[Congressional Record Volume 156, Number 73 (Friday, May 14, 2010)]
[Senate]
[Pages S3783-S3785]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mr. BURR (for himself, Mr. Akaka, and Mr. Durbin):
S. 3377. A bill to amend title 38, United States Code, to improve the
multifamily transitional housing loan program of the Department of
Veterans Affairs by requiring the Secretary of Veterans Affairs to
issue loans for the construction of, rehabilitation of, or acquisition
of land for multifamily transitional housing projects instead of
guaranteeing loans for such purposes, and for other purposes; to the
Committee on Veterans' Affairs.
Mr. BURR. Mr. President, I rise today to offer legislation that would
improve the Department of Veterans Affairs, VA, Multifamily
Transitional Housing Loan program. This program, established in 1998
and supported with a $48 million appropriation in 1999, was intended to
encourage additional development of transitional housing units for
homeless veterans. Despite the good intention, the program was viewed
as too rigid by community providers who turned elsewhere for
assistance. In fact, only one loan was ever guaranteed under the
program until VA discontinued it 2 years ago. The legislation I am
introducing today would modify the program to give it the flexibility
that community providers say is needed. The bill is cost neutral,
relying only on money that Congress already has appropriated.
According to VA more than 107,000 veterans are homeless on any given
night, including an estimated 1,589 in my home state of North Carolina.
Many veterans are considered homeless or at risk due to their poverty,
lack of support systems, and poor living conditions.
Even though we have seen a decrease in the number of homeless
veterans from previous years, there is still work to be done. Make no
mistake; the goal is not only to end homelessness but provide
sustainable solutions to prevent veterans from, again, falling through
the cracks. One area that will continue to play an important role in
keeping veterans off the streets is the provision of transitional
housing units coupled with onsite supportive services.
There are a number of VA programs that encourage the development of
transitional housing units for homeless veterans. One such program, as
I previously mentioned, was established by Congress in 1998--the
Multifamily Transitional Housing Loan Guarantee Program. It was
designed to encourage lenders to make low-interest loans, backed by a
VA guaranty, available to homeless providers for the acquisition,
construction, and improvement of transitional housing units. One
provider, the St. Leo Campus for Veterans in Chicago, IL, operated by
Catholic Charities, availed themselves of a VA-backed housing loan.
However, St. Leo's experience is illustrative of why no other provider
was able to secure a
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loan and why the program was ultimately discontinued.
The St. Leo Campus for Veterans provides 141 studio units, each
containing its own kitchen and full bathroom, to formerly homeless
veterans as well as supportive services to help them become self-
sufficient. On the St. Leo Campus, VA operates a clinic to provide
outpatient services. In order to get financing for the St. Leo Campus,
Catholic Charities obtained funding from ten sources, to include the
VA-backed loan, various state-supported tax credits, and other creative
funding sources.
Needless to say, the St. Leo Campus has been faced with numerous
operational challenges that are typical of a provider servicing the
homeless population. What exacerbates the challenge is the rigidity of
the original VA loan program. Without flexibility in loan terms and
conditions, St. Leo Campus struggles to make ends meet, bringing into
question the sustainability of the project. To provide the necessary
services to homeless veterans, St. Leo Campus has relied on one-time
grants and donations which, in a difficult economy, are a highly
volatile source of revenue. Flexibility in the terms of its VA-loan, as
my bill would provide, would give St. Leo Campus and other homeless
providers a chance to weather some of these cyclical funding
challenges.
Recognizing the financing challenges many have in serving this unique
population, my bill provides VA with the authority to issue loans under
terms that are far more flexible than the original program. The
legislation tracks each of the recommendations made in a report to VA
regarding how the Multi-Family Transitional Housing Loan Program could
be improved.
Specifically, the legislation would give VA greater flexibility in
the types of loans it may offer and the conditions attached to
repayment, including payment deferral, interest only payments, and debt
forgiveness. It would give VA the authority to sell, lease, or operate
a multifamily transitional housing project in the event of default. It
would preempt any Federal, State, or local housing statute that limits
a project from offering preferential treatment to veterans. Lastly, it
would clarify that projects financed with a VA loan may include space
for job training programs, other types of residential units, or other
uses that the Secretary determines necessary for the sustainability of
the multifamily transitional housing projects.
Transitional housing developed using VA-issued loans under my bill
would still come with a requirement that a provider make available
supportive services to reduce the likelihood of veterans again becoming
homeless. These would include health care services; daily living
services; personal financial planning; transportation services; income
support services; fiduciary and representative payee services; legal
services; child care; housing counseling; and other services necessary
for maintaining independent living.
Finally, I again reiterate that this legislation calls for no new
appropriation. It relies exclusively on $48 million appropriated, (but
unspent), in 1999 to meet the administrative expenses and initial
lending capital VA will require. As homeless providers make payments to
extinguish any loan balance, VA will have the Opportunity to make
additional loans.
I am committed to doing all we can to end homelessness among
veterans. But I am also committed to doing it in a way that is not
duplicative and fully utilizes money the American people have already
put forward. I ask my colleagues for their support of my bill.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the text of the bill was ordered to be
printed in the Record, as follows:
S. 3377
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. CONVERSION OF MULTIFAMILY TRANSITIONAL HOUSING
LOAN PROGRAM TO LOAN ISSUANCE PROGRAM.
(a) Authority to Issue Loans.--
(1) In general.--Section 2051 of title 38, United States
Code, is amended--
(A) in subsection (a)--
(i) by striking ``The'' and inserting ``(1) The''; and
(ii) by adding at the end the following new paragraph:
``(2) The Secretary shall, utilizing funds available in the
Multifamily Transitional Housing Loan Program Revolving Fund
under section 2055 of this title, issue not less than five
loans that meet the requirements of this subchapter.'';
(B) in subsection (b)--
(i) in paragraph (1), by striking ``under subsection (a)''
and inserting ``under subsection (a)(1)'';
(ii) in paragraph (2), by striking ``under subsection (a)''
and inserting ``under subsection (a)(1)''; and
(iii) in paragraph (3), by inserting ``or issued'' after
``guaranteed'';
(C) in subsection (c), by inserting ``or issued'' after
``guaranteed''; and
(D) in subsection (g), by inserting ``or issued'' after
``guaranteed''.
(2) Authority to delegate approval authority.--Subsection
(c) of such section, as amended by paragraph (1)(C) of this
subsection, is amended--
(A) by striking ``A loan'' and inserting ``(1) A loan'';
and
(B) by adding at the end the following new paragraph:
``(2) The Secretary may delegate approval under paragraph
(1) to a State or local government entity.''.
(3) Sunset of authority to issue loan guarantees.--Such
section is further amended by adding at the end the following
new subsection:
``(h) The Secretary may not guarantee under subsection
(a)(1) any loan that is closed after the date of the
enactment of this subsection. The termination by this
subsection of the authority to guarantee loans under this
subsection shall not affect the validity of any loan
guaranteed under this subchapter before the date of the
enactment of this subsection and is in force on that date.''.
(4) Conforming amendments.--
(A) Section 2052(d) of such title is amended by inserting
``or issue'' after ``whether to guarantee''.
(B) Section 2053(a) of such title is amended by inserting
``or issued'' after ``is guaranteed''.
(C) Section 2054(a) of such title is amended--
(i) in the first sentenced, by inserting ``or issued''
after ``guaranteed''; and
(ii) in the last sentence, by inserting ``or loan'' after
``guarantee''.
(5) Clerical amendments.--
(A) The heading of subchapter VI of chapter 20 of such
title is amended by striking ``LOAN GUARANTEE FOR''.
(B) The table of sections at the beginning of such chapter
is amended by striking the item relating to subchapter VI and
inserting the following new item:
``subchapter vi--multifamily transitional housing''.
(b) Multifamily Transitional Housing Loan Program Revolving
Fund.--
(1) In general.--Subchapter VI of chapter 20 of such title
is amended by adding at the end the following new section:
``Sec. 2055. Multifamily Transitional Housing Loan Program
Revolving Fund
``(a) Establishment.--There is established in the Treasury
of the United States a revolving fund known as the
`Department of Veterans Affairs Multifamily Transitional
Housing Loan Program Revolving Fund' (in this section
referred to as the `Fund').
``(b) Elements.--There shall be deposited in the Fund the
following, which shall constitute the assets of the Fund:
``(1) Amounts paid into the Fund under any provision of law
or regulation established by the Secretary imposing fees on
persons or entities issued a loan under this subchapter.
``(2) All other amounts received by the Secretary incident
to operations relating to the issuance of loans under this
subchapter, including--
``(A) collections of principal and interest on loans issued
by the Secretary under this subchapter;
``(B) proceeds from the sale, rental, use, or other
disposition of property acquired under this subchapter; and
``(C) penalties collected pursuant to this subchapter.
``(3) Amounts appropriated or otherwise made available
before the date of the enactment of this section for purposes
of activities under this subchapter, including amounts
appropriated for such purposes under title I of the
Department of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act,
2000 (Public Law 106-74; 113 Stat. 1049).
``(c) Use of Funds.--The Fund shall be available to the
Secretary, without fiscal year limitation, for all operations
relating to the issuance of loans under this subchapter,
consistent with the Federal Credit Reform Act of 1990 (2
U.S.C. 661 et seq.).''.
(2) Clerical amendment.--The table of sections at the
beginning of chapter 20 of such title is amended by inserting
after the item relating to section 2054 the following new
item:
``2055. Multifamily Transitional Housing Loan Program Revolving
Fund.''.
(c) Clarification of Authority to Determine Terms and
Conditions of Loans.--Subsection (a)(6) of section 2052 of
such title is amended by inserting ``including with respect
to forbearance, deferral, and loan forgiveness,'' after
``determines are reasonable,''.
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(d) Clarification of Types of Spaces That May Be Included
in Covered Multifamily Transitional Housing Projects.--
Subsection (c)(1) of such section 2052 is amended by striking
``or job training programs'' and inserting ``job training
programs, other types of residential units, or other uses
that the Secretary considers necessary for the sustainability
of the project''.
(e) Loan Defaults.--Section 2053 of such title is amended
by adding at the end the following new subsection:
``(c) The Secretary may impose such penalties or require
such collateral as the Secretary considers necessary--
``(1) to discourage default on a loan issued under this
subchapter; or
``(2) to mitigate harm to the Department from default on a
loan issued under this subchapter.
``(d) The Secretary shall administer any property coming
under the jurisdiction of the Secretary by reason of default
on a loan issued or guaranteed under this subchapter in
accordance with regulations prescribed by the Secretary for
that purpose. Such administration of property may include
selling, renting, or otherwise disposing of property as the
Secretary considers appropriate.''.
(f) Preferential Treatment of Veterans.--
(1) In general.--Subchapter VI of chapter 20 of such title,
as amended by subsection (b), is further amended by adding at
the end the following new section:
``Sec. 2056. Preferential treatment of veterans
``No provision of Federal or State law may prohibit a
multifamily transitional housing project described in section
2052(b) of this title from offering preferential treatment to
veterans.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter, as amended by subsection (b), is
further amended by adding at the end the following new item:
``2056. Preferential treatment of veterans.''.
(g) Technical Corrections.--Section 2052 of such title is
amended--
(1) in subsection (b)(2), by striking ``counselling'' both
places it appears and inserting ``counseling''; and
(2) in subsection (d)(2), by striking ``, as assessed under
section 107 of Public Law 102-405''.
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