The Ministry of Housing and Urban Development has announced plans to change Federal politics to remove a barrier to rental housing assistance that affects some veterans with war-related disabilities.

The goal of this measure is to stop counting certain disability benefits as income, which would affect applicants’ ability to receive assistance from HUD’s Department of Veterans Affairs assisted living program. Resolving this issue could help some disabled veterans without homes receive these benefits.

The policy change could also be of interest to home lenders looking to sell loans that disclose environmental, social and governance benefits. a market that has developed for this type of financingA loan secured by a building whose residents benefit from HUD-VASH could be eligible for this market.

While counting disability benefits as income can help veterans demonstrate that they have sufficient funds to make repayments on a home loan, it poses a barrier to those seeking to purchase rental housing through HUD-VASH because that program has an income cap.

Removing this hurdle means that for veterans with war-related disabilities, “the days of having to choose between the VA benefits they are entitled to and the housing assistance they need are finally over,” VA Secretary Denis McDonough said in a press release.

“This policy change will ensure that veterans who receive the disability benefits earned through their service and sacrifice have access to the housing assistance and supportive services they need,” said Adrianne Todman, acting secretary of HUD.

HUD-VASH combines housing vouchers with assistance. VA health center staff help veterans connect with the program and the public housing authorities that issue the vouchers under HUD’s auspices. To support changes to the program, HUD, with support from the White House, has awarded $20 million to agencies in 43 states to improve it.

“Today’s actions reflect President Biden and Vice President Harris“We want to support efforts to reduce barriers to housing,” White House domestic policy adviser Neera Tanden said on Thursday.

In addition to not counting service-connected disability benefits as income, the public housing authorities that administer HUD-VASH must raise the income capped at 80% of the area median income by 50%. While this was previously possible, it was at the discretion of the public housing authorities. Now it is mandatory.

Public housing authorities will also have the ability to award noncompetitive, project-based HUD-VASH contracts to projects or units in VA facilities that serve eligible families and provide adequate housing for up to 140% of the fair market rent. They will also be able to establish a separate minimum rent policy that can be as low as zero.

HUD is currently consulting with the Department of Treasury about whether the alternative income definition in the program will impact participants seeking housing in buildings subsidized by low-income tax credits.

Other obstacles to receiving housing assistance for disabled veterans that federal agencies have had to eliminate in the past have included improperly charged mortgage fees due to clerical errors regarding the borrower’s disability status. The VA made a payment of $400 million in 2019 To reimburse borrowers for fees wrongly charged due to such errors.