Department of Housing and Urban Development (Photo: U.S. Dept. of Housing and Urban Development (HUD))

A new ruling on the Veteran Affairs Supportive Housing, HUD-VASH, program has lifted restrictions that previously disqualified Veterans receiving disability income from federal rental assistance after a recent federal court ruling declared HUD’s previous policy of counting disability payments as income unlawful and discriminatory. 

Before this change, Veterans who received monthly disability payments from the VA were ineligible for federal housing subsidies if their income exceeded certain limits. The updated policy ensures that disability payments will no longer be considered when Veterans apply for permanent supportive housing through HUD-VASH, a program co-managed by the VA and the Department of Housing and Urban Development, HUD.

The program now has a higher income eligibility threshold, allowing Veterans to qualify for rental assistance if their household income is up to 80% of the area’s median income, compared to the previous 50% cap. This higher threshold, initially optional, is now mandatory under HUD’s new guidelines. Additionally, HUD has allocated $20 million to 245 public housing agencies to support security deposits and incentivize landlord participation in housing voucher programs for disabled Veterans.

Previously, counting disability payments as income excluded some of the most severely disabled Veterans from qualifying for low-income housing, despite their significant needs, according to Public Counsel. While these payments will no longer disqualify Veterans from receiving assistance, total income—including disability compensation—will still factor into rent calculations on a sliding-fee scale. Under the voucher assistance program, Veterans accepted into HUD-VASH must pay at least 30% of their adjusted family income toward rent, with HUD covering the rest. Once accepted, Veterans have 120 days to find suitable housing.

These changes occur against the backdrop of an ongoing trial in the U.S. District Court in California where 14 Veterans are suing the VA over delays in developing low-income housing for disabled Veterans on a 388-acre campus in West Los Angeles. 

“With HUD’s new ruling, they’re now saying that they’re not going to count disability compensation as income, which I think is a good thing, and the test of how this will all work will be when I see our most Disabled Veterans actually get into that housing in the West LA VA,” stated Robert Reynolds, a Veterans advocate and trial participant, noting the importance of this change.

Advocates and officials have praised the new policy as a long-overdue and much-needed change, with the potential to impact Veterans nationwide.

Author: Rikki Almanza

Rikki is a Web Content Coordinator for the American Legion, Department of California. With a deep-rooted connection to the military, a spouse who is a Navy veteran, a father who served in the Air Force for 25 years, and a grandfather who proudly served, Rikki is committed to using her skills and knowledge to provide valuable assistance and resources to servicemembers and veterans.