S.1515 - Affordable Housing Credit Improvement Act of 2025 (119th Congress)
Summary
The Affordable Housing Credit Improvement Act of 2025 (S.1515) aims to reform and expand the low-income housing credit, now referred to as the affordable housing credit. The bill addresses various aspects of affordable housing, including state allocation formulas, tenant eligibility, credit eligibility, Native American and rural assistance, and data transparency. It seeks to increase the availability and improve the quality of affordable housing across the United States.
Expected Effects
This act will likely increase the supply of affordable housing by incentivizing developers through enhanced tax credits and streamlined regulations. It will also broaden tenant eligibility criteria and provide additional protections for vulnerable populations, such as victims of domestic abuse and veterans. The changes to state allocation formulas aim to distribute resources more effectively, while increased oversight seeks to ensure responsible use of funds.
Potential Benefits
- Increased funding for affordable housing projects through adjustments to state allocation formulas.
- Expanded tenant eligibility criteria, including modifications to student occupancy rules and consideration of tenant voucher payments.
- Enhanced protections for victims of domestic abuse within low-income housing.
- Targeted assistance for Native American and rural communities to address their specific housing needs.
- Increased transparency and accountability in the allocation and use of affordable housing credits.
Potential Disadvantages
- Increased complexity in the administration of the low-income housing tax credit program due to numerous amendments and modifications.
- Potential for unintended consequences arising from the changes to tenant eligibility and income restrictions.
- Risk of increased costs and administrative burdens for housing credit agencies in implementing the new requirements.
- Possible delays in project development due to increased oversight and accountability measures.
- The shift to 'affordable' from 'low-income' may not substantively change the program's focus and could be perceived as merely semantic.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble) by promoting affordable housing. It does not appear to infringe upon any specific constitutional rights or limitations. The allocation of tax credits falls under Congress's power to tax and spend for the general welfare (Article I, Section 8).
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).