The House Financial Services Committee advanced key housing legislation that includes a proposal to increase the public welfare investment (PWI) cap, a move that could boost the capacity of banks to invest in affordable housing.
On a 50-1 vote, the committee passed the Housing for the 21st Century Act, a bipartisan housing and community development package unveiled by chairman French Hill (R-Ark.) and ranking member Maxine Waters (D-Calif.).
“Housing affordability remains one of the most pressing challenges facing aspiring homeowners, renters, and communities. Today’s overwhelmingly bipartisan vote in the House Financial Services Committee is a significant milestone,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association (MBA).
The legislation advances several longstanding MBA priorities, including updates to the Federal Housing Association multifamily loan limits, directional improvements to rural housing programs, and stronger coordination across federal agencies.
“Many of these priorities align with proposals advanced by the Senate Banking Committee’s ROAD to Housing Act, underscoring a shared, bipartisan commitment in both chambers to tackling our nation’s housing challenges,” Broeksmit said.
The bill calls for the PWI cap to increase from 15% to 20%. This would expand the availability of private capital for affordable housing development and help maximize the impact of the historic expansion of the low-income housing tax credit (LIHTC) enacted in the One Big, Beautiful Bill Act earlier this year.
“Raising the PWI cap will free additional private-sector investment to support affordable housing development using the housing credit, the nation’s most successful tool for producing affordable rental housing,” said Emily Cadik, CEO of the Affordable Housing Tax Credit Coalition. “… As the nation’s affordable housing crisis continues to impact American families and communities, we urge the House of Representatives to consider this legislation for immediate passage.”
The National Housing Conference (NHC) is also encouraging passage of the bill.
“By modernizing outdated housing programs, reducing unnecessary barriers to development, and increasing flexibility for local communities, the Housing for the 21st Century Act helps create the conditions needed to build and preserve more affordable homes across America,” says David M. Dworkin, NHC president and CEO. “The bill also appropriately emphasizes transparency, consumer protections, and accountability.”