Impact Growth Capital Newsletter

 This week at IGC:
Federal Housing Proposal to Expand LIHTC — Amazon Housing Equity Fund Commits $3.6 Billion in Affordable Housing

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Data as of 6/25/2025

Impact Growth Fund

Join Us In Solving The Affordable Housing Crisis

This week’s webinar has been rescheduled to next week.
Stay tuned for a registration link in the next newsletter.

Affordable Housing News

Federal Housing Proposal to Expand LIHTC

Affordable housing has been gaining traction with both private and institutional investors, and for good reason. The sector offers stability through consistently high occupancy and reliable, leveraged cash-on-cash returns. That profile appeals strongly to those targeting core and core-plus returns. As federal legislators consider sweeping new housing proposals, we are watching closely because these bills could significantly expand the affordable and workforce housing pipeline over the next decade.

At the heart of this momentum is a push to expand the Low-Income Housing Tax Credit (LIHTC), the government’s primary vehicle for financing affordable housing. The proposed Affordable Housing Credit Improvement Act would raise the credit rate from 9% to 12.5%, supporting at least 200,000 additional units, and relax requirements to better support housing for extremely low-income households, veterans, and underserved communities. Notably, the Senate bill would make this expansion permanent and extend eligibility to those earning up to 60% of area median income, a move that could stimulate workforce housing production.

Beyond tax credits, both House and Senate proposals include broader measures to unlock new development opportunities. These include expanding Opportunity Zones, with the Senate pushing to make them permanent, to encompass rural regions and tribal lands, while streamlining federal regulations that often delay and inflate project costs. OZs have already spurred $89 billion in investment and over 300,000 housing units since 2019. By leveraging tax incentives, they create compelling capital channels for developers and investors.

Impact Investing

Amazon Housing Equity Fund Commits $3.6 Billion in Affordable Housing

Amazon is making a significant impact in the affordable housing sector through its $3.6 billion Housing Equity Fund (HEF), launched in 2021. This initiative aims to create and preserve over 35,000 affordable homes across the Puget Sound region, Arlington, Virginia, and Nashville, Tennessee—areas where Amazon has a substantial presence. The fund provides low-interest loans and grants to developers, focusing on households earning 30% to 80% of the area median income, including essential workers like teachers and healthcare professionals. Notably, 95% of these homes are designed to remain affordable for 99 years, ensuring long-term community stability

Beyond funding, Amazon emphasizes transit-oriented development, with 94% of HEF-supported homes located within half a mile of public transportation. This placement reduces transportation costs for residents and enhances access to employment and services. Additionally, Amazon's Housing Equity Accelerator program supports diverse-led development firms, promoting inclusivity in the housing sector. To date, the fund has backed over 32 projects led by developers from underrepresented communities, contributing to a more equitable housing landscape.