WASHINGTON (August 7, 2025) – The Federal Housing Finance Agency (FHFA) has announced that it will raise the caps on how much each government-sponsored enterprise (GSE) can invest in the Low-Income Housing Tax Credit (LIHTC) each year, from $1 billion to $2 billion. The GSEs are important investors in LIHTC bonds, which help provide the cash developers need to build and renovate low/moderate income properties.
"We thank Director Pulte and his team for taking action to expand the supply of housing and break down barriers to homeownership. These are important efforts that we have long supported. Doubling the contributions to the development of LIHTC properties provides incentives to investors to support housing development, while the developer gets access to critical capital for construction," says Shannon McGahn, NAR Executive Vice President and Chief Advocacy Officer. "This is an important step to ease cost burdens in low-and moderate-income areas and we appreciate the Director's leadership role in this market."
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The National Association of Realtors® is involved in all aspects of residential and commercial real estate. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics. For free consumer guides about navigating the homebuying and selling transaction processes – from written buyer agreements to negotiating compensation – visit facts.realtor.
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