If passed, the Build Back Better bill could be a heyday for affordable housing. The bill—among many things—includes $170 million of funding for housing with an expansion of the LIHTC program, rental assistance and down payment assistance. It is the largest investment in affordable housing in history.

"All eyes have been on the Build Back Better bill; this is really a once in a lifetime opportunity to solve the national housing crisis," Matthew A. Rieger, CEO of Housing Trust Group. "Our hope was to see expansion of the LIHTC program for affordable housing in that. But even if Congress  doubled the number of LIHTC credits available to states, keep in mind that it will still take years to create new supply—years to get through the credit drawing, permitting and construction process."

Affordable housing advocates have been waiting for a meaningful government response to the housing crisis, which most experts agree is necessary to create more supply. Affordable housing is notoriously challenging to develop. "Development of affordable housing has gone from difficult to nearly impossible," says Rieger. "The cost of raw land and construction has skyrocketed in the last year, so our expenses have gone up on the one hand. But my revenue is capped; I can only charge so much for rent per HUD rules, so it's made it very difficult to make deals pencil out. Market rate developers can pass those costs on to the end-user, but we cannot."