: a 50 percent increase in Housing Credit allocations, phased in evenly over two years; a lowering of the Private Activity Bond financing threshold (the so-called “50 percent test”) down to 25 percent; and basis boosts for rural developments, Tribal communities, and extremely low-income tenants (people earning 30 percent or less than the area median income), as well as a state-discretionary boost to make certain bond-financed projects financially feasible. These provisions would finance nearly 1.6 million new affordable homes nationwide over the next ten years.
The AHCIA also includes a number of other important provisions that would help preserve existing affordable housing and improve program implementation, including improving access for veterans, victims of human trafficking and domestic violence, and students.
For more information on the bill, please see the following resources:
Visit ACTION’s website for more information about our efforts to expand, strengthen, and protect the Housing Credit.
Local Government Leaders’ Letter in Support of Housing Credit
ACTION is organizing a local government leaders’ letter to Congress in support of the Housing Credit and the AHCIA. Please reach out to your mayors, county board chairs, county executives, and equivalent elected officials from local governments to urge them to sign on by Tuesday, May 6, at 5pm ET. In 2023, 184 local leaders signed a similar letter, so if your local elected leader signed that one, be sure to remind them. ACTION thanks its partners in this effort, the National League of Cities, the National Association of Counties, and Mayors & CEOs for U.S. Housing Investment.
Organizational Sign-On Letter in Support of Housing Credit
ACTION will be sending an organizational sign-on letter from our grassroots members to Congress in support of the AHCIA and urging Congress to enact Housing Credit priorities in the tax package currently being negotiated. The deadline for organizations to sign the letter is close of business on Friday, May 2.
Become an ACTION Campaign Member
To demonstrate the widespread support for the AHCIA and the Housing Credit program to Members of Congress, the ACTION Campaign is working hard to grow and expand our grassroots coalition.
As a reminder, ACTION Campaign membership is free. Through our newsletters and advocacy alerts, we update our members with the latest developments on advancing legislation that would strengthen and expand the Housing Credit. ACTION members also gain access to custom advocacy support materials, such as state- or district-specific fact sheets, talking points, and more, to support outreach to Members of Congress.
The power of the ACTION Campaign is our numbers. More than 2,400 national, state, and local organizations and businesses have already joined to address the country’s severe shortage of affordable rental housing by strengthening, expanding, and protecting the Housing Credit.
If you are not a member of our coalition yet, join here. If you are already a member, please help us continue to grow by sharing the news of our membership drive with your networks. Thanks for your support!
