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Affordable Housing Credit Improvement Act of 2025

H.R. 2725 Rep. Darin LaHood (R-IL-16) In committee
Bill text PDF
  1. Introduced Apr 8
  2. Committee Apr 8
  3. Passed House Next
  4. Passed Senate Not yet
  5. To President Not yet
  6. Law Not yet
Where it stands
In committee, Apr 8, 2025Next: House vote
568d ago Apr 8, 2025: Referred to the House Committee on Ways and Means.
Final votes
No roll callsNo recorded vote on this bill yet
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Summary

This bill amends the Internal Revenue Code to reform the low-income housing credit, increasing state allocations, modifying tenant eligibility rules, adjusting credit eligibility and determination, and providing assistance for Native American and rural areas, among other changes. It also renames the credit to the 'affordable housing credit' and includes a sense of Congress on data transparency and land use policies.

Title I, Reform of State Allocation Formulas: Sec. 101 increases state allocations by replacing fixed dollar amounts with a per capita amount and a minimum amount, setting the per capita amount at $4.25 for 2025 and increasing it by a factor of 1.25 for 2026.

Title II, Reforms Relating to Tenant Eligibility: Sec. 201 allows the average income test to apply to exempt facility bonds. Sec. 202 codifies rules for treating units as low-income despite tenant income increases. Sec. 203 modifies student occupancy rules, excluding units occupied solely by full-time students under 24, with exceptions for federally-assisted buildings. Sec. 204 allows tenant voucher payments to be counted as rent for certain projects. Sec. 205 requires housing credit-supported projects to protect victims of domestic abuse by prohibiting lease refusals or terminations based on related criminal activity. Sec. 206 clarifies that veterans are treated as a specified group under a Federal program for general public use requirements.

Title III, Rules Relating to Credit Eligibility and Determination: Sec. 301 allows a 25-month period (extendable by 12 months for qualified casualty losses) for reconstruction after a casualty loss without recapture. Sec. 302 modifies previous ownership rules and limits acquisition basis for buildings placed in service within the previous 10 years. Sec. 303 treats certain relocation costs as rehabilitation expenditures. Sec. 304 repeals the population cap for qualified census tracts. Sec. 305 allows housing credit agencies to determine community revitalization plans. Sec. 306 prohibits local approval or contribution requirements from being selection criteria. Sec. 307 increases the credit for projects where at least 20% of units serve extremely low-income households (income at or below 30% of area median or the poverty line). Sec. 308 increases the credit for bond-financed projects designated by a state agency. Sec. 309 eliminates the basis reduction for the energy efficient commercial buildings deduction for affordable housing properties. Sec. 310 restricts planned foreclosures by allowing termination of the compliance period 61 days after notice, unless the acquisition is part of an arrangement to terminate the period. Sec. 311 increases the population cap for difficult development areas from 20% to 30%. Sec. 312 requires qualified allocation plans to consider the reasonableness of development costs. Sec. 313 reduces the tax-exempt bond financing requirement from 50% to 25% for buildings financed by obligations first taken into account after enactment.

Title IV, Reforms Relating to Native American Assistance: Sec. 401 adds selection criteria for qualified allocation plans to consider the affordable housing needs of enrolled tribal members and those described in the Native American Housing Assistance and Self-Determination Act. Sec. 402 includes Indian areas as difficult development areas.

Title V, Reforms Relating to Rural Assistance: Sec. 501 includes rural areas as difficult development areas. Sec. 502 provides uniform income eligibility for rural projects.

Title VI, Exempt Facility Bonds: Sec. 601 revises the treatment of refunding issues for bonds used to provide projects described in section 142(d), treating certain refinancings as refunding issues.

Title VII, Affordable Housing Tax Credit: Sec. 701 renames the low-income housing credit to the affordable housing credit and makes conforming amendments throughout the Code.

Title VIII, Data and Transparency: Sec. 801 expresses the sense of Congress that steps should be taken to share data and increase program transparency, and that action should be taken to discourage discriminatory land use policies.

Summary of the bill text as introduced in House (Apr 8, 2025), generated by SecBot from the official bill text; the Library of Congress summary is not yet published.

Official record from Congress.gov, the House Clerk and the Senate; lobbying from Lobbying Disclosure Act filings. Updated Oct 28, 2026.