Treasury Will Help Multifamily Builders Boost Production Through LIHTC
In a positive development championed by NAHB that will allow more multifamily developers to boost production through the Low-Income Housing Tax Credit (LIHTC), the U.S. Department of Treasury today announced guidance to increase the ability of state, local, and tribal governments to use American Rescue Plan (ARP) funds to increase the supply of affordable housing in their communities.
The Treasury plan allows state housing agencies to use State and Local Fiscal Recovery Funds (SLFRF) to provide financing for LIHTC projects. This is something that NAHB has been fighting for on the legislative front. Bipartisan legislation backed by Sens. Patrick Leahy (D-Vt.) and Susan Collins (R-Maine) and Reps. Alma Adams (D-N.C.) and David Rouzer (R-N.C.) called the LIFELINE Act would achieve this goal but congressional passage is no longer necessary thanks to today’s actions taken by the Treasury.
Specifically, the Treasury action will allow state and local governments to use SLFRF funds to fully finance long-term affordable housing loans, including the principal of any such loans, subject to certain conditions. These changes will facilitate significant additional financing for affordable housing projects, including those that would be eligible for additional assistance under the LIHTC.
In addition, Treasury is updating guidance to clarify that SLFRF funds may be used to finance the development, repair, or operation of any affordable rental housing unit that provides long-term affordability of 20 years or more to households at or below 65% of the local area median income.
To further encourage state and local governments to make use of these increased flexibilities, Treasury and the Department of Housing and Urban Development jointly published a “how-to” guide to help governments easily combine American Rescue Plan funds with other sources of federal funding.
Over the coming months, Treasury will conduct a series of webinars and briefings with states, local governments, and both nonprofit and private sector entities involved in the development and preservation of affordable housing to provide continued engagement on how SLFRF funds can be used to expand the housing supply.
As part of its implementation of the Americans Rescue Plan, Treasury is also implementing additional programs to ease housing costs, including the Emergency Rental Assistance Program, which has provided millions of Americans support to prevent evictions, and the Homeowner Assistance Fund, which provides nearly $10 billion in support to home owners to prevent foreclosures.
To learn more, Treasury has released updated FAQs, which include new guidance on affordable housing development.
Latest from NAHBNow
As the housing industry faces a severe labor shortage, NAHB members report that increased immigration enforcement and jobsite raids are heightening worker fears and further straining the construction labor pool.
NAHB Chairman Bill Owens was on the National Mall in Washington, D.C., yesterday to help open the 2026 Innovative Housing Showcase, an annual event presented by the U.S. Department of Housing and Urban Development (HUD).
Latest Economic News
Total tax revenue collected by state and local governments was up 5.8% from a year ago in the second quarter, according to the Quarterly Summary of State and Local Government Tax Revenue published by the U.S. Census Bureau. This was the highest year-over-year growth since the third quarter of 2024 (7.2%).
New home sales improved in August, but the monthly gain masked continued weakness in the broader new-home market. Elevated mortgage rates and ongoing affordability challenges continue to constrain demand, with new home sales remaining below last year’s pace and year-to-date sales lower than in 2025.
Adults ages 55 and older make up a large and growing share of the U.S. population and play an important role in the U.S. housing market. In 2024, around 103 million Americans were ages 55 or older, ranging from adults still in the labor force to retirees.