New Bipartisan Legislation Aims to Remove Housing Barriers for Disabled Veterans

In a significant step toward addressing housing inequities for disabled veterans, U.S. Representatives Mike Kelly (R-PA), Linda T. Sánchez (D-CA), Jimmy Gomez (D-CA), and Blake Moore (R-UT) have introduced the bipartisan Fair Housing for Disabled Veterans Act. The legislation seeks to ensure that veterans’ service-related disability benefits are not counted as income when determining eligibility for affordable housing programs.

Currently, veterans receiving disability benefits may face unintended consequences under the Low-Income Housing Tax Credit (LIHTC) program, which often counts these benefits as income. This calculation can disqualify veterans from affordable housing opportunities, effectively pushing some toward homelessness. The proposed legislation would exclude service-connected disability payments from these income assessments, removing a critical barrier for veterans seeking stable housing.

“This legislation ensures veterans can keep more of their hard-earned benefits while gaining access to affordable housing,” said Rep. Mike Kelly, Chairman of the Ways and Means Subcommittee on Tax. “Those who have worn the uniform deserve full support from the tax code, not roadblocks.”

How LIHTC Works and Why It Matters

The Low-Income Housing Tax Credit program, created under the Tax Reform Act of 1986, provides roughly $10.5 billion annually in federal tax credits. These credits incentivize state and local agencies to fund the acquisition, rehabilitation, or construction of rental housing for lower-income households. By removing disability benefits from income calculations, the bill ensures that veterans with service-related injuries are not disqualified from participating in these programs.

“Veterans who sacrificed for our country shouldn’t face barriers in finding safe, affordable housing,” added Rep. Linda Sánchez of California. “Disability benefits exist to cover service-related injuries, not to penalize veterans when securing housing. Our bill addresses this inequity, helping veterans live with dignity.”

A Broader Effort to Support Veterans

The Fair Housing for Disabled Veterans Act complements other recent legislation aimed at improving housing access for veterans. Earlier this year, President Donald Trump signed HR 1815, the VA Home Loan Program Reform Act, which modernizes the VA Home Loan program. This program currently serves 3.7 million veterans, offering assistance for those who have fallen behind on mortgage payments and providing funding for homelessness prevention programs.

According to the House Committee on Veterans’ Affairs, nearly 70,000 veteran homeowners were more than 90 days delinquent on their mortgage payments. HR 1815 also ensures proper funding for the VA Grant and Per Diem program, supporting community agencies that deliver housing and support services to veterans at risk of homelessness.

“Our veterans are being unfairly denied access to affordable housing because VA benefits are misclassified as income,” said Rep. Jimmy Gomez of California. “This bill corrects that oversight, ensuring that disabled veterans can access the housing support they have earned through their service and sacrifice.”

Support from Veteran Advocacy Groups

The Wounded Warrior Project (WWP) applauded the bipartisan effort, noting the real-world impact of current policy:

“VA disability compensation should never be a barrier to housing for veterans,” said Jose Ramos, VP for Government and Community Relations at WWP. “Currently, wounded warriors are often penalized when their VA benefits make them ineligible for affordable housing through LIHTC. These are some of our most vulnerable veterans, and this legislation ensures they can access both financial support and stable housing.”

By creating parity in housing eligibility, the Fair Housing for Disabled Veterans Act addresses a critical gap in veteran support, helping ensure that service-related disability payments empower, rather than limit, the ability to live in safe, affordable homes.

Why This Matters

For many disabled veterans, the intersection of fixed disability income and high housing costs creates significant challenges. According to recent studies, veterans with service-related disabilities are more likely to experience housing instability, and programs like LIHTC are vital for ensuring access to quality rental housing.

The proposed legislation is an important step in strengthening the social safety net for veterans, ensuring that those who served the nation do not face systemic barriers to stable housing. By protecting these benefits from being counted as income, Congress could help thousands of veterans secure the homes they deserve.

“Our country owes it to its veterans to remove arbitrary barriers and guarantee access to safe, affordable housing,” Rep. Blake Moore said. “This bipartisan effort reflects a shared commitment to those who have sacrificed for all of us.” For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.