[Congressional Record Volume 143, Number 40 (Tuesday, April 8, 1997)]
[Extensions of Remarks]
[Page E581]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       HELP MAKE THE AMERICAN DREAM POSSIBLE FOR THOSE WHO SERVED

                                 ______
                                 

                         HON. GERALD D. KLECZKA

                              of wisconsin

                    in the house of representatives

                         Tuesday, April 8, 1997

  Mr. KLECZKA. Mr. Speaker, thousands of former servicemen and 
servicewomen in a number of States are currently prohibited from 
receiving State-financed home mortgages. That is why Representative 
Herger and I are reintroducing the Veterans American Dream 
Homeownership Assistance Act.
  Under a little-known provision of the 1984 tax bill, veterans in 
certain States who served in the Armed Forces beginning any time after 
1976 are all but prohibited from receiving a State-financed veterans 
home mortgage. In my State of Wisconsin, this means that most of our 
fighting men and women in uniform who served in Panama, Grenada, and 
the gulf war cannot get veterans home mortgages from their own State 
government, even if the State government would like to grant them. Are 
those who began serving their country after 1976 any less deserving 
than those who went before?
  Why does this cutoff exist? This cutoff was created to raise 
additional revenue for the 1984 tax bill by limiting the use of tax-
exempt bonds to finance State veterans mortgage programs. When this 
provision was passed, post-1976 vets were a small percentage of all 
veterans, without much voice to protest this discriminatory change. But 
13 years later, there are thousands who have served our country 
honorably in that period. The five affected State veterans affairs 
departments believe that if this bill becomes law, they can help a 
great number of these post-1976 vets purchase their own home. The 
States that are currently permitted to use this Federal tax-exempt 
State bond financing are Wisconsin, California, Texas, Oregon, and 
Alaska.
  This legislation would simply eliminate the cutoff that exists under 
current law. Under our proposal, former servicemen and servicewomen in 
the five States who served our country beginning in 1977 or any years 
after that could be eligible to qualify for a home mortgage loan 
provided by their States. Our proposal does not increase Federal 
discretionary spending 1 cent but simply allows the permitted States 
who so choose to help all their veterans regardless of when they 
served.
  Why should we continue to exclude from State assistance certain vets 
who have served our country, just because they served recently? We 
believe that at the Federal level we should at least allow our own 
States to help those who served our Nation honorably. Please help those 
veterans of Grenada, Panama, and the gulf war in the affected States 
who want to own their own home. Please join Representative Herger and I 
and the 60 bipartisan cosponsors from the 104th Congress I cosponsoring 
the Veterans American Dream Homeownership Assistance Act.

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