(3) 
QUALIFIED
VOLUNTEER
FIRST
RE-
SPONDER.—The term ‘‘qualified volunteer first re-
sponder’’ means any individual who— 
(A) is a bona fide volunteer performing 
qualified services for an eligible employer; 
(B) continuously served as a volunteer for 
the eligible employer during the 2-year period 
preceding the date on which the individual sub-
mits a verification letter under section 3(b) or 
4(b); 
(C) during each of the 2 years described in 
subparagraph (B)— 
(i) met the minimum requirements for 
active membership established by the eligi-
ble employer; or 
(ii) if the eligible employer did not es-
tablish minimum requirements, volunteered 
for not less than 200 hours; and 
(D) is certified as a firefighter or other 
first responder in the State, political subdivision 
of a State, or jurisdiction of an Indian Tribe in 
which the individual is serving as volunteer. 
(b) DEPARTMENT OF AGRICULTURE SINGLE FAMILY 
HOUSING GUARANTEED LOAN PROGRAM.— 
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(1) IN GENERAL.—A qualified volunteer first 
responder who submits to the Secretary of Agri-
culture (referred to in this subsection as the ‘‘Sec-
retary’’) a verification letter in accordance with 
paragraph (2) shall be eligible for a deduction in an-
nual income under section 3555.152(c) of title 7, 
Code of Federal Regulations (or any successor regu-
lation), in the amount of $18,000. 
(2) VERIFICATION LETTER.—To be eligible for 
a deduction under paragraph (1), a qualified volun-
teer first responder shall submit to the Secretary a 
verification letter from the head of the eligible em-
ployer for which the qualified volunteer first re-
sponder volunteers, which shall— 
(A) include the date on which the qualified 
volunteer first responder joined the eligible em-
ployer as a volunteer; 
(B) attest to the Secretary that the quali-
fied volunteer first responder meets the require-
ments under subparagraphs (B) and (C) of sub-
section (a)(3); and 
(C) include a copy of the certification de-
scribed in subsection (a)(3)(D). 
(c) GOOD NEIGHBOR NEXT DOOR SALES PROGRAM 
AND SIMILAR PROGRAMS.— 
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(1) ELIGIBILITY.—A qualified volunteer first 
responder who submits to the Secretary of Housing 
and Urban Development (referred to in this section 
as the ‘‘Secretary’’) a verification letter in accord-
ance with paragraph (2) shall qualify as a firefighter 
or emergency medical technician for purposes of any 
single family property disposition program carried 
out by the Secretary by regulation under section 
204(g) of the National Housing Act (12 U.S.C. 
1710(g)) that offers discounted home prices to fire-
fighters or emergency medical technicians. 
(2) VERIFICATION LETTER.—To qualify to pur-
chase a home under a single family property disposi-
tion program referred to in paragraph (1), a quali-
fied first responder shall submit to the Secretary a 
verification letter from the head of the eligible em-
ployer for which the qualified volunteer first re-
sponder volunteers, which shall— 
(A) include the date on which the qualified 
volunteer first responder joined the eligible em-
ployer as a volunteer; 
(B) attest to the Secretary that the quali-
fied volunteer first responder meets the require-
ments under subparagraphs (B) and (C) of sub-
section (a)(3); 
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(C) include a copy of the certification de-
scribed in subsection (a)(3)(D); and 
(D) include a certification from the quali-
fied volunteer first responder of the responder’s 
good faith intention to continue serving as a 
volunteer for the eligible employer for not less 
than 1 year following the date of closing. 
SEC. 205. IMPROVING ACCESS TO HOUSING FOR VETERANS. 
(a) SERVICE CONNECTED DISABILITY COMPENSA-
TION.—Section 102(a)(20) of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 5302(a)(20)) 
is amended by adding at the end the following: 
‘‘(C) 
SERVICE-CONNECTED
DISABILITY 
COMPENSATION.—When determining whether a 
person is of a person of low and moderate in-
come, a person of low income, or a person of 
moderate income under this paragraph, a State, 
unit of general local government, or Indian 
tribe shall exclude any service-connected dis-
ability compensation received by such person 
from the Department of Veterans Affairs.’’. 
(b) REPORT.—The Comptroller General of the 
United States shall, not later than 1 year after the date 
of the enactment of this Act, submit to the Congress a 
report that— 
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(1) examines how service-connected disability 
compensation is treated for the purposes of deter-
mining eligibility for all programs administered by 
the Secretary of Housing and Urban Development 
and identifies any cases where service-connected dis-
ability compensation is treated inconsistently across 
a program; and 
(2) with respect to each program administered 
by the Secretary of Housing and Urban Develop-
ment, provides legislative recommendations relating 
to how such program could better serve veteran pop-
ulations, and under-served communities. 
SEC. 206. SUPPORTING VETERAN FAMILIES IN NEED. 
Section 2044(e) of title 38, United States Code, is 
amended— 
(1) by redesignating subparagraphs (A) through 
(H) as paragraphs (1) through (8), respectively; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(9) The amounts that are appropriated to 
carry out such subsections for fiscal year 2026 and 
each fiscal year thereafter.’’. 
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SEC. 207. ATTRACTING PRIVATE INVESTMENT TO BUILD 
AND 
REHABILITATE 
OWNER-OCCUPIED 
HOMES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after section 42 the fol-
lowing new section: 
‘‘SEC. 42A. NEIGHBORHOOD HOMES CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, the neighborhood homes credit determined under 
this section for the taxable year is, with respect to each 
qualified residence sold by the taxpayer during such tax-
able year in an affordable sale, the lesser of— 
‘‘(1) an amount equal to— 
‘‘(A) the excess (if any) of— 
‘‘(i) the reasonable development costs 
paid or incurred by the taxpayer with re-
spect to such qualified residence, over 
‘‘(ii) the sale price of such qualified 
residence (reduced by any reasonable ex-
penses paid or incurred by the taxpayer in 
connection with such sale), or 
‘‘(B) if the neighborhood homes credit 
agency determines it is necessary to ensure fi-
nancial feasibility, an amount not to exceed 120 
percent of the amount under subparagraph (A), 
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‘‘(2) 35 percent of the eligible development 
costs paid or incurred by the taxpayer with respect 
to such qualified residence, or 
‘‘(3) 28 percent of the national median sale 
price for new homes (as determined pursuant to the 
most recent census data available as of the date on 
which the neighborhood homes credit agency makes 
an allocation for the qualified project). 
‘‘(b) DEVELOPMENT COSTS.—For purposes of this 
section— 
‘‘(1) REASONABLE DEVELOPMENT COSTS.— 
‘‘(A) IN GENERAL.—The term ‘reasonable 
development costs’ means amounts paid or in-
curred for the acquisition of buildings and land, 
construction, substantial rehabilitation, demoli-
tion of structures, or environmental remedi-
ation, to the extent that the neighborhood 
homes credit agency determines that such 
amounts meet the standards specified pursuant 
to subsection (f)(1)(C) (as of the date on which 
construction or substantial rehabilitation is sub-
stantially complete, as determined by such 
agency) and are necessary to ensure the finan-
cial feasibility of such qualified residence. 
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‘‘(B) CONSIDERATIONS IN MAKING DETER-
MINATION.—In making the determination under 
subparagraph (A), the neighborhood homes 
credit agency shall consider— 
‘‘(i) the sources and uses of funds and 
the total financing, 
‘‘(ii) any proceeds or receipts gen-
erated or expected to be generated by rea-
son of tax benefits, and 
‘‘(iii) the reasonableness of the devel-
opmental costs and fees. 
‘‘(2) ELIGIBLE
DEVELOPMENT
COSTS.—The 
term ‘eligible development costs’ means the amount 
which would be reasonable development costs if the 
amounts taken into account as paid or incurred for 
the acquisition of buildings and land did not exceed 
75 percent of such costs determined without regard 
to any amount paid or incurred for the acquisition 
of buildings and land. 
‘‘(3) 
SUBSTANTIAL
REHABILITATION.—The 
term ‘substantial rehabilitation’ means amounts paid 
or incurred for rehabilitation of a qualified residence 
if such amounts exceed the greater of— 
‘‘(A) $20,000, or 
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‘‘(B) 20 percent of the amounts paid or in-
curred by the taxpayer for the acquisition of 
buildings and land with respect to such quali-
fied residence. 
‘‘(4) CONSTRUCTION
AND
REHABILITATION 
ONLY AFTER ALLOCATION TAKEN INTO ACCOUNT.— 
‘‘(A) IN GENERAL.—The terms ‘reasonable 
development costs’ and ‘eligible development 
costs’ shall not include any amount paid or in-
curred before the date on which an allocation is 
made to the taxpayer under subsection (e) with 
respect to the qualified project of which the 
qualified residence is part unless such amount 
is paid or incurred for the acquisition of build-
ings or land. 
‘‘(B) LAND
AND
BUILDING
ACQUISITION 
COSTS.—Amounts paid or incurred for the ac-
quisition of buildings or land shall be included 
under paragraph (A) only if paid or incurred 
not more than 3 years before the date on which 
the allocation referred to in subparagraph (A) 
is made. If the taxpayer acquired any building 
or land from an entity (or any related party to 
such entity) that holds an ownership interest in 
the taxpayer, then such entity must also have 
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acquired such property within such 3-year pe-
riod, and the acquisition cost included under 
subparagraph (A) with respect to the taxpayer 
shall not exceed the amount such entity paid or 
incurred to acquire such property. 
‘‘(c) QUALIFIED RESIDENCE.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘qualified resi-
dence’ means a residence that— 
‘‘(A) is real property affixed on a perma-
nent foundation, 
‘‘(B) is— 
‘‘(i) a house which is comprised of 4 
or fewer residential units, 
‘‘(ii) a condominium unit, or 
‘‘(iii) a house or an apartment owned 
by a cooperative housing corporation (as 
defined in section 216(b)), 
‘‘(C) is part of a qualified project with re-
spect to which the neighborhood homes credit 
agency has made an allocation under subsection 
(e), and 
‘‘(D) is located in a qualified census tract 
(determined as of the date of such allocation). 
‘‘(2) QUALIFIED CENSUS TRACT.— 
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‘‘(A) IN
GENERAL.—The term ‘qualified 
census tract’ means a census tract— 
‘‘(i) which— 
‘‘(I) has a median family income 
which does not exceed 80 percent of 
the median family income for the ap-
plicable area, 
‘‘(II) has a poverty rate that is 
not less than 130 percent of the pov-
erty rate of the applicable area, and 
‘‘(III) has a median value for 
owner-occupied homes that does not 
exceed the median value for owner-oc-
cupied homes in the applicable area, 
‘‘(ii) which— 
‘‘(I) is located in a city which has 
a population of not less than 50,000 
and such city has a poverty rate that 
is not less than 150 percent of the 
poverty rate of the applicable area, 
‘‘(II) has a median family income 
which does not exceed the median 
family income for the applicable area, 
and 
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