[Congressional Record Volume 153, Number 11 (Friday, January 19, 2007)]
[Extensions of Remarks]
[Page E156]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 ON INTRODUCTION OF THE ``HOMEOWNERSHIP FOR AMERICA'S VETERANS ACT OF 
                                 2007''

                                 ______
                                 

                           HON. WALLY HERGER

                             of california

                    in the house of representatives

                        Friday, January 19, 2007

  Mr. HERGER. Madam Speaker, I am pleased to join my fellow Californian 
in introducing the Homeownership for America's Veterans Act. This bill 
proposes to make an important change to our Nation's tax laws in order 
to assist thousands of veterans, in the State of California and 
elsewhere, realize the American dream of owning their own home.
  Currently, a provision in the federal tax code allows states to issue 
tax-preferred Qualified Veterans Mortgage Bonds, or QVMBs, to provide 
favorable financing on home mortgages for certain veterans. In 
California, these bonds are used to help provide low-cost mortgages 
through the California Department of Veterans Affairs, or Cal-Vet, home 
loan program.
  As written in the tax code, two of the five states that use QVMBs, 
California and Texas, are prohibited from using this bond-generated 
revenue to provide mortgages to veterans who entered military service 
after 1977. Obviously, this significantly limits the usefulness of 
these bonds to provide mortgages to subsequent generations of military 
servicemen and women. In fact, according to Cal-Vet's own estimations, 
only 4.1 percent of California's total veteran population is eligible 
for home loans financed through QVMBs.
  I want to thank my California colleague, Congresswoman Susan Davis, 
for her work on this important legislation. Like her, I believe it is 
important for us to open this bonding authority to allow QVMBs to be 
used to support home loans for more recent members of the armed forces, 
who have served our country so ably and with such determination. I look 
forward to continuing to work on this issue, and am pleased this bill 
has the strong support of California's veteran community, Governor 
Arnold Schwarzenegger, and the California Department of Veterans 
Affairs.

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