Congress·In Committee·H.R. 5529

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

Fair Housing for Disabeled Veterans Act

6 months ago·View on Congress.gov

Part of: Congress Passes Law to Expand Housing Aid Access for Disabled Veterans

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Stalled

No legislative action in over 90 days.

Legislative Progress

House

Senate

President

Law

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

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Positive Impacts(5)

Military Veteran

Helps

Veterans Benefits

Helps

Housing Assistance

Helps

Disability Benefits

Helps

Renter

Helps

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.