HUD announced changes to the HUD-U.S. Department of Veterans Affairs (VA) Supportive Housing (HUD-VASH) program in a press release on August 8. The changes aim to help more veterans with service-connected disability benefits gain access to supportive housing developments.
HUD-VASH vouchers, targeted to veterans experiencing homelessness, pair rental assistance with case management and other supportive services provided by the VA. These services include assistance finding and retaining housing, healthcare, employment, and other supports. Veterans experiencing homelessness also often receive VA benefits related to an injury or illness acquired during their military service. Previously, these benefits were counted towards veterans’ income when determining their eligibility for certain supportive housing developments. As a result, some veterans exceeded the income threshold for these programs, barring them from obtaining the services they needed to find and maintain stable housing.
The changes to the program will expand access to HUD-VASH by:
- Requiring public housing agencies (PHAs) administering HUD-VASH to raise the initial income eligibility for veterans to 80% of area median income (AMI) rather than the previous standard of 50% of AMI.
- Excluding veterans’ VA benefits when determining income eligibility for the HUD-VASH program.
The updated requirements also include changes to improve the administration of the HUD-VASH program, including providing PHAs with the authority to:
- Make non-competitive awards of project-based HUD-VASH contracts to housing projects or units on VA facilities that serve HUD-VASH families. Project-basing vouchers ties the assistance provided through the voucher to a specific housing development rather than to a specific household, helping secure the long-term affordability of the development.
- Approve Exemption Payment Standards as a Reasonable Accommodation up to 140% of the Fair Market Rent (FMR).
- Set a separate minimum rent policy – including a zero minimum rent – for HUD-VASH participants.
HUD is working with the U.S. Department of the Treasury, which oversees the Low-Income Housing Tax Credit (LIHTC) program, to draft guidance regarding the effect of these changes on HUD-VASH participants living in or seeking housing in a LIHTC-funded development.