[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.
* * * * * * *