I

106TH CONGRESS

1ST SESSION H. R. 1215

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 23, 1999

Mr. KLECZKA (for himself, Mr. HERGER, Mr. MATSUI, Ms. WOOLSEY, Mr.

HUNTER, Mr. SESSIONS, Mr. BERMAN, Mrs. BONO, Mr. GREEN of Texas,

Mr. DIXON, Mr. SHERMAN, Mr. CALVERT, Mr. SANDLIN, Mr. PAUL, Mr.

FROST, Mr. FILNER, Mr. RAHALL, Mr. BARRETT of Wisconsin, Ms.

LOFGREN, Mr. SENSENBRENNER, Mr. LAMPSON, Mr. OBEY, and Mr.

OSE) 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 1999’’.
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1 SEC. 2. ELIGIBILITY OF VETERANS FOR MORTGAGE REV2 ENUE BONDS DETERMINED BY STATES.

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

4 Revenue Code of 1986 (relating to additional requirements

5 for qualified veterans’ mortgage bonds) is amended by

6 striking paragraph (4) and by inserting after paragraph

7 (5) the following new paragraph:

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

9 this subsection, the term ‘qualified veteran’ means

10 any veteran—

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

12 be imposed by the State law pursuant to which

13 qualified veterans’ mortgage bonds are issued,

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

15 the date 30 years after the last date on which

16 such veteran left active service, and

17 ‘‘(C) in the case of financing provided by

18 the proceeds of bonds issued during the period

19 beginning July 19, 1984, and ending June 30,

20 1998, who served on active duty at some time

21 before January 1, 1977.’’

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

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

24 of the enactment of this Act.
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1 SEC. 3. STATE CAP RESTRICTIONS.

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

3 Revenue Code of 1986 (relating to additional requirements

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

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

6 the following new paragraph:

7 ‘‘(4) SUBCAP RESTRICTION.—

8 ‘‘(A) IN GENERAL.—An issue meets the re9 quirements of this paragraph only if the

10 amount of bonds issued pursuant thereto that

11 is to be used to provide financing to mortgagors

12 who have not served on active duty at some

13 time before January 1, 1977, when added to

14 the amount of the aggregate qualified veterans’

15 mortgage bonds previously issued by the State

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

17 does not exceed the subcap amount.

18 ‘‘(B) SUBCAP AMOUNT.—

19 ‘‘(i) IN GENERAL.—The subcap

20 amount for any calendar year is an

21 amount equal to the applicable percentage

22 of the State veterans limit for such year.

23 ‘‘(ii) APPLICABLE PERCENTAGE.—For

24 purposes of clause (i), the applicable per25 centage shall be determined under the fol26 lowing table:
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‘‘Calendar year: Applicable Percentage:

2000 ......................................................................................... 10

2001 ......................................................................................... 20

2002 ......................................................................................... 30

2003 ......................................................................................... 40

2004 and thereafter ................................................................. 50.’’

1 (b) RESTRICTION ON OVERALL STATE CAP.—Para2 graph (3)(B) of section 143(l) of such Code (relating to

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

4 following flush sentence:

5 ‘‘In no event shall the State veterans limit ex6 ceed $340,000,000 for any calendar year after

7 2000.’’

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

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

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

11 (d) EFFECTIVE DATE.—The amendments made

12 by this section shall apply to bonds issued after

13 December 31, 1999.

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