The New Dems released an Affordability Agenda earlier this year that focuses on: ... Building more affordable homes by increasing Low-Income Housing Tax Credit allocations and community benefits.
Increase Low-Income Housing Tax Credit allocations and community benefits to build more affordable homes.
Occurrences
Evidence
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Section 70422, titled "Permanent Enhancement of Low-Income Housing Tax Credit," amended IRC section 42(h)(3)(I) so the state housing credit ceiling increase applies to calendar years beginning after December 31, 2025, and changed the tax-exempt bond financing rule for buildings placed in service after 2025.
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The 21st Century ROAD to Housing Act was enacted July 11, 2026. It raised public-welfare investment limits from 15 to 20 percent, added new affordable housing construction as a CDBG-eligible activity capped at 20 percent of allocations, and allowed HOME funds for infrastructure adjacent to section 42 housing.
Assessments
During Sykes's House service, Public Law 119-21 enacted a permanent enhancement of the Low-Income Housing Tax Credit by increasing state housing credit ceilings for years after 2025 and revising related tax-exempt bond financing rules. Public Law 119-101 also added affordable-housing-supportive community development and infrastructure provisions, including supports adjacent to section 42 housing. This substantially advances the promise, but the evidence does not show a full LIHTC-linked community benefits regime or complete delivery of both promised components, so partial credit is appropriate.