I
105TH CONGRESS
1ST SESSION
H. R. 1241
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
APRIL 8, 1997
Mr. KLECZKA (for himself, Mr. HERGER, Mr. GONZALEZ, Mr. FAZIO of Cali-
fornia, Ms. JACKSON-LEE of Texas, Mr. FROST, Mr. RAHALL, Mr.
FILNER, Ms. PELOSI, Mr. BARRETT of Wisconsin, Mr. SENSENBRENNER,
Ms. FURSE, Mr. DEFAZIO, Mr. HAYWORTH, Mr. MATSUI, Mr. NEY, 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Veterans American
Dream Homeownership Assistance Act of 1997’’.
SEC. 2. ELIGIBILITY OF VETERANS FOR MORTGAGE REVE-
NUE BONDS DETERMINED BY STATES.
(a) IN GENERAL.—Section 143(l) of the Internal
Revenue Code of 1986 (relating to additional requirements
for qualified veterans’ mortgage bonds) is amended by
striking paragraph (4) and by inserting after paragraph
(5) the following new paragraph:
‘‘(6) QUALIFIED
VETERAN.—For purposes of
this subsection, the term ‘qualified veteran’ means
any veteran—
‘‘(A) who meets such requirements as may
be imposed by the State law pursuant to which
qualified veterans’ mortgage bonds are issued,
‘‘(B) who applied for the financing before
the date 30 years after the last date on which
such veteran left active service, and
‘‘(C) in the case of financing provided by
the proceeds of bonds issued during the period
beginning July 19, 1984, and ending June 30,
1998, who served on active duty at some time
before January 1, 1977.’’
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply to bonds issued after the date
of the enactment of this Act.
SEC. 3. STATE CAP RESTRICTIONS.
(a) IN GENERAL.—Section 143(l) of the Internal
Revenue Code of 1986 (relating to additional requirements
for qualified veterans’ mortgage bonds), as amended by
section 2(a), is amended by inserting after paragraph (3)
the following new paragraph:
‘‘(4) SUBCAP RESTRICTION.—
‘‘(A) IN GENERAL.—An issue meets the re-
quirements of this paragraph only if the
amount of bonds issued pursuant thereto that
is to be used to provide financing to mortgagors
who have not served on active duty at some
time before January 1, 1977, when added to
the amount of the aggregate qualified veterans’
mortgage bonds previously issued by the State
during the calendar year that is to be so used,
does not exceed the subcap amount.
‘‘(B) SUBCAP AMOUNT.—
‘‘(i) 
IN
GENERAL.—The 
subcap
amount for any calendar year is an
amount equal to the applicable percentage
of the State veterans limit for such year.
‘‘(ii) APPLICABLE PERCENTAGE.—For
purposes of clause (i), the applicable per-
centage shall be determined under the fol-
lowing table:
Applicable
‘‘Calendar year:
Percentage:
1998 .........................................................................................
1999 .........................................................................................
2000 .........................................................................................
2001 .........................................................................................
2002 and thereafter .................................................................
50.’’
(b) RESTRICTION ON OVERALL STATE CAP.—Para-
graph (3)(B) of section 143(l) of such Code (relating to
State veterans limit) is amended by adding at the end the
following flush sentence:
‘‘In no event shall the State veterans limit ex-
ceed $340,000,000 for any calendar year after
1998.’’
(c) CONFORMING AMENDMENT.—Paragraph (1) of
section 143(l) of such Code is amended by striking ‘‘and
(3)’’ and inserting ‘‘, (3), and (4)’’.
(d) EFFECTIVE
DATE.—The amendments made
by
this
section
shall
apply
to
bonds
issued
after
December 31, 1997.
Æ