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H.R. 4572House119th Congress (2025-2027)In Committee

Save Affordable Housing Act of 2025

Sponsored by Joe NeguseRep. Joe Neguse (D-CO)
Introduced July 21, 2025

AI-Generated Summary

Updated November 23, 2025 at 11:21 PM UTC

The Save Affordable Housing Act of 2025 amends the tax code to end a loophole that lets developers skip extended low‑income housing commitment requirements for the low‑income housing tax credit. It applies to buildings that got credit allocations before 2025 or that rely on certain bond financing, and it requires both the low‑income and non‑low‑income parts of a building to be valued together for credit purposes. The changes take effect immediately, with specific rules for existing projects that request them after the law is passed.

Key Provisions

  • Eliminates the “qualified contract” exception that lets developers avoid extended low‑income housing commitment rules for the low‑income housing tax credit.
  • Defines which buildings are covered: those that received a credit allocation before January 1 2025, or that were partially financed with certain tax‑exempt bonds and received a determination that the credits are needed for the project’s financial feasibility.
  • Changes how the value of a building is calculated for the credit, requiring the fair‑market value of both the low‑income and non‑low‑income portions to be considered, with the housing credit agency taking rent‑restriction requirements into account.
  • Updates related code sections to reflect the removal of the exception and to rename “agreement” to “commitment” where needed.
  • Sets the amendments to take effect when the law is enacted, with the valuation rule changes applying only to projects that submit a written request after enactment.

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

July 21, 2025

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HouseIntro Referral

Introduced in House

July 21, 2025

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 21, 2025

Bill Text

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Introduced in HouseIssued July 21, 2025

I

119th CONGRESS

1st Session

H. R. 4572

IN THE HOUSE OF REPRESENTATIVES

July 21, 2025

Mr. Neguse 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 repeal the qualified contract exception to the extended low-income housing commitment rules for purposes of the low-income housing credit, and for other purposes.

1.

Short title

This Act may be cited as the Save Affordable Housing Act of 2025.

2.

Repeal of qualified contract option

(a)

Termination of option for certain buildings

(1)

In general

Subclause (II) of section 42(h)(6)(E)(i) of the Internal Revenue Code of 1986 is amended by inserting in the case of a building described in clause (iii), before on the last day.

(2)

Buildings described

Subparagraph (E) of section 42(h)(6) of such Code is amended by adding at the end the following new clause:

(iii)

Buildings described

A building described in this clause is a building—

(I)

which received its allocation of housing credit dollar amount before January 1, 2025, or

(II)

in the case of a building any portion of which is financed as described in paragraph (4) and which received before January 1, 2025, under the rules of paragraphs (1) and (2) of subsection (m), a determination from the issuer of the tax-exempt bonds or the housing credit agency that the building would be eligible under the qualified allocation plan to receive an allocation of housing credit dollar amount or that the credits to be earned are necessary for financial feasibility of the project and its viability as a qualified low-income housing project throughout the credit period.

.

(b)

Rules relating to existing projects

Subparagraph (F) of section 42(h)(6) of the Internal Revenue Code of 1986 is amended by striking the nonlow-income portion and all that follows and inserting the nonlow-income portion and the low-income portion of the building for fair market value (determined by the housing credit agency by taking into account the rent restrictions required for the low-income portion of the building to continue to meet the standards of paragraphs (1) and (2) of subsection (g)). The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out this paragraph..

(c)

Conforming amendments

(1)

Paragraph (6) of section 42(h) of the Internal Revenue Code of 1986 is amended by striking subparagraph (G) and by redesignating subparagraphs (H), (I), (J), and (K) as subparagraphs (G), (H), (I), and (J), respectively.

(2)

Subclause (II) of section 42(h)(6)(E)(i) of such Code, as amended by subsection (a), is further amended by striking subparagraph (I) and inserting subparagraph (H).

(d)

Technical amendment

Subparagraph (I) of section 42(h)(6) of the Internal Revenue Code of 1986, as redesignated by subsection (c), is amended by striking agreement and inserting commitment.

(e)

Effective date

(1)

In general

Except as provided in paragraph (2), the amendments made by this section shall take effect on the date of the enactment of this Act.

(2)

Rules relating to existing projects

The amendments made by subsection (b) shall apply to buildings with respect to which a written request described in section 42(h)(6)(H) of the Internal Revenue Code of 1986, as redesignated by subsection (c), is submitted after the date of the enactment of this Act.