TAMPA, Fla. — A new federal housing law could make it easier for some veterans experiencing homelessness to qualify for assistance while also helping other veterans better understand the home loan benefits available to them.
The bipartisan 21st Century ROAD to Housing Act, which became law July 11, includes several provisions focused specifically on veterans.
One permanently excludes veterans’ disability compensation from annual income calculations used to determine eligibility for HUD-VASH, a federal program that combines rental assistance with Department of Veterans Affairs case management and supportive services for veterans experiencing homelessness.
Other provisions are aimed at increasing awareness of the VA Home Loan Program and allowing veterans to more easily compare VA financing with other mortgage options.
The changes could have a significant reach in the Tampa Bay area. According to the Department of Veterans Affairs, the James A. Haley Veterans’ Hospital in Tampa serves 125,570 enrolled veterans across Hillsborough, Pasco, Hernando and Polk counties.
For military veteran Beth Anne Dougherty, the challenges surrounding housing are personal.
“I can talk all day long,” Dougherty said.
Her journey from homelessness eventually brought her to Manifestations Veterans Village, a tiny-home community for veterans in Tampa.
Dougherty recalled being hospitalized after suffering a transient ischemic attack, commonly called a mini-stroke, and facing a decision about where she would go next.
“My caseworker came in and she said, ‘All right … what do you want to do, stay or go?’” Dougherty recalled. “I had to make the choice myself.”
Dougherty said homeownership remains something she thinks about, including the possibility of eventually using a VA-backed mortgage.
“I can get a VA housing loan,” she said. “I still have that option.”
The ROAD to Housing Act does not create the major financial advantages associated with VA loans. Those benefits already existed. Instead, the law includes new requirements intended to make sure eligible veterans know the program is available.
VA-backed purchase loans can allow eligible borrowers to buy without a down payment and generally do not require private mortgage insurance. Interest rates can also be competitive with other types of mortgages.
U.S. Rep. Kathy Castor, (D-Tampa), said too many veterans may not know about those benefits.
“You have relief from down payment requirements, mortgage insurance, and you have a lower interest rate,” Castor said. “But often times all of those benefits are not provided to our veterans. They don’t know the benefits of the VA home loan.”
The law requires a disclosure on the uniform residential mortgage application informing veterans that they may qualify for a VA home loan. It also calls for FHA mortgage disclosures to include information allowing eligible veterans to compare VA financing with FHA options.
The law addresses a different hurdle for veterans experiencing homelessness.
Previously, VA disability compensation could be included when calculating a veteran’s income for HUD-VASH eligibility. That could result in some disabled veterans exceeding income limits despite experiencing homelessness.
The new law permanently excludes that disability compensation from the calculation, potentially allowing more veterans to qualify for the program.
At Manifestations Veterans Village, Tavis Myrick, director of education, said the demand for housing is evident whenever one of the community’s homes becomes available.
“Once somebody moves out, within a week, someone else is right in. And so that shows the demand. It shows how important this is to the community,” Myrick said.
Dougherty’s neighbor, Nathaniel, another military veteran, said he spent about nine months living in his car before securing housing.
“We’re always struggling,” he said. “The veterans always seem to be struggling, especially … the veterans that came out of Vietnam.”
Myrick said the goal of the village is straightforward.
“We want to be able to serve those who served us by representing our country,” he said.
For Nathaniel, efforts that create additional paths to stable housing are welcome.
“Veterans need all the help that we can get,” he said.
Federal agencies will be responsible for implementing several provisions of the new housing law, including the mortgage disclosure changes intended to connect more eligible veterans with VA home loan benefits.