Save Affordable Housing Act of 2025

The Save Affordable Housing Act of 2025 would repeal the “qualified contract” option that currently allows some Low-Income Housing Tax Credit (LIHTC) properties to exit their extended-use (affordability) commitments through a buyout process. In practical terms, the bill tightens the long-term affordability requirements by removing an exit route for projects seeking to end restrictions after the initial 15-year credit period, thereby preserving affordable housing for a longer period. The bill creates transitional provisions for older projects (allocations prior to 2025 or certain financed projects) and requires updated rules for valuing existing projects—specifically, fair market value must consider both the low-income and non-low-income portions and rent restrictions that ensure continued affordability. It also makes conforming organizational and terminology changes and sets a general effective date with specific transitional rules for projects that submit certain requests after enactment. In short, the bill is designed to strengthen and preserve long-term affordability in LIHTC properties by removing a prior exit option and tightening how existing projects are valued and treated under the extended-use rules.