Oh, Rose, what a mess. Unfortunately I don't think the lawyers will win in this case since housing is a state's-rights sort of oversight, the State will always know "better" what it needs and be able to apply its rules for its citizens and have discretion on what to tax for itself. The housing doesn't move across state lines :-) so. . . The HUD is just the money giver and overall rule maker but can't mess with the state's right to tax. It's kind of like the SSI money and policies and why they are different state-to-state; SSDI is Federal/Social Security so they can't mess with it but SSI is state-run.

I hope the VAMC home care works out.