NAAHL Urges Congress to Include Bipartisan Housing Bills in 2025 Tax Package to Boost Housing Supply and Deliver Relief to Renters and Homeowners
Washington, D.C. (May 8, 2025) — The National Association of Affordable Housing Lenders (NAAHL) applauds the reintroduction of two bipartisan housing bills in the U.S. Senate: the Affordable Housing Credit Improvement Act (AHCIA) and the Neighborhood Homes Investment Act (NHIA). As Congress prepares a 2025 tax package, NAAHL urges lawmakers to include these bills to expand affordable housing supply for both renters and homeowners nationwide.
The Affordable Housing Credit Improvement Act, introduced by Senators Maria Cantwell (D-WA), Todd Young (R-IN), Marsha Blackburn (R-TN), and Ron Wyden (D-OR), seeks to strengthen and expand the Low-Income Housing Tax Credit (Housing Credit), the nation's primary tool for financing affordable rental housing. Key provisions include a 50 percent increase in housing credit allocations, lowering the bond financing threshold for 4 percent credits, and enhancements to better serve rural and underserved communities, homeless veterans, and extremely low-income households.
The Neighborhood Homes Investment Act, introduced by Senators Todd Young (R-IN) and Mark Warner (D-VA), would create a new federal tax credit to build and rehabilitate over 500,000 affordable single-family homes for homeownership in under-resourced communities. The bill addresses the "value gap" that often hinders development in distressed neighborhoods, where the cost to build or rehabilitate a home exceeds its market value.
House companion bills for both the Affordable Housing Credit Improvement Act (H.R.2725) and the Neighborhood Homes Investment Act (H.R.2854) were reintroduced in April.
“The need for more affordable housing supply – for renters and homeowners – is not just highly relatable – it is highly actionable,” said Sarah Brundage, President and CEO of the National Association of Affordable Housing Lenders. “If Congress is going to pass a multitrillion-dollar package, it must include investments in affordable housing supply so that we can get to building and rehabbing more homes for hard-working American families in rural, suburban, urban, and Tribal communities. These investments in affordable housing are investments in families, in communities, in the economy.”
NAAHL proudly serves on the Steering Committee of the ACTION Campaign, a national coalition of over 2,400 organizations advocating for the expansion and strengthening of the Low-Income Housing Tax Credit. Additionally, NAAHL co-chairs the Neighborhood Homes Coalition alongside the National Community Stabilization Trust (NCST) and the Local Initiatives Support Corporation (LISC).
Click here for a NAAHL Fact Sheet on Housing Supply Priorities for a 2025 Tax Package.
NAAHL’s mission is to expand economic opportunity through innovative financing and policymaking for affordable housing and community development. Founded in 1990, NAAHL is the national alliance of the leading investors and lenders in affordable housing and community development – bringing together banks, CDFIs, and other public, private, and nonprofit lenders.
CONTACT: press@naahl.org