Press Releases

Representatives Suzan DelBene (WA-01) and Jimmy Gomez (CA-34) reintroduced the Affordable Housing Equity Act, legislation that would strengthen the Low-Income Housing Tax Credit (LIHTC) by providing a targeted basis boost for housing developments that serve extremely low-income (ELI) households.

“Too many families are being priced out of their communities and left without stable housing,” said DelBene. “The Affordable Housing Equity Act strengthens one of our most effective affordable housing production tools, the Low-Income Housing Tax Credit, to better serve the families most in need. This legislation ensures that these households aren’t left behind in the fight for more affordable housing.” 

“We’re in a housing crisis, and the families hit hardest are the ones with the fewest options,” Gomez. “This bill delivers targeted help to the lowest-income renters by supercharging the most effective affordable housing tool we have. It’s a smart, urgent step to tackle housing affordability and build equity from the ground up.”

The Affordable Housing Equity Act increases the eligible basis by up to 50% for residential units designated for households earning no more than 30% of area median income (AMI) or 100% of the federal poverty line, whichever is greater. Housing developments must set aside at least 20% of units for ELI renters and be designated by the housing credit agency as needing the boost for financial feasibility.

LIHTC is the federal government’s primary tool to incentivize the construction and rehabilitation of rental units that families can afford. While existing law allows for a 30% boost in certain areas, those provisions don’t consistently support developments serving extremely low-income renters. The bill closes that gap by creating a national standard tailored to ELI households. The bill applies to new housing credit allocations made after the date of enactment and to tax-exempt bond-financed projects issued after December 31, 2025.

A copy of the bill can be found here.