By: Aaron Allen
Congresswoman Marilyn Strickland (D-WA-10) and Congressman Blake Moore (R-UT-01) have introduced the Low-Income Housing for Defense Communities Act of 2024, a bipartisan bill aimed at addressing the growing housing crisis affecting military personnel in high-cost areas. The proposed legislation seeks to expand housing options for servicemembers by increasing affordability near major military installations.
The issue has been exacerbated by geographic limitations and the physical footprint of military bases, making it difficult to develop sufficient housing for lower-enlisted servicemembers. As a result, many are forced to live off base in areas where housing has become unaffordable. Additionally, a backlog in military dormitory construction has further complicated the problem, pushing more servicemembers into local housing markets they can’t afford.
Pandemic-related population shifts and rising housing costs have worsened the situation, with Hill Air Force Base in Utah experiencing a 27% increase in housing costs and an 18% population increase in 2021 alone. At Joint Base Lewis-McChord in Washington, approximately 70% of the nearly 55,000 personnel live off base, further straining the local housing market.
“Servicemembers and their families should be able to afford to live where they are stationed. This is important for their quality of life and affects readiness,” said Strickland. “This credit encourages the building of more affordable housing near large military installations.”
Congressman Moore, highlighting the broader impact of the housing crisis, noted its effect on military readiness.
“Housing has become a national security issue, as it impacts the readiness of Hill Air Force Base,” he said. “Lower-enlisted servicemembers are struggling to afford housing, and officers are turning down assignments due to the difficult real estate market. This bill will spur interest in Low-Income Housing Tax Credit construction near large installations.”
The legislation would create an increased Low-Income Housing Tax Credit (LIHTC) for developments within 15 miles of large military bases, encouraging the construction of more affordable housing. The LIHTC program is designed to provide incentives for developers to build affordable housing, and this bill adds a targeted arm to address housing affordability specifically for lower-enlisted servicemembers in high-cost areas.
The bill has received support from local and national stakeholders. Bill Adamson, Program Director for the South Sound Military and Community Partnership, pointed to the acute housing shortage impacting military personnel at Joint Base Lewis-McChord.
“The introduction of this bill addresses an acute affordable housing shortage impacting lower-enlisted servicemembers,” said Adamson.
Clearfield Mayor Mark Shepherd also praised the initiative.
“Having military members live in sub-par housing or struggle to afford basic needs because all their income goes to housing sends the wrong message,” said Shepherd. “I applaud Congressman Moore and Strickland on their commitment to ensure our military members are treated with dignity and respect when it comes to their housing needs.”
The bill’s financial provisions include a significant benefit for developers, offering a 30% “basis boost” under Section 42D of the Internal Revenue Code for any development within 15 miles of a qualifying military installation. This boost is designed to make projects more financially feasible for developers, who are often hesitant to build affordable housing in high-cost areas. Military bases classified as “Large Sites” by the Department of Defense (those with a Plant Replacement Value of more than $2.833 billion) would be the primary beneficiaries of this boost.
Another key aspect of the legislation is that it excludes Basic Allowance for Housing (BAH) from the income calculation for LIHTC purposes. While BAH provides military members with housing-related compensation based on local market costs, servicemembers often struggle to qualify for affordable housing under LIHTC guidelines due to the inclusion of BAH in their income. This exclusion would make it easier for military members to secure housing in both existing and future LIHTC properties.
Emily Cadik, CEO of the Affordable Housing Tax Credit Coalition, expressed strong support for the bill.
“We appreciate Congresswoman Strickland and Congressman Moore’s attention to the growing affordable housing crisis and their commitment to finding a solution based on what we know works—the Low-Income Housing Tax Credit,” said Cadik. “Military families face the same challenges as millions of Americans in finding affordable housing, and this expansion would provide much-needed relief.”
The housing affordability crisis has gained urgency as military leaders acknowledge its impact on overall readiness and recruitment. The issue is not confined to one region; bases across the country, including Joint Base Lewis-McChord in Washington and Hill Air Force Base in Utah, are grappling with soaring housing costs and insufficient on-base housing.
“This bill will bring much-needed relief to military families serving near major bases,” said Moore. “I’m proud of the work we’ve done advancing it to this point, and I look forward to seeing it make a meaningful impact in the lives of servicemembers in Utah and across the nation.”