The proposal would have excluded military service members’ basic allowance for housing from the calculation of income when determining eligibility for the low income housing tax credit program. The Department of Defense’s basic allowance for housing is calculated by the DOD and given to off-base service members to pay for their housing.
NLIHC had argued that such an income exclusion would have taken low income housing tax credit housing away from households more in need and that the DOD’s housing allowance should be sufficient to assist off-base service members to afford housing. In 2006, when House legislation to exclude this income was considered by the House, NLIHC submitted testimony opposing the measure (see Memo, 2/10/2006).
House Committee on Ways and Means Chair Charles Rangel (D-NY) agreed after the May 20 House passage that the shortage of housing on military bases should not displace other low income people, according to press reports.
The measure, H.R. 6081, was sent to the President for his signature; he is expected to sign.