LIHTC Fix Back in the Cards

A potential bipartisan deal could bring the “Low-Income Housing Tax Credit (LIHTC) Fix” back to life and, with it, the possibility of a new wave of affordable housing deals. Under this deal, new affordable housing projects 30% financed with qualified private activity bonds issued before 2026 could benefit from the 4% LIHTC (as opposed to the current 50% minimum PAB financing requirement), thus allowing states to generate more LIHTC-eligible projects with the same amount of volume cap. Stay tuned for updates on this potential bipartisan bill.