Summary: H.R.5002 — 101st Congress (1989-1990)All Information (Except Text)

Bill summaries are authored by CRS.

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Passed House amended (07/16/1990)

Veterans' Housing and Homeless Amendments of 1990 - Makes eligible for various veterans' home loan benefits any individual not otherwise eligible for benefits who has completed a total of at least six years of service in the Selected Reserve and who was discharged honorably, placed on the retired list, or transferred to an element of the Ready Reserve other than the Selected Reserve. Defines the amount of loan fee to be paid by a veteran qualifying under the Selected Reserve eligibility provisions.

Provides that, as of October 1, 1990: (1) the limitation on the number of homes purchased by the Secretary of Veterans Affairs for which loan guaranty defaults occurred which may be financed by a loan made by the Secretary shall cease to have effect; and (2) the Secretary may sell any note evidencing such a loan with or without recourse if the amount received is not less than the unpaid balance of such loan. Prohibits the Secretary from selling any note evidencing a loan for which the Guaranty and Indemnity Fund is available. Extends such property management provisions through December 31, 1993.

Makes permanent (currently, expires on March 1, 1991) the authority of the Secretary for default procedures for loans made, guaranteed, or insured by the Department. Extends through FY 1993 (currently, FY 1990) the procedure for real estate appraisals to be followed by the Secretary.

Authorizes the Secretary to carry out an administrative reorganization that involves closing the loan guaranty division at the Togus Veteran Affairs Medical and Regional Office Center, Togus, Maine, and transferring such functions to the Manchester Veterans Affairs Regional Office, Manchester, New Hampshire.

Provides that, in the making of a claim on a manufactured home on which a loan was made or guaranteed by the Department, the holder of the loan shall have the election of submitting a claim to the Secretary based on the value of the property securing the loan as determined by the Secretary, or on the actual proceeds from the liquidation sale of the property securing the loan. Allows payments of a claim on a guaranty to be made only after the filing of an accounting with the Secretary.

Authorizes the Secretary to provide for flat grave markers in the section of the Florida National Cemetery in which replaced grave liners were installed before July 30, 1988.

Directs the Secretary, at the request of the Secretary of Housing and Urban Development, to certify whether an applicant for assistance under any law administered by HUD is a veteran.

Provides that an applicant for a loan made, guaranteed, or insured by the Department shall not be subject to reporting requirements applicable to requests for, or receipts of, Federal contracts, grants, loans, or cooperative agreements except to the extent that such requirements are provided for in or by the Secretary pursuant to the veterans' housing loan guaranty program.

Directs the Secretary to carry out a demonstration project, during FY 1991 and 1992 and in at least two but not more than ten regional offices, for guaranteeing loans in a manner similar to which the Secretary of HUD insures adjustable rate mortgages under applicable provisions of the National Housing Act. Requires a report from the Secretary to the Congress on the implementation of such project.

Authorizes the Secretary to contract for the provision of rehabilitative and therapeutic services to veterans with any appropriate source, whether or not such source is an element of the Department of Veterans Affairs or any other Federal entity. (Current law allows such contractual arrangements with private industry or other sources outside the Department.)

Authorizes the Secretary to carry out a three-year demonstration program for the provision of transitional housing for veterans receiving therapeutic or rehabilitative services through the Department and who are furnished therapeutic work as part of such services. Allows the Secretary to purchase, lease, or otherwise acquire residential housing for such purposes. Limits the operation of such transitional housing to no more than 50 residences. Outlines conditions for such transitional housing, including the payment of rent for resident veterans. Requires a house manager for each residence used for such housing. Authorizes the Secretary to use any suitable residential property for such housing, including property acquired through default under the veterans' home loan guaranty program. Authorizes the Secretary to dispose of property after use as transitional housing and to deposit the proceeds into the General Post Fund of the Department of Veterans Affairs.

Authorizes the Secretary to make loans to assist nonprofit organizations in providing transitional housing for veterans who are or recently have been in a program for the treatment of substance abuse. Outlines terms, conditions, and limitations to such loan program.

Authorizes the Secretary to provide loans to veterans for the purpose of avoiding foreclosure of a housing loan made under the veterans' home loan guaranty program. Conditions such assistance on the following: (1) that the dwelling securing the loan is the current residence of the veteran; (2) that the veteran is at least six months' delinquent in payments on the original guaranteed loan; (3) that the veteran has lost employment or has had a substantial reduction in income through no fault of the veteran; and (4) the Secretary determines that there is a reasonable prospect that the veteran will be able to resume payment on the original loan within six months after receiving such loan assistance. Limits to $10,000 the total amount of such loans made to any veteran. Requires a veteran to enter into an agreement to repay such a loan within a reasonable period not to exceed 15 years.

Authorizes the Secretary to enter into agreements with nonprofit organizations and States or political subdivisions to sell real property acquired as the result of a loan made, insured, or guaranteed by the Secretary under the veterans' home loan guaranty program. Provides the following conditions to such agreements: (1) that the Secretary determines that such action will not adversely affect the ability of the Department to fulfill its statutory mission with respect to the veterans' home loan guaranty program; (2) that the entity to which the property is sold agrees to utilize such property solely as a shelter primarily for homeless veterans and their families, to comply with all zoning laws, and to make no use of the property that is incompatible with the area; and (3) that the Secretary determines that there is no significant likelihood of the property being sold for a price sufficient to reduce the liability of the Department or the veteran who defaulted on the loan.

Authorizes the Secretary, in order to assist veterans who are participants in a compensated work therapy program, to convey to nonprofit organizations and States and political subdivisions real property acquired by the Secretary as the result of default on a loan made or guaranteed by the Secretary under the veterans' home loan program. Allows conveyance of such property only to persons who enter into an agreement with the Secretary to employ veterans who are participants in a compensated work therapy program. Terminates such agreement authority as of September 30 1993.