National Housing Conference applauds housing wins in the newly passed Reconciliation Package
Washington, D.C. – RealEstateRama – David M. Dworkin, President and CEO of the National Housing Conference (NHC), released the following statement on the passage of H.R. 1, the One Big Beautiful Bill Act:
“The housing provisions included in this bill are the most consequential and positive housing legislation in decades. Key provisions include an expansion of the Low-Income Housing Tax Credit (LIHTC), permanent preservation of the existing mortgage interest deduction, reinstatement of the mortgage insurance premium deduction, an expanded and permanent Opportunity Zones incentive, and permanent extension of the New Markets Tax Credit.
LIHTC remains the nation’s most effective tool for building and preserving affordable rental housing. This legislation delivers a significant expansion of the credit by incorporating key elements of the Affordable Housing Credit Improvement Act, aimed at boosting the supply of rental homes across urban, rural, and tribal communities. It establishes a permanent 12% increase in the allocation for the 9% Housing Credit and reduces the bond financing threshold from 50% to 25%. Together, these changes are expected to produce or preserve more than one million additional affordable rental homes between 2026 and 2035.
The mortgage interest deduction and mortgage insurance premium deduction provisions ensure that millions of American homeowners—especially middle-class families—can continue to build wealth and achieve long-term stability through homeownership.
These measures reflect a balanced approach to strengthening the nation’s housing ecosystem, supporting both the development of multifamily rental housing and the financial well-being of single-family borrowers.
Strengthening and making Opportunity Zones permanent, especially with its increased emphasis on rural communities, will help spur long-term investment in distressed communities by incentivizing capital to flow into areas that need it most. These zones have already begun transforming neighborhoods by supporting local development, job creation, and housing expansion. The bill does not include recommended affordable housing enhancements, which we look forward to working on in the future. The bill’s permanent extension of the New Markets Tax Credit, with $5 billion in annual allocation authority, will provide a sustained source of investment to support economic growth and community revitalization in underserved areas.
While NHC strongly supports the bill’s significant housing investments, we recognize that other provisions will adversely affect many families across the country. Housing is a continuum, and there is much more work to be done.
NHC looks forward to working with the administration and Congressional leaders to craft bipartisan housing legislation that includes the Neighborhood Homes Investment Act, legislation that would relieve low- and moderate income first-time homebuyers of the burden of paying tax on Employer Assisted Housing grants and loan forgiveness, the Affordable Housing Bond Enhancement Act, and other bipartisan proposals.
We also remain deeply concerned about the President’s FY 2026 discretionary budget request that would drive up homelessness and force apartment owners and operators out of business. The budget proposal cuts nearly 44% from the Department of Housing and Urban Development – gutting critical housing and homelessness programs and eliminating highly successful and bipartisan programs like HOME and Family Self-Sufficiency. Further, the budget calls for the elimination of NeighborWorks® America – a highly effective organization that serves the housing needs of communities throughout the United States, especially in underserved rural areas in red states. These proposed reductions would have a devastating impact on millions of Americans, particularly the most vulnerable among us, and would directly lead to increased homelessness across the country and the bankruptcy of many private businesses that own and operate affordable housing. It is critical that the gains made in the One Big Beautiful Bill Act not be undermined by cuts in other existing and highly successful affordable housing programs.
NHC will continue to work with leaders on both sides of the aisle to ensure that housing remains a bipartisan issue and that proven programs are protected and strengthened, not weakened.”
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About the National Housing Conference (NHC): Founded in 1931, the National Housing Conference is the oldest and broadest housing coalition in America. NHC is a diverse continuum of affordable housing stakeholders who convene and collaborate through dialogue, advocacy, research, and education, to develop equitable solutions that serve our common interest—an America where everyone is able to live in a quality, affordable home in a thriving community. Politically diverse and nonpartisan, NHC is a 501(c)3 nonprofit organization. To learn more about NHC, visit www.nhc.org.
Contact:
Kara Beigay
202.466.2121 ext 284
