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By-Laws

Legislative Updates

Federal

  1. Reconciliation Package (One Big Beautiful Bill Act)
    1. Passed from the House on May 22, The House’s version of this bill includes:
      1. The bill restores the 12.5% LIHTC allocation increase for 2026 – 2029, for 9% LIHTC.
      2. The bill seeks to reduce the 50% financed-by test for housing financed by private activity bonds (PABs) to 25%.
        1. The 50% test is a federal requirement under the Internal Revenue Code. For a project to qualify for automatic 4% LIHTC at least 50% of the aggregate basis cost must be financed with tax-exempt private activity bonds, which are issued by a governmental entity.
    2. On June 16, the Senate Finance Committee released the tax portion of the reconciliation package, which includes:
      1. A permanent 12% LIHTC allocation increase.
      2. Lowering the 50% test to 25% permanently.
      3. The House version sought to better align Opportunity Zones with the creation of affordable housing, and the Senate version does not.
    3. The Senate is currently working under an artificial deadline of July 4th to pass the President’s bill. Once the bill passes in the Senate, it will be sent back to the House where it is expected to receive pushback from Republican fiscal hawks.
  2. FY 2026 Appropriations
    1. The Trump Administration has published their full budget request, which includes cutting funding to HUD by $32 billion. This includes a $26.7 billion reduction in federal rental assistance programs, while redesigning the programs into state-based formula grants.
    2. In addition to the state-based grant provision, the administration has also proposed a two-year limit on rental assistance for adults without disabilities.
      1. Term limits and a state-based formula are not seen as realistic possibilities for implementation as they would cause the bill to lose it’s privileged status, and would require 60 votes in the Senate.
    3. Proposed cuts to HUD’s self-sufficiency programs totaling $196 million.
    4. ecretary Turner testified in June in front of the House and Senate THUD subcommittees. When pressed for specific information regarding the Presidential budget proposal, Sec. Turner indicated the goal in cutting funding is to streamline the agency and cut waste and fraud.
    5. Next up:
      1. After the reconciliation package is finalized, the House will work on their appropriations bill and typically, the Senate version will be released after.
      2. Expectation is that the House bill will more closely resemble the President’s budget and the Senate’s version will be similar to what has passed in past years.

State

  1. Squatter Legislation
    1. Unanimously approved in the House, makes it easier for owners to gain control of their units from squatters. Removes the legal standing of the squatter. This bill has been sent to the Governor’s desk.
  2. Prevailing Wage Legislation – effective July 1, 2025
    1. The legislation requires the higher prevailing wage between federal and state rates must be paid on public works projects receiving federal funding. If during the life of a project the prevailing wage increases, the new amounts will need to be paid.