U.S. House Representative Jim McDermott (D-WA) recently introduced H.R. 3145 to amend Section 42 of the Internal Revenue Code of 1986 as it relates to homeless youth and veterans. Currently the rules governing the Low Income Housing Tax Credit (LHITC) do not allow full-time students to qualify as eligible tenants; the original intent was to prevent LIHTC from being used to construct dormitories and to prohibit college students with temporary low incomes from benefiting from a resource meant for individuals and families with more critical housing needs. However, an unintended consequence of this provision is that homeless veteran or youth that wish to pursue full time education are unable to live in LIHTC housing.
H.R. 3145 would revise Section 42 to qualify formerly homeless youth who are students for LIHTC eligibility requirements. This measure, which is similar to a bill that was introduced but never passed in the 112th Congress (H.R. 3076), was referred to the House Committee on Ways and Means. The text of the legislation has not yet been introduced.