2 1 the loan is made, and (B) in the case of a grant, for a period 2 sufficient to accomplish the objectives for which the grant 3 is made." 918T CONGRESS 2D SESSION S. 3775 IN THE SENATE OF THE UNITED STATES APRIL 30, 1970 Mr. SPARKMAN introduced the following bill; which was read twice and referred to the Committee on Banking and Currency A BILL To amend section 1811 of title 38, United States Code, to authorize the Veterans' Administration to make direct loans 1 to any veteran who is determined to be eligible for assistance in acquiring specially adapted housing under chapter 21 of title 38, United States Code. Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That section 1811 of title 38, United States Code, is amended 4 by adding after subsection (k) the following new subsection: 5 “(1) Notwithstanding the provisions of subsections (a), 6 (b), and (c) of this section, the Administrator is authorized 7 to make or enter into a commitment to make a loan to a 8 veteran who is determined to be eligible for the benefits of 2 1 chapter 21 of this title, to assist such veteran in acquiring a 2 specially adapted housing unit authorized under chapter 21, 3 if the veteran is eligible for loan guaranty benefits under this 4 title and shows to the satisfaction of the Administrator that 5 he is unable to obtain a guaranteed loan for such purpose from 6 a private lender. Such loans shall be subject to all provisions 7 of this section except those contained in subsections (b) and 8 (c)." 9 SEC. 2. Section 1811 (i) (1) of title 38, United States 10 Code, is amended by inserting after "housing credit shortage 11 area," the following: "or in any area for a veteran who is 12 determined to be eligible for assistance in acquiring a spe 233 13 cially adapted housing unit under chapter 21 of this title," Hon. JOHN SPARKMAN, VETERANS' ADMINISTRATION, Chairman, Committee on Banking and Currency, U.S. Senate, Washington, D.C. DEAR MR. CHAIRMAN: We have noted with particular interest that S. 3775, 91st Congress, is among the group of housing bills now being actively considered by your Committee. This bill would authorize the Veterans' Administration to make loans to eligible veterans supplementing grants for the purpose of acquiring specially adapted housing. On April 22, 1970, we sent a letter to the President of the Senate with an identical draft bill to authorize direct loans to this group of veterans where guaranteed home loan financing is not available. A copy of our submission is enclosed for your ready reference and with the request that it be incorporated in the record of the hearings. We strongly recommend favorable consideration of this legislation by your Committee. The Office of Management and Budget has advised that its enactment would be in accord with the program of the President. Sincerely, FRED B. RHODES, Deputy Administrator (In the absence of Donald E. Johnson, Administrator). VETERANS' ADMINISTRATION, Hon. SPIRO T. AGNEW, Washington, D.C. DEAR MR. PRESIDENT: There is transmitted herewith a draft of a bill "To amend section 1811 of title 38, United States Code, to authorize the Veterans' Administration to make direct loans to any veteran who is determinde to be eligible for assistance in acquiring specially adapted housing under chapter 21 of title 38. United States Code," with the request that it be introduced in order that it may be considered for enactment. Chapter 37 of title 38, United States Code, authorizes the partial guarantee of home, farm and business loans made by private lenders to veterans of World War II and the Korean conflict. It also authorizes the partial guarantee of home loans made by private lenders to veterans who serve after January 31, 1955. In recognition of the fact that availability of private capital in rural areas and small cities or towns is generally limited, the Congress establishes under the Housing Act of 1950 (P.L. 475, 81st Congress) the special program of direct loans to veterans in "housing credit shortage areas." This direct loan program is financed through a revolving fund. The fund is reimbursed by principal repayments on direct loans held by the Administrator and the proceeds of any direct loans sold by him. Section 1811(b) of title 38, United States Code, limiting the scope of the direct loan program, presently provides that whenever the Administrator finds that private capital is not generally available in any rural area or small city or town for financing guaranteed home loans he shall designate such place as a "housing credit shortage area", thereby making such area eligible for direct loans. There is no authority to make a direct loan elsewhere. The proposed legislation would expand the direct loan program to allow the Administrator to make direct loans to a very limited group of veterans suffering from permanent and total service-connected disabilities of such a nature as to entitle them to monetary assistance in purchasing specially adapted housing under chapter 21 of title 38. Even though such a veteran may live in a large metropolitan area the direct loan would be available to him, if there is a showing he cannot obtain the money from a private lender. It would be available, however, only for use in helping to acquire the specially adapated housing unit and building site therefor authorized under chapter 21 of title 38, United States Code. No change is proposed in the present statutory requirements relating to credit and income, the retention of which is consonant with the long-standin 2 1 2 chapter 21 of this title, to assist such veteran in acquiring a specially adapted housing unit authorized under chapter 21, 3 if the veteran is eligible for loan guaranty benefits under this 4 title and shows to the satisfaction of the Administrator that 6 he is unable to obtain a guaranteed loan for such purpose from a private lender. Such loans shall be subject to all provisions 7 of this section except those contained in subsections (b) and 8 (c)." 9 SEC. 2. Section 1811 (i) (1) of title 38, United States 10 Code, is amended by inserting after "housing credit shortage 11 area," the following: "or in any area for a veteran who is 12 determined to be eligible for assistance in acquiring a spe 13 cially adapted housing unit under chapter 21 of this title," |