Service-connected disability compensation is excluded from the income test
What the document says“When determining whether a person is a person of low and moderate income, a person of low income, or a person of moderate income under this paragraph, a State, unit of general local government, or Indian tribe shall exclude any service-connected disability compensation received by such person from the Department of Veterans Affairs.”
The whole substance of section 2. The words quoted are added at the end of section 102(a)(20) of the Housing and Community Development Act of 1974, cited in the section as 42 U.S.C. 5302(a)(20), as a new subparagraph (C). The duty falls on a State, a unit of general local government, or an Indian tribe making the determination, and it covers all three of the income categories the paragraph names.
What the document actually says“When determining whether a person is a person of low and moderate income, a person of low income, or a person of moderate income under this paragraph, a State, unit of general local government, or Indian tribe shall exclude any service-connected disability compensation received by such person from the Department of Veterans Affairs.”
A state, town, or tribe must add up what a person earns. It must leave out VA pay for a war wound. Then it can say if the person earns little.
A 1974 housing law sets who counts as low income. This adds a new rule at the end of that test. VA pay for a war wound no longer counts as money earned.
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