Two key pieces of legislation under President Joe Biden could have the biggest positive impact on affordable housing of any federal law passed in several decades, according to Fitch Ratings.

The Build Back Better (BBB) Act, which earmarked $150 billion for affordable housing, and the Infrastructure Investment and Jobs Act (IIJA), which has key provisions indirectly impacting the asset class, are both poised to deliver a significant boost to the sector.  The current iteration of the BBB is "heavily front-loaded within the 10-year time horizon of the proposal," Fitch analysts note in a new analysis, and represents an amount that's nearly three times the annual funding of the Department of Housing and Urban Development.

"Federal aid will provide affordable housing agencies with additional resources to help increase loan programs and address maintenance backlogs as well as provide rental aid to individuals," Fitch experts note in their analysis, adding that BBB funding includes $65 billion for public housing, $25 billion for rental assistance, and $15 billion for the national Housing Trust Fund.