Affordable Housing Equity Act of 2025

The Affordable Housing Equity Act of 2025 aims to address the national shortage of deeply affordable rental housing by amending the Internal Revenue Code. The bill proposes to strengthen the Low-Income Housing Tax Credit (LIHTC) program, which is the primary federal tool used to encourage the construction and renovation of affordable apartments. Specifically, it would provide a 50% "basis boost" in tax credits for housing projects that set aside at least 20% of their units for extremely low-income households.

Under this proposal, eligible households are defined as those earning no more than 30% of the Area Median Income or the federal poverty line, whichever is greater. By increasing the financial incentives for developers, the bill seeks to make projects that serve the lowest-income Americans more financially viable. If enacted, the legislation would apply to new housing credit allocations and certain tax-exempt bond-financed projects, potentially increasing the supply of homes for individuals and families at the highest risk of housing instability and homelessness.