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determine the member’s entitlement to VHA for the
dependents.
In Alaska or Hawaii— The allowance prescribed
for the area within Alaska or Hawaii where the
dependents reside will be used in determining the
member’s entitlement to VHA for dependents when
both the PDS and dependents’ residence are in the same
state, provided the member in Alaska is entitled to
FSA—Type I or the member in Hawaii would be
entitled to FSA—Type I if the PDS were outside the
United States.
In cases when the dependents reside in different
locations, the member will designate the primary
residence of the dependents for VHA entitlement.
Husband and Wife Both Members Rate
When both husband and wife are members, each is
entitled to VHA as a member, with or without
dependents as applicable, depending on whether the
member has a dependent other than the spouse. This
entitlement exists whether husband and wife maintain
a joint residence or separate residences. In no case will
a spouse who is also a member on active duty be
considered as a dependent for entitlement purposes.
When a member is married to another member and
the couple maintains a joint residence, the combined
maximum authorized housing expense (HE) and
combined maximum authorized housing income (HI)
of both members will be used to calculate the VHA
offset instead of each member’s proportional share of
the HE or HI.
VHA Offset Rate
When the member’s prescribed VHA plus BAQ
exceeds the member’s rental or ownership expenses, the
VHA payable will be computed at an offset rate. The
resulting VHA entitlement should bring the member’s
VHA in line with his or her actual housing expenses.
APPLICABILITY OF OFFSET RATE.— The
VHA offset rate is based upon the occupancy of
permanent quarters and the amount of the housing
expenses as compared to the housing income. The
VHA offset does not apply to those members who are
initially reporting to a new PDS and have not occupied
permanent quarters.
Upon arrival at a new PDS or residence of
dependents, as applicable, a member is authorized VHA
without offset for a period of 60 days or until the
member and/or dependents occupy permanent quarters,
whichever occurs first.
AMOUNT OF OFFSET REDUCTION.— The
amount of the reduction will not exceed the member’s
prescribed VHA. In fact, if the member’s housing costs
equal or exceed the total of the member’s prescribed
VHA plus BAQ, the member is entitled to the full VHA
without offset.
EFFECTIVE
DATE
O F O F F S E T
COMPUTATION.— The offset method of computing
VHA will become effective when a member and/or his
or her dependents occupy a permanent residence or 60
days after the member’s arrival at the PDS, whichever
occurs first.
EXCEPTIONS TO OFFSET RATE.— Offset
provisions do not apply to members who are in the
following status:
In transit between PDSs, but otherwise entitled
to VHA
Residing in temporary quarters upon arrival at
the new PDS (not to exceed 60 days)
Residing in temporary quarters before departing
an old PDS (not to exceed 60 days)
Undergoing separation or retirement processing
at a separation activity, other than the last PDS
(not to exceed 60 days)
COMPUTATION OF OFFSET RATE.— Upon
occupancy of a permanent residence or beginning on
the 61st day after reporting to a new PDS, a member
will report the actual rental or ownership expenses
(SUME not included) by completing a VHA Certificate.
Member’s Expenses Are Less Than Prescribed
VHA Plus BAQ.— If the member’s allowable rental or
ownership expenses are less than the sum of prescribed
VHA and the member’s BAQ, the member’s prescribed
VHA will be reduced by 50 percent of the difference
between the rental or ownership expenses and the sum
of the prescribed VHA plus BAQ. In no event will the
amount of the reduction exceed the prescribed VHA for
the member.
Member’s Expenses Are Equal to or More Than
Prescribed VHA Plus BAQ.— When the member’s
rental or ownership expenses are equal to or more than
the total of the member’s prescribed VHA plus BAQ,
the member will be entitled to the full prescribed VHA.
Figures 8-10 and 8-11 show two examples of the
8-20
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