Affordable Housing Backers’ Hopes Dim as Tax Package Withers

The languishing of a $78 billion tax package in the Senate is dampening hopes among affordable housing advocates that tens of thousands of new homes would be generated from the bill, making 2025 an even more crucial year to boost housing development.

The bipartisan legislation expands the decades-old low-income housing tax credit with a 12.5% increase in the number of credits states can allocate. The measure aims to help states fund more affordable developments, and has been on top of the housing industry’s wish list since an increase in the credit from 2018 expired in 2021.

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