Representatives Gomez and DelBene Reintroduce “Affordable Housing Equity Act of 2025” to Better Target LIHTC Resources to Meet the Needs of Renters with the Lowest Incomes

By Libby O’Neill, NLIHC Senior Policy Analyst 

Representatives Jimmy Gomez (D-CA) and Suzan DelBene (D-WA) reintroduced the “Affordable Housing Equity Act of 2025” (H.R. 3964) on June 12. The bill would strengthen the Low-Income Housing Tax Credit (LIHTC) program by providing a basis boost for properties that set aside at least 20% of units to be affordable to households with extremely low incomes (those with incomes below 30% of the Area Median Income or below the federal poverty guideline, whichever is greater). NLIHC has endorsed this legislation.  

This reform, known as the ELI basis boost, is one of NLIHC’s top reform priorities for the LIHTC program. LIHTC is the nation’s largest source of financing for affordable rental housing—however, apartments built with the tax credit are typically too expensive for extremely low-income households, who make up almost half (49.1%) of LIHTC tenants. The ELI basis boost would make it more financially feasible for developers to build apartments at rents affordable to households with the greatest needs. 

The U.S. has been experiencing an affordable housing supply crisis for many years, and this crisis is felt most acutely by renters with the lowest incomes. According to NLIHC’s Gap Report, the nation’s 10.9 million extremely low-income renters face a shortage of 7.1 million affordable and available rental homes, resulting in only 35 affordable and available homes for every 100 extremely low-income renter households. Seventy-five percent of extremely low-income renters are severely cost-burdened, paying more than half of their limited income toward rent. These households are often one unexpected expense or emergency from falling behind on rent and facing eviction, and in the worst cases, homelessness. It is essential that any efforts to address the nation’s affordable housing supply crisis address the need for more homes for extremely low-income households. 

The ELI basis boost is included in the bipartisan “Affordable Housing Credit Improvement Act” (AHCIA; S. 1515/H.R. 2725); however, it is not among the LIHTC provisions included in the current House or Senate versions of the budget reconciliation bill, Congress’ primary vehicle for tax reform this session. NLIHC urges Congress to enact the “Affordable Housing Equity Act of 2025” to address the need for more deeply affordable rental housing for those with the greatest needs. 

Read the press release here: http://bit.ly/4kLC5le   

Read the bill text here: http://bit.ly/3HIJJy6  

Read more about needed reforms to LIHTC here: http://bit.ly/3HLb3LX