Sherman Applauds HUD’s Decision to Exclude VA Service-Connected Disability Benefits from Income Calculation for VA Housing Eligibility

Washington, DC – Today, the Department of Housing and Urban Development (HUD), in coordination with the Department of Treasury and state and local programs, has decided to amend its definition of annual income to exclude VA service-connected disability payments received by a disabled veteran for eligibility purposes for housing built under the Housing and Urban Development-Veterans Affairs Supportive Housing (HUD-VASH) Program.

Many disabled veterans on the West LA VA Campus – that need assistance the most – have been unable to access housing programs for veterans because of how income has been defined. The more severe a disability is, the more disability benefits a veteran receives, and the less likely it has been that they could qualify for veteran housing.

On January 11, 2024, while then HUD Secretary Marcia Fudge appeared before the House Financial Services Committee, Congressman Brad Sherman (CA-32) urged the Secretary to take this critical action to ensure that Veterans disability benefits will not close the door to the housing being created for them. Sherman pressed the Secretary at that time not to wait for the legislative fix included in Congressman Sherman’s bill the Housing Unhoused Disabled Veterans Act (HUDVA), but that this change could be made at the regulatory level.

Earlier this year, Congressman Sherman introduced the Housing Unhoused Disabled Veterans Act (HUDVA), which similarly amends existing law to exclude VA disability benefits from annual income when considering eligibility for veteran housing and would get homeless disabled veterans into the housing built for them on the West LA VA campus. In May, HUDVA passed the Financial Services Committee unanimously 49-0 but has not yet received a vote on the House floor.

“I am glad that HUD has decided to take this necessary action, as there is nothing more shameful than a homeless, disabled veteran that lost a limb defending us and is now on the streets,” said Congressman Brad Sherman. “This regulatory change will make a real difference in the lives of disabled homeless veterans. I want to commend Congressman Mark Takano, Ranking Member of the House Veteran Affairs Committee, for his work and leadership on this issue, Congressmembers Ted Lieu, Mike Levin, and Salud Carbajal, as well as Acting Secretary Todman for her decision to make this critical change.” Locally, Mayor Karen Bass, and LA County Supervisor Lindsay Horvath have championed such changes as well.

Sherman noted: “There are many other federal programs for which veteran disability payments are not considered income, such as for income tax purposes. HUD’s decision addresses this inconsistency by appropriately excluding disability benefits from a veteran’s income for housing eligibility purposes.”

The HUD-VASH program is a cornerstone in the fight against veteran homelessness, combining HUD's financial support with the VA's essential services.

Unfortunately, restrictive Area Median Income limitations and the inclusion of disability benefits in income calculations unjustly excluded many disabled veterans from this critical lifeline, leaving them stranded without a vital support system. Not anymore.

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