On October 30, members of the ACTION Steering Committee sent a letter to the leadership of the House Financial Services Committee and its Housing and Insurance Subcommittee urging them to include the Community Investment and Prosperity Act (CIPA) from the Senate-passed ROAD to Housing Act in housing legislation that the chamber is currently drafting. CIPA proposes to increase the public welfare investment (PWI) cap for banks from 15 percent to 20 percent, unlocking additional capital for Housing Credit investments. The proposal does not remove any current regulatory safeguards that protect banks’ customers.
An October survey of banks conducted by ACTION members, including AHTCC, AHIC, and NAAHL, explored the potential impact of raising the PWI cap. The survey evaluated responses from 22 banks that collectively invested more than $14 billion in the Housing Credit in 2024, which represents two-thirds of all bank investments in the Housing Credit that year. Responses indicated that over 42 percent of these investments, or $6.1 billion, were made by banks nearing their 15 percent PWI cap.
When Congress previously increased the PWI cap from 10 percent to 15 percent in 2006, the growth in public welfare investments was significant: in 2005, national banks made $3.1 billion in public welfare investments, but by 2024, that amount rose to nearly $28 billion. Should Congress enact the cap increase, banks like those surveyed that are nearing the current cap could potentially invest more in the Housing Credit.
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