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EB-5 Affordable Housing Bill Introduced by Sen. Gallego | AIIA

AIIA Applauds Sen. Gallego’s New EB-5 Legislation to Fund Affordable Housing Across America

Washington, D.C. — The American Immigrant Investor Alliance (AIIA) today announced strong support for the introduction of the “Building Housing for the American Dream Act” by U.S. Senator Ruben Gallego (D-AZ). This bipartisan-friendly legislation aims to unlock EB-5 foreign investment for federally qualified affordable housing projects by expanding eligibility for the lower $800,000 investment tier.

Why This Bill Matters: Solving the Affordable Housing Capital Gap

Despite urgent national need, most affordable housing developments—especially in urban areas—cannot access EB-5 financing because they fail to qualify as Targeted Employment Areas (TEAs), forcing investors to contribute $1.05 million instead of $800,000. This cost barrier has deterred capital from flowing into labor-intensive, job-creating housing projects.

“Senator Gallego recognizes that affordable housing is essential for the 21st century,” said Ishaan Khanna, spokesperson for AIIA. “This bill creates a new ‘Infrastructure and Housing’ TEA category, allowing projects under federal programs like LIHTC, Section 202, CDBG, and HOME to qualify for the reduced investment amount—mobilizing foreign capital where it’s needed most.”

Eligible Affordable Housing Programs Under the Bill

The legislation explicitly includes projects funded through:

  • Section 202 (Housing for seniors aged 62+)
  • Housing Trust Fund (for homeless/extremely low-income families)
  • Low-Income Housing Tax Credit (LIHTC)
  • Community Development Block Grants (CDBG)
  • HOME Investment Partnerships Program
  • Housing Opportunity Program Extension Act (infrastructure for affordable communities)

Program Integrity & Transparency Measures

The bill mandates:

  • Annual reporting to Congress on visas issued and projects funded
  • Consultation between USCIS and the U.S. Department of Housing and Urban Development (HUD) to verify project eligibility
  • No displacement of existing EB-5 job-creating projects or investor interests

“This is a win-win: more Americans gain access to quality housing, while EB-5 investors gain access to stable, in-demand real estate assets,” Khanna added.

AIIA’s Role in Shaping the Legislation

AIIA provided technical expertise to Sen. Gallego’s office on EB-5 program mechanics, investor trends, and regulatory compliance. The alliance convened attorneys, economists, developers, and broker-dealers to ensure the bill aligns with industry best practices and investor protections.

Looking Ahead: Broader EB-5 Reform Advocacy

This housing initiative complements AIIA’s core policy goals:

  • Permanent “grandfathering” protection for investors
  • Visa relief for backlogged applicants
  • Restrictions on abusive “sustainment period” requirements

“By demonstrating how EB-5 can serve the national interest, we build credibility to advance broader reforms,” said Khanna.

About AIIA

The American Immigrant Investor Alliance (AIIA) is a leading advocate for fair, transparent, and sustainable EB-5 policy. We represent investors, developers, and service providers committed to ethical capital formation and job creation in the United States.

Learn more or support our advocacy: www.aiia.org