NAHMA LIHTC Update: ACTION June 2025 Monthly Newsletter: AHCIA Advocacy Strategies & Other Housing Credit News

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July 2025 Call Rescheduled

ACTION's July 2025 monthly call will be rescheduled from Friday, July 4, to Friday, July 11, because of the Independence Day holiday. The call will remain at 2:00PM ET. ACTION will send out a reminder email before the July 4 holiday.

Legislative State of Play

House Passes Reconciliation Bill with Housing Credit Provisions!

On May 22, the House passed its reconciliation bill, H.R. 1, the One Big Beautiful Bill Act, which contains provisions to expand the Housing Credit! The reconciliation bill contains four provisions from the AHCIA that would provide more affordable housing. It would:

• Restore the 12.5 percent increase to the 9 Percent Housing Credit, which expired in 2021, from 2026-2029.
• Lower the 50 Percent Test for bond-financed 4 Percent Credit properties with bond obligations made between 2026-2029.
• Create a 30 percent basis boost for properties in rural areas that are placed in service from 2026-2029.
• Create a 30 percent basis boost for properties in Native American communities that are placed in service between 2026-2029.

Together, these provisions represent what would be the biggest single expansion of the Housing Credit since 2000, and would finance, over the next decade and across the country:

• 527,700 additional affordable homes.
• 790,500 jobs.
• $89.1 billion in wages and business income.
• $30.8 billion in federal, state, and local tax revenue.

The inclusion of these provisions in the reconciliation bill marks a major milestone for affordable housing advocates. This is the result of years of hard work, so thank you!

The bill now heads to the Senate, where it is essential that advocates thank Congress and ensure that the Senate proceeds with the Housing Credit provisions intact. Republican leadership wants to pass the reconciliation bill by the July 4 recess, so the next four weeks are critical for housing advocates to press our case.

THE ASK: Here's How You Can Help!

• Existing Republican AHCIA cosponsors: Weigh in with Finance Committee Chairman Mike Crapo (R-ID) and Majority Leader John Thune (R-SD), expressing support for the Housing Credit provisions.
• Republican Senators who are not cosponsors: Ask them to support the AHCIA and to express their support for including the Housing Credit in the reconciliation package.

ACTION has published state fact sheets detailing the impact of the Housing Credit expansion provisions in states with Republican senators. You can also share the organization sign-on and local government leaders' letters (see below for more details), which are all on our reconciliation advocacy webpage!

ACTION Sends Letters to Congress in Support of Housing Credit

On May 9, ACTION sent a letter signed by over 2,600 organizations, businesses, and public entities to Congress in support of the Housing Credit and the AHCIA. On May 12, ACTION sent another letter signed by 130 local elected government leaders, such as mayors, county board chairs, and county executives, to Congress in support of the AHCIA and the Housing Credit. Both letters urged Members of Congress to cosponsor the AHCIA if they haven't already and to support the inclusion of AHCIA provisions in the budget reconciliation bill. These letters were timely and likely helped ensure the inclusion of the Housing Credit provisions in the reconciliation bill.

May AHCIA Cosponsorship Update

The AHCIA currently has over one-third of Congress cosponsoring, with supporters evenly divided by Republicans and Democrats. In the House, there were 11 new cosponsors this past month, bringing the total number of cosponsors there to 142.

• Burgess Owens (R-UT-04)
• Morgan McGarvey (D-KY-03)
• Dan Newhouse (R-WA-04)
• Don Davis (D-NC-01)
• Cliff Bentz (R-OR-02)
• Sam Liccardo (D-CA-16)
• Will Timmons (R-SC-04)
• Jared Golden (D-ME-02)
• Ryan Mackenzie (R-PA-07)
• Chellie Pingree (D-ME-01)
• Tim Moore (R-NC-14)

In the Senate, there were 10 new cosponsors this past month, bringing the total number of cosponsors there to 40. The Senate bill, which was reintroduced after last month's newsletter was sent, has already surpassed the number of Senate cosponsors in the previous Congress!

• Roger Wicker (R-MS)
• Patty Murray (D-WA)
• Jon Husted (R-OH)
• Mazie Hirono (D-HI)
• Dan Sullivan (R-AK)
• John Hickenlooper (D-CO)
• Ted Budd (R-NC)
• John Fetterman (D-PA)
• Dave McCormick (R-PA)
• Tim Kaine (D-VA)

Administration Updates

President's Full FY26 Budget Request

On May 30, President Trump released his full Fiscal Year 2026 (FY26) Budget Request. As expected from the earlier blueprint, the proposal includes deep cuts to and eliminations of critical programs administered by HUD, USDA, and the Treasury Department. The proposed budget would eliminate funding for several programs that are often used in conjunction with the Housing Credit, including the HOME Investment Partnerships Program (HOME) and Community Development Block Grants. It also includes major reductions to initiatives addressing homelessness, Native American housing, climate resilience, energy efficiency, and rural development.

The budget also proposes consolidating HUD's federal rental assistance programs into a new State Rental Assistance program, funded at $36.2 billion, which includes $4.4 billion in advance appropriations for FY27 and $25 million targeted toward youth aging out of foster care. Additionally, the budget would merge the Homeless Assistance Grant (HAG) and the Housing Opportunities for Persons with AIDS (HOPWA) program into the Emergency Solutions Grant (ESG) program. The full $4.024 billion proposed for HAG would be allocated solely to ESG, eliminating funding for other HAG initiatives, including the Continuum of Care. HOPWA would receive no funding under this proposal. The USDA Rural Housing Service would also see significant cuts under the President's Budget Request, including the elimination of the USDA Section 502. 

Congress ultimately has authority over appropriations and has not enacted similar proposed slashes in funding. ACTION will continue to monitor and provide updates to our members on federal funding matters that affect the Housing Credit.  

ACTION Submits PGP Recommendations to Treasury

On May 29, ACTION submitted its recommendations for the 2025-26 Priority Guidance Plan to the Treasury Department. The Priority Guidance Plan is an annual document that sets forth the guidance projects Treasury and the IRS will work on during the 12-month period beginning July 1 of each year. The recommendations largely followed ACTION's recommendations from last year. In particular, we requested that Treasury (1) develop guidance for implementation of the Violence Against Women Act (VAWA) for Housing Credit tenants, (2) provide greater flexibility for properties suffering casualty losses, (3) include relocation expenses in rehabilitation expenditures, and (4) better restrict planned foreclosure. Read our letter on the ACTION website.

ACTION Membership

In May, the ACTION Campaign welcomed 40 new members to the coalition!

Please join us in welcoming the following new members:

• Nevada Housing Coalition, Nevada
• Little River County Housing Authority, Arkansas
• Sparta Housing Authority, Tennessee
• DFP Development, LLC, Ohio
• Hennum Consulting, Minnesota
• Nebraska Housing Resource, Nebraska
• Fighting Homelessness, Texas
• Dallas Housing Coalition, Texas
• Heather Rath Consulting, South Carolina
• Catholic Charities Central Washington, Washington
• Housing Trust Silicon Valley, California
• LISC Jacksonville, Florida
• Sjogren Group, LLC, Minnesota
• Housing Opportunities Commission of Montgomery County, Maryland
• Homes & Hope, California
• Dayton's Bluff Neighborhood Housing Services, Minnesota
• LISC San Diego, California
• Saint Paul & Minnesota Foundation, Minnesota
• Landon Group, LLC, Minnesota
• PNW WAHN, Oregon
• Merriment Realty, North Carolina
• Blaine County Housing Authority, Idaho
• Idaho Affordable Housing Management Association, Idaho
• Affordable Housing Management Association - Pacific Southwest, California
• Rocky Mountain Heartland Affordable Housing Management Association, Colorado
• Mid-Atlantic Affordable Housing Management Association, Virginia
• LISC Flint, Michigan
• Affordable Housing Management Association of Northern California & Hawaii, California and Hawaii
• Pennsylvania Delaware Affordable Housing Management Association, Pennsylvania and Delaware
• Federation Housing, Inc., Pennsylvania
• New England Affordable Housing Management Association, Massachusetts
• Affordable Housing Management Association of Washington, Washington
• Stream Consultive, Massachusetts
• West Indianapolis Development Corporation, Indiana
• Lamoine Property Management Co., Illinois
• City of Greeley, Colorado
• Self-Help Credit Union, North Carolina
• Landmarks Illinois, Illinois
• Anderson Housing Authority, Indiana
• MRK Partners, California

Help ACTION continue to grow our membership and advocacy strength by encouraging your networks to support affordable housing and the Housing Credit by joining the coalition. Membership is free.

Together, we can demonstrate to Members of Congress the widespread support for the Housing Credit across the country. You can also help strengthen our reach by following the ACTION Campaign's LinkedIn page and inviting your connections to follow and join us.

Housing Credit Research

• A May study published by AARP found that 79 percent of adults aged 50 and older support the Housing Credit to build affordable rental housing. Among those who supported it, 30 percent strongly support it and a further 49 percent somewhat support it. AARP urges Congress to pass the AHCIA.

Housing Credit in the News

• An April 29 article in Roll Call covers the reintroduction of the AHCIA in the Senate and the longstanding bipartisan support of the AHCIA and the Housing Credit.
• A May 5 policy brief by the JP Morgan Chase PolicyCenter calls on Congress to pass the AHCIA, among other things, to help increase the supply of affordable housing.
• A May 15 article in Bisnow covers the proposed expansion of the Housing Credit in the reconciliation bill.
• A May 16 article in Affordable Housing Finance covers the Ways and Means Committee's passage of the reconciliation bill.
• A May 22 article in Affordable Housing Finance covers the House's passage of the reconciliation bill.
• A May 22 article in Mortgage Point covers, among other things, the Housing Credit provisions in the reconciliation bill.
• A May 28 article in Wisconsin's Daily Reporter covers the importance of the Housing Credit and the reintroduction of the AHCIA.

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