Whitehouse Reintroduces Legislation to Tackle Housing Affordability Crisis

Affordable Housing Construction Act would expand the supply of housing financed by the Low-Income Housing Tax Credit

Washington, DC - U.S. Senator Sheldon Whitehouse (D-RI) has reintroduced the Affordable Housing Construction Act, legislation to address the housing affordability crisis that's squeezing Rhode Island families. Whitehouse's bill would more than triple the size of the Low-Income Housing Tax Credit (LIHTC) and deliver additional funding for sustainable, accessible, and energy-efficient housing developments. The bill would also loosen financing requirements and extend the required length of time that the housing must remain affordable from 30 years to 50 years.

"Rhode Island families are paying the price for decades of sluggish housing supply investment, too often getting priced out of the neighborhoods where they want to live. My legislation would help bring down skyrocketing rents by increasing the supply of affordable rental homes in the state," said Whitehouse.

The shortage of affordable housing costs the American economy an estimated $2 trillion each year. The United States is facing a shortage of an estimated 7.2 million rental homes, and development has been unable to keep up with rising demand. High housing costs reduce disposable income and economic mobility, stifling economic opportunities for those who can no longer afford housing in their communities. In Rhode Island, no municipality is affordable for the typical renter or homebuyer, and a third of households are severely cost burdened, paying more than 30 percent of their income towards housing costs.

Whitehouse's Affordable Housing Construction Act would decrease the cost of rent for lower-income Americans by significantly expanding the nation's supply of housing financed under the LIHTC program. LIHTC is the nation's most important federal program for affordable housing construction. The credit has financed the construction of 3.9 million housing units since its creation in 1986 and produces an average of 115,000 affordable rental units annually. However, the credit is oversubscribed, with too many eligible projects competing for too few funds.

The updated legislation would also eliminate the "qualified contract" process for housing developments financed with LIHTC, reforming a loophole that once allowed LIHTC owners to discontinue affordability restrictions prematurely.

The Affordable Housing Construction Act specifically would:

• Make the 2018 temporary 12.5 percent boost to LIHTC permanent;
• Triple both the LIHTC state allocation and the small state minimum beginning in 2027;
• Set aside one-third of each state allocation for boosts to projects that meet special requirements, such as paying a prevailing wage, using renewable energy sources, proximity to public transportation, providing accessible units, or allocating at least 20 percent of the units for extremely low-income renters;
• Repeal the "qualified contract" loophole that allows developers to prematurely pull units out of the required affordability period;
• Lower the private activity bond threshold for the rehabilitation credit from 50 percent to 15 percent; and
• Extend the required affordability period for LIHTC buildings from 30 to 50 years.

The Affordable Housing Construction Act would result in at least an additional $68 million annually for affordable housing development in Rhode Island-creating hundreds of additional affordable units in the state each year, according to an analysis by RI Housing.

Senator Jack Reed (D-RI) cosponsors the legislation. The legislation is endorsed by the Rhode Island Executive Office of Housing, Housing Works RI, RIHousing, Housing Network of Rhode Island, and the Rhode Island Coalition to End Homelessness.

"In RI, since 2020, construction material costs have risen 40 percent; between 2018 and 2024, home prices rose 65 percent and rents 60 percent, while wages in our state rose only 29 percent. Thanks to federal recovery act funding and other state resources, RI has made some progress with housing permits reaching its highest level in decades - 3,778 issued in 2025 and more than 2,100 certificates of occupancy issued. To maintain our progress, much more work is needed in RI and across the country to address housing affordability. Senator Whitehouse's Affordable Housing Construction Act provides critical funding/financing tools needed to implement the 21^stCentury ROAD to Housing Act. HWRI thanks Senator Whitehouse and our congressional delegation for their strong support of housing funding and financing and urges Congress to continue their bi-partisan efforts to ensure that every one in every state has a healthy and affordable place to call home," said Brenda Clement, Executive Director of Housing Works RI at Roger Williams University.

"Rhode Island cannot solve homelessness without significantly increasing the supply of homes that people with the lowest incomes can actually afford. The Affordable Housing Construction Act would bring critical new resources to Rhode Island while strengthening the long-term affordability of those homes. The availability of deeply affordable housing is often the difference between having a place to call home and remaining in crisis. We are proud to support Senator Whitehouse's continued leadership and this important investment in Rhode Island's housing future," said Colby O'Brien, Executive Director of the Rhode Island Coalition to End Homelessness.

"Rhode Island is working to create more homes and expand access to housing that Rhode Islanders can afford, but we cannot meet the scale of this need alone," said Rhode Island Secretary of Housing Deborah Goddard. "Senator Whitehouse's Affordable Housing Construction Act would strengthen the federal tools that make affordable housing possible, helping communities build and preserve more homes while creating greater long-term stability for Rhode Islanders. We are grateful to Senator Whitehouse for continuing to champion policies that recognize the importance of sustained investment in affordable housing, and we are proud to support this legislation."

"Rhode Island needs more affordable homes, but we also need to make sure those homes help create healthy, accessible, sustainable communities for the long term. This year's version of the Affordable Housing Construction Act recognizes that building affordable housing is about more than increasing the number of units, it's about making strategic investments in homes that are accessible, energy efficient, and connected to jobs, services, and transportation. By directing additional resources towards complimentary priorities like transit-oriented development, accessibility, and energy sustainability and improvements, this legislation can help communities build affordable housing that works for Rhode Islanders today and for generations to come. We're grateful to see these priorities reflected in the federal conversation around expanding the resources available for affordable housing," said Melina Lodge, Executive Director of the Housing Network of Rhode Island.

"Low-Income Housing Tax Credits are one of our most powerful tools to encourage the development of much-needed affordable housing," said Carol Ventura, CEO & Executive Director of RIHousing. "We wholly support Senator Whitehouse's Affordable Housing Construction Act, which would expand the scope of LIHTC, offering further incentives to developers while extending the affordability period for renters. As we continue to face a difficult housing market, it is critical that we bolster our existing programs and seek out innovative ways to support housing development."

Whitehouse is focused on ensuring more Rhode Islanders have access to affordable housing and a stable foothold in the middle class. In 2025, Whitehouse introduced the First-Time Homebuyer Tax Credit Act, bicameral legislation which would support homeownership among lower- and middle-income Americans by establishing a refundable tax credit worth up to 10 percent of a home's purchase price - up to a maximum of $15,000 - for first-time homebuyers.

The full text of the legislation is available here.