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How States Are Accelerating Affordable Housing Supply

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Housing affordability has become one of the most pressing economic and political issues in the United States. To address growing demand, over 20 states this year have implemented policies aimed at ramping up housing production.  These measures range from legalizing accessory dwelling units (ADUs) and duplexes to establishing quantitative production targets. In the first six months of this year, lawmakers introduced over 400 “pro-housing” bills across the states. Roughly 70 have been enacted so far, and at least 30 more are pending a governor’s signature.

Steps to Accelerate Housing Construction

Many of these bills follow a broader state-level trend: reducing local regulatory barriers to speed development. About one-third of the legislation passed so far streamlines permitting processes, while another two dozen update building codes; such as allowing certain multifamily buildings to be constructed with a single staircase. Around 15 bills focus specifically on expanding ADU construction, a policy that has gained popularity in recent years.

Traditionally, zoning authority has been left to cities. However, with housing costs climbing, state policymakers are increasingly reasserting authority over land-use decisions. State-level interventions have the advantage of impacting larger geographic areas and can more effectively standardize regulations that support new construction.

This wave of legislative activity underscores that housing affordability remains a high priority, even amid political divisions and economic uncertainty. The ultimate goal across states has been consistent: accelerate housing construction, reduce red tape, and meet the needs of growing communities.

Obstacles to Affordable Housing Expansion

Still, there are obstacles. The federal “Big Beautiful Bill” includes significant cuts to Medicaid and food stamps—programs that indirectly support many low-income households. Coupled with concerns about a slowing economy and the impact of tariffs, questions still remain about states’ abilities to sustain robust affordable housing investments.

For now, fiscal conditions are favorable. Analysts at the National Conference of State Legislatures (NCSL) project that state spending will decline by less than one percent on average in the coming fiscal year, noting that state budgets are currently “about the strongest we’ve ever seen.” This stability gives states the near-term capacity to continue advancing housing supply initiatives.

However, maintaining this momentum will be more difficult if federal cuts deepen or broader economic conditions deteriorate. For housing stakeholders, the message is clear: the current policy and budget environment offers a pivotal opportunity to address housing shortages. Acting strategically now could determine whether progress continues, or demand outpaces supply once again.

Conclusion

At ProLink Solutions, we equip housing agencies and developers with the tools to turn policy into results. Our software streamlines compliance, tracks progress, and ensures programs deliver lasting impact. As states work to expand housing supply, ProLink stands ready to help transform today’s opportunities into stronger communities nationwide.

Key Takeaways from NCSHA’s Housing Credit Connect 2025

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Several members of the ProLink Solutions team had the opportunity to attend sessions at this year’s NCSHA Housing Credit Connect in Chicago. This conference, which takes place annually, continues to be an invaluable opportunity to stay informed, engage with industry peers, and contribute to the conversations that help shape the future of affordable housing policy and practice. As a dedicated technology partner, ProLink Solutions remains committed to supporting housing agencies and stakeholders with innovative tools as well as insights that enhance the development, management, and preservation of Housing Credit portfolios. Below are key takeaways from several sessions that offered forward-looking solutions and practical guidance for navigating today’s affordable housing landscape.

Key Session Takeaways: Innovation, Financing, and Performance

“New Approaches to Cost-Efficient Developments” focused on how developers are managing rising costs and interest rates through standardization, technology, and local partnerships. Kittle Property Group, Inc. uses repeatable designs to control costs, while others are piloting AI for rent collection and water leak detection. During this session, our staff recognized the importance of efficiency, smart design, tech, and collaboration and how these are essential to keeping costs in check.

The session titled “Maximizing Tax-Exempt Bond Financing” covered creative strategies developers are using to address limited bond volume and high interest rates, especially with the expected drop in the 50% test to 25%. Tools like cash-backed forwards, ground leases, and condo structures are helping developers stretch bond resources.

The third session our staff was able to attend was “Maximizing the Impact of State Tax Credits” this session examined how state credits are becoming key financing tools, not just gap fillers. With programs in 32 states plus D.C., understanding the differences between certificated and allocated credits is crucial. Challenges include low pricing and legislative hurdles, but investor interest is growing, especially from banks using credits to manage taxes for high-net-worth clients.

The session “Navigating the Housing Credit Equity Market” explored how growing deal sizes are running into limited investor demand, creating downward pressure on pricing. With fewer investors competing for more tax credits, the price investors are willing to pay per dollar of tax credit is going down. For every $1.00 of LIHTC a project generates, investors are only paying somewhere between $0.80 and $0.89. Which means lower prices equal less equity available to fund projects. There’s optimism around a federal tax bill that could expand housing credits and spark new development.

The final session we were able to attend was “Analyzing Performance Trends to Inform Future Developments”. This session revealed that expenses are growing faster than income, which is putting added pressure on projects already challenged by financing delays and supply chain issues. Many teams are still using outdated inflation models, but others are shifting to real-time forecasting with higher trends. Poor property management also further impacts performance.

The sessions at this year’s Housing Credit Connect made it clear that while the affordable housing industry faces ongoing challenges, from rising costs and equity market pressures to shifting financing dynamics. However, there is also a strong sense of innovation, adaptability, and collaboration across the field. Developers, investors, and housing agencies are embracing new technologies, financial strategies, and performance insights to drive more efficient, impactful outcomes.

Collaboration and Thought Leadership from ProLink Solutions

ProLink was also proud to participate in several panels for the conference. Ryan Kim, VP of Professional Services at ProLink, participated in a panel for Average Income Test Compliance Strategies on June 25th at 4:30 p.m. Connor McKenna, Director of Product Strategy, participated in two panels. On June 26th at 4:00 p.m., he was part of the NSPIRE Physical Inspection Primer panel. On Friday, June 27th at 11:00 a.m., he also participated in a panel covering Artificial Intelligence and Compliance Tech Trends.

At ProLink Solutions, we’re proud to be part of this evolving ecosystem, and we always enjoy helping our partners stay ahead of the curve with tools and support designed for long-term success. We look forward to continuing these important conversations and working together to strengthen the future of affordable housing.

Shaping the Future of Affordable Housing at NCSHA’s Housing Credit Connect Conference 2025

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The National Council of State Housing Agencies (NCSHA) is hosting its annual Housing Credit Connect conference in Chicago from June 24-27th. This is a chance for the industry to gather together and discuss key challenges and opportunities within affordable housing. With Congress advancing major tax legislation that could bring the most substantial changes to the Housing Credit in more than ten years, the affordable housing industry is actively assessing how these proposals could affect the program.

During the conference, attendees will gain insight as into how state agencies intend to allocate the additional 12.5% in Housing Credit authority, how the reduced tax-exempt bond financing threshold could transform the structuring of 4% Credit developments, how new basis boosts for rural and Native American communities will support project feasibility, and how these changes may influence equity markets and Credit pricing.

ProLink Solutions is proud to serve as a Platinum Sponsor at this year’s Housing Credit Connect Conference. We’re excited to share that Ryan Kim, Vice President of Professional Services, and Connor McKenna, Director of Product Strategy, will be featured as guest panelists during this year’s conference.

Featured Panelists

Ryan Kim will join as a guest panelist for the session Average Income Test Compliance Strategies on Wednesday, June 25th, from 4:30 to 5:30 p.m. This session will explore effective state agency and industry best practices for ensuring compliance with the Average Income Test (AIT) minimum set-aside. Topics will include initial tenant qualification, unit designation, project lease-up, AIT compliance reporting, application of the Next Available Unit Rule, annual recertifications, use of AIT in resyndication, correction of noncompliance, and maintaining compliance in developments with multiple subsidies.

On Thursday, June 26th, Connor McKenna, will be speaking on the NSPIRE Physical Inspection Primer panel from 4 to 5 p.m. This session will cover key components of the National Standards for the Physical Inspection of Real Estate (NSPIRE) protocol, including implementation timelines, revised scoring procedures, and best practices for applying the standards in developments with multiple subsidies. The discussion will also address how staffing reductions at the U.S. Department of Housing and Urban Development—both at headquarters and in field offices—may affect NSPIRE reporting requirements within the Housing Credit industry.

Connor will also be a speaker for Artificial Intelligence and Compliance Tech Trends, hosted on Friday, June 27th from 11 a.m. to 12 p.m. Recent changes in Housing Credit compliance requirements are spurring significant advances in software and technology. This session will explore new tools to monitor compliance with AIT requirements, HOTMA income and asset rules, and the NSPIRE inspection protocol, as well as efficiencies gained through artificial intelligence, expedited tenant qualification procedures, and standardized compliance documents.

Conclusion

As housing agencies place greater emphasis on data-driven decision-making, the conference will showcase how data can be leveraged to optimize Housing Credit allocations, evaluate program performance, and strengthen compliance efforts. Attendees will also have the chance to engage with affordable housing leaders from across the country, fostering valuable connections and collaboration.

For ProLink Solutions and others in the affordable housing sector, events like this provide invaluable opportunities to stay informed, connect with industry peers, and actively contribute to the conversations shaping the future of housing policy and practice. As a technology partner, we’re committed to equipping housing agencies and stakeholders with effective tools and strategies for developing, managing, and preserving Housing Credit portfolios.

ProLink Solutions will be at Booth 16 at Housing Credit Connect next week. We’d love to hear what’s on your mind and share how we’re helping others in the affordable housing space.

Proposed LIHTC Enhancements in 2025 Reconciliation Bill

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Last week, part of the draft tax text for a major 2025 reconciliation bill was released by the House Ways and Means Committee, aimed at extending provisions of the Tax Cuts and Jobs Act, which is set to expire at the end of this year. NCSHA, along with thousands of advocates, pushed to include a provision from the Affordable Housing Credit Improvement Act that would boost the supply of rental housing.

The bill includes three significant enhancements to the Low-Income Housing Tax Credit (LIHTC) program, aimed at increasing the development and preservation of affordable housing nationwide.

LIHTC Enhancements Included in the Bill

First, the annual Housing Credit volume cap for 9 percent LIHTC properties will be increased by 12.5 percent. This temporary increase will begin in 2026 and remain in effect through 2029, providing states with greater allocation authority to support more affordable housing developments.

Second, the bill lowers the bond financing threshold for developments using the 4 percent LIHTC. Specifically, projects placed in service after December 31, 2025, will only be required to finance 25 percent of their costs with tax-exempt bonds. To qualify for this reduced threshold, the bonds must be issued prior to January 1, 2030. This change is expected to significantly expand the number of financially feasible 4 percent Housing Credit projects, particularly in rural or financially constrained environments.

Third, the bill provides a targeted 30 percent basis boost for properties located in Native American and rural communities. This increase in eligible basis, to be allocated at the discretion of state Housing Finance Agencies (HFAs), will apply to properties placed in service between December 31, 2025, and January 1, 2030. The basis boost is designed to strengthen the financial viability of projects in underserved and high-need areas, where development costs are often high and traditional financing sources are limited.

Opportunity Zones (OZ)

The proposed bill extends, expands, and reforms the Opportunity Zones (OZ) tax incentive. It allows current OZ designations to continue through 2026, designates new OZs (including some rural areas), consolidates tax basis increases for post-2026 investments, enhances rural OZ benefits, revises ordinary income treatment, and introduces new rules for improving structures in rural communities. The bill also establishes annual reporting requirements for opportunity funds and OZ businesses, with penalties for noncompliance.

ProLink Solutions is proud to be an affiliate of the National Council of State Housing Agencies (NCSHA), which has been at the forefront of advocating for provisions drawn from the Affordable Housing Credit Improvement Act. This bipartisan initiative aims to strengthen the Low-Income Housing Tax Credit. NCSHA, alongside over 2,600 organizations and businesses, has been a strong advocate for these reforms to help address the nation’s growing affordable housing crisis. Additionally, NCSHA played a crucial role in preserving the tax exemption for private activity bonds (PABs), which were at risk of being eliminated in earlier drafts of the Tax Cuts and Jobs Act.

In the Future

As the Affordable Housing Credit Improvement Act moves through revisions and review by the House Ways and Means Committee, followed by further consideration in the House and Senate, ProLink Solutions is closely monitoring its potential impact on affordable housing finance. With lawmakers aiming to finalize the bill by July 4, ahead of midyear deadlines, we understand the importance of staying ahead of any regulatory changes.

We want to reassure our ProLinkHFA users that our platform is well equipped to handle any changes to the LIHTC program, regardless of how the bill evolves. Our existing technology is designed to seamlessly adapt to new regulatory requirements, and with our deep expertise in compliance, we’re prepared to address any additional changes that may arise. ProLinkHFA will continue to evolve with the industry, ensuring that our users can maintain smooth operations and stay ahead of any legislative shifts in affordable housing finance.

Key Impacts of the AHCIA Reintroduction

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The Affordable Housing Credit Improvement Act (AHCIA) aims to strengthen and expand the Low-Income Housing Tax Credit (LIHTC), the federal government’s primary tool for promoting the development and preservation of affordable rental housing for low-income families. Since its original introduction in 2016, the AHCIA has earned broad bipartisan support for increasing housing production, reaching underserved populations, and improving program efficiency. A temporary 12.5% boost to Housing Credit allocations was enacted in 2018 but expired in 2021. The 2025 version of the AHCIA seeks to reinstate key provisions to maximize impact on affordable housing supply.

Although reintroduced in 2023, the AHCIA did not pass. A major change in the 2025 version is the inclusion of a Sense of Congress section in both the House and Senate bills, compared to its prior presence only in the Senate version. Over the years, Congress has enacted parts of the AHCIA through other legislation, including the Tax Relief for American Families and Workers Act of 2024.

Why It Matters Now

Given rising housing costs, constrained supply, and increased post-pandemic demand, the timing of AHCIA’s reintroduction in 2025 makes it particularly relevant. The affordable housing industry is looking for policy shifts that can accelerate development as well as expand housing access. Before its reintroduction, the legislation was originally forecasted to finance more than 1.9 million affordable rental homes over 10 years.

The reintroduction of the AHCIA stems from a desire to address issues within the LIHTC program to ensure it remains effective in meeting the growing need for affordable housing. Some of the key reasons for the reintroduction include:

Impacts on the Affordable Housing Industry

  1. Increased Housing Production – AHCIA would boost the 9% LIHTC allocation by 50%, phased in two years. This would dramatically increase the number of affordable housing units that can be financed annually.
  2. Increased Developer Interest – Improved financial feasibility and predictability can bring more developers into the affordable housing space.
  3. Permanent 4% Floor – By setting a permanent 4% minimum credit rate (originally done temporarily under COVID relief), more bond-financed deals become viable.
  4. Deep Income Targeting – More flexibility to serve extremely low-income households without sacrificing project feasibility.
  5. Rural & Tribal Incentives – Provisions to encourage development in underserved rural and tribal communities.

How Housing Finance Agencies (HFAs) Would Be Impacted

  1. Greater Allocation Responsibility – With an increased credit cap, HFAs would oversee a larger pipeline of projects and tax credit allocations and therefore have a greater capacity to support developments nationwide.
  2. Greater Demand for Bond Volume Cap – The permanent 4% credit rate could increase demand for private activity bonds (PABs), which HFAs manage.
  3. New Compliance & Underwriting Guidelines – HFAs would need to adjust procedures to align with changes like deep income targeting and new basis boosts.
  4. Increased Administrative Load – More projects means more application reviews, monitoring, and compliance enforcement, which can lead to a greater administrative burden.

What to Watch for This Month

If AHCIA is gaining momentum or attached to a broader tax package, it’s crucial for stakeholders to understand its implications now, especially as states gear up for their 2025 LIHTC allocation plans.

ProLink Solutions remains dedicated to providing innovative technology solutions that streamline the management of 4% and 9% tax credit portfolios. By incorporating the latest regulatory requirements, adapting to evolving industry best practices, and prioritizing efficiency, we are committed to supporting the growth of LIHTC-funded housing projects.

A Multi-Perspective View on Upcoming Affordable Housing Changes

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As we gather at AHF Live 2024 in Chicago, the affordable housing sector stands at a pivotal juncture. The recent election of Donald Trump for a second term brings a renewed focus on housing policies that will significantly influence investors, syndicators, and developers. This year’s conference agenda offers timely insights into navigating the evolving landscape.

Investor’s Perspective: Navigating Economic Policies and Market Dynamics

Investors in affordable housing are closely monitoring the economic policies of the incoming administration. President Trump’s proposed tax cuts and deregulation efforts aim to stimulate economic growth, which could lead to increased investment opportunities. However, these policies may also contribute to higher inflation and elevated mortgage rates, potentially impacting the affordability of housing projects. The National Association of Realtors estimates that the average rate on a 30-year mortgage will fluctuate between 5.5% and 6.5% during Trump’s second term.

At AHF Live 2024, sessions such as “Finance: Bond Financing Update” provide investors with strategies to mitigate interest rate risks and explore alternative financing mechanisms. Understanding these financial instruments is crucial for maintaining the viability of affordable housing investments in a potentially volatile economic environment.

Syndicator’s Perspective: Adapting to Policy Shifts and Funding Mechanisms

Syndicators play a vital role in structuring deals and securing capital for affordable housing projects. The Trump administration’s emphasis on deregulation and potential modifications to housing programs necessitate a proactive approach to deal structuring. The “Nuts and Bolts of Deal Structuring” workshop at AHF Live 2024 offers valuable insights into adapting to these policy shifts.

Additionally, the administration’s plans to utilize federal land for housing development present new opportunities and challenges. Syndicators must assess the feasibility of projects on federal land, considering factors such as location, infrastructure, and regulatory compliance. Engaging with sessions like “Developers’ Roundtable: Opportunities and Challenges” can provide syndicators with diverse perspectives on capitalizing on these emerging opportunities.

Developer’s Perspective: Embracing Innovation and Regulatory Changes

Developers are at the forefront of implementing affordable housing initiatives. The administration’s focus on reducing regulatory barriers aligns with developers’ goals of streamlining project approvals and reducing costs. However, the potential rollback of programs like Affirmatively Furthering Fair Housing (AFFH) may impact funding and compliance requirements.

AHF Live 2024 addresses these concerns through sessions such as “What’s Ahead at HUD,” offering developers insights into anticipated policy changes and their implications. Furthermore, the conference’s emphasis on innovation is evident in sessions like “Cutting-Edge Innovations in Affordable Housing,” encouraging developers to adopt new technologies and methodologies to enhance project efficiency and sustainability.

Conclusion

The intersection of policy changes and market dynamics under Donald Trump’s second term presents both challenges and opportunities for stakeholders in the affordable housing sector. AHF Live 2024 serves as a crucial platform for investors, syndicators, and developers to gain insights, share strategies, and collaborate on solutions to advance affordable housing development in this evolving landscape.

2024 Election Outcome and the Impact on Affordable Housing

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The outcome of the 2024 U.S. presidential election will profoundly shape the affordable housing industry due to the contrasting priorities of the leading candidates. With rising home prices, rental costs, and a significant housing supply shortfall, housing affordability remains a key issue. Depending on who wins, the approach to addressing these issues will vary significantly and will influence federal funding, regulatory frameworks, and market incentives.

Democratic Approach (Kamala Harris)

If Kamala Harris and the Democrats win, their policies are expected to prioritize expanding affordable housing through a variety of measures:

  • Housing Supply: Harris has pledged to build 3 million new housing units over the next four years, along with expanding the Low-Income Housing Tax Credit (LIHTC) to support affordable housing development. She also proposes a $40 billion fund to help local governments tackle housing shortages by addressing supply constraints and speeding up permitting processes. ​(RISMedia)
  • ​Homeownership: The Democrats are focusing on supporting first-time homebuyers through measures like a $25,000 down-payment assistance program and a $10,000 tax credit for first-time buyers​. (National Association of Home Builders)
  • Rental Market Regulation: Harris has proposed a nationwide cap on rent increases at 5% for corporate landlords and aims to ban algorithm-driven rent setting, which many believe leads to inflated rents.​ (National Mortgage News)

Republican Approach (Donald Trump)

A Republican victory, with Donald Trump and running mate J.D. Vance, would emphasize reducing regulations and encouraging private-sector solutions:

  • Regulatory Reductions: Trump has promised to cut what he sees as unnecessary regulations that raise construction costs. His administration would also aim to open portions of federal land for affordable housing development​.
  • Homeownership: Like Harris, Trump supports homeownership, but through tax incentives and by reducing inflation to lower mortgage rates. His focus is on easing market pressures by rolling back government interventions.​ (National Association of Home Builders)
  • Immigration and Housing Costs: Vance has argued that immigration policies have worsened housing affordability by increasing demand for homes in lower-income neighborhoods, making homeownership more difficult for U.S. citizens.​ (RISMedia)

If Democrats win, we could see a large-scale investment in new affordable housing units, increased support for first-time homebuyers, and stricter regulations on corporate landlords. These efforts would likely help lower housing costs and expand access to affordable housing. However, if Republicans win, the focus would likely shift toward deregulation, reducing federal involvement, and fostering private-sector solutions to increase housing supply. While this may lower costs for developers, it may not directly address affordability for low- and middle-income families as effectively.

Jennifer Schwartz, Director of Tax and Housing Advocacy at the National Council of State Housing Agencies (NCSHA), will be giving a keynote presentation during our annual virtual user conference, ProLink Technology Live 2024, next Monday at 11 a.m. EST. She will be addressing this matter as well and may have differing opinions on what we have provided above. If you would like to learn more and register for our conference, you can click here.