H.R. 5219 – Affordable Housing Equity Act of 2021

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Updated February 8, 2026 at 6:35 AM UTC

The Affordable Housing Equity Act of 2021 changes the federal low‑income housing tax credit rules. It requires each state to set aside up to 90% of its housing credit ceiling for projects that serve extremely low‑income households, and it raises the credit amount for those projects by allowing a 150% basis calculation. The changes apply to allocations made after Dec. 31 2021 and end after Dec. 31 2031. The bill affects developers and taxpayers who claim the low‑income housing tax credit.

Key Provisions

States must reserve up to 90% of their housing credit ceiling for projects where at least 20% of units are rent‑restricted and serve households with income at or below 30% of area median income or 100% of the federal poverty line.
States cannot opt out of this set‑aside requirement.
The set‑aside provision expires after Dec. 31 2031.
Projects meeting the extremely low‑income definition and deemed financially infeasible may receive an increased credit, with the eligible basis of the qualifying portion calculated at 150% of its normal amount.
The amendments take effect for allocations and credit determinations made after Dec. 31 2021.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 10, 2021

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HouseIntro Referral

Introduced in House

September 10, 2021

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 10, 2021

Bill Text

Latest available legislative text

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Introduced in HouseIssued September 10, 2021

I

117th CONGRESS

1st Session

H. R. 5219

IN THE HOUSE OF REPRESENTATIVES

September 10, 2021

Mr. Gomez (for himself and Ms. DelBene) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to designate projects serving extremely low-income households for purposes of allocating the State housing credit ceiling and determining an increased amount of low-income housing tax credit.

1.

Short title

This Act may be cited as the Affordable Housing Equity Act of 2021.

2.

Buildings designated to serve extremely low-income households

(a)

Reserved State allocation

(1)

In general

Section 42(h) of the Internal Revenue Code of 1986 is amended—

(A)

by redesignating paragraphs (6), (7), and (8) as paragraphs (7), (8), and (9), respectively; and

(B)

by inserting after paragraph (5) the following new paragraph:

(6)

Portion of State ceiling set-aside for projects designated to serve extremely low-income households

(A)

In general

Not more than 90 percent of the portion of the State housing credit ceiling amount described in paragraph (3)(C)(ii) for any State for any calendar year shall be allocated to buildings other than buildings described in subparagraph (B).

(B)

Buildings described

A building is described in this subparagraph if 20 percent or more of the residential units in such building are rent-restricted (determined as if the imputed income limitation applicable to such units were 30 percent of area median gross income) and are designated by the taxpayer for occupancy by households the aggregate household income of which does not exceed the greater of—

(i)

30 percent of area median gross income, or

(ii)

100 percent of an amount equal to the Federal poverty line (within the meaning of section 36B(d)(3)).

(C)

State may not override set-aside

Nothing in subparagraph (F) of paragraph (3) shall be construed to permit a State not to comply with subparagraph (A) of this paragraph.

(D)

Termination

This paragraph shall not apply to allocations after December 31, 2031.

.

(2)

Conforming amendment

Section 42(b)(4)(C) of such Code is amended by striking (h)(7) and inserting (h)(8).

(b)

Increase in credit

Section 42(d)(5) of such Code is amended by adding at the end the following new subparagraph:

(C)

Increase in credit for projects designated to serve extremely low-income households

(i)

In general

In the case of any building—

(I)

which is described in subsection (h)(6)(B), and

(II)

which is designated by the housing credit agency as requiring the increase in credit under this subparagraph in order for such building to be financially feasible as part of a qualified low-income housing project,

subparagraph (B) shall not apply to the portion of such building which is comprised of such units, and the eligible basis of such portion of the building shall be 150 percent of such basis determined without regard to this subparagraph.

.

(c)

Effective date

The amendments made by this section shall apply to allocations, and determinations, of housing credit dollar amount after December 31, 2021.