Well, the plot thickens.

The Pension for Aid and Attendance is considered non-taxable income by the IRS. Unfortunately, it is treated as ordinary income by HUD in my state. That means that, with the extra $1700 per month that the pension would provide (all to be disbursed for home care,) my friends rent would go way up. He has section 8 assistance. His rent would more than double, practically gobbling up almost all of his small social security check.

The company called Vetercans' Care Coordination insisted this wouldn't be the case. I did some deep checking. It is the case. Now they admit it too. So my friend doesn't want the benefit, and I understand his position.

Meanwhile, through the VAMC, he has been deemed eligible for some home care that does not involve this benefit, so that is what I am helping him pursue. His medicare will, supposedly, pay for it. It is taking quite a while to get set up.

We recently talked to a social worker who also believed that the Pension for Aid and Attendance would work out ideally. He did not understand the implications for HUD housing and was surprised when I told him.

It seems, according to one of my contacts, that HUD is interpreting this benefit differently, depending on what state you live in. VCC said they have lawyers who are fighting for a consistent interpretation across the country. Something's really wrong with this picture.