Congress Passes Sweeping Reform Bill with Key Housing Provisions
On July 3, 2025, the U.S. House of Representatives passed—for a second time—the One Big Beautiful Bill Act, which was signed into law by President Trump on July 4. The bill underwent significant reconciliation changes after first passing the House in May, with the Senate approving an amended version on July 1 by a narrow 51-50 vote, thanks to Vice President Vance’s tie-breaker.
CARH’s Legislative & Policy Advisor Tom Reynolds and his team at Holland & Knight provided an in-depth analysis, noting that the Act delivers broad-reaching policy and regulatory changes across nearly every sector—including affordable housing.
Several provisions long supported by CARH made it into the final bill:
A permanent 12% increase to the 9% Housing Credit.
A reduction of the 50% test to 25% for 4% private activity bonds.
Unfortunately, the 30% rural basis boost—included in the original House version—was removed. While Senator Jacky Rosen attempted to reintroduce the rural incentive via amendment, it did not receive a vote. CARH will continue to advocate for rural housing support in future legislation.
The bill also makes significant changes to Opportunity Zones (OZs):
OZ incentives are now permanent, with new 10-year designation periods starting July 2026.
Eligibility is tightened to target genuinely distressed areas.
A new 30% basis boost for rural OZs and a reduction in the substantial improvement requirement (from 100% to 50%) will benefit rural developers.
As attention turns to Fiscal Year 2026 appropriations, CARH is closely monitoring funding bills, particularly for USDA Rural Development and HUD. With the President proposing to shift many HUD programs to state administration, a longer negotiation process is expected.
Florida CARH will continue to share updates as more information becomes available.
