Fair Housing for Disabeled Veterans Act
- Bill Number
- H.R. 5529
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-09-19: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-03-27T08:06:48Z
AI-Generated Summary
Purpose
The "Fair Housing for Disabled Veterans Act" (H.R. 5529) aims to make affordable housing more accessible to disabled veterans by excluding their disability compensation or pension payments from income calculations used in federal housing tax incentives. This helps ensure these benefits do not count against eligibility for low-income housing programs.
Key Provisions
- Amendment to Tax Code: Adds a new clause to Section 142(d)(2)(B) of the Internal Revenue Code (IRC) of 1986, which deals with income limits for low-income housing tax credits (LIHTC) and qualified residential rental project bonds.
- Specifically, it disregards (excludes) payments from veteran disability compensation or pensions under Chapters 11 or 15 of Title 38 of the U.S. Code when determining a tenant's income for these programs.
- Effective Date: The change applies to income determinations made after the bill's enactment into law.
Significant Changes to Existing Law
- Under current law, all sources of income, including veteran disability payments, are typically included when calculating eligibility for LIHTC and qualified residential rental bonds, which can disqualify some veterans from affordable housing.
- This bill introduces an explicit exclusion for these veteran-specific benefits, marking a targeted adjustment to broaden access without altering broader income rules for other groups.
Potential Impacts
- On Citizens: Disabled veterans receiving compensation or pensions will face fewer barriers to qualifying for subsidized housing, potentially increasing their access to safe, affordable rentals and reducing housing insecurity.
- On Government Agencies: The Internal Revenue Service (IRS) and state housing agencies administering LIHTC and bond programs may see a slight increase in eligible applicants, requiring minor updates to income verification processes but no major overhaul.
- On Housing Providers: Developers and property owners using these tax incentives could qualify more veterans as tenants, helping meet federal low-income occupancy requirements and possibly expanding the pool of eligible renters.
- No direct impacts on international relations.
Main Stakeholders Affected
- Disabled Veterans: Primary beneficiaries, as the exclusion directly aids their housing affordability.
- Low-Income Housing Developers and Landlords: Benefit from easier compliance with program rules through a larger pool of qualifying tenants.
- Federal and State Agencies: Including the IRS (for tax credit administration) and the Department of Housing and Urban Development (HUD, which oversees related programs), who will implement the income exclusion.
- Veterans' Advocacy Groups: Such as the Department of Veterans Affairs (VA), which provides the excluded benefits and may support broader housing stability for veterans.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens alignment between tax code housing incentives and VA benefits, potentially reducing administrative disputes over income definitions without conflicting with existing anti-discrimination laws in housing.
- Constitutional: No apparent challenges; the bill promotes equal access to housing benefits, consistent with equal protection principles under the U.S. Constitution.
- Political: Highlights bipartisan support for veterans' issues (introduced by representatives from both parties), which could encourage similar targeted exemptions in other benefit programs, fostering goodwill toward military families but possibly sparking debates on equity for non-veteran low-income groups.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Sánchez, Linda T. [D-CA-38]
Cosponsors (20)
Rep. Kelly, Mike [R-PA-16], Rep. Gomez, Jimmy [D-CA-34], Rep. Moore, Blake D. [R-UT-1], Rep. Sherman, Brad [D-CA-32], Rep. Tenney, Claudia [R-NY-24], Rep. Carbajal, Salud O. [D-CA-24], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Lieu, Ted [D-CA-36], Rep. Levin, Mike [D-CA-49], Rep. Takano, Mark [D-CA-39], Rep. Carey, Mike [R-OH-15], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Bacon, Don [R-NE-2], Rep. Yakym, Rudy [R-IN-2], Rep. Salinas, Andrea [D-OR-6], Rep. Wittman, Robert J. [R-VA-1], Rep. Craig, Angie [D-MN-2], Rep. Murphy, Gregory F. [R-NC-3], Rep. Olszewski, Johnny [D-MD-2], Rep. Figures, Shomari [D-AL-2]
Recent Actions
- 2025-09-19: Referred to the House Committee on Ways and Means.
- 2025-09-19: Introduced in House
- 2025-09-19: Introduced in House
Bill Versions
- Fair Housing for Disabeled Veterans Act — issued 2025-09-19 — PDF (2 pages)