HR 3126119th CongressIn Committee

Promoting Submetering for Affordable Housing Act

Introduced: Apr 30, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Promoting Submetering for Affordable Housing Act would boost the federal low-income housing tax credit (LIHTC) for certain affordable rental projects that install water submeters and let tenants access their meter readings. Specifically, if a building has 4 or more units, uses water submeters to bill each unit separately, and tenants can read the submeters within 72 hours of request (including in landlord-controlled areas), the project’s eligible basis for LIHTC would be increased to 105% of its otherwise determined basis. The change applies to projects that receive LIHTC allocations (or are financed with tax-exempt bonds and first taken into account under the bonding rules after enactment).

Key Points

1Creates a new eligibility provision: LIHTC projects that use water submetering and meet access requirements can receive a 5% increase in eligible basis (105% of the basis determined without this provision).
2Conditions to qualify: building with 4 or more units; water submeters used to bill each unit separately; tenants have access to read meters within 72 hours of request (including in landlord-controlled areas).
3Effect on credits: increasing the eligible basis increases the amount of LIHTC a project can claim, effectively raising the subsidy for qualified projects.
4Effective date: applies to projects that receive LIHTC allocations (or, for tax-exempt bond-financed projects described in 42(h)(4), first taken into account under 146) after the act’s enactment.
5Caption and scope: the act is titled the Promoting Submetering for Affordable Housing Act and specifically targets projects using water submetering as a means to potentially improve affordability and conservation.

Impact Areas

Primary group/area affected: Developers and owners of LIHTC-backed affordable housing projects, particularly those considering water submetering as part of project design and financing.Secondary group/area affected: Tenants in eligible properties (who gain access to meter readings and may benefit from more transparent water usage and potentially lower or more accurate bills); water utilities and property managers who implement submetering systems.Additional impacts: Potential improvements in water conservation and metering transparency; possible administrative considerations for compliance and meter reading logistics; minor impact on project financing terms due to higher eligible basis.

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