Save Affordable Housing Act of 2025

The "Save Affordable Housing Act of 2025" amends the Internal Revenue Code of 1986 to modify rules governing the Low-Income Housing Tax Credit (LIHTC). Its primary purpose is to **prospectively repeal** the "qualified contract exception" for certain affordable housing projects. This exception previously allowed owners to potentially exit affordability commitments after 15 years, which could lead to the loss of affordable units. Specifically, the bill eliminates the qualified contract option for buildings that receive an allocation of housing credit dollar amounts on or after January 1, 2025. For projects allocated credits before this date, the qualified contract option remains available. Additionally, for existing projects where a housing credit agency may purchase the property, the bill clarifies that the **fair market value** determination must explicitly factor in the ongoing rent restrictions required for the low-income units, ensuring their continued affordability. These changes aim to strengthen the long-term affordability of LIHTC-financed housing.