89–006 

116TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 116–58 

BLUE WATER NAVY VIETNAM VETERANS ACT OF 2019 

MAY 10, 2019.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. TAKANO, from the Committee on Veterans’ Affairs, 

submitted the following 

R E P O R T 

[To accompany H.R. 299] 

The Committee on Veterans’ Affairs, to whom was referred the 

bill (H.R. 299) to amend title 38, United States Code, to clarify presumptions relating to the exposure of certain veterans who served 

in the vicinity of the Republic of Vietnam, and for other purposes, 

having considered the same, report favorably thereon with an 

amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 9 

Background and Need for Legislation .................................................................... 9 

Hearings ................................................................................................................... 16 

Subcommittee Consideration .................................................................................. 17 

Committee Consideration ........................................................................................ 17 

Committee Correspondence .................................................................................... 18 

Committee Votes ...................................................................................................... 21 

Committee Oversight Findings ............................................................................... 21 

New Budget Authority and CBO Cost Estimate Committee Cost Estimate ...... 21 

Statement of General Performance Goals and Objectives .................................... 21 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 21 

Earmarks and Tax and Tariff Benefits .................................................................. 22 

Federal Mandates Statement ................................................................................. 22 

Advisory Committee Statement .............................................................................. 22 

Constitutional Authority Statement ...................................................................... 22 

Applicability to Legislative Branch ........................................................................ 22 

Statement on Duplication of Federal Programs .................................................... 22 

Section-by-Section Analysis of the Legislation ...................................................... 22 

Committee Cost Estimate .......................................................................................

Congressional Budget Office Estimate ...................................................................

Changes in Existing Law Made by the Bill as Reported ...................................... 24 


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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 ‘‘Blue Water Navy Vietnam Veterans Act of 2019’’. 

SEC. 2. CLARIFICATION OF PRESUMPTIONS OF EXPOSURE FOR VETERANS WHO SERVED IN 

VICINITY OF REPUBLIC OF VIETNAM. 

(a) IN GENERAL.—Chapter 11 of title 38, United States Code, is amended by inserting after section 1116 the following new section: 

‘‘§ 1116A. Presumptions of service connection for veterans who served offshore of the Republic of Vietnam 

‘‘(a) SERVICE CONNECTION.—For the purposes of section 1110 of this title, and subject to section 1113 of this title, a disease covered by section 1116 of this title becoming manifest as specified in that section in a veteran who, during active military, 

naval, or air service, served offshore of the Republic of Vietnam during the period 

beginning on January 9, 1962, and ending on May 7, 1975, shall be considered to 

have been incurred in or aggravated by such service, notwithstanding that there is 

no record of evidence of such disease during the period of such service. 

‘‘(b) EXPOSURE.—A veteran who, during active military, naval, or air service, 

served offshore of the Republic of Vietnam during the period beginning on January 

9, 1962, and ending on May 7, 1975, shall be presumed to have been exposed during 

such service to an herbicide agent unless there is affirmative evidence to establish 

that the veteran was not exposed to any such agent during that service. 

‘‘(c) EFFECTIVE DATE OF AWARD.—(1) Except as provided by paragraph (2), the effective date of an award under this section shall be determined in accordance with 

section 5110 of this title. 

‘‘(2)(A) Notwithstanding subsection (g) of section 5110 of this title, the Secretary 

shall determine the effective date of an award based on a claim under this section 

for an individual described in subparagraph (B) by treating the date on which the 

individual filed the prior claim specified in clause (i) of such subparagraph as the 

date on which the individual filed the claim so awarded under this section. 

‘‘(B) An individual described in this subparagraph is a veteran, or a survivor of 

a veteran, who meets the following criteria: 

‘‘(i) The veteran or survivor submitted a claim for disability compensation on 

or after September 25, 1985, and before January 1, 2020, for a disease covered 

by this section, and the claim was denied by reason of the claim not establishing that the disease was incurred or aggravated by the service of the veteran. 

‘‘(ii) The veteran or survivor submits a claim for disability compensation on 

or after January 1, 2020, for the same condition covered by the prior claim 

under clause (i), and the claim is approved pursuant to this section. 

‘‘(d) DETERMINATION OF OFFSHORE.—Notwithstanding any other provision of law, 

for purposes of this section, the Secretary shall treat a location as being offshore 

of Vietnam if the location is not more than 12 nautical miles seaward of a line commencing on the southwestern demarcation line of the waters of Vietnam and Cambodia and intersecting the following points: 

‘‘Points Geographic Names Latitude 

North 

Longitude 

East 

At Hon Nhan Island, Tho Chu Archipelago Kien Giang Province 9°15.0’ 103°27.0’ 

At Hon Da Island southeast of Hon Khoai Island Minh Hai 

Province 8°22.8’ 104°52.4’ 

At Tai Lon Islet, Con Dao Islet in Con Dao-Vung Toa Special 

Sector 8°37.8’ 106°37.5’ 

At Bong Lai Islet, Con Dao Islet 8°38.9’ 106°40.3’ 

At Bay Canh Islet, Con Dao Islet 8°39.7’ 106°42.1’ 

At Hon Hai Islet (Phu Qui group of islands) Thuan Hai Province 9°58.0’ 109°5.0’ 


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‘‘Points Geographic Names Latitude 

North 

Longitude 

East 

At Hon Doi Islet, Thuan Hai Province 12°39.0’ 109°28.0’ 

At Dai Lanh point, Phu Khanh Province 12°53.8’ 109°27.2’ 

At Ong Can Islet, Phu Khanh Province 13°54.0’ 109°21.0’ 

At Ly Son Islet, Nghia Binh Province 15°23.1’ 109° 9.0’ 

At Con Co Island, Binh Tri Thien Province 17°10.0’ 107°20.6’ 

‘‘(e) HERBICIDE AGENT.—In this section, the term ‘herbicide agent’ has the meaning given that term in section 1116(a)(3) of this title.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 

is amended by inserting after the item relating to section 1116 the following new 

item: 

‘‘1116A. Presumptions of service connection for veterans who served offshore of the Republic of Vietnam.’’. 

(c) IMPLEMENTATION.— 

(1) GUIDANCE.—Notwithstanding section 501 of such title, the Secretary of 

Veterans Affairs may issue guidance to implement section 1116A of title 38, 

United States Code, as added by subsection (a), before prescribing new regulations under such section. 

(2) UPDATES.—(A) Not later than 120 days after the date of the enactment 

of this Act, the Secretary shall submit a report to the Committees on Veterans’ 

Affairs of the House of Representatives and the Senate regarding the plans of 

the Secretary— 

(i) to conduct outreach under subsection (d); and 

(ii) to respond to inquiries from veterans regarding claims for disability 

compensation under section 1116A of title 38, United States Code, as added 

by subsection (a) of this section. 

(B) On a quarterly basis during the period beginning on the date of the enactment of this Act and ending on the date on which regulations are prescribed 

to carry out such section 1116A, the Secretary shall submit to the Committees 

on Veterans’ Affairs of the House of Representatives and the Senate updates on 

the status of such regulations. 

(3) PENDING CASES.— 

(A) AUTHORITY TO STAY.—The Secretary may stay a claim described in 

subparagraph (B) until the date on which the Secretary commences the implementation of such section 1116A. 

(B) CLAIMS DESCRIBED.—A claim described in this subparagraph is a 

claim for disability compensation— 

(i) relating to the service and diseases covered by such section 1116A; 

and 

(ii) that is pending at the Veterans Benefits Administration or the 

Board of Veterans’ Appeals on or after the date of the enactment of this 

Act and before the date on which the Secretary commences the implementation of such section 1116A. 

(d) OUTREACH.— 

(1) REQUIREMENT.—The Secretary of Veterans Affairs shall conduct outreach 

to inform veterans described in paragraph (2) of the ability to submit a claim 

for disability compensation under section 1116A of title 38, United States Code, 

as added by subsection (a). Such outreach shall include the following: 

(A) The Secretary shall publish on the website of the Department a notice 

that a veterans described in paragraph (2) may submit or resubmit a claim 

for disability compensation under such section 1116A. 

(B) The Secretary shall notify in writing the veteran service organization 

community of the ability of veterans described in paragraph (2) to submit 

or resubmit claims for disability compensation under such section 1116A. 

(2) VETERAN DESCRIBED.—A veteran described in this paragraph is a veteran 

who, during active military, naval, or air service, served offshore of the Republic 

of Vietnam during the period beginning on January 9, 1962, and ending on May 

7, 1975. 

(e) REPORTS.—Not later than January 1, 2021, and annually thereafter for two 

years, the Secretary of Veterans Affairs shall submit to the Committees on Veterans’ Affairs of the House of Representatives and the Senate a report regarding 

claims for disability compensation under section 1116A of title 38, United States 


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Code, as added by subsection (a). Each report shall include, with respect to the calendar year preceding the report, disaggregated by the regional offices of the Department of Veterans Affairs, the following: 

(1) The number of claims filed under such section. 

(2) The number of such claims granted. 

(3) The number of such claims denied. 

(f) HEALTH CARE.—Section 1710(e)(4) of title 38, United States Code, is amended 

by inserting ‘‘(including offshore of such Republic as described in section 1116A(d) 

of this title)’’ after ‘‘served on active duty in the Republic of Vietnam’’. 

(g) EFFECTIVE DATE.—The amendments made by this section shall take effect on 

January 1, 2020. 

SEC. 3. PRESUMPTION OF HERBICIDE EXPOSURE FOR CERTAIN VETERANS WHO SERVED IN 

KOREA. 

(a) IN GENERAL.—Chapter 11 of title 38, United States Code, is amended by inserting after section 1116A, as added by section 2, the following new section: 

‘‘§ 1116B. Presumption of herbicide exposure for certain veterans who 

served in Korea 

‘‘(a) PRESUMPTION OF SERVICE-CONNECTION.—(1) For the purposes of section 1110 

of this title, and subject to section 1113 of this title, a disease specified in subsection 

(b) that becomes manifest as specified in that subsection in a veteran described in 

paragraph (2) shall be considered to have been incurred or aggravated in the line 

of duty in the active military, naval, or air service, notwithstanding that there is 

no record of evidence of such disease during the period of such service. 

‘‘(2) A veteran described in this paragraph is a veteran who, during active military, naval, or air service, served in or near the Korean Demilitarized Zone (DMZ), 

during the period beginning on September 1, 1967, and ending on August 31, 1971. 

‘‘(b) DISEASES.—A disease specified in this subsection is— 

‘‘(1) a disease specified in paragraph (2) of subsection (a) of section 1116 of 

this title that becomes manifest as specified in that paragraph; or 

‘‘(2) any additional disease that— 

‘‘(A) the Secretary determines in regulations warrants a presumption of 

service-connection by reason of having positive association with exposure to 

an herbicide agent; and 

‘‘(B) becomes manifest within any period prescribed in such regulations. 

‘‘(c) HERBICIDE AGENT.—For purposes of this section, the term ‘herbicide agent’ 

has the meaning given such term in section 1821(d) of this title.’’. 

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 

is amended by inserting after the item relating to section 1116A, as added by section 2, the following new item: 

‘‘1116B. Presumption of herbicide exposure for certain veterans who served in Korea.’’. 

(c) IMPLEMENTATION.— 

(1) GUIDANCE.—Notwithstanding section 501 of such title, the Secretary of 

Veterans Affairs may issue guidance to implement section 1116B of title 38, 

United States Code, as added by subsection (a), before prescribing new regulations under such section. 

(2) UPDATES.—(A) Not later than 120 days after the date of the enactment 

of this Act, the Secretary shall submit a report to the Committees on Veterans’ 

Affairs of the House of Representatives and the Senate regarding the plans of 

the Secretary to respond to inquiries from veterans regarding claims for disability compensation under section 1116B of title 38, United States Code, as 

added by subsection (a) of this section. 

(B) On a quarterly basis during the period beginning on the date of the enactment of this Act and ending on the date on which regulations are prescribed 

to carry out such section 1116B, the Secretary shall submit to the Committees 

on Veterans’ Affairs of the House of Representatives and the Senate updates on 

the status of such regulations. 

(3) PENDING CASES.— 

(A) AUTHORITY TO STAY.—The Secretary may stay a claim described in 

subparagraph (B) until the date on which the Secretary commences the implementation of section 1116B of title 38, United States Code, as added by 

subsection (a). 

(B) CLAIMS DESCRIBED.—A claim described in this subparagraph is a 

claim for disability compensation— 

(i) relating to the service and diseases covered by such section 1116B; 

and 

(ii) that is pending at the Veterans Benefits Administration or the 

Board of Veterans’ Appeals on or after the date of the enactment of this 


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Act and before the date on which the Secretary commences the implementation of such section 1116B. 

(d) EFFECTIVE DATE.—The amendments made by this section shall take effect on 

January 1, 2020. 

SEC. 4. BENEFITS FOR CHILDREN OF CERTAIN THAILAND SERVICE VETERANS BORN WITH 

SPINA BIFIDA. 

(a) IN GENERAL.—Subchapter III of chapter 18 of title 38, United States Code, is 

amended by adding at the end the following new section: 

‘‘§ 1822. Benefits for children of certain Thailand service veterans born with 

spina bifida 

‘‘(a) BENEFITS AUTHORIZED.—The Secretary may provide to any child of a veteran 

of covered service in Thailand who is suffering from spina bifida the health care, 

vocational training and rehabilitation, and monetary allowance required to be paid 

to a child of a Vietnam veteran who is suffering from spina bifida under subchapter 

I of this chapter as if such child of a veteran of covered service in Thailand were 

a child of a Vietnam veteran who is suffering from spina bifida under such subchapter. 

‘‘(b) SPINA BIFIDA CONDITIONS COVERED.—This section applies with respect to all 

forms and manifestations of spina bifida, except spina bifida occulta. 

‘‘(c) VETERAN OF COVERED SERVICE IN THAILAND.—For purposes of this section, a 

veteran of covered service in Thailand is any individual, without regard to the characterization of that individual’s service, who— 

‘‘(1) served in the active military, naval, or air service in Thailand, as determined by the Secretary in consultation with the Secretary of Defense, during 

the period beginning on January 9, 1962, and ending on May 7, 1975; and 

‘‘(2) is determined by the Secretary, in consultation with the Secretary of Defense, to have been exposed to a herbicide agent during such service in Thailand. 

‘‘(d) HERBICIDE AGENT.—For purposes of this section, the term ‘herbicide agent’ 

means a chemical in a herbicide used in support of United States and allied military 

operations in Thailand, as determined by the Secretary in consultation with the Secretary of Defense, during the period beginning on January 9, 1962, and ending on 

May 7, 1975.’’. 

(b) CONFORMING AMENDMENT TO DEFINITION OF ‘‘CHILD’’.—Section 1831(1) of such 

title is amended— 

(1) in subparagraph (B)— 

(A) by striking ‘‘subchapter III of this chapter’’ and inserting ‘‘section 

1821 of this title’’; and 

(B) in clause (i), by striking ‘‘section 1821 of this title’’ and inserting ‘‘that 

section’’; and 

(2) by adding at the end the following new subparagraph: 

‘‘(C) For purposes of section 1822 of this title, an individual, regardless 

of age or marital status, who— 

‘‘(i) is the natural child of a veteran of covered service in Thailand 

(as determined for purposes of that section); and 

‘‘(ii) was conceived after the date on which that veteran first entered 

service described in subsection (c) of that section.’’. 

(c) CLERICAL AMENDMENTS.— 

(1) SUBCHAPTER HEADING.—The heading for subchapter III of chapter 18 of 

such title is amended by inserting ‘‘AND THAILAND’’ after ‘‘KOREA’’. 

(2) TABLE OF SECTIONS.—The table of sections at the beginning of chapter 18 

of such title is amended— 

(A) by striking the item relating to subchapter III and inserting the following new item: 

‘‘SUBCHAPTER III—CHILDREN OF CERTAIN KOREA AND THAILAND SERVICE VETERANS BORN WITH SPINA BIFIDA’’; 

and 

(B) by inserting after the item relating to section 1821 the following new 

item: 

‘‘1822. Benefits for children of certain Thailand service veterans born with spina bifida.’’. 

(d) IMPLEMENTATION.— 

(1) GUIDANCE.—Notwithstanding section 501 of such title, the Secretary of 

Veterans Affairs may issue guidance to implement section 1822 of title 38, 

United States Code, as added by subsection (a), before prescribing new regulations under such section. 

(2) UPDATES.—(A) Not later than 120 days after the date of the enactment 

of this Act, the Secretary shall submit a report to the Committees on Veterans’ 


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Affairs of the House of Representatives and the Senate regarding the plans of 

the Secretary to respond to inquiries from veterans regarding claims for disability compensation under section 1822 of title 38, United States Code, as 

added by subsection (a) of this section. 

(B) On a quarterly basis during the period beginning on the date of the enactment of this Act and ending on the date on which regulations are prescribed 

to carry out such section 1822, the Secretary shall submit to the Committees 

on Veterans’ Affairs of the House of Representatives and the Senate updates on 

the status of such regulations. 

(3) PENDING CASES.— 

(A) AUTHORITY TO STAY.—The Secretary may stay a claim described in 

subparagraph (B) until the date on which the Secretary commences the implementation of section 1822 of title 38, United States Code, as added by 

subsection (a). 

(B) CLAIMS DESCRIBED.—A claim described in this subparagraph is a 

claim for benefits— 

(i) relating to the spina bifida and service covered by such section 

1822; and 

(ii) that is pending at the Veterans Benefits Administration or the 

Board of Veterans’ Appeals on or after the date of the enactment of this 

Act and before the date on which the Secretary commences the implementation of such section 1822. 

(e) REPORT.—Not later than 180 days after the date of the enactment of this Act, 

the Secretary of Veterans Affairs, in consultation with the Secretary of Defense, 

shall submit to the Committees on Veterans’ Affairs of the House of Representatives 

and the Senate a report identifying— 

(1) the military installations of the United States located in Thailand during 

the period beginning on January 9, 1962, and ending on May 7, 1975, at which 

an herbicide agent (as defined in section 1822 of title 38, United States Code, 

as added by subsection (a)) was actively used; and 

(2) the period of such use. 

(f) EFFECTIVE DATE.—The amendments made by this section shall take effect on 

January 1, 2020. 

SEC. 5. UPDATED REPORT ON CERTAIN GULF WAR ILLNESS STUDY. 

Not later than 180 days after the date of the enactment of this Act, the Secretary 

of Veterans Affairs shall submit to the Committees on Veterans’ Affairs of the 

House of Representatives and the Senate an updated report on the findings, as of 

the date of the updated report, of the Follow-up Study of a National Cohort of Gulf 

War and Gulf Era Veterans under the epidemiology program of the Department of 

Veterans Affairs. 

SEC. 6. LOANS GUARANTEED UNDER HOME LOAN PROGRAM OF DEPARTMENT OF VETERANS 

AFFAIRS. 

(a) ADJUSTMENT OF LOAN LIMIT.— 

(1) IN GENERAL.—Section 3703(a)(1) of title 38, United States Code, is amended— 

(A) in subparagraph (A)— 

(i) in clause (i)(IV), by striking ‘‘the lesser of the maximum guaranty 

amount (as defined in subparagraph (C)) or’’; 

(ii) in clause (ii), by striking ‘‘subparagraph (B) of this paragraph’’ 

and inserting ‘‘subparagraph (B) or (C)’’; 

(B) in subparagraph (B)— 

(i) by striking ‘‘The maximum’’ and inserting ‘‘With respect to loans 

described in subclauses (I), (II), or (III) of subparagraph (A)(i), the maximum’’; and 

(ii) by striking ‘‘or in the case’’ and all that follows through ‘‘subparagraph (C)),’’; and 

(C) by striking subparagraph (C) and inserting the following new subparagraph (C): 

‘‘(C)(i) With respect to loans described in subclause (IV) of subparagraph (A)(i) 

made to a veteran not covered by clause (ii), the maximum amount of guaranty entitlement available to the veteran shall be 25 percent of the loan. 

‘‘(ii) With respect to loans described in subclause (IV) of subparagraph (A)(i) made 

to a covered veteran, the maximum amount of guaranty entitlement available to the 

veteran shall be 25 percent of the Freddie Mac conforming loan limit, reduced by 

the amount of entitlement previously used by the veteran under this chapter and 

not restored as a result of the exclusion in section 3702(b) of this title. 

‘‘(iii) In this subparagraph: 


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‘‘(I) The term ‘covered veteran’ means a veteran who has previously used entitlement under this chapter and for whom the full amount of entitlement so used 

has not been restored as a result of the exclusion in section 3702(b) of this title. 

‘‘(II) The term ‘Freddie Mac conforming loan limit’ means the limit determined under section 305(a)(2) of the Federal Home Loan Mortgage Corporation 

Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as adjusted for the year 

involved.’’. 

(2) LOANS TO NATIVE AMERICAN VETERANS.—Section 3762(c) of such title is 

amended— 

(A) by striking paragraph (1); and 

(B) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. 

(3) CONFORMING AMENDMENT.—Section 3710(d)(4) of such title is amended by 

striking ‘‘section 3703(a)(1)(B) of this title’’ and inserting ‘‘subparagraph (B) or 

(C) of section 3703(a)(1) of this title’’. 

(b) ADJUSTMENT OF LOAN FEES.—Section 3729(b)(2) of title 38, United States 

Code, is amended by striking the loan fee table and inserting the following: 

‘‘Type of loan Active duty 

veteran Reservist Other obligor 

(A)(i) Initial loan described in 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) 

2.15 2.40 NA 

(A)(ii) Initial loan described in 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 January 1, 2022) 

2.30 2.30 NA 

(A)(iii) Initial loan described in 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, 2022, and 

before October 1, 2029) 

2.15 2.15 NA 

(A)(iv) Initial loan described in 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, 2029) 

1.40 1.40 NA 

(B)(i) Subsequent loan described in 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) 

3.30 3.30 NA 

(B)(ii) Subsequent loan described in 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 January 1, 

2022) 

3.60 3.60 NA 

(B)(iii) Subsequent loan described in 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, 2022, and before October 1, 

2029) 

3.30 3.30 NA 

(B)(iv) Subsequent loan described in 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, 2029) 

1.25 1.25 NA 


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‘‘Type of loan Active duty 

veteran Reservist Other obligor 

(C)(i) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down 

(closed before January 1, 2020) 

1.50 1.75 NA 

(C)(ii) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down 

(closed on or after January 1, 2020, and before January 1, 2022) 

1.65 1.65 NA 

(C)(iii) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down 

(closed on or after January 1, 2022, and before October 1, 2029) 

1.50 1.50 NA 

(C)(iv) Loan described in section 3710(a) to purchase or construct a dwelling with 5-down 

(closed on or after October 1, 2029) 

0.75 0.75 NA 

(D)(i) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down 

(closed before January 1, 2020) 

1.25 1.50 NA 

(D)(ii) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down 

(closed on or after January 1, 2020, and before January 1, 2022) 

1.40 1.40 NA 

(D)(iii) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down 

(closed on or after January 1, 2022, and before October 1, 2029) 

1.25 1.25 NA 

(D)(iv) Loan described in section 3710(a) to purchase or construct a dwelling with 10-down 

(closed on or after October 1, 2029) 

0.50 0.50 NA 

(E) Interest rate reduction refinancing loan 0.50 0.50 NA 

(F) Direct loan under section 3711 1.00 1.00 NA 

(G) Manufactured home loan under section 

3712 (other than an interest rate reduction 

refinancing loan) 

1.00 1.00 NA 

(H) Loan to Native American veteran under 

section 3762 (other than an interest rate reduction refinancing loan) 

1.25 1.25 NA 

(I) Loan assumption under section 3714 0.50 0.50 0.50 

(J) Loan under section 3733(a) 2.25 2.25 2.25’’. 

(c) WAIVER OF FEES FOR PURPLE HEART RECIPIENTS.—Section 3729(c)(1) of such 

title is amended— 

(1) by striking ‘‘or from a surviving spouse’’ and inserting ‘‘, from a surviving 

spouse’’; and 

(2) by inserting before the period at the end the following: ‘‘, 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’’. 

(d) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to a loan guaranteed under section 3710 of title 38, United States Code, on 

or after January 1, 2020. 

(e) GUIDANCE.—Notwithstanding section 501 of title 38, United States Code, the 

Secretary of Veterans Affairs may issue guidance to implement this section before 

prescribing new regulations under sections 3703, 3729, and 3762 of such title, as 

amended by this section. 

SEC. 7. INFORMATION GATHERING FOR DEPARTMENT OF VETERANS AFFAIRS HOME LOAN 

APPRAISALS. 

(a) IN GENERAL.—Section 3731(b) of title 38, United States Code, is amended by 

adding at the end the following new paragraph: 

‘‘(3) The Secretary shall permit an appraiser on a list developed and maintained 

under subsection (a)(3) to make an appraisal for the purposes of this chapter based 

solely on information gathered by a person with whom the appraiser has entered 

into an agreement for such services.’’. 

(b) EFFECTIVE DATE.—The amendments made by this section shall apply with respect to an appraisal under section 3731 of such title, on or after January 1, 2020. 


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1 BWN veterans are defined as veterans who served offshore of the Republic of Vietnam (defined below) between the dates of January 9, 1962, and May 7, 1975. 

(c) GUIDANCE.—Notwithstanding section 501 of such title, the Secretary of Veterans Affairs may issue guidance to implement this section before prescribing new 

regulations under sections 3731 of such title, as amended by subsection (a). 

PURPOSE AND SUMMARY

H.R. 299, as amended, would, effective January 1, 2020, extend 

the presumption of exposure for purposes of entitlement to service 

connection for diseases associated with exposure to herbicide 

agents, such as Agent Orange to Blue Water Navy (BWN) Vietnam 

veterans.1 Additionally, H.R. 299, as amended, would extend the 

presumption of exposure to certain herbicide agents to veterans 

who served in or near the Korean Demilitarized Zone (DMZ) during 

the period beginning on September 1, 1967, and ending on August 

31, 1971. 

Consequently, these veterans may be eligible for veterans’ benefits, such as compensation and healthcare, if they develop a disease 

linked to herbicide exposure. H.R. 299, as amended, would require 

the Secretary of the Department of Veterans Affairs (Secretary) to 

conduct outreach to inform these veterans and veterans service organizations of the ability to submit a claim for disability compensation if they develop certain diseases. 

H.R. 299, as amended, would extend eligibility for U.S. Department of Veterans Affairs (VA) benefits to certain children with 

spina bifida (other than spina bifida occulta) who were born to veterans who served in Thailand between January 9, 1962, and May 

7, 1975, and were determined by the Secretary to have been exposed to an herbicide agent. 

H.R. 299, as amended, also requires the Secretary to submit a report to the Committees on Veterans’ Affairs of the House of Representatives and the Senate regarding the use of herbicide agents 

in Thailand during the Vietnam era. Further, VA is required to 

submit reports to the Committees on Veterans’ Affairs of the House 

of Representatives and the Senate on claims filed by BWN veterans 

for disability compensation under this Act, including the numbers 

of claims granted and denied. The bill, as amended, would also require the Secretary to submit an update to the Committees regarding the Follow-up Study of the National Cohort of Gulf War and 

Gulf Era Veterans, which examines the health of veterans who 

served in the Gulf War elsewhere during the same period. 

H.R. 299, as amended, would also make improvements to VA’s 

Home Loan Guaranty program to ensure that veterans can use 

their home loan benefit in high-cost areas, and receive appraisals 

in a timely and cost-efficient manner. 

Representative Mark Takano of California introduced H.R. 299 

on January 8, 2019. 

BACKGROUND AND NEED FOR LEGISLATION

Toxic exposures 

The Agent Orange Act of 1991 (P.L. 102–4) established the presumption of service connection for certain diseases associated with 

exposure to herbicide agents for veterans who served in the Republic of Vietnam between January 9, 1962, and May 7, 1975. This 


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2 VA currently acknowledges that the following conditions are linked with exposure to herbicides used during the Vietnam era: AL Amyloidosis, Chloracne, Type II Diabetes Mellitus, Hodgkin’s Disease, Ischemic Heart Disease, Chronic B-cell Leukemias, Multiple Myeloma, Non-Hodgkin’s Lymphoma, Parkinson’s Disease, Early-onset Peripheral Neuropathy, Porphyria Cutanea 

Tarda, Prostate Cancer, Respiratory Cancers, Soft-tissue Sarcoma. Accordingly, if a Vietnam 

veteran who served on land in Vietnam or on inland waterways develops one of these conditions, 

VA automatically presumes the condition is service connected. 3 Institute of Medicine Committee on Blue Water Navy Vietnam Veterans and Agent Orange 

Exposure, Blue Water Navy Vietnam Veterans and Agent Orange Exposure (2011). 4 V.A. Gen. Couns. Op. 27–97 (July 23, 1997). 

presumption simplifies the disability claim process for veterans 

who develop conditions linked with exposure to toxic herbicide 

agents due to the difficulty of proving actual exposure to herbicide 

agents, particularly when exposure occurred decades earlier. Additionally, this policy reduces the expense and time for VA to gather 

evidence of service connection on a case-by-case basis and streamlines the adjudication process. 

VA’s current guidelines do not acknowledge that BWN veterans 

may have been exposed to Agent Orange during the Vietnam era. 

Instead, VA limits the presumption of herbicide exposure to veterans who actually set foot on land in the Republic of Vietnam or 

served in the country’s inland waterways. H.R. 299, as amended, 

would remedy this inequity by extending the presumption of exposure for service connection for herbicide related diseases 2 to BWN 

veterans who served in the offshore waters of Vietnam between 

January 9, 1962, and May 7, 1975. 

This bill is necessary because many veterans’ advocates contend 

that BWN veterans likely experienced exposure to herbicide agents 

during the Vietnam era and are now experiencing significant 

health problems as a result. For example, it is possible that toxic 

substances sprayed in Vietnam to defoliate the mainland subsequently entered rivers and streams that then ran into the seas surrounding Vietnam.3 U.S. Naval ships used water drawn from the 

sea to make potable water, which BWN veterans used for drinking, 

bathing, and cooking. Because BWN veterans may have been exposed to toxic herbicide agents, advocates argue it is unfair that 

veterans who served on land are eligible for presumptive VA benefits, while those who served off the coast of Vietnam are not, even 

if they develop the same diseases. 

In response to concerns raised by veterans’ advocates, in 2011 

the Institute of Medicine (IOM) attempted to determine whether 

BWN veterans experience a comparable range of exposure to herbicide agents as those on the ground in Vietnam. However, the IOM 

concluded that given the passage of time and lack of sampling data 

collected during the conflict, there is not enough information to 

conclusively determine whether Blue Water Navy personnel came 

into contact to defoliants during their service. IOM also determined 

that it is unlikely that such data will be available in the future. 

As a result, VA has decided that the lack of scientific evidence prevents the Department from extending the presumption to BWN 

veterans.4

Tragically, many veterans who served off the coast of the Republic of Vietnam are now experiencing health problems that are associated with herbicide exposure. However, since BWN veterans do 

not receive an automatic presumption of herbicide exposure based 

on the areas where they served, these veterans must provide evidence of actual exposure to herbicide agents to successfully file a 


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5Procopio v. Wilkie, 913 F.3d 1371 (Fed. Cir. 2019). 6Liermann, Shane, Assistant National Legislative Director of the Disabled American Veterans, Statement to the House of Representatives Committee on Veterans’ Affairs Subcommittee 

on Disability Benefits and Memorial Affairs Hearing on May 1, 2019. 7Fuentes, Carlos, Director of the National Legislative Service for the Veterans of Foreign 

Wars, Statement to the House of Representatives Committee on Veterans’ Affairs Subcommittee 

on Disability Benefits and Memorial Affairs Hearing on May 1, 2019 (stating, ‘‘I was in Afghanistan in 2009 and I could never be able to present to you any evidence of where I was at and 

exactly what I was exposed to . . . and I can’t even fathom how hard that is for our Vietnam 

vet[erans].’’). 

claim for VA benefits for their herbicide related conditions. It is 

very difficult, if not impossible, for BWN veterans to gather such 

evidence because their service records may be missing or incomplete—if contemporaneous records documenting exposure were 

even created in the first place. As a result, VA often denies claims 

for benefits filed by BWN veterans. 

Additionally, on January 29, 2019, the Federal Circuit decided 

Procopio v. Wilkie 5, holding that the ‘‘Republic of Vietnam’’ unambiguously includes its 12 nautical mile territorial sea. As a result, 

the Court concluded that all BWN veterans serving in the 12 nautical mile territorial sea were considered Vietnam veterans for purposes of VA benefits, and were therefore eligible to receive the presumption of herbicide exposure. The Court’s decision did not, however, define the term ‘‘territorial sea.’’ As a result, this bill is necessary to codify the Court’s decision and mitigate concerns that VA 

may narrowly interpret the decision, thereby excluding some BWN 

veterans.6 To ensure that VA construes this bill to extend the presumption to all applicable BWN veterans who may have been exposed to herbicide agents, the Committee intends that VA’s definition of the Republic of Vietnam for this purpose be broad and comprehensive. 

For purposes of this bill, a BWN veteran is one who served in 

the offshore waters of Vietnam. As defined by Section 2, offshore 

waters include a 12 nautical mile radius extending off a baseline 

designated by a series of geographic points. The bill intends to capture all servicemembers who were present between the shoreline 

and the farthermost reaches of the 12 nautical mile radius during 

the relevant timeframe. 

The bill does not specify the evidentiary proof required to establish presence within the offshore waters during the relevant time 

frame. Thus, the Secretary may propose guidance and regulations 

relating to the necessary evidence to establish qualifying service. 

The difficulty an individual may experience establishing specific 

whereabouts during a period of war is well-known 7 and deference 

to lay evidence may be warranted in some situations. However, lay 

evidence generally does not supersede objective evidence of location 

in the offshore waters, such as deck logs. Any forthcoming rules or 

guidance should be consistent with the existing rules regarding evidentiary proof. VA should assist a veteran, to the extent possible, 

with developing evidence necessary to substantiate his or her 

claim. 

This bill contemplates coverage of all vessels that served on or 

below the offshore waters of Vietnam. Though the majority of 

qualifying servicemembers served aboard ships, there may also be 

instances of submarines present within the offshore waters, and 

these vessels are also contemplated under this Act. However, an 

aircraft that passed in the airspace above the offshore waters 


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8See also 38 U.S.C. § 1113(a). 9 Under Nehmer, for any new conditions or diseases VA recognized as linked to exposure to 

herbicides between September 25, 1985, and September 30, 2015, VA was required to automatically readjudicate any previously denied claims of Vietnam veterans and their survivors for 

those conditions or diseases. Moreover, if the veteran was awarded benefits, VA was required 

to establish that the effective date of the claim was the date the first claim was received. See 

38 C.F.R. § 3.816(c)(2)–(3). See also: Nehmer v. United States Veterans Administration, 712 F. 

Supp. 1404 (N.D. Cal. 1989) (Nehmer I); Nehmer v. United States Veterans Administration, 32 

F. Supp. 2d. 1175 (N.D. Cal. 1999) (Nehmer II); Nehmer v. Veterans Administration of the Government of the United States, 284 F.3d 1158 (9th Cir. 2002) (Nehmer III). 

would not have drawn water from the sea and therefore is not considered present within the offshore waters for purposes of this legislation. 

The bill, as amended, provides a presumption of herbicide agent 

exposure for all BWN veterans except in instances where there is 

affirmative evidence to establish that the veteran was not exposed 

to any such agent during service. Under existing law, the presumption of herbicide exposure may be rebutted when there is affirmative evidence to the contrary or evidence that the disease is due to 

another cause.8

Additionally, because BWN veterans have generally been unable 

to successfully apply for benefits for conditions that may have been 

caused by service in Vietnam due to the lack of a presumption of 

exposure, Section 2 of H.R. 299, as amended, would provide retroactive benefits for veterans who were denied benefits between September 1, 1985, and January 1, 2020, if the individual veteran or 

survivor beneficiary of a deceased veteran re-files a claim for benefits. This provision is consistent with special effective date rules 

given to Vietnam veterans who served on land or on inland waterways under Nehmer v. United States Department of Veterans Affairs, to the extent that decision contemplated retroactive awards 

for benefits. This ensures parity for BWN veterans and their survivors.9 However, unlike Nehmer, H.R. 299, as amended, does not 

require VA to automatically re-adjudicate previously denied BWN 

claims. Under this bill, a BWN veteran, or beneficiary, is required 

to submit a new claim for disability compensation on or after January 1, 2020, for the same condition that was previously denied, to 

be eligible for retroactive benefits. However, a BWN veteran is not 

limited in seeking benefits for any disease added to the Secretary’s 

list of herbicide related diseases at a date after enactment of this 

legislation. Nothing in this bill intends to limit the rights of 

Nehmer class members who seek relief for benefits under the 

Nehmer Consent Decree. 

To ensure that veterans whose claims were previously denied are 

aware of their rights under this Act, H.R. 299, as amended, requires the Secretary to conduct outreach to inform BWN veterans 

of the ability to submit or resubmit a claim for benefits related to 

herbicide agent exposure. The Secretary is also directed to share 

that information with the veteran service organization community 

to allow these representative organizations to provide up to date information to their veteran members. The VSO community includes 

the service organizations with the most members and other such 

stakeholders as the Secretary considers appropriate to notify of the 

change in law. Furthermore, the bill would mandate that VA submit a report to the Committees on Veterans’ Affairs of the House 

of Representatives and the Senate on the new claims filed under 


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10 Institute of Medicine, Veterans and Agent Orange Update 2000 (2001). 11P.L. 108–183, 38 U.S.C. 1802, et. seq. 12 38 C.F.R. § 3.307. 

the special effective date rules by BWN veterans, on January 1, 

2021, and annually thereafter for two years. 

In 2000, the Institute of Medicine (IOM) determined there may 

be a link between exposure to chemicals used in Vietnam and spina 

bifida in offspring.10 Thus, Congress provides benefits to children 

of some Vietnam era veterans who may have been harmed by the 

use of herbicide agents, such as those who served in Vietnam or 

along the Korean DMZ.11 However, even though VA recognizes 

that some veterans who were stationed along the perimeter of military installations in Thailand (between January 9, 1962, and May 

7, 1975), may have come into contact with herbicide agents, the Department does not provide benefits to these veterans’ biological 

children who were born with spina bifida. Section 4 of H.R. 299, 

as amended, would extend benefits to these children if VA determines that the veteran was exposed to a recognized herbicide agent 

during service. To be eligible for benefits, the child suffering from 

spina bifida must be the natural child of the exposed veteran and 

conceived after the parent’s exposure. 

Additionally, although Congress authorized benefits for certain 

children of veterans who served in or near the Korean DMZ between September 1, 1967, and August 31, 1971, VA’s regulations 

limit the presumption of exposure for veterans who served in or 

near the Korean DMZ beginning April 1, 1968.12 As a result of 

VA’s regulation, a veteran who was stationed along the Korean 

DMZ between September 1, 1967, and March 31, 1968, is not automatically eligible for benefits if the veteran develops a condition 

linked to toxic chemical exposure. However, that same veteran’s 

child who was conceived after the veteran’s service in Korea and 

was born with spina bifida, may be eligible for benefits based on 

possible exposure to herbicide agents. Section 3 of H.R. 299, as 

amended, would resolve this inconsistency between the law and 

VA’s regulation by expanding the presumption to include veterans 

who served in or near the Korean DMZ between September 1, 

1967, and April 1, 1968. 

Like Section 2, Section 3 does not limit a Korean DMZ veteran 

or family member from seeking compensation for diseases recognized by the Secretary as related to herbicide exposure in the future. If, at a date following enactment of H.R. 299, as amended, the 

Secretary determines via regulation that additional diseases are related to herbicide exposure, any veteran or beneficiary identified by 

Section 3 may seek benefits for that disease based on the veteran’s 

qualifying service in the Korean DMZ. 

Sections 2, 3 and 4 of the bill also include provisions allowing VA 

to issue guidance regarding the implementation of BWN, Korean 

DMZ and Thailand benefits as described in H.R. 299, as amended. 

This allows the Secretary to begin awarding benefits permitted 

under these sections prior to the completion of the rulemaking 

process. The ability to award immediate benefits during the interim period between passage of H.R. 299, as amended, and promulgation of relevant regulations reflects the urgency of need for 

veterans and family members afflicted by herbicide related diseases. However, the guidance provisions are not intended to replace 


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13Fiscal Year 2019 Budget Submission, U.S. Department of Veterans Affairs, Volume 3, ‘‘Benefits and Burial Programs and Departmental Administration, page 222. 14Section 1454(a)(2) of title 12, U.S.C. 15Murray, Patrick, Deputy Director of the National Legislative Service for the Veterans of 

Foreign Wars, Written Statement to the House of Representatives Committee on Veterans’ Affairs Subcommittee on Economic Opportunity Hearing on April 9, 2019 (‘‘The price of real estate 

has significantly increased in recent years, but the amount VA is able to guarantee has not. 

Veterans in high cost-of-living areas are now forced to contribute costly upfront down payments 

to guarantee their home loans with VA. This barrier prohibits veterans from achieving their 

dreams of becoming homeowners.’’). 16Kamin, John, Credentialing and Education Policy Associate for The American Legion, Written Statement to the House of Representatives Committee on Veterans’ Affairs Subcommittee 

on Economic Opportunity Hearing on April 9, 2019 (‘‘For example, a veteran purchasing a 1- 

the need for formal regulations. Thus, the Secretary is also required to provide quarterly updates on the status of the regulations. 

H.R. 299, as amended, would also address concerns of veterans 

who were stationed at U.S. bases in Thailand between January 9, 

1962, and May 7, 1975, but are excluded from the current presumption. Section 4 of H.R. 299, as amended, would require the VA 

Secretary, in consultation with the Secretary of Defense, to submit 

a report within 180 days to the Committees on Veterans’ Affairs of 

the House of Representatives and the Senate identifying the U.S. 

military installations located in Thailand where an herbicide agent 

was actively used and identify the period of such use. 

Moreover, H.R. 299, as amended, would require the Secretary to 

submit to the Committees on Veterans’ Affairs of the House of Representatives and the Senate an update on the findings of VA’s Follow-up Study of a National Cohort of Gulf War and Gulf Era Veterans. This study examines the health status of veterans who 

served in the Gulf War in 1990 and 1991 and the health of veterans who served in other areas during the same period. 

VA’s Home Loan Program 

First authorized by the Servicemember’s Readjustment Act of 

1944, the VA Home Loan Guaranty program helps hundreds of 

thousands of servicemembers and veterans purchase their part of 

the American dream each year. In FY 2018, the VA Loan Guaranty 

Service guaranteed 610,513 loans at a cost of over $166 billion.13

Section 3703 of title 38, U.S.C., sets the limit for the purchase price 

of a home loan that VA can guarantee. VA’s maximum loan guaranty amount is calculated as a percentage of the Freddie Mac conforming loan limitation determined by the Federal Home Loan 

Mortgage Corporation Act 14 which varies by location and zip code. 

Since in most cases VA’s guaranty must be at least 25 percent of 

the loan, this means that VA’s maximum loan guaranty amount is 

effectively capped at the Freddie Mac limit. For many veterans who 

are seeking to purchase a home in high cost areas, the Freddie Mac 

limit is too low for VA’s zero-down payment loan program. This either forces the veteran not to use the VA program, or pay the loan 

principal down.15

To address this issue and make the home loan benefit available 

to all veterans and servicemembers that qualify, Section 6 of this 

bill would amend section 3703 of title 38, U.S.C., to eliminate the 

maximum loan guaranty amount under the VA home loan program 

by eliminating the Freddie Mac limit for VA home loans and would 

make the maximum guaranty amount 25 percent of the loan 

amount.16 The Committee is confident VA’s current strict underVerDate Sep 11 2014 01:14 May 12, 2019 Jkt 089006 PO 00000 Frm 00014 Fmt 6659 Sfmt 6602 E:\HR\OC\HR058.XXX HR058

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million-dollar home would have 25% ($181,631.25) of the maximum guaranteed amount of 

$726.525 backed by the government.’’) 17 Id. (‘‘Data suggests more expensive VA home loans have a smaller default rate.’’) 

writing standards and low foreclosure rates will ensure that veterans still have the required credit and income to qualify for the 

loan, and that this change will not result in a significant increased 

amount of foreclosures.17

Section 3729 of title 38, U.S.C., requires certain users of VA’s 

loan guaranty benefit to pay a funding fee. The amount of the 

funding fee varies based on an individual’s active duty or reserve 

status, the amount of down payment brought forward, and the date 

of loan origination. The rates of funding fees (expressed as a percentage of the loan) have remained the same since 2004. The costs 

of the funding fee can be rolled into the life of the loan and can 

be waived if the servicemember has a service-connected disability. 

These fees reduce the subsidy cost associated with VA’s guaranty 

of mortgage loans and have typically been viewed as a reasonable 

cost to the benefit gained by having VA guarantee a mortgage loan. 

This section would adjust the home loan fee for mortgages closed 

on or after January 1, 2020, through September 30, 2029, when the 

rates would be lowered to current rates. The proposed rates are 

listed below: 

Down payment and Use Current Rates 

Proposed Rates From 

1/1/2020, through 1/1/2022 

Change in 

Percent 

No Money Down, 1st Use ...................................................................... 2.15% 2.30% 0.15% 

5% or more, 1st Use ............................................................................ 1.50% 1.65% 0.15% 

10% or more, 1st Use .......................................................................... 1.25% 1.40% 0.15% 

Subsequent Use .................................................................................... 3.30% 3.60% 0.30% 

For loans that close on or after January 1, 2022, the current loan 

funding fee rates would be in effect until September 30, 2029. The 

Committee believes that these modest increases would have minimal impact on the home loan market and would not seriously limit 

a veteran or a servicemember’s ability to use their home loan benefit. 

The section would also eliminate the current .25 percent premium that members of the National Guard and Reserve pay on top 

of current funding fees rates. The Committee believes this change 

would provide equity between the benefit provided to these 

servicemembers with veterans and active duty servicemembers. 

This section would also make servicemembers on active duty who 

have been awarded a Purple Heart exempt from the funding fee. 

These servicemembers are currently required to pay the funding 

fee, which the Committee believes disincentivizes them from using 

their home loan benefit. In most cases, the servicemember could 

separate from active duty and then file for disability compensation 

(presumably for the injury that led to the Purple Heart award). Because a service connected veteran is exempt from the funding fee, 

the discharged servicemember would receive the waiver. However, 

an active duty servicemember who has not yet been discharged, but 

has already received the Purple Heart, would not currently receive 

the waiver. H.R. 299, as amended, changes that. The Committee 

believes this change is important to help these servicemembers use 

their earned home loan benefit. 


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Section 3731 of title 38, U.S.C., authorizes requirements and 

processes for the use of appraisals for VA-guaranteed home loans. 

Section 7 of H.R. 299, as amended, would amend section 3731(b) 

of title 38, U.S.C., to clarify that a VA may permit a VA-approved 

appraiser to make an appraisal based on information collected from 

a third party or what is known as a desktop appraisal. This change 

would increase efficiency and timeliness in VA home loan appraisals, which would make it easier for veterans to use their home loan 

benefit. 

HEARINGS

On May 1, 2019, the Subcommittee on Disability Assistance and 

Memorial Affairs conducted a legislative hearing on various bills 

introduced during the 116th Congress, including a draft amendment in the nature of a substitute to H.R. 299. 

The following witnesses testified: 

The Honorable Mark Takano, U.S. House of Representatives, 

41st Congressional District of California; The Honorable David 

P. Roe, U.S. House of Representatives, 1st Congressional District of Tennessee; The Honorable Conor Lamb, U.S. House of 

Representatives, 17th Congressional District of Pennsylvania; 

The Honorable Greg Steube, U.S. House of Representatives, 

17th District of Florida; The Honorable Julia Brownley, U.S. 

House of Representatives, 26th Congressional District of Florida; Mr. Matthew Sullivan, Deputy Under Secretary for Finance and Planning, National Cemetery Administration; accompanied by Mr. Kevin Friel, Deputy Director for Pension 

and Fiduciary, Veterans Benefits Administration; Dr. Patricia 

Hastings, Deputy Chief Consultant, Post Deployment Health 

Service, Veterans Health; Mr. Derrick Curtis, Director, Software Testing & 508, Enterprise Portfolio Management Division, Office of Information Technology; Ms. Melanie Brunson, 

Government Relations Officer, Blinded Veterans Association; 

Mr. Karl R. Horst, Major General, U.S. Army (Ret), President 

and Chief Executive Officer, Congressional Medal of Honor 

Foundation; Ms. Allison Adelle Hedge Coke, Distinguished Professor of Creative Writing, University of California, Riverside; 

Mr. Carlos Fuentes, Director, National Legislative Service, 

Veterans of Foreign Wars; Mr. Rick Weidman, Executive Director, Policy and Government Affairs, Vietnam Veterans of 

America; Mr. Chanin Nuntavong, Veterans Affairs and Rehabilitation Division Director, The American Legion; Mr. Shane 

L. Liermann, Assistant National Legislative Director, Disabled 

American Veterans; Dr. David A. Butler, Director, Office of 

Military and Veterans Health, Health and Medicine Division, 

The National Academies of Sciences, Engineering, and Medicine; Accompanied by Dr. Ourania Kosti, Senior Program Officer, Principal Investigator, Radiation Effects Research Foundation. The National Academies of Sciences, Engineering, and 

Medicine. 

Statements for the record were submitted by: 

The Honorable Doug LaMalfa, U.S. House of Representatives, First Congressional District of California; Mr. John 

Wells, Executive Director, The Military-Veterans Advocacy; 

Mr. Keith Kiefer, National Commander, National Association 


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of Atomic Veterans; Mr. Robert Celestial, SGT, U.S. Army Retired (D.A.V.), Veteran who participated in Enewetak Cleanup; 

Mr. Ken Brownell, Veteran who participated in Enewetak 

Cleanup; The American Federation of Government Employees, 

AFL–CIO. 

On April 9, 2019, the Subcommittee on Economic Opportunity 

held a legislative hearing on several bills pending before the Subcommittee including a draft bill which incorporated portions of section six and seven of H.R. 299, as amended. 

The following witnesses testified: 

Ms. Margarita Devlin, Principal Deputy Under Secretary for 

Benefits, Veterans Benefits Administration of the U.S. Department of Veterans Affairs; Ms. Ashlynne Haycock, Senior Coordinator of Education Support at the Tragedy Assistance Program for Survivors; Mr. Patrick Murray, Deputy Director of 

National Legislative Service at The Veterans of Foreign Wars; 

Mr. John Kamin, Credentialing and Education Policy Association of National Veterans Employment and Education Division 

at The American Legion; Ms. Rebecca Burgess, Program Manager of Citizen Project at American Enterprise Institute. 

Statements for the record were submitted by: 

Mr. Jeremy M. Villanueva, Associate National Legislative 

Director at Disabled American Veterans; American Federation 

of Government Employees, AFL–CIO. 

SUBCOMMITTEE CONSIDERATION

H.R. 299 was not considered before the Subcommittee. 

COMMITTEE CONSIDERATION

On May 8, 2019, the Full Committee met in an open markup session, a quorum being present, and ordered H.R. 299, as amended, 

favorably reported to the House of Representatives by voice vote. 

During consideration of the bill, the following amendments were 

considered and agreed to by voice vote: 

An amendment in the nature of a substitute offered by Representative Mark Takano of California, the Chairman of the 

full committee, that would allow VA to issue guidance regarding the implementation of benefits for Korean DMZ veterans 

and certain children of Thailand veterans, and make adjustments to home loan fees. 

An amendment to the amendment in the nature of a substitute offered by Representative David P. Roe of Tennessee, 

the Ranking Member of the full committee, that would make 

improvements to VA’s Home Loan Guaranty program to ensure 

that veterans can use their home loan benefit in high-cost 

areas and clarify the rules for active duty servicemembers who 

receive a Purple Heart award are exempt from home loan fees. 


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COMMITTEE VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, there were no recorded votes taken on 

amendments or in connection with ordering H.R. 299, as amended, 

reported to the House. A motion by Ranking Member David P. Roe 

of Tennessee to report H.R. 299, as amended, favorably to the 

House of Representatives was adopted by voice vote. 

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. 

NEW BUDGET AUTHORITY AND CBO COST ESTIMATE

COMMITTEE COST ESTIMATE

With respect to the requirements of clause 3(c)(2) of rule XIII of 

the Rules of the House of Representatives and section 308(a) of the 

Congressional Budget Act of 1974 and with respect to requirements 

of clause (3)(c)(3) of rule XIII of the Rules of the House of Representatives and section 402 of the Congressional Budget Act of 

1974, the Committee has requested but not received a cost estimate 

for this bill from the Director of Congressional Budget Office. The 

Committee has requested but not received from the Director of the 

Congressional Budget Office a statement as to whether this bill 

contains any new budget authority, spending authority, credit authority, or an increase or decrease in revenues or tax expenditures. 

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 are to establish a presumption of service connection for 

diseases associated with exposure to certain herbicide agents to 

Blue Water Navy veterans who served offshore of the Republic of 

Vietnam and to some veterans who served in or near the Korean 

DMZ between September 1, 1967, and August 31, 1971; to expand 

eligibility for benefits to certain children of Vietnam era veterans 

who served in Thailand; to submit reports to the Committees on 

Veterans’ Affairs of the House of Representatives and the Senate 

regarding claims for compensation under this act, the use of herbicide agents in Thailand between January 9, 1962, and May 7, 1975, 

and Gulf War Illness; and, to improve veterans’ and 

servicemembers’ access to their home loan benefits. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, 

AND TAX EXPENDITURES

In compliance with 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 1974. 


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EARMARKS AND TAX AND TARIFF BENEFITS

H.R. 299, 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. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates regarding H.R. 299, as amended, prepared by the Director of 

the Congressional Budget Office pursuant to section 423 of the Unfunded Mandates Reform Act. 

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. 299, as 

amended. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to Article I, section 8 of the United States Constitution, 

H.R. 299, as amended, is authorized by Congress’ power to ‘‘provide 

for the common Defense and general Welfare of the United States.’’ 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that H.R. 299, 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. 

299, as amended, establishes or reauthorizes 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

Sec. 1. Short title 

Section 1 states H.R. 299, as amended, may be cited as the ‘‘Blue 

Water Navy Vietnam Veterans Act of 2019.’’ 

Sec. 2. Clarification of presumptions of exposure for veterans who 

served in vicinity of Republic of Vietnam 

Section 2 would: 

(a) Extend the presumption of exposure to herbicides for purposes of entitlement to service connection for certain diseases 

linked to exposure to herbicides to BWN veterans who served offshore of the Republic of Vietnam between January 9, 1962, and 

May 7, 1975. Veterans who filed a claim for VA benefits for diseases and conditions VA recognizes as associated with exposure to 

herbicides for benefits under this Act between September 25, 1985, 


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and January 1, 2020, but were denied benefits, may file a new 

claim. The effective date for the claim would be the date the veteran filed the first claim. This section would also define the term 

‘‘herbicide agent.’’ 

(b) Make a clerical amendment. 

(c) Allows the Secretary to issue guidance to implement this section prior to prescribing new regulations, subject to a reporting requirement regarding the status of those regulations. 

(d) Require the Secretary to conduct outreach to veterans who 

served offshore of the Republic of Vietnam during the period beginning on January 9, 1962, and ending on May 7, 1975, and who filed 

a claim for benefits between September 25, 1985, and January 1, 

2020, of the ability to submit a new claim. 

(e) Require VA to submit reports to the Committees on Veterans’ 

Affairs of the House of Representatives and the Senate on claims 

for disability compensation under this section. 

(f) Amend section 1710(e)(4) to establish eligibility for hospital 

care, medical services, and nursing home care to certain veterans 

who served offshore of the Republic of Vietnam. 

(g) Establish the effective date of this section as January 1, 2020. 

Sec. 3. Presumption of herbicide exposure for certain veterans who 

served in Korea 

Section 3 would: 

(a) Extend the presumption of herbicide exposure for purposes of 

entitlement to service connection for certain diseases to veterans 

who served in or near the Korean DMZ between September 1, 

1967, and August 31, 1971. This section would also define the 

terms ‘‘diseases’’ and ‘‘herbicide agent’’ 

(b) Make a clerical amendment. 

(c) Allows the Secretary to issue guidance to implement this section prior to prescribing new regulations, subject to a reporting requirement regarding the status of those regulations. 

(d) Establish the effective date of this section as January 1, 2020. 

Sec. 4. Benefits for children of certain Thailand service veterans 

born with spina bifida 

Section 4 would: 

(a) Extend eligibility for health care, vocational training and rehabilitation, and monetary allowance to a child who was born with 

spina bifida, if at least one biological parent of such child was a 

veteran who served in Thailand between January 9, 1962, and May 

7, 1975, and the Secretary determined that at least one of the parents may have been exposed to an herbicide agent during such 

service in Thailand. 

(b) Make conforming amendments. 

(c) Make clerical amendments. 

(d) Allows the Secretary to issue guidance to implement this section prior to prescribing new regulations, subject to a reporting requirement regarding the status of those regulations. 

(e) Require, not later than 180 days after the date of enactment 

of this Act, VA, in consultation with DOD, to submit a report to 

the Committees on Veterans’ Affairs of the House of Representatives and the Senate identifying the military installations located 


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in Thailand between January 9, 1962, and May 7, 1975, at which 

an herbicide agent was actively used and the period of such use. 

(f) Establish the effective date of this section as January 1, 2020. 

Sec. 5. Report on certain Gulf War illness study 

Section 5 would require, not later than 180 days after the date 

of enactment of this Act, VA to submit to the Committees on Veterans’ Affairs of the House of Representatives and the Senate a report on the Follow-up Study of a National Cohort of Gulf War and 

Gulf Era Veterans under VA’s epidemiology program. 

Sec. 6. Loans guaranteed under home loan program of Department 

of Veterans Affairs 

Section 6 would: 

(a) Amend section 3703(a) of title 38, U.S.C., to eliminate the 

limitation of use of the VA home loan program to the Freddie Mac 

Conforming loan limit as set forth by section 1454(a)(2) of title 12, 

U.S.C. 

(b) Amend section 3729(b)(2) of title 38, U.S.C., to provide temporary increases to home loan funding rates through January 1, 

2022. This section would also eliminate the additional .25 percent 

funding fee in place for members of the National Guard and Reserve. 

(c) Provide waivers of home loan fees for active duty 

servicemembers who were awarded the Purple Heart. 

(d) Establish the effective date of this section as January 1, 2020. 

(e) Authorize, notwithstanding section 501 of title 38, U.S.C., VA 

to issue guidance for implementing this section in advance of regulations. 

Sec. 7. Information gathering for Department of Veterans Affairs 

home loan appraisals 

Section 7 would: 

(a) Amend section 3731(b) of title 38, U.S.C., to authorize VA to 

permit a VA approved appraiser to complete an appraisal for a VAbacked loan based solely on information gathered by a third party. 

(b) States that the amendments made by this section would go 

into effect on January 1, 2020. 

(c) Authorize, notwithstanding section 501 of title 38, U.S.C., VA 

to issue guidance for implementing this section in advance of regulations. 

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 italic, 

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 italic, 


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and existing law in which no change is proposed is shown in 

roman): 

TITLE 38, UNITED STATES CODE 

* * * * * * * 

PART II—GENERAL BENEFITS 

* * * * * * * 

CHAPTER 11—COMPENSATION FOR SERVICECONNECTED DISABILITY OR DEATH 

* * * * * * * 

SUBCHAPTER II—WARTIME DISABILITY COMPENSATION 

* * * * * * * 

Sec. 

1110. Basic entitlement. 

* * * * * * * 

1116A. Presumptions of service connection for veterans who served offshore of the Republic of Vietnam. 

1116B. Presumption of herbicide exposure for certain veterans who served in Korea. 

* * * * * * * 

§ 1116A. Presumptions of service connection for veterans who 

served offshore of the Republic of Vietnam 

(a) SERVICE CONNECTION.—For the purposes of section 1110 of 

this title, and subject to section 1113 of this title, a disease covered 

by section 1116 of this title becoming manifest as specified in that 

section in a veteran who, during active military, naval, or air service, served offshore of the Republic of Vietnam during the period beginning on January 9, 1962, and ending on May 7, 1975, shall be 

considered to have been incurred in or aggravated by such service, 

notwithstanding that there is no record of evidence of such disease 

during the period of such service. 

(b) EXPOSURE.—A veteran who, during active military, naval, or 

air service, served offshore of the Republic of Vietnam during the period beginning on January 9, 1962, and ending on May 7, 1975, 

shall be presumed to have been exposed during such service to an 

herbicide agent unless there is affirmative evidence to establish that 

the veteran was not exposed to any such agent during that service. 

(c) EFFECTIVE DATE OF AWARD.—(1) Except as provided by paragraph (2), the effective date of an award under this section shall be 

determined in accordance with section 5110 of this title. 

(2)(A) Notwithstanding subsection (g) of section 5110 of this title, 

the Secretary shall determine the effective date of an award based 

on a claim under this section for an individual described in subparagraph (B) by treating the date on which the individual filed the 

prior claim specified in clause (i) of such subparagraph as the date 

on which the individual filed the claim so awarded under this section. 

(B) An individual described in this subparagraph is a veteran, or 

a survivor of a veteran, who meets the following criteria: 


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(i) The veteran or survivor submitted a claim for disability 

compensation on or after September 25, 1985, and before January 1, 2020, for a disease covered by this section, and the claim 

was denied by reason of the claim not establishing that the disease was incurred or aggravated by the service of the veteran. 

(ii) The veteran or survivor submits a claim for disability 

compensation on or after January 1, 2020, for the same condition covered by the prior claim under clause (i), and the claim 

is approved pursuant to this section. 

(d) DETERMINATION OF OFFSHORE.—Notwithstanding any other 

provision of law, for purposes of this section, the Secretary shall 

treat a location as being offshore of Vietnam if the location is not 

more than 12 nautical miles seaward of a line commencing on the 

southwestern demarcation line of the waters of Vietnam and Cambodia and intersecting the following points: 

Points Geographic Names Latitude 

North 

Longitude 

East 

At Hon Nhan Island, Tho Chu Archipelago Kien Giang Province 9°15.0′ 103°27.0′ 

At Hon Da Island southeast of Hon Khoai Island Minh Hai 

Province 8°22.8′ 104°52.4′ 

At Tai Lon Islet, Con Dao Islet in Con Dao-Vung Toa Special 

Sector 8°37.8′ 106°37.5′ 

At Bong Lai Islet, Con Dao Islet 8°38.9′ 106°40.3′ 

At Bay Canh Islet, Con Dao Islet 8°39.7′ 106°42.1′ 

At Hon Hai Islet (Phu Qui group of islands) Thuan Hai Province 9°58.0′ 109°5.0′ 

At Hon Doi Islet, Thuan Hai Province 12°39.0′ 109°28.0′ 

At Dai Lanh point, Phu Khanh Province 12°53.8′ 109°27.2′ 

At Ong Can Islet, Phu Khanh Province 13°54.0′ 109°21.0′ 

At Ly Son Islet, Nghia Binh Province 15°23.1′ 109° 9.0′ 

At Con Co Island, Binh Tri Thien Province 17°10.0′ 107°20.6′ 

(e) HERBICIDE AGENT.—In this section, the term ‘‘herbicide agent’’ 

has the meaning given that term in section 1116(a)(3) of this title. 

§ 1116B. Presumption of herbicide exposure for certain veterans who served in Korea 

(a) PRESUMPTION OF SERVICE-CONNECTION.—(1) For the purposes 

of section 1110 of this title, and subject to section 1113 of this title, 

a disease specified in subsection (b) that becomes manifest as specified in that subsection in a veteran described in paragraph (2) shall 

be considered to have been incurred or aggravated in the line of 

duty in the active military, naval, or air service, notwithstanding 

that there is no record of evidence of such disease during the period 

of such service. 

(2) A veteran described in this paragraph is a veteran who, during active military, naval, or air service, served in or near the Korean Demilitarized Zone (DMZ), during the period beginning on 

September 1, 1967, and ending on August 31, 1971. 

(b) DISEASES.—A disease specified in this subsection is— 

(1) a disease specified in paragraph (2) of subsection (a) of 

section 1116 of this title that becomes manifest as specified in 

that paragraph; or 

(2) any additional disease that— 


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(A) the Secretary determines in regulations warrants a 

presumption of service-connection by reason of having positive association with exposure to an herbicide agent; and 

(B) becomes manifest within any period prescribed in 

such regulations. 

(c) HERBICIDE AGENT.—For purposes of this section, the term 

‘‘herbicide agent’’ has the meaning given such term in section 

1821(d) of this title. 

* * * * * * * 

CHAPTER 17—HOSPITAL, NURSING HOME, 

DOMICILIARY, AND MEDICAL CARE 

* * * * * * * 

SUBCHAPTER II—HOSPITAL, NURSING HOME, OR 

DOMICILIARY CARE AND MEDICAL TREATMENT 

§ 1710. Eligibility for hospital, nursing home, and domiciliary care 

(a)(1) The Secretary (subject to paragraph (4)) shall furnish hospital care and medical services which the Secretary determines to 

be needed— 

(A) to any veteran for a service-connected disability; and 

(B) to any veteran who has a service-connected disability 

rated at 50 percent or more. 

(2) The Secretary (subject to paragraph (4)) shall furnish hospital 

care and medical services, and may furnish nursing home care, 

which the Secretary determines to be needed to any veteran— 

(A) who has a compensable service-connected disability rated 

less than 50 percent or, with respect to nursing home care during any period during which the provisions of section 1710A(a) 

of this title are in effect, a compensable service-connected disability rated less than 70 percent; 

(B) whose discharge or release from active military, naval, or 

air service was for a disability that was incurred or aggravated 

in the line of duty; 

(C) who is in receipt of, or who, but for a suspension pursuant to section 1151 of this title (or both a suspension and the 

receipt of retired pay), would be entitled to disability compensation, but only to the extent that such veteran’s continuing eligibility for such care is provided for in the judgment 

or settlement provided for in such section; 

(D) who is a former prisoner of war, who was awarded the 

medal of honor under section 7271, 8291, or 9271 of title 10 or 

section 491 of title 14, or who was awarded the Purple Heart; 

(E) who is a veteran of the Mexican border period or of 

World War I; 

(F) who was exposed to a toxic substance, radiation, or other 

conditions, as provided in subsection (e); or 

(G) who is unable to defray the expenses of necessary care 

as determined under section 1722(a) of this title. 

(3) In the case of a veteran who is not described in paragraphs 

(1) and (2), the Secretary may, to the extent resources and facilities 

are available and subject to the provisions of subsections (f) and 


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(g), furnish hospital care, medical services, and nursing home care 

which the Secretary determines to be needed. 

(4) The requirement in paragraphs (1) and (2) that the Secretary 

furnish hospital care and medical services, the requirement in section 1710A(a) of this title that the Secretary provide nursing home 

care, the requirement in section 1710B of this title that the Secretary provide a program of extended care services, and the requirement in section 1745 of this title to provide nursing home care 

and prescription medicines to veterans with service-connected disabilities in State homes shall be effective in any fiscal year only to 

the extent and in the amount provided in advance in appropriations Acts for such purposes. 

(5) During any period during which the provisions of section 

1710A(a) of this title are not in effect, the Secretary may furnish 

nursing home care which the Secretary determines is needed to 

any veteran described in paragraph (1), with the priority for such 

care on the same basis as if provided under that paragraph. 

(b)(1) The Secretary may furnish to a veteran described in paragraph (2) of this subsection such domiciliary care as the Secretary 

determines is needed for the purpose of the furnishing of medical 

services to the veteran. 

(2) This subsection applies in the case of the following veterans: 

(A) Any veteran whose annual income (as determined under 

section 1503 of this title) does not exceed the maximum annual 

rate of pension that would be applicable to the veteran if the 

veteran were eligible for pension under section 1521(d) of this 

title. 

(B) Any veteran who the Secretary determines has no adequate means of support. 

(c) While any veteran is receiving hospital care or nursing home 

care in any Department facility, the Secretary may, within the limits of Department facilities, furnish medical services to correct or 

treat any non-service-connected disability of such veteran, in addition to treatment incident to the disability for which such veteran 

is hospitalized, if the veteran is willing, and the Secretary finds 

such services to be reasonably necessary to protect the health of 

such veteran. The Secretary may furnish dental services and treatment, and related dental appliances, under this subsection for a 

non-service-connected dental condition or disability of a veteran 

only (1) to the extent that the Secretary determines that the dental 

facilities of the Department to be used to furnish such services, 

treatment, or appliances are not needed to furnish services, treatment, or appliances for dental conditions or disabilities described 

in section 1712(a) of this title, or (2) if (A) such non-service-connected dental condition or disability is associated with or aggravating a disability for which such veteran is receiving hospital care, 

or (B) a compelling medical reason or a dental emergency requires 

furnishing dental services, treatment, or appliances (excluding the 

furnishing of such services, treatment, or appliances of a routine 

nature) to such veteran during the period of hospitalization under 

this section. 

(d) In no case may nursing home care be furnished in a hospital 

not under the direct jurisdiction of the Secretary except as provided 

in section 1720 of this title. 


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(e)(1)(A) A Vietnam-era herbicide-exposed veteran is eligible 

(subject to paragraph (2)) for hospital care, medical services, and 

nursing home care under subsection (a)(2)(F) for any disability, notwithstanding that there is insufficient medical evidence to conclude 

that such disability may be associated with such exposure. 

(B) A radiation-exposed veteran is eligible for hospital care, medical services, and nursing home care under subsection (a)(2)(F) for 

any disease suffered by the veteran that is— 

(i) a disease listed in section 1112(c)(2) of this title; or 

(ii) any other disease for which the Secretary, based on the 

advice of the Advisory Committee on Environmental Hazards, 

determines that there is credible evidence of a positive association between occurrence of the disease in humans and exposure 

to ionizing radiation. 

(C) Subject to paragraph (2) of this subsection, a veteran who 

served on active duty between August 2, 1990, and November 11, 

1998, in the Southwest Asia theater of operations during the Persian Gulf War is eligible for hospital care, medical services, and 

nursing home care under subsection (a)(2)(F) for any disability, notwithstanding that there is insufficient medical evidence to conclude 

that such disability may be associated with such service. 

(D) Subject to paragraphs (2) and (3), a veteran who served on 

active duty in a theater of combat operations (as determined by the 

Secretary in consultation with the Secretary of Defense) during a 

period of war after the Persian Gulf War, or in combat against a 

hostile force during a period of hostilities after November 11, 1998, 

is eligible for hospital care, medical services, and nursing home 

care under subsection (a)(2)(F) for any illness, notwithstanding that 

there is insufficient medical evidence to conclude that such condition is attributable to such service. 

(E) Subject to paragraph (2), a veteran who participated in a test 

conducted by the Department of Defense Deseret Test Center as 

part of a program for chemical and biological warfare testing from 

1962 through 1973 (including the program designated as ‘‘Project 

Shipboard Hazard and Defense (SHAD)’’ and related land-based 

tests) is eligible for hospital care, medical services, and nursing 

home care under subsection (a)(2)(F) for any illness, notwithstanding that there is insufficient medical evidence to conclude 

that such illness is attributable to such testing. 

(F) Subject to paragraph (2), a veteran who served on active duty 

in the Armed Forces at Camp Lejeune, North Carolina, for not 

fewer than 30 days during the period beginning on August 1, 1953, 

and ending on December 31, 1987, is eligible for hospital care and 

medical services under subsection (a)(2)(F) for any of the following 

illnesses or conditions, notwithstanding that there is insufficient 

medical evidence to conclude that such illnesses or conditions are 

attributable to such service: 

(i) Esophageal cancer. 

(ii) Lung cancer. 

(iii) Breast cancer. 

(iv) Bladder cancer. 

(v) Kidney cancer. 

(vi) Leukemia. 

(vii) Multiple myeloma. 

(viii) Myelodysplastic syndromes. 


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(ix) Renal toxicity. 

(x) Hepatic steatosis. 

(xi) Female infertility. 

(xii) Miscarriage. 

(xiii) Scleroderma. 

(xiv) Neurobehavioral effects. 

(xv) Non-Hodgkin’s lymphoma. 

(2)(A) In the case of a veteran described in paragraph (1)(A), hospital care, medical services, and nursing home care may not be provided under subsection (a)(2)(F) with respect to— 

(i) a disability that is found, in accordance with guidelines 

issued by the Under Secretary for Health, to have resulted 

from a cause other than an exposure described in paragraph 

(4)(A)(ii); or 

(ii) a disease for which the National Academy of Sciences, in 

a report issued in accordance with section 3 of the Agent Orange Act of 1991, has determined that there is limited or suggestive evidence of the lack of a positive association between 

occurrence of the disease in humans and exposure to a herbicide agent. 

(B) In the case of a veteran described in subparagraph (C), (D), 

(E), or (F) of paragraph (1), hospital care, medical services, and 

nursing home care may not be provided under subsection (a)(2)(F) 

with respect to a disability that is found, in accordance with guidelines issued by the Under Secretary for Health, to have resulted 

from a cause other than the service or testing described in such 

subparagraph. 

(3) In the case of care for a veteran described in paragraph 

(1)(D), hospital care, medical services, and nursing home care may 

be provided under or by virtue of subsection (a)(2)(F) only during 

the following periods: 

(A) Except as provided by subparagraph (B), with respect to 

a veteran described in paragraph (1)(D) who is discharged or 

released from the active military, naval, or air service after 

January 27, 2003, the five-year period beginning on the date 

of such discharge or release. 

(B) With respect to a veteran described in paragraph (1)(D) 

who is discharged or released from the active military, naval, 

or air service after January 1, 2009, and before January 1, 

2011, but did not enroll to receive such hospital care, medical 

services, or nursing home care pursuant to such paragraph 

during the five-year period described in subparagraph (A), the 

one-year period beginning on the date of the enactment of the 

Clay Hunt Suicide Prevention for American Veterans Act. 

(C) With respect to a veteran described in paragraph (1)(D) 

who is discharged or released from the active military, naval, 

or air service on or before January 27, 2003, and did not enroll 

in the patient enrollment system under section 1705 of this 

title on or before such date, the three-year period beginning on 

January 27, 2008. 

(4) For purposes of this subsection— 

(A) The term ‘‘Vietnam-era herbicide-exposed veteran’’ means 

a veteran (i) who served on active duty in the Republic of Vietnam (including offshore of such Republic as described in section 

1116A(d) of this title) during the period beginning on January 


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9, 1962, and ending on May 7, 1975, and (ii) who the Secretary 

finds may have been exposed during such service to dioxin or 

was exposed during such service to a toxic substance found in 

a herbicide or defoliant used for military purposes during such 

period. 

(B) The term ‘‘radiation-exposed veteran’’ has the meaning 

given that term in section 1112(c)(3) of this title. 

(5) When the Secretary first provides care for veterans using the 

authority provided in paragraph (1)(D), the Secretary shall establish a system for collection and analysis of information on the general health status and health care utilization patterns of veterans 

receiving care under that paragraph. Not later than 18 months 

after first providing care under such authority, the Secretary shall 

submit to Congress a report on the experience under that authority. The Secretary shall include in the report any recommendations 

of the Secretary for extension of that authority. 

(f)(1) The Secretary may not furnish hospital care or nursing 

home care (except if such care constitutes hospice care) under this 

section to a veteran who is eligible for such care under subsection 

(a)(3) of this section unless the veteran agrees to pay to the United 

States the applicable amount determined under paragraph (2) or 

(4) of this subsection. 

(2) A veteran who is furnished hospital care or nursing home 

care under this section and who is required under paragraph (1) of 

this subsection to agree to pay an amount to the United States in 

order to be furnished such care shall be liable to the United States 

for an amount equal to— 

(A) the lesser of— 

(i) the cost of furnishing such care, as determined by the 

Secretary; or 

(ii) the amount determined under paragraph (3) of this 

subsection; and 

(B) before September 30, 2020, an amount equal to $10 for 

every day the veteran receives hospital care and $5 for every 

day the veteran receives nursing home care. 

(3)(A) In the case of hospital care furnished during any 365-day 

period, the amount referred to in paragraph (2)(A)(ii) of this subsection is— 

(i) the amount of the inpatient Medicare deductible, plus 

(ii) one-half of such amount for each 90 days of care (or fraction thereof) after the first 90 days of such care during such 

365-day period. 

(B) In the case of nursing home care furnished during any 365- 

day period, the amount referred to in paragraph (2)(A)(ii) of this 

subsection is the amount of the inpatient Medicare deductible for 

each 90 days of such care (or fraction thereof) during such 365-day 

period. 

(C)(i) Except as provided in clause (ii) of this subparagraph, in 

the case of a veteran who is admitted for nursing home care under 

this section after being furnished, during the preceding 365-day period, hospital care for which the veteran has paid the amount of 

the inpatient Medicare deductible under this subsection and who 

has not been furnished 90 days of hospital care in connection with 

such payment, the veteran shall not incur any liability under paraVerDate Sep 11 2014 01:14 May 12, 2019 Jkt 089006 PO 00000 Frm 00031 Fmt 6659 Sfmt 6602 E:\HR\OC\HR058.XXX HR058

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graph (2) of this subsection with respect to such nursing home care 

until— 

(I) the veteran has been furnished, beginning with the first 

day of such hospital care furnished in connection with such 

payment, a total of 90 days of hospital care and nursing home 

care; or 

(II) the end of the 365-day period applicable to the hospital 

care for which payment was made, 

whichever occurs first. 

(ii) In the case of a veteran who is admitted for nursing home 

care under this section after being furnished, during any 365-day 

period, hospital care for which the veteran has paid an amount 

under subparagraph (A)(ii) of this paragraph and who has not been 

furnished 90 days of hospital care in connection with such payment, the amount of the liability of the veteran under paragraph 

(2) of this subsection with respect to the number of days of such 

nursing home care which, when added to the number of days of 

such hospital care, is 90 or less, is the difference between the inpatient Medicare deductible and the amount paid under such subparagraph until— 

(I) the veteran has been furnished, beginning with the first 

day of such hospital care furnished in connection with such 

payment, a total of 90 days of hospital care and nursing home 

care; or 

(II) the end of the 365-day period applicable to the hospital 

care for which payment was made, 

whichever occurs first. 

(D) In the case of a veteran who is admitted for hospital care 

under this section after having been furnished, during the preceding 365-day period, nursing home care for which the veteran 

has paid the amount of the inpatient Medicare deductible under 

this subsection and who has not been furnished 90 days of nursing 

home care in connection with such payment, the veteran shall not 

incur any liability under paragraph (2) of this subsection with respect to such hospital care until— 

(i) the veteran has been furnished, beginning with the first 

day of such nursing home care furnished in connection with 

such payment, a total of 90 days of nursing home care and hospital care; or 

(ii) the end of the 365-day period applicable to the nursing 

home care for which payment was made, 

whichever occurs first. 

(E) A veteran may not be required to make a payment under this 

subsection for hospital care or nursing home care furnished under 

this section during any 90-day period in which the veteran is furnished medical services under paragraph (3) of subsection (a) to the 

extent that such payment would cause the total amount paid by 

the veteran under this subsection for hospital care and nursing 

home care furnished during that period and under subsection (g) 

for medical services furnished during that period to exceed the 

amount of the inpatient Medicare deductible in effect on the first 

day of such period. 

(F) A veteran may not be required to make a payment under this 

subsection or subsection (g) for any days of care in excess of 360 

days of care during any 365-calendar-day period. 


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(4) In the case of a veteran covered by this subsection who is also 

described by section 1705(a)(7) of this title, the amount for which 

the veteran shall be liable to the United States for hospital care 

under this subsection shall be an amount equal to 20 percent of the 

total amount for which the veteran would otherwise be liable for 

such care under subparagraphs (2)(B) and (3)(A) but for this paragraph. 

(5) For the purposes of this subsection, the term ‘‘inpatient Medicare deductible’’ means the amount of the inpatient hospital deductible in effect under section 1813(b) of the Social Security Act 

(42 U.S.C. 1395e(b)) on the first day of the 365-day period applicable under paragraph (3) of this subsection. 

(g)(1) The Secretary may not furnish medical services (except if 

such care constitutes hospice care) under subsection (a) of this section (including home health services under section 1717 of this 

title) to a veteran who is eligible for hospital care under this chapter by reason of subsection (a)(3) of this section unless the veteran 

agrees to pay to the United States in the case of each outpatient 

visit the applicable amount or amounts established by the Secretary by regulation. 

(2) A veteran who is furnished medical services under subsection 

(a) of this section and who is required under paragraph (1) of this 

subsection to agree to pay an amount to the United States in order 

to be furnished such services shall be liable to the United States, 

in the case of each visit in which such services are furnished to the 

veteran, for an amount which the Secretary shall establish by regulation. 

(3) This subsection does not apply with respect to the following: 

(A) Home health services under section 1717 of this title to 

the extent that such services are for improvements and structural alterations. 

(B) Education on the use of opioid antagonists to reverse the 

effects of overdoses of specific medications or substances. 

(h) Nothing in this section requires the Secretary to furnish care 

to a veteran to whom another agency of Federal, State, or local government has a duty under law to provide care in an institution of 

such government. 

* * * * * * * 

CHAPTER 18—BENEFITS FOR CHILDREN OF VIETNAM 

VETERANS AND CERTAIN OTHER VETERANS 

* * * * * * * 

øSUBCHAPTER III—CHILDREN OF CERTAIN KOREA SERVICE VETERANS 

BORN WITH SPINA BIFIDA¿ 

SUBCHAPTER III—CHILDREN OF CERTAIN KOREA AND THAILAND 

SERVICE VETERANS BORN WITH SPINA BIFIDA 

1821. Benefits for children of certain Korea service veterans born with spina bifida. 

1822. Benefits for children of certain Thailand service veterans born with spina 

bifida. 

* * * * * * * 


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SUBCHAPTER III—CHILDREN OF CERTAIN KOREA AND 

THAILAND SERVICE VETERANS BORN WITH SPINA BIFIDA 

* * * * * * * 

§ 1822. Benefits for children of certain Thailand service veterans born with spina bifida 

(a) BENEFITS AUTHORIZED.—The Secretary may provide to any 

child of a veteran of covered service in Thailand who is suffering 

from spina bifida the health care, vocational training and rehabilitation, and monetary allowance required to be paid to a child of a 

Vietnam veteran who is suffering from spina bifida under subchapter I of this chapter as if such child of a veteran of covered 

service in Thailand were a child of a Vietnam veteran who is suffering from spina bifida under such subchapter. 

(b) SPINA BIFIDA CONDITIONS COVERED.—This section applies 

with respect to all forms and manifestations of spina bifida, except 

spina bifida occulta. 

(c) VETERAN OF COVERED SERVICE IN THAILAND.—For purposes of 

this section, a veteran of covered service in Thailand is any individual, without regard to the characterization of that individual’s 

service, who— 

(1) served in the active military, naval, or air service in Thailand, as determined by the Secretary in consultation with the 

Secretary of Defense, during the period beginning on January 

9, 1962, and ending on May 7, 1975; and 

(2) is determined by the Secretary, in consultation with the 

Secretary of Defense, to have been exposed to a herbicide agent 

during such service in Thailand. 

(d) HERBICIDE AGENT.—For purposes of this section, the term 

‘‘herbicide agent’’ means a chemical in a herbicide used in support 

of United States and allied military operations in Thailand, as determined by the Secretary in consultation with the Secretary of Defense, during the period beginning on January 9, 1962, and ending 

on May 7, 1975. 

SUBCHAPTER IV—GENERAL PROVISIONS 

§ 1831. Definitions 

In this chapter: 

(1) The term ‘‘child’’ means the following: 

(A) For purposes of subchapters I and II of this chapter, 

an individual, regardless of age or marital status, who— 

(i) is the natural child of a Vietnam veteran; and 

(ii) was conceived after the date on which that veteran first entered the Republic of Vietnam during the 

Vietnam era. 

(B) For purposes of øsubchapter III of this chapter¿ section 1821 of this title, an individual, regardless of age or 

marital status, who— 

(i) is the natural child of a veteran of covered service 

in Korea (as determined for purposes of øsection 1821 

of this title¿ that section); and 

(ii) was conceived after the date on which that veteran first entered service described in subsection (c) of 

that section. 


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(C) For purposes of section 1822 of this title, an individual, regardless of age or marital status, who— 

(i) is the natural child of a veteran of covered service 

in Thailand (as determined for purposes of that section); and 

(ii) was conceived after the date on which that veteran first entered service described in subsection (c) of 

that section. 

(2) The term ‘‘Vietnam veteran’’ means an individual who 

performed active military, naval, or air service in the Republic 

of Vietnam during the Vietnam era, without regard to the 

characterization of that individual’s service. 

(3) The term ‘‘Vietnam era’’ with respect to— 

(A) subchapter I of this chapter, means the period beginning on January 9, 1962, and ending on May 7, 1975; and 

(B) subchapter II of this chapter, means the period beginning on February 28, 1961, and ending on May 7, 1975. 

* * * * * * * 

PART III—READJUSTMENT AND RELATED 

BENEFITS 

* * * * * * * 

CHAPTER 37—HOUSING AND SMALL BUSINESS LOANS 

* * * * * * * 

SUBCHAPTER I—GENERAL 

* * * * * * * 

§ 3703. Basic provisions relating to loan guaranty and insurance 

(a)(1)(A) Any loan to a veteran eligible for benefits under this 

chapter, if made for any of the purposes specified in section 3710 

of this title and in compliance with the provisions of this chapter, 

is automatically guaranteed by the United States in an amount not 

to exceed the lesser of— 

(i)(I) in the case of any loan of not more than $45,000, 50 

percent of the loan; 

(II) in the case of any loan of more than $45,000, but not 

more than $56,250, $22,500; 

(III) except as provided in subclause (IV) of this clause, in 

the case of any loan of more than $56,250, the lesser of $36,000 

or 40 percent of the loan; or 

(IV) in the case of any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of section 

3710(a) of this title, øthe lesser of the maximum guaranty 

amount (as defined in subparagraph (C)) or¿ 25 percent of the 

loan; or 

(ii) the maximum amount of guaranty entitlement available 

to the veteran as specified in øsubparagraph (B) of this paragraph¿ subparagraph (B) or (C). 


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(B) øThe maximum¿ With respect to loans described in subclauses 

(I), (II), or (III) of subparagraph (A)(i), the maximum amount of 

guaranty entitlement available to a veteran for purposes specified 

in section 3710 of this title shall be $36,000, øor in the case of a 

loan described in subparagraph (A)(i)(IV) of this paragraph, the 

maximum guaranty amount (as defined in subparagraph (C)),¿ reduced by the amount of entitlement previously used by the veteran 

under this chapter and not restored as a result of the exclusion in 

section 3702(b) of this title. 

ø(C) In this paragraph, the term ‘‘maximum guaranty amount’’ 

means the dollar amount that is equal to 25 percent of the Freddie 

Mac conforming loan limit limitation determined under section 

305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 

U.S.C. 1454(a)(2)) for a single-family residence, as adjusted for the 

year involved.¿ 

(C)(i) With respect to loans described in subclause (IV) of subparagraph (A)(i) made to a veteran not covered by clause (ii), the 

maximum amount of guaranty entitlement available to the veteran 

shall be 25 percent of the loan. 

(ii) With respect to loans described in subclause (IV) of subparagraph (A)(i) made to a covered veteran, the maximum amount of 

guaranty entitlement available to the veteran shall be 25 percent of 

the Freddie Mac conforming loan limit, reduced by the amount of 

entitlement previously used by the veteran under this chapter and 

not restored as a result of the exclusion in section 3702(b) of this 

title. 

(iii) In this subparagraph: 

(I) The term ‘‘covered veteran’’ means a veteran who has previously used entitlement under this chapter and for whom the 

full amount of entitlement so used has not been restored as a 

result of the exclusion in section 3702(b) of this title. 

(II) The term ‘‘Freddie Mac conforming loan limit’’ means the 

limit determined under section 305(a)(2) of the Federal Home 

Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) for a single-family residence, as adjusted for the year involved. 

(2)(A) Any housing loan which might be guaranteed under the 

provisions of this chapter, when made or purchased by any financial institution subject to examination and supervision by any 

agency of the United States or of any State may, in lieu of such 

guaranty, be insured by the Secretary under an agreement whereby the Secretary will reimburse any such institution for losses incurred on such loan up to 15 per centum of the aggregate of loans 

so made or purchased by it. 

(B) Loans insured under this section shall be made on such other 

terms, conditions, and restrictions as the Secretary may prescribe 

within the limitations set forth in this chapter. 

(b) The liability of the United States under any guaranty, within 

the limitations of this chapter, shall decrease or increase pro rata 

with any decrease or increase of the amount of the unpaid portion 

of the obligation. 

(c)(1) Loans guaranteed or insured under this chapter shall be 

payable upon such terms and conditions as may be agreed upon by 

the parties thereto, subject to the provisions of this chapter and 

regulations of the Secretary issued pursuant to this chapter, and 

shall bear interest not in excess of such rate as the Secretary may 


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from time to time find the loan market demands, except that in establishing the rate of interest that shall be applicable to such 

loans, the Secretary shall consult with the Secretary of Housing 

and Urban Development regarding the rate of interest applicable 

to home loans insured under section 203(b) of the National Housing 

Act (12 U.S.C. 1709(b)). In establishing rates of interest under this 

paragraph for one or more of the purposes described in clauses (4) 

and (7) of section 3710(a) of this title, the Secretary may establish 

a rate or rates higher than the rate specified for other purposes 

under such section, but any such rate may not exceed such rate as 

the Secretary may from time to time find the loan market demands 

for loans for such purposes. 

(2) The provisions of the Servicemen’s Readjustment Act of 1944 

which were in effect before April 1, 1958, with respect to the interest chargeable on loans made or guaranteed under such Act shall, 

notwithstanding the provisions of paragraph (1) of this subsection, 

continue to be applicable— 

(A) to any loan made or guaranteed before April 1, 1958; and 

(B) to any loan with respect to which a commitment to guarantee was entered into by the Secretary before April 1, 1958. 

(3) This section shall not be construed to prohibit a veteran from 

paying to a lender any reasonable discount required by such lender, when the proceeds from the loan are to be used— 

(A) to refinance indebtedness pursuant to clause (5), (8), or 

(9)(B)(i) of section 3710(a) of this title or section 3712(a)(1)(F) 

of this title; 

(B) to repair, alter, or improve a farm residence or other 

dwelling pursuant to clauses (4) and (7) of section 3710(a) of 

this title; 

(C) to construct a dwelling or farm residence on land already 

owned or to be acquired by the veteran except where the land 

is directly or indirectly acquired from a builder or developer 

who has contracted to construct such dwelling for the veteran; 

(D) to purchase a dwelling from a class of sellers which the 

Secretary determines are legally precluded under all circumstances from paying such a discount if the best interest of 

the veteran would be so served; or 

(E) to refinance indebtedness and purchase a manufacturedhome lot pursuant to section 3710(a)(9)(B)(ii) or 3712(a)(1)(G) 

of this title, but only with respect to that portion of the loan 

used to refinance such indebtedness. 

(4)(A) In guaranteeing or insuring loans under this chapter, the 

Secretary may elect whether to require that such loans bear interest at a rate that is— 

(i) agreed upon by the veteran and the mortgagee; or 

(ii) established under paragraph (1). 

The Secretary may, from time to time, change the election under 

this subparagraph. 

(B) Any veteran, under a loan described in subparagraph (A)(i), 

may pay reasonable discount points in connection with the loan. 

Except in the case of a loan for the purpose specified in section 

3710(a)(8), 3710(b)(7), or 3712(a)(1)(F) of this title, discount points 

may not be financed as part of the principal amount of a loan guaranteed or insured under this chapter. 


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(C) Not later than 10 days after an election under subparagraph 

(A), the Secretary shall transmit to the Committees on Veterans’ 

Affairs of the Senate and House of Representatives a notification 

of the election, together with an explanation of the reasons therefor. 

(d)(1) The maturity of any housing loan at the time of origination 

shall not be more than thirty years and thirty-two days. 

(2)(A) Any loan for a term of more than five years shall be amortized in accordance with established procedure. 

(B) The Secretary may guarantee loans with provisions for various rates of amortization corresponding to anticipated variations 

in family income. With respect to any loan guaranteed under this 

subparagraph— 

(i) the initial principal amount of the loan may not exceed 

the reasonable value of the property as of the time the loan is 

made; and 

(ii) the principal amount of the loan thereafter (including the 

amount of all interest to be deferred and added to principal) 

may not at any time be scheduled to exceed the projected value 

of the property. 

(C) For the purposes of subparagraph (B) of this paragraph, the 

projected value of the property shall be calculated by the Secretary 

by increasing the reasonable value of the property as of the time 

the loan is made at a rate not in excess of 2.5 percent per year, 

but in no event may the projected value of the property for the purposes of such subparagraph exceed 115 percent of such reasonable 

value. A loan made for a purpose other than the acquisition of a 

single-family dwelling unit may not be guaranteed under such subparagraph. 

(3)(A) Any real estate housing loan (other than for repairs, alterations, or improvements) shall be secured by a first lien on the realty. In determining whether a loan is so secured, the Secretary 

may either disregard or allow for subordination to a superior lien 

created by a duly recorded covenant running with the realty in 

favor of either of the following: 

(i) A public entity that has provided or will provide assistance in response to a major disaster as determined by the 

President under the Robert T. Stafford Disaster Relief and 

Emergency Assistance Act (42 U.S.C. 5121 et seq.). 

(ii) A private entity to secure an obligation to such entity for 

the homeowner’s share of the costs of the management, operation, or maintenance of property, services, or programs within 

and for the benefit of the development or community in which 

the veteran’s realty is located, if the Secretary determines that 

the interests of the veteran borrower and of the Government 

will not be prejudiced by the operation of such covenant. 

(B) With respect to any superior lien described in subparagraph 

(A) created after June 6, 1969, the Secretary’s determination under 

clause (ii) of such subparagraph shall have been made prior to the 

recordation of the covenant. 

(e)(1) Except as provided in paragraph (2) of this subsection, an 

individual who pays a fee under section 3729 of this title, or who 

is exempted under section 3729(c) of this title from paying such fee, 

with respect to a housing loan guaranteed or insured under this 

chapter that is closed after December 31, 1989, shall have no liabilVerDate Sep 11 2014 01:14 May 12, 2019 Jkt 089006 PO 00000 Frm 00038 Fmt 6659 Sfmt 6602 E:\HR\OC\HR058.XXX HR058

dlhill on DSKBBY8HB2PROD with HEARING
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ity to the Secretary with respect to the loan for any loss resulting 

from any default of such individual except in the case of fraud, misrepresentation, or bad faith by such individual in obtaining the 

loan or in connection with the loan default. 

(2) The exemption from liability provided by paragraph (1) of this 

subsection shall not apply to— 

(A) an individual from whom a fee is collected (or who is exempted from such fee) under section 3729(b)(2)(I) of this title; 

or 

(B) a loan made for any purpose specified in section 3712 of 

this title. 

(f) The application for or obtaining of a loan made, insured, or 

guaranteed under this chapter shall not be subject to reporting requirements applicable to requests for, or receipts of, Federal contracts, grants, loans, loan guarantees, loan insurance, or cooperative agreements except to the extent that such requirements are 

provided for in, or by the Secretary pursuant to, this title. 

* * * * * * * 

SUBCHAPTER II—LOANS 

§ 3710. Purchase or construction of homes 

(a) Except as provided in section 3704(c)(2) of this title, any loan 

to a veteran, if made pursuant to the provisions of this chapter, is 

automatically guaranteed if such loan is for one or more of the following purposes: 

(1) To purchase or construct a dwelling to be owned and occupied by the veteran as a home. 

(2) To purchase a farm on which there is a farm residence 

to be owned and occupied by the veteran as the veteran’s 

home. 

(3) To construct on land owned by the veteran a farm residence to be occupied by the veteran as the veteran’s home. 

(4) To repair, alter, or improve a farm residence or other 

dwelling owned by the veteran and occupied by the veteran as 

the veteran’s home. 

(5) To refinance existing mortgage loans or other liens which 

are secured of record on a dwelling or farm residence owned 

and occupied by the veteran as the veteran’s home. 

(6) To purchase a one-family residential unit in a condominium housing development or project, if such development or 

project is approved by the Secretary under criteria which the 

Secretary shall prescribe in regulations. 

(7) To improve a dwelling or farm residence owned by the 

veteran and occupied by the veteran as the veteran’s home 

through energy efficiency improvements, as provided in subsection (d). 

(8) To refinance in accordance with subsection (e) of this section an existing loan guaranteed, insured, or made under this 

chapter. 

(9)(A)(i) To purchase a manufactured home to be permanently affixed to a lot that is owned by the veteran. 

(ii) To purchase a manufactured home and a lot to which the 

home will be permanently affixed. 


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(B)(i) To refinance, in accordance with the terms and conditions applicable under the provisions of subsection (e) of this 

section (other than paragraph (1)(E) of such subsection) to the 

guaranty of a loan for the purpose specified in clause (8) of this 

subsection, an existing loan guaranteed, insured, or made 

under this chapter that is secured by a manufactured home 

permanently affixed to a lot that is owned by the veteran. 

(ii) To refinance, in accordance with section 3712(a)(5) of this 

title, an existing loan that was made for the purchase of, and 

that is secured by, a manufactured home that is permanently 

affixed to a lot and to purchase the lot to which the manufactured home is affixed. 

(10) To purchase a dwelling to be owned and occupied by the 

veteran as a home and make energy efficiency improvements, 

as provided in subsection (d). 

(11) To refinance in accordance with subsection (e) an existing loan guaranteed, insured, or made under this chapter, and 

to improve the dwelling securing such loan through energy efficiency improvements, as provided in subsection (d). 

(12) With respect to a loan guaranteed after the date of the 

enactment of this paragraph and before the date that is five 

years after that date, to purchase stock or membership in a cooperative housing corporation for the purpose of entitling the 

veteran to occupy for dwelling purposes a single family residential unit in a development, project, or structure owned or 

leased by such corporation, in accordance with subsection (h). 

If there is an indebtedness which is secured by a lien against land 

owned by the veteran, the proceeds of a loan guaranteed under this 

section or made under section 3711 of this title for construction of 

a dwelling or farm residence on such land may be used also to liquidate such lien, but only if the reasonable value of the land is 

equal to or greater than the amount of the lien. 

(b) No loan may be guaranteed under this section or made under 

section 3711 of this title unless— 

(1) the proceeds of such loan will be used to pay for the property purchased, constructed, or improved; 

(2) the contemplated terms of payment required in any mortgage to be given in part payment of the purchase price or the 

construction cost bear a proper relation to the veteran’s 

present and anticipated income and expenses; 

(3) the veteran is a satisfactory credit risk, as determined in 

accordance with the credit underwriting standards established 

pursuant to subsection (g) of this section; 

(4) the nature and condition of the property is such as to be 

suitable for dwelling purposes; 

(5) except in the case of a loan described in clause (7) or (8) 

of this subsection, the loan to be paid by the veteran for such 

property or for the cost of construction, repairs, or alterations, 

does not exceed the reasonable value thereof as determined 

pursuant to section 3731 of this title; 

(6) if the loan is for repair, alteration, or improvement of 

property, such repair, alteration, or improvement substantially 

protects or improves the basic livability or utility of such property; 


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(7) in the case of a loan (other than a loan made for a purpose specified in subsection (a)(8) of this section) that is made 

to refinance— 

(A) a construction loan, 

(B) an installment land sales contract, or 

(C) a loan assumed by the veteran that provides for a 

lower interest rate than the loan being refinanced, 

the amount of the loan to be guaranteed or made does not exceed the lesser of— 

(i) the reasonable value of the dwelling or farm residence 

securing the loan, as determined pursuant to section 3731 

of this title; or 

(ii) the sum of the outstanding balance on the loan to be 

refinanced and the closing costs (including discounts) actually paid by the veteran, as specified by the Secretary in 

regulations; and 

(8) in the case of a loan to refinance a loan (other than a 

loan or installment sales contract described in clause (7) of this 

subsection or a loan made for a purpose specified in subsection 

(a)(8) of this section), the amount of the loan to be guaranteed 

or made does not exceed 100 percent of the reasonable value 

of the dwelling or farm residence securing the loan, as determined pursuant to section 3731 of this title. 

(d)(1) The Secretary shall carry out a program to demonstrate 

the feasibility of guaranteeing loans for the acquisition of an existing dwelling and the cost of making energy efficiency improvements to the dwelling or for energy efficiency improvements to a 

dwelling owned and occupied by a veteran. A loan may be guaranteed under this subsection only if it meets the requirements of this 

chapter, except as those requirements are modified by this subsection. 

(2) The cost of energy efficiency measures that may be financed 

by a loan guaranteed under this section may not exceed the greater 

of— 

(A) the cost of the energy efficiency improvements, up to 

$3,000; or 

(B) $6,000, if the increase in the monthly payment for principal and interest does not exceed the likely reduction in 

monthly utility costs resulting from the energy efficiency improvements. 

(3) Notwithstanding the provisions of section 3703(a)(1)(A) of this 

title, any loan guaranteed under this subsection shall be guaranteed in an amount equal to the sum of— 

(A) the guaranty that would be provided under those provisions for the dwelling without the energy efficiency improvements; and 

(B) an amount that bears the same relation to the cost of the 

energy efficiency improvements as the guaranty referred to in 

subparagraph (A) bears to the amount of the loan minus the 

cost of such improvements. 

(4) The amount of the veteran’s entitlement, calculated in accordance with øsection 3703(a)(1)(B) of this title¿ subparagraph (B) or 


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(C) of section 3703(a)(1) of this title, shall not be affected by the 

amount of the guaranty referred to in paragraph (3)(B). 

(5) The Secretary shall take appropriate actions to notify eligible 

veterans, participating lenders, and interested realtors of the availability of loan guarantees under this subsection and the procedures 

and requirements that apply to the obtaining of such guarantees. 

(6) For the purposes of this subsection: 

(A) The term ‘‘energy efficiency improvement’’ includes a 

solar heating system, a solar heating and cooling system, or a 

combined solar heating and cooling system, and the application 

of a residential energy conservation measure. 

(B) The term ‘‘solar heating’’ has the meaning given such 

term in section 3(1) of the Solar Heating and Cooling Demonstration Act of 1974 (42 U.S.C. 5502(1)) and, in addition, includes a passive system based on conductive, convective, or radiant energy transfer. 

(C) The terms ‘‘solar heating and cooling’’ and ‘‘combined 

solar heating and cooling’’ have the meaning given such terms 

in section 3(2) of the Solar Heating and Cooling Demonstration 

Act of 1974 (42 U.S.C. 5502(2)) and, in addition, include a passive system based on conductive, convective, or radiant energy 

transfer. 

(D) The term ‘‘passive system’’ includes window and skylight 

glazing, thermal floors, walls, and roofs, movable insulation 

panels (when in conjunction with glazing), portions of a residential structure that serve as solar furnaces so as to add heat 

to the structure, double-pane window insulation, and such 

other energy-related components as are determined by the Secretary to enhance the natural transfer of energy for the purpose of heating or heating and cooling a residence. 

(E) The term ‘‘residential energy conservation measure’’ 

means— 

(i) caulking and weatherstripping of all exterior doors 

and windows; 

(ii) furnace efficiency modifications limited to— 

(I) replacement burners, boilers, or furnaces designed to reduce the firing rate or to achieve a reduction in the amount of fuel consumed as a result of increased combustion efficiency, 

(II) devices for modifying flue openings which will 

increase the efficiency of the heating system, and 

(III) electrical or mechanical furnace ignition systems which replace standing gas pilot lights; 

(iii) clock thermostats; 

(iv) ceiling, attic, wall, and floor insulation; 

(v) water heater insulation; 

(vi) storm windows and doors; 

(vii) heat pumps; and 

(viii) such other energy conservation measures as the 

Secretary may identify for the purposes of this subparagraph. 

(e)(1) For a loan to be guaranteed for the purpose specified in 

subsection (a)(8) or for the purpose specified in subsection (a)(11) 

of this section— 


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(A) the interest rate of the loan must be less than the interest rate of the loan being refinanced or, in a case in which the 

loan is a fixed rate loan and the loan being refinanced is an 

adjustable rate loan, the loan bears interest at a rate that is 

agreed upon by the veteran and the mortgagee; 

(B) the loan must be secured by the same dwelling or farm 

residence as was the loan being refinanced; 

(C) the amount of the loan may not exceed— 

(i) an amount equal to the sum of the balance of the loan 

being refinanced and such closing costs (including any discount permitted pursuant to section 3703(c)(3)(A) of this 

title) as may be authorized by the Secretary (under regulations which the Secretary shall prescribe) to be included in 

the loan; or 

(ii) in the case of a loan for the purpose specified in subsection (a)(11), an amount equal to the sum of the amount 

referred to with respect to the loan under clause (i) and 

the amount specified under subsection (d)(2); 

(D) notwithstanding section 3703(a)(1) of this title, the 

amount of the guaranty of the loan may not exceed the greater 

of (i) the original guaranty amount of the loan being refinanced, or (ii) 25 percent of the loan; 

(E) the term of the loan may not exceed the original term of 

the loan being refinanced by more than 10 years; and 

(F) the veteran must own the dwelling or farm residence securing the loan and— 

(i) must occupy such dwelling or residence as such veteran’s home; 

(ii) must have previously occupied such dwelling or residence as such veteran’s home and must certify, in such 

form as the Secretary shall require, that the veteran has 

previously so occupied such dwelling or residence; or 

(iii) in any case in which a veteran is in active duty status as a member of the Armed Forces and is unable to occupy such residence or dwelling as a home because of such 

status, the spouse of the veteran must occupy, or must 

have previously occupied, such dwelling or residence as 

such spouse’s home and must certify such occupancy in 

such form as the Secretary shall require. 

(2) A loan to a veteran may be guaranteed by the Secretary 

under this chapter for the purpose specified in clause (8) of subsection (a) of this section without regard to the amount of outstanding guaranty entitlement available for use by such veteran, 

and the amount of such veteran’s guaranty entitlement shall not 

be charged as a result of any guaranty provided for such purpose. 

For purposes of section 3702(b) of this title, such loan shall be 

deemed to have been obtained with the guaranty entitlement used 

to obtain the loan being refinanced. 

(3) If a veteran is deceased and if such veteran’s surviving spouse 

was a co-obligor under an existing loan guaranteed, insured, or 

made under this chapter, such surviving spouse shall, only for the 

purpose specified in subsection (a)(8) of this section, be deemed to 

be a veteran eligible for benefits under this chapter. 

(f)(1) For a loan to be guaranteed for the purpose specified in 

subclause (A)(ii) or (B)(ii) of subsection (a)(9) of this section, the 


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purchase of (or the refinancing of a loan secured by) the manufactured home and the lot for that home shall be considered as one 

loan and must comply with such criteria as may be prescribed by 

the Secretary in regulations. 

(2) A loan may not be guaranteed for the purposes of subsection 

(a)(9) of this section unless the manufactured home purchased, 

upon being permanently affixed to the lot, is considered to be real 

property under the laws of the State where the lot is located. 

(g)(1) For the purposes of this subsection, the term ‘‘veteran’’, 

when used with respect to a loan guaranteed or to be guaranteed 

under this chapter, includes the veteran’s spouse if the spouse is 

jointly liable with the veteran under the loan. 

(2) For the purpose of determining whether a veteran meets the 

standards referred to in subsection (b)(3) of this section and section 

3712(e)(2) of this title, the Secretary shall prescribe regulations 

which establish— 

(A) credit underwriting standards to be used in evaluating 

loans to be guaranteed under this chapter; and 

(B) standards to be used by lenders in obtaining credit information and processing loans to be guaranteed under this chapter. 

(3) In the regulations prescribed under paragraph (2) of this 

subsection, the Secretary shall establish standards that include— 

(A) debt-to-income ratios to apply in the case of the veteran 

applying for the loan; 

(B) criteria for evaluating the reliability and stability of the 

income of the veteran applying for the loan; and 

(C) procedures for ascertaining the monthly income required 

by the veteran to meet the anticipated loan payment terms. 

If the procedures described in clause (C) of this paragraph include standards for evaluating residual income, the Secretary 

shall, in establishing such standards, give appropriate consideration to State statistics (in States as to which the Secretary 

determines that such statistics are reliable) pertinent to residual income and the cost of living in the State in question rather than in a larger region. 

(4)(A) Any lender making a loan under this chapter shall certify, 

in such form as the Secretary shall prescribe, that the lender has 

complied with the credit information and loan processing standards 

established under paragraph (2)(B) of this subsection, and that, to 

the best of the lender’s knowledge and belief, the loan meets the 

underwriting standards established under paragraph (2)(A) of this 

subsection. 

(B) Any lender who knowingly and willfully makes a false certification under subparagraph (A) of this paragraph shall be liable to 

the United States Government for a civil penalty equal to two 

times the amount of the Secretary’s loss on the loan involved or to 

another appropriate amount, not to exceed $10,000, whichever is 

greater. All determinations necessary to carry out this subparagraph shall be made by the Secretary. 

(5) Pursuant to regulations prescribed to carry out this paragraph, the Secretary may, in extraordinary situations, waive the 

application of the credit underwriting standards established under 

paragraph (2) of this subsection when the Secretary determines, 


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45 

considering the totality of circumstances, that the veteran is a satisfactory credit risk. 

(h)(1) A loan may not be guaranteed under subsection (a)(12) unless— 

(A) the development, project, or structure of the cooperative 

housing corporation complies with such criteria as the Secretary prescribes in regulations; and 

(B) the dwelling unit that the purchase of stock or membership in the development, project, or structure of the cooperative 

housing corporation entitles the purchaser to occupy is a single 

family residential unit. 

(2) In this subsection, the term ‘‘cooperative housing corporation’’ 

has the meaning given such term in section 216(b)(1) of the Internal Revenue Code of 1986. 

(3) When applying the term ‘‘value of the property’’ to a loan 

guaranteed under subsection (a)(12), such term means the appraised value of the stock or membership entitling the purchaser 

to the permanent occupancy of the dwelling unit in the development, project, or structure of the cooperative housing corporation. 

* * * * * * * 

SUBCHAPTER III—ADMINISTRATIVE PROVISIONS 

* * * * * * * 

§ 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 fee may be included in the loan and paid from the proceeds thereof. 

(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: 


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46 

øLOAN FEE TABLE 

øType of loan Active duty veteran Reservist Other obligor 

(A)(i) Initial loan described in 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 before 

January 1, 2004) 

2.00 2.75 NA 

(A)(ii) Initial loan described in 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, 

2004, and before 

October 1, 2004) 

2.20 2.40 NA 

(A)(iii) Initial loan described in 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 

September 30, 

2028) 

2.15 2.40 NA 

(A)(iv) Initial loan described in 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 September 30, 

2028) 

1.40 1.65 NA 


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47 

øLOAN FEE TABLE—Continued 

øType of loan Active duty veteran Reservist Other obligor 

(B)(i) Subsequent loan 

described in section 

3710 (a) to purchase 

or construct a 

dwelling with 0- 

down, or any other 

subsequent loan described in section 

3710 (a) (closed before September 30, 

2028) 

3.30 3.30 NA 

(B)(ii) Subsequent 

loan described in 

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 

September 30, 

2028) 

1.25 1.25 NA 

(C)(i) Loan described 

in section 3710 (a) 

to purchase or construct a dwelling 

with 5-down (closed 

before September 

30, 2028) 

1.50 1.75 NA 

(C)(ii) Loan described 

in section 3710 (a) 

to purchase or construct a dwelling 

with 5-down (closed 

on or after September 30, 2028) 

0.75 1.00 NA 

(D)(i) Initial loan described in section 

3710 (a) to purchase 

or construct a 

dwelling with 10- 

down (closed before 

September 30, 

2028) 

1.25 1.50 NA 

(D)(ii) Initial loan described in section 

3710 (a) to purchase 

or construct a 

dwelling with 10- 

down (closed on or 

after September 30, 

2028) 

0.50 0.75 NA 

(E) Interest rate reduction refinancing 

loan 

0.50 0.50 NA 

(F) Direct loan under 

section 3711 

1.00 1.00 NA 

(G) Manufactured 

home loan under 

section 3712 (other 

than an interest 

rate reduction refinancing loan) 

1.00 1.00 NA 


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øLOAN FEE TABLE—Continued 

øType of loan Active duty veteran Reservist Other obligor 

(H) Loan to Native 

American veteran 

under section 3762 

(other than an interest rate reduction refinancing 

loan) 

1.25 1.25 NA 

(I) Loan assumption 

under section 3714 

0.50 0.50 0.50 

(J) Loan under section 

3733 (a) 

2.25 2.25 2.25¿ 

Type of loan 

Active 

duty 

veteran 

Reservist Other 

obligor 

(A)(i) Initial loan described in 

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) 

2.15 2.40 NA 

(A)(ii) Initial loan described in 

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 January 1, 2022) 

2.30 2.30 NA 

(A)(iii) Initial loan described in 

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, 2022, and before October 1, 2029) 

2.15 2.15 NA 


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49 

Type of loan 

Active 

duty 

veteran 

Reservist Other 

obligor 

(A)(iv) Initial loan described in 

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, 2029) 

1.40 1.40 NA 

(B)(i) Subsequent loan described 

in 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) 

3.30 3.30 NA 

(B)(ii) Subsequent loan described in 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 January 1, 2022) 

3.60 3.60 NA 

(B)(iii) Subsequent loan described in 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, 2022, and before October 1, 2029) 

3.30 3.30 NA 

(B)(iv) Subsequent loan described in 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, 2029) 

1.25 1.25 NA 


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Type of loan 

Active 

duty 

veteran 

Reservist Other 

obligor 

(C)(i) Loan described in section 

3710(a) to purchase or construct a dwelling with 5-down 

(closed before January 1, 

2020) 

1.50 1.75 NA 

(C)(ii) Loan described in section 

3710(a) to purchase or construct a dwelling with 5-down 

(closed on or after January 1, 

2020, and before January 1, 

2022) 

1.65 1.65 NA 

(C)(iii) Loan described in section 

3710(a) to purchase or construct a dwelling with 5-down 

(closed on or after January 1, 

2022, and before October 1, 

2029) 

1.50 1.50 NA 

(C)(iv) Loan described in section 

3710(a) to purchase or construct a dwelling with 5-down 

(closed on or after October 1, 

2029) 

0.75 0.75 NA 

(D)(i) Loan described in section 

3710(a) to purchase or construct a dwelling with 10- 

down (closed before January 

1, 2020) 

1.25 1.50 NA 

(D)(ii) Loan described in section 

3710(a) to purchase or construct a dwelling with 10- 

down (closed on or after January 1, 2020, and before January 1, 2022) 

1.40 1.40 NA 

(D)(iii) Loan described in section 

3710(a) to purchase or construct a dwelling with 10- 

down (closed on or after January 1, 2022, and before October 1, 2029) 

1.25 1.25 NA 


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Type of loan 

Active 

duty 

veteran 

Reservist Other 

obligor 

(D)(iv) Loan described in section 

3710(a) to purchase or construct a dwelling with 10- 

down (closed on or after October 1, 2029) 

0.50 0.50 NA 

(E) Interest rate reduction refinancing loan 0.50 0.50 NA 

(F) Direct loan under section 

3711 

1.00 1.00 NA 

(G) Manufactured home loan 

under section 3712 (other than 

an interest rate reduction refinancing loan) 

1.00 1.00 NA 

(H) Loan to Native American 

veteran under section 3762 

(other than an interest rate reduction refinancing loan) 

1.25 1.25 NA 

(I) Loan assumption under section 3714 0.50 0.50 0.50 

(J) Loan under section 3733(a) 2.25 2.25 2.25 

(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) 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. 

(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 if the veteran has previously obtained a loan guaranteed 

under section 3710 or made under section 3711 of this title. 

(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. 


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(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) øor from a surviving spouse¿, from 

a surviving spouse of any veteran (including a person who died in 

the active military, naval, or air service) who died from a serviceconnected 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. 

* * * * * * * 

§ 3731. Appraisals 

(a) The Secretary shall— 

(1) subject to subsection (b)(2) and in consultation with appropriate representatives of institutions which are regularly 

engaged in making housing loans, prescribe uniform qualifications for appraisers, including the successful completion of a 

written test, submission of a sample appraisal, certification of 

an appropriate number of years of experience as an appraiser, 

and submission of recommendations from other appraisers; 

(2) use such qualifications in determining whether to approve an appraiser to make appraisals of the reasonable value 

of any property, construction, repairs, or alterations for the 

purposes of this chapter; and 

(3) in consultation with local representatives of institutions 

described in clause (1) of this subsection, develop and maintain 

lists of appraisers who are approved under clause (2) of this 

subsection to make appraisals for the purposes of this chapter. 

(b)(1) The Secretary shall select appraisers from a list required 

by subsection (a)(3) of this section on a rotating basis to make appraisals for the purposes of this chapter. 

(2) If uniform qualifications become applicable for appraisers who 

perform appraisals for or in connection with the Federal Government, the qualifications required by subsection (a)(1) of this section 


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may be more stringent than such uniform qualifications, but the 

Secretary may use no written test in determining the qualifications 

of appraisers other than the test prescribed to implement such uniform qualifications. 

(3) The Secretary shall permit an appraiser on a list developed 

and maintained under subsection (a)(3) to make an appraisal for 

the purposes of this chapter based solely on information gathered by 

a person with whom the appraiser has entered into an agreement 

for such services. 

(c) Except as provided in subsection (f) of this section, the appraiser shall forward an appraisal report to the Secretary for review. Upon receipt of such report, the Secretary shall determine 

the reasonable value of the property, construction, repairs, or alterations for purposes of this chapter, and notify the veteran of such 

determination. Upon request, the Secretary shall furnish a copy of 

the appraisal made of property for the purposes of this chapter to 

the lender proposing to make the loan which is to be secured by 

such property and is to be guaranteed under this chapter. 

(d) If a lender (other than a lender authorized under subsection 

(f) of this section to determine reasonable value)— 

(1) has proposed to make a loan to be guaranteed under this 

chapter, 

(2) has been furnished a certificate of reasonable value of 

any property or of any construction, repairs, or alterations of 

property which is to be the security for such loan, and 

(3) within a reasonable period prescribed by the Secretary, 

has furnished to the Secretary an additional appraisal of the 

reasonable value of such property, construction, repairs, or alterations which was made by an appraiser selected by the 

lender from the list required by subsection (a)(3) of this section, 

the Secretary shall consider both the initial appraisal and the additional appraisal and shall, if appropriate, issue a revised certificate 

of reasonable value of such property, construction, repairs, or alterations. 

(e)(1) In no case may a veteran be required to pay all or any portion of the cost of the additional appraisal described in subsection 

(d)(3) of this section. 

(2) If a veteran, within a reasonable period prescribed by the Secretary, has furnished to the Secretary an additional appraisal of 

the reasonable value of such property, construction, repairs, or alterations which was made by an appraiser selected by the veteran 

from the list required by subsection (a)(3) of this section, the Secretary shall consider such appraisal, along with other appraisals 

furnished to the Secretary, and shall, if appropriate, issue a revised 

certificate of reasonable value of such property, construction, repairs, or alterations. 

(f)(1) Subject to the provisions of paragraphs (2) and (3) of this 

subsection, the Secretary may, in accordance with standards and 

procedures established in regulations prescribed by the Secretary, 

authorize a lender to determine the reasonable value of property 

for the purposes of this chapter if the lender is authorized to make 

loans which are automatically guaranteed under section 3702(d) of 

this title. In such a case, the appraiser selected by the Secretary 

pursuant to subsection (b) of this section shall submit the appraisal 


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report directly to the lender for review, and the lender shall, as 

soon as possible thereafter, furnish a copy of the appraisal to the 

veteran who is applying for the loan concerned and to the Secretary. 

(2) In exercising the authority provided in paragraph (1) of this 

subsection, the Secretary shall assign a sufficient number of personnel to carry out an appraisal-review system to monitor, on at 

least a random-sampling basis, the making of appraisals by appraisers and the effectiveness and the efficiency of the determination of reasonable value of property by lenders. 

(4) Not later than April 30 of each year following a year in which 

the Secretary authorizes lenders to determine reasonable value of 

property under this subsection, the Secretary shall submit to the 

Committees on Veterans’ Affairs of the Senate and the House of 

Representatives a report relating to the exercise of that authority 

during the year in which the authority was exercised. 

(5) A report submitted pursuant to paragraph (4) of this subsection shall include, for the period covered by each report— 

(A) the number and value of loans made by lenders exercising the authority of this subsection; 

(B) the number and value of such loans reviewed by the appraisal-review monitors referred to in paragraph (2) of this 

subsection; 

(C) the number and value of loans made under this subsection of which the Secretary received notification of default; 

(D) the amount of guaranty paid by the Secretary to such 

lenders by reason of defaults on loans as to which reasonable 

value was determined under this subsection; and 

(E) such recommendations as the Secretary considers appropriate to improve the exercise of the authority provided for in 

this subsection and to protect the interests of the United 

States. 

* * * * * * * 

SUBCHAPTER V—DIRECT HOUSING LOANS FOR NATIVE 

AMERICAN VETERANS 

* * * * * * * 

§ 3762. Direct housing loans to Native American veterans; 

program administration 

(a) The Secretary may make a direct housing loan to a Native 

American veteran under this subchapter if— 

(1)(A) the Secretary has entered into a memorandum of understanding with respect to such loans with the tribal organization that has jurisdiction over the veteran; or 

(B) the tribal organization that has jurisdiction over the 

veteran has entered into a memorandum of understanding 

with any department or agency of the United States with 

respect to direct housing loans to Native Americans that 

the Secretary determines substantially complies with the 

requirements of subsection (b); and 

(2) the memorandum is in effect when the loan is made. 


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(b)(1) Subject to paragraph (2), the Secretary shall ensure that 

each memorandum of understanding that the Secretary enters into 

with a tribal organization shall provide for the following: 

(A) That each Native American veteran who is under the jurisdiction of the tribal organization and to whom the Secretary 

makes a direct loan under this subchapter— 

(i) holds, possesses, or purchases using the proceeds of 

the loan a meaningful interest in a lot or dwelling (or both) 

that is located on trust land; and 

(ii) will purchase, construct, or improve (as the case may 

be) a dwelling on the lot using the proceeds of the loan. 

(B) That each such Native American veteran will convey to 

the Secretary by an appropriate instrument the interest referred to in subparagraph (A) as security for a direct housing 

loan under this subchapter. 

(C) That the tribal organization and each such Native American veteran will permit the Secretary to enter upon the trust 

land of that organization or veteran for the purposes of carrying out such actions as the Secretary determines are necessary— 

(i) to evaluate the advisability of the loan; and 

(ii) to monitor any purchase, construction, or improvements carried out using the proceeds of the loan. 

(D) That the tribal organization has established standards 

and procedures that apply to the foreclosure of the interest 

conveyed by a Native American veteran pursuant to subparagraph (B), including— 

(i) procedures for foreclosing the interest; and 

(ii) procedures for the resale of the lot or the dwelling (or 

both) purchased, constructed, or improved using the proceeds of the loan. 

(E) That the tribal organization agrees to such other terms 

and conditions with respect to the making of direct loans to 

Native American veterans under the jurisdiction of the tribal 

organization as the Secretary may require in order to ensure 

that loans under this subchapter are made in a responsible 

and prudent manner. 

(2) The Secretary may not enter into a memorandum of understanding with a tribal organization under this subsection 

unless the Secretary determines that the memorandum provides for such standards and procedures as are necessary for 

the reasonable protection of the financial interests of the 

United States. 

(c)ø(1)(A) Except as provided in subparagraph (B), the principal 

amount of any direct housing loan made to a Native American veteran under this section may not exceed $80,000. 

ø(B)(i) Subject to clause (ii), the Secretary may make loans exceeding the amount specified in subparagraph (A) in a geographic 

area if the Secretary determines that housing costs in the area are 

significantly higher than average housing costs nationwide. The 

amount of such increase shall be the amount that the Secretary determines is necessary in order to make direct housing loans under 

this subchapter to Native American veterans who are located in a 

variety of geographic areas and in geographic areas experiencing a 

variety of economic conditions. 


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ø(ii) The amount of a loan made by the Secretary under this subchapter may not exceed the maximum loan amount authorized for 

loans guaranteed under section 3703(a)(1)(C) of this title.¿ 

ø(2)¿ (1) Loans made under this section shall bear interest 

at a rate determined by the Secretary, which rate may not exceed the appropriate rate authorized for guaranteed loans 

under section 3703(c)(1) or section 3712(f) of this title, and 

shall be subject to such requirements or limitations prescribed 

for loans guaranteed under this title as the Secretary may prescribe. 

ø(3)¿ (2) Notwithstanding section 3704(a) of this title, the 

Secretary shall establish minimum requirements for planning, 

construction, improvement, and general acceptability relating 

to any direct loan made under this section. 

(d)(1) The Secretary shall establish credit underwriting standards to be used in evaluating loans made under this subchapter. 

In establishing such standards, the Secretary shall take into account the purpose of this program to make available housing to Native American veterans living on trust lands. 

(2) The Secretary shall determine the reasonable value of the interest in property that will serve as security for a loan made under 

this section and shall establish procedures for appraisals upon 

which the Secretary may base such determinations. The procedures 

shall incorporate generally the relevant requirements of section 

3731 of this title, unless the Secretary determines that such requirements are impracticable to implement in a geographic area, 

on particular trust lands, or under circumstances specified by the 

Secretary. 

(e) Loans made under this section shall be repaid in monthly installments. 

(f) In connection with any loan under this section, the Secretary 

may make advances in cash to provide for repairs, alterations, and 

improvements and to meet incidental expenses of the loan transaction. The Secretary shall determine the amount of any expenses 

incident to the origination of loans made under this section, which 

expenses, or a reasonable flat allowance in lieu thereof, shall be 

paid by the veteran in addition to the loan closing costs. 

(g) Without regard to any provision of this chapter (other than 

a provision of this section), the Secretary may— 

(1) take any action that the Secretary determines to be necessary with respect to the custody, management, protection, 

and realization or sale of investments under this section; 

(2) determine any necessary expenses and expenditures and 

the manner in which such expenses and expenditures shall be 

incurred, allowed, and paid; 

(3) make such rules, regulations, and orders as the Secretary 

considers necessary for carrying out the Secretary’s functions 

under this section; and 

(4) in a manner consistent with the provisions of this chapter 

and with the Secretary’s functions under this subchapter, employ, utilize, and compensate any persons, organizations, or departments or agencies (including departments and agencies of 

the United States) designated by the Secretary to carry out 

such functions. 


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(h)(1) The Secretary may make direct loans to Native American 

veterans in order to enable such veterans to refinance existing 

loans made under this section. 

(2)(A) The Secretary may not make a loan under this subsection 

unless the loan meets the requirements set forth in subparagraphs 

(B), (C), and (E) of paragraph (1) of section 3710(e) of this title. 

(B) The Secretary may not make a loan under this subsection unless the loan will bear an interest rate at least one percentage 

point less than the interest rate borne by the loan being refinanced. 

(C) Paragraphs (2) and (3) of such section 3710(e) shall apply to 

any loan made under this subsection, except that for the purposes 

of this subsection the reference to subsection (a)(8) of section 3710 

of this title in such paragraphs (2) and (3) shall be deemed to be 

a reference to this subsection. 

(i)(1) The Secretary shall, in consultation with tribal organizations (including the National Congress of American Indians and the 

National American Indian Housing Council), carry out an outreach 

program to inform and educate Native American veterans of the 

availability of direct housing loans for Native American veterans 

who live on trust lands. 

(2) Activities under the outreach program shall include the following: 

(A) Attending conferences and conventions conducted by the 

National Congress of American Indians in order to work with 

the National Congress in providing information and training to 

tribal organizations and Native American veterans regarding 

the availability of housing benefits under this subchapter and 

in assisting such organizations and veterans with respect to 

such housing benefits. 

(B) Attending conferences and conventions conducted by the 

National American Indian Housing Council in order to work 

with the Housing Council in providing information and training to tribal organizations and tribal housing entities regarding the availability of such benefits. 

(C) Attending conferences and conventions conducted by the 

Department of Hawaiian Homelands in order to work with the 

Department of Hawaiian Homelands in providing information 

and training to tribal housing entities in Hawaii regarding the 

availability of such benefits. 

(D) Producing and disseminating information to tribal governments, tribal veterans service organizations, and tribal organizations regarding the availability of such benefits. 

(E) Assisting tribal organizations and Native American veterans with respect to such benefits. 

(F) Outstationing loan guarantee specialists in tribal facilities on a part-time basis if requested by the tribal government. 

(j) The Secretary shall include as part of the annual benefits report of the Veterans Benefits Administration information concerning the cost and number of loans provided under this subchapter for the fiscal year covered by the report. 

* * * * * * * 

Æ 


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