S. 5553 — Transit-Oriented Housing Development Act of 2026

This section increases each state's private activity bond volume cap by 30 percent for calendar years beginning after 2025. It requires the additional cap to be allocated solely to qualified housing issues financing residential rental projects located within one-half mile of a fixed-guideway transit station, intercity bus station, or intercity passenger rail station, with 95 percent of proceeds for units occupied by households at or below 120 percent of area median income, including 20 percent rent-restricted units for households at 50 percent of area median income and 10 percent for households at 30 percent of area median income or the poverty guideline. The changes apply to bonds issued after December 31, 2025.

This section increases the low-income housing tax credit for transit-oriented developments by treating the eligible basis of qualifying new buildings and rehabilitation expenditures for existing buildings as 150 percent (or 200 percent if prevailing wage standards are met) of the amount otherwise determined. The increase applies to buildings where at least 25 percent of the aggregate basis of the building and land is financed by certain tax-exempt qualified housing bonds, for bonds issued after December 31, 2025.

This section appropriates $30 billion annually to the Housing Trust Fund for each of fiscal years 2026 through 2035. It requires states to give priority to projects located within a transit hub when distributing the funds and waives the deadline under subsection (c)(10)(B) for their use.