Breaking Development

On February 9, 2026, the House passed H.R. 6644 by a 390-9 vote, sending comprehensive housing reform to conference committee with the Senate's ROAD Act. This represents the most significant federal housing policy advancement in nearly a decade, with strong bipartisan support signaling high likelihood of passage by mid-2026.

This legislation would expand the Community Reinvestment Act (CRA) framework while fortifying LIHTC, particularly through provisions in the Affordable Housing Credit Improvement Act (AHCIA). If enacted, it would augment the credit available per project and broaden the investor base, substantially expanding demand for LIHTC equity.

Key Provisions Impacting LIHTC Market

Direct LIHTC Benefits

FHA Multifamily Loan Limit Increases

Updates FHA mortgage insurance limits to reflect current construction costs, making more LIHTC projects eligible for FHA-insured permanent financing with 4% credits.

Impact: Improved 4% deal feasibility

NEPA Streamlining

Reclassifies many housing activities as categorical exclusions, reducing environmental review timelines for LIHTC developments by 3–6 months on average.

Impact: Faster project completion = lower costs

HOME Program Improvements

Increases HOME Investment Partnerships funding and streamlines regulatory requirements, improving the effectiveness of HOME as a gap financing source for LIHTC projects.

Impact: More available gap financing

Market Impact Analysis

If enacted as currently written, H.R. 6644 could materially improve LIHTC market conditions across several dimensions:

  • Credit Pricing: Expanded investor base could push 9% pricing back above $0.90, potentially reaching $0.93–$0.96 by end of 2026
  • Deal Volume: Faster permitting and stronger financing could increase completed projects by 12–18%
  • Equity Gaps: Larger basis and expanded credit amounts reduce per-project financing gaps
  • Rural Markets: Targeted rural provisions could unlock development in currently underserved areas

Legislative Outlook

The bill now enters conference committee to reconcile with the Senate ROAD Act. Key differences to be negotiated include credit allocation formulas, income targeting requirements, and the scope of CRA expansion. Both chambers have indicated strong interest in reaching agreement before the August recess, making a Q2 2026 passage realistic.

Developers and investors should begin modeling project economics under both current-law and post-enactment scenarios to be prepared for rapid market shifts upon passage.

Live Bill Status Tracker

Real-time tracking of key affordable housing legislation. Data reflects the current legislative stage and estimated passage probability.

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Disclaimer: Legislative analysis reflects the bill as passed by the House and is subject to change through the conference committee process. This analysis is for informational purposes only and does not constitute legal or investment advice.