Sponsors (21)
The bill increases affordable housing access for veterans by excluding VA disability/pension from income tests for LIHTC and tax-exempt bond-assisted housing, at the cost of a modest potential reduction in federal revenue and some administrative burden for housing agencies.
Veterans (especially those receiving VA disability compensation or pensions) and low-income households that include them will have VA disability/pension income excluded when determining eligibility for LIHTC- and tax-exempt bond-assisted housing, increasing their access to affordable housing.
More households that include disabled veterans will qualify under residential rental project bond rules, helping project sponsors fill units and improving occupancy rates in affordable developments.
Excluding VA disability compensation and pensions from tenant income for LIHTC and bond income tests could reduce reported tenant income and thereby slightly lower federal tax revenue or affect LIHTC credit allocations.
State and local housing agencies and bond issuers will need to update income verification procedures and guidance, creating administrative costs and a brief implementation burden.
Based on analysis of 2 sections of legislative text.
Excludes VA disability compensation and VA pensions from household income when applying income limits for LIHTC and residential rental bond rules.
Tells the tax code to ignore veteran disability compensation and VA pensions when counting household income for low-income housing tax credit and residential rental bond income tests. The change applies to determinations made after the law takes effect, so veterans receiving those benefits are more likely to qualify as low-income tenants under those programs.
Introduced September 19, 2025 by Linda T. Sánchez · Last progress September 19, 2025