Save Affordable Housing Act of 2025
Summary
The Save Affordable Housing Act of 2025 aims to amend the Internal Revenue Code of 1986, specifically targeting the low-income housing credit. It seeks to repeal the qualified contract exception to the extended low-income housing commitment rules. This bill was introduced in the House of Representatives by Mr. Neguse and referred to the Committee on Ways and Means.
Expected Effects
The likely effect of this act is to modify the process by which owners of low-income housing can exit the program after the initial compliance period. By repealing the qualified contract option for certain buildings, the bill aims to ensure that affordable housing remains available for a longer duration. It also changes the rules relating to existing projects, affecting how the non-low-income and low-income portions of buildings are valued and sold.
Potential Benefits
- Potentially preserves existing affordable housing stock by removing an exit strategy for owners.
- May lead to more consistent application of low-income housing rules.
- Could provide greater stability for low-income tenants.
- The bill could lead to better long-term planning for affordable housing.
- The changes could streamline the process for housing credit agencies.
Most Benefited Areas:
Potential Disadvantages
- Could reduce the incentive for developers to participate in the low-income housing credit program if exit options are limited.
- May decrease the value of existing low-income housing investments.
- Could create uncertainty for building owners who were relying on the qualified contract option.
- The changes could lead to legal challenges from building owners.
- The bill might increase the administrative burden on housing credit agencies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to promote affordable housing. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. The use of tax credits to incentivize affordable housing development falls under this power.
However, the specific mechanisms and their impact on individual property rights could be subject to scrutiny under the Fifth Amendment's Takings Clause, if the changes significantly diminish property values without just compensation. The constitutionality would depend on whether the changes are viewed as a reasonable regulation or an unconstitutional taking.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).