Hon. JOHN SPARKMAN, VETERANS' ADMINISTRATION, Chairman, Committee on Banking and Currency, 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, 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-standing concept 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 area," the following: "or in any area for a veteran who is 12 determined to be eligible for assistance in acquiring a spe 11 13 cially adapted housing unit under chapter 21 of this title," VETERANS' ADMINISTRATION, Hon. JOHN SPARKMAN, 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, 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-standing concept that the GI loan program is a "market rate” program and not a subsidy or grant program. It has been our experience that there are frequent occasions when credit is short in large urban areas as well as in rural areas and small towns. During these periods of credit stringency, many veterans are unable to find private lenders willing to make VA-guaranteed loans to finance the purchase or construction of homes. This includes the limited group of veterans, most of whom are paraplegic, who having obtained a grant for specially adapted housing find they cannot finance their home purchases with VA-guaranteed loans. We believe that these severely handicaped veterans whose disability resulted from service, in recognition of their sacrifices for the Nation, deserve to be insulated against wide fluctuations in the private capital market. The assurance of credit availability for such veterans through direct VA loans is deemed meritorious and would be a meaningful extension of the special housing benefit which has been provided for the group. It is estimated that aproximately 150 eligible veterans would apply for these direct loans each year, at an annual administrative cost of approximately $17,500. The outlay for making such loans would be approximately $3,150,000 which would be funded from the direct loan revolving fund and subsequently recovered for the fund from loan payments. We are advised by the Bureau of the Budget that there is no objection to the presentation of this proposed legislation and that its enactment would be in accord with the program of the President. Sincerely, DONALD E. JOHNSON, 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 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 Representatives of the United States of America in Congress assembled, That section 1811 of title 38, United States Code, is amended by adding after subsection (k) the following new subsection: "(1) Notwithstanding the provisions of subsections (a), (b), and (c) of this section, the Administrator is authorized to make or enter into a commitment to make a loan to a veteran who is determined to be eligible for the benefits of chapter 21 of this title, to assist such veteran in acquiring a specially adapted housing unit authorized under chapter 21, if the veteran is eligible for loan guaranty benefits under this title and shows to the satisfaction of the Administrator that he is unable to obtain a guaranteed loan for such purpose from a private lender. Such loans shall be subject to all provisions of this section except those contained in subsections (b) and (c)." SEO. 2. Section 1811 (i)(1) of title 38, United States Code, is amended by inserting after "housing credit shortage area," the following: "or in any area for a veteran who is determined to be eligible for assistance in acquiring a specially adapted housing unit under chapter 21 of this title," 91ST CONGRESS 2D SESSION S. 3786 IN THE SENATE OF THE UNITED STATES APRIL 30, 1970 Mr. KENNEDY introduced the following bill; which was read twice and referred to the Committee on Banking and Currency A BILL To amend title VII of the Housing and Urban Development Act of 1965 to authorize financial assistance for the development and improvement of street lighting facilities. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That (a) title VII of the Housing and Urban Development 4 Act of 1965 is amended by redesignating sections 705–708 5 as sections 706-709, respectively, and by inserting after 6 section 704 a new section as follows: 7 "GRANTS FOR STREET LIGHTING FACILITIES 8 "SEC. 705. The Secretary is authorized to make grants 9 to any local public body or agency to assist in financing 10 specific projects to provide lighting facilities for streets, |