NAHB Urges Congress to Support Affordable Housing, LIHTC in Next Package
NAHB, as part of the A Call To Invest in Our Neighborhoods (ACTION) Coalition, sent to congressional leaders a letter urging them to stabilize the affordable housing system by including provisions to support the Low-Income Housing Tax Credit (LIHTC) and mitigate the damage to affordable housing production that is already occurring as a result of the COVID-19 crisis.
There is a severe shortage of affordable rental housing in the United States, and the COVID-19 pandemic has only exacerbated this growing crisis. The need to keep affordable housing production moving forward is even greater with more than 30 million individuals and counting who have lost their jobs, while one in four renters were already struggling paying more than 50% of their income in rent prior to the pandemic.
The coalition requests the following for the next relief package:
- Enact a minimum 4% housing credit rate.
- Lower the "50% test" bond financing threshold for 4% Housing Credit developments
Fiscal policies pursued by the government to stabilize the economy have driven the 4% credit rate down to all-time lows. For April, the rate was 3.12% for May, the rate is now 3.08%, breaking the record low set in April. This is an unprecedented drop and direct consequence of COVID-19. And this record-low rate is unlikely to change in the short term, which is why relief is needed.
Going forward, the coalition has also requested the Congress explore increasing the annual housing credit allocation by 50%, and providing additional basis boosts for vulnerable properties impacted by COVID-19, including housing bond-financed properties that have felt the financing crisis most acutely.
The full coalition letter is available on nahb.org.
For more information, contact J.P. Delmore.
Latest from NAHBNow
Jul 22, 2025
2026 IBS Sustainability & Green Building Scholarship Application Now OpenThe NAHB IBS Sustainability and Green Building Scholarship aims to provide emerging green builders exposure to the world of high-performance homes and help them jump-start their professional journey by attending the International Builders’ Show (IBS).
Jul 21, 2025
House Bill Restores Funding for Several Housing Programs from Trump BudgetThe House Appropriations Committee has voted to restore funding for key housing programs that President Trump eliminated in his “skinny budget,” such as housing choice vouchers, project-based rental assistance and the Community Development Block Grant (CDBG) program.
Latest Economic News
Jul 22, 2025
Top 10 Builder Market Share Across MetrosAn earlier post described how the top 10 builders in the country captured a record 44.7% of new single-family closings in 2024. BUILDER Magazine has now released additional data on the top ten builders within each of the 50 largest new home markets in the U.S., ranked by single-family permits.
Jul 21, 2025
Use of Private Water and Sewer Systems in New Single-Family HomesThe share of new single-family homes built with individual septic systems declined slightly in 2024 compared to the previous year, while the share of homes served by private wells remained steady.
Jul 21, 2025
Sales of Lower-Priced New Single-Family Homes Declined Over the Past Five YearsFrom 2020 to 2024, sales of lower-priced new homes declined significantly as the market moved toward higher-priced segments. Rising construction costs—driven by inflation, supply chain disruptions, and labor shortages—as well as higher regulatory costs, made it increasingly difficult for builders to construct affordable homes.