On November 16, 2022, S. 5108 was introduced in the U.S. Senate, and H.R. 9313 was introduced in the U.S. House of Representatives. The title of the bill is “Housing for Homeless Students Act of 2022.” If the bill becomes law, it will amend Section 42 of the Internal Revenue Code to qualify homeless youth and veterans who are full-time students for purposes of the low-income housing tax credit.
The homeless student rule would have a look-back period of seven years prior to occupancy in a LIHTC project and the veteran exception would have a five-year look-back. In other words, if a full-time student was homeless at any point during the seven years preceding occupancy at a tax credit property, that person will not be considered a student for tax credit purposes. Likewise, if a veteran has been homeless at any time during the five years preceding occupancy at a tax credit property, that person will not be considered a student for tax credit purposes.
The Senate bill has been referred to the Senate Finance Committee and the House Bill to the House Ways and Means Committee.
There is no specific timeframe for the bill to become law and owners and managers of LIHTC properties should not change the current procedures being followed relative to student status.