Overview:
Senator Maria Cantwell has reintroduced the bipartisan Affordable Housing Credit Improvement Act to address the housing crisis by expanding the Low-Income Housing Tax Credit (LIHTC) program. The bill, co-sponsored by Cantwell and Senator Todd Young, has garnered strong bipartisan support and proposes to increase affordable housing production across the country by making permanent and expanding provisions that have already helped create tens of thousands of homes nationwide. The legislation also includes targeted improvements for at-risk and underserved communities, such as veterans, survivors of domestic violence, Native American tribes, formerly homeless students, and rural residents. The bill's impact on Washington's economy is projected to be substantial, generating 80,400 jobs and over $9 billion in wages and business income.
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U.S. Senator Maria Cantwell (D-Wash.) recently reintroduced the bipartisan Affordable Housing Credit Improvement Act, aimed at addressing the nation’s housing crisis by expanding the Low-Income Housing Tax Credit (LIHTC) program. The legislation could result in more than 53,000 new affordable housing units and over 80,000 jobs in Washington state over the next decade.
The bill, co-sponsored by Sens. Cantwell and Todd Young (R-Ind.), has garnered strong bipartisan support with 30 original cosponsors—split evenly between Democrats and Republicans. The proposal seeks to increase affordable housing production across the country by making permanent and expanding provisions that have already helped create tens of thousands of homes nationwide.
“Housing inflation is up 4% over the past year nationally and 4.5% in the Pacific Northwest – and that was before homebuilders reported an additional 5.5% increase in costs due to tariffs this year,” said Sen. Cantwell. “We need to do more to lower housing costs for everyone. Expanding and improving the Low-Income Housing Tax Credit will do just that by making it more affordable to build homes and lower rents.”
“It’s time for Congress to meet the housing crisis with the bold solutions it demands, and that starts with increasing housing supply,” said Sen. Ron Wyden (D-Ore.). “Our bill will deliver some much-needed relief to families by supporting existing, successful federal housing programs and building over one million new units of affordable housing.”
Since its creation in 1986, the Housing Credit has financed about 90% of all federally supported affordable housing nationwide, helping build over 4 million homes—including more than 100,000 in Washington state. In 2018, a temporary 12.5% increase in LIHTC allocations helped build 59,000 additional units across the country. This bill would make that increase permanent and raise state allocations by another 50% over the next two years.
According to the Washington State Housing Finance Commission, these provisions would immediately finance three additional shovel-ready properties in the state—one in King County, one in another metro area, and one in a rural county.
The bill also enhances the use of private activity bonds by reducing the percentage required to trigger housing credit eligibility. This change would enable more developments to qualify for funding with less debt burden, effectively doubling the number of homes built under the program in Washington. This improvement could fast-track 3,000 shovel-ready units across the state.
The legislation includes targeted improvements for at-risk and underserved communities, such as veterans, survivors of domestic violence, Native American tribes, formerly homeless students, and rural residents.
Beyond housing, the bill’s impact on Washington’s economy is projected to be substantial—generating 80,400 jobs and over $9 billion in wages and business income. Since the LIHTC’s inception, the credit has supported nearly 170,000 jobs and generated more than $19 billion in economic activity in the state.
The bill’s reintroduction comes at a time when building materials costs are rising sharply, with the National Association of Home Builders reporting a 5.5% increase linked to tariffs. These rising costs have added an estimated $10,900 to the price of a typical home, underscoring the urgency to expand housing incentives.