President Trump Expands LIHTC in One Big Beautiful Act
- Jan 21
- 2 min read
President Trump expanded the Low-Income Housing Tax Credit (LIHTC) program in the One Big Beautiful Bill Act. "The One Big Beautiful Bill Act isn’t just a technical tweak – it’s a federal commitment to treating affordable housing as essential infrastructure."
The LIHTC program was created under the Tax Reform Act of 1986 during a period when other real estate tax preferences were being phased out. It was designed to encourage private investment in affordable housing by providing tax credits to developers who commit to reserving a portion of their units for low-income tenants. This initiative emerged as a response to the declining quality of public housing and the need for more sustainable solutions to the affordable housing crisis.
The LIHTC program was initially intended to be a temporary measure, but it quickly became the primary source of financing for affordable rental housing in the U.S. By the early 1990s, it was made permanent due to its success and bipartisan support.
Over the years, the LIHTC has financed approximately 3.65 million housing units. It accounts for about 90% of all newly created affordable rental housing in the country, making it a crucial tool for addressing housing shortages.
The LIHTC has played a pivotal role in shaping the landscape of affordable housing in the United States since its inception. Its ability to leverage private investment has made it a cornerstone of federal housing policy, helping to provide millions of low-income families with access to affordable rental housing. As the housing crisis continues to evolve, the LIHTC remains a critical component of the national strategy to ensure housing affordability for all.
~ Shelterforce
The expansion of LIHTC is a meaningful step toward sustainable affordable housing infrastructure — and it's worth noting that habitability compliance in federally assisted properties includes pest management as a non-negotiable HUD requirement. Rodent infestations in multi-unit LIHTC properties are among the most cited violations during HUD inspections, and reactive approaches like recurring bait contracts rarely satisfy compliance officers who want to see structural exclusion documented. For property managers and developers bringing new affordable units online in California, 360 Rodent Control provides the kind of permanent structural exclusion and decontamination that satisfies inspection requirements long-term rather than cycling through service contracts that treat symptoms rather than causes.
The point about treating affordable housing as essential infrastructure is the right frame. Infrastructure thinking means accounting for the full lifecycle of a building — not just construction costs but ongoing maintenance that keeps units habitable over decades. The roof is the most consequential single element in that equation: a failing roof on an affordable housing property affects every unit it covers, drives up insurance costs, and accelerates deterioration of everything beneath it. In the Los Angeles area, where LIHTC-funded developments are a significant part of the housing stock, proactive roof maintenance is one of the highest-return maintenance investments a property manager can make. SOL Roofing offers free assessments on multifamily and affordable housing properties across the San Fernando Valley.
LIHTC Expansion: A Big Win for Affordable Housing 🏠
The expansion of the Low-Income Housing Tax Credit (LIHTC) program through the One Big Beautiful Bill Act could help create more affordable housing opportunities across the United States. Since 1986, LIHTC has been one of the most successful tools for encouraging private investment in affordable rental housing, helping millions of families find a place to call home.
With housing affordability remaining a major challenge, many see this expansion as a step toward increasing housing supply and supporting communities that need it most.
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