HUD provides rental housing assistance through three major programs— housing choice voucher, public housing, and project-based. More Than Half of Low- Income Veteran Renters Had Housing Affordability Problems

According to our analysis of ACS data, an estimated 1.3 million low- income veteran households, or about 56 percent of the 2.3 million such  households, had rents that exceeded 30 percent of their household income  in 2005 (see table 4). The extent of housing affordability problems among low-income veteran  renter households varied significantly by state in 2005 (see fig. Further, HUD policies  generally do not distinguish between income sources that are specific to  veterans, such as VA-provided benefits, and other sources of income. Most Contacted Housing Agencies and Owners of Project- Based Properties Did Not Offer a Veterans’ Preference for Admission to HUD’s Rental Assistance Programs

Less than half of the 41 largest PHAs we contacted employed a veterans’  preference for admission to their public housing or voucher programs,  while the 13 largest PBCAs we contacted reported that owners of project- based properties that they oversee generally did not use a veterans’  preference. Although the reasons for this  difference are unclear, various factors—such as different levels of need for  affordable housing among veteran and other households—could  contribute to the disparity. Eleven Percent of All Low- Income Veteran Households Received HUD Rental Assistance Compared with 19 Percent of Other Low-Income Households

Low-income veteran renter households were less likely to receive HUD  rental assistance than other households. As shown in table 6, of the total  2.3 million veteran renter households with low incomes, at least 250,000  (or 11 percent) received HUD assistance. The housing  choice voucher program served the largest number of veteran households,  followed by the project-based program, and the public housing program  (see fig. The Assistant Secretary’s letter states that “HUD objects to the  characterization that policies for its three major rental assistance  programs generally do not take veteran status into account when  determining eligibility or assistance levels” and notes that “HUD cannot  mandate that a PHA establish any particular type of preference” for their  voucher program. As our report states, our reporting objectives addressed both  of these issues: (1) how HUD’s rental assistance programs treat veteran  status (that is, whether a person is a veteran or not) and veteran-specific  benefits in determining eligibility and subsidy amounts and (2) the extent  to which PHAs and property owners participating in HUD’s rental  assistance programs establish a veterans’ preference in their  administrative and tenant selection plans. Accordingly, we did not change our report in this regard. To determine the income status and demographic and housing  characteristics of veteran households, we analyzed data from the U.S.  Bureau of the Census’s (Census) 2005 American Community Survey  (ACS), which identified households’ veteran status, income, and other  demographic characteristics, in conjunction with HUD’s defined income  categories: low (80 percent or less of area median income or AMI), very  low (50 percent or less of AMI), and extremely low (30 percent or less of  AMI). We also interviewed officials from HUD and  the Department of Veterans Affairs (VA).
Why GAO Did This Study

Veterans returning from service in Iraq and Afghanistan could increase demand for affordable rental housing. Households with low incomes (80 percent or less of the area median income) generally are eligible to receive rental assistance from the Department of Housing and Urban Development's (HUD) housing choice voucher, public housing, and project-based programs. However, because rental assistance is not an entitlement, not all who are eligible receive assistance. In response to a congressional mandate, GAO assessed (1) the income status and demographic and housing characteristics of veteran renter households, (2) how HUD's rental assistance programs treat veteran status (whether a person is a veteran or not) and whether they use a veterans' preference, and (3) the extent to which HUD's rental assistance programs served veterans in fiscal year 2005. Among other things, GAO analyzed data from HUD, the Department of Veterans Affairs (VA), and the Bureau of the Census, surveyed selected public housing agencies, and interviewed agency officials and veterans groups. GAO makes no recommendations in this report. VA agreed with the report's findings. HUD objected to the characterization in the report regarding HUD's policies on veteran status and program eligibility and subsidy amounts.

What GAO Found

In 2005, an estimated 2.3 million veteran renter households had low incomes. The proportion of veteran renter households that were low income varied by state but did not fall below 41 percent. Further, an estimated 1.3 million, or about 56 percent of these low-income veteran households, had housing affordability problems--that is, rental costs exceeding 30 percent of household income. Compared with other (nonveteran) renter households, however, veterans were somewhat less likely to be low income or have housing affordability problems. HUD's policies for its three major rental assistance programs generally do not take veteran status into account when determining eligibility or assistance levels, but eligible veterans can receive assistance. Also, HUD generally does not distinguish between income that is specific to veterans, such as VA-provided benefits, and other sources of income. The majority of the 41 largest public housing agencies that administer the housing choice voucher or public housing programs have no veterans' preference for admission. The 13 largest performance-based contract administrators that oversee most properties under project-based programs reported that owners generally did not adopt a veterans' preference. In fiscal year 2005, an estimated 11 percent of all eligible low-income veteran households (at least 250,000) received assistance, compared with 19 percent of nonveteran households. Although the reasons for the difference are unclear, factors such as differing levels of need for affordable housing among veteran and other households could influence the percentages.