The Texas Affiliation of Affordable Housing Providers (TAAHP) has announced that the Internal Revenue Service (IRS) will increase the low-income housing tax credit (LIHTC) and private-activity bond (PAB) volume caps for the upcoming year.

According to an October 25 press release from TAAHP, the IRS confirmed that the per-capita multiplier for the federal 9% LIHTC will reach $3 for the first time, marking a ten-cent increase from the previous year. This change represents a significant milestone in efforts to enhance affordable housing financing nationwide.

The IRS also announced a $5 increase in the per-capita multiplier for private activity bonds. The PAB ceiling will be determined by either $130 multiplied by the state population or a minimum of $388,780,000. This adjustment provides additional flexibility and funding potential for affordable housing projects.

Furthermore, according to TAAHP, the LIHTC rehabilitation per-unit minimum will rise to $8,500. This increase is deemed essential for encouraging the rehabilitation of existing housing stock.