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Computing the VHA Offset for Sharers
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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