The Department of Housing and Urban Development (HUD) published a Notice in the August 13, 2024, Federal Register announcing policy changes to the Veterans Affairs Supportive Housing (VASH) program to improve access for veterans experiencing homelessness.
Homeless veterans often receive disability benefits as a result of disabilities that were acquired or made worse during military service. Before this change, such benefits were considered income for HUD programs, causing some veterans to exceed the income limits for specific assisted housing programs. HUD is expanding access to these programs by adding five new policies to the HUD-VASH program:
IRS Revenue Procedure Adopts Income Exclusion for the LIHTC Program
On September 24, 2024, the IRS issued Revenue Procedure 2024-38, providing the same income exclusion for LIHTC and Tax-Exempt Bond properties. It should be noted that the exclusion only applies to tenants receiving assistance under the HUD-VASH program. It does not apply to LIHTC or tax-exempt bond residents who do not receive assistance under the HUD-VASH program. Operators of LIHTC or Tax-Exempt Bond properties should also note that the programs' income limits have not changed, so a HUD-VASH recipient may not income qualify for the LIHTC or Tax-Exempt Bond Program if they qualify at the new 80% HUD limit.
Effective immediately, all projects with tenants assisted by the HUD-VASH program will exclude the total amount of any VA disability benefits received by those applicants or residents.
Managers of LIHTC or Tax-Exempt Bond properties serving tenants with vouchers should request information from local PHAs regarding whether the vouchers are being provided under the HUD-VASH program. If so, any VA disability income should be excluded.
Subscribe to our news articles to stay up to date.
We care about the protection of your data. Read our Privacy Policy.