Will I Lose My Public Assistance Benefits If I Receive a VCF Award?

How much a VCF award will or will not affect your public housing assistance benefits depends on how the award is paid. If you are concerned about losing Public Housing Assistance or other benefits, the time to plan for an award is before any amounts are paid by the VCF or the VCF award funds are disbursed by your lawyers. 

The most common method to ensure that a VCF claimant’s award does not cause the 9/11 VCF claimant eligible for public benefits is a supplemental needs trust. A supplemental needs trust is a planning tool used to shelter a person's assets (such as  a VCF award) in order to maintain eligibility for governmental benefits like Medicaid and other public benefit programs.  The SNT enhances a person's quality of life by paying for needs Medicaid does not cover.

After the terrorist attacks of September 11th, 2001, the United States government established the September 11th Victim Compensation Fund (VCF) to provide financial compensation to individuals and their families who were directly affected by the attacks. Individuals who were present at one of the 9/11 attack sites on September 11, 2001, or the months following, and who have since been diagnosed with a 9/11-related illness, may be eligible for compensation from the VCF.

Eligibility for Receiving a VCF Award

If you or a family member were affected by the September 11th attacks, you may be eligible to receive a VCF. In order to be eligible, an individual must have been at one of the crash sites – the WTC center, the Pentagon, or the Shanksville, PA site – or in the NYC Exposure Zone at some point during the period beginning on September 11, 2001, through May 30, 2002, and have since been diagnosed with an illness that is certified by the WTC Health Program.

The NYC Exposure Zone is an area of Lower Manhattan that extends south from Houston Street and covers a 1.5 mile radius around the Ground Zero attack site. The program serves survivors and rescue and recovery workers as well as those who lived, worked, or went to school in the affected areas. 

VCF claims are filed online through a web portal, although hard copy claim forms are available if needed. You can contact the VCF Helpline, 1-855-885-1555, for more information on claimant eligibility.

How Much is Your VCF Award?

The amount of compensation awarded by the VCF is determined on a case by case basis after you provide all documentation and submit medical records. Claims processing is based on the severity of the injury, the type of medical treatment required, and the amount of economic and noneconomic loss incurred. The VCF has established a compensation matrix that provides a minimum and maximum award amount for each type of injury, including the following:

• The maximum noneconomic award for any single type of cancer (except skin cancer) is $250,000, and the maximum noneconomic award for noncancerous conditions is $90,000. In limited circumstances, the $90,000 cap can be increased. 
• The VCF caps economic loss at $200,000 per year. The compensation is determined based on loss of earnings and other financial losses incurred as a result of a 9/11-related condition. The loss of earnings award will be offset by pension, Social Security Disability (SSD) or private disability insurance, workers’ compensation, or other supplemental security income. 

Understanding the Parameters of Public Housing Assistance Benefits

Public housing assistance benefits are designed to provide financial assistance to individuals and families who need help paying for rent, utilities, and other living expenses. Eligibility for public housing assistance benefits is based on factors such as income, assets, and family size.  

The Department of Housing and Urban Development (HUD) is one of the main programs in the U.S. to provide housing assistance for eligible low-income families, the elderly, and persons with disabilities. Your eligibility for housing assistance is determined based on income limits developed by HUD. HUD sets the lower income limits at 80% and very low-income limits at 50% of the median income for the county or metropolitan area in which you live. The income limits set by HUD vary from place to place, so one may be eligible at one location but not at another. 

Your VCF Award and Subsidized Housing

If you are receiving public housing assistance benefits and submitted a claim for a VCF award, it is important to be aware that some subsidized housing programs may require you to report your VCF award. Depending on the program, your VCF award may or may not affect your eligibility for public housing assistance benefits, so it is important to understand the requirements of the housing program before submitting a VCF claim and especially before any award is made or paid to you.

Determination of rental amounts for HUD-subsidized housing involves calculating annual income. Payments received from Social Security, annuities, insurance policies, retirement funds, pensions, disability or death benefits, and other similar types of periodic receipts, including lump-sum amount or prospective monthly amounts, are included in annual income. However, exclusions from annual income include payments from lump-sum additions to family assets, such as inheritances, insurance payments, capital gains, and settlement for personal or property losses. 

Work With an Experienced 9/11 Lawyer

If you are considering submitting a claim to the VCF, it is important to work with an experienced 9/11 lawyer to ensure that you understand the parameters of public housing assistance benefits and receive the maximum amount of compensation available to you. A dedicated 9/11 lawyer can help you understand the claims process and answer any questions you may have about your VCF award and how it will affect your public housing assistance benefits. Contact the experienced attorneys at Hansen & Rosasco, LLP today to find out more about your VCF claim.