Senator Al Franken (D-MN) introduced S. 3494, legislation to make eligible formerly homeless full-time students for low income housing tax credit- (LIHTC) financed housing, on August 2. Representative Jim McDermott (D-WA) introduced similar legislation, H.R. 3076, on October 3, 2011 (see Memo, 9/30/11). NLIHC has endorsed both bills.
Currently, students are not allowed to be the leaseholder of a LIHTC-financed housing unit. The prohibition was established to ensure that tax credits are not used to finance the development of university dormitories. In recognition that the prohibition has broader impacts than was originally intended, a number of exceptions are in place, including exceptions for youth aging out of foster care and individuals who are enrolled in job training programs.
The legislation introduced by Senator Franken differs from H.R. 3076 in that it restricts the eligibility period to full-time students who have experienced homelessness any time in the previous five years. The bill ensures that formerly homeless students are eligible without regard to age.
The text of the legislation is attached to this page.