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California is home to around one-third of all homeless veterans in the United States. Photo by Frank Armstrong
California is home to around one-third of all homeless veterans in the United States. Photo by Frank Armstrong
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HUD ends practice of counting veteran disability benefits as income

ENCINITAS — Thanks to changes by the U.S. Department of Housing and Urban Development, veterans at risk of homelessness today have expanded access to rental assistance and affordable housing programs.

Rep. Mike Levin (D-San Juan Capistrano), who has advocated for this type of reform for nearly two years, announced the changes this week, which end HUD’s practice of counting veterans’ disability benefits as income for the purposes of rental assistance.

“These policy changes will make a tremendous impact in getting homeless veterans off the streets and into affordable housing units for a stable future,” Levin said. “We know that having a stable home produces better life outcomes, and our veterans deserve nothing less.

“Now, veterans will not have their disability benefits held against them when applying for rental assistance. I thank HUD for acting and heeding my call to do more to help homeless veterans. Our nation’s heroes should never go hungry, unemployed or without a place to call home.”

California is home to around one-third of all homeless veterans in the United States. According to the Department of Veterans Affairs point-in-time count from January 2023, nearly 11,000 homeless veterans lived in California.

As of the January 2024 point-in-time count, there were 865 homeless veterans in San Diego County.

“No veteran should ever have to experience homelessness, but when they do, they should not face barriers to getting help they deserve,” said Acting HUD 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.”

Before HUD’s changes, service-connected disability benefits were counted as income when determining eligibility for housing assistance — causing some veterans to exceed the income eligibility threshold for housing programs.

“Our PATH teams frequently encounter veterans who must be turned away because they have too much income from their service-connected disability benefits to qualify for lifesaving programs —leaving some to choose between needed benefits and housing opportunities,” said Jonathan Castillo, chief regional officer of nonprofit PATH, or People Assisting the Homeless. “Thankfully, this policy shift will allow more veterans, not only in San Diego County, but across the country, to get connected to housing and supportive services.”

According to Levin’s office, going forward, veterans will not be denied admission to supportive housing subsidized by HUD due to their service-connected disability benefits.

“I was called to serve my country after September 11th and when I came home from Iraq, I was not the same,” said Isaac Estevez, U.S. Army veteran. “My PTSD caused me to fall into homelessness and substance abuse, and I committed crimes just to survive. Then I connected with the VA and PATH, and thanks to HUD-VASH, I was provided the support I needed to achieve sobriety and get connected to housing.

“The HUD changes announced today will help more veterans like me find the support and stability they deserve,” he said.

In December 2022, Levin sent a letter to HUD and the Office of Management and Budget requesting that language excluding veteran disability compensation from income calculations for the purposes of HUD programs be included in the implementation of the Housing Opportunity Through Modernization Act of 2016.

While it was not included in the final rule published in Feb. 2023, Levin continued to advocate for the change. In May 2024, Levin and Rep. Brad Sherman, D-Sherman Oaks, introduced the Housing Unhoused Disabled Veterans Act, a bipartisan bill to exclude disability compensation and pension benefits received by a veteran from HUD’s definition of income for the purposes of housing assistance.

The revised HUD-VASH operating requirements can be found here.

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