Homeless veterans who were denied federal rental assistance because their monthly disability payments from the Department of Veterans Affairs exceeded income limits can now receive housing subsidies through a joint program run by the Department of Veterans Affairs and the Department of Housing and Urban Development. (Stars and Stripes)
WASHINGTON – Veterans who were no longer eligible for federal housing assistance due to income limitations imposed by the U.S. Department of Veterans Affairs’ monthly disability checks will be eligible for rental subsidies under a rule change announced Thursday.
Changes to the Veteran Affairs Supportive Housing program – which is jointly operated by the VA and the Department of Housing and Urban Development – will, according to the VA, also provide rental vouchers to homeless veterans who were previously denied the subsidy because their monthly disability checks exceeded income limits.
“For a very small percentage of homeless veterans, the level of combat-related benefits they receive due to the severity of their disability causes the veteran to exceed the low-income threshold,” VA press secretary Terrence Hayes said Thursday.
A veteran with a 100% disability rating who is dependent on his or her spouse and children will receive approximately $49,000 in disability compensation annually, according to the VA.
Under the rule change, disability payments will not be credited to veterans who apply for “permanent supportive housing” under the program known as HUD-VASH due to income limitations.
To be eligible for rental assistance, annual household income must not exceed the maximum limits set by HUD, which vary depending on family size and region of the country.
Eligibility limits for veterans would be set at 80 percent of the region’s median income, rather than the current 50 percent, HUD said.
“Using this higher initial income threshold is currently optional, but HUD is now making this increase mandatory,” the agency said.
For example, the median income in the Los Angeles area for a single-person household in 2024 is $77,700, which is 80% of income, while in Jackson, Mississippi, it is $46,800.
In addition, HUD will transfer $20 million to 245 public housing authorities to help disabled veterans post housing deposits, encourage more landlords to participate in the voucher program, and provide mediation services in disputes between tenants and landlords.
According to HUD, approximately 84,000 veterans are assisted by HUD-VASH and another 1,700 veterans with insurance policies are looking for rental housing.
The vouchers can be used for apartments on the private market as well as public housing for low-income renters, HUD said.
A trial is taking place this week in U.S. District Court for the Central District of California over the pace at which the VA is moving to develop public housing for disabled veterans on a 388-acre campus in west Los Angeles.
The new rule also follows a ruling by a federal court in California that found the VA discriminates against homeless veterans by denying them eligibility for subsidized housing based on their disability benefits. Veterans with more severe disabilities receive higher benefits.
Lawyers representing homeless veterans said Judge David Carter’s ruling in the case led to the rule change.
“It was only after a lawsuit by homeless disabled veterans and a federal judge’s ruling declaring HUD’s policy illegal and discriminatory that the Department of Housing and Urban Development was able to announce a major policy change that will change the way veterans’ disability payments are considered in assessing eligibility for affordable housing,” said Mark Rosenbaum, an attorney at Public Counsel, a nonprofit law firm that represents homeless veterans.
By counting disability payments as income, HUD and VA prevented the neediest, most disabled veterans from qualifying for public housing, according to Public Counsel.
However, according to the VA, a veteran’s total income – including monthly VA disability compensation – is taken into account when determining a tenant’s monthly rent payments based on a sliding fee scale.
Under the voucher assistance program, a renter pays at least 30% of their adjusted family income for an apartment, with HUD covering the difference.
Veterans who qualify for the HUD-VASH program have at least four months or 120 days after being accepted into the program to find housing.
The “permanent supportive housing” that disabled veterans are eligible for under the program includes monthly rental assistance and case management services that give them access to other benefits, including health care and assistance with basic expenses, including food and utilities.
The support is intended to ensure that disabled veterans can maintain their housing and live independently, the VA said.
“An eligible family issued a HUD-VASH voucher must receive the required case management services provided by the partner VA health facility,” the VA said.
