Housing (Housing Finance)

The Housing Market Transparency Act (HR 3216) requires the Department of Housing and Urban Development (HUD) to collect standardized data on low-income housing tax credit projects. This includes development costs, ownership details, habitability standards, and reasons for property disposition (like sales or foreclosures), which states must submit annually to HUD. HUD will then compile and publicly release this data yearly, excluding certain sensitive details, and periodically publish market reports on multifamily housing. The law directly affects HUD, state housing agencies, and owners of properties receiving low-income housing tax credits under Section 42 of the Internal Revenue Code.

This bill establishes two new programs under the National Affordable Housing Act to increase affordable rental housing on property owned by faith-based organizations and institutions of higher education. It provides $25 million annually (2026-2031) for technical assistance to help these groups remove barriers to developing housing for low-income households, including those at risk of homelessness, veterans, and people with disabilities. Additionally, it creates $50 million annually in competitive challenge grants for local governments and states to adopt policies removing barriers and produce housing for households earning below 60% of area median income, with priority for well-resourced neighborhoods. The programs require public planning and reporting to ensure funds directly support affordable housing development on eligible properties.

This bill protects affordable housing projects that received tax credits before 2025 by preventing owners from selling only the non-low-income portions of buildings. It requires that both low-income and non-low-income portions be sold together at fair market value, with the housing credit agency factoring in rent restrictions for the low-income units. This applies to properties where tax credits were necessary for the project’s financial viability. The law directly affects developers and property owners managing federally subsidized affordable housing developments.

HR 5529, the Fair Housing for Disabled Veterans Act, changes how veteran disability payments are treated when determining eligibility for low-income housing programs. Specifically, it amends the tax code to exclude disability compensation or pension payments (under 38 U.S.C. chapters 11 or 15) from income calculations for low-income housing tax credits and residential rental project bonds. This means disabled veterans applying for these housing assistance programs will not have their disability benefits counted as income, potentially making them eligible for more housing options they otherwise might have been disqualified from. The bill directly affects disabled veterans seeking affordable housing through these federally supported programs.