[House Report 118-652]
[From the U.S. Government Publishing Office]
118th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 118-652
======================================================================
DISABLED VETERANS HOUSING SUPPORT ACT
_______
September 9, 2024.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. McHenry, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 7480]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 7480) to amend section 102(a)(20) of the Housing
and Community Development Act of 1974 to require the exclusion
of service-connected disability compensation when determining
whether a person is a person of low and moderate income, a
person of low income, or a person of moderate income, 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
Purpose and Summary.............................................. 2
Background and Need for Legislation.............................. 2
Related Hearing.................................................. 3
Committee Consideration.......................................... 3
Committee Votes.................................................. 3
Committee Oversight Findings..................................... 6
Performance Goals and Objectives................................. 6
Congressional Budget Office Estimates............................ 6
New Budget Authority, Entitlement Authority, and Tax Expenditures 7
Federal Mandates Statement....................................... 7
Advisory Committee Statement..................................... 7
Applicability to Legislative Branch.............................. 7
Earmark Identification........................................... 7
Duplication of Federal Programs.................................. 7
Section-by-Section Analysis of the Legislation................... 8
Changes in Existing Law Made by the Bill, as Reported............ 8
Minority Views................................................... 17
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 ``Disabled Veterans Housing Support
Act''.
SEC. 2. SERVICE CONNECTED DISABILITY COMPENSATION.
Section 102(a)(20) of the Housing and Community Development Act of
1974 (42 U.S.C. 5302(a)(20)) is amended by adding at the end the
following:
``(C) Service-connected disability compensation.--
When determining whether a person is a person of low
and moderate income, a person of low income, or a
person of moderate income under this paragraph, a
State, unit of general local government, or Indian
tribe shall exclude any service-connected disability
compensation received by such person from the
Department of Veterans Affairs.''.
SEC. 3. REPORT.
The Comptroller General of the United States shall, not later than 1
year after the date of the enactment of this Act, submit to the
Congress a report that--
(1) examines how service-connected disability compensation is
treated for the purposes of determining eligibility for all
programs administered by the Secretary of Housing and Urban
Development;
(2) identifies any instances where service-connected
disability compensation is treated in a manner inconsistent
with the amendment made by section 2; and
(3) with respect to each program administered by the
Secretary of Housing and Urban Development in which service-
connected disability compensation is treated inconsistently,
provides legislative recommendations relating to how such
program could better serve veteran populations, and under-
served communities.
Purpose and Summary
Introduced on February 29, 2024, by Representative Monica
De La Cruz, H.R. 7480, the Disabled Veterans Housing Support
Act, would require the Department of Housing and Urban
Development (HUD) to exclude all service-connected disability
compensation from the Community Development Block Grant (CDBG)
program's income eligibility calculations. This will ensure
that low-income disabled veterans are not unfairly penalized in
accessing CDBG programs and services.
Background and Need for Legislation
This bipartisan legislation rectifies an issue that HUD has
failed to address, causing confusion and creating bureaucratic
obstacles for veterans accessing housing assistance. Under
HUD's current rules, income eligibility calculation for CDBG
grantees may include service-connected disability income, which
places many low-income veterans above the low-income threshold
necessary to qualify for CDBG assistance. In addition, HUD's
current policy provides three different options for CDBG
grantees to follow when factoring in service-connected
disability compensation, creating unnecessary confusion and
complexity for CDBG grantees when determining which veterans
would qualify for assistance. For more than two years, Chairman
McHenry has requested that HUD provide clarity and simplify its
income calculation rules, including most recently during former
HUD Secretary Fudge's appearance before the Financial Services
Committee in January 2024. Unfortunately, Secretary Fudge and
HUD have repeatedly failed to take responsibility for fixing
the problem.
In response to HUD's failure, Rep. De La Cruz introduced
H.R. 7480. This bill would instruct HUD to exclude service-
connected disability compensation from its income calculation
rules in determining eligibility for CDBG. Doing so will
maximize the number of disabled veterans who are be eligible to
participate in services offered under the program. Furthermore,
the bill requires the Government Accountability Office (GAO) to
report to Congress on how service-connected disability
compensation is treated across all programs administered by
HUD, including providing recommendations on how to better serve
veteran populations and underserved communities within HUD
programs.
Related Hearing
Pursuant to clause 3(c)(6) of rule XIII, the following
hearing was used to develop H.R. 7480: The Committee on
Financial Services held a hearing on March 20, 2024, titled
``The Characteristics and Challenges of Today's Homebuyers.''
Committee Consideration
The Committee on Financial Services met in open session on
May 16, 2024, and ordered H.R. 7480 to be reported favorably to
the House by a recorded vote of 37 ayes to 12 nays (Record vote
no. FC-157), a quorum being present.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the order to report legislation and amendments thereto. H.R.
7480 was ordered reported favorably to the House by a recorded
vote of 37 ayes to 12 nays (Record vote no. FC-157), a quorum
being present.
An amendment offered by Ms. Garcia, no. 13, was not agreed
to by a recorded vote of 22 ayes to 27 nays, a quorum being
present (Recorded vote no. 156).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 7480 is to amend the
Housing and Community Development Act of 1974 to require the
exclusion of service-connected disability compensation when
determining if a veteran qualifies for assistance under the
CDBG program as a person of low or moderate income.
Congressional Budget Office Estimates
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
H.R. 7480 would require the Department of Housing and Urban
Development (HUD) to exclude all service-connected disability
compensation from income when calculating eligibility for the
Community Development Block Grant (CDBG) program. The bill also
would require the Government Accountability Office (GAO) to
report to the Congress on how service-connected disability
compensation is treated when determining eligibility for
programs administered by HUD and recommend how those programs
could better serve veterans and under-served groups.
Using information from HUD, CBO expects that few veterans
currently receive funding from the CDBG program. Furthermore,
for some veterans, disability compensation is already excluded
from income when determining eligibility. On that basis, CBO
estimates that implementing that requirement would increase
costs for HUD by an insignificant amount. Additionally, and
based on the cost of similar reports, CBO estimates that GAO `s
report would cost less than $500,000.
Any related spending for HUD and GAO would be subject to
the availability of appropriated funds.
The CBO staff contact for this estimate is Zunara Naeem.
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Director of Budget Analysis.
Phillip L. Swagel,
Director, Congressional Budget Office.
New Budget Authority, Entitlement Authority, and Tax Expenditures
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives, the Committee adopts as its own the
estimate of new budget authority, entitlement authority, or tax
expenditures or revenues contained in the cost estimate
prepared by the Director of the Congressional Budget Office
pursuant to section 402 of the Congressional Budget Act of
1973.
Federal Mandates Statement
Pursuant to section 423 of the Unfunded Mandates Reform
Act, the Committee adopts as its own the estimate of the
Federal mandates prepared by the Director of the Congressional
Budget Office.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
The Committee finds that the legislation 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.
Earmark Identification
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Sets the short title of the bill as the
``Disabled Veterans Housing Support Act.''
Section 2. Amends the Housing and Community Development Act
of 1974 to require a states, units of general local government,
and Indian tribes that receive CDBG funds to exclude any
service-connected disability compensation received by a veteran
in determining if that veteran qualifies for assistance under
the CDBG program as a person of low or moderate income.
Section 3. Requires GAO to submit to Congress within one
year a report that examines how service-connected disability
compensation is treated for the purposes of determining
eligibility under all programs of HUD, identifies any cases
where service-connected disability compensation is treated
inconsistently across a HUD program, and provides legislative
recommendations relating to how such programs could better
serve veteran populations and under-served communities.
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 (new matter is
printed in italics and existing law in which no change is
proposed is shown in roman):
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
TITLE I--COMMUNITY DEVELOPMENT
* * * * * * *
definitions
Sec. 102. (a) As used in this title--
(1) The term ``unit of general local government''
means any city, county, town, township, parish,
village, or other general purpose political subdivision
of a State; Guam, the Northern Mariana Islands, the
Virgin Islands, and American Samoa, or a general
purpose political subdivision thereof; a combination of
such political subdivisions that, except as provided in
section 106(d)(4), is recognized by the Secretary; and
the District of Columbia. Such term also includes a
State or a local public body or agency (as defined in
section 711 of the Housing and Urban Development Act of
1970), community association, or other entity, which is
approved by the Secretary for the purpose of providing
public facilities or services to a new community as
part of a program meeting the eligibility standards of
section 712 of the Housing and Urban Development Act of
1970 or title IV of the Housing and Urban Development
Act of 1968.
(2) The term ``State'' means any State of the United
States, or any instrumentality thereof approved by the
Governor; and the Commonwealth of Puerto Rico.
(3) The term ``metropolitan area'' means a standard
metropolitan statistical area as established by the
Office of Management and Budget.
(4) The term ``metropolitan city'' means (A) a city
within a metropolitan area which is the central city of
such area, as defined and used by the Office of
Management and Budget, or (B) any other city, within a
metropolitan area, which has a population of fifty
thousand or more. Any city that was classified as a
metropolitan city for at least 2 years pursuant to the
first sentence of this paragraph shall remain
classified as a metropolitan city. Any unit of general
local government that becomes eligible to be classified
as a metropolitan city, and was not classified as a
metropolitan city in the immediately preceding fiscal
year, may, upon submission of written notification to
the Secretary, defer its classification as a
metropolitan city for all purposes under this title, if
it elects to have its population included in an urban
county under subsection (d). Notwithstanding the second
sentence of this paragraph, a city may elect not to
retain its classification as a metropolitan city. Any
city classified as a metropolitan city pursuant to this
paragraph, and that no longer qualifies as a
metropolitan city in a fiscal year beginning after
fiscal year 1989, shall retain its classification as a
metropolitan city for such fiscal year and the
succeeding fiscal year, except that in such succeeding
fiscal year (A) the amount of the grant to such city
shall be 50 percent of the amount calculated under
section 106(b); and (B) the remaining 50 percent shall
be added to the amount allocated under section 106(d)
to the State in which the city is located and the city
shall be eligible in such succeeding fiscal year to
receive a distribution from the State allocation under
section 106(d) as increased by this sentence. Any unit
of general local government that was classified as a
metropolitan city in any fiscal year, may, upon
submission of written notification to the Secretary,
relinquish such classification for all purposes under
this title if it elects to have its population included
with the population of a county for purposes of
qualifying for assistance (for such following fiscal
year) under section 106 as an urban county under
paragraph (6)(D). Any metropolitan city that elects to
relinquish its classification under the preceding
sentence and whose port authority shipped at least
35,000,000 tons of cargo in 1988, of which iron ore
made up at least half, shall not receive, in any fiscal
year, a total amount of assistance under section 106
from the urban county recipient that is less than the
city would have received if it had not relinquished the
classification under the preceding sentence.
Notwithstanding any other provision of this paragraph,
with respect to any fiscal year beginning after
September 30, 2007, the cities of Alton and Granite
City, Illinois, shall be considered metropolitan cities
for purposes of this title.
(5) The term ``city'' means (A) any unit of general
local government which is classified as a municipality
by the United States Bureau of the Census or (B) any
other unit of general local government which is a town
or township and which, in the determination of the
Secretary, (I) possesses powers and performs functions
comparable to those associated with municipalities,
(ii) is closely settled, and (iii) contains within its
boundaries no incorporated places as defined by the
United States Bureau of the Census which have not
entered into cooperation agreements with such town or
township to undertake or to assist in the undertaking
of essential community development and housing
assistance activities.
(6)(A) The term ``urban county'' means any county
within a metropolitan area which--
(I) is authorized under State law to
undertake essential community development and
housing assistance activities in its
unincorporated areas, if any, which are not
units of general local government; and
(ii) either--
(I) has a population of 200,000 or
more (excluding the population of
metropolitan cities therein) and has a
combined population of 100,000 or more
(excluding the population of
metropolitan cities therein) in such
unincorporated areas and in its
included units of general local
government (and in the case of counties
having a combined population of less
than 200,000, the areas and units of
general local government must include
the areas and units of general local
government which in the aggregate have
the preponderance of the persons of low
and moderate income who reside in the
county) (a) in which it has authority
to undertake essential community
development and housing assistance
activities and which do not elect to
have their population excluded, or (b)
with which it has entered into
cooperation agreements to undertake or
to assist in the undertaking of
essential community development and
housing assistance activities; or
(II) has a population in excess of
100,000, a population density of at
least 5,000 persons per square mile,
and contains within its boundaries no
incorporated places as defined by the
United States Bureau of the Census.
(B) Any county that was classified as an urban county
for at least 2 years pursuant to subparagraph (A), (C),
or (D) shall remain classified as an urban county,
unless it fails to qualify as an urban county pursuant
to subparagraph (A) by reason of the election of any
unit of general local government included in such
county to have its population excluded under clause
(ii)(I)(a) of subparagraph (A) or not to renew a
cooperation agreement under clause (ii)(I)(b) of such
subparagraph.
(C) Notwithstanding the combined population amount
set forth in clause (ii) of subparagraph (A), a county
shall also qualify as an urban county for purposes of
assistance under section 106 if such county--
(I) complies with all other requirements set
forth in the first sentence;
(ii) has, according to the most recent
available decennial census data, a combined
population between 190,000 and 199,999,
inclusive (excluding the population of
metropolitan cities therein) in all its
unincorporated areas that are not units of
general local government and in all units of
general local government located within such
county;
(iii) had a population growth rate of not
less than 15 percent during the most recent 10-
year period measured by applicable censuses;
and
(iv) has submitted data satisfactory to the
Secretary that it has a combined population of
not less than 200,000 (excluding the population
of metropolitan cities therein) in all its
unincorporated areas that are not units of
general local government and in all units of
general local government located within such
county.
(D) Such term also includes a county that--
(I) has a combined population in excess of
175,000, has more than 50 percent of the
housing units of the area unsewered, and has an
aquifer that was designated before March 1,
1987, a sole source aquifer by the
Environmental Protection Agency;
(ii) has taken steps, which include at least
one public referendum, to consolidate
substantial public services with an adjoining
metropolitan city, and in the opinion of the
Secretary, has consolidated these services with
the city in an effort that is expected to
result in the unification of the two
governments within 6 years of the date of
enactment of the Housing and Community
Development Act of 1987;
(iii) had a population between 180,000 and
200,000 on October 1, 1987, was eligible for
assistance under section 119 of the Housing and
Community Development Act of 1974 in fiscal
year 1986, and does not contain any
metropolitan cities;
(iv) has entered into a local cooperation
agreement with a metropolitan city that
received assistance under section 106 because
of such classification, and has elected under
paragraph (4) to have its population included
with the population of the county for purposes
of qualifying as an urban county; except that
to qualify as an urban county under this clause
(I) the county must have a combined population
of not less than 195,000, (II) more than 15
percent of the residents of the county shall be
60 years of age or older (according to the most
recent decennial census data), (III) not less
than 20 percent of the total personal income in
the county shall be from pensions, social
security, disability, and other transfer
programs, and (IV) not less than 40 percent of
the land within the county shall be publicly
owned and not subject to property tax levies;
(v)(I) has a population of 175,000 or more
(including the population of metropolitan
cities therein), (II) before January 1, 1975,
was designated by the Secretary of Defense
pursuant to section 608 of the Military
Construction Authorization Act, 1975 (Public
Law 93-552; 88 Stat. 1763), as a Trident
Defense Impact Area, and (III) has located
therein not less than 1 unit of general local
government that was classified as a
metropolitan city and (a) for which county each
such unit of general local government therein
has relinquished its classification as a
metropolitan city under the 6th sentence of
paragraph (4), or (b) that has entered into
cooperative agreements with each metropolitan
city therein to undertake or to assist in the
undertaking of essential community development
and housing assistance activities;
(vi) has entered into a local cooperation
agreement with a metropolitan city that
received assistance under section 106 because
of such classification, and has elected under
paragraph (4) to have its population included
with the population of the county for the
purposes of qualifying as an urban county,
except that to qualify as an urban county under
this clause, the county must--
(I) have a combined population of not
less than 210,000, excluding any
metropolitan city located in the county
that is not relinquishing its
metropolitan city classification,
according to the 1990 decennial census
of the Bureau of the Census of the
Department of Commerce;
(II) including any metropolitan
cities located in the county, have had
a decrease in population of 10,061 from
1992 to 1994, according to the
estimates of the Bureau of the Census
of the Department of Commerce; and
(III) have had a Federal naval
installation that was more than 100
years old closed by action of the Base
Closure and Realignment Commission
appointed for 1993 under the Base
Closure and Realignment Act of 1990,
directly resulting in a loss of
employment by more than 7,000 Federal
Government civilian employees and more
than 15,000 active duty military
personnel, which naval installation was
located within one mile of an
enterprise community designated by the
Secretary pursuant to section 1391 of
the Internal Revenue Code of 1986,
which enterprise community has a
population of not less than 20,000,
according to the 1990 decennial census
of the Bureau of the Census of the
Department of Commerce
(vii)(I) has consolidated its government with one or more
municipal governments, such that within the county boundaries
there are no unincorporated areas; (II) has a population of not
less than 650,000; (III) for more than 10 years, has been
classified as a metropolitan city for purposes of allocating
and distributing funds under section 106; and (IV) as of the
date of enactment of this clause, has over 90 percent of the
county's population within the jurisdiction of the consolidated
government; or
(viii) notwithstanding any other provision of this section,
any county that was classified as an urban county pursuant to
subparagraph (A) for fiscal year 1999, at the option of the
county, may hereafter remain classified as an urban county for
purposes of this Act.
(E) Any county classified as an urban county pursuant
to subparagraph (A), (B), or (C) of this paragraph, and
that no longer qualifies as an urban county under such
subparagraph in a fiscal year beginning after fiscal
year 1989, shall retain its classification as an urban
county for such fiscal year and the succeeding fiscal
year, except that in such succeeding fiscal year (i)
the amount of the grant to such an urban county shall
be 50 percent of the amount calculated under section
106(b); and (ii) the remaining 50 percent shall be
added to the amount allocated under section 106(d) to
the State in which the urban county is located and the
urban county shall be eligible in such succeeding
fiscal year to receive a distribution from the State
allocation under section 106(d) as increased by this
sentence.
(7) The term ``nonentitlement area'' means an area
which is not a metropolitan city or part of an urban
county and does not include Indian tribes.
(8) The term ``population'' means total resident
population based on data compiled by the United States
Bureau of the Census and referable to the same point or
period in time.
(9) The term ``extent of poverty'' means the number
of persons whose incomes are below the poverty level.
Poverty levels shall be determined by the Secretary
pursuant to criteria provided by the Office of
Management and Budget, taking into account and making
adjustments, if feasible and appropriate and in the
sole discretion of the Secretary, for regional or area
variations in income and cost of living, and shall be
based on data referable to the same point or period in
time.
(10) The term ``extent of housing overcrowding''
means the number of housing units with 1.01 or more
persons per room based on data compiled by the United
States Bureau of the Census and referable to the same
point or period in time.
(11) The term ``age of housing'' means the number of
existing housing units constructed in 1939 or earlier
based on data compiled by the United States Bureau of
the Census and referable to the same point or period in
time.
(12) The term ``extent of growth lag'' means the
number of persons who would have been residents in a
metropolitan city or urban county, in excess of the
current population of such metropolitan city or urban
county, if such metropolitan city or urban county had
had a population growth rate between 1960 and the date
of the most recent population count referable to the
same point or period in time equal to the population
growth rate for such period of all metropolitan cities.
Where the boundaries for a metropolitan city or urban
county used for the 1980 census have changed as a
result of annexation, the current population used to
compute extent of growth lag shall be adjusted by
multiplying the current population by the ratio of the
population based on the 1980 census within the
boundaries used for the 1980 census to the population
based on the 1980 census within the current boundaries.
Where the boundaries for a metropolitan city or urban
county used for the 1980 census have changed as a
result of annexation, the current population used to
compute extent of growth lag shall be adjusted by
multiplying the current population by the ratio of the
population based on the 1980 census within the
boundaries used for the 1980 census to the population
based on the 1980 census within the current boundaries.
(13) The term ``housing stock'' means the number of
existing housing units based on data compiled by the
United States Bureau of the Census and referable to the
same point or period in time.
(14) The term ``adjustment factor'' means the ratio
between the age of housing in the metropolitan city or
urban county and the predicted age of housing in such
city or county.
(15) The term ``predicted age of housing'' means the
arithmetic product of the housing stock in the
metropolitan city or urban county multiplied times the
ratio between the age of housing in all metropolitan
areas and the housing stock in all metropolitan areas.
(16) The term ``adjusted age of housing'' means the
arithmetic product of the age of housing in the
metropolitan city or urban county multiplied times the
adjustment factor.
(17) The term ``Indian tribe'' means any Indian
tribe, band, group, and nation, including Alaska
Indians, Aleuts, and Eskimos, and any Alaskan Native
Village, of the United States, which is considered an
eligible recipient under the Indian Self-Determination
and Education Assistance Act (Public Law 93-638) or was
considered an eligible recipient under chapter 67 of
title 31, United States Code, prior to the repeal of
such chapter.
(18) The term ``Federal grant-in-aid program'' means
a program of Federal financial assistance other than
loans and other than the assistance provided by this
title.
(19) The term ``Secretary'' means the Secretary of
Housing and Urban Development.
(20)(A) The terms ``persons of low and moderate
income'' and ``low- and moderate-income persons'' mean
families and individuals whose incomes do not exceed 80
percent of the median income of the area involved, as
determined by the Secretary with adjustments for
smaller and larger families. The term ``persons of low
income'' means families and individuals whose incomes
do not exceed 50 percent of the median income of the
area involved, as determined by the Secretary with
adjustments for smaller and larger families. The term
``persons of moderate income'' means families and
individuals whose incomes exceed 50 percent, but do not
exceed 80 percent, of the median income of the area
involved, as determined by the Secretary with
adjustments for smaller and larger families. For
purposes of such terms, the area involved shall be
determined in the same manner as such area is
determined for purposes of assistance under section 8
of the United States Housing Act of 1937.
(B) The Secretary may establish percentages of median
income for any area that are higher or lower than the
percentages set forth in subparagraph (A), if the
Secretary finds such variations to be necessary because
of unusually high or low family incomes in such area.
(C) Service-connected disability
compensation.--When determining whether a
person is a person of low and moderate income,
a person of low income, or a person of moderate
income under this paragraph, a State, unit of
general local government, or Indian tribe shall
exclude any service-connected disability
compensation received by such person from the
Department of Veterans Affairs.
(21) The term ``buildings for the general conduct of
government'' means city halls, county administrative
buildings, State capitol or office buildings, or other
facilities in which the legislative or general
administrative affairs of the government are conducted.
Such term does not include such facilities as
neighborhood service centers or special purpose
buildings located in low- and moderate-income areas
that house various nonlegislative functions or services
provided by government at decentralized locations.
(22) The term ``microenterprise'' means a commercial
enterprise that has 5 or fewer employees, 1 or more of
whom owns the enterprise.
(23) The term ``small business'' means a business
that meets the criteria set forth in section 3(a) of
the Small Business Act.
(24) The term ``insular area'' means each of Guam,
the Northern Mariana Islands, the Virgin Islands, and
American Samoa.
(b) Where appropriate, the definitions in subsection (a)
shall be based, with respect to any fiscal year, on the most
recent data compiled by the United States Bureau of the Census
and the latest published reports of the Office of Management
and Budget available ninety days prior to the beginning of such
fiscal year. The Secretary may by regulation change or
otherwise modify the meaning of the terms defined in subsection
(a) in order to reflect any technical change or modification
thereof made subsequent to such date by the United States
Bureau of the Census or the Office of Management and Budget.
(c) One or more public agencies, including existing local
public agencies, may be designated by the chief executive
officer of a State or a unit of general local government to
undertake activities assisted under this title.
(d) With respect to program years beginning with the program
year for which grants are made available from amounts
appropriated for fiscal year 1982 under section 103, the
population of any unit of general local government which is
included in that of an urban county as provided in subparagraph
(A)(ii) or (D) of subsection (a)(6) shall be included in the
population of such urban county for three program years
beginning with the program year in which its population was
first so included and shall not otherwise be eligible for a
grant under section 106 as a separate entity, unless the urban
county does not receive a grant for any year during such three-
year period.
(e) Any county seeking qualification as an urban county,
including any urban county seeking to continue such
qualification, shall notify, as provided in this subsection,
each unit of general local government, which is included
therein and is eligible to elect to have its population
excluded from that of an urban county under subsection
(a)(6)(A)(ii)(I)(a), of its opportunity to make such an
election. Such notification shall, at a time and in a manner
prescribed by the Secretary, be provided so as to provide a
reasonable period for response prior to the period for which
such qualification is sought. The population of any unit of
general local government which is provided such notification
and which does not inform, at a time and in a manner prescribed
by the Secretary, the county of its election to exclude its
population from that of the county shall, if the county
qualifies as an urban county, be included in the population of
such urban county as provided in subsection (d).
* * * * * * *
MINORITY VIEWS
We oppose H.R. 7480, which diverts limited Community
Development Block Grant (CDBG) program funding to higher income
disabled veterans without authorizing new funding for the
lowest income households, including lower income veterans that
rely on these funds today. Specifically, this bill would
exclude service-connected disability income for the purposes of
determining a household's income eligibility under the CDBG
program. This sets a concerning precedent that both shifts
resources away from the low-income households and communities
the program was created to assist and presents duplication of
benefit issues as higher income veteran households tend to have
greater access to credit and alternative federal funding
programs compared to lower income households.
CDBG gives eligible grantees, which include states, cities,
territories, and counties, the discretion to make locally
informed and place-based decisions, and to use funds towards
development projects and programs within specific activity
categories. As a condition of receiving funding, CDBG's
authorizing statute requires state and local governments to
certify that the proposed CDBG activities meet one of the
program's three national objectives.\1\ Eligible activities
must: 1) benefit low- and moderate-income (LMI) persons; 2) aid
in the prevention or elimination of slums or blight; or 3) meet
a need having a particular urgency.\2\ The objective to deploy
funds for the benefit of LMI persons is often considered the
``primary'' national objective because statute requires that
recipients of CDBG funds expend 70% of their funds to meet this
objective.\3\
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\1\Id.
\2\HUD, Guide to National Objectives and Eligible Activities for
CDBG Entitlement Communities (Feb. 2001).
\3\Id.
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It is also important to keep in mind that compared to
civilians, veterans, especially higher income, credit-worthy
veterans, have access to additional financing and grant options
through other federal programs targeted exclusively for
veterans that are described below. By trying to expand CDBG
assistance for higher income veterans, the bill would
effectively duplicate other federal grant and lending programs,
including:
VA Mortgage Loan Program: The VA offers low-
interest, zero-downpayment mortgage loans to help
veterans access affordable homeownership;
VA Cash-Out Refinance Loans: The VA offers
cash-out refinance loans to help with home
improvements;
VA disability housing grants: These grants
help disabled veterans purchase or modify their home
for independent living;
VA Home Improvements and Structural
Alterations (HISA) Grants: HISA grants help with
disability-connected home modifications;
HUD-VASH: In addition to other federal
programs serving veterans experiencing homelessness,
HUD and the VA jointly administer the HUD-VASH program
to offer homeless veterans rental payment assistance
through HUD vouchers paired with casework and
supportive services through the VA;
HUD Veterans Housing Rehabilitation and
Modification Pilot Program: HUD also offers grants to
help ``modify or rehabilitate eligible veterans'
primary residences or to provide grantees' affiliates
with technical, administrative, and training support in
connection with those services'' through the Veterans
Housing Rehabilitation and Modification Pilot Program.
While Republicans claim to support veterans' housing needs,
the bottom line is that the underlying affordable housing
crisis is a major root cause of veterans experiencing
homelessness or otherwise struggling to afford or maintain
housing. If we made major investments to increase the overall
supply of fair and affordable housing, this would help veterans
and other households struggling to afford housing. We could
even increase investments in housing programs and other
solutions that are targeted to veterans. But of course,
Republicans are ignoring the root causes of veteran housing
challenges and passing this bill that would effectively rob
Peter to pay Paul so that they can pretend like they are doing
something to help.
Moreover, despite claiming to support our nation's
veterans, Republicans proposed deep budget cuts for FY24 that
would have harmed veterans, including by slashing rental
assistance for over 50,000 veterans through HUD-VASH.\4\ For
FY2024 House Republicans proposed funding bills that would have
slashed HUD grant programs by nearly 30% and rural housing
programs administered by USDA by 31%.\5\ In fact, while
Committee Republicans have offered several legislative packages
that would hurt America's small business owners, gut the CFPB
that helps protect veterans from financial harms, and allow
mega wealthy big banks to continue abusive practices against
consumers, they have yet to offer a legislative package to help
address our nation's worsening affordable housing and
homelessness crisis, which affects veterans' stability and
well-being. Lastly, Representative Garcia of Texas proposed an
amendment requiring the GAO to study the funding, budgetary,
and income targeting effects of the underlying bill. The
amendment was not accepted.
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\4\The White House, Congressional Republicans' Legislation: 22%
Cuts That Would Harm American Families, Seniors and Veterans (Apr. 20,
2023).
\5\House Appropriations Committee, Committee Approves FY24
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Bill (Jun. 14, 2023); See also House Appropriations
Committee, Fiscal Year 2024 Transportation, Housing and Urban
Development, and Related Agencies Appropriations Bill (Jul. 12, 2023).
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For these reasons, we oppose H.R. 7480.
Sincerely,
Maxine Waters,
Ranking Member.
Nydia M. Velazquez,
Stephen F. Lynch,
Al Green,
Emanuel Cleaver II,
Joyce Beatty,
Ayanna Pressley,
Rashida Tlaib,
Sylvia R. Garcia,
Nikema Williams,
Members of Congress.
[all]