While opposing the U.S. House of Representative’s overall budget reconciliation package that would block healthcare access for millions of Americans through deep cuts to Medicaid, LeadingAge praised three affordable housing provisions included among tax policy changes advanced by the House Ways and Means Committee on May 14 and the House Budget Committee on May 18.

Specifically, the bill would expand and improve the Low Income Housing Tax Credit (LIHTC), which is the primary tool for developing affordable housing across America. The LIHTC, also known as the Housing Credit, is a tax incentive for developing moderately affordable rental units and can be paired with federal rental assistance programs to deepen the affordability of the units or to designate them for older adults.

The legislation advanced by the Congressional Committee includes several proposals that are part of the LeadingAge-endorsed Affordable Housing Credit Improvement Act (AHCIA), including:

• Restoring the 12.5% credit allocation increase that expired in 2021 for 2026 to 2029;
• Lowering the 50% bond financing threshold test to 25%; and
• Providing a 30% basis boost to help create affordable housing in rural and Native American communities (however, the bill excludes a similar basis boost for Extremely Low Income (ELI) units.)

In a coalition letter to Housing Ways and Means Committee Chairman Jason Smith, LeadingAge and other housing organizations explained that the three provisions included in the 2025 reconciliation bill will result in the production of over half a million additional homes affordable to older adults with low incomes and other marginalized households.

“Increasing the Housing Credit volume cap and lowering the bond financing threshold are essential to increasing the supply of housing, and the new basis boosts in rural and Native American areas will make possible developments in those areas that would not be economically feasible absent the additional resources these basis boosts will provide,” reads the letter, spearheaded by the ACTION Campaign.

While LeadingAge is calling on House members to vote against the budget reconciliation package because of the harmful impacts on older adults’ access to health insurance, Supplemental Nutritional Assistance, and more, LeadingAge is grateful to see Congressional support for expanding and improving the Housing Credit.

The reconciliation legislation will next be considered by the House Rules Committee, which is expected to make changes seen as necessary to ensure passage on the House floor.  Once the House passes its version of the legislation, it will move to the Senate, which will undoubtedly make changes of its own.