CA AB535

Redefines "secondary tenant" under veterans housing programs to mean any homeless veteran with income up to 60% of area median income, removing previous requirements that they receive service-connected disability benefits.

Prohibits income eligibility determinations for supportive, affordable, or transitional housing from considering a potential tenant's service-connected disability benefits as income.

Applies the revised secondary tenant definition to both regulatory agreement housing units and tax credit/private activity bond-funded housing for veterans.

Requires qualified entities to make good faith efforts to place extremely low income veterans before petitioning to house secondary tenants, with specific outreach and documentation requirements.

Takes effect immediately as an urgency statute to align state veterans housing programs with new federal regulations that exclude disability benefits from income calculations.