The House of Representatives overwhelmingly passed the Housing for the 21st Century Act, a key bill that includes a number of provisions aimed at addressing the nation’s affordability crisis.
One of the proposals seeks to increase the public welfare investment (PWI) cap from 15% to 20%, unlocking additional capacity for banks to invest in affordable housing and community development.
The bill, H.R. 6644, also calls for updating the HOME Investment Partnerships and Community Development Block Grant programs and increasing the maximum multifamily loan limits for mortgage insurance programs administered by the Federal Housing Administration.
“The Housing for the 21st Century Act provides a set of common sense, bipartisan housing proposals that would increase the supply of affordable housing at a time when housing affordability is top of mind in every part of the country,” said Emily Cadik, CEO of the Affordable Housing Tax Credit Coalition (AHTCC). “In particular, the proposal to lift banks’ public welfare investment cap would unlock billions of additional private-sector investment to support affordable housing development using the low-income housing tax credit (LIHTC), the nation’s most successful tool for producing affordable rental housing. We applaud the House for passing this important legislation.”
When Congress last raised the PWI cap from 10% to 15% in 2006, it led to a significant increase in community investment, with national bank PWIs growing from $3.1 billion in 2005 to $27.9 billion in 2024, according to the AHTCC.
Cadik’s organization noted that a new increase will help expand the availability of capital and help maximize the impact of the recent expansion of the LIHTC program.
Following the 390-9 vote in the House on Monday, the bill moves to the Senate, which has its own comprehensive housing legislation—the ROAD to Housing Act. Although the bills have several areas of alignment, including raising the PWI cap, a final version must still be worked out.
“Today’s vote was a critical step toward enacting bipartisan legislation that can help expand investment and create the affordable housing supply that American families need,” said Sarah Brundage, president and CEO of the National Association of Affordable Housing Lenders. “We applaud members of Congress for coming together around this critical issue, and we look forward to working with both the House and Senate to see affordable housing legislation signed into law.”
Other advocates also applauded the passage of the House legislation, which was led by Financial Services Committee chairman French Hill (R-Ark.) and ranking member Maxine Waters (D-Calif.).
“The housing shortage did not happen overnight,” said David M. Dworkin, president and CEO of the National Housing Conference. “We got into this crisis one unit at a time, and we will get out of it the same way—one unit at a time, through a range of coordinated strategies that expand supply, reduce costs, and improve access to affordable homes. There is no magic wand to fix this crisis, but the Housing for the 21st Century Act is an important step forward.”
The House passage of H.R. 6644 builds on the growing support to address the nation’s affordability crisis. In 2025, lawmakers passed the One Big Beautiful Bill, which boosted the LIHTC program.
“Housing affordability is a top concern for homeowners, renters, and communities across the country,” said Bob Broeksmit, president and CEO of the Mortgage Bankers Association. “Today’s overwhelming bipartisan vote signals meaningful legislative momentum to expand supply, improve affordability, and modernize housing policy.”
“It’s encouraging to see bipartisan housing legislation continue to advance,” added Dennis Shea, executive vice president of the Bipartisan Policy Center. “The Housing for the 21st Century Act shows the nation’s housing crisis is no longer a silent problem and that lawmakers from both parties are building real momentum behind practical reforms to expand housing supply and improve affordability, even as work continues in the Senate.”