Rep. Lawler introduces multi-faceted housing plan

Representative Mike Lawler (R-N.Y.) announced a new sweeping legislative housing plan that looks to incentivize construction to produce more affordable housing through bipartisan provisions of several major housing bills. The plan, called the Revitalizing America's Housing Act, incorporates elements of the Affordable Housing Credit Improvement Act of 2023 and the Neighborhood Homes Investment Act, NHC’s top legislative priorities. It also includes elements of the Opportunity Zones Transparency, Extension and Improvement Act, calling for an elimination of the cap on the Rental Assistance Demonstration program, expanding Opportunity Zones, incentivizing zoning reforms, authorizing the Moving to Work demonstration, and creating incentives for small dollar mortgages, among many other provisions.

"This plan calls for a series of bipartisan reforms and policies that would incentivize construction and reduce unaffordability, would improve the available of supplies, land, and financing for builders, owners and purchasers, would address the health and safety of our communities’ housing, and would vastly improve oversight to ensure resources are being properly utilized and going where they’re needed,” said Rep. Lawler in the announcement. "The issues confronting our housing system are myriad and manifold. They require a comprehensive set of policy prescriptions to address.”

CFPB moves to make banking more open, industry reacts

The Consumer Financial Protection Bureau (CFPB) announced a new final rule aimed at enhancing consumer control over personal financial data and allowing them to switch providers more easily. The regulation activates the dormant Section 1033 of the Consumer Financial Protection Act enacted in 2010 and will move the United States towards an “open banking” system. This new regulation, set to be implemented in phases starting April 2026, will require financial institutions to provide consumers with free access to their financial information and the ability to transfer it to other providers. It also looks to enable consumers to comparison shop and move to competitors offering better rates and ban bait-and-switch data harvesting by only allowing third parties to deliver the product requested by the consumer.

The banking industry has responded with mixed reactions, with consumer advocates welcoming the change and other financial institutions expressing data security concerns. Two groups, the Bank Policy Institute and the Kentucky Bankers Association, quickly filed a suit against the rule alleging the CFPB is overstepping its authority and jeopardizing safety and soundness of the financial system.

“Many CBA members support an open-banking framework. Nevertheless, even if the Bureau has the statutory authority to utilize this rulemaking to introduce an open banking framework, this final rule severely misses the mark as it failed to incorporate much of the critical feedback provided by industry through the comment period,” said Consumer Bankers Association (CBA) president and CEO Lindsey Johnson.

Representative Patrick McHenry (R-N.C.), Chairman of the House Financial Services Committee, issued a statement in strong support of the rule. “Americans should have greater control over their sensitive financial data. Consumers should know where their data is going, how it’s used, and be able to terminate collection of their data by certain firms,” it reads. “This is progress for American innovation and consumers, but we can’t stop here. Congress must build on the bipartisan consensus regarding financial data privacy.”

Implementation of the changes is planned to occur in phases, with larger institutions expected to implement the rule by April 1, 2026, and smaller institutions will have until April 1, 2030.

“Too many Americans are stuck in financial products with lousy rates and service,” CFPB Director Rohit Chopra said in the announcement. “Today’s action will give people more power to get better rates and service on bank accounts, credit cards, and more.”

FHFA proposes governance changes to FHLBanks

The Federal Housing Finance Agency (FHFA) announced a proposed rule aimed at improving the governance of the Federal Home Loan Bank (FHLBank) System. This initiative seeks to update and clarify regulatory requirements on various corporate governance topics for the FHLBanks and their Office of Finance. The move is the latest in a series of changes FHFA has sought as part of their overall review of the FHLBanks that has been ongoing since 2023. The revisions would expand and modernize the areas of knowledge and experience for independent directors to include artificial intelligence; Community Development Financial Institution (CDFI) business models, climate risk, information technology and security, and modeling; clarify qualifying requirements for public interest independent directors; and require the FHLBanks to adopt new conflict of interest policies.

"The Federal Home Loan Bank System’s ability to provide liquidity to support its mission in a safe and reliable manner is dependent on the quality of its governance," said Director Sandra Thompson. "These proposed revisions will not only help ensure boards of directors demonstrate the knowledge, expertise, and experience to act in the public interest, but will also strengthen the System’s capacity to respond to developments and emerging risks in housing finance."

CDFI fund supports development of 26,000 units

The CDFI Fund announced the allocation of over $246.4 million in funding to support community development financial institutions (CDFIs) across the United States. The funding will be distributed to 48 organizations through the FY2023 round of the Capital Magnet Fund (CMF) to support the preservation, rehabilitation, development, and purchase of affordable housing, and is estimated to result in more than 26,400 affordable housing units. The CMF aims to enhance access to capital and promote economic opportunities in underserved communities. Over half of the organizations receiving awards note that they plan to focus on rural areas.

“Today’s awards will increase affordable housing supply and expand access to childcare and health care for families across America," said Secretary of the Treasury Janet Yellen. “These awards are projected to leverage nearly $9 billion in private and public sector resources to spur development in communities that need additional investment to create opportunities for communities to get ahead.”

VA houses nearly 50,000 homeless veterans  



The U.S. Department of Veterans Affairs (VA) announced it successfully housed 47,925 Veterans experiencing homelessness in 2024, exceeding its goal of 41,000 by almost 17%. The achievement marks the highest number of Veterans housed in a single year since fiscal year 2019. Notably, 96% of those housed did not return to homelessness. The VA's efforts have been particularly effective in the Greater Los Angeles area, where 1,854 homeless Veterans were permanently housed, surpassing local goals by 15.5%.  

“Nearly 48,000 formerly homeless Veterans now have a safe, stable place to call home — and there’s nothing more important than that,” said VA Secretary Denis McDonough. “No Veteran should experience homelessness in this nation they swore to defend. We are making real progress in this fight, and we will not rest until Veteran homelessness is a thing of the past.”

IRS updates LIHTC calculation   



The Internal Revenue Service (IRS) updated the amounts used to determine the Low-Income Housing Tax Credit (LIHTC) ceiling in 2025 by 10 cents, raising it to $3 for the first time. The last increase was 15 cents in 2023. The amount, or per-capita multiplier, is multiplied by the state population in order to determine the total ceiling for state LIHTC amounts. The multiplier for private activity bond (PAB) allocations will also be raised to $130, a $5 increase and another new record.