By: Channing Hamilton
One of many sweeping changes the One Big Beautiful Bill Act (OBBBA) delivered for the low-income housing tax credit (LIHTC) incentive was lowering the private activity bond (PAB) financing threshold from 50% to 25% of land and building costs. Due to this change, affordable housing developments financed with PABs issued after Dec. 31, 2025, qualify for 4% LIHTCs with much fewer bonds than before.


