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HR 5529119th CongressIn Committee
Fair Housing for Disabeled Veterans Act
Introduced: Sep 19, 2025
Sponsor: Rep. Sánchez, Linda T. [D-CA-38] (D-California)
Economy & TaxesHousing & Urban Development
Standard Summary
Comprehensive overview in 1-2 paragraphs
This bill, titled the Fair Housing for Disabled Veterans Act, would change how income is counted for two federal affordable housing programs: the low income housing tax credit (LIHTC) and qualified residential rental project (QRP) bonds. Specifically, it would exclude (disregard) veteran disability compensation or pension payments paid under chapters 11 or 15 of title 38 of the U.S. Code from a household’s income when determining eligibility and credit/bond qualifications. In effect, current VA disability benefits would not be counted as income for the purposes of these housing programs. The change would apply to determinations made after the act’s enactment and would not be retroactive.
Key Points
- 1What is being changed: Amends Internal Revenue Code section 142(d)(2)(B) by adding a new clause that excludes certain veteran benefits from income calculations for LIHTC and QRP bonds.
- 2What benefits are excluded: Disability compensation or pension payments paid under chapter 11 or chapter 15 of title 38, United States Code (i.e., VA disability compensation and VA pensions).
- 3Scope of impact: Applies to income determinations used to qualify for LIHTC allocations and financing through qualified residential rental project bonds.
- 4Timing: Applies to determinations made after the date of enactment; not retroactive to periods before enactment.
- 5Policy intent and potential effects: Aims to expand housing eligibility for veterans with disability benefits by reducing counted income, which could influence project credit allocations, rents, and the pool of eligible tenants.
Impact Areas
Primary group/area affected- Veterans who receive VA disability compensation or VA pensions and live in housing financed with LIHTC or QRP bonds. Their disability benefits would no longer count toward household income for eligibility and credit calculations.Secondary group/area affected- Developers, owners, and managers of LIHTC- or QRP-financed properties, as the set of eligible residents may broaden, potentially affecting project financing, unit mix, and credit allocations.Additional impacts- State and local housing agencies and their administration of LIHTC and QRP programs would need to adjust income-determination rules accordingly.- Potential fiscal or budgetary implications, since changes to income counting can affect the distribution of federal tax credits and bond financing, with uncertain effects on overall program costs and housing supply.
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