Visitable Inclusive Tax credits for Accessible Living (VITAL) Act

The Visitable Inclusive Tax credits for Accessible Living (VITAL) Act aims to significantly improve the Low-Income Housing Tax Credit (LIHTC) program to increase the availability of disability-accessible and affordable housing. The bill seeks to boost the stock of accessible housing, ensure states prioritize the needs of aging and disabled populations, and foster community integration for these underserved groups who often face a critical shortage of suitable housing. This legislation addresses findings that a large percentage of Americans have disabilities, yet very little housing is designed to be accessible. The bill substantially increases the per capita and minimum amounts for state housing credit allocations, effective for calendar years beginning after December 31, 2025, with subsequent cost-of-living adjustments. For instance, the per capita amount rises from $1.75 to $4.25, and the minimum amount from $2,000,000 to $4,876,000 for 2026. This provides states with greater resources to fund low-income housing projects that accommodate the needs of older adults and individuals with disabilities, thereby expanding the overall supply. Furthermore, the VITAL Act introduces an enhanced credit, allowing a 150 percent eligible basis, for projects where at least 50 percent of low-income units are designated for people with disabilities and meet adaptable design standards. To qualify, these projects must also be located in walkable areas or adjacent to them, and be deemed financially feasible by the housing credit agency. Additionally, the bill mandates that state Qualified Allocation Plans (QAPs) ensure at least 40 percent of allocated low-income units over any three-year period meet these disability-accessible designation requirements, with units also satisfying walkability criteria counted twice. These combined incentives and mandates encourage developers to build more specialized, integrated, and accessible units, supporting independent living within communities.