Military members often encounter housing challenges due to limited housing options near their stationed bases and lower incomes than civilians, especially in high-cost-of-living areas. These issues have been worsened by significant delays in military construction projects, including housing for junior enlisted service members. 
 
Representatives Blake Moore (UT-01) and Marilyn Strickland (WA-10) have reintroduced the bipartisan H.R. 308, the Low-Income Housing for Defense Communities Act, which aims to address these concerns.
 
The bill's primary solution is to exclude the military basic housing allowance (BHA) from income calculations for Low-Income Housing Tax Credit (LIHTC) eligibility. The LIHTC program provides tax credit investors with a dollar-for-dollar reduction in their federal tax liability in exchange for financing the development of affordable rental housing. Although the BHA is designed to help service members cover local housing costs, this exclusion would broaden their housing options. 
 
The bill also includes a 30% “basis boost” under Section 42(d)(5)(B) of the Internal Revenue Code for LIHTC developments within 15 miles of major military installations. For this bill, a “large military installation” is defined as any military installation with a total plant replacement value (determined by the Secretary of Defense) exceeding $2.83 billion. Additionally, there is no requirement in this bill that the buildings be occupied exclusively by armed forces members.