Housing Solutions for Veterans: A New Rule Change Benefits Disabled Veterans

As an elder law and estate planning professional, one of my top concerns is ensuring that older adults, including veterans, have access to adequate and affordable housing. For many veterans, especially those with significant disabilities, securing affordable housing has been a major challenge due to income restrictions related to disability benefits from the Department of Veterans Affairs (VA). However, a recent rule change brings promising news for these veterans.

Addressing Income Barriers

Until recently, veterans receiving disability benefits from the VA often faced barriers when seeking federal housing subsidies due to income limits. The Veteran Affairs Supportive Housing (HUD-VASH) program, a collaborative effort between the VA and the Department of Housing and Urban Development (HUD), has traditionally provided rental assistance to homeless veterans. Unfortunately, veterans with higher disability compensation, such as those with a 100% disability rating, were sometimes disqualified from receiving this support because their benefits pushed their income above the eligibility threshold.

A Significant Policy Shift

Thanks to a new rule change, this issue is being addressed head-on. Under the revised HUD-VASH guidelines, disability payments will no longer be counted when determining eligibility for "permanent supportive housing." This adjustment ensures that veterans who receive substantial disability compensation can now access the housing support they need. Previously, a veteran with a 100% disability rating, along with a spouse and child, could receive around $49,000 annually in disability benefits. This income level might have excluded them from rental assistance under the former rules.

New Income Thresholds

The updated eligibility criteria now focus on an annual household income that must not exceed 80% of the area median income, as opposed to the previous 50% threshold. For instance, in 2024, the income limit for a one-person household in Los Angeles is $77,700, whereas in Jackson, Mississippi, it is $46,800. This broader income threshold is a significant step towards making affordable housing more accessible for veterans with severe disabilities.

Additional Support and Resources

HUD has committed $20 million to enhance the HUD-VASH program, which includes providing help with security deposits, recruiting landlords for the voucher program, and offering mediation services for tenant-landlord disputes. Currently, about 84,000 veterans benefit from HUD-VASH, with another 1,700 veterans actively searching for housing. These vouchers can be used for both private market apartments and public housing options. 

A Response to Legal Challenges

This policy shift follows a legal challenge in California, where a federal court ruled that the VA's previous approach to excluding veterans based on disability income was discriminatory. This ruling prompted the VA to reevaluate and revise its policies, leading to the implementation of the new rules.

Rent Payments and Housing Assistance

Under the updated system, veterans' total income, including VA disability compensation, will still be considered for rent payments. Veterans participating in the HUD-VASH program are expected to contribute at least 30% of their adjusted family income towards rent, with HUD covering the remainder. Accepted veterans have up to 120 days to find suitable housing. The "permanent supportive housing" provided through the program includes ongoing rental assistance and case management services, helping veterans access essential benefits such as healthcare and basic living expenses.

A Vital Step Forward

This policy change is a crucial development in ensuring that veterans with severe disabilities can secure stable housing and live independently with the necessary support. It represents a significant advancement in addressing the needs of our veterans, allowing them to thrive in their communities with the assistance they deserve.

For those navigating the complexities of elder law and estate planning, understanding these changes can help provide better guidance and support for veteran clients seeking housing solutions.