I

107TH CONGRESS

1ST SESSION H. R. 959

To amend the Internal Revenue Code of 1986 with respect to the eligibility

of veterans for mortgage revenue bond financing, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 8, 2001

Mr. KLECZKA (for himself, Mr. HERGER, Mr. BLUMENAUER, Mr. MATSUI,

Ms. WOOLSEY, Ms. BALDWIN, Ms. ROYBAL-ALLARD, Mr. LAMPSON, and

Mr. CUNNINGHAM) introduced the following bill; which was referred to

the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 with respect

to the eligibility of veterans for mortgage revenue bond

financing, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Veterans American

5 Dream Homeownership Assistance Act of 2001’’.

6 SEC. 2. ELIGIBILITY OF VETERANS FOR MORTGAGE REV7 ENUE BONDS DETERMINED BY STATES.

8 (a) IN GENERAL.—Section 143(l) of the Internal

9 Revenue Code of 1986 (relating to additional requirements
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1 for qualified veterans’ mortgage bonds) is amended by

2 striking paragraph (4) and by inserting after paragraph

3 (5) the following new paragraph:

4 ‘‘(6) QUALIFIED VETERAN.—For purposes of

5 this subsection, the term ‘qualified veteran’ means

6 any veteran—

7 ‘‘(A) who meets such requirements as may

8 be imposed by the State law pursuant to which

9 qualified veterans’ mortgage bonds are issued,

10 and

11 ‘‘(B) who applied for the financing before

12 the date 30 years after the last date on which

13 such veteran left active service.’’

14 (b) EFFECTIVE DATE.—The amendments made by

15 subsection (a) shall apply to bonds issued after the date

16 of the enactment of this Act.

17 SEC. 3. STATE CAP RESTRICTIONS.

18 (a) IN GENERAL.—Section 143(l) of the Internal

19 Revenue Code of 1986 (relating to additional requirements

20 for qualified veterans’ mortgage bonds), as amended by

21 section 2(a), is amended by inserting after paragraph (3)

22 the following new paragraph:

23 ‘‘(4) SUBCAP RESTRICTION.—

24 ‘‘(A) IN GENERAL.—An issue meets the re25 quirements of this paragraph only if the
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1 amount of bonds issued pursuant thereto that

2 is to be used to provide financing to mortgagors

3 who have not served on active duty at some

4 time before January 1, 1977, when added to

5 the amount of the aggregate qualified veterans’

6 mortgage bonds previously issued by the State

7 during the calendar year that is to be so used,

8 does not exceed the subcap amount.

9 ‘‘(B) SUBCAP AMOUNT.—

10 ‘‘(i) IN GENERAL.—The subcap

11 amount for any calendar year is an

12 amount equal to the applicable percentage

13 of the State veterans limit for such year.

14 ‘‘(ii) APPLICABLE PERCENTAGE.—For

15 purposes of clause (i), the applicable per16 centage shall be determined under the fol17 lowing table:

‘‘Calendar year: Applicable Percentage:

2002 ......................................................................................... 10

2003 ......................................................................................... 20

2004 ......................................................................................... 30

2005 ......................................................................................... 40

2006 and thereafter ................................................................. 50.’’

18 (b) RESTRICTION ON OVERALL STATE CAP.—Para19 graph (3)(B) of section 143(l) of such Code (relating to

20 State veterans limit) is amended by adding at the end the

21 following flush sentence:
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1 ‘‘In no event shall the State veterans limit ex2 ceed $340,000,000 for any calendar year after

3 2002.’’

4 (c) CONFORMING AMENDMENT.—Paragraph (1) of

5 section 143(l) of such Code is amended by striking ‘‘and

6 (3)’’ and inserting ‘‘(3), and (4)’’.

7 (d) EFFECTIVE DATE.—The amendments made

8 by this section shall apply to bonds issued after Decem9 ber 31, 2001.

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