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116th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 116-58
======================================================================
BLUE WATER NAVY VIETNAM VETERANS ACT OF 2019
_______
May 10, 2019.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Takano, from the Committee on Veterans' Affairs, submitted the
following
R E P O R T
[To accompany H.R. 299]
The Committee on Veterans' Affairs, to whom was referred
the bill (H.R. 299) to amend title 38, United States Code, to
clarify presumptions relating to the exposure of certain
veterans who served in the vicinity of the Republic of Vietnam,
and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 9
Background and Need for Legislation.............................. 9
Hearings......................................................... 16
Subcommittee Consideration....................................... 17
Committee Consideration.......................................... 17
Committee Correspondence......................................... 18
Committee Votes.................................................. 21
Committee Oversight Findings..................................... 21
New Budget Authority and CBO Cost Estimate Committee Cost
Estimate....................................................... 21
Statement of General Performance Goals and Objectives............ 21
New Budget Authority, Entitlement Authority, and Tax Expenditures 21
Earmarks and Tax and Tariff Benefits............................. 22
Federal Mandates Statement....................................... 22
Advisory Committee Statement..................................... 22
Constitutional Authority Statement............................... 22
Applicability to Legislative Branch.............................. 22
Statement on Duplication of Federal Programs..................... 22
Section-by-Section Analysis of the Legislation................... 22
Committee Cost Estimate..........................................
Congressional Budget Office Estimate.............................
Changes in Existing Law Made by the Bill as Reported............. 24
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Blue Water Navy Vietnam Veterans Act
of 2019''.
SEC. 2. CLARIFICATION OF PRESUMPTIONS OF EXPOSURE FOR VETERANS WHO
SERVED IN VICINITY OF REPUBLIC OF VIETNAM.
(a) In General.--Chapter 11 of title 38, United States Code, is
amended by inserting after section 1116 the following new section:
``Sec. 1116A. Presumptions of service connection for veterans who
served offshore of the Republic of Vietnam
``(a) Service Connection.--For the purposes of section 1110 of this
title, and subject to section 1113 of this title, a disease covered by
section 1116 of this title becoming manifest as specified in that
section in a veteran who, during active military, naval, or air
service, served offshore of the Republic of Vietnam during the period
beginning on January 9, 1962, and ending on May 7, 1975, shall be
considered to have been incurred in or aggravated by such service,
notwithstanding that there is no record of evidence of such disease
during the period of such service.
``(b) Exposure.--A veteran who, during active military, naval, or air
service, served offshore of the Republic of Vietnam during the period
beginning on January 9, 1962, and ending on May 7, 1975, shall be
presumed to have been exposed during such service to an herbicide agent
unless there is affirmative evidence to establish that the veteran was
not exposed to any such agent during that service.
``(c) Effective Date of Award.--(1) Except as provided by paragraph
(2), the effective date of an award under this section shall be
determined in accordance with section 5110 of this title.
``(2)(A) Notwithstanding subsection (g) of section 5110 of this
title, the Secretary shall determine the effective date of an award
based on a claim under this section for an individual described in
subparagraph (B) by treating the date on which the individual filed the
prior claim specified in clause (i) of such subparagraph as the date on
which the individual filed the claim so awarded under this section.
``(B) An individual described in this subparagraph is a veteran, or a
survivor of a veteran, who meets the following criteria:
``(i) The veteran or survivor submitted a claim for
disability compensation on or after September 25, 1985, and
before January 1, 2020, for a disease covered by this section,
and the claim was denied by reason of the claim not
establishing that the disease was incurred or aggravated by the
service of the veteran.
``(ii) The veteran or survivor submits a claim for disability
compensation on or after January 1, 2020, for the same
condition covered by the prior claim under clause (i), and the
claim is approved pursuant to this section.
``(d) Determination of Offshore.--Notwithstanding any other provision
of law, for purposes of this section, the Secretary shall treat a
location as being offshore of Vietnam if the location is not more than
12 nautical miles seaward of a line commencing on the southwestern
demarcation line of the waters of Vietnam and Cambodia and intersecting
the following points:
----------------------------------------------------------------------------------------------------------------
Latitude
``Points Geographic Names North Longitude East
----------------------------------------------------------------------------------------------------------------
At Hon Nhan Island, Tho Chu Archipelago Kien Giang Province 915.0' 10327.0'
----------------------------------------------------------------------------------------------------------------
At Hon Da Island southeast of Hon Khoai Island Minh Hai Province 822.8' 10452.4'
----------------------------------------------------------------------------------------------------------------
At Tai Lon Islet, Con Dao Islet in Con Dao-Vung Toa Special Sector 837.8' 10637.5'
----------------------------------------------------------------------------------------------------------------
At Bong Lai Islet, Con Dao Islet 838.9' 10640.3'
----------------------------------------------------------------------------------------------------------------
At Bay Canh Islet, Con Dao Islet 839.7' 10642.1'
----------------------------------------------------------------------------------------------------------------
At Hon Hai Islet (Phu Qui group of islands) Thuan Hai Province 958.0' 1095.0'
----------------------------------------------------------------------------------------------------------------
At Hon Doi Islet, Thuan Hai Province 1239.0' 10928.0'
----------------------------------------------------------------------------------------------------------------
At Dai Lanh point, Phu Khanh Province 1253.8' 10927.2'
----------------------------------------------------------------------------------------------------------------
At Ong Can Islet, Phu Khanh Province 1354.0' 10921.0'
----------------------------------------------------------------------------------------------------------------
At Ly Son Islet, Nghia Binh Province 1523.1' 109 9.0'
----------------------------------------------------------------------------------------------------------------
At Con Co Island, Binh Tri Thien Province 1710.0' 10720.6'
----------------------------------------------------------------------------------------------------------------
``(e) Herbicide Agent.--In this section, the term `herbicide agent'
has the meaning given that term in section 1116(a)(3) of this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1116 the following new item:
``1116A. Presumptions of service connection for veterans who served
offshore of the Republic of Vietnam.''.
(c) Implementation.--
(1) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement
section 1116A of title 38, United States Code, as added by
subsection (a), before prescribing new regulations under such
section.
(2) Updates.--(A) Not later than 120 days after the date of
the enactment of this Act, the Secretary shall submit a report
to the Committees on Veterans' Affairs of the House of
Representatives and the Senate regarding the plans of the
Secretary--
(i) to conduct outreach under subsection (d); and
(ii) to respond to inquiries from veterans regarding
claims for disability compensation under section 1116A
of title 38, United States Code, as added by subsection
(a) of this section.
(B) On a quarterly basis during the period beginning on the
date of the enactment of this Act and ending on the date on
which regulations are prescribed to carry out such section
1116A, the Secretary shall submit to the Committees on
Veterans' Affairs of the House of Representatives and the
Senate updates on the status of such regulations.
(3) Pending cases.--
(A) Authority to stay.--The Secretary may stay a
claim described in subparagraph (B) until the date on
which the Secretary commences the implementation of
such section 1116A.
(B) Claims described.--A claim described in this
subparagraph is a claim for disability compensation--
(i) relating to the service and diseases
covered by such section 1116A; and
(ii) that is pending at the Veterans Benefits
Administration or the Board of Veterans'
Appeals on or after the date of the enactment
of this Act and before the date on which the
Secretary commences the implementation of such
section 1116A.
(d) Outreach.--
(1) Requirement.--The Secretary of Veterans Affairs shall
conduct outreach to inform veterans described in paragraph (2)
of the ability to submit a claim for disability compensation
under section 1116A of title 38, United States Code, as added
by subsection (a). Such outreach shall include the following:
(A) The Secretary shall publish on the website of the
Department a notice that a veterans described in
paragraph (2) may submit or resubmit a claim for
disability compensation under such section 1116A.
(B) The Secretary shall notify in writing the veteran
service organization community of the ability of
veterans described in paragraph (2) to submit or
resubmit claims for disability compensation under such
section 1116A.
(2) Veteran described.--A veteran described in this paragraph
is a veteran who, during active military, naval, or air
service, served offshore of the Republic of Vietnam during the
period beginning on January 9, 1962, and ending on May 7, 1975.
(e) Reports.--Not later than January 1, 2021, and annually thereafter
for two years, the Secretary of Veterans Affairs shall submit to the
Committees on Veterans' Affairs of the House of Representatives and the
Senate a report regarding claims for disability compensation under
section 1116A of title 38, United States Code, as added by subsection
(a). Each report shall include, with respect to the calendar year
preceding the report, disaggregated by the regional offices of the
Department of Veterans Affairs, the following:
(1) The number of claims filed under such section.
(2) The number of such claims granted.
(3) The number of such claims denied.
(f) Health Care.--Section 1710(e)(4) of title 38, United States Code,
is amended by inserting ``(including offshore of such Republic as
described in section 1116A(d) of this title)'' after ``served on active
duty in the Republic of Vietnam''.
(g) Effective Date.--The amendments made by this section shall take
effect on January 1, 2020.
SEC. 3. PRESUMPTION OF HERBICIDE EXPOSURE FOR CERTAIN VETERANS WHO
SERVED IN KOREA.
(a) In General.--Chapter 11 of title 38, United States Code, is
amended by inserting after section 1116A, as added by section 2, the
following new section:
``Sec. 1116B. Presumption of herbicide exposure for certain veterans
who served in Korea
``(a) Presumption of Service-Connection.--(1) For the purposes of
section 1110 of this title, and subject to section 1113 of this title,
a disease specified in subsection (b) that becomes manifest as
specified in that subsection in a veteran described in paragraph (2)
shall be considered to have been incurred or aggravated in the line of
duty in the active military, naval, or air service, notwithstanding
that there is no record of evidence of such disease during the period
of such service.
``(2) A veteran described in this paragraph is a veteran who, during
active military, naval, or air service, served in or near the Korean
Demilitarized Zone (DMZ), during the period beginning on September 1,
1967, and ending on August 31, 1971.
``(b) Diseases.--A disease specified in this subsection is--
``(1) a disease specified in paragraph (2) of subsection (a)
of section 1116 of this title that becomes manifest as
specified in that paragraph; or
``(2) any additional disease that--
``(A) the Secretary determines in regulations
warrants a presumption of service-connection by reason
of having positive association with exposure to an
herbicide agent; and
``(B) becomes manifest within any period prescribed
in such regulations.
``(c) Herbicide Agent.--For purposes of this section, the term
`herbicide agent' has the meaning given such term in section 1821(d) of
this title.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1116A, as added by section 2, the following new item:
``1116B. Presumption of herbicide exposure for certain veterans who
served in Korea.''.
(c) Implementation.--
(1) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement
section 1116B of title 38, United States Code, as added by
subsection (a), before prescribing new regulations under such
section.
(2) Updates.--(A) Not later than 120 days after the date of
the enactment of this Act, the Secretary shall submit a report
to the Committees on Veterans' Affairs of the House of
Representatives and the Senate regarding the plans of the
Secretary to respond to inquiries from veterans regarding
claims for disability compensation under section 1116B of title
38, United States Code, as added by subsection (a) of this
section.
(B) On a quarterly basis during the period beginning on the
date of the enactment of this Act and ending on the date on
which regulations are prescribed to carry out such section
1116B, the Secretary shall submit to the Committees on
Veterans' Affairs of the House of Representatives and the
Senate updates on the status of such regulations.
(3) Pending cases.--
(A) Authority to stay.--The Secretary may stay a
claim described in subparagraph (B) until the date on
which the Secretary commences the implementation of
section 1116B of title 38, United States Code, as added
by subsection (a).
(B) Claims described.--A claim described in this
subparagraph is a claim for disability compensation--
(i) relating to the service and diseases
covered by such section 1116B; and
(ii) that is pending at the Veterans Benefits
Administration or the Board of Veterans'
Appeals on or after the date of the enactment
of this Act and before the date on which the
Secretary commences the implementation of such
section 1116B.
(d) Effective Date.--The amendments made by this section shall take
effect on January 1, 2020.
SEC. 4. BENEFITS FOR CHILDREN OF CERTAIN THAILAND SERVICE VETERANS BORN
WITH SPINA BIFIDA.
(a) In General.--Subchapter III of chapter 18 of title 38, United
States Code, is amended by adding at the end the following new section:
``Sec. 1822. Benefits for children of certain Thailand service veterans
born with spina bifida
``(a) Benefits Authorized.--The Secretary may provide to any child of
a veteran of covered service in Thailand who is suffering from spina
bifida the health care, vocational training and rehabilitation, and
monetary allowance required to be paid to a child of a Vietnam veteran
who is suffering from spina bifida under subchapter I of this chapter
as if such child of a veteran of covered service in Thailand were a
child of a Vietnam veteran who is suffering from spina bifida under
such subchapter.
``(b) Spina Bifida Conditions Covered.--This section applies with
respect to all forms and manifestations of spina bifida, except spina
bifida occulta.
``(c) Veteran of Covered Service in Thailand.--For purposes of this
section, a veteran of covered service in Thailand is any individual,
without regard to the characterization of that individual's service,
who--
``(1) served in the active military, naval, or air service in
Thailand, as determined by the Secretary in consultation with
the Secretary of Defense, during the period beginning on
January 9, 1962, and ending on May 7, 1975; and
``(2) is determined by the Secretary, in consultation with
the Secretary of Defense, to have been exposed to a herbicide
agent during such service in Thailand.
``(d) Herbicide Agent.--For purposes of this section, the term
`herbicide agent' means a chemical in a herbicide used in support of
United States and allied military operations in Thailand, as determined
by the Secretary in consultation with the Secretary of Defense, during
the period beginning on January 9, 1962, and ending on May 7, 1975.''.
(b) Conforming Amendment to Definition of ``Child''.--Section 1831(1)
of such title is amended--
(1) in subparagraph (B)--
(A) by striking ``subchapter III of this chapter''
and inserting ``section 1821 of this title''; and
(B) in clause (i), by striking ``section 1821 of this
title'' and inserting ``that section''; and
(2) by adding at the end the following new subparagraph:
``(C) For purposes of section 1822 of this title, an
individual, regardless of age or marital status, who--
``(i) is the natural child of a veteran of
covered service in Thailand (as determined for
purposes of that section); and
``(ii) was conceived after the date on which
that veteran first entered service described in
subsection (c) of that section.''.
(c) Clerical Amendments.--
(1) Subchapter heading.--The heading for subchapter III of
chapter 18 of such title is amended by inserting ``AND
THAILAND'' after ``KOREA''.
(2) Table of sections.--The table of sections at the
beginning of chapter 18 of such title is amended--
(A) by striking the item relating to subchapter III
and inserting the following new item:
``subchapter iii--children of certain korea and thailand service
veterans born with spina bifida'';
and
(B) by inserting after the item relating to section
1821 the following new item:
``1822. Benefits for children of certain Thailand service veterans born
with spina bifida.''.
(d) Implementation.--
(1) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement
section 1822 of title 38, United States Code, as added by
subsection (a), before prescribing new regulations under such
section.
(2) Updates.--(A) Not later than 120 days after the date of
the enactment of this Act, the Secretary shall submit a report
to the Committees on Veterans' Affairs of the House of
Representatives and the Senate regarding the plans of the
Secretary to respond to inquiries from veterans regarding
claims for disability compensation under section 1822 of title
38, United States Code, as added by subsection (a) of this
section.
(B) On a quarterly basis during the period beginning on the
date of the enactment of this Act and ending on the date on
which regulations are prescribed to carry out such section
1822, the Secretary shall submit to the Committees on Veterans'
Affairs of the House of Representatives and the Senate updates
on the status of such regulations.
(3) Pending cases.--
(A) Authority to stay.--The Secretary may stay a
claim described in subparagraph (B) until the date on
which the Secretary commences the implementation of
section 1822 of title 38, United States Code, as added
by subsection (a).
(B) Claims described.--A claim described in this
subparagraph is a claim for benefits--
(i) relating to the spina bifida and service
covered by such section 1822; and
(ii) that is pending at the Veterans Benefits
Administration or the Board of Veterans'
Appeals on or after the date of the enactment
of this Act and before the date on which the
Secretary commences the implementation of such
section 1822.
(e) Report.--Not later than 180 days after the date of the enactment
of this Act, the Secretary of Veterans Affairs, in consultation with
the Secretary of Defense, shall submit to the Committees on Veterans'
Affairs of the House of Representatives and the Senate a report
identifying--
(1) the military installations of the United States located
in Thailand during the period beginning on January 9, 1962, and
ending on May 7, 1975, at which an herbicide agent (as defined
in section 1822 of title 38, United States Code, as added by
subsection (a)) was actively used; and
(2) the period of such use.
(f) Effective Date.--The amendments made by this section shall take
effect on January 1, 2020.
SEC. 5. UPDATED REPORT ON CERTAIN GULF WAR ILLNESS STUDY.
Not later than 180 days after the date of the enactment of this Act,
the Secretary of Veterans Affairs shall submit to the Committees on
Veterans' Affairs of the House of Representatives and the Senate an
updated report on the findings, as of the date of the updated report,
of the Follow-up Study of a National Cohort of Gulf War and Gulf Era
Veterans under the epidemiology program of the Department of Veterans
Affairs.
SEC. 6. LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF
VETERANS AFFAIRS.
(a) Adjustment of Loan Limit.--
(1) In general.--Section 3703(a)(1) of title 38, United
States Code, is amended--
(A) in subparagraph (A)--
(i) in clause (i)(IV), by striking ``the
lesser of the maximum guaranty amount (as
defined in subparagraph (C)) or'';
(ii) in clause (ii), by striking
``subparagraph (B) of this paragraph'' and
inserting ``subparagraph (B) or (C)'';
(B) in subparagraph (B)--
(i) by striking ``The maximum'' and inserting
``With respect to loans described in subclauses
(I), (II), or (III) of subparagraph (A)(i), the
maximum''; and
(ii) by striking ``or in the case'' and all
that follows through ``subparagraph (C)),'';
and
(C) by striking subparagraph (C) and inserting the
following new subparagraph (C):
``(C)(i) With respect to loans described in subclause (IV) of
subparagraph (A)(i) made to a veteran not covered by clause (ii), the
maximum amount of guaranty entitlement available to the veteran shall
be 25 percent of the loan.
``(ii) With respect to loans described in subclause (IV) of
subparagraph (A)(i) made to a covered veteran, the maximum amount of
guaranty entitlement available to the veteran shall be 25 percent of
the Freddie Mac conforming loan limit, reduced by the amount of
entitlement previously used by the veteran under this chapter and not
restored as a result of the exclusion in section 3702(b) of this title.
``(iii) In this subparagraph:
``(I) The term `covered veteran' means a veteran who has
previously used entitlement under this chapter and for whom the
full amount of entitlement so used has not been restored as a
result of the exclusion in section 3702(b) of this title.
``(II) The term `Freddie Mac conforming loan limit' means the
limit determined under section 305(a)(2) of the Federal Home
Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a
single-family residence, as adjusted for the year involved.''.
(2) Loans to native american veterans.--Section 3762(c) of
such title is amended--
(A) by striking paragraph (1); and
(B) by redesignating paragraphs (2) and (3) as
paragraphs (1) and (2), respectively.
(3) Conforming amendment.--Section 3710(d)(4) of such title
is amended by striking ``section 3703(a)(1)(B) of this title''
and inserting ``subparagraph (B) or (C) of section 3703(a)(1)
of this title''.
(b) Adjustment of Loan Fees.--Section 3729(b)(2) of title 38, United
States Code, is amended by striking the loan fee table and inserting
the following:
----------------------------------------------------------------------------------------------------------------
Active duty
``Type of loan veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a) 2.15 2.40 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after October 1, 2004, and before
January 1, 2020)
(A)(ii) Initial loan described in section 3710(a) 2.30 2.30 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after January 1, 2020, and before
January 1, 2022)
(A)(iii) Initial loan described in section 2.15 2.15 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other initial loan described in
section 3710(a) other than with 5-down or 10-
down (closed on or after January 1, 2022, and
before October 1, 2029)
(A)(iv) Initial loan described in section 3710(a) 1.40 1.40 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after October 1, 2029)
(B)(i) Subsequent loan described in section 3.30 3.30 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after October
1, 2004, and before January 1, 2020)
(B)(ii) Subsequent loan described in section 3.60 3.60 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after January
1, 2020, and before January 1, 2022)
(B)(iii) Subsequent loan described in section 3.30 3.30 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after January
1, 2022, and before October 1, 2029)
(B)(iv) Subsequent loan described in section 1.25 1.25 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after October
1, 2029)
(C)(i) Loan described in section 3710(a) to 1.50 1.75 NA
purchase or construct a dwelling with 5-down
(closed before January 1, 2020)
(C)(ii) Loan described in section 3710(a) to 1.65 1.65 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2020, and before
January 1, 2022)
(C)(iii) Loan described in section 3710(a) to 1.50 1.50 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2022, and before
October 1, 2029)
(C)(iv) Loan described in section 3710(a) to 0.75 0.75 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2029)
(D)(i) Loan described in section 3710(a) to 1.25 1.50 NA
purchase or construct a dwelling with 10-down
(closed before January 1, 2020)
(D)(ii) Loan described in section 3710(a) to 1.40 1.40 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2020, and before
January 1, 2022)
(D)(iii) Loan described in section 3710(a) to 1.25 1.25 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2022, and before
October 1, 2029)
(D)(iv) Loan described in section 3710(a) to 0.50 0.50 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2029)
(E) Interest rate reduction refinancing loan 0.50 0.50 NA
(F) Direct loan under section 3711 1.00 1.00 NA
(G) Manufactured home loan under section 3712 1.00 1.00 NA
(other than an interest rate reduction
refinancing loan)
(H) Loan to Native American veteran under section 1.25 1.25 NA
3762 (other than an interest rate reduction
refinancing loan)
(I) Loan assumption under section 3714 0.50 0.50 0.50
(J) Loan under section 3733(a) 2.25 2.25 2.25''.
----------------------------------------------------------------------------------------------------------------
(c) Waiver of Fees for Purple Heart Recipients.--Section 3729(c)(1)
of such title is amended--
(1) by striking ``or from a surviving spouse'' and inserting
``, from a surviving spouse''; and
(2) by inserting before the period at the end the following:
``, or from a member of the Armed Forces who is serving on
active duty and who provides, on or before the date of loan
closing, evidence of having been awarded the Purple Heart''.
(d) Effective Date.--The amendments made by this section shall apply
with respect to a loan guaranteed under section 3710 of title 38,
United States Code, on or after January 1, 2020.
(e) Guidance.--Notwithstanding section 501 of title 38, United States
Code, the Secretary of Veterans Affairs may issue guidance to implement
this section before prescribing new regulations under sections 3703,
3729, and 3762 of such title, as amended by this section.
SEC. 7. INFORMATION GATHERING FOR DEPARTMENT OF VETERANS AFFAIRS HOME
LOAN APPRAISALS.
(a) In General.--Section 3731(b) of title 38, United States Code, is
amended by adding at the end the following new paragraph:
``(3) The Secretary shall permit an appraiser on a list developed and
maintained under subsection (a)(3) to make an appraisal for the
purposes of this chapter based solely on information gathered by a
person with whom the appraiser has entered into an agreement for such
services.''.
(b) Effective Date.--The amendments made by this section shall apply
with respect to an appraisal under section 3731 of such title, on or
after January 1, 2020.
(c) Guidance.--Notwithstanding section 501 of such title, the
Secretary of Veterans Affairs may issue guidance to implement this
section before prescribing new regulations under sections 3731 of such
title, as amended by subsection (a).
Purpose and Summary
H.R. 299, as amended, would, effective January 1, 2020,
extend the presumption of exposure for purposes of entitlement
to service connection for diseases associated with exposure to
herbicide agents, such as Agent Orange to Blue Water Navy (BWN)
Vietnam veterans.\1\ Additionally, H.R. 299, as amended, would
extend the presumption of exposure to certain herbicide agents
to veterans who served in or near the Korean Demilitarized Zone
(DMZ) during the period beginning on September 1, 1967, and
ending on August 31, 1971.
---------------------------------------------------------------------------
\1\BWN veterans are defined as veterans who served offshore of the
Republic of Vietnam (defined below) between the dates of January 9,
1962, and May 7, 1975.
---------------------------------------------------------------------------
Consequently, these veterans may be eligible for veterans'
benefits, such as compensation and healthcare, if they develop
a disease linked to herbicide exposure. H.R. 299, as amended,
would require the Secretary of the Department of Veterans
Affairs (Secretary) to conduct outreach to inform these
veterans and veterans service organizations of the ability to
submit a claim for disability compensation if they develop
certain diseases.
H.R. 299, as amended, would extend eligibility for U.S.
Department of Veterans Affairs (VA) benefits to certain
children with spina bifida (other than spina bifida occulta)
who were born to veterans who served in Thailand between
January 9, 1962, and May 7, 1975, and were determined by the
Secretary to have been exposed to an herbicide agent.
H.R. 299, as amended, also requires the Secretary to submit
a report to the Committees on Veterans' Affairs of the House of
Representatives and the Senate regarding the use of herbicide
agents in Thailand during the Vietnam era. Further, VA is
required to submit reports to the Committees on Veterans'
Affairs of the House of Representatives and the Senate on
claims filed by BWN veterans for disability compensation under
this Act, including the numbers of claims granted and denied.
The bill, as amended, would also require the Secretary to
submit an update to the Committees regarding the Follow-up
Study of the National Cohort of Gulf War and Gulf Era Veterans,
which examines the health of veterans who served in the Gulf
War elsewhere during the same period.
H.R. 299, as amended, would also make improvements to VA's
Home Loan Guaranty program to ensure that veterans can use
their home loan benefit in high-cost areas, and receive
appraisals in a timely and cost-efficient manner.
Representative Mark Takano of California introduced H.R.
299 on January 8, 2019.
Background and Need for Legislation
Toxic exposures
The Agent Orange Act of 1991 (P.L. 102-4) established the
presumption of service connection for certain diseases
associated with exposure to herbicide agents for veterans who
served in the Republic of Vietnam between January 9, 1962, and
May 7, 1975. This presumption simplifies the disability claim
process for veterans who develop conditions linked with
exposure to toxic herbicide agents due to the difficulty of
proving actual exposure to herbicide agents, particularly when
exposure occurred decades earlier. Additionally, this policy
reduces the expense and time for VA to gather evidence of
service connection on a case-by-case basis and streamlines the
adjudication process.
VA's current guidelines do not acknowledge that BWN
veterans may have been exposed to Agent Orange during the
Vietnam era. Instead, VA limits the presumption of herbicide
exposure to veterans who actually set foot on land in the
Republic of Vietnam or served in the country's inland
waterways. H.R. 299, as amended, would remedy this inequity by
extending the presumption of exposure for service connection
for herbicide related diseases\2\ to BWN veterans who served in
the offshore waters of Vietnam between January 9, 1962, and May
7, 1975.
---------------------------------------------------------------------------
\2\VA currently acknowledges that the following conditions are
linked with exposure to herbicides used during the Vietnam era: AL
Amyloidosis, Chloracne, Type II Diabetes Mellitus, Hodgkin's Disease,
Ischemic Heart Disease, Chronic B-cell Leukemias, Multiple Myeloma,
Non-Hodgkin's Lymphoma, Parkinson's Disease, Early-onset Peripheral
Neuropathy, Porphyria Cutanea Tarda, Prostate Cancer, Respiratory
Cancers, Soft-tissue Sarcoma. Accordingly, if a Vietnam veteran who
served on land in Vietnam or on inland waterways develops one of these
conditions, VA automatically presumes the condition is service
connected.
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This bill is necessary because many veterans' advocates
contend that BWN veterans likely experienced exposure to
herbicide agents during the Vietnam era and are now
experiencing significant health problems as a result. For
example, it is possible that toxic substances sprayed in
Vietnam to defoliate the mainland subsequently entered rivers
and streams that then ran into the seas surrounding Vietnam.\3\
U.S. Naval ships used water drawn from the sea to make potable
water, which BWN veterans used for drinking, bathing, and
cooking. Because BWN veterans may have been exposed to toxic
herbicide agents, advocates argue it is unfair that veterans
who served on land are eligible for presumptive VA benefits,
while those who served off the coast of Vietnam are not, even
if they develop the same diseases.
---------------------------------------------------------------------------
\3\Institute of Medicine Committee on Blue Water Navy Vietnam
Veterans and Agent Orange Exposure, Blue Water Navy Vietnam Veterans
and Agent Orange Exposure (2011).
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In response to concerns raised by veterans' advocates, in
2011 the Institute of Medicine (IOM) attempted to determine
whether BWN veterans experience a comparable range of exposure
to herbicide agents as those on the ground in Vietnam. However,
the IOM concluded that given the passage of time and lack of
sampling data collected during the conflict, there is not
enough information to conclusively determine whether Blue Water
Navy personnel came into contact to defoliants during their
service. IOM also determined that it is unlikely that such data
will be available in the future. As a result, VA has decided
that the lack of scientific evidence prevents the Department
from extending the presumption to BWN veterans.\4\
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\4\V.A. Gen. Couns. Op. 27-97 (July 23, 1997).
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Tragically, many veterans who served off the coast of the
Republic of Vietnam are now experiencing health problems that
are associated with herbicide exposure. However, since BWN
veterans do not receive an automatic presumption of herbicide
exposure based on the areas where they served, these veterans
must provide evidence of actual exposure to herbicide agents to
successfully file a claim for VA benefits for their herbicide
related conditions. It is very difficult, if not impossible,
for BWN veterans to gather such evidence because their service
records may be missing or incomplete--if contemporaneous
records documenting exposure were even created in the first
place. As a result, VA often denies claims for benefits filed
by BWN veterans.
Additionally, on January 29, 2019, the Federal Circuit
decided Procopio v. Wilkie\5\, holding that the ``Republic of
Vietnam'' unambiguously includes its 12 nautical mile
territorial sea. As a result, the Court concluded that all BWN
veterans serving in the 12 nautical mile territorial sea were
considered Vietnam veterans for purposes of VA benefits, and
were therefore eligible to receive the presumption of herbicide
exposure. The Court's decision did not, however, define the
term ``territorial sea.'' As a result, this bill is necessary
to codify the Court's decision and mitigate concerns that VA
may narrowly interpret the decision, thereby excluding some BWN
veterans.\6\ To ensure that VA construes this bill to extend
the presumption to all applicable BWN veterans who may have
been exposed to herbicide agents, the Committee intends that
VA's definition of the Republic of Vietnam for this purpose be
broad and comprehensive.
---------------------------------------------------------------------------
\5\Procopio v. Wilkie, 913 F.3d 1371 (Fed. Cir. 2019).
\6\Liermann, Shane, Assistant National Legislative Director of the
Disabled American Veterans, Statement to the House of Representatives
Committee on Veterans' Affairs Subcommittee on Disability Benefits and
Memorial Affairs Hearing on May 1, 2019.
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For purposes of this bill, a BWN veteran is one who served
in the offshore waters of Vietnam. As defined by Section 2,
offshore waters include a 12 nautical mile radius extending off
a baseline designated by a series of geographic points. The
bill intends to capture all servicemembers who were present
between the shoreline and the farthermost reaches of the 12
nautical mile radius during the relevant timeframe.
The bill does not specify the evidentiary proof required to
establish presence within the offshore waters during the
relevant time frame. Thus, the Secretary may propose guidance
and regulations relating to the necessary evidence to establish
qualifying service. The difficulty an individual may experience
establishing specific whereabouts during a period of war is
well-known\7\ and deference to lay evidence may be warranted in
some situations. However, lay evidence generally does not
supersede objective evidence of location in the offshore
waters, such as deck logs. Any forthcoming rules or guidance
should be consistent with the existing rules regarding
evidentiary proof. VA should assist a veteran, to the extent
possible, with developing evidence necessary to substantiate
his or her claim.
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\7\Fuentes, Carlos, Director of the National Legislative Service
for the Veterans of Foreign Wars, Statement to the House of
Representatives Committee on Veterans' Affairs Subcommittee on
Disability Benefits and Memorial Affairs Hearing on May 1, 2019
(stating, ``I was in Afghanistan in 2009 and I could never be able to
present to you any evidence of where I was at and exactly what I was
exposed to . . . and I can't even fathom how hard that is for our
Vietnam vet[erans].'').
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This bill contemplates coverage of all vessels that served
on or below the offshore waters of Vietnam. Though the majority
of qualifying servicemembers served aboard ships, there may
also be instances of submarines present within the offshore
waters, and these vessels are also contemplated under this Act.
However, an aircraft that passed in the airspace above the
offshore waters would not have drawn water from the sea and
therefore is not considered present within the offshore waters
for purposes of this legislation.
The bill, as amended, provides a presumption of herbicide
agent exposure for all BWN veterans except in instances where
there is affirmative evidence to establish that the veteran was
not exposed to any such agent during service. Under existing
law, the presumption of herbicide exposure may be rebutted when
there is affirmative evidence to the contrary or evidence that
the disease is due to another cause.\8\
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\8\See also 38 U.S.C. Sec. 1113(a).
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Additionally, because BWN veterans have generally been
unable to successfully apply for benefits for conditions that
may have been caused by service in Vietnam due to the lack of a
presumption of exposure, Section 2 of H.R. 299, as amended,
would provide retroactive benefits for veterans who were denied
benefits between September 1, 1985, and January 1, 2020, if the
individual veteran or survivor beneficiary of a deceased
veteran re-files a claim for benefits. This provision is
consistent with special effective date rules given to Vietnam
veterans who served on land or on inland waterways under Nehmer
v. United States Department of Veterans Affairs, to the extent
that decision contemplated retroactive awards for benefits.
This ensures parity for BWN veterans and their survivors.\9\
However, unlike Nehmer, H.R. 299, as amended, does not require
VA to automatically re-adjudicate previously denied BWN claims.
Under this bill, a BWN veteran, or beneficiary, is required to
submit a new claim for disability compensation on or after
January 1, 2020, for the same condition that was previously
denied, to be eligible for retroactive benefits. However, a BWN
veteran is not limited in seeking benefits for any disease
added to the Secretary's list of herbicide related diseases at
a date after enactment of this legislation. Nothing in this
bill intends to limit the rights of Nehmer class members who
seek relief for benefits under the Nehmer Consent Decree.
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\9\Under Nehmer, for any new conditions or diseases VA recognized
as linked to exposure to herbicides between September 25, 1985, and
September 30, 2015, VA was required to automatically readjudicate any
previously denied claims of Vietnam veterans and their survivors for
those conditions or diseases. Moreover, if the veteran was awarded
benefits, VA was required to establish that the effective date of the
claim was the date the first claim was received. See 38 C.F.R.
Sec. 3.816(c)(2)-(3). See also: Nehmer v. United States Veterans
Administration, 712 F. Supp. 1404 (N.D. Cal. 1989) (Nehmer I); Nehmer
v. United States Veterans Administration, 32 F. Supp. 2d. 1175 (N.D.
Cal. 1999) (Nehmer II); Nehmer v. Veterans Administration of the
Government of the United States, 284 F.3d 1158 (9th Cir. 2002) (Nehmer
III).
---------------------------------------------------------------------------
To ensure that veterans whose claims were previously denied
are aware of their rights under this Act, H.R. 299, as amended,
requires the Secretary to conduct outreach to inform BWN
veterans of the ability to submit or resubmit a claim for
benefits related to herbicide agent exposure. The Secretary is
also directed to share that information with the veteran
service organization community to allow these representative
organizations to provide up to date information to their
veteran members. The VSO community includes the service
organizations with the most members and other such stakeholders
as the Secretary considers appropriate to notify of the change
in law. Furthermore, the bill would mandate that VA submit a
report to the Committees on Veterans' Affairs of the House of
Representatives and the Senate on the new claims filed under
the special effective date rules by BWN veterans, on January 1,
2021, and annually thereafter for two years.
In 2000, the Institute of Medicine (IOM) determined there
may be a link between exposure to chemicals used in Vietnam and
spina bifida in offspring.\10\ Thus, Congress provides benefits
to children of some Vietnam era veterans who may have been
harmed by the use of herbicide agents, such as those who served
in Vietnam or along the Korean DMZ.\11\ However, even though VA
recognizes that some veterans who were stationed along the
perimeter of military installations in Thailand (between
January 9, 1962, and May 7, 1975), may have come into contact
with herbicide agents, the Department does not provide benefits
to these veterans' biological children who were born with spina
bifida. Section 4 of H.R. 299, as amended, would extend
benefits to these children if VA determines that the veteran
was exposed to a recognized herbicide agent during service. To
be eligible for benefits, the child suffering from spina bifida
must be the natural child of the exposed veteran and conceived
after the parent's exposure.
---------------------------------------------------------------------------
\10\Institute of Medicine, Veterans and Agent Orange Update 2000
(2001).
\11\P.L. 108-183, 38 U.S.C. 1802, et. seq.
---------------------------------------------------------------------------
Additionally, although Congress authorized benefits for
certain children of veterans who served in or near the Korean
DMZ between September 1, 1967, and August 31, 1971, VA's
regulations limit the presumption of exposure for veterans who
served in or near the Korean DMZ beginning April 1, 1968.\12\
As a result of VA's regulation, a veteran who was stationed
along the Korean DMZ between September 1, 1967, and March 31,
1968, is not automatically eligible for benefits if the veteran
develops a condition linked to toxic chemical exposure.
However, that same veteran's child who was conceived after the
veteran's service in Korea and was born with spina bifida, may
be eligible for benefits based on possible exposure to
herbicide agents. Section 3 of H.R. 299, as amended, would
resolve this inconsistency between the law and VA's regulation
by expanding the presumption to include veterans who served in
or near the Korean DMZ between September 1, 1967, and April 1,
1968.
---------------------------------------------------------------------------
\12\38 C.F.R. Sec. 3.307.
---------------------------------------------------------------------------
Like Section 2, Section 3 does not limit a Korean DMZ
veteran or family member from seeking compensation for diseases
recognized by the Secretary as related to herbicide exposure in
the future. If, at a date following enactment of H.R. 299, as
amended, the Secretary determines via regulation that
additional diseases are related to herbicide exposure, any
veteran or beneficiary identified by Section 3 may seek
benefits for that disease based on the veteran's qualifying
service in the Korean DMZ.
Sections 2, 3 and 4 of the bill also include provisions
allowing VA to issue guidance regarding the implementation of
BWN, Korean DMZ and Thailand benefits as described in H.R. 299,
as amended. This allows the Secretary to begin awarding
benefits permitted under these sections prior to the completion
of the rulemaking process. The ability to award immediate
benefits during the interim period between passage of H.R. 299,
as amended, and promulgation of relevant regulations reflects
the urgency of need for veterans and family members afflicted
by herbicide related diseases. However, the guidance provisions
are not intended to replace the need for formal regulations.
Thus, the Secretary is also required to provide quarterly
updates on the status of the regulations.
H.R. 299, as amended, would also address concerns of
veterans who were stationed at U.S. bases in Thailand between
January 9, 1962, and May 7, 1975, but are excluded from the
current presumption. Section 4 of H.R. 299, as amended, would
require the VA Secretary, in consultation with the Secretary of
Defense, to submit a report within 180 days to the Committees
on Veterans' Affairs of the House of Representatives and the
Senate identifying the U.S. military installations located in
Thailand where an herbicide agent was actively used and
identify the period of such use.
Moreover, H.R. 299, as amended, would require the Secretary
to submit to the Committees on Veterans' Affairs of the House
of Representatives and the Senate an update on the findings of
VA's Follow-up Study of a National Cohort of Gulf War and Gulf
Era Veterans. This study examines the health status of veterans
who served in the Gulf War in 1990 and 1991 and the health of
veterans who served in other areas during the same period.
VA's Home Loan Program
First authorized by the Servicemember's Readjustment Act of
1944, the VA Home Loan Guaranty program helps hundreds of
thousands of servicemembers and veterans purchase their part of
the American dream each year. In FY 2018, the VA Loan Guaranty
Service guaranteed 610,513 loans at a cost of over $166
billion.\13\ Section 3703 of title 38, U.S.C., sets the limit
for the purchase price of a home loan that VA can guarantee.
VA's maximum loan guaranty amount is calculated as a percentage
of the Freddie Mac conforming loan limitation determined by the
Federal Home Loan Mortgage Corporation Act\14\ which varies by
location and zip code. Since in most cases VA's guaranty must
be at least 25 percent of the loan, this means that VA's
maximum loan guaranty amount is effectively capped at the
Freddie Mac limit. For many veterans who are seeking to
purchase a home in high cost areas, the Freddie Mac limit is
too low for VA's zero-down payment loan program. This either
forces the veteran not to use the VA program, or pay the loan
principal down.\15\
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\13\Fiscal Year 2019 Budget Submission, U.S. Department of Veterans
Affairs, Volume 3, ``Benefits and Burial Programs and Departmental
Administration, page 222.
\14\Section 1454(a)(2) of title 12, U.S.C.
\15\Murray, Patrick, Deputy Director of the National Legislative
Service for the Veterans of Foreign Wars, Written Statement to the
House of Representatives Committee on Veterans' Affairs Subcommittee on
Economic Opportunity Hearing on April 9, 2019 (``The price of real
estate has significantly increased in recent years, but the amount VA
is able to guarantee has not. Veterans in high cost-of-living areas are
now forced to contribute costly upfront down payments to guarantee
their home loans with VA. This barrier prohibits veterans from
achieving their dreams of becoming homeowners.'').
---------------------------------------------------------------------------
To address this issue and make the home loan benefit
available to all veterans and servicemembers that qualify,
Section 6 of this bill would amend section 3703 of title 38,
U.S.C., to eliminate the maximum loan guaranty amount under the
VA home loan program by eliminating the Freddie Mac limit for
VA home loans and would make the maximum guaranty amount 25
percent of the loan amount.\16\ The Committee is confident VA's
current strict underwriting standards and low foreclosure rates
will ensure that veterans still have the required credit and
income to qualify for the loan, and that this change will not
result in a significant increased amount of foreclosures.\17\
---------------------------------------------------------------------------
\16\Kamin, John, Credentialing and Education Policy Associate for
The American Legion, Written Statement to the House of Representatives
Committee on Veterans' Affairs Subcommittee on Economic Opportunity
Hearing on April 9, 2019 (``For example, a veteran purchasing a 1-
million-dollar home would have 25% ($181,631.25) of the maximum
guaranteed amount of $726.525 backed by the government.'')
\17\Id. (``Data suggests more expensive VA home loans have a
smaller default rate.'')
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Section 3729 of title 38, U.S.C., requires certain users of
VA's loan guaranty benefit to pay a funding fee. The amount of
the funding fee varies based on an individual's active duty or
reserve status, the amount of down payment brought forward, and
the date of loan origination. The rates of funding fees
(expressed as a percentage of the loan) have remained the same
since 2004. The costs of the funding fee can be rolled into the
life of the loan and can be waived if the servicemember has a
service-connected disability. These fees reduce the subsidy
cost associated with VA's guaranty of mortgage loans and have
typically been viewed as a reasonable cost to the benefit
gained by having VA guarantee a mortgage loan. This section
would adjust the home loan fee for mortgages closed on or after
January 1, 2020, through September 30, 2029, when the rates
would be lowered to current rates. The proposed rates are
listed below:
----------------------------------------------------------------------------------------------------------------
Proposed Rates
Down payment and Use Current Rates From 1/1/2020, Change in
through 1/1/2022 Percent
----------------------------------------------------------------------------------------------------------------
No Money Down, 1st Use....................................... 2.15% 2.30% 0.15%
5% or more, 1st Use.......................................... 1.50% 1.65% 0.15%
10% or more, 1st Use......................................... 1.25% 1.40% 0.15%
Subsequent Use............................................... 3.30% 3.60% 0.30%
----------------------------------------------------------------------------------------------------------------
For loans that close on or after January 1, 2022, the
current loan funding fee rates would be in effect until
September 30, 2029. The Committee believes that these modest
increases would have minimal impact on the home loan market and
would not seriously limit a veteran or a servicemember's
ability to use their home loan benefit.
The section would also eliminate the current .25 percent
premium that members of the National Guard and Reserve pay on
top of current funding fees rates. The Committee believes this
change would provide equity between the benefit provided to
these servicemembers with veterans and active duty
servicemembers. This section would also make servicemembers on
active duty who have been awarded a Purple Heart exempt from
the funding fee. These servicemembers are currently required to
pay the funding fee, which the Committee believes
disincentivizes them from using their home loan benefit. In
most cases, the servicemember could separate from active duty
and then file for disability compensation (presumably for the
injury that led to the Purple Heart award). Because a service
connected veteran is exempt from the funding fee, the
discharged servicemember would receive the waiver. However, an
active duty servicemember who has not yet been discharged, but
has already received the Purple Heart, would not currently
receive the waiver. H.R. 299, as amended, changes that. The
Committee believes this change is important to help these
servicemembers use their earned home loan benefit.
Section 3731 of title 38, U.S.C., authorizes requirements
and processes for the use of appraisals for VA-guaranteed home
loans. Section 7 of H.R. 299, as amended, would amend section
3731(b) of title 38, U.S.C., to clarify that a VA may permit a
VA-approved appraiser to make an appraisal based on information
collected from a third party or what is known as a desktop
appraisal. This change would increase efficiency and timeliness
in VA home loan appraisals, which would make it easier for
veterans to use their home loan benefit.
Hearings
On May 1, 2019, the Subcommittee on Disability Assistance
and Memorial Affairs conducted a legislative hearing on various
bills introduced during the 116th Congress, including a draft
amendment in the nature of a substitute to H.R. 299.
The following witnesses testified:
The Honorable Mark Takano, U.S. House of
Representatives, 41st Congressional District of
California; The Honorable David P. Roe, U.S. House of
Representatives, 1st Congressional District of
Tennessee; The Honorable Conor Lamb, U.S. House of
Representatives, 17th Congressional District of
Pennsylvania; The Honorable Greg Steube, U.S. House of
Representatives, 17th District of Florida; The
Honorable Julia Brownley, U.S. House of
Representatives, 26th Congressional District of
Florida; Mr. Matthew Sullivan, Deputy Under Secretary
for Finance and Planning, National Cemetery
Administration; accompanied by Mr. Kevin Friel, Deputy
Director for Pension and Fiduciary, Veterans Benefits
Administration; Dr. Patricia Hastings, Deputy Chief
Consultant, Post Deployment Health Service, Veterans
Health; Mr. Derrick Curtis, Director, Software Testing
& 508, Enterprise Portfolio Management Division, Office
of Information Technology; Ms. Melanie Brunson,
Government Relations Officer, Blinded Veterans
Association; Mr. Karl R. Horst, Major General, U.S.
Army (Ret), President and Chief Executive Officer,
Congressional Medal of Honor Foundation; Ms. Allison
Adelle Hedge Coke, Distinguished Professor of Creative
Writing, University of California, Riverside; Mr.
Carlos Fuentes, Director, National Legislative Service,
Veterans of Foreign Wars; Mr. Rick Weidman, Executive
Director, Policy and Government Affairs, Vietnam
Veterans of America; Mr. Chanin Nuntavong, Veterans
Affairs and Rehabilitation Division Director, The
American Legion; Mr. Shane L. Liermann, Assistant
National Legislative Director, Disabled American
Veterans; Dr. David A. Butler, Director, Office of
Military and Veterans Health, Health and Medicine
Division, The National Academies of Sciences,
Engineering, and Medicine; Accompanied by Dr. Ourania
Kosti, Senior Program Officer, Principal Investigator,
Radiation Effects Research Foundation. The National
Academies of Sciences, Engineering, and Medicine.
Statements for the record were submitted by:
The Honorable Doug LaMalfa, U.S. House of
Representatives, First Congressional District of
California; Mr. John Wells, Executive Director, The
Military-Veterans Advocacy; Mr. Keith Kiefer, National
Commander, National Association of Atomic Veterans; Mr.
Robert Celestial, SGT, U.S. Army Retired (D.A.V.),
Veteran who participated in Enewetak Cleanup; Mr. Ken
Brownell, Veteran who participated in Enewetak Cleanup;
The American Federation of Government Employees, AFL-
CIO.
On April 9, 2019, the Subcommittee on Economic Opportunity
held a legislative hearing on several bills pending before the
Subcommittee including a draft bill which incorporated portions
of section six and seven of H.R. 299, as amended.
The following witnesses testified:
Ms. Margarita Devlin, Principal Deputy Under
Secretary for Benefits, Veterans Benefits
Administration of the U.S. Department of Veterans
Affairs; Ms. Ashlynne Haycock, Senior Coordinator of
Education Support at the Tragedy Assistance Program for
Survivors; Mr. Patrick Murray, Deputy Director of
National Legislative Service at The Veterans of Foreign
Wars; Mr. John Kamin, Credentialing and Education
Policy Association of National Veterans Employment and
Education Division at The American Legion; Ms. Rebecca
Burgess, Program Manager of Citizen Project at American
Enterprise Institute.
Statements for the record were submitted by:
Mr. Jeremy M. Villanueva, Associate National
Legislative Director at Disabled American Veterans;
American Federation of Government Employees, AFL-CIO.
Subcommittee Consideration
H.R. 299 was not considered before the Subcommittee.
Committee Consideration
On May 8, 2019, the Full Committee met in an open markup
session, a quorum being present, and ordered H.R. 299, as
amended, favorably reported to the House of Representatives by
voice vote. During consideration of the bill, the following
amendments were considered and agreed to by voice vote:
An amendment in the nature of a substitute offered by
Representative Mark Takano of California, the Chairman
of the full committee, that would allow VA to issue
guidance regarding the implementation of benefits for
Korean DMZ veterans and certain children of Thailand
veterans, and make adjustments to home loan fees.
An amendment to the amendment in the nature of a
substitute offered by Representative David P. Roe of
Tennessee, the Ranking Member of the full committee,
that would make improvements to VA's Home Loan Guaranty
program to ensure that veterans can use their home loan
benefit in high-cost areas and clarify the rules for
active duty servicemembers who receive a Purple Heart
award are exempt from home loan fees.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Votes
In compliance with clause 3(b) of rule XIII of the Rules of
the House of Representatives, there were no recorded votes
taken on amendments or in connection with ordering H.R. 299, as
amended, reported to the House. A motion by Ranking Member
David P. Roe of Tennessee to report H.R. 299, as amended,
favorably to the House of Representatives was adopted by voice
vote.
Committee Oversight Findings
In compliance with clause 3(c)(1) of rule XIII and clause
(2)(b)(1) of rule X of the Rules of the House of
Representatives, the Committee's oversight findings and
recommendations are reflected in the descriptive portions of
this report.
New Budget Authority and CBO Cost Estimate
Committee Cost Estimate
With respect to the requirements of clause 3(c)(2) of rule
XIII of the Rules of the House of Representatives and section
308(a) of the Congressional Budget Act of 1974 and with respect
to requirements of clause (3)(c)(3) of rule XIII of the Rules
of the House of Representatives and section 402 of the
Congressional Budget Act of 1974, the Committee has requested
but not received a cost estimate for this bill from the
Director of Congressional Budget Office. The Committee has
requested but not received from the Director of the
Congressional Budget Office a statement as to whether this bill
contains any new budget authority, spending authority, credit
authority, or an increase or decrease in revenues or tax
expenditures.
Statement of General Performance Goals and Objectives
In accordance with clause 3(c)(4) of rule XIII of the Rules
of the House of Representatives, the Committee's performance
goals and objectives are to establish a presumption of service
connection for diseases associated with exposure to certain
herbicide agents to Blue Water Navy veterans who served
offshore of the Republic of Vietnam and to some veterans who
served in or near the Korean DMZ between September 1, 1967, and
August 31, 1971; to expand eligibility for benefits to certain
children of Vietnam era veterans who served in Thailand; to
submit reports to the Committees on Veterans' Affairs of the
House of Representatives and the Senate regarding claims for
compensation under this act, the use of herbicide agents in
Thailand between January 9, 1962, and May 7, 1975, and Gulf War
Illness; and, to improve veterans' and servicemembers' access
to their home loan benefits.
New Budget Authority, Entitlement Authority,
and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Earmarks and Tax and Tariff Benefits
H.R. 299, as amended, does not contain any Congressional
earmarks, limited tax benefits, or limited tariff benefits as
defined in clause 9 of rule XXI of the Rules of the House of
Representatives.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates regarding H.R. 299, as amended, prepared by the
Director of the Congressional Budget Office pursuant to section
423 of the Unfunded Mandates Reform Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act would be created by H.R.
299, as amended.
Constitutional Authority Statement
Pursuant to Article I, section 8 of the United States
Constitution, H.R. 299, as amended, is authorized by Congress'
power to ``provide for the common Defense and general Welfare
of the United States.''
Applicability to Legislative Branch
The Committee finds that H.R. 299, as amended, does not
relate to the terms and conditions of employment or access to
public services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Statement on Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee finds that no provision
of H.R. 299, as amended, establishes or reauthorizes a program
of the Federal Government known to be duplicative of another
Federal program, a program that was included in any report from
the Government Accountability Office to Congress pursuant to
section 21 of Public Law 111-139, or a program related to a
program identified in the most recent Catalog of Federal
Domestic Assistance.
Section-by-Section Analysis of the Legislation
Sec. 1. Short title
Section 1 states H.R. 299, as amended, may be cited as the
``Blue Water Navy Vietnam Veterans Act of 2019.''
Sec. 2. Clarification of presumptions of exposure for veterans who
served in vicinity of Republic of Vietnam
Section 2 would:
(a) Extend the presumption of exposure to herbicides for
purposes of entitlement to service connection for certain
diseases linked to exposure to herbicides to BWN veterans who
served offshore of the Republic of Vietnam between January 9,
1962, and May 7, 1975. Veterans who filed a claim for VA
benefits for diseases and conditions VA recognizes as
associated with exposure to herbicides for benefits under this
Act between September 25, 1985, and January 1, 2020, but were
denied benefits, may file a new claim. The effective date for
the claim would be the date the veteran filed the first claim.
This section would also define the term ``herbicide agent.''
(b) Make a clerical amendment.
(c) Allows the Secretary to issue guidance to implement
this section prior to prescribing new regulations, subject to a
reporting requirement regarding the status of those
regulations.
(d) Require the Secretary to conduct outreach to veterans
who served offshore of the Republic of Vietnam during the
period beginning on January 9, 1962, and ending on May 7, 1975,
and who filed a claim for benefits between September 25, 1985,
and January 1, 2020, of the ability to submit a new claim.
(e) Require VA to submit reports to the Committees on
Veterans' Affairs of the House of Representatives and the
Senate on claims for disability compensation under this
section.
(f) Amend section 1710(e)(4) to establish eligibility for
hospital care, medical services, and nursing home care to
certain veterans who served offshore of the Republic of
Vietnam.
(g) Establish the effective date of this section as January
1, 2020.
Sec. 3. Presumption of herbicide exposure for certain veterans who
served in Korea
Section 3 would:
(a) Extend the presumption of herbicide exposure for
purposes of entitlement to service connection for certain
diseases to veterans who served in or near the Korean DMZ
between September 1, 1967, and August 31, 1971. This section
would also define the terms ``diseases'' and ``herbicide
agent''
(b) Make a clerical amendment.
(c) Allows the Secretary to issue guidance to implement
this section prior to prescribing new regulations, subject to a
reporting requirement regarding the status of those
regulations.
(d) Establish the effective date of this section as January
1, 2020.
Sec. 4. Benefits for children of certain Thailand service veterans born
with spina bifida
Section 4 would:
(a) Extend eligibility for health care, vocational training
and rehabilitation, and monetary allowance to a child who was
born with spina bifida, if at least one biological parent of
such child was a veteran who served in Thailand between January
9, 1962, and May 7, 1975, and the Secretary determined that at
least one of the parents may have been exposed to an herbicide
agent during such service in Thailand.
(b) Make conforming amendments.
(c) Make clerical amendments.
(d) Allows the Secretary to issue guidance to implement
this section prior to prescribing new regulations, subject to a
reporting requirement regarding the status of those
regulations.
(e) Require, not later than 180 days after the date of
enactment of this Act, VA, in consultation with DOD, to submit
a report to the Committees on Veterans' Affairs of the House of
Representatives and the Senate identifying the military
installations located in Thailand between January 9, 1962, and
May 7, 1975, at which an herbicide agent was actively used and
the period of such use.
(f) Establish the effective date of this section as January
1, 2020.
Sec. 5. Report on certain Gulf War illness study
Section 5 would require, not later than 180 days after the
date of enactment of this Act, VA to submit to the Committees
on Veterans' Affairs of the House of Representatives and the
Senate a report on the Follow-up Study of a National Cohort of
Gulf War and Gulf Era Veterans under VA's epidemiology program.
Sec. 6. Loans guaranteed under home loan program of Department of
Veterans Affairs
Section 6 would:
(a) Amend section 3703(a) of title 38, U.S.C., to eliminate
the limitation of use of the VA home loan program to the
Freddie Mac Conforming loan limit as set forth by section
1454(a)(2) of title 12, U.S.C.
(b) Amend section 3729(b)(2) of title 38, U.S.C., to
provide temporary increases to home loan funding rates through
January 1, 2022. This section would also eliminate the
additional .25 percent funding fee in place for members of the
National Guard and Reserve.
(c) Provide waivers of home loan fees for active duty
servicemembers who were awarded the Purple Heart.
(d) Establish the effective date of this section as January
1, 2020.
(e) Authorize, notwithstanding section 501 of title 38,
U.S.C., VA to issue guidance for implementing this section in
advance of regulations.
Sec. 7. Information gathering for Department of Veterans Affairs home
loan appraisals
Section 7 would:
(a) Amend section 3731(b) of title 38, U.S.C., to authorize
VA to permit a VA approved appraiser to complete an appraisal
for a VA-backed loan based solely on information gathered by a
third party.
(b) States that the amendments made by this section would
go into effect on January 1, 2020.
(c) Authorize, notwithstanding section 501 of title 38,
U.S.C., VA to issue guidance for implementing this section in
advance of regulations.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, and existing law in which no
change is proposed is shown in roman):
TITLE 38, UNITED STATES CODE
* * * * * * *
PART II--GENERAL BENEFITS
* * * * * * *
CHAPTER 11--COMPENSATION FOR SERVICE-CONNECTED DISABILITY OR DEATH
* * * * * * *
SUBCHAPTER II--WARTIME DISABILITY COMPENSATION
* * * * * * *
Sec.
1110. Basic entitlement.
* * * * * * *
1116A. Presumptions of service connection for veterans who served
offshore of the Republic of Vietnam.
1116B. Presumption of herbicide exposure for certain veterans who served
in Korea.
* * * * * * *
Sec. 1116A. Presumptions of service connection for veterans who served
offshore of the Republic of Vietnam
(a) Service Connection.--For the purposes of section 1110 of
this title, and subject to section 1113 of this title, a
disease covered by section 1116 of this title becoming manifest
as specified in that section in a veteran who, during active
military, naval, or air service, served offshore of the
Republic of Vietnam during the period beginning on January 9,
1962, and ending on May 7, 1975, shall be considered to have
been incurred in or aggravated by such service, notwithstanding
that there is no record of evidence of such disease during the
period of such service.
(b) Exposure.--A veteran who, during active military, naval,
or air service, served offshore of the Republic of Vietnam
during the period beginning on January 9, 1962, and ending on
May 7, 1975, shall be presumed to have been exposed during such
service to an herbicide agent unless there is affirmative
evidence to establish that the veteran was not exposed to any
such agent during that service.
(c) Effective Date of Award.--(1) Except as provided by
paragraph (2), the effective date of an award under this
section shall be determined in accordance with section 5110 of
this title.
(2)(A) Notwithstanding subsection (g) of section 5110 of this
title, the Secretary shall determine the effective date of an
award based on a claim under this section for an individual
described in subparagraph (B) by treating the date on which the
individual filed the prior claim specified in clause (i) of
such subparagraph as the date on which the individual filed the
claim so awarded under this section.
(B) An individual described in this subparagraph is a
veteran, or a survivor of a veteran, who meets the following
criteria:
(i) The veteran or survivor submitted a claim for
disability compensation on or after September 25, 1985,
and before January 1, 2020, for a disease covered by
this section, and the claim was denied by reason of the
claim not establishing that the disease was incurred or
aggravated by the service of the veteran.
(ii) The veteran or survivor submits a claim for
disability compensation on or after January 1, 2020,
for the same condition covered by the prior claim under
clause (i), and the claim is approved pursuant to this
section.
(d) Determination of Offshore.--Notwithstanding any other
provision of law, for purposes of this section, the Secretary
shall treat a location as being offshore of Vietnam if the
location is not more than 12 nautical miles seaward of a line
commencing on the southwestern demarcation line of the waters
of Vietnam and Cambodia and intersecting the following points:
----------------------------------------------------------------------------------------------------------------
Latitude
Points Geographic Names North Longitude East
----------------------------------------------------------------------------------------------------------------
At Hon Nhan Island, Tho Chu Archipelago Kien Giang Province 915.0 10327.0
At Hon Da Island southeast of Hon Khoai Island Minh Hai Province 822.8 10452.4
At Tai Lon Islet, Con Dao Islet in Con Dao-Vung Toa Special Sector 837.8 10637.5
At Bong Lai Islet, Con Dao Islet 838.9 10640.3
At Bay Canh Islet, Con Dao Islet 839.7 10642.1
At Hon Hai Islet (Phu Qui group of islands) Thuan Hai Province 958.0 1095.0
At Hon Doi Islet, Thuan Hai Province 1239.0 10928.0
At Dai Lanh point, Phu Khanh Province 1253.8 10927.2
At Ong Can Islet, Phu Khanh Province 1354.0 10921.0
At Ly Son Islet, Nghia Binh Province 1523.1 109 9.0
At Con Co Island, Binh Tri Thien Province 1710.0 10720.6
----------------------------------------------------------------------------------------------------------------
(e) Herbicide Agent.--In this section, the term ``herbicide
agent'' has the meaning given that term in section 1116(a)(3)
of this title.
Sec. 1116B. Presumption of herbicide exposure for certain veterans who
served in Korea
(a) Presumption of Service-Connection.--(1) For the purposes
of section 1110 of this title, and subject to section 1113 of
this title, a disease specified in subsection (b) that becomes
manifest as specified in that subsection in a veteran described
in paragraph (2) shall be considered to have been incurred or
aggravated in the line of duty in the active military, naval,
or air service, notwithstanding that there is no record of
evidence of such disease during the period of such service.
(2) A veteran described in this paragraph is a veteran who,
during active military, naval, or air service, served in or
near the Korean Demilitarized Zone (DMZ), during the period
beginning on September 1, 1967, and ending on August 31, 1971.
(b) Diseases.--A disease specified in this subsection is--
(1) a disease specified in paragraph (2) of
subsection (a) of section 1116 of this title that
becomes manifest as specified in that paragraph; or
(2) any additional disease that--
(A) the Secretary determines in regulations
warrants a presumption of service-connection by
reason of having positive association with
exposure to an herbicide agent; and
(B) becomes manifest within any period
prescribed in such regulations.
(c) Herbicide Agent.--For purposes of this section, the term
``herbicide agent'' has the meaning given such term in section
1821(d) of this title.
* * * * * * *
CHAPTER 17--HOSPITAL, NURSING HOME, DOMICILIARY, AND MEDICAL CARE
* * * * * * *
SUBCHAPTER II--HOSPITAL, NURSING HOME, OR DOMICILIARY CARE AND MEDICAL
TREATMENT
Sec. 1710. Eligibility for hospital, nursing home, and domiciliary care
(a)(1) The Secretary (subject to paragraph (4)) shall furnish
hospital care and medical services which the Secretary
determines to be needed--
(A) to any veteran for a service-connected
disability; and
(B) to any veteran who has a service-connected
disability rated at 50 percent or more.
(2) The Secretary (subject to paragraph (4)) shall furnish
hospital care and medical services, and may furnish nursing
home care, which the Secretary determines to be needed to any
veteran--
(A) who has a compensable service-connected
disability rated less than 50 percent or, with respect
to nursing home care during any period during which the
provisions of section 1710A(a) of this title are in
effect, a compensable service-connected disability
rated less than 70 percent;
(B) whose discharge or release from active military,
naval, or air service was for a disability that was
incurred or aggravated in the line of duty;
(C) who is in receipt of, or who, but for a
suspension pursuant to section 1151 of this title (or
both a suspension and the receipt of retired pay),
would be entitled to disability compensation, but only
to the extent that such veteran's continuing
eligibility for such care is provided for in the
judgment or settlement provided for in such section;
(D) who is a former prisoner of war, who was awarded
the medal of honor under section 7271, 8291, or 9271 of
title 10 or section 491 of title 14, or who was awarded
the Purple Heart;
(E) who is a veteran of the Mexican border period or
of World War I;
(F) who was exposed to a toxic substance, radiation,
or other conditions, as provided in subsection (e); or
(G) who is unable to defray the expenses of necessary
care as determined under section 1722(a) of this title.
(3) In the case of a veteran who is not described in
paragraphs (1) and (2), the Secretary may, to the extent
resources and facilities are available and subject to the
provisions of subsections (f) and (g), furnish hospital care,
medical services, and nursing home care which the Secretary
determines to be needed.
(4) The requirement in paragraphs (1) and (2) that the
Secretary furnish hospital care and medical services, the
requirement in section 1710A(a) of this title that the
Secretary provide nursing home care, the requirement in section
1710B of this title that the Secretary provide a program of
extended care services, and the requirement in section 1745 of
this title to provide nursing home care and prescription
medicines to veterans with service-connected disabilities in
State homes shall be effective in any fiscal year only to the
extent and in the amount provided in advance in appropriations
Acts for such purposes.
(5) During any period during which the provisions of section
1710A(a) of this title are not in effect, the Secretary may
furnish nursing home care which the Secretary determines is
needed to any veteran described in paragraph (1), with the
priority for such care on the same basis as if provided under
that paragraph.
(b)(1) The Secretary may furnish to a veteran described in
paragraph (2) of this subsection such domiciliary care as the
Secretary determines is needed for the purpose of the
furnishing of medical services to the veteran.
(2) This subsection applies in the case of the following
veterans:
(A) Any veteran whose annual income (as determined
under section 1503 of this title) does not exceed the
maximum annual rate of pension that would be applicable
to the veteran if the veteran were eligible for pension
under section 1521(d) of this title.
(B) Any veteran who the Secretary determines has no
adequate means of support.
(c) While any veteran is receiving hospital care or nursing
home care in any Department facility, the Secretary may, within
the limits of Department facilities, furnish medical services
to correct or treat any non-service-connected disability of
such veteran, in addition to treatment incident to the
disability for which such veteran is hospitalized, if the
veteran is willing, and the Secretary finds such services to be
reasonably necessary to protect the health of such veteran. The
Secretary may furnish dental services and treatment, and
related dental appliances, under this subsection for a non-
service-connected dental condition or disability of a veteran
only (1) to the extent that the Secretary determines that the
dental facilities of the Department to be used to furnish such
services, treatment, or appliances are not needed to furnish
services, treatment, or appliances for dental conditions or
disabilities described in section 1712(a) of this title, or (2)
if (A) such non-service-connected dental condition or
disability is associated with or aggravating a disability for
which such veteran is receiving hospital care, or (B) a
compelling medical reason or a dental emergency requires
furnishing dental services, treatment, or appliances (excluding
the furnishing of such services, treatment, or appliances of a
routine nature) to such veteran during the period of
hospitalization under this section.
(d) In no case may nursing home care be furnished in a
hospital not under the direct jurisdiction of the Secretary
except as provided in section 1720 of this title.
(e)(1)(A) A Vietnam-era herbicide-exposed veteran is eligible
(subject to paragraph (2)) for hospital care, medical services,
and nursing home care under subsection (a)(2)(F) for any
disability, notwithstanding that there is insufficient medical
evidence to conclude that such disability may be associated
with such exposure.
(B) A radiation-exposed veteran is eligible for hospital
care, medical services, and nursing home care under subsection
(a)(2)(F) for any disease suffered by the veteran that is--
(i) a disease listed in section 1112(c)(2) of this
title; or
(ii) any other disease for which the Secretary, based
on the advice of the Advisory Committee on
Environmental Hazards, determines that there is
credible evidence of a positive association between
occurrence of the disease in humans and exposure to
ionizing radiation.
(C) Subject to paragraph (2) of this subsection, a veteran
who served on active duty between August 2, 1990, and November
11, 1998, in the Southwest Asia theater of operations during
the Persian Gulf War is eligible for hospital care, medical
services, and nursing home care under subsection (a)(2)(F) for
any disability, notwithstanding that there is insufficient
medical evidence to conclude that such disability may be
associated with such service.
(D) Subject to paragraphs (2) and (3), a veteran who served
on active duty in a theater of combat operations (as determined
by the Secretary in consultation with the Secretary of Defense)
during a period of war after the Persian Gulf War, or in combat
against a hostile force during a period of hostilities after
November 11, 1998, is eligible for hospital care, medical
services, and nursing home care under subsection (a)(2)(F) for
any illness, notwithstanding that there is insufficient medical
evidence to conclude that such condition is attributable to
such service.
(E) Subject to paragraph (2), a veteran who participated in a
test conducted by the Department of Defense Deseret Test Center
as part of a program for chemical and biological warfare
testing from 1962 through 1973 (including the program
designated as ``Project Shipboard Hazard and Defense (SHAD)''
and related land-based tests) is eligible for hospital care,
medical services, and nursing home care under subsection
(a)(2)(F) for any illness, notwithstanding that there is
insufficient medical evidence to conclude that such illness is
attributable to such testing.
(F) Subject to paragraph (2), a veteran who served on active
duty in the Armed Forces at Camp Lejeune, North Carolina, for
not fewer than 30 days during the period beginning on August 1,
1953, and ending on December 31, 1987, is eligible for hospital
care and medical services under subsection (a)(2)(F) for any of
the following illnesses or conditions, notwithstanding that
there is insufficient medical evidence to conclude that such
illnesses or conditions are attributable to such service:
(i) Esophageal cancer.
(ii) Lung cancer.
(iii) Breast cancer.
(iv) Bladder cancer.
(v) Kidney cancer.
(vi) Leukemia.
(vii) Multiple myeloma.
(viii) Myelodysplastic syndromes.
(ix) Renal toxicity.
(x) Hepatic steatosis.
(xi) Female infertility.
(xii) Miscarriage.
(xiii) Scleroderma.
(xiv) Neurobehavioral effects.
(xv) Non-Hodgkin's lymphoma.
(2)(A) In the case of a veteran described in paragraph
(1)(A), hospital care, medical services, and nursing home care
may not be provided under subsection (a)(2)(F) with respect
to--
(i) a disability that is found, in accordance with
guidelines issued by the Under Secretary for Health, to
have resulted from a cause other than an exposure
described in paragraph (4)(A)(ii); or
(ii) a disease for which the National Academy of
Sciences, in a report issued in accordance with section
3 of the Agent Orange Act of 1991, has determined that
there is limited or suggestive evidence of the lack of
a positive association between occurrence of the
disease in humans and exposure to a herbicide agent.
(B) In the case of a veteran described in subparagraph (C),
(D), (E), or (F) of paragraph (1), hospital care, medical
services, and nursing home care may not be provided under
subsection (a)(2)(F) with respect to a disability that is
found, in accordance with guidelines issued by the Under
Secretary for Health, to have resulted from a cause other than
the service or testing described in such subparagraph.
(3) In the case of care for a veteran described in paragraph
(1)(D), hospital care, medical services, and nursing home care
may be provided under or by virtue of subsection (a)(2)(F) only
during the following periods:
(A) Except as provided by subparagraph (B), with
respect to a veteran described in paragraph (1)(D) who
is discharged or released from the active military,
naval, or air service after January 27, 2003, the five-
year period beginning on the date of such discharge or
release.
(B) With respect to a veteran described in paragraph
(1)(D) who is discharged or released from the active
military, naval, or air service after January 1, 2009,
and before January 1, 2011, but did not enroll to
receive such hospital care, medical services, or
nursing home care pursuant to such paragraph during the
five-year period described in subparagraph (A), the
one-year period beginning on the date of the enactment
of the Clay Hunt Suicide Prevention for American
Veterans Act.
(C) With respect to a veteran described in paragraph
(1)(D) who is discharged or released from the active
military, naval, or air service on or before January
27, 2003, and did not enroll in the patient enrollment
system under section 1705 of this title on or before
such date, the three-year period beginning on January
27, 2008.
(4) For purposes of this subsection--
(A) The term ``Vietnam-era herbicide-exposed
veteran'' means a veteran (i) who served on active duty
in the Republic of Vietnam (including offshore of such
Republic as described in section 1116A(d) of this
title) during the period beginning on January 9, 1962,
and ending on May 7, 1975, and (ii) who the Secretary
finds may have been exposed during such service to
dioxin or was exposed during such service to a toxic
substance found in a herbicide or defoliant used for
military purposes during such period.
(B) The term ``radiation-exposed veteran'' has the
meaning given that term in section 1112(c)(3) of this
title.
(5) When the Secretary first provides care for veterans using
the authority provided in paragraph (1)(D), the Secretary shall
establish a system for collection and analysis of information
on the general health status and health care utilization
patterns of veterans receiving care under that paragraph. Not
later than 18 months after first providing care under such
authority, the Secretary shall submit to Congress a report on
the experience under that authority. The Secretary shall
include in the report any recommendations of the Secretary for
extension of that authority.
(f)(1) The Secretary may not furnish hospital care or nursing
home care (except if such care constitutes hospice care) under
this section to a veteran who is eligible for such care under
subsection (a)(3) of this section unless the veteran agrees to
pay to the United States the applicable amount determined under
paragraph (2) or (4) of this subsection.
(2) A veteran who is furnished hospital care or nursing home
care under this section and who is required under paragraph (1)
of this subsection to agree to pay an amount to the United
States in order to be furnished such care shall be liable to
the United States for an amount equal to--
(A) the lesser of--
(i) the cost of furnishing such care, as
determined by the Secretary; or
(ii) the amount determined under paragraph
(3) of this subsection; and
(B) before September 30, 2020, an amount equal to $10
for every day the veteran receives hospital care and $5
for every day the veteran receives nursing home care.
(3)(A) In the case of hospital care furnished during any 365-
day period, the amount referred to in paragraph (2)(A)(ii) of
this subsection is--
(i) the amount of the inpatient Medicare deductible,
plus
(ii) one-half of such amount for each 90 days of care
(or fraction thereof) after the first 90 days of such
care during such 365-day period.
(B) In the case of nursing home care furnished during any
365-day period, the amount referred to in paragraph (2)(A)(ii)
of this subsection is the amount of the inpatient Medicare
deductible for each 90 days of such care (or fraction thereof)
during such 365-day period.
(C)(i) Except as provided in clause (ii) of this
subparagraph, in the case of a veteran who is admitted for
nursing home care under this section after being furnished,
during the preceding 365-day period, hospital care for which
the veteran has paid the amount of the inpatient Medicare
deductible under this subsection and who has not been furnished
90 days of hospital care in connection with such payment, the
veteran shall not incur any liability under paragraph (2) of
this subsection with respect to such nursing home care until--
(I) the veteran has been furnished, beginning with
the first day of such hospital care furnished in
connection with such payment, a total of 90 days of
hospital care and nursing home care; or
(II) the end of the 365-day period applicable to the
hospital care for which payment was made,
whichever occurs first.
(ii) In the case of a veteran who is admitted for nursing
home care under this section after being furnished, during any
365-day period, hospital care for which the veteran has paid an
amount under subparagraph (A)(ii) of this paragraph and who has
not been furnished 90 days of hospital care in connection with
such payment, the amount of the liability of the veteran under
paragraph (2) of this subsection with respect to the number of
days of such nursing home care which, when added to the number
of days of such hospital care, is 90 or less, is the difference
between the inpatient Medicare deductible and the amount paid
under such subparagraph until--
(I) the veteran has been furnished, beginning with
the first day of such hospital care furnished in
connection with such payment, a total of 90 days of
hospital care and nursing home care; or
(II) the end of the 365-day period applicable to the
hospital care for which payment was made,
whichever occurs first.
(D) In the case of a veteran who is admitted for hospital
care under this section after having been furnished, during the
preceding 365-day period, nursing home care for which the
veteran has paid the amount of the inpatient Medicare
deductible under this subsection and who has not been furnished
90 days of nursing home care in connection with such payment,
the veteran shall not incur any liability under paragraph (2)
of this subsection with respect to such hospital care until--
(i) the veteran has been furnished, beginning with
the first day of such nursing home care furnished in
connection with such payment, a total of 90 days of
nursing home care and hospital care; or
(ii) the end of the 365-day period applicable to the
nursing home care for which payment was made,
whichever occurs first.
(E) A veteran may not be required to make a payment under
this subsection for hospital care or nursing home care
furnished under this section during any 90-day period in which
the veteran is furnished medical services under paragraph (3)
of subsection (a) to the extent that such payment would cause
the total amount paid by the veteran under this subsection for
hospital care and nursing home care furnished during that
period and under subsection (g) for medical services furnished
during that period to exceed the amount of the inpatient
Medicare deductible in effect on the first day of such period.
(F) A veteran may not be required to make a payment under
this subsection or subsection (g) for any days of care in
excess of 360 days of care during any 365-calendar-day period.
(4) In the case of a veteran covered by this subsection who
is also described by section 1705(a)(7) of this title, the
amount for which the veteran shall be liable to the United
States for hospital care under this subsection shall be an
amount equal to 20 percent of the total amount for which the
veteran would otherwise be liable for such care under
subparagraphs (2)(B) and (3)(A) but for this paragraph.
(5) For the purposes of this subsection, the term ``inpatient
Medicare deductible'' means the amount of the inpatient
hospital deductible in effect under section 1813(b) of the
Social Security Act (42 U.S.C. 1395e(b)) on the first day of
the 365-day period applicable under paragraph (3) of this
subsection.
(g)(1) The Secretary may not furnish medical services (except
if such care constitutes hospice care) under subsection (a) of
this section (including home health services under section 1717
of this title) to a veteran who is eligible for hospital care
under this chapter by reason of subsection (a)(3) of this
section unless the veteran agrees to pay to the United States
in the case of each outpatient visit the applicable amount or
amounts established by the Secretary by regulation.
(2) A veteran who is furnished medical services under
subsection (a) of this section and who is required under
paragraph (1) of this subsection to agree to pay an amount to
the United States in order to be furnished such services shall
be liable to the United States, in the case of each visit in
which such services are furnished to the veteran, for an amount
which the Secretary shall establish by regulation.
(3) This subsection does not apply with respect to the
following:
(A) Home health services under section 1717 of this
title to the extent that such services are for
improvements and structural alterations.
(B) Education on the use of opioid antagonists to
reverse the effects of overdoses of specific
medications or substances.
(h) Nothing in this section requires the Secretary to furnish
care to a veteran to whom another agency of Federal, State, or
local government has a duty under law to provide care in an
institution of such government.
* * * * * * *
CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS AND CERTAIN OTHER
VETERANS
* * * * * * *
[SUBCHAPTER III--CHILDREN OF CERTAIN KOREA SERVICE VETERANS BORN WITH
SPINA BIFIDA]
SUBCHAPTER III--CHILDREN OF CERTAIN KOREA AND THAILAND SERVICE VETERANS
BORN WITH SPINA BIFIDA
1821. Benefits for children of certain Korea service veterans born with
spina bifida.
1822. Benefits for children of certain Thailand service veterans born
with spina bifida.
* * * * * * *
SUBCHAPTER III--CHILDREN OF CERTAIN KOREA AND THAILAND SERVICE VETERANS
BORN WITH SPINA BIFIDA
* * * * * * *
Sec. 1822. Benefits for children of certain Thailand service veterans
born with spina bifida
(a) Benefits Authorized.--The Secretary may provide to any
child of a veteran of covered service in Thailand who is
suffering from spina bifida the health care, vocational
training and rehabilitation, and monetary allowance required to
be paid to a child of a Vietnam veteran who is suffering from
spina bifida under subchapter I of this chapter as if such
child of a veteran of covered service in Thailand were a child
of a Vietnam veteran who is suffering from spina bifida under
such subchapter.
(b) Spina Bifida Conditions Covered.--This section applies
with respect to all forms and manifestations of spina bifida,
except spina bifida occulta.
(c) Veteran of Covered Service in Thailand.--For purposes of
this section, a veteran of covered service in Thailand is any
individual, without regard to the characterization of that
individual's service, who--
(1) served in the active military, naval, or air
service in Thailand, as determined by the Secretary in
consultation with the Secretary of Defense, during the
period beginning on January 9, 1962, and ending on May
7, 1975; and
(2) is determined by the Secretary, in consultation
with the Secretary of Defense, to have been exposed to
a herbicide agent during such service in Thailand.
(d) Herbicide Agent.--For purposes of this section, the term
``herbicide agent'' means a chemical in a herbicide used in
support of United States and allied military operations in
Thailand, as determined by the Secretary in consultation with
the Secretary of Defense, during the period beginning on
January 9, 1962, and ending on May 7, 1975.
SUBCHAPTER IV--GENERAL PROVISIONS
Sec. 1831. Definitions
In this chapter:
(1) The term ``child'' means the following:
(A) For purposes of subchapters I and II of
this chapter, an individual, regardless of age
or marital status, who--
(i) is the natural child of a Vietnam
veteran; and
(ii) was conceived after the date on
which that veteran first entered the
Republic of Vietnam during the Vietnam
era.
(B) For purposes of [subchapter III of this
chapter] section 1821 of this title, an
individual, regardless of age or marital
status, who--
(i) is the natural child of a veteran
of covered service in Korea (as
determined for purposes of [section
1821 of this title] that section); and
(ii) was conceived after the date on
which that veteran first entered
service described in subsection (c) of
that section.
(C) For purposes of section 1822 of this
title, an individual, regardless of age or
marital status, who--
(i) is the natural child of a veteran
of covered service in Thailand (as
determined for purposes of that
section); and
(ii) was conceived after the date on
which that veteran first entered
service described in subsection (c) of
that section.
(2) The term ``Vietnam veteran'' means an individual
who performed active military, naval, or air service in
the Republic of Vietnam during the Vietnam era, without
regard to the characterization of that individual's
service.
(3) The term ``Vietnam era'' with respect to--
(A) subchapter I of this chapter, means the
period beginning on January 9, 1962, and ending
on May 7, 1975; and
(B) subchapter II of this chapter, means the
period beginning on February 28, 1961, and
ending on May 7, 1975.
* * * * * * *
PART III--READJUSTMENT AND RELATED BENEFITS
* * * * * * *
CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
* * * * * * *
SUBCHAPTER I--GENERAL
* * * * * * *
Sec. 3703. Basic provisions relating to loan guaranty and insurance
(a)(1)(A) Any loan to a veteran eligible for benefits under
this chapter, if made for any of the purposes specified in
section 3710 of this title and in compliance with the
provisions of this chapter, is automatically guaranteed by the
United States in an amount not to exceed the lesser of--
(i)(I) in the case of any loan of not more than
$45,000, 50 percent of the loan;
(II) in the case of any loan of more than $45,000,
but not more than $56,250, $22,500;
(III) except as provided in subclause (IV) of this
clause, in the case of any loan of more than $56,250,
the lesser of $36,000 or 40 percent of the loan; or
(IV) in the case of any loan of more than $144,000
for a purpose specified in clause (1), (2), (3), (5),
(6), or (8) of section 3710(a) of this title, [the
lesser of the maximum guaranty amount (as defined in
subparagraph (C)) or] 25 percent of the loan; or
(ii) the maximum amount of guaranty entitlement
available to the veteran as specified in [subparagraph
(B) of this paragraph] subparagraph (B) or (C).
(B) [The maximum] With respect to loans described in
subclauses (I), (II), or (III) of subparagraph (A)(i), the
maximum amount of guaranty entitlement available to a veteran
for purposes specified in section 3710 of this title shall be
$36,000, [or in the case of a loan described in subparagraph
(A)(i)(IV) of this paragraph, the maximum guaranty amount (as
defined in subparagraph (C)),] reduced by the amount of
entitlement previously used by the veteran under this chapter
and not restored as a result of the exclusion in section
3702(b) of this title.
[(C) In this paragraph, the term ``maximum guaranty amount''
means the dollar amount that is equal to 25 percent of the
Freddie Mac conforming loan limit limitation determined under
section 305(a)(2) of the Federal Home Loan Mortgage Corporation
Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as
adjusted for the year involved.]
(C)(i) With respect to loans described in subclause (IV) of
subparagraph (A)(i) made to a veteran not covered by clause
(ii), the maximum amount of guaranty entitlement available to
the veteran shall be 25 percent of the loan.
(ii) With respect to loans described in subclause (IV) of
subparagraph (A)(i) made to a covered veteran, the maximum
amount of guaranty entitlement available to the veteran shall
be 25 percent of the Freddie Mac conforming loan limit, reduced
by the amount of entitlement previously used by the veteran
under this chapter and not restored as a result of the
exclusion in section 3702(b) of this title.
(iii) In this subparagraph:
(I) The term ``covered veteran'' means a veteran who
has previously used entitlement under this chapter and
for whom the full amount of entitlement so used has not
been restored as a result of the exclusion in section
3702(b) of this title.
(II) The term ``Freddie Mac conforming loan limit''
means the limit determined under section 305(a)(2) of
the Federal Home Loan Mortgage Corporation Act (12
U.S.C. 1454(a)(2)) for a single-family residence, as
adjusted for the year involved.
(2)(A) Any housing loan which might be guaranteed under the
provisions of this chapter, when made or purchased by any
financial institution subject to examination and supervision by
any agency of the United States or of any State may, in lieu of
such guaranty, be insured by the Secretary under an agreement
whereby the Secretary will reimburse any such institution for
losses incurred on such loan up to 15 per centum of the
aggregate of loans so made or purchased by it.
(B) Loans insured under this section shall be made on such
other terms, conditions, and restrictions as the Secretary may
prescribe within the limitations set forth in this chapter.
(b) The liability of the United States under any guaranty,
within the limitations of this chapter, shall decrease or
increase pro rata with any decrease or increase of the amount
of the unpaid portion of the obligation.
(c)(1) Loans guaranteed or insured under this chapter shall
be payable upon such terms and conditions as may be agreed upon
by the parties thereto, subject to the provisions of this
chapter and regulations of the Secretary issued pursuant to
this chapter, and shall bear interest not in excess of such
rate as the Secretary may from time to time find the loan
market demands, except that in establishing the rate of
interest that shall be applicable to such loans, the Secretary
shall consult with the Secretary of Housing and Urban
Development regarding the rate of interest applicable to home
loans insured under section 203(b) of the National Housing Act
(12 U.S.C. 1709(b)). In establishing rates of interest under
this paragraph for one or more of the purposes described in
clauses (4) and (7) of section 3710(a) of this title, the
Secretary may establish a rate or rates higher than the rate
specified for other purposes under such section, but any such
rate may not exceed such rate as the Secretary may from time to
time find the loan market demands for loans for such purposes.
(2) The provisions of the Servicemen's Readjustment Act of
1944 which were in effect before April 1, 1958, with respect to
the interest chargeable on loans made or guaranteed under such
Act shall, notwithstanding the provisions of paragraph (1) of
this subsection, continue to be applicable--
(A) to any loan made or guaranteed before April 1,
1958; and
(B) to any loan with respect to which a commitment to
guarantee was entered into by the Secretary before
April 1, 1958.
(3) This section shall not be construed to prohibit a veteran
from paying to a lender any reasonable discount required by
such lender, when the proceeds from the loan are to be used--
(A) to refinance indebtedness pursuant to clause (5),
(8), or (9)(B)(i) of section 3710(a) of this title or
section 3712(a)(1)(F) of this title;
(B) to repair, alter, or improve a farm residence or
other dwelling pursuant to clauses (4) and (7) of
section 3710(a) of this title;
(C) to construct a dwelling or farm residence on land
already owned or to be acquired by the veteran except
where the land is directly or indirectly acquired from
a builder or developer who has contracted to construct
such dwelling for the veteran;
(D) to purchase a dwelling from a class of sellers
which the Secretary determines are legally precluded
under all circumstances from paying such a discount if
the best interest of the veteran would be so served; or
(E) to refinance indebtedness and purchase a
manufactured-home lot pursuant to section
3710(a)(9)(B)(ii) or 3712(a)(1)(G) of this title, but
only with respect to that portion of the loan used to
refinance such indebtedness.
(4)(A) In guaranteeing or insuring loans under this chapter,
the Secretary may elect whether to require that such loans bear
interest at a rate that is--
(i) agreed upon by the veteran and the mortgagee; or
(ii) established under paragraph (1).
The Secretary may, from time to time, change the election under
this subparagraph.
(B) Any veteran, under a loan described in subparagraph
(A)(i), may pay reasonable discount points in connection with
the loan. Except in the case of a loan for the purpose
specified in section 3710(a)(8), 3710(b)(7), or 3712(a)(1)(F)
of this title, discount points may not be financed as part of
the principal amount of a loan guaranteed or insured under this
chapter.
(C) Not later than 10 days after an election under
subparagraph (A), the Secretary shall transmit to the
Committees on Veterans' Affairs of the Senate and House of
Representatives a notification of the election, together with
an explanation of the reasons therefor.
(d)(1) The maturity of any housing loan at the time of
origination shall not be more than thirty years and thirty-two
days.
(2)(A) Any loan for a term of more than five years shall be
amortized in accordance with established procedure.
(B) The Secretary may guarantee loans with provisions for
various rates of amortization corresponding to anticipated
variations in family income. With respect to any loan
guaranteed under this subparagraph--
(i) the initial principal amount of the loan may not
exceed the reasonable value of the property as of the
time the loan is made; and
(ii) the principal amount of the loan thereafter
(including the amount of all interest to be deferred
and added to principal) may not at any time be
scheduled to exceed the projected value of the
property.
(C) For the purposes of subparagraph (B) of this paragraph,
the projected value of the property shall be calculated by the
Secretary by increasing the reasonable value of the property as
of the time the loan is made at a rate not in excess of 2.5
percent per year, but in no event may the projected value of
the property for the purposes of such subparagraph exceed 115
percent of such reasonable value. A loan made for a purpose
other than the acquisition of a single-family dwelling unit may
not be guaranteed under such subparagraph.
(3)(A) Any real estate housing loan (other than for repairs,
alterations, or improvements) shall be secured by a first lien
on the realty. In determining whether a loan is so secured, the
Secretary may either disregard or allow for subordination to a
superior lien created by a duly recorded covenant running with
the realty in favor of either of the following:
(i) A public entity that has provided or will provide
assistance in response to a major disaster as
determined by the President under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121 et seq.).
(ii) A private entity to secure an obligation to such
entity for the homeowner's share of the costs of the
management, operation, or maintenance of property,
services, or programs within and for the benefit of the
development or community in which the veteran's realty
is located, if the Secretary determines that the
interests of the veteran borrower and of the Government
will not be prejudiced by the operation of such
covenant.
(B) With respect to any superior lien described in
subparagraph (A) created after June 6, 1969, the Secretary's
determination under clause (ii) of such subparagraph shall have
been made prior to the recordation of the covenant.
(e)(1) Except as provided in paragraph (2) of this
subsection, an individual who pays a fee under section 3729 of
this title, or who is exempted under section 3729(c) of this
title from paying such fee, with respect to a housing loan
guaranteed or insured under this chapter that is closed after
December 31, 1989, shall have no liability to the Secretary
with respect to the loan for any loss resulting from any
default of such individual except in the case of fraud,
misrepresentation, or bad faith by such individual in obtaining
the loan or in connection with the loan default.
(2) The exemption from liability provided by paragraph (1) of
this subsection shall not apply to--
(A) an individual from whom a fee is collected (or
who is exempted from such fee) under section
3729(b)(2)(I) of this title; or
(B) a loan made for any purpose specified in section
3712 of this title.
(f) The application for or obtaining of a loan made, insured,
or guaranteed under this chapter shall not be subject to
reporting requirements applicable to requests for, or receipts
of, Federal contracts, grants, loans, loan guarantees, loan
insurance, or cooperative agreements except to the extent that
such requirements are provided for in, or by the Secretary
pursuant to, this title.
* * * * * * *
SUBCHAPTER II--LOANS
Sec. 3710. Purchase or construction of homes
(a) Except as provided in section 3704(c)(2) of this title,
any loan to a veteran, if made pursuant to the provisions of
this chapter, is automatically guaranteed if such loan is for
one or more of the following purposes:
(1) To purchase or construct a dwelling to be owned
and occupied by the veteran as a home.
(2) To purchase a farm on which there is a farm
residence to be owned and occupied by the veteran as
the veteran's home.
(3) To construct on land owned by the veteran a farm
residence to be occupied by the veteran as the
veteran's home.
(4) To repair, alter, or improve a farm residence or
other dwelling owned by the veteran and occupied by the
veteran as the veteran's home.
(5) To refinance existing mortgage loans or other
liens which are secured of record on a dwelling or farm
residence owned and occupied by the veteran as the
veteran's home.
(6) To purchase a one-family residential unit in a
condominium housing development or project, if such
development or project is approved by the Secretary
under criteria which the Secretary shall prescribe in
regulations.
(7) To improve a dwelling or farm residence owned by
the veteran and occupied by the veteran as the
veteran's home through energy efficiency improvements,
as provided in subsection (d).
(8) To refinance in accordance with subsection (e) of
this section an existing loan guaranteed, insured, or
made under this chapter.
(9)(A)(i) To purchase a manufactured home to be
permanently affixed to a lot that is owned by the
veteran.
(ii) To purchase a manufactured home and a lot to
which the home will be permanently affixed.
(B)(i) To refinance, in accordance with the terms and
conditions applicable under the provisions of
subsection (e) of this section (other than paragraph
(1)(E) of such subsection) to the guaranty of a loan
for the purpose specified in clause (8) of this
subsection, an existing loan guaranteed, insured, or
made under this chapter that is secured by a
manufactured home permanently affixed to a lot that is
owned by the veteran.
(ii) To refinance, in accordance with section
3712(a)(5) of this title, an existing loan that was
made for the purchase of, and that is secured by, a
manufactured home that is permanently affixed to a lot
and to purchase the lot to which the manufactured home
is affixed.
(10) To purchase a dwelling to be owned and occupied
by the veteran as a home and make energy efficiency
improvements, as provided in subsection (d).
(11) To refinance in accordance with subsection (e)
an existing loan guaranteed, insured, or made under
this chapter, and to improve the dwelling securing such
loan through energy efficiency improvements, as
provided in subsection (d).
(12) With respect to a loan guaranteed after the date
of the enactment of this paragraph and before the date
that is five years after that date, to purchase stock
or membership in a cooperative housing corporation for
the purpose of entitling the veteran to occupy for
dwelling purposes a single family residential unit in a
development, project, or structure owned or leased by
such corporation, in accordance with subsection (h).
If there is an indebtedness which is secured by a lien against
land owned by the veteran, the proceeds of a loan guaranteed
under this section or made under section 3711 of this title for
construction of a dwelling or farm residence on such land may
be used also to liquidate such lien, but only if the reasonable
value of the land is equal to or greater than the amount of the
lien.
(b) No loan may be guaranteed under this section or made
under section 3711 of this title unless--
(1) the proceeds of such loan will be used to pay for
the property purchased, constructed, or improved;
(2) the contemplated terms of payment required in any
mortgage to be given in part payment of the purchase
price or the construction cost bear a proper relation
to the veteran's present and anticipated income and
expenses;
(3) the veteran is a satisfactory credit risk, as
determined in accordance with the credit underwriting
standards established pursuant to subsection (g) of
this section;
(4) the nature and condition of the property is such
as to be suitable for dwelling purposes;
(5) except in the case of a loan described in clause
(7) or (8) of this subsection, the loan to be paid by
the veteran for such property or for the cost of
construction, repairs, or alterations, does not exceed
the reasonable value thereof as determined pursuant to
section 3731 of this title;
(6) if the loan is for repair, alteration, or
improvement of property, such repair, alteration, or
improvement substantially protects or improves the
basic livability or utility of such property;
(7) in the case of a loan (other than a loan made for
a purpose specified in subsection (a)(8) of this
section) that is made to refinance--
(A) a construction loan,
(B) an installment land sales contract, or
(C) a loan assumed by the veteran that
provides for a lower interest rate than the
loan being refinanced,
the amount of the loan to be guaranteed or made does
not exceed the lesser of--
(i) the reasonable value of the dwelling or
farm residence securing the loan, as determined
pursuant to section 3731 of this title; or
(ii) the sum of the outstanding balance on
the loan to be refinanced and the closing costs
(including discounts) actually paid by the
veteran, as specified by the Secretary in
regulations; and
(8) in the case of a loan to refinance a loan (other
than a loan or installment sales contract described in
clause (7) of this subsection or a loan made for a
purpose specified in subsection (a)(8) of this
section), the amount of the loan to be guaranteed or
made does not exceed 100 percent of the reasonable
value of the dwelling or farm residence securing the
loan, as determined pursuant to section 3731 of this
title.
(d)(1) The Secretary shall carry out a program to demonstrate
the feasibility of guaranteeing loans for the acquisition of an
existing dwelling and the cost of making energy efficiency
improvements to the dwelling or for energy efficiency
improvements to a dwelling owned and occupied by a veteran. A
loan may be guaranteed under this subsection only if it meets
the requirements of this chapter, except as those requirements
are modified by this subsection.
(2) The cost of energy efficiency measures that may be
financed by a loan guaranteed under this section may not exceed
the greater of--
(A) the cost of the energy efficiency improvements,
up to $3,000; or
(B) $6,000, if the increase in the monthly payment
for principal and interest does not exceed the likely
reduction in monthly utility costs resulting from the
energy efficiency improvements.
(3) Notwithstanding the provisions of section 3703(a)(1)(A)
of this title, any loan guaranteed under this subsection shall
be guaranteed in an amount equal to the sum of--
(A) the guaranty that would be provided under those
provisions for the dwelling without the energy
efficiency improvements; and
(B) an amount that bears the same relation to the
cost of the energy efficiency improvements as the
guaranty referred to in subparagraph (A) bears to the
amount of the loan minus the cost of such improvements.
(4) The amount of the veteran's entitlement, calculated in
accordance with [section 3703(a)(1)(B) of this title]
subparagraph (B) or (C) of section 3703(a)(1) of this title,
shall not be affected by the amount of the guaranty referred to
in paragraph (3)(B).
(5) The Secretary shall take appropriate actions to notify
eligible veterans, participating lenders, and interested
realtors of the availability of loan guarantees under this
subsection and the procedures and requirements that apply to
the obtaining of such guarantees.
(6) For the purposes of this subsection:
(A) The term ``energy efficiency improvement''
includes a solar heating system, a solar heating and
cooling system, or a combined solar heating and cooling
system, and the application of a residential energy
conservation measure.
(B) The term ``solar heating'' has the meaning given
such term in section 3(1) of the Solar Heating and
Cooling Demonstration Act of 1974 (42 U.S.C. 5502(1))
and, in addition, includes a passive system based on
conductive, convective, or radiant energy transfer.
(C) The terms ``solar heating and cooling'' and
``combined solar heating and cooling'' have the meaning
given such terms in section 3(2) of the Solar Heating
and Cooling Demonstration Act of 1974 (42 U.S.C.
5502(2)) and, in addition, include a passive system
based on conductive, convective, or radiant energy
transfer.
(D) The term ``passive system'' includes window and
skylight glazing, thermal floors, walls, and roofs,
movable insulation panels (when in conjunction with
glazing), portions of a residential structure that
serve as solar furnaces so as to add heat to the
structure, double-pane window insulation, and such
other energy-related components as are determined by
the Secretary to enhance the natural transfer of energy
for the purpose of heating or heating and cooling a
residence.
(E) The term ``residential energy conservation
measure'' means--
(i) caulking and weatherstripping of all
exterior doors and windows;
(ii) furnace efficiency modifications limited
to--
(I) replacement burners, boilers, or
furnaces designed to reduce the firing
rate or to achieve a reduction in the
amount of fuel consumed as a result of
increased combustion efficiency,
(II) devices for modifying flue
openings which will increase the
efficiency of the heating system, and
(III) electrical or mechanical
furnace ignition systems which replace
standing gas pilot lights;
(iii) clock thermostats;
(iv) ceiling, attic, wall, and floor
insulation;
(v) water heater insulation;
(vi) storm windows and doors;
(vii) heat pumps; and
(viii) such other energy conservation
measures as the Secretary may identify for the
purposes of this subparagraph.
(e)(1) For a loan to be guaranteed for the purpose specified
in subsection (a)(8) or for the purpose specified in subsection
(a)(11) of this section--
(A) the interest rate of the loan must be less than
the interest rate of the loan being refinanced or, in a
case in which the loan is a fixed rate loan and the
loan being refinanced is an adjustable rate loan, the
loan bears interest at a rate that is agreed upon by
the veteran and the mortgagee;
(B) the loan must be secured by the same dwelling or
farm residence as was the loan being refinanced;
(C) the amount of the loan may not exceed--
(i) an amount equal to the sum of the balance
of the loan being refinanced and such closing
costs (including any discount permitted
pursuant to section 3703(c)(3)(A) of this
title) as may be authorized by the Secretary
(under regulations which the Secretary shall
prescribe) to be included in the loan; or
(ii) in the case of a loan for the purpose
specified in subsection (a)(11), an amount
equal to the sum of the amount referred to with
respect to the loan under clause (i) and the
amount specified under subsection (d)(2);
(D) notwithstanding section 3703(a)(1) of this title,
the amount of the guaranty of the loan may not exceed
the greater of (i) the original guaranty amount of the
loan being refinanced, or (ii) 25 percent of the loan;
(E) the term of the loan may not exceed the original
term of the loan being refinanced by more than 10
years; and
(F) the veteran must own the dwelling or farm
residence securing the loan and--
(i) must occupy such dwelling or residence as
such veteran's home;
(ii) must have previously occupied such
dwelling or residence as such veteran's home
and must certify, in such form as the Secretary
shall require, that the veteran has previously
so occupied such dwelling or residence; or
(iii) in any case in which a veteran is in
active duty status as a member of the Armed
Forces and is unable to occupy such residence
or dwelling as a home because of such status,
the spouse of the veteran must occupy, or must
have previously occupied, such dwelling or
residence as such spouse's home and must
certify such occupancy in such form as the
Secretary shall require.
(2) A loan to a veteran may be guaranteed by the Secretary
under this chapter for the purpose specified in clause (8) of
subsection (a) of this section without regard to the amount of
outstanding guaranty entitlement available for use by such
veteran, and the amount of such veteran's guaranty entitlement
shall not be charged as a result of any guaranty provided for
such purpose. For purposes of section 3702(b) of this title,
such loan shall be deemed to have been obtained with the
guaranty entitlement used to obtain the loan being refinanced.
(3) If a veteran is deceased and if such veteran's surviving
spouse was a co-obligor under an existing loan guaranteed,
insured, or made under this chapter, such surviving spouse
shall, only for the purpose specified in subsection (a)(8) of
this section, be deemed to be a veteran eligible for benefits
under this chapter.
(f)(1) For a loan to be guaranteed for the purpose specified
in subclause (A)(ii) or (B)(ii) of subsection (a)(9) of this
section, the purchase of (or the refinancing of a loan secured
by) the manufactured home and the lot for that home shall be
considered as one loan and must comply with such criteria as
may be prescribed by the Secretary in regulations.
(2) A loan may not be guaranteed for the purposes of
subsection (a)(9) of this section unless the manufactured home
purchased, upon being permanently affixed to the lot, is
considered to be real property under the laws of the State
where the lot is located.
(g)(1) For the purposes of this subsection, the term
``veteran'', when used with respect to a loan guaranteed or to
be guaranteed under this chapter, includes the veteran's spouse
if the spouse is jointly liable with the veteran under the
loan.
(2) For the purpose of determining whether a veteran meets
the standards referred to in subsection (b)(3) of this section
and section 3712(e)(2) of this title, the Secretary shall
prescribe regulations which establish--
(A) credit underwriting standards to be used in
evaluating loans to be guaranteed under this chapter;
and
(B) standards to be used by lenders in obtaining
credit information and processing loans to be
guaranteed under this chapter.
(3) In the regulations prescribed under paragraph (2)
of this subsection, the Secretary shall establish
standards that include--
(A) debt-to-income ratios to apply in the case of the
veteran applying for the loan;
(B) criteria for evaluating the reliability and
stability of the income of the veteran applying for the
loan; and
(C) procedures for ascertaining the monthly income
required by the veteran to meet the anticipated loan
payment terms.
If the procedures described in clause (C) of this
paragraph include standards for evaluating residual
income, the Secretary shall, in establishing such
standards, give appropriate consideration to State
statistics (in States as to which the Secretary
determines that such statistics are reliable) pertinent
to residual income and the cost of living in the State
in question rather than in a larger region.
(4)(A) Any lender making a loan under this chapter shall
certify, in such form as the Secretary shall prescribe, that
the lender has complied with the credit information and loan
processing standards established under paragraph (2)(B) of this
subsection, and that, to the best of the lender's knowledge and
belief, the loan meets the underwriting standards established
under paragraph (2)(A) of this subsection.
(B) Any lender who knowingly and willfully makes a false
certification under subparagraph (A) of this paragraph shall be
liable to the United States Government for a civil penalty
equal to two times the amount of the Secretary's loss on the
loan involved or to another appropriate amount, not to exceed
$10,000, whichever is greater. All determinations necessary to
carry out this subparagraph shall be made by the Secretary.
(5) Pursuant to regulations prescribed to carry out this
paragraph, the Secretary may, in extraordinary situations,
waive the application of the credit underwriting standards
established under paragraph (2) of this subsection when the
Secretary determines, considering the totality of
circumstances, that the veteran is a satisfactory credit risk.
(h)(1) A loan may not be guaranteed under subsection (a)(12)
unless--
(A) the development, project, or structure of the
cooperative housing corporation complies with such
criteria as the Secretary prescribes in regulations;
and
(B) the dwelling unit that the purchase of stock or
membership in the development, project, or structure of
the cooperative housing corporation entitles the
purchaser to occupy is a single family residential
unit.
(2) In this subsection, the term ``cooperative housing
corporation'' has the meaning given such term in section
216(b)(1) of the Internal Revenue Code of 1986.
(3) When applying the term ``value of the property'' to a
loan guaranteed under subsection (a)(12), such term means the
appraised value of the stock or membership entitling the
purchaser to the permanent occupancy of the dwelling unit in
the development, project, or structure of the cooperative
housing corporation.
* * * * * * *
SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
* * * * * * *
Sec. 3729. Loan fee
(a) Requirement of Fee.--(1) Except as provided in subsection
(c), a fee shall be collected from each person obtaining a
housing loan guaranteed, insured, or made under this chapter,
and each person assuming a loan to which section 3714 of this
title applies. No such loan may be guaranteed, insured, made,
or assumed until the fee payable under this section has been
remitted to the Secretary.
(2) The fee may be included in the loan and paid from the
proceeds thereof.
(b) Determination of Fee.--(1) The amount of the fee shall be
determined from the loan fee table in paragraph (2). The fee is
expressed as a percentage of the total amount of the loan
guaranteed, insured, or made, or, in the case of a loan
assumption, the unpaid principal balance of the loan on the
date of the transfer of the property.
(2) The loan fee table referred to in paragraph (1) is as
follows:
[LOAN FEE TABLE
------------------------------------------------------------------------
Other
[Type of loan Active duty veteran Reservist obligor
------------------------------------------------------------------------
(A)(i) Initial 2.00 2.75 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 0-
down, or any
other initial
loan described in
section 3710 (a)
other than with 5-
down or 10-down
(closed before
January 1, 2004)
(A)(ii) Initial 2.20 2.40 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 0-
down, or any
other initial
loan described in
section 3710 (a)
other than with 5-
down or 10-down
(closed on or
after January 1,
2004, and before
October 1, 2004)
(A)(iii) Initial 2.15 2.40 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 0-
down, or any
other initial
loan described in
section 3710 (a)
other than with 5-
down or 10-down
(closed on or
after October 1,
2004, and before
September 30,
2028)
(A)(iv) Initial 1.40 1.65 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 0-
down, or any
other initial
loan described in
section 3710 (a)
other than with 5-
down or 10-down
(closed on or
after September
30, 2028)
(B)(i) Subsequent 3.30 3.30 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 0-
down, or any
other subsequent
loan described in
section 3710 (a)
(closed before
September 30,
2028)
(B)(ii) Subsequent 1.25 1.25 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 0-
down, or any
other subsequent
loan described in
section 3710 (a)
(closed on or
after September
30, 2028)
(C)(i) Loan 1.50 1.75 NA
described in
section 3710 (a)
to purchase or
construct a
dwelling with 5-
down (closed
before September
30, 2028)
(C)(ii) Loan 0.75 1.00 NA
described in
section 3710 (a)
to purchase or
construct a
dwelling with 5-
down (closed on
or after
September 30,
2028)
(D)(i) Initial 1.25 1.50 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 10-
down (closed
before September
30, 2028)
(D)(ii) Initial 0.50 0.75 NA
loan described in
section 3710 (a)
to purchase or
construct a
dwelling with 10-
down (closed on
or after
September 30,
2028)
(E) Interest rate 0.50 0.50 NA
reduction
refinancing loan
(F) Direct loan 1.00 1.00 NA
under section
3711
(G) Manufactured 1.00 1.00 NA
home loan under
section 3712
(other than an
interest rate
reduction
refinancing loan)
(H) Loan to Native 1.25 1.25 NA
American veteran
under section
3762 (other than
an interest rate
reduction
refinancing loan)
(I) Loan 0.50 0.50 0.50
assumption under
section 3714
(J) Loan under 2.25 2.25 2.25]
section 3733 (a)
------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Active duty
Type of loan veteran Reservist Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in section 3710(a) 2.15 2.40 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after October 1, 2004, and before
January 1, 2020)
(A)(ii) Initial loan described in section 3710(a) 2.30 2.30 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after January 1, 2020, and before
January 1, 2022)
(A)(iii) Initial loan described in section 2.15 2.15 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other initial loan described in
section 3710(a) other than with 5-down or 10-
down (closed on or after January 1, 2022, and
before October 1, 2029)
(A)(iv) Initial loan described in section 3710(a) 1.40 1.40 NA
to purchase or construct a dwelling with 0-down,
or any other initial loan described in section
3710(a) other than with 5-down or 10-down
(closed on or after October 1, 2029)
(B)(i) Subsequent loan described in section 3.30 3.30 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after October
1, 2004, and before January 1, 2020)
(B)(ii) Subsequent loan described in section 3.60 3.60 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after January
1, 2020, and before January 1, 2022)
(B)(iii) Subsequent loan described in section 3.30 3.30 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after January
1, 2022, and before October 1, 2029)
(B)(iv) Subsequent loan described in section 1.25 1.25 NA
3710(a) to purchase or construct a dwelling with
0-down, or any other subsequent loan described
in section 3710(a) (closed on or after October
1, 2029)
(C)(i) Loan described in section 3710(a) to 1.50 1.75 NA
purchase or construct a dwelling with 5-down
(closed before January 1, 2020)
(C)(ii) Loan described in section 3710(a) to 1.65 1.65 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2020, and before
January 1, 2022)
(C)(iii) Loan described in section 3710(a) to 1.50 1.50 NA
purchase or construct a dwelling with 5-down
(closed on or after January 1, 2022, and before
October 1, 2029)
(C)(iv) Loan described in section 3710(a) to 0.75 0.75 NA
purchase or construct a dwelling with 5-down
(closed on or after October 1, 2029)
(D)(i) Loan described in section 3710(a) to 1.25 1.50 NA
purchase or construct a dwelling with 10-down
(closed before January 1, 2020)
(D)(ii) Loan described in section 3710(a) to 1.40 1.40 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2020, and before
January 1, 2022)
(D)(iii) Loan described in section 3710(a) to 1.25 1.25 NA
purchase or construct a dwelling with 10-down
(closed on or after January 1, 2022, and before
October 1, 2029)
(D)(iv) Loan described in section 3710(a) to 0.50 0.50 NA
purchase or construct a dwelling with 10-down
(closed on or after October 1, 2029)
(E) Interest rate reduction refinancing loan 0.50 0.50 NA
(F) Direct loan under section 3711 1.00 1.00 NA
(G) Manufactured home loan under section 3712 1.00 1.00 NA
(other than an interest rate reduction
refinancing loan)
(H) Loan to Native American veteran under section 1.25 1.25 NA
3762 (other than an interest rate reduction
refinancing loan)
(I) Loan assumption under section 3714 0.50 0.50 0.50
(J) Loan under section 3733(a) 2.25 2.25 2.25
----------------------------------------------------------------------------------------------------------------
(3) Any reference to a section in the ``Type of loan'' column
in the loan fee table in paragraph (2) refers to a section of
this title.
(4) For the purposes of paragraph (2):
(A) The term ``active duty veteran'' means any
veteran eligible for the benefits of this chapter other
than a Reservist.
(B) The term ``Reservist'' means a veteran described
in section 3701(b)(5)(A) of this title who is eligible
under section 3702(a)(2)(E) of this title.
(C) The term ``other obligor'' means a person who is
not a veteran, as defined in section 101 of this title
or other provision of this chapter.
(D) The term ``initial loan'' means a loan to a
veteran guaranteed under section 3710 or made under
section 3711 of this title if the veteran has never
obtained a loan guaranteed under section 3710 or made
under section 3711 of this title.
(E) The term ``subsequent loan'' means a loan to a
veteran, other than an interest rate reduction
refinancing loan, guaranteed under section 3710 or made
under section 3711 of this title if the veteran has
previously obtained a loan guaranteed under section
3710 or made under section 3711 of this title.
(F) The term ``interest rate reduction refinancing
loan'' means a loan described in section 3710(a)(8),
3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or
3762(h) of this title.
(G) The term ``0-down'' means a downpayment, if any,
of less than 5 percent of the total purchase price or
construction cost of the dwelling.
(H) The term ``5-down'' means a downpayment of at
least 5 percent or more, but less than 10 percent, of
the total purchase price or construction cost of the
dwelling.
(I) The term ``10-down'' means a downpayment of 10
percent or more of the total purchase price or
construction cost of the dwelling.
(c) Waiver of Fee.--(1) A fee may not be collected under this
section from a veteran who is receiving compensation (or who,
but for the receipt of retirement pay or active service pay,
would be entitled to receive compensation) [or from a surviving
spouse], from a surviving spouse of any veteran (including a
person who died in the active military, naval, or air service)
who died from a service-connected disability, or from a member
of the Armed Forces who is serving on active duty and who
provides, on or before the date of loan closing, evidence of
having been awarded the Purple Heart.
(2)(A) A veteran described in subparagraph (B) shall be
treated as receiving compensation for purposes of this
subsection as of the date of the rating described in such
subparagraph without regard to whether an effective date of the
award of compensation is established as of that date.
(B) A veteran described in this subparagraph is a veteran who
is rated eligible to receive compensation--
(i) as the result of a pre-discharge disability
examination and rating; or
(ii) based on a pre-discharge review of existing
medical evidence (including service medical and
treatment records) that results in the issuance of a
memorandum rating.
* * * * * * *
Sec. 3731. Appraisals
(a) The Secretary shall--
(1) subject to subsection (b)(2) and in consultation
with appropriate representatives of institutions which
are regularly engaged in making housing loans,
prescribe uniform qualifications for appraisers,
including the successful completion of a written test,
submission of a sample appraisal, certification of an
appropriate number of years of experience as an
appraiser, and submission of recommendations from other
appraisers;
(2) use such qualifications in determining whether to
approve an appraiser to make appraisals of the
reasonable value of any property, construction,
repairs, or alterations for the purposes of this
chapter; and
(3) in consultation with local representatives of
institutions described in clause (1) of this
subsection, develop and maintain lists of appraisers
who are approved under clause (2) of this subsection to
make appraisals for the purposes of this chapter.
(b)(1) The Secretary shall select appraisers from a list
required by subsection (a)(3) of this section on a rotating
basis to make appraisals for the purposes of this chapter.
(2) If uniform qualifications become applicable for
appraisers who perform appraisals for or in connection with the
Federal Government, the qualifications required by subsection
(a)(1) of this section may be more stringent than such uniform
qualifications, but the Secretary may use no written test in
determining the qualifications of appraisers other than the
test prescribed to implement such uniform qualifications.
(3) The Secretary shall permit an appraiser on a list
developed and maintained under subsection (a)(3) to make an
appraisal for the purposes of this chapter based solely on
information gathered by a person with whom the appraiser has
entered into an agreement for such services.
(c) Except as provided in subsection (f) of this section, the
appraiser shall forward an appraisal report to the Secretary
for review. Upon receipt of such report, the Secretary shall
determine the reasonable value of the property, construction,
repairs, or alterations for purposes of this chapter, and
notify the veteran of such determination. Upon request, the
Secretary shall furnish a copy of the appraisal made of
property for the purposes of this chapter to the lender
proposing to make the loan which is to be secured by such
property and is to be guaranteed under this chapter.
(d) If a lender (other than a lender authorized under
subsection (f) of this section to determine reasonable value)--
(1) has proposed to make a loan to be guaranteed
under this chapter,
(2) has been furnished a certificate of reasonable
value of any property or of any construction, repairs,
or alterations of property which is to be the security
for such loan, and
(3) within a reasonable period prescribed by the
Secretary, has furnished to the Secretary an additional
appraisal of the reasonable value of such property,
construction, repairs, or alterations which was made by
an appraiser selected by the lender from the list
required by subsection (a)(3) of this section,
the Secretary shall consider both the initial appraisal and the
additional appraisal and shall, if appropriate, issue a revised
certificate of reasonable value of such property, construction,
repairs, or alterations.
(e)(1) In no case may a veteran be required to pay all or any
portion of the cost of the additional appraisal described in
subsection (d)(3) of this section.
(2) If a veteran, within a reasonable period prescribed by
the Secretary, has furnished to the Secretary an additional
appraisal of the reasonable value of such property,
construction, repairs, or alterations which was made by an
appraiser selected by the veteran from the list required by
subsection (a)(3) of this section, the Secretary shall consider
such appraisal, along with other appraisals furnished to the
Secretary, and shall, if appropriate, issue a revised
certificate of reasonable value of such property, construction,
repairs, or alterations.
(f)(1) Subject to the provisions of paragraphs (2) and (3) of
this subsection, the Secretary may, in accordance with
standards and procedures established in regulations prescribed
by the Secretary, authorize a lender to determine the
reasonable value of property for the purposes of this chapter
if the lender is authorized to make loans which are
automatically guaranteed under section 3702(d) of this title.
In such a case, the appraiser selected by the Secretary
pursuant to subsection (b) of this section shall submit the
appraisal report directly to the lender for review, and the
lender shall, as soon as possible thereafter, furnish a copy of
the appraisal to the veteran who is applying for the loan
concerned and to the Secretary.
(2) In exercising the authority provided in paragraph (1) of
this subsection, the Secretary shall assign a sufficient number
of personnel to carry out an appraisal-review system to
monitor, on at least a random-sampling basis, the making of
appraisals by appraisers and the effectiveness and the
efficiency of the determination of reasonable value of property
by lenders.
(4) Not later than April 30 of each year following a year in
which the Secretary authorizes lenders to determine reasonable
value of property under this subsection, the Secretary shall
submit to the Committees on Veterans' Affairs of the Senate and
the House of Representatives a report relating to the exercise
of that authority during the year in which the authority was
exercised.
(5) A report submitted pursuant to paragraph (4) of this
subsection shall include, for the period covered by each
report--
(A) the number and value of loans made by lenders
exercising the authority of this subsection;
(B) the number and value of such loans reviewed by
the appraisal-review monitors referred to in paragraph
(2) of this subsection;
(C) the number and value of loans made under this
subsection of which the Secretary received notification
of default;
(D) the amount of guaranty paid by the Secretary to
such lenders by reason of defaults on loans as to which
reasonable value was determined under this subsection;
and
(E) such recommendations as the Secretary considers
appropriate to improve the exercise of the authority
provided for in this subsection and to protect the
interests of the United States.
* * * * * * *
SUBCHAPTER V--DIRECT HOUSING LOANS FOR NATIVE AMERICAN VETERANS
* * * * * * *
Sec. 3762. Direct housing loans to Native American veterans; program
administration
(a) The Secretary may make a direct housing loan to a Native
American veteran under this subchapter if--
(1)(A) the Secretary has entered into a memorandum of
understanding with respect to such loans with the
tribal organization that has jurisdiction over the
veteran; or
(B) the tribal organization that has
jurisdiction over the veteran has entered into
a memorandum of understanding with any
department or agency of the United States with
respect to direct housing loans to Native
Americans that the Secretary determines
substantially complies with the requirements of
subsection (b); and
(2) the memorandum is in effect when the loan is
made.
(b)(1) Subject to paragraph (2), the Secretary shall ensure
that each memorandum of understanding that the Secretary enters
into with a tribal organization shall provide for the
following:
(A) That each Native American veteran who is under
the jurisdiction of the tribal organization and to whom
the Secretary makes a direct loan under this
subchapter--
(i) holds, possesses, or purchases using the
proceeds of the loan a meaningful interest in a
lot or dwelling (or both) that is located on
trust land; and
(ii) will purchase, construct, or improve (as
the case may be) a dwelling on the lot using
the proceeds of the loan.
(B) That each such Native American veteran will
convey to the Secretary by an appropriate instrument
the interest referred to in subparagraph (A) as
security for a direct housing loan under this
subchapter.
(C) That the tribal organization and each such Native
American veteran will permit the Secretary to enter
upon the trust land of that organization or veteran for
the purposes of carrying out such actions as the
Secretary determines are necessary--
(i) to evaluate the advisability of the loan;
and
(ii) to monitor any purchase, construction,
or improvements carried out using the proceeds
of the loan.
(D) That the tribal organization has established
standards and procedures that apply to the foreclosure
of the interest conveyed by a Native American veteran
pursuant to subparagraph (B), including--
(i) procedures for foreclosing the interest;
and
(ii) procedures for the resale of the lot or
the dwelling (or both) purchased, constructed,
or improved using the proceeds of the loan.
(E) That the tribal organization agrees to such other
terms and conditions with respect to the making of
direct loans to Native American veterans under the
jurisdiction of the tribal organization as the
Secretary may require in order to ensure that loans
under this subchapter are made in a responsible and
prudent manner.
(2) The Secretary may not enter into a memorandum of
understanding with a tribal organization under this
subsection unless the Secretary determines that the
memorandum provides for such standards and procedures
as are necessary for the reasonable protection of the
financial interests of the United States.
(c)[(1)(A) Except as provided in subparagraph (B), the
principal amount of any direct housing loan made to a Native
American veteran under this section may not exceed $80,000.
[(B)(i) Subject to clause (ii), the Secretary may make loans
exceeding the amount specified in subparagraph (A) in a
geographic area if the Secretary determines that housing costs
in the area are significantly higher than average housing costs
nationwide. The amount of such increase shall be the amount
that the Secretary determines is necessary in order to make
direct housing loans under this subchapter to Native American
veterans who are located in a variety of geographic areas and
in geographic areas experiencing a variety of economic
conditions.
[(ii) The amount of a loan made by the Secretary under this
subchapter may not exceed the maximum loan amount authorized
for loans guaranteed under section 3703(a)(1)(C) of this
title.]
[(2)] (1) Loans made under this section shall bear
interest at a rate determined by the Secretary, which
rate may not exceed the appropriate rate authorized for
guaranteed loans under section 3703(c)(1) or section
3712(f) of this title, and shall be subject to such
requirements or limitations prescribed for loans
guaranteed under this title as the Secretary may
prescribe.
[(3)] (2) Notwithstanding section 3704(a) of this
title, the Secretary shall establish minimum
requirements for planning, construction, improvement,
and general acceptability relating to any direct loan
made under this section.
(d)(1) The Secretary shall establish credit underwriting
standards to be used in evaluating loans made under this
subchapter. In establishing such standards, the Secretary shall
take into account the purpose of this program to make available
housing to Native American veterans living on trust lands.
(2) The Secretary shall determine the reasonable value of the
interest in property that will serve as security for a loan
made under this section and shall establish procedures for
appraisals upon which the Secretary may base such
determinations. The procedures shall incorporate generally the
relevant requirements of section 3731 of this title, unless the
Secretary determines that such requirements are impracticable
to implement in a geographic area, on particular trust lands,
or under circumstances specified by the Secretary.
(e) Loans made under this section shall be repaid in monthly
installments.
(f) In connection with any loan under this section, the
Secretary may make advances in cash to provide for repairs,
alterations, and improvements and to meet incidental expenses
of the loan transaction. The Secretary shall determine the
amount of any expenses incident to the origination of loans
made under this section, which expenses, or a reasonable flat
allowance in lieu thereof, shall be paid by the veteran in
addition to the loan closing costs.
(g) Without regard to any provision of this chapter (other
than a provision of this section), the Secretary may--
(1) take any action that the Secretary determines to
be necessary with respect to the custody, management,
protection, and realization or sale of investments
under this section;
(2) determine any necessary expenses and expenditures
and the manner in which such expenses and expenditures
shall be incurred, allowed, and paid;
(3) make such rules, regulations, and orders as the
Secretary considers necessary for carrying out the
Secretary's functions under this section; and
(4) in a manner consistent with the provisions of
this chapter and with the Secretary's functions under
this subchapter, employ, utilize, and compensate any
persons, organizations, or departments or agencies
(including departments and agencies of the United
States) designated by the Secretary to carry out such
functions.
(h)(1) The Secretary may make direct loans to Native American
veterans in order to enable such veterans to refinance existing
loans made under this section.
(2)(A) The Secretary may not make a loan under this
subsection unless the loan meets the requirements set forth in
subparagraphs (B), (C), and (E) of paragraph (1) of section
3710(e) of this title.
(B) The Secretary may not make a loan under this subsection
unless the loan will bear an interest rate at least one
percentage point less than the interest rate borne by the loan
being refinanced.
(C) Paragraphs (2) and (3) of such section 3710(e) shall
apply to any loan made under this subsection, except that for
the purposes of this subsection the reference to subsection
(a)(8) of section 3710 of this title in such paragraphs (2) and
(3) shall be deemed to be a reference to this subsection.
(i)(1) The Secretary shall, in consultation with tribal
organizations (including the National Congress of American
Indians and the National American Indian Housing Council),
carry out an outreach program to inform and educate Native
American veterans of the availability of direct housing loans
for Native American veterans who live on trust lands.
(2) Activities under the outreach program shall include the
following:
(A) Attending conferences and conventions conducted
by the National Congress of American Indians in order
to work with the National Congress in providing
information and training to tribal organizations and
Native American veterans regarding the availability of
housing benefits under this subchapter and in assisting
such organizations and veterans with respect to such
housing benefits.
(B) Attending conferences and conventions conducted
by the National American Indian Housing Council in
order to work with the Housing Council in providing
information and training to tribal organizations and
tribal housing entities regarding the availability of
such benefits.
(C) Attending conferences and conventions conducted
by the Department of Hawaiian Homelands in order to
work with the Department of Hawaiian Homelands in
providing information and training to tribal housing
entities in Hawaii regarding the availability of such
benefits.
(D) Producing and disseminating information to tribal
governments, tribal veterans service organizations, and
tribal organizations regarding the availability of such
benefits.
(E) Assisting tribal organizations and Native
American veterans with respect to such benefits.
(F) Outstationing loan guarantee specialists in
tribal facilities on a part-time basis if requested by
the tribal government.
(j) The Secretary shall include as part of the annual
benefits report of the Veterans Benefits Administration
information concerning the cost and number of loans provided
under this subchapter for the fiscal year covered by the
report.
* * * * * * *
[all]