Episode 20: LIHTC Expansion Under the One Big Beautiful Bill Act

The One Big Beautiful Bill Act (OBBBA) delivers the most significant Low-Income Housing Tax Credit expansion in years, with major benefits for affordable housing developers and investors starting in 2026. Key LIHTC Changes in the OBBBA: Permanent 12% increase in 9% LIHTC allocations beginning 2026 Bond financing threshold lowered from 50% to 25% for 4% LIHTC rehabilitation projects Estimated 80,000 additional affordable units from 9% credit expansion through 2035 Over 1 million additional affordable rental homes projected from bond threshold change State-by-State Impact: California: 200,000 new units projected through 2035 Georgia: 98,000 new units Texas: 97,000 new units For LIHTC developers, syndicators, and tax credit investors, the math on 4% acquisition-rehab deals just got significantly better. Properties placed in service after December 31, 2025 qualify under the new rules. Subscribe to The Spring Street Brief for daily affordable housing news covering LIHTC, Section 8, HUD policy, private activity bonds, and state HFA updates.]]>