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Congress·In Committee·5 months ago

Congress moves to stop counting VA disability pay as income for some affordable housing eligibility

Also known as: Fair Housing for Disabeled Veterans Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Positive Impacts(5)
Military Veteran
Helps
Veterans Benefits
Helps
Housing Assistance
Helps
Disability Benefits
Helps
Renter
Helps

Key Points

  • Changes federal tax law so VA disability compensation or VA pension payments are not counted as “income” when deciding who qualifies for certain affordable rental housing programs.
  • This mainly affects housing tied to two tools: a tax credit that helps build/keep affordable apartments and certain federally supported rental housing bonds.
  • Practical impact: a disabled veteran could be more likely to meet income limits for these affordable units because their VA disability benefits won’t push them over the cutoff.
  • Applies to eligibility decisions made after the bill becomes law (it does not set a specific start date beyond that).
HousingVeteransTaxes

Milestones

2 milestones2 actions
Sep 19, 2025House

Referred to the House Committee on Ways and Means.

Sep 19, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Immediately after the date the bill is signed into law (applies to income determinations made after enactment).

After the bill is enacted, VA disability compensation and VA pension payments stop being counted as income for LIHTC and certain bond-financed rental eligibility checks.

Disabled veterans could newly qualify for some affordable apartments, or stay eligible even if their VA benefit amount rises.

Within weeks to a few months after enactment, as properties update compliance procedures.

Affordable housing owners/managers update tenant screening and annual recertification paperwork to exclude these VA benefits from the income calculation.

Veterans may be asked for different documentation, and some tenants who were near the income limit may face less risk of being found “over income.”

Within a few months after enactment, depending on agency update cycles.

State and local housing agencies and compliance auditors update written guidance and monitoring checklists for LIHTC and bond properties.

More consistent treatment across properties; fewer disputes about whether VA disability/pension counts as income.

Related News

5 articles
The MortgagePoint·5 months ago

New Legislation Targets Housing Inequities for Disabled Veterans

Covers the Fair Housing for Disabled Veterans Act proposal and explains how excluding VA disability benefits from LIHTC income calculations could expand eligibility for affordable units.

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Ripon Advance·about 2 months ago

Moore, Kelly offer legislation to help keep veterans housed

Mentions H.R. 5529 by name and summarizes the bill’s change to LIHTC and qualified residential rental project bonds so disability/pension payments are disregarded as income.

CR+
BillTrack50·5 months ago

US HR5529 — Fair Housing for Disabeled Veterans Act

Bill page summarizing H.R. 5529’s core provision: disregard VA disability compensation or pension payments in income determinations for LIHTC and qualified residential rental project bonds.

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Source Information

Document Type

Congressional Bill

Official Title

Fair Housing for Disabeled Veterans Act

Bill NumberHR 5529
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.

Sponsor

Cosponsors

(17)
D: 9R: 8

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.