From Day One executive orders to the landmark One Big Beautiful Bill Act, explore how current federal policy is cutting red tape, expanding tax credits, opening federal land, and building the foundation for 1.2 million new affordable homes over the next decade.
New Affordable Homes by 2035
HUD Lending for Conversions
Acres Federal Land Under Review
Permanent LIHTC Increase
Policy Framework
A comprehensive approach to solving America's housing crisis through deregulation, tax incentives, land reform, and private-sector partnership.
Federal regulations account for 25% of new home construction costs. Executive orders direct agencies to identify and eliminate rules that increase housing costs, streamline permitting, and reduce development timelines.
The One Big Beautiful Bill Act permanently expands LIHTC, makes the New Markets Tax Credit permanent, extends Opportunity Zones, and restores 100% bonus depreciation — projected to finance 1.22 million affordable homes.
The HUD-Interior Joint Task Force on Federal Land for Housing is inventorying 500+ million acres of federal land to identify parcels suitable for residential development and streamline transfer to states and localities.
Incentivizing higher-density housing in appropriate areas, adaptive reuse of commercial buildings, and eliminating restrictive zoning that prevents multifamily development near jobs and transit.
The executive order banning large institutional investors from purchasing single-family homes puts families first, with first-look policies and Fannie/Freddie directed to purchase $200B in mortgage-backed securities.
Leveraging private capital, faith-based organizations, and market-based solutions rather than federal mandates — working with builders, developers, lenders, and community organizations to increase housing supply.
Executive Actions
Key executive orders and agency actions taken to address the housing affordability crisis.
Day One order directing all agencies to deliver emergency price relief including lowering housing costs and expanding supply. Directs review of regulations accounting for 25% of new construction costs.
HUD and Interior establish task force to inventory underutilized federal lands suitable for residential development, streamline land transfers to states and localities, and promote affordable housing.
Temporary FHA waivers expand land available for development and decrease construction costs for single-family properties. Rescission of prior policies shortens time for foreclosed homes to reach market.
Landmark legislation permanently expands LIHTC (12% increase in 9% allocations, 50% test lowered to 25%), extends Opportunity Zones, makes NMTC permanent, and restores 100% bonus depreciation.
Executive order preventing federal programs from facilitating sales of single-family homes to large institutional investors. Establishes first-look policies for owner-occupants. Directs Fannie/Freddie to purchase $200B in MBS.
Executive order expanding U.S. timber production to reduce lumber costs. Continued deregulatory actions to lower building material costs and streamline federal agency building requirements.
Programs & Policies
Explore the federal, state, and local programs powering America's housing expansion.
Created by the 2017 Tax Cuts and Jobs Act and now permanently extended and enhanced by the One Big Beautiful Bill Act, Opportunity Zones (OZs) provide powerful tax incentives for investment in designated low-income communities across all 50 states.
Over three-fourths of tracked OZ investment has gone into housing, financing nearly 200,000 homes since 2018. Qualified opportunity funds have raised $40.9 billion in equity as of March 2025.
Investors who reinvest capital gains into Qualified Opportunity Funds (QOFs) receive tax deferral on those gains. For investments held 10+ years, any appreciation on the OZ investment is permanently excluded from capital gains tax. The OBBBA extended and modified the program, with new attention to rural areas and enhanced transparency requirements.
Opportunity Zones have become a critical tool for multifamily development in underserved communities. The program incentivizes patient capital by rewarding long-term holds, making it ideal for ground-up construction and adaptive reuse projects that take years to stabilize. Combined with LIHTC, OZ investments can create deeply affordable housing with compelling investor returns.
The One Big Beautiful Bill Act permanently extends Opportunity Zones with modifications including enhanced reporting and transparency, new designations with attention to rural communities, and continued capital gains tax benefits for long-term investors. The ROAD to Housing Act further directs HUD to prioritize OZ-based projects for competitive grants related to housing development.
The LIHTC is the nation's most important tool for creating affordable rental housing. Since 1986, it has financed approximately 3.6 million apartments. The One Big Beautiful Bill Act delivers the largest expansion of the program in over two decades.
Novogradac estimates the OBBBA LIHTC provisions could finance 1.22 million additional affordable rental homes over 2026–2035 — a transformational expansion of the program.
Permanent 12% Increase in 9% Allocations: Starting in 2026, each state's per capita 9% LIHTC allocation is permanently increased by 12%. This means more competitive 9% deals can be awarded each year, with stronger investor appeal due to simpler capital stacks and deeper subsidy.
Permanent 25% Bond Test: The private activity bond (PAB) financing threshold is permanently lowered from 50% to 25% of land and building costs. This is transformational — more than 20 states were previously running out of bond cap. States can now stretch limited PAB volume much farther, unlocking far more 4% LIHTC deals.
100% Bonus Depreciation: Restored permanently for property placed in service after January 19, 2025. This front-loads tax losses for investors, improving after-tax returns and enhancing equity pricing, especially when combined with cost segregation studies.
The LIHTC program leverages private investment to build affordable housing without direct federal spending. For every dollar of tax credit, approximately $0.85–$0.95 of equity is generated. The permanent nature of these expansions provides the long-term certainty developers and investors need to commit capital to multiyear projects.
The federal Historic Tax Credit provides a 20% income tax credit for the qualified rehabilitation of certified historic structures. It's a critical tool for adaptive reuse — converting old office buildings, schools, churches, factories, and municipal buildings into housing.
Adaptive reuse using Historic Tax Credits is creating housing from America's existing building stock — preserving community character while solving housing shortages. A record 70,700 conversion units are in the pipeline for 2025.
When combined with LIHTC and other incentives, the HTC significantly reduces the equity gap in conversion projects. Buildings don't need existing landmark status — there's an application process through the National Park Service to establish eligibility. Properties contributing to historic districts or individually eligible for the National Register can qualify.
Post-pandemic office vacancy rates above 20% have created historic acquisition opportunities. Yardi Matrix research indicates approximately 1.3 billion square feet of office space is suitable for conversion to housing. Cities like New York (8,310 units in pipeline), Washington D.C. (5,820 units), and Chicago (2,822 units) lead the conversion wave — all heavily leveraging Historic Tax Credits.
While advocates pushed for HTC improvements in the OBBBA — reverting to a one-year credit from the current five-year and repealing the basis reduction — these provisions were not included in the final bill. The HTC remains available at 20% but continues under the five-year credit structure. State-level historic credits in many jurisdictions supplement the federal credit.
Restrictive zoning has been identified by the administration as a leading factor in the growth of housing prices. Executive orders and federal incentives are encouraging state and local governments to reform outdated land-use rules that constrain housing supply.
"These regulatory barriers are the leading factor in the growth of housing prices" and "drive down the supply of affordable housing" in markets across the United States. — White House Executive Order
Because zoning is primarily under the jurisdiction of state and local governments, the federal approach uses incentives rather than mandates. The ROAD to Housing Act directs HUD to publish guidelines and best practice frameworks for state and local zoning and land-use policies, while also providing technical assistance to communities seeking reform.
The White House Council on Eliminating Regulatory Barriers to Affordable Housing is assessing overly restrictive zoning laws, excessive energy and water efficiency mandates, impediments to higher-density projects, time-consuming permit procedures, complex labor requirements, and inordinate development impact fees.
New York's City of Yes initiative changes zoning to allow more housing and conversion projects. LA's Adaptive Reuse Ordinance enables by-right conversions. Multiple states including Florida, Montana, Rhode Island, Washington, and Arizona have relaxed zoning to facilitate conversions. These models demonstrate what's possible when zoning serves housing rather than blocking it.
The federal government manages approximately 640 million acres — about 28% of all land in the United States. The Trump administration launched a historic initiative to identify underutilized federal land suitable for residential development.
The Joint Task Force on Federal Land for Housing will inventory underutilized federal properties and facilitate their transfer or lease to states or localities to address housing needs, ensuring affordability remains central.
Announced March 17, 2025, the Joint Task Force brings together HUD and the Department of the Interior to identify locations where housing needs are most pressing and match them with suitable federal parcels. The DOI oversees more than 500 million acres, and officials have stated "much of it" is viable for residential development.
Not all federal land is equal for housing purposes. The most promising opportunities include surplus government buildings (post offices, administrative buildings) in existing cities and towns, infill parcels in growing communities, and federal land adjacent to established infrastructure. In Nevada, where 85% of land is federal, cities like Fernley need land transfers to build roads, utilities, and housing for rapidly growing populations.
In 2024, the BLM partnered with HUD to sell 20 acres of unused federal land near Las Vegas for $2,000 — well below its appraised value of nearly $20 million — specifically for affordable housing construction. This model of targeted, below-market transfers for housing could be replicated across the country.
America's housing shortage — estimated at 4 to 7 million units — cannot be solved without building more densely in existing communities. The administration's approach combines deregulation with market incentives to unlock density where it's needed most.
Adaptive reuse conversions activate apartment density in the heart of downtown markets that otherwise could not be built due to zoning or land availability — and the converted properties are ultimately more financeable with Fannie Mae and Freddie Mac multifamily products.
The conversion pipeline has quadrupled since 2021, with 70,700+ units expected in 2025. Class B and C office buildings in downtown cores are being reimagined as mixed-income residential communities. Construction costs of $250,000–$300,000 per unit — often 20–40% below ground-up — make conversions financially compelling when paired with tax credits and municipal incentives.
Cities like Chicago are selling vacant lots for $1 to incentivize construction of walk-up multifamily buildings that had gone "missing" due to decades of disinvestment. These 3-flats and 6-flats add gentle density to existing neighborhoods without the scale of high-rise development. The approach creates pathways to homeownership through owner-occupied multi-unit buildings.
The ROAD to Housing Act eliminates the permanent chassis requirement for manufactured homes and directs HUD to review FHA financing barriers for modular housing. The OBBBA also delayed new Manufactured Home Construction standards to reduce compliance costs. These reforms support faster, cheaper housing production at scale.
By the Numbers
Measurable outcomes from federal housing policy actions.
Additional affordable homes financed by LIHTC expansion (2026–2035)
Fannie/Freddie MBS purchases directed to lower borrowing costs
Average mortgage rate down from 7.04% at start of term
Permanent annual New Markets Tax Credit allocation
Conversion units in pipeline — record high for 2025
New bond threshold unlocking billions in 4% LIHTC deals
Acres of federal land being inventoried for housing potential
Misplaced HUD funds uncovered and redirected
Get Involved
Whether you're developing affordable housing with LIHTC, converting an office building with Historic Tax Credits, investing through an Opportunity Zone, or developing on newly available federal land — our team structures the capital stack to make projects happen.
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