Affordable Housing Credit Improvement Act of 2023

HR 3238, the Affordable Housing Credit Improvement Act of 2023, updates the Low-Income Housing Tax Credit (LIHTC) program to increase the availability of affordable housing across the United States. The bill makes several key changes including increasing state funding formulas, modifying tenant eligibility rules to better serve vulnerable populations (such as domestic violence victims and students), and expanding credit eligibility for projects in rural and Native American communities. Specific provisions raise the credit for properties serving extremely low-income households, clarify rules around tenant income increases, and require housing providers to protect victims of domestic violence. The bill also updates terminology from "low-income" to "affordable" throughout the tax code and enhances program transparency through data sharing requirements. These changes aim to make the LIHTC program more effective at creating and preserving affordable housing units for low-income households nationwide.