HUD Announces Significant Policy Changes to Aid Homeless Veterans

The U.S. Department of Housing and Urban Development (HUD) has announced significant policy changes to help veterans experiencing homelessness. The new regulations ensure that veterans receiving service-connected disability benefits are not ineligible for supportive housing projects supported by project-based rental assistance through the HUD-Department of Veteran Affairs (VA) Supportive Housing (HUD-VASH) program.

Previously, VA benefits, provided for injuries or illnesses acquired or worsened during military service, were considered income when determining eligibility for housing assistance. The agency said this caused some veterans to exceed the income threshold for these programs. The updated policy will now exclude these benefits from income calculations, allowing more veterans to qualify for housing assistance. Alongside this change, HUD awarded $20 million to public housing agencies to further improve the HUD-VASH program.

“No veteran should ever have to experience homelessness, but when they do, they should not face barriers to getting help they deserve,” said Acting Secretary Adrianne Todman. “This policy change will ensure that veterans who are receiving the disability benefits they earned through service and sacrifice can access the housing assistance and supportive services they need to resolve their homelessness.”

The HUD-VASH program is a vital resource for housing veterans experiencing homelessness. It pairs rental assistance through housing vouchers from HUD with case management and other supportive services provided by the VA. The homeless program staff at local VA medical centers identify veterans experiencing homelessness and refer them to public housing agencies, which issue vouchers to eligible veterans and their families. Officials said VA staff provide case management and other supportive services to help veterans find and maintain housing, and connect them to healthcare, employment, and other support services.

VA Secretary Denis McDonough emphasized the importance of the new policy, stating, “The days of a veteran having to choose between getting the VA benefits they deserve and the housing support they need are finally over. This is a critical step forward that will help veterans nationwide – and bring us one step closer to our ultimate goal of putting an end to veteran homelessness for good.”

To expand access to HUD-VASH for veterans, HUD is:

• Requiring public housing agencies (PHAs) that administer HUD-VASH to set the initial income eligibility for veterans at 80% of Area Median Income, rather than 50%. This higher initial income eligibility threshold was previously optional but is now mandatory.
• 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.

According to HUD officials, the agency has been collaborating with the U.S. Department of the Treasury to assess the impact of the alternative income definition for HUD-VASH participants looking to receive Low Income Housing Credits-subsidized housing. Treasury officials said that agency expects to issue guidance on this issue soon. HUD will also encourage state and local governments to make corresponding changes in their subsidy programs to ensure that all veterans experiencing homelessness have access to supportive housing.

“Every veteran deserves a roof over their head, and the Biden-Harris Administration is doing everything we possibly can to end veteran homelessness,” said White House Domestic Policy Advisor Neera Tanden. “Today’s actions reflect President Biden and Vice President Harris’s commitment to breaking down barriers to housing so that every veteran gets the benefits they have earned.”

The revised HUD-VASH operating requirements also include additional policy changes that will improve the administration of the HUD-VASH program. This will allow PHAs to:

• Make non-competitive awards of project-based HUD-VASH contracts to housing projects or units on VA facilities that serve HUD-VASH families.
• Approve Exception Payment Standards as Reasonable Accommodations up to 140% of the Fair Market Rent.
• Set a separate minimum rent policy (including a zero minimum rent) for HUD-VASH participants.

Additionally, HUD awarded $20 million for additional administrative fee funding to 245 public housing agencies in 43 states currently administering HUD-VASH. With this funding, officials said they’re 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.

Since the program’s inception, HUD-VASH has assisted more than 200,000 veterans in exiting homelessness and obtaining permanent, affordable housing. The HUD-VASH program has been crucial in reducing the number of veterans experiencing homelessness by more than 50% since 2010.

For more details on the revised HUD-VASH operating requirements, visit HUD’s website.