HUD Modifies VASH Program to Improve Veteran Assistance

Veterans’ service-connected disability benefits will be excluded when determining eligibility.

HUD recently announced new policy changes to the Veterans Affairs Supportive Housing (VASH) program to improve access for more veterans experiencing homelessness. Since the program’s inception, HUD-VASH has helped more than 200,000 veterans exit homelessness and obtain permanent affordable housing. According to HUD, the HUD-VASH program has been the cornerstone of our nation’s success in reducing the number of veterans experiencing homelessness by more than 50 percent since 2010.

Homeless veterans often receive VA benefits as a result of an injury or illness that was acquired or worsened during military service. Before this announced change, these benefits were considered income when determining eligibility for certain supportive housing developments, which caused some veterans to exceed the income threshold for these programs.

HUD’s policy changes will help more homeless veterans with service-connected disability benefits gain access to these housing developments. HUD is expanding access to HUD-VASH for veterans by:

• Setting initial income eligibility at 80 percent of AMI: HUD is requiring PHAs that administer HUD-VASH to set the initial income eligibility for veterans at 80 percent of Area Median Income (AMI), rather than 50 percent of AMI. The use of this higher initial income eligibility threshold is currently optional, and many housing agencies have already adopted the higher threshold, but HUD is now making this increase mandatory.
• Excluding service-connected disability benefits from income calculations: HUD is adopting an alternative definition of annual income for applicants and participants of the HUD-VASH program that excludes veterans’ service-connected disability benefits when determining eligibility. This alternative annual income definition could be adopted by other housing subsidy programs to determine income eligibility.
• Non-competitive awards of project-based HUD-VASH contracts: This is a new flexibility to allow noncompetitive selection of one or more project-based voucher projects where all units serve HUD-VASH families at a VA facility.
• Exception payment standards: Approval of up to 140 percent of the Fair Market Rent as a reasonable accommodation for a person with a disability but only with HUD approval.
• Separate minimum rent policies: This new flexibility allows PHAs the option for zero minimum rent for their HUD-VASH program.

Additionally, HUD awarded $20 million to 245 PHAs in 43 states to continue to improve the HUD-VASH program. With this funding, HUD is encouraging PHAs to expand their housing search assistance to support veterans, expand landlord recruitment for the program, offer incentives and retention payments, help veterans with security deposits, and provide landlord-tenant mediation activities.