“To amend the Internal Revenue Code of 1986 to provide tax incentives for rental housing for members of the Armed Forces.”
No CRS summary available for this bill.
This section designates the Act as the “Low Income Housing for Defense Communities Act” and states the sense of Congress that, in addition to the Act's provisions expanding and strengthening the affordable housing credit for active duty military members, further steps—such as the Affordable Housing Credit Improvement Act of 2023—should be taken to drive investment in affordable housing projects and boost overall housing supply for U.S. workers and families.
This section provides tax incentives for rental housing benefiting members of the Armed Forces. Specifically, it (1) excludes basic allowance for housing (BAH) payments under 37 U.S.C. §403 from income determinations for the low-income housing tax credit (LIHTC) and for the 50% income restriction on qualified residential rental projects financed by tax-exempt private activity bonds, for determinations after enactment; and (2) treats any building within 15 miles of a large military installation—defined as one with a total plant replacement value exceeding $2.833 billion, as determined by the Secretary of Defense—as located in a difficult development area for purposes of the 30% basis boost in LIHTC allocations, for buildings placed in service after enactment. (Thus, these changes enable more service members to qualify for LIHTC-subsidized or tax-exempt bond-financed housing and incentivize affordable housing development near major bases without requiring exclusive occupancy by military personnel.)