This Act mandates that VA service-connected disability compensation must be excluded when determining a veteran's income eligibility for housing assistance programs and requires a GAO report on HUD program compliance.
Michael "Mike" Crapo
Senator
ID
The Disabled Veterans Housing Support Act ensures that service-connected disability compensation from the VA is excluded when determining a veteran's income eligibility for housing assistance programs. This change aims to prevent veterans from being disqualified from aid due to their disability payments. Additionally, the bill mandates a report from the Comptroller General to review how all HUD programs currently count this compensation and recommend necessary legislative changes.
New Act Mandates Excluding VA Disability Pay from Housing Income Tests to Boost Eligibility for Veterans
The newly introduced Disabled Veterans Housing Support Act aims to fix a common problem where the financial support meant to help disabled veterans actually ends up blocking them from housing assistance. Specifically, Section 2 of this legislation mandates that when state, local governments, or tribes calculate eligibility for housing and community development programs—those funded under the Housing and Community Development Act of 1974—they must completely ignore any service-connected disability compensation received from the Department of Veterans Affairs (VA).
The Disability Pay Loophole
Think about it this way: VA disability compensation is supposed to cover the costs associated with a service-connected injury, not act as regular income. But under current rules in many places, that money often gets counted as income, artificially pushing a veteran over the income threshold for low or moderate-income housing programs. For a disabled veteran trying to qualify for a subsidized apartment or community aid, this exclusion means the difference between being eligible and being told they make too much money. This change ensures that the funds intended to compensate them for their disability won't disqualify them from essential housing aid.
Accountability Check on HUD Programs
Beyond just changing the income calculation for local programs, Section 3 of the Act requires a comprehensive check-up on federal housing programs. The Comptroller General (the head of the Government Accountability Office, or GAO) must deliver a report to Congress within one year, scrutinizing every program run by the Department of Housing and Urban Development (HUD). The GAO’s job is to identify any HUD program that still counts VA disability compensation as income for eligibility purposes, checking for inconsistencies with the new exclusion rule laid out in Section 2.
Clearing the Path for Future Aid
This required report isn't just a fact-finding mission; it's a blueprint for future legislative changes. For every inconsistent HUD program the GAO finds, they must include specific recommendations for new laws to fix the problem and bring that program into alignment. This dual approach—mandating immediate change at the local level and setting up a mechanism to force change at the federal level—shows a clear intent to ensure that disability pay, which is meant to provide support, doesn't become a barrier to housing security for disabled veterans.