Changes tax and program rules for the federal affordable housing credit and related tax-exempt bond financing. It revises how state allocation amounts are set (introducing a per-capita and minimum amount that are indexed), updates who counts as eligible tenants for housing tax benefits, tightens and clarifies credit eligibility and rehabilitation rules (including disaster protections), treats certain rural and Indian areas as ‘‘difficult development areas,’’ revises refunding rules for certain exempt-facility bonds, and replaces terminology from “low-income” to “affordable.” Many provisions take effect for calendar/tax years beginning after December 31, 2024, and for tax credit allocations or buildings placed in service after December 31, 2025; some rules use enactment-relative effective dates.

The bill also directs greater transparency and data sharing across government about the affordable housing credit program, asks states to consider tribal housing needs in allocation plans, and encourages removing zoning and land-use barriers through incentives in the credit program. It contains multiple technical and substantive tax-code amendments that affect developers, owners, state housing agencies, bond issuers, and low- and moderate-income renters, and will require administrative changes at state agencies and among bond and tax-credit market participants.