July 24, 2025

Scott, Blunt Rochester, Moreno, Kim Lead Effort to Increase Private Investment in Low-Income Housing Projects

Washington, D.C. – Chairman Tim Scott (R-S.C.), Sen. Lisa Blunt Rochester (D-Del.), Sen. Bernie Moreno (R-Ohio), and Sen. Andy Kim (D-N.J.) are leading an effort to increase private investment in affordable housing and other community development projects across the country. The Community Investment and Prosperity Act increases a statutory cap limiting banks’ investments in community development projects, which will unlock billions in capital for affordable housing, small businesses, financial education, and other economic development needs in communities that need it the most. Sens. Kevin Cramer (R-N.D.), Angela Alsobrooks (D-Md.), Dave McCormick (R-Pa.), and Reverend Raphael Warnock (D-Ga.) are also co-sponsoring the legislation.

“Our regulatory framework should encourage investment in affordable housing and community development projects in communities that need it most, but outdated laws are restricting financial institutions from engaging in these important activities. For the first time since 2006, this bill makes commonsense changes to unlock capital and increase investment opportunities that will boost our housing supply, expand financial inclusion, and support small businesses while ensuring the safety of our banking system,” said Chairman Scott.

“It will take a wholistic effort, in both the private and public sectors, to address America’s housing crisis. This legislation will allow for meaningful investment in community development projects that will improve our affordable housing supply. I look forward to continuing this bipartisan effort alongside Chairman Scott and my colleagues,” said Senator Blunt Rochester.

“Every American deserves to own a home and raise a family, that’s the American Dream, but skyrocketing housing costs and the Federal Reserve’s absurd refusal to lower interest rates have put that dream out of reach for too many. I’m proud to join my colleagues to invest in housing in working-class neighborhoods and put the American Dream back within reach of average Americans,” said Senator Moreno.

“Housing is simply too expensive across our country and there is not enough of it,” said Senator Kim. “We should be using every tool in our toolbox to boost supply and give working families the affordable options they deserve. By unlocking these investments, this bill helps unlock people's futures and the development communities need to thrive.”

“Home ownership is one of the surest paths to building wealth. By making housing more affordable, we are blazing new pathways for Americans to build generational wealth and provide for their families,” said Senator Alsobrooks.

“I’m proud to support this effort to expand housing availability and affordability. The Community Investment and Prosperity Act will enhance the ability of banks to support to affordable housing and community development initiatives throughout Pennsylvania and across America. This will have a real and immediate impact on the ability of working families to achieve the America Dream and secure a brighter future,” said Senator McCormick.

"Since entering the Senate I have been working to address the affordable housing crisis so that Georgians can find a safe and secure place to call home," said Senator Reverend Warnock. "America needs more affordable housing so more families can keep more money in their pockets, and this legislation is critical for unlocking the resources needed to spur economic investment and housing development in our communities."

KeyBank, the Bank Policy Institute, the Affordable Housing Tax Credit Coalition, and the National Association of Affordable Housing Lenders have endorsed the legislation.

BACKGROUND:

The National Bank Act and Federal Reserve Act provide that, in general, a bank may not make certain equity investments that, in the aggregate, exceed 5 percent its capital and surplus. The statutes permit the Office of the Comptroller of the Currency (OCC) and the Federal Reserve to increase the limit for an individual bank to 15 percent if the regulator determines that a “public welfare investment,” as permitted by law, will pose no significant risk to the Deposit Insurance Fund and the bank meets certain other criteria. These investments by eligible banks support activities including affordable housing, small businesses, technical assistance, financial literacy, and other development needs in communities that need it the most.

The last time Congress raised the cap on “public welfare investments” was in 2006 as part of the Financial Services Regulatory Relief Act of 2006, which raised the discretionary cap from 10% to its current level of 15%. The Community Investment and Prosperity Act raises the cap on “public welfare investments” for banks from 15% to 20%, which will open up billions of dollars of available capital for investment in affordable housing and community development projects across the country. For bill text, click here.