[House Report 118-189]
[From the U.S. Government Publishing Office]


118th Congress }                                               {   Report
                        HOUSE OF REPRESENTATIVES
 1st Session   }                                               {  118-189

======================================================================



 
               HOUSING OUR MILITARY VETERANS EFFECTIVELY
                              ACT OF 2023

                                _______
                                

 September 8, 2023.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Bost, from the Committee on Veterans' Affairs, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 3848]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Veterans' Affairs, to whom was referred 
the bill (H.R. 3848) to make certain improvements in the laws 
administered by the Secretary of Veterans Affairs relating to 
homelessness, and for other purposes, having considered the 
same, reports favorably thereon with an amendment and 
recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................     3
Background and Need for Legislation..............................     3
Hearings.........................................................     5
Subcommittee Consideration.......................................     6
Committee Consideration..........................................     6
Committee Votes..................................................     7
Committee Oversight Findings.....................................     7
Statement of General Performance Goals and Objectives............     7
Earmarks and Tax and Tariff Benefits.............................     7
Committee Cost Estimate..........................................     7
Budget Authority and Congressional Budget Office Estimate........     8
Federal Mandates Statement.......................................    12
Advisory Committee Statement.....................................    12
Applicability to Legislative Branch..............................    12
Statement on Duplication of Federal Programs.....................    12
Section-by-Section Analysis of the Legislation...................    13
Changes in Existing Law Made by the Bill as Reported.............    14

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Housing our Military Veterans 
Effectively Act of 2023'' or the ``HOME Act of 2023''.

SEC. 2. PER DIEM PAYMENTS PROVIDED BY THE SECRETARY OF VETERANS AFFAIRS 
                    FOR SERVICES FURNISHED TO HOMELESS VETERANS.

  Section 2012 of title 38, United States Code, is amended--
          (1) in subsection (a)--
                  (A) in paragraph (2)(B)--
                          (i) in clause (i)(II)(aa)(BB), by striking 
                        ``115 percent'' and inserting ``133 percent''; 
                        and
                          (ii) by adding at the end the following:
  ``(iii) During each of fiscal years 2024 through 2026, the Secretary 
may waive the maximum rate for per diem payments under clause 
(i)(II)(aa)(BB) or (ii) and, subject to the availability of 
appropriations, provide such payments at a rate that does not exceed 
200 percent of the rate authorized for State homes for domiciliary care 
under subsection (a)(1)(A) of section 1741 of this title, as the 
Secretary may increase from time to time under subsection (c) of that 
section if the Secretary notifies Congress of such waiver.
  ``(iv) The Secretary may not, pursuant to clause (iii), waive the 
maximum rate described in such clause for more than 50 percent of all 
grant recipients and eligible entities in a fiscal year.''; and
                  (B) by adding at the end the following new paragraph:
  ``(4) The Secretary may not provide more than 12,000 per diem 
payments under this section in a fiscal year.''; and
          (2) by adding at the end the following new subsection:
  ``(f) Reports Required.--Not later than 90 days after the date of the 
enactment of the HOME Act of 2023, and not less frequently than twice 
each year thereafter, the Secretary shall submit to the Committee on 
Veterans' Affairs of the Senate and the Committee on Veterans' Affairs 
of the House of Representatives a report on the rate for per diem 
payments under this section that includes, for each Veterans Integrated 
Service Network of the Department, the following data:
          ``(1) The average rate for such a payment.
          ``(2) A list of locations where the rate for such a payment 
        is within 10 percent of the maximum rate for such a payment 
        authorized under this section.
          ``(3) The average length of stay by a veteran participating 
        in a program described in section 2012(a) of this title.''.

SEC. 3. AUTHORIZATION FOR SECRETARY OF VETERANS AFFAIRS TO USE OF 
                    CERTAIN FUNDS FOR IMPROVED FLEXIBILITY IN 
                    ASSISTANCE TO HOMELESS VETERANS.

  (a) Use of Funds.--The Secretary of Veterans Affairs may use amounts 
appropriated or otherwise made available to the Department of Veterans 
Affairs to carry out section 2011, 2012, 2031, or 2061 of title 38, 
United States Code, to provide to a covered veteran, as the Secretary 
determines necessary--
          (1) food, shelter, clothing, blankets, and hygiene items 
        required for the safety and survival of the veteran;
          (2) transportation required to support the stability and 
        health of the veteran for appointments with service providers, 
        the conduct of housing searches, and the obtainment of food and 
        supplies; and
          (3) tablets, smartphones, disposable phones, and related 
        service plans required to support the stability and health of 
        the veteran through the maintenance of contact with service 
        providers, prospective landlords, and family members.
  (b) Homeless Veterans on Department of Veterans Affairs Land.--
          (1) In general.--The Secretary may collaborate, to the extent 
        practicable, with one or more organizations to manage the use 
        of land of the Department of Veterans Affairs for homeless 
        veterans for living and sleeping.
          (2) Forms of collaboration.--Collaboration under paragraph 
        (1) may include the provision by either the Secretary or the 
        head of the organization concerned of food services and 
        security for property, buildings, and other facilities owned or 
        controlled by the Department of Veterans Affairs.
  (c) Report Required.--Not later than six months after the date of the 
enactment of this Act, and every six months thereafter until the date 
specified in subsection (d), the Secretary shall submit to Congress a 
report that includes, with respect to the period covered by such 
report--
          (1) a statement, disaggregated by each medical center of the 
        Department of Veterans Affairs, of the amount of funds under 
        this section--
                  (A) each such medical center requested from the 
                Secretary; and
                  (B) to which the Secretary provided each such medical 
                center;
          (2) data, disaggregated by each such medical center, relating 
        to how each such medical center used amounts provided by the 
        Secretary under this section;
          (3) the number of covered veterans to which the Secretary 
        provided assistance under this section;
          (4) the total amount of assistance the Secretary provided to 
        covered veterans pursuant to subsection (a)(3) for 
        communications equipment, broken down by the type of equipment 
        provided;
          (5) the total amount of assistance the Secretary provided 
        covered veterans pursuant to subsection (a)(2) for ridesharing;
          (6) the number of covered veterans who received such 
        assistance; and
          (7) a description, for each rideshare used by a covered 
        veteran with such assistance, of the reasons such covered 
        veteran used such rideshare.
          (8) the number of covered veterans who lived or slept on 
        Department land;
          (9) the amount of funds used to make available Department 
        land for covered veterans to live and sleep;
          (10) the number of Department employees whose primary 
        responsibilities involved providing services for covered 
        veterans living or sleeping on Department land;
          (11) the average length of time a covered veteran lived or 
        slept on Department land, and
          (12) the period of time the Secretary expects Department land 
        will be made available for covered veterans to live and sleep.
  (d) Sunset.--The authority under this section shall terminate on 
September 30, 2024.
  (e) Definitions.--In this section, the term ``covered veteran'' 
means--
          (1) a homeless veteran; and
          (2) a veteran participating in the program carried out under 
        section 8(o)(19) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(o)(19)).

SEC. 4. MODIFICATION OF CERTAIN HOUSING LOAN FEES.

  The loan fee table in section 3729(b)(2) of title 38, United States 
Code, is amended by striking ``November 14, 2031'' each place it 
appears and inserting ``May 18, 2032''.

                          Purpose and Summary

    H.R. 3848, the ``Housing our Military Veterans Effectively 
Act of 2023'' was introduced by Rep. Lori Chavez-DeRemer of 
Oregon on June 6, 2023. The bill as amended would increase the 
rate for the U.S. Department of Veterans Affairs (VA) Grant and 
Per-Diem program. This is a program that veteran homeless 
providers to help set up and maintain transitional housing. The 
bill would also authorize the VA Homeless Program Office to 
provide certain services to homeless veterans until September 
30, 2024.
    Finally, the bill would also provide an offset for the cost 
of these program changes by extending current rates for VA home 
loan funding fees.

                  Background and Need for Legislation


Section 1: Short title

    This Act may be cited as the ``Housing our Military 
Veterans Effectively Act of 2023'', or ``HOME Act of 2023''.

Section 2: Per diem payments provided by the Secretary of Veterans 
        Affairs for services furnished to homeless veterans

    This section would increase the Grant and Per-Diem payments 
under section 2012 of title 38, U.S.C. from 115% to 133% of the 
State homes for domiciliary care rate. During the COVID-19 
Public Health Emergency, the Johnny Isakson and David P. Roe, 
M.D. Veterans Health Care and Benefits Improvement Act of 2020 
(P.L. 116-315) temporarily increased the Grant and Per-Diem 
rate up from 115% to 300% of the domiciliary care rate. 
Congress made this change to help reduce the spread of COVID-19 
by providing funding for providers to house homeless veterans 
in hotels and providing increased funding to address the needs 
of the providers during the emergency. However, on May 11, 
2023, the Public Health Emergency was finally ended, which also 
ended the temporary Grant and Per-Diem emergency authority. 
After the temporary rate increase authority ended, the GPD rate 
returned to 115%. Increasing the GPD rate from 115% to 133% 
would account for inflation between 2021 to 2023 and help 
providers address the increased operating costs over the last 
two years.
    During the Public Health Emergency, and after the rate 
returned to 115%, the Committee had heard from many 
transitional housing providers and VA about how the rate needed 
to be increased from 115% to a higher rate. Under this 
legislation, the waiver authority granted to the Secretary of 
Veterans Affairs would allow the Secretary to raise the GPD 
rate to 200% for up to 50% of transitional housing providers 
that can prove the need for an increased reimbursement rate. 
The Committee believes that raising the rate for up to 50% of 
providers would support the 47% of providers that still had a 
reimbursement rate of over 133% during the COVID-19 Public 
Health Emergency. Restricting the waiver authority from Fiscal 
Year 2024 to 2026 would allow the Committee to obtain data on 
the level of need and usage from transitional housing providers 
before determining if Congress should extend the authority. The 
Committee will closely monitor usage of this waiver, and should 
it appear the waiver is appropriately implemented and effective 
at serving veterans, the Committee may extend the waiver beyond 
the Fiscal Year 2026 end date that would be set by this 
legislation. Because the number of beds and per diem payments 
that VA has funded throughout the last decade has decreased, 
the Secretary may not provide more than 12,000 payments per 
fiscal year.
    Additionally, this section would establish increased 
reporting requirements on the GPD rate that the Committee 
believes is valuable for oversight of the program. Knowing the 
average rate for a payment based on Veterans Integrated Service 
Network, a list of locations where the rate is within 10% of 
the maximum rate, and the average length of stay would also 
help the Committee legislate further on the program if 
necessary.
    Finally, the Committee is concerned that linking the GPD 
rate to the State homes for domiciliary care rate is no longer 
adequately serving veterans, providers, or the Department. 
Further work is required by the Committee and the Department to 
identify a new, more effective payment rate for providers. The 
Committee plans additional oversight in this area to identify a 
rate that is a better reflection of the actual cost of 
transitional housing.

Section 3: Authorization for Secretary of Veterans Affairs to use of 
        certain funds for improved flexibility in assistance to 
        homeless veterans

    This section would authorize the Secretary of Veterans 
Affairs to use certain funds for improved flexibility in 
services provided to homeless veterans and veterans 
participating in the Department of Housing and Urban-VA 
Supportive Housing (HUD-VASH) program. Congress passed similar 
authorities in section 4201 of the Johnny Isakson and David P. 
Roe, M.D. Veterans Health Care and Benefits Improvement Act of 
2020 (P.L. 116-315), but the authorities expired on May 11, 
2023, when the Biden Administration ended the Public Health 
Emergency. During the Public Health Emergency, VA was able to 
use these authorities to aid 32,799 homeless veterans in Fiscal 
Year 2022 with supplies to help their health and survival. VA 
spent $6,816,313 on housing materials. VA Homeless Programs 
have also served 41,532 unique veterans in the ride share 
program while completing 416,234 rides at an expense of 
$13,611,469. The Committee believes that this was an important 
program to transport homeless veterans to medical care and 
other services. Committee also believes that by authorizing 
this program through Fiscal Year 2024 would allow the Committee 
the opportunity to review the program to determine if it is 
truly needed now that the Public Health Emergency has ended. To 
date, these provisions have been extremely effective in 
assisting homeless veterans and the Department to serve these 
veterans.
    This section would require the Secretary of Veterans 
Affairs to report every six months on the usage and spending of 
the funds authorized under this provision. It is Congress's 
intent to grant the Department wide authority to use these 
provisions for the sole purpose of reducing veteran 
homelessness, however previously, VA had been unable to provide 
the Committee with details on spending of this authority until 
the Committee submitted a formal request for information. 
Earlier this year, the Committee found that VA has also been 
unable to account for the proper spending allocation of 17% of 
the COVID-19 funding provided during the Public Health 
Emergency, which included this temporary authority. These 
additional reporting requirements would aid the Committee's 
oversight efforts on these authorities. Based on the reporting 
requirements in the legislation, the Committee will evaluate 
the usage of the authorities until the end of Fiscal Year 2024, 
and consider a further extension based on the performance of 
the Department.

Section 4: Department of Veterans Affairs housing loan fees

    Currently, veterans who take advantage of the VA Home Loan 
Program pay a small fee that is included in their monthly 
mortgage payment. This section would cover the costs of the 
other section of this bill by extending the current rates for 
VA home loan funding fees by a few months to May 18, 2032. 
Extending the funding fee increases a veteran's monthly cost by 
about $5 on top of the monthly mortgage. Disabled veterans do 
not pay the funding fee and would not be affected by this 
extension of the home loan fees. The Committee believes this 
short-term extension of current funding fee rates is a 
reasonable way to cover the costs associated with the other 
sections of this bill.

                                Hearings

    On June 14, 2023, the Subcommittee on Economic Opportunity 
held a legislative hearing on H.R. 3848 and other bills that 
were pending before the subcommittee.
    The following witnesses testified:
          Mr. Joseph Garcia, Executive Director of Education 
        Service, U.S. Department of Veterans Affairs; Ms. 
        Melissa Cohen, Deputy Executive Director of Outreach, 
        Transition, and Economic Development, U.S. Department 
        of Veterans Affairs; Ms. Monica Diaz, Executive 
        Director, Office of Homeless Programs, U.S. Department 
        of Veterans Affairs; Mr. James Rodriguez, Assistant 
        Secretary for Veterans' Employment and Training 
        Service, U.S. Department of Labor; Mr. Paul Marone, 
        USERRA Policy Chief for Veterans' Employment and 
        Training Service, U.S. Department of Labor; Mr. Patrick 
        Murray, Director, National Legislative Service, 
        Veterans of Foreign Wars of the United States; Mr. 
        Ricardo Gomez, Employment and Education Policy 
        Associate, The American Legion; Mr. Matthew 
        Schwartzman, Director, Legislation and Military Policy, 
        Reserve Organization of America; Ms. Meredith M. Smith, 
        Government Relations Deputy Director, National Military 
        Family Association, and Mr. Kevin Hollinger, 
        Legislative Director, Enlisted Association of the 
        National Guard of the United States.
    The following individuals and organizations submitted 
statements for the record:
          Helping Veterans and Families of Indiana, The 
        American Legion Department of California, Disabled 
        American Veterans Department of California, Veterans 
        Education Success, Nation's Finest, New England Center 
        and Home for Veterans, Representative Morgan McGarvey 
        of Kentucky, Volunteers of America of Los Angeles, U.S. 
        VETS Long Beach, Family & Community Services Inc., U.S. 
        VETS Prescott, U.S. VETS Inglewood, Veterans 
        Integration Centers, U.S. VETS Inland Empire, Operation 
        Dignity, and the Aston Wilkes Society.

                       Subcommittee Consideration

    On July 19, 2023, the Subcommittee on Economic Opportunity 
held a markup on the legislation included in the text of this 
bill.
          An amendment in the nature of a substitute to H.R. 
        3848 offered by Subcommittee Chair Van Orden was 
        adopted by voice vote and the bill was ordered 
        favorably forwarded to the full Committee on Veterans 
        Affairs. The amendment in the nature of a substitute 
        removed the West Los Angeles section (Section 3 as 
        introduced), reduced the number of years the GPD rate 
        would be increased to five years, reduced the number of 
        years the waiver authority would exist to five years, 
        and increased the percentage of providers that could 
        receive the 200% waiver from 10% to 20%. The amendment 
        in the nature of a substitute would also eliminate the 
        reduction in Transition in Place rate from 150% to 
        140%. In the new Section 3, the amendment in the nature 
        of a substitute made wording changes that would make 
        clear what the Secretary could do with authorized 
        funds, and increased reporting requirements for use of 
        the funds.

                        Committee Consideration

    On July 26, 2023, the full Committee met in open markup 
session, a quorum being present, and ordered H.R. 3848, as 
amended, be reported favorably to the House of Representatives 
by voice vote. During consideration of the bill, the following 
amendments were considered:
          An amendment in the nature of a substitute offered by 
        Chairman Bost that included the text of H.R. 3848, 
        adopted by the Subcommittee on Economic Opportunity, 
        that would increase the percentage of providers 
        available to receive waivers from 20% up to 50%. The 
        amendment in the nature of a substitute would remove 
        the future cost of living adjustment to the GPD rate, 
        would reduce the number of years for the 200% waivers 
        from five to three years, and would increase the number 
        of beds VA is able to fund. The amendment would also 
        extend current rates for VA home loan funding fees to 
        pay for programs in the bill. The amendment in the 
        nature of substitute, as amended, was approved by voice 
        vote.
    A motion by Ranking Member Takano to report H.R. 3848, as 
amended, favorably to the House of Representatives was agreed 
to by voice vote.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, no recorded votes were taken on 
amendments or in connection with ordering H.R. 3848, as 
amended, reported to the House.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the descriptive portions of 
this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives of H.R. 3848, as amended, are to provide 
increased housing funding and support for homeless veterans 
across the United States.

                  Earmarks and Tax and Tariff Benefits

    H.R. 3848, as amended, does not contain any Congressional 
earmarks, limited tax benefits, or limited tariff benefits as 
defined in clause 9 of rule XXI of the Rules of the House of 
Representatives.

                        Committee Cost Estimate

    The Committee adopts as its own the Congressional Budget 
Office cost estimate on this measure.

     Budget Authority and Congressional Budget Office Cost Estimate




    The bill would
           Increase the fees that the Department of 
        Veterans Affairs (VA) charges borrowers for home loan 
        guarantees
           Increase the maximum rates that VA pays to 
        entities that provide housing and services to homeless 
        veterans
           Authorize VA to provide various goods and 
        services to veterans who are homeless or using housing 
        vouchers
    Estimated budgetary effects would mainly stem from
           Increasing fees charged by VA for home loan 
        guarantees
           Paying larger grant amounts to entities that 
        provide housing and services to homeless veterans
           Providing goods and services to veterans who 
        are homeless or using housing vouchers
    Bill summary: H.R. 3848 would increase the fees that the 
Department of Veterans Affairs (VA) charges borrowers for home 
loan guarantees in 2032. The bill also would make changes to VA 
programs that provide housing and other assistance to veterans 
experiencing homelessness.
    Estimated federal cost: The estimated budgetary effects of 
H.R. 3848 are shown in Table 1. The bill would increase 
spending subject to appropriation by $304 million and decrease 
net direct spending by $306 million over the 2023-2033 period. 
The costs of the legislation fall within budget function 700 
(veterans benefits and services).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 3848
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, millions of dollars--
                                                   -----------------------------------------------------------------------------------------------------
                                                     2023   2024   2025   2026   2027   2028   2029   2030   2031    2032     2033  2023-2028  2023-2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                     Increases in Spending Subject to Appropriations
 
Estimated Authorization...........................      0     76     49     49     20     20     20     20     19        19     18      214          310
Estimated Outlays.................................      0     67     50     48     23     20     20     20     19        19     18      208          304
 
                                                      Increases or Decreases (-) in Direct Spending
 
Estimated Budget Authority........................      0     24     18     20      9     10     11     12     13      -436     16       81         -303
Estimated Outlays.................................      0     21     18     19     10     10     11     12     13      -436     16       78         -306
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
3848 will be enacted at the beginning of fiscal year 2024 and 
that provisions will take effect upon enactment or on the dates 
specified by the bill. CBO also estimates that outlays will 
follow historical spending patterns for affected programs.
    Provisions that affect spending subject to appropriation 
and direct spending: H.R. 3848 would make changes to programs 
administered by VA that provide housing and other assistance to 
veterans experiencing homelessness. Implementing those changes 
would increase spending subject to appropriation by $304 
million and direct spending by $144 million over the 2023-2033 
period, CBO estimates.
    Some of the homeless veterans affected by the changes under 
the bill would be veterans who have been exposed to 
environmental hazards; thus, CBO expects that some of the costs 
of implementing the bill would be paid from the Toxic Exposures 
Fund (TEF) established by Public Law 117-168, the Honoring our 
PACT Act. The TEF is a mandatory appropriation that VA uses to 
pay for health care, disability claims processing, medical 
research, and IT modernization that benefit veterans who were 
exposed to environmental hazards.
    Additional spending from the TEF occurs if legislation 
increases the costs of similar activities that benefit veterans 
with such exposure. Thus, in addition to increasing spending 
subject to appropriation, the bill would increase amounts paid 
from the TEF, which are classified as direct spending.
    In CBO's projections, the percentage of costs paid by the 
TEF is estimated to grow over time based on the amount of 
formerly discretionary appropriations that CBO estimated will 
be provided through the mandatory appropriation as specified in 
the Honoring our PACT Act.\1\ For purposes of this estimate, 
those growing percentages are applied to the estimated increase 
in costs under H.R. 3848. Thus, CBO estimates that 24 percent 
of the costs of the changes to homeless veteran programs would 
be paid from the TEF in 2024, increasing to 47 percent in 2033.
---------------------------------------------------------------------------
    \1\For additional information about spending from the TEF, see 
Congressional Budget Office, Statement for the Record Regarding How CBO 
Would Estimate the Effects of Future Authorizing Legislation on 
Spending From the Toxic Exposures Fund (December 2022), www.cbo.gov/
publication/58843.
---------------------------------------------------------------------------
    Grants and Per Diem. VA pays a daily rate through its Grant 
and Per Diem Program to public and nonprofit entities that 
provide housing and supportive services to homeless veterans. 
Two types of grants under the program are per diem only (PDO), 
which reimburses recipients for the cost of care provided to 
veterans in transitional housing, and transition-in-place 
(TIP), through which veterans remain in the housing after 
receiving such care. H.R. 3848 would increase the maximum 
amounts allowed for those grant payments.
    Under current law, the maximum amounts of payments under 
the program are based on the rate that VA pays to state-owned 
facilities that provide domiciliary care for eligible veterans 
(that rate is $55 per veteran in 2023 and is adjusted annually 
for inflation). Those maximums currently are 115 percent ($64 
in 2023) and 150 percent ($83 in 2023) of such rate for PDO and 
TIP grants, respectively. Section 2 of the bill would authorize 
VA to pay up to 133 percent of the domiciliary care rate to 
recipients of PDO grants. The provision also would allow VA to 
pay up to 200 percent of the domiciliary care rate for both PDO 
and TIP grants to no more than half of the grant recipients 
during fiscal years 2024 through 2026. (After 2026 rates for 
PDO grants would revert to 133 percent and TIP grants would 
revert to 150 percent for all grant recipients.)
    CBO estimates that under current law, VA will award about 
$267 million for PDO and TIP grants in 2024 and that grant 
amounts will increase annually with inflation. Using 
information on past grant payments, CBO estimates that, under 
provisions of H.R. 3848, the overall amounts paid for those 
grants would increase by 24 percent during the 2024-2026 period 
and by 10 percent for each year thereafter. That increase in 
costs would total $414 million over the 2023-2033 period. Two-
thirds of that amount, or $278 million, would be categorized as 
spending subject to appropriation; $136 million would be direct 
spending.
    Homeless Assistance. Section 3 of the bill would authorize 
VA to provide food, clothing, bedding, hygiene items, shelter, 
transportation services, and communication devices and services 
to veterans who are homeless or using rental vouchers provided 
by the Department of Housing and Urban Development. That 
authority would expire at the end of fiscal year 2024. Similar 
authority was temporarily available during the public health 
emergency declared as a result of the novel coronavirus 
pandemic. On the basis of the department's costs to provide 
those items and services during that public health emergency, 
CBO estimates that temporarily renewing the authority would 
increase spending subject to appropriation by $26 million and 
direct spending by $8 million, over the 2023-2033 period.
    Spending subject to appropriation: The discussion above in 
the section ``Provisions That Affect Spending Subject to 
Appropriation and Direct Spending'' describe the changes to VA 
homeless veteran programs that would increase spending subject 
to appropriation under H.R. 3848, totaling $304 million over 
the 2023-2033 period (see Table 2).

                                   TABLE 2.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 3848
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                     By fiscal year, millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2023   2024   2025   2026   2027   2028   2029   2030   2031   2032   2033  2023-2028  2023-2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
Grants and Per Diem:
  Estimated Authorization............................      0     49     49     49     20     20     20     20     19     19     18       187        283
  Estimated Outlays..................................      0     43     48     48     23     20     20     20     19     19     18       182        278
Assistance Flexibility:
  Estimated Authorization............................      0     27      0      0      0      0      0      0      0      0      0        27         27
  Estimated Outlays..................................      0     24      2      0      0      0      0      0      0      0      0        26         26
Total Changes:
  Estimated Authorization............................      0     76     49     49     20     20     20     20     19     19     18       214        310
  Estimated Outlays..................................      0     67     50     48     23     20     20     20     19     19     18       208        304
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Direct Spending: In addition to making changes to homeless 
veteran programs administered by VA as described above in the 
section ``Provisions That Affect Spending Subject to 
Appropriation and Direct Spending'', H.R. 3848 would increase 
fees paid for VA home loan guarantees. CBO estimates that the 
changes to the homeless veterans programs would increase direct 
spending from the Toxic Exposures Fund. The increased fees 
would be reflected on the budget as negative outlays. In total, 
enacting the bill would decrease net direct spending by $306 
million over the 2023-2033 period (see Table 3).
    Loan Fees: VA provides guarantees to lenders for eligible 
borrowers to obtain better loan terms--such as lower interest 
rates or smaller down payments--when purchasing, constructing, 
improving, or refinancing a home. VA typically pays lenders up 
to 25 percent of the outstanding mortgage balance if a 
borrower's home is foreclosed upon. Those payments, net of fees 
paid by borrowers and recoveries by lenders, constitute the 
subsidy cost for the loan guarantees.\2\
---------------------------------------------------------------------------
    \2\Under the Federal Credit Reform Act of 1990, the subsidy cost of 
a loan guarantee is the net present value of estimated payments by the 
government to cover defaults and delinquencies, interest subsidies, or 
other expenses offset by any payments to the government, including 
origination or other fees, penalties, and recoveries on defaulted 
loans. Such subsidy costs are calculated by discounting those expected 
cash flows using the rate on Treasury securities of comparable 
maturity. The resulting estimated subsidy costs are recorded in the 
budget when the loans are disbursed or modified. A positive subsidy 
indicates that the loan results in net outlays from the Treasury; a 
negative subsidy indicates that the loan results in net receipts to the 
Treasury.
---------------------------------------------------------------------------
    Under current law, most of the fees that borrowers pay to 
VA for loans guaranteed on or after November 14, 2031, will 
drop from a weighted average of about 2.4 percent of the loan 
amount to about 1.2 percent. Section 4 would extend the higher 
rates through May 18, 2032. On the basis of loan data provided 
by VA, CBO estimates that extending the higher rates for those 
fees would decrease direct spending by $450 million over the 
2023-2033 period.

                                             TABLE 3.--ESTIMATED CHANGES IN DIRECT SPENDING UNDER H.R. 3848
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                       By fiscal year, millions of dollars--
                                                          ----------------------------------------------------------------------------------------------
                                                                                                                                          2023-   2023-
                                                            2023   2024   2025   2026   2027   2028   2029   2030   2031    2032    2033   2028    2033
--------------------------------------------------------------------------------------------------------------------------------------------------------
Loan Fees:
  Estimated Budget Authority.............................      0      0      0      0      0      0      0      0      0     -450      0      0     -450
  Estimated Outlays......................................      0      0      0      0      0      0      0      0      0     -450      0      0     -450
Grants and Per Diem:
  Estimated Budget Authority.............................      0     16     18     20      9     10     11     12     13       14     16     73      139
  Estimated Outlays......................................      0     14     17     19     10     10     11     12     13       14     16     70      136
Homeless Assistance:
  Estimated Budget Authority.............................      0      8      0      0      0      0      0      0      0        0      0      8        8
  Estimated Outlays......................................      0      7      1      0      0      0      0      0      0        0      0      8        8
Total Changes:
  Estimated Budget Authority.............................      0     24     18     20      9     10     11     12     13     -436     16     81     -303
  Estimated Outlays......................................      0     21     18     19     10     10     11     12     13     -436     16     78     -306
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. The net changes in outlays that are subject to those 
pay-as-you-go procedures are shown in Table 3.
    Increase in long-term net direct spending and deficits: CBO 
estimates that enacting H.R. 3848 would not increase net direct 
spending by more than $2.5 billion in any of the four 
consecutive 10-year periods beginning in 2034.
    CBO estimates that enacting H.R. 3848 would not increase 
on-budget deficits by more than $5 billion in any of the four 
consecutive 10-year periods beginning in 2034.
    Mandates: None.
    Estimate prepared by: Federal Costs: Paul B.A. Holland; 
Mandates: Grace Watson.
    Estimate reviewed by: David Newman, Chief, Defense, 
International Affairs, and Veterans' Affairs Cost Estimates 
Unit; Christina Hawley Anthony, Deputy Director of Budget 
Analysis.
    Estimate approved by: Phillip L. Swagel, Director, 
Congressional Budget Office.

                       Federal Mandates Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandate Reform Act, P.L. 104-4) is inapplicable to H.R. 3848, 
as amended.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act would be created by H.R. 
3848, as amended.

                  Applicability to Legislative Branch

    The Committee finds that H.R. 3848, as amended, does not 
relate to the terms and conditions of employment or access to 
public services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

              Statement on Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 3848, as amended, would establish or reauthorize a 
program of the Federal Government known to be duplicative of 
another Federal program, a program that was included in any 
report from the Government Accountability Office to Congress 
pursuant to section 21 of Public Law 111-139, or a program 
related to a program identified in the most recent Catalog of 
Federal Domestic Assistance.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 would establish the short title of the bill as 
``Housing our Military Veterans Effectively Act of 2023'' or 
the ``HOME Act of 2023.''

Section 2. Per diem payments provided by the Secretary of Veterans 
        Affairs for services furnished to homeless veterans

    This section would amend section 2012 of title 38, U.S.C. 
and would increase the GPD rate from 115% to 133% of the State 
homes for domiciliary care under subsection (a)(1)(A) of 
section 1741 of title 38, U.S.C. This section would also add an 
authority and would allow the Secretary to waive the maximum 
rate for per diem payments under clause (i)(II)(aa)(BB) or (ii) 
up to 200% of the GPD rate for up to 50% of transitional 
housing providers. Under this section, the Secretary would not 
be authorized to provide more than 12,000 per diem payments in 
a fiscal year. The 200% waiver authority would expire at the 
end of Fiscal Year 2026.
    This section would require the Secretary to submit a report 
to the Committees on Veterans' Affairs of the House and Senate 
90 days after the enactment of the legislation, and at least 
twice a year after on the rate for per diem payments under this 
section. Additional reporting requirements would include the 
average rate for each payment, a list of locations where the 
rate is within 10% of the maximum rate authorized under this 
bill, and the average length of stay by a veteran participating 
in the GPD program.

Section 3. Authorization for Secretary of Veterans Affairs to use of 
        certain funds for improved flexibility in assistance to 
        homeless veterans

    This section would allow the Secretary of Veterans Affairs 
to use funds appropriated to carry out section 2011, 2012, 
2031, or 2061 of title 38, U.S.C. to provide assistance to a 
covered veteran. This would include food shelter, clothing, 
blankets, hygiene items, electronic devices, and transportation 
through rideshares to help the safety and survival of the 
veteran.
    This section would also allow the Secretary to collaborate 
with organizations to manage the VA land for homeless veterans 
for living and sleeping. Finally, this section would require 
the Secretary of Veterans Affairs to submit to Congress every 
six months a report on the use of funds and the housing of 
homeless veterans available under this section. The authority 
under this section would expire September 30, 2024.

Section 4. Department of Veterans Affairs housing loan fees

    This section would provide funding for these programs 
included in the bill by extending current rates for VA home 
loan funding fees as established in section 3729 of title 38, 
U.S.C. from November 14, 2031, to May 18, 2032.

         Changes in Existing Law Made by the Bill, as Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, existing law in which no change 
is proposed is shown in roman):

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 38, UNITED STATES CODE




           *       *       *       *       *       *       *
PART II--GENERAL BENEFITS

           *       *       *       *       *       *       *


CHAPTER 20--BENEFITS FOR HOMELESS VETERANS

           *       *       *       *       *       *       *



SUBCHAPTER II--COMPREHENSIVE SERVICE PROGRAMS

           *       *       *       *       *       *       *



Sec. 2012. Per diem payments

  (a) Per Diem Payments for Furnishing Services to Homeless 
Veterans.--(1) Subject to the availability of appropriations 
provided for such purpose, the Secretary, pursuant to such 
criteria as the Secretary shall prescribe, shall provide to a 
recipient of a grant under section 2011 of this title (or an 
entity eligible to receive a grant under that section which 
after November 10, 1992, establishes a program that the 
Secretary determines carries out the purposes described in that 
section) per diem payments for services furnished to any 
homeless veteran--
          (A) whom the Secretary has referred to the grant 
        recipient (or entity eligible for such a grant); or
          (B) for whom the Secretary has authorized the 
        provision of services.
  (2)(A)(i) Except as otherwise provided in subparagraph (B), 
the rate for such per diem payments shall be the daily cost of 
care estimated by the grant recipient or eligible entity 
adjusted by the Secretary under clause (ii).
  (ii)(I) The Secretary shall adjust the rate estimated by the 
grant recipient or eligible entity under clause (i) to exclude 
other sources of income described in subclause (III) that the 
grant recipient or eligible entity certifies to be correct.
  (II) Each grant recipient or eligible entity shall provide to 
the Secretary such information with respect to other sources of 
income as the Secretary may require to make the adjustment 
under subclause (I).
  (III) The other sources of income referred to in subclauses 
(I) and (II) are payments to the grant recipient or eligible 
entity for furnishing services to homeless veterans under 
programs other than under this subchapter, including payments 
and grants from other departments and agencies of the United 
States, from departments or agencies of State or local 
government, and from private entities or organizations.
  (iii) For purposes of calculating the rate for per diem 
payments under clause (i), in the case of a homeless veteran 
who has care of a minor dependent while receiving services from 
the grant recipient or eligible entity, the daily cost of care 
of the homeless veteran shall be the sum of the daily cost of 
care of the homeless veteran determined under clause (i) plus, 
for each such minor dependent, an amount that equals 50 percent 
of such daily cost of care.
  (B)(i)(I) Except as provided in clause (ii), and subject to 
the availability of appropriations, the Secretary may adjust 
the rate for per diem payments under this paragraph, as the 
Secretary considers appropriate.
  (II) Any adjustment made under this clause--
          (aa) may not result in a rate that--
                  (AA) is lower than the rate in effect under 
                this paragraph as in effect immediately 
                preceding the date of the enactment of the Navy 
                SEAL Bill Mulder Act of 2020; or
                  (BB) exceeds the rate that is [115 percent] 
                133 percent of the rate authorized for State 
                homes for domiciliary care under subsection 
                (a)(1)(A) of section 1741 of this title, as the 
                Secretary may increase from time to time under 
                subsection (c) of that section; and
          (bb) may be determined on the basis of locality.
  (ii) In the case of services furnished to a homeless veteran 
who is placed in housing that will become permanent housing for 
the veteran upon termination of the furnishing of such services 
to such veteran, the maximum rate of per diem authorized under 
this section is 150 percent of the rate authorized for State 
homes for domiciliary care under subsection (a)(1)(A) of 
section 1741 of this title, as the Secretary may increase from 
time to time under subsection (c) of that section.
  (iii) During each of fiscal years 2024 through 2026, the 
Secretary may waive the maximum rate for per diem payments 
under clause (i)(II)(aa)(BB) or (ii) and, subject to the 
availability of appropriations, provide such payments at a rate 
that does not exceed 200 percent of the rate authorized for 
State homes for domiciliary care under subsection (a)(1)(A) of 
section 1741 of this title, as the Secretary may increase from 
time to time under subsection (c) of that section if the 
Secretary notifies Congress of such waiver.
  (iv) The Secretary may not, pursuant to clause (iii), waive 
the maximum rate described in such clause for more than 50 
percent of all grant recipients and eligible entities in a 
fiscal year.
  (3) In a case in which the Secretary has authorized the 
provision of services, per diem payments under paragraph (1) 
may be paid retroactively for services provided not more than 
three days before the authorization was provided.
  (4) The Secretary may not provide more than 12,000 per diem 
payments under this section in a fiscal year.
  (b) Inspections.--The Secretary may inspect any facility of a 
grant recipient or entity eligible for payments under 
subsection (a) at such times as the Secretary considers 
necessary. No per diem payment may be provided to a grant 
recipient or eligible entity under this section unless the 
facilities of the grant recipient or eligible entity meet such 
standards as the Secretary shall prescribe.
  (c) Life Safety Code.--(1) Except as provided in paragraph 
(2), a per diem payment may not be provided under this section 
to a grant recipient or eligible entity unless the facilities 
of the grant recipient or eligible entity, as the case may be, 
meet applicable fire and safety requirements under the Life 
Safety Code of the National Fire Protection Association or such 
other comparable fire and safety requirements as the Secretary 
may specify.
  (2) During the five-year period beginning on the date of the 
enactment of this section, paragraph (1) shall not apply to an 
entity that received a grant under section 3 of the Homeless 
Veterans Comprehensive Service Programs Act of 1992 (Public Law 
102-590; 38 U.S.C. 7721 note) before that date if the entity 
meets fire and safety requirements established by the 
Secretary.
  (3) From amounts available for purposes of this section, not 
less than $5,000,000 shall be used only for grants to assist 
entities covered by paragraph (2) in meeting the Life Safety 
Code of the National Fire Protection Association or such other 
comparable fire and safety requirements as the Secretary may 
specify.
  (d) Per Diem Payments to Nonconforming Entities.--(1) The 
Secretary may make funds available for per diem payments under 
this section to the following grant recipients or eligible 
entities:
          (A) Grant recipients or eligible entities that--
                  (i) meet each of the transitional and 
                supportive services criteria prescribed by the 
                Secretary pursuant to subsection (a)(1); and
                  (ii) furnish services to homeless 
                individuals, of which less than 75 percent are 
                veterans.
          (B) Grant recipients or eligible entities that--
                  (i) meet at least one, but not all, of the 
                transitional and supportive services criteria 
                prescribed by the Secretary pursuant to 
                subsection (a)(1); and
                  (ii) furnish services to homeless 
                individuals, of which not less than 75 percent 
                are veterans.
          (C) Grant recipients or eligible entities that--
                  (i) meet at least one, but not all, of the 
                transitional and supportive services criteria 
                prescribed by the Secretary pursuant to 
                subsection (a)(1); and
                  (ii) furnish services to homeless 
                individuals, of which less than 75 percent are 
                veterans.
  (2) Notwithstanding subsection (a)(2), in providing per diem 
payments under this subsection, the Secretary shall determine 
the rate of such per diem payments in accordance with the 
following order of priority:
          (A) Grant recipients or eligible entities described 
        by paragraph (1)(A).
          (B) Grant recipients or eligible entities described 
        by paragraph (1)(B).
          (C) Grant recipients or eligible entities described 
        by paragraph (1)(C).
  (3) For purposes of this subsection, an eligible entity is a 
nonprofit entity and may be an entity that is ineligible to 
receive a grant under section 2011 of this title, but whom the 
Secretary determines carries out the purposes described in that 
section.
  (e) Reimbursement of Entities for Certain Fees.--The 
Secretary may reimburse a recipient of a grant under section 
2011, 2013, or 2061 of this title or a recipient of per diem 
payments under this section for fees charged to that grant or 
per diem payment recipient for the use of the homeless 
management information system described in section 402(f) of 
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11360a(f))--
          (1) in amounts the Secretary determines to be 
        reasonable; and
          (2) if the Secretary determines that the grant or per 
        diem payment recipient is unable to obtain information 
        contained in such system through other means and at no 
        cost to the grant or per diem payment recipient.
  (f) Reports Required.--Not later than 90 days after the date 
of the enactment of the HOME Act of 2023, and not less 
frequently than twice each year thereafter, the Secretary shall 
submit to the Committee on Veterans' Affairs of the Senate and 
the Committee on Veterans' Affairs of the House of 
Representatives a report on the rate for per diem payments 
under this section that includes, for each Veterans Integrated 
Service Network of the Department, the following data:
          (1) The average rate for such a payment.
          (2) A list of locations where the rate for such a 
        payment is within 10 percent of the maximum rate for 
        such a payment authorized under this section.
          (3) The average length of stay by a veteran 
        participating in a program described in section 2012(a) 
        of this title.

           *       *       *       *       *       *       *


PART III--READJUSTMENT AND RELATED BENEFITS

           *       *       *       *       *       *       *


CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS

           *       *       *       *       *       *       *



SUBCHAPTER III--ADMINISTRATIVE PROVISIONS

           *       *       *       *       *       *       *



Sec. 3729. Loan fee

  (a) Requirement of Fee.--(1) Except as provided in subsection 
(c), a fee shall be collected from each person obtaining a 
housing loan guaranteed, insured, or made under this chapter, 
and each person assuming a loan to which section 3714 of this 
title applies. No such loan may be guaranteed, insured, made, 
or assumed until the fee payable under this section has been 
remitted to the Secretary.
  (2) The loan fee table referred to in paragraph (1) is as 
follows:


 
----------------------------------------------------------------------------------------------------------------
             Type of loan                Active duty  veteran          Reservist              Other obligor
----------------------------------------------------------------------------------------------------------------
(A)(i) Initial loan described in       2.15                     2.40                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 October 1, 2004, and before January
 1, 2020).
(A)(ii) Initial loan described in      2.30                     2.30                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 January 1, 2020, and before April 7,
 2023).
(A)(iii) Initial loan described in     2.15                     2.15                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 April 7, 2023, and before [November
 14, 2031] May 18, 2032 ).
(A)(iv) Initial loan described in      1.40                     1.40                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other initial loan described in
 section 3710(a) other than with 5-
 down or 10-down (closed on or after
 [November 14, 2031] May 18, 2032 ).
(B)(i) Subsequent loan described in    3.30                     3.30                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after October 1, 2004, and before
 January 1, 2020).
(B)(ii) Subsequent loan described in   3.60                     3.60                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(B)(iii) Subsequent loan described in  3.30                     3.30                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after April 7, 2023, and before
 [November 14, 2031] May 18, 2032 ).
(B)(iv) Subsequent loan described in   1.25                     1.25                     NA
 section 3710(a) to purchase or
 construct a dwelling with 0-down, or
 any other subsequent loan described
 in section 3710(a) (closed on or
 after [November 14, 2031] May 18,
 2032 ).
(C)(i) Loan described in section       1.50                     1.75                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed before
 January 1, 2020).
(C)(ii) Loan described in section      1.65                     1.65                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(C)(iii) Loan described in section     1.50                     1.50                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after April 7, 2023, and before
 [November 14, 2031] May 18, 2032 ).
(C)(iv) Loan described in section      0.75                     0.75                     NA
 3710(a) to purchase or construct a
 dwelling with 5-down (closed on or
 after [November 14, 2031] May 18,
 2032 ).
(D)(i) Loan described in section       1.25                     1.50                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed before
 January 1, 2020).
(D)(ii) Loan described in section      1.40                     1.40                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after January 1, 2020, and before
 April 7, 2023).
(D)(iii) Loan described in section     1.25                     1.25                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after April 7, 2023, and before
 [November 14, 2031] May 18, 2032 ).
(D)(iv) Loan described in section      0.50                     0.50                     NA
 3710(a) to purchase or construct a
 dwelling with 10-down (closed on or
 after [November 14, 2031] May 18,
 2032 ).
(E) Interest rate reduction            0.50                     0.50                     NA
 refinancing loan.
(F) Direct loan under section 3711...  1.00                     1.00                     NA
(G) Manufactured home loan under       1.00                     1.00                     NA
 section 3712 (other than an interest
 rate reduction refinancing loan).
(H) Loan to Native American veteran    1.25                     1.25                     NA
 under section 3762 (other than an
 interest rate reduction refinancing
 loan).
(I) Loan assumption under section      0.50                     0.50                     0.50
 3714.
(J) Loan under section 3733(a).......  2.25                     2.25                     2.25.
----------------------------------------------------------------------------------------------------------------

  (b) Determination of Fee.--(1) The amount of the fee shall be 
determined from the loan fee table in paragraph (2). The fee is 
expressed as a percentage of the total amount of the loan 
guaranteed, insured, or made, or, in the case of a loan 
assumption, the unpaid principal balance of the loan on the 
date of the transfer of the property.
  (2) The loan fee table referred to in paragraph (1) is as 
follows:
  (3) Any reference to a section in the ``Type of loan'' column 
in the loan fee table in paragraph (2) refers to a section of 
this title.
  (4) For the purposes of paragraph (2):
          (A) The term ``active duty veteran'' means any 
        veteran eligible for the benefits of this chapter other 
        than a Reservist.
          (B) The term ``Reservist'' means a veteran described 
        in section 3701(b)(5)(A) of this title who is eligible 
        under section 3702(a)(2)(E) of this title.
          (C) The term ``other obligor'' means a person who is 
        not a veteran, as defined in section 101 of this title 
        or other provision of this chapter.
          (D)(i) The term ``initial loan'' means a loan to a 
        veteran guaranteed under section 3710 or made under 
        section 3711 of this title if the veteran has never 
        obtained a loan guaranteed under section 3710 or made 
        under section 3711 of this title.
          (ii) If a veteran has obtained a loan guaranteed 
        under section 3710 or made under section 3711 of this 
        title and the dwelling securing such loan was 
        substantially damaged or destroyed by a major disaster 
        declared by the President under section 401 of the 
        Robert T. Stafford Disaster Relief and Emergency 
        Assistance Act (42 U.S.C. 5170), the Secretary shall 
        treat as an initial loan, as defined in clause (i), the 
        next loan the Secretary guarantees or makes to such 
        veteran under section 3710 or 3711, respectively, if--
                  (I) such loan is guaranteed or made before 
                the date that is three years after the date on 
                which the dwelling was substantially damaged or 
                destroyed; and
                  (II) such loan is only for repairs or 
                construction of the dwelling, as determined by 
                the Secretary.
          (E) The term ``subsequent loan'' means a loan to a 
        veteran, other than an interest rate reduction 
        refinancing loan, guaranteed under section 3710 or made 
        under section 3711 of this title that is not an initial 
        loan.
          (F) The term ``interest rate reduction refinancing 
        loan'' means a loan described in section 3710(a)(8), 
        3710(a)(9)(B)(i), 3710(a)(11), 3712(a)(1)(F), or 
        3762(h) of this title.
          (G) The term ``0-down'' means a downpayment, if any, 
        of less than 5 percent of the total purchase price or 
        construction cost of the dwelling.
          (H) The term ``5-down'' means a downpayment of at 
        least 5 percent or more, but less than 10 percent, of 
        the total purchase price or construction cost of the 
        dwelling.
          (I) The term ``10-down'' means a downpayment of 10 
        percent or more of the total purchase price or 
        construction cost of the dwelling.
  (c) Waiver of Fee.--(1) A fee may not be collected under this 
section from a veteran who is receiving compensation (or who, 
but for the receipt of retirement pay or active service pay, 
would be entitled to receive compensation), from a surviving 
spouse of any veteran (including a person who died in the 
active military, naval, air, or space service) who died from a 
service-connected disability, or from a member of the Armed 
Forces who is serving on active duty and who provides, on or 
before the date of loan closing, evidence of having been 
awarded the Purple Heart.
  (2)(A) A veteran described in subparagraph (B) shall be 
treated as receiving compensation for purposes of this 
subsection as of the date of the rating described in such 
subparagraph without regard to whether an effective date of the 
award of compensation is established as of that date.
  (B) A veteran described in this subparagraph is a veteran who 
is rated eligible to receive compensation--
          (i) as the result of a pre-discharge disability 
        examination and rating; or
          (ii) based on a pre-discharge review of existing 
        medical evidence (including service medical and 
        treatment records) that results in the issuance of a 
        memorandum rating.

           *       *       *       *       *       *       *