Legislative State-of-Play
Senate Banking Committee to Mark Up Housing Package
Following the largest expansion of the Housing Credit in two decades, enacted just a few weeks ago in the One Big Beautiful Bill Act, the Senate Banking, Housing, and Urban Affairs Committee released sweeping bipartisan housing legislation called the Renewing Opportunity in the American Dream (ROAD) to Housing Act containing several provisions impacting the Housing Credit and related programs. A markup is scheduled for tomorrow, July 29.
One major proposal included within the ROAD to Housing Act is the Community Investment and Prosperity Act, introduced by Chairman Tim Scott (R-SC), along with Senators Lisa Blunt Rochester (D-DE), Bernie Moreno (R-OH), and Andy Kim (D-NJ). Notably for Housing Credit stakeholders, the measure would raise the cap on bank investments in public welfare activities—from 15% to 20% of assets—helping unlock additional capital for Housing Credit investments at a time when many banks have already hit their current cap. Senators Cramer (R-ND), Alsobrooks (D-MD), McCormick (R-PA), and Warnock (D-GA) also joined as original cosponsors.
The bill also includes provisions from several other bipartisan housing bills, including:
- Permanent authorization of the HOME Investment Partnerships (HOME) program, along with greater flexibility for jurisdictions, streamlined inspection requirements, and expanded nonprofit eligibility. (See more information on HOME appropriations in the next section of the newsletter.)
- Elimination of the Rental Assistance Demonstration (RAD) cap, making the program permanent and implementing programmatic reforms.
- Zoning and land use provisions from the Housing Supply Frameworks Act (R. 2840 / S. 1299), directing HUD to publish best practices for localities to expand housing supply at all income levels.
- Streamlining NEPA environmental reviews for small and infill housing projects.
- Expanded HUD grant prioritization for projects located in Opportunity Zones.
- Rural housing support, including improved coordination between USDA and HUD on inspections and environmental reviews.
- Voucher program improvements, such as allowing units financed through federal housing programs to automatically satisfy voucher inspection requirements if recently inspected, and permitting pre-inspections for new landlords to improve voucher acceptance.
ACTION Sends Letter to Senate Committee Calling for Fix to HOME Funding
On July 17, the House Appropriations Committee passed a spending bill for federal Fiscal Year 2026 (FY26) that proposed to eliminate funding for HOME, a critical source of gap financing for the Housing Credit. While the full House has yet to pass this bill, this development has been concerning. Some 15-20% of all Housing Credit units each year rely on HOME for gap financing, which a July 16 House Financial Services Subcommittee on Housing hearing underscored repeatedly. Because of these concerns, ACTION took a rare step, sending a letter to the leaders of the Senate Appropriations Committee and its Transportation, Housing, and Urban Development (THUD) Subcommittee urging them to correct this misstep by the House Appropriations Committee. The proposed zeroing-out of HOME funding would certainly jeopardize the significant expansion of the Housing Credit that was recently achieved by the passage of the budget reconciliation bill.
However, on July 24, the Senate Appropriations Committee passed its own FY26 THUD bill that would level-fund HOME at $1.25 billion. This is a most welcome development. The rest of the Senate’s FY26 THUD bill would also generally provide better funding amounts for other affordable housing programs than the House’s would. Often, the Senate’s annual spending proposals are closer to what gets signed into law than the House’s. ACTION continues to urge Congress to keep HOME funded at the Senate’s proposed level as spending negotiations continue.
Take Advantage of the ACTION In-District Advocacy Guide During August Recess
The annual August Recess for Congress is upon us. It is the biggest break of the year, and your Senators and Representatives will be home, touring various projects and meeting locally with constituents, providing a perfect opportunity to get lawmakers out to see the Housing Credit in action.
To help stakeholders take advantage of the recess, ACTION has updated its in-district advocacy guide, detailing steps advocates can take to build support for the Housing Credit during the recess — everything from a quick post on social media if you have only a few minutes to an op-ed if you have an hour or two.
If you have a little more time, we especially encourage ACTION members to contact your Members of Congress’ offices ASAP and invite them to groundbreakings, ribbon cuttings, or site visits. If you need assistance with invitations or planning tips in the meantime, please reach out to actioncampaign@enterprisecommunity.org.
July AHCIA Cosponsorship Update
Are we still building cosponsorship after the tax reconciliation bill was enacted with AHCIA provisions? YES! And we need your help to leverage the momentum from the reconciliation votes to keep adding Republicans to the bill. This is important should there be additional opportunities to advance a tax package in the remainder of this Congress and to build an even stronger foundation of support for the next Congress.
The AHCIA currently has over 37 percent of Congress cosponsoring, with support evenly divided by Republicans and Democrats. In the House, there were two new cosponsors this past month, bringing the total number of cosponsors there to 157.
- Derek Tran (D-CA-45)
- Mark Messmer (R-IN-08)
Administration Updates
Banking Regulators Begin Process of Rescinding 2023 CRA Rule
As expected, federal banking regulators took initial steps to formally rescind the 2023 final rule for the Community Reinvestment Act (CRA) on July 16. The prior CRA rule, implemented in 1995, will remain in effect indefinitely.
The CRA, enacted in 1977, is intended to incentivize banks to meet the credit needs of the communities in which they operate, including low- and moderate-income communities that had suffered disinvestment in the decades leading to the enactment of the CRA. The CRA helps stimulate investment in the Housing Credit by allowing banks to get CRA credit for their equity investments in these properties. Approximately 85 percent of Housing Credit investment is CRA-motivated. For more background on the 2023 rule and efforts to modernize CRA, read ACTION’s November 2023 newsletter.
ACTION Membership
In July, the ACTION Campaign welcomed CliftonLarsonAllen, LLP, a national organization, to the coalition!
Help ACTION continue to grow our membership and advocacy strength by encouraging your networks to support affordable housing and the Housing Credit by joining the coalition. Membership is free.
Together, we can demonstrate to Members of Congress the widespread support for the Housing Credit across the country. You can also help strengthen our reach by following the ACTION Campaign’s LinkedIn page and inviting your connections to follow and join us.
Housing Credit Research
- ACTION Steering Committee member National Low Income Housing Coalition published the 2025 edition of its annual Out of Reach: The High Cost of Housing report. It finds that the 2025 housing wage – how much a full-time worker must earn to afford a modest rental home at fair market rent without spending more than 30 percent of income – is $33.63 for a two-bedroom rental home and $28.17 for a one-bedroom rental home.
- ACTION Steering Committee member National Housing Trust published a deep dive into the use of Housing Credits to preserve affordable housing.
- A study published in Alzheimer’s & Dementia argues that more affordable housing for seniors financed by the Housing Credit is necessary to help reduce the rates of cognitive decline among seniors. The study suggests that, since affordable housing frees up residents to better afford food, and since food insecurity among seniors is linked to cognitive decline, more affordable housing should enable seniors to afford groceries more easily and thereby stave off cognitive impairment.
Housing Credit in the News
- A July 3 Bisnow article features an interview with ACTION co-chair Ayrianne Parks, who discusses the Housing Credit provisions in OBBBA.
- A July 3 article in JD Supra covers the expansion of the Housing Credit in OBBBA.
- A July 3 article in Affordable Housing Finance covers the expansion of the Housing Credit in OBBBA.
- A July 7 op-ed in the Salt Lake Tribune calls for a significant expansion of the Housing Credit to finance affordable housing. The author notes that affordable housing is critical economic infrastructure that has benefits for public health, criminal justice reform, and educational outcomes.
- A July 9 Politico newsletter covers the AHCIA provisions included in OBBBA and notes the potential for the provisions to be the biggest single Housing Credit expansion in 25 years. The newsletter features quotes from several ACTION members and notes the longstanding bipartisan support for the AHCIA.
- A July 10 article in Bloomberg describes the win for affordable housing in OBBBA.
- A July 11 article in Indiana’s FOX 59 WXIN covers the inclusion of part of the AHCIA in OBBBA and features an interview with AHCIA Senate lead sponsor Todd Young (R-IN).
- A July 11 article in JD Supra covers the expansion of the Housing Credit in OBBBA.
- A July 14 blog post by the Urban Land Institute includes multiple interviews noting the anticipated benefits of the expansion of the Housing Credit in OBBBA.
- A July 22 article in Capitol News Illinois covers the anticipated benefits to Illinois of the Housing Credit expansion in OBBBA.
- A July 23 article in the National Law Review covers the expansion of the Housing Credit in OBBBA.
- A July 27 op-ed in the Sarasota Herald-Tribune gives a “thumbs up” approval of the expansion of the Housing Credit in OBBBA, noting the long-term benefits of the Housing Credit.
- An article in Smart Cities Dive covers the expansion of the Housing Credit in OBBBA.
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