Reps. Gomez and DelBene Continue Their Fight to Expand Affordable Housing for Extremely Low-Income Households
Washington,
June 13, 2025
WASHINGTON, DC – Representatives Jimmy Gomez (CA-34) — Chair of the Congressional Renters Caucus — and Suzan DelBene (WA-01) reintroduced their Affordable Housing Equity Act of 2025, 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. “We’re in a housing crisis, and the families hit hardest are the ones with the fewest options,” said Rep. 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.” “Too many families are being priced out of their communities and left without stable housing,” said Rep. 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.” The Affordable Housing Equity Act of 2025 amends the Internal Revenue Code of 1986 to increase 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 initiatives 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. The Low-Income Housing Tax Credit (LIHTC) is the federal government’s primary tool to encourage 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 Affordable Housing Equity Act of 2025 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. You can read the full bill text HERE. |
