[Congressional Record Volume 144, Number 64 (Tuesday, May 19, 1998)]
[House]
[Pages H3392-H3395]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        VETERANS TRANSITIONAL HOUSING OPPORTUNITIES ACT OF 1998

  Mr. STUMP. Madam Speaker, I move to suspend the rules and pass the 
bill (H.R. 3039) to amend title 38, United States Code, to authorize 
the Secretary of Veterans Affairs to guarantee loans to provide 
multifamily transitional housing for homeless veterans, and for other 
purposes, as amended.
  The Clerk read as follows:

                               H.R. 3039

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Veterans Transitional 
     Housing Opportunities Act of 1998''.

     SEC. 2. LOAN GUARANTEE FOR MULTIFAMILY TRANSITIONAL HOUSING 
                   FOR HOMELESS VETERANS.

       (a) In General.--Chapter 37 of title 38, United States 
     Code, is amended by adding at the end the following new 
     subchapter:

 ``SUBCHAPTER VI--LOAN GUARANTEE FOR MULTIFAMILY TRANSITIONAL HOUSING 
                         FOR HOMELESS VETERANS

     ``Sec. 3771. Definitions

       ``For purposes of this subchapter--
       ``(1) the term `veteran' has the meaning given such term by 
     paragraph (2) of section 101;
       ``(2) the term `homeless veteran' means a veteran who is a 
     homeless individual; and
       ``(3) the term `homeless individual' has the same meaning 
     as such term has within the meaning of section 103 of the 
     Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
     11302).

     ``Sec. 3772. General authority

       ``(a) The Secretary may guarantee the full or partial 
     repayment of a loan that meets the requirements of this 
     subchapter.
       ``(b)(1) Not more than 15 loans may be guaranteed under 
     subsection (a), of which not more than 5 such loans may be 
     guaranteed during the 3-year period beginning on the date of 
     enactment of the Veterans Transitional Housing Opportunities 
     Act of 1998.
       ``(2) A guarantee of a loan under subsection (a) shall be 
     in an amount that is not less than the amount necessary to 
     sell the loan in a commercial market.
       ``(3) Not more than an aggregate amount of $100,000,000 in 
     loans may be guaranteed under subsection (a).
       ``(c) A loan may not be guaranteed under this subchapter 
     unless, prior to closing such loan, the Secretary has 
     approved such loan.
       ``(d)(1) The Secretary shall enter into contracts with a 
     qualified nonprofit organization to obtain advice in carrying 
     out this subchapter, including advice on the terms and 
     conditions necessary for a loan that meets the requirements 
     of section 3773.
       ``(2) For purposes of paragraph (1), a qualified nonprofit 
     organization is a nonprofit organization--
       ``(A) described in paragraph (3) or (4) of subsection (c) 
     of section 501 of the Internal Revenue Code of 1986 and 
     exempt from tax under subsection (a) of such section, and
       ``(B) that has experience in underwriting transitional 
     housing projects.
       ``(e) The Secretary may carry out this subchapter in 
     advance of the issuance of regulations for such purpose.
       ``(f) The Secretary may guarantee loans under this 
     subchapter notwithstanding any requirement for prior 
     appropriations for such purpose under any provision of law.

     ``Sec. 3773. Requirements

       ``(a) A loan referred to in section 3772 meets the 
     requirements of this subchapter if--
       ``(1) the loan is for--
       ``(A) construction of, rehabilitation of, or acquisition of 
     land for a multifamily transitional housing project described 
     in subsection (b), or more than one of such purposes;
       ``(B) refinancing of an existing loan for such a project;
       ``(C) financing acquisition of furniture, equipment, 
     supplies, or materials for such a project; or
       ``(D) in the case of a loan made for purposes of 
     subparagraph (A), supplying such organization with working 
     capital relative to such a project;
       ``(2) the loan is made in connection with funding or the 
     provision of substantial property or services for such 
     project by either a State or local government or a 
     nongovernmental entity, or both;

[[Page H3393]]

       ``(3) the maximum loan amount does not exceed the lesser 
     of--
       ``(A) that amount generally approved (utilizing prudent 
     underwriting principles) in the consideration and approval of 
     projects of similar nature and risk so as to assure repayment 
     of the loan obligation; and
       ``(B) 90 percent of the total cost of the project;
       ``(4) the loan is of sound value, taking into account the 
     creditworthiness of the entity (and the individual members of 
     the entity) applying for such loan;
       ``(5) the loan is secured; and
       ``(6) the loan is subject to such terms and conditions as 
     the Secretary determines are reasonable, taking into account 
     other housing projects with similarities in size, location, 
     population, and services provided.
       ``(b) For purposes of this subchapter, a multifamily 
     transitional housing project referred to in subsection (a)(1) 
     is a project that--
       ``(1)(A) provides transitional housing to homeless 
     veterans, which housing may be single room occupancy (as 
     defined in section 8(n) of the United States Housing Act of 
     1937 (42 U.S.C. 1437f(n)));
       ``(B) provides supportive services and counselling services 
     (including job counselling) at the project site with the goal 
     of making such veterans self-sufficient;
       ``(C) requires that the veteran seek to obtain and keep 
     employment;
       ``(D) charges a reasonable fee for occupying a unit in such 
     housing;
       ``(E) maintains strict guidelines regarding sobriety as a 
     condition of occupying such unit; and
       ``(F) may include space for neighborhood retail services or 
     job training programs; and
       ``(2) may provide transitional housing to veterans who are 
     not homeless and to homeless individuals who are not veterans 
     if--
       ``(A) at the time of taking occupancy by any such veteran 
     or homeless individual, the transitional housing needs of 
     homeless veterans in the project area have been met;
       ``(B) the housing needs of any such veteran or homeless 
     individual can be met in a manner that is compatible with the 
     manner in which the needs of homeless veterans are met under 
     paragraph (1); and
       ``(C) the provisions of subparagraphs (D) and (E) of 
     paragraph (1) are met.
       ``(c) In determining whether to guarantee a loan under this 
     subchapter, the Secretary shall consider--
       ``(1) the availability of Department of Veterans Affairs 
     medical services to residents of the multifamily transitional 
     housing project; and
       ``(2) the extent to which needs of homeless veterans are 
     met in a community, as assessed under section 107 of Public 
     Law 102-405.

     ``Sec. 3774. Default

       ``(a) The Secretary shall take such steps as may be 
     necessary to obtain repayment on any loan that is in default 
     and that is guaranteed under this subchapter.
       ``(b) Upon default of a loan guaranteed under this 
     subchapter and terminated pursuant to State law, a lender may 
     file a claim under the guarantee for an amount not to exceed 
     the lesser of--
       ``(1) the maximum guarantee; or
       ``(2) the difference between--
       ``(A) the total outstanding obligation on the loan, 
     including principal, interest, and expenses authorized by the 
     loan documents, through the date of the public sale (as 
     authorized under such documents and State law); and
       ``(B) the amount realized at such sale.

     ``Sec. 3775. Audit

       ``During each of the first 3 years of operation of a 
     multifamily transitional housing project with respect to 
     which a loan is guaranteed under this subchapter, there shall 
     be an annual, independent audit of such operation. Such audit 
     shall include a detailed statement of the operations, 
     activities, and accomplishments of such project during the 
     year covered by such audit. The party responsible for 
     obtaining such audit (and paying the costs therefor) shall be 
     determined before the Secretary issues a guarantee under this 
     subchapter.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of chapter 37 of title 38, United States Code, is 
     amended by adding at the end the following new items:

 ``SUBCHAPTER VI--LOAN GUARANTEE FOR MULTIFAMILY TRANSITIONAL HOUSING 
                         FOR HOMELESS VETERANS

``3771. Definitions.
``3772. General authority.
``3773. Requirements.
``3774. Default.
``3775. Audit.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Arizona (Mr. Stump) and the gentleman from Illinois (Mr. Evans) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Arizona (Mr. Stump).


                             General Leave

  Mr. STUMP. Madam Speaker, I ask unanimous consent that all Members 
may have 5 legislative days within which to revise and extend their 
remarks, and include extraneous material on H.R. 3039, as amended.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Arizona?
  There was no objection.
  Mr. STUMP. Madam Speaker, I yield myself such time as I may consume.
  (Mr. STUMP asked and was given permission to revise and extend his 
remarks.)
  Mr. STUMP. Madam Speaker, H.R. 3039 is the Veterans Transitional 
Housing Opportunity Act of 1998. It authorizes the VA to guarantee home 
loans for multi-unit transitional housing for homeless veterans. The 
bill also requires homeless projects using these loans to work with VA 
health care facilities as well as State and local authorities. 
Additionally, it requires residents to seek and obtain employment and 
maintain sobriety.
  The bill is based on a model that stresses personal responsibility, 
addiction recovery and work. The project must provide supportive 
services, sobriety, personal and job counseling. Residents are required 
to pay a reasonable fee for their residence.
  Many committee members have contributed to this bill from both sides 
of the aisle and we appreciate that very much.
  Madam Speaker, I reserve the balance of my time.
  Mr. EVANS. Madam Speaker, I yield myself such time as I may consume.
  I am pleased to be an original cosponsor of H.R. 3039, the Veterans 
Housing Opportunities Act of 1998. This bill will furnish yet another 
tool to meet the housing and supportive service needs of homeless 
veterans.
  Many of these men and women, who once served their country with 
honor, can return to society as productive citizens if they are 
provided with an appropriate continuum of care. The program established 
under H.R. 3039 will provide the sanctuary, support and services 
necessary to achieve this goal.
  I want to thank the chairman of the full committee, the gentleman 
from Ohio (Mr. Stokes) for his help in the development of this 
legislation. I also want to commend the chairman of the Subcommittee on 
Benefits of the Committee on Veterans' Affairs, the gentleman from New 
York (Mr. Jack Quinn), and the ranking Democrat on the committee, the 
gentleman from California (Mr. Bob Filner), for their hard work on 
these issues. Their cooperative bipartisan efforts have resulted in a 
bill that is good for the veterans of this country. I urge my 
colleagues to support H.R. 3039.
  Madam Speaker, I reserve the balance of my time.
  Mr. STUMP. Madam Speaker, I yield such time as he may consume to the 
gentleman from New York (Mr. Quinn), the chairman of the Subcommittee 
on Benefits of the Committee on Veterans' Affairs.
  Mr. QUINN. Madam Speaker, I thank the gentleman for yielding me this 
time.
  H.R. 3039 is a bill to provide a VA loan guarantee for transitional 
housing for homeless veterans. In testimony before our Subcommittee on 
Benefits here in Washington, D.C., as well as testimony at a hearing 
held in Buffalo, New York, in my district, witness after witness said 
that the major stumbling block to providing services to homeless 
veterans is the inability to obtain stable funding. H.R. 3039 is 
intended to address this obstacle, thereby increasing the supply of 
transitional housing for homeless veterans.
  It is fairly common knowledge that veterans comprise about one-third 
of homeless adults in this country, and that a high percentage of the 
homeless suffer from substance abuse and mental illness. Four years ago 
the Congress called for programs serving homeless veterans to receive a 
proportional share of funding for the homeless. Unfortunately, that has 
not happened.
  Moreover, there appears to be a niche that is not being filled in the 
continuum of service necessary to move chronically affected veterans 
from being a drain on society to being productive citizens. That niche 
is transitional housing.
  H.R. 3039 authorizes loans for transitional housing programs that 
will provide a supportive and structured environment for our homeless 
veterans. The bill has the following features:
  The VA would be authorized to guarantee up to 15 loans for multi-unit 
transitional housing for homeless veterans, but the VA could not 
guarantee more than 5 loans in the first 3 years of the program. The 
aggregate value of the loans is capped at $100 million.
  The bill requires VA to obtain advice in administering the program 
from a

[[Page H3394]]

not-for-profit corporation experienced in developing these kinds of 
programs. This approach obviates the need for the VA to develop 
additional staff or expertise, and should enable the VA to manage the 
program within its existing resources.
  The borrowers must work with VA health care facilities and State and 
local authorities to provide a full range of supportive services to 
maintain sobriety as well as personal counseling and employment 
services. Projects must work closely with the VA and non-VA sources as 
a means to reduce the project costs and enhance the effectiveness of 
the project and other related programs.
  This bill requires residents to seek and obtain employment and to 
maintain sobriety. It is a tough love approach. While the bill does not 
require a zero tolerance approach to substance abuse for those enrolled 
in the program, the committee believes that the potential negative 
impact of those who continue to abuse drugs or alcohol on those wishing 
to remain clean and sober justifies the zero tolerance.
  Finally, residents are required to pay a reasonable fee for their 
residence because it promotes personal responsibility. Along with 
staying clean and sober, part of taking personal responsibility is 
paying one's way in the world and is yet another step towards becoming 
a fully productive citizen.
  I would like to thank all the members of the committee for the 
bipartisan manner in which we worked through this to bring the bill to 
the floor. The subcommittee and the gentleman from California (Mr. 
Filner) and his staff worked very hard; the gentleman from Illinois 
(Mr. Lane Evans), who traveled to Buffalo for the hearing we had, I am 
also appreciative to him, and especially thank the chairman of the 
committee, the gentleman from Arizona (Mr. Stump) for his leadership on 
the issue.
  Madam Speaker, it is a good bill. We believe it fills a void that now 
exists in the homeless programs, particularly for our veterans in this 
country, and I urge my colleagues to support H.R. 3039.
  Mr. EVANS. Madam Speaker, I yield 3 minutes to the gentleman from 
California (Mr. Filner).
  Mr. FILNER. Madam Speaker, I thank the gentleman for yielding me this 
time.
  Madam Speaker, as the ranking Democrat member of the Subcommittee on 
Benefits of the Committee on Veterans' Affairs, I want to also commend 
the chairman of the subcommittee, the gentleman from New York (Mr. 
Quinn), for his leadership on H.R. 3039, the Veterans Transitional 
Housing Opportunities Act for 1998.
  This bill, as the gentleman has explained, will provide the 
transitional housing so desperately needed by the hundreds of thousands 
of veterans who sleep on America's streets each night. There is 
virtually no disagreement that one-third of the homeless men in this 
country are veterans. In my hometown of San Diego, it is estimated that 
40 to 50 percent of the homeless are veterans.
  I am very troubled that this very difficult problem never seems to 
get better. The number of homeless veterans never seems to decrease. I 
conclude from this that our approach must change. And although H.R. 
3039 is not a panacea, I am convinced this program can provide the 
assistance and support necessary for homeless veterans to reestablish 
themselves as solid contributing citizens.
  This program emphasizes self-sufficiency by requiring housing 
providers to make available job counseling to veteran residents and by 
requiring veterans to find and keep a job and to pay a reasonable fee 
for their housing. H.R. 3039 will provide a hand up, not a handout.
  I want to thank the gentleman from New York (Mr. Quinn) for his 
willingness to reexamine the funding mechanism that was included in 
H.R. 3039 as introduced. Although the officials of the Veterans 
Administration did not fully articulate their concerns regarding this 
section of the bill until rather late in the process, the issues they 
raised were indeed important, and I am pleased we were able to come to 
an agreement on the funding issue.
  H.R. 3039 is an excellent bill, and I urge my colleagues to vote in 
favor of this measure.
  Mr. STUMP. Madam Speaker, I yield 2 minutes to the gentleman from New 
York (Mr. Gilman), chairman of the Committee on International 
Relations.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Madam Speaker, I thank the gentleman for yielding me this 
time, and I am pleased to rise in strong support of H.R. 3039, the 
Veterans Transitional Housing Opportunities Act, creating a pilot 
program to allow the Department of Veterans Affairs to guarantee loans 
to community-based organizations providing services for homeless 
veterans.
  I commend the distinguished chairman of our Committee on Veterans' 
Affairs, the gentleman from Arizona (Mr. Stump), for his work on this 
bill, and the gentleman from New York (Mr. Quinn), and the gentleman 
from California (Mr. Filner) for their work on this important 
legislation.
  Homelessness, regrettably, is a widespread problem among our 
veterans. It is also unfortunate that many of those veterans who are 
homeless also require psychiatric care and rehabilitation treatment to 
recover from alcohol or substance abuse. Moreover, such veterans also 
often require training in marketable job skills to assist them in 
earning a living after they have recovered.
  The duty of providing housing rehabilitation and job training for 
homeless veterans is expensive. Increasingly, the Department of 
Veterans Affairs, with its new drive towards efficiency and outpatient 
care, has been unable to meet those needs. This bill directs the VA to 
guarantee the full or partial repayment of 15 loans to community-based 
organizations, with a maximum guarantee amount of $100 million, to 
fulfill these needs.
  Accordingly, Madam Speaker, I urge my colleagues to support this 
worthy legislation.
  Mr. STUMP. Madam Speaker, I yield myself the balance of my time to 
thank the chairman of the subcommittee, the gentleman from New York 
(Mr. Quinn), and the gentleman from California (Mr. Filner), the 
ranking member of the subcommittee, as well as the gentleman from 
Illinois (Mr. Lane Evans), the ranking member of the full committee, 
for all their hard work in putting this bill together.
  This is a bipartisan bill, and I would urge the Members to support 
it.
  Mr. REYES. Madam Speaker, I rise today in strong support of H.R. 
3039, the Veterans Transitional Housing Opportunities Act of 1998, and 
ask unanimous consent to revise and extend my remarks.
  This bill will provide a much needed boost to improving the 
availability of safe and secure homes for our Veterans. I am proud to 
join the Chairman and Ranking member of the Veterans' Affairs Committee 
as a co-sponsor of this important bill, which will provide a much 
needed boost to the pool of housing for our homeless veterans.
  In America, where there is so much prosperity, it is a tragedy that 
so many of our citizens are homeless, day after day, night after night, 
looking for shelter. Moreover, it is disturbing that one third of our 
nation's homeless are men and women who admirably served our country as 
veterans. This legislation reaffirms our commitment to our veterans 
wherever they are, to provide them safe and secure shelter. By 
authorizing $100 million in loan guarantees for the development of 
transitional housing, and by providing for support and counseling. I am 
proud to state that the Veterans' Affairs Committee has sought to bring 
these homeless veterans hope and independence. A home is the foundation 
of our country, and this legislation will bring our homeless veterans 
out from the cold.
  Moreover, this legislation is good policy as it provides for 
partnerships with local communities to provide this housing. By 
requiring local and community involvement, we can ensure that the 
specialized needs of our nation's veterans are secured across the 
country.
  As we take up this important legislation, we recommit ourselves to 
improving the lives of our nation's veterans. Today I stand with my 
colleagues on the Veterans Committee and the entire House in strongly 
supporting this bill. This legislation will truly begin to bring our 
dedicated and courageous veterans home. I encourage its unanimous 
passage.
  Thank you, Mr. Speaker.
  Ms. JACKSON-LEE of Texas. Madam Speaker, I rise before you today to 
express my support of the Veterans Transitional Housing Opportunities 
Act of 1998 (H.R. 3039). The Statistic noting that one in three 
homeless Americans are military veterans is staggering. The shortage of 
transitional housing is a result

[[Page H3395]]

of the difficulty of veterans in obtaining financing. This bill helps 
to address that problem. Our military is one of this country's 
strongest resources and I believe wholeheartedly, that we owe it to our 
servicemen and servicewomen to assist these protectors of our country 
and Constitution in their time of need.
  This bill does not provide assistance without conditions. Those who 
are eligible to participate in the program must seek and subsequently 
maintain a job, pay a reasonable rent and remain drug and alcohol free. 
These safeguards in determining eligibility will protect the program 
from potential abuses.
  In conclusion, I want to applaud Representative Stump for introducing 
this bill and urge my colleagues to join me in supporting the Veterans 
Transitional Housing Opportunities Act of 1998. These quarter of a 
million veterans served this country when we needed them, it is now our 
turn to serve them.
  Mr. STUMP. Madam Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  Mr. EVANS. Madam Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Arizona (Mr. Stump) that the House suspend the rules and 
pass the bill, H.R. 3039, as amended.
  The question was taken.
  Mr. STUMP. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

                          ____________________