[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;
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``(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
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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.
____________________