While the White House wrestles with war in Iran, the Senate passed a major housing bill that could spur bond sales aimed at increasing the affordable housing stock.
"We especially appreciate a number of proposals in the 21st Century ROAD to Housing Act that will help support affordable housing investment using the Low-Income Housing Tax Credit, which remains the primary driver of affordable housing supply in the U.S," said Emily Cadik, CEO of the Affordable Housing Tax Credit Coalition.
The bill enjoys bipartisan support and already has
The finance community is especially interested in a provision in both bills that would raise the cap on public welfare investments to 20% from 15%.
The PWI limits how much banks can invest in community development projects, which includes affordable housing. It's regulated by the Office of the Comptroller of the Currency, an independent bureau operating in the U.S. Treasury Department.
Raising the cap is expected to pull more private investment into the affordable housing sector which relies on support from private activity bonds.
The cap has been stuck at 15% since 2006. When Congress raised the cap to 15% from 10%, national bank PWIs soared to $27.9 billion in 2024 from $3.1 billion in 2005.
The bill required a team effort from Senate leaders of the Housing, Banking, and Urban Affairs Committee, Chairman Tim Scott R- S.C., and ranking member Elizabeth Warren, D-Mass.
"This is the biggest package of bills to make housing affordable in 30 years," said Warren, "This bill has more than 40 provisions, each designed to help increase housing supply and bring down costs."
Despite all the positive energy, the deal is not quite done.
"Differences with the House remain," said Dennis Shea, executive vice president and chair of the J. Terwilliger Center for Housing Policy at the Bipartisan Policy Center.
"Given how far lawmakers have come working together, we're hopeful they can keep building momentum to deliver a strong bill to the president's desk."
Rep. French Hill, R-Ark., who chairs the House Finance Committee, still has some cards to play as the two versions of the bill move towards a final rendition.
"It is critical we get the details right and mitigate some of the concerns raised by House members with the Senate bill," said Hill.
The details include a provision that limits institutional investors from buying up single family homes and questions about the Federal Reserve issuing a central bank digital currency.
Overshadowing the ongoing discussion in Congress, the White House is calling for an all hands on deck effort to pass the SAVE America Act.
The Safeguard American Voter Eligibility Act was passed by the House in February. The bill would require proof of citizenship and a photo ID to vote.
President Trump posted on social media, "It supersedes everything else. Must go to the front of the line. I as President will not sign other bills until this is passed."
"Next week I will be bringing the Save America Act to the floor, and we will be having a full and robust debate," said Senate Leader John Thune R- S.D.
