Mortgages

Housing advocates are celebrating the passage of the One Big Beautiful Bill for the boost in Low Income Housing Tax Credits which is projected to boost the use of private activity bonds.

The Senate advanced the One Big Beautiful Bill Act through a procedural vote, opening the legislation for debate followed by Monday's vote-a-rama.

Housing advocates are cheering the Senate's embrace of expanding Low Income Housing Tax Credits which ensures a volume increase and reduces a key bond threshold test.

Facing big demand for housing, the state's efforts to spur development have spurred litigation by cities challenging recent laws and a compliance crackdown.

The Chicago City Council passed Mayor Brandon Johnson's green affordable housing plan, to be seeded with $135 million from 2024's $1.25 billion bond ordinance.

Attracting more private investment to the affordable housing sector is becoming more urgent with the reintroduction of a bill in the Senate that could spur the use of private activity bonds.

The state hopes bonds and associated incentives will help to address a state-wide housing shortage.

Housing advocates concerned about the fate of private activity bonds are working on strategies for getting PABs and tax-exempt munis off the table while Congress searches for ways to pay for tax cut extensions.

The Affordable Housing Credit Improvement Act is reintroduced in the House of Representatives with bipartisan support to increase the development of affordable housing by leveraging private activity bonds and loosening restriction on Low Income Housing Tax Credits.

As the Trump administration fills out it cabinet positions, advocates for housing affordability are feeling hopeful but cautious.