In a major boost for affordable housing, the LIHTC per-capita multiplier has reached $3 per person for the first time, while the Private Activity Bond (PAB) per-capita multiplier is set at $130 per person for 2025. These multipliers determine the amount of tax credits and bonds available to fund affordable housing projects, calculated based on each state’s population.
Impact on Multifamily Affordable Housing:
1. Increased Financing for Developers: With a higher LIHTC multiplier, more tax credits are available, creating new opportunities for developers to fund multifamily rental projects. LIHTCs are crucial for lowering the financing gap in affordable housing.
2. Boost for Housing Supply: The increased PAB allocation supports more tax-exempt bond financing, a key tool for affordable housing construction and preservation, especially in states with high housing demand.
3. Greater Capacity to Address Housing Needs: These increases will allow states to fund more projects, addressing the affordability crisis by facilitating the development and preservation of additional rental units for low-income families.
Overall, these adjustments make it easier for developers to secure financing, supporting broader efforts to expand affordable housing access across the U.S.
