U.S. Department of the Interior Programs

INDIAN HOUSING IMPROVEMENT PROGRAM

BASIC PROGRAM INFORMATION

LEGISLATIVE OBJECTIVE. To provide housing improvement assistance for Indians (repairs, renovation, and enlargement) and to construct new housing in isolated areas where other programs are not applicable. DATE ENACTED.-The Indian housing improvement program began operating in 1965, under the authority of legislation enacted in November 1921.

ADMINISTERING AGENCY.-The Bureau of Indian Affairs of the U.S. Department of the Interior, through area offices.

FINANCING. The program is financed by annual fixed appropriations from general revenues of the Treasury.

MAJOR ELIGIBILITY CONDITIONS.-To be eligible for the program, families must be Indians living on reservations or on trust lands operating under some dgree of Federal responsibility, who are in need of housing assistance and who are unable to obtain such assistance under any other Federal program. Among eligible families, preference is given to those with the greatest need and in the most crowded conditions.

INCOME TEST

1

Income limits. To be eligible for grants to repair or renovate existing substandard housing, or provide new housing, families must meet income limits for continued occupancy in public housing and must be determined by the BIA agency superintendent to be living in substandard housing and to have insufficient resources to accomplish the housing improvements without assistance. To be eligible for grants to reduce the amount of housing loans needed, families must be determined by the BIA agency superintendent to be otherwise unable to obtain them because of low income and limited financial resources. To

1 New housing is that which constitutes more adequate shelter but does not meet the full standards for families living in unrepaired houses until they can obtain adequate housing.

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be eligible for original occupancy of newly constructed permanent housing, families must meet the income limits for public assistance in the area in which they live.

[For definition of income, treatment of earned income, treatment of unearned income, and accounting period, see sections on “Public Housing” and “Public Assistance."]

Assets test.—A family must have insufficient resources to accomplish housing improvements or to obtain new housing. The maximum amount of resources allowed is determined by the local BIA agency superintendent.

OTHER CONDITIONS

Work requirements.-There are none.

Acceptance of training or rehabilitation.—There is no requirement. However, materials and technical assistance may be provided for persons who are able to provide their own labor or labor may be provided in conjunction with a tribal work experience program.

Citizenship. The requirements of Indian descent and residence on a reservation imply a citizenship requirement.

Lien, recovery, or assignment.-There is no requirement except with newly constructed permanent housing, the ownership of which must be turned over to the tribe or a tribal organization.

Residence requirement.-To be eligible, Indians must reside on reservations.

BENEFITS AND SERVICES

CASH BENEFITS.-There are none.

IN-KIND BENEFITS

Nature of benefit.-The benefits of the program are in the form of grants to repair or renovate existing housing, to provide new housing, or to reduce the amounts of housing loans.

Cash value of benefit.-Grants to temporarily repair substandard housing may not exceed $2,000 per dwelling unit; grants to repair or renovate existing housing, or to reduce the amounts of housing loans may not exceed $10,000 per dwelling; grants to provide a downpayment to obtain a loan may not exceed $5,000; and grants to provide new permanent housing may not exceed $25,000 per dwelling.2

Relationship of benefit amount to family size.-Among eligible families, preference is given to those with the greatest need and in the most crowded conditions.

Relationship of benefit amount to place of residence. The program is available only to Indians residing on reservations or on trust lands operating under some degree of Federal responsibility.

2 Based on proposed regulations scheduled for implementation prior to Jan. 1, 1975.

HOUSING: NON-INCOME-TESTED

HOUSING ASSISTANCE FOR VETERANS1

BASIC PROGRAM INFORMATION

LEGISLATIVE OBJECTIVE.-To assist veterans in purchasing, constructing, altering, improving, or repairing residential dwellings, with special grants given to certain disabled veterans.

DATE ENACTED AND MAJOR CHANGES SINCE ENACTMENT.-The first housing program for veterans was enacted in 1944. The present law was enacted in 1958 and codified in title 38, United States Code. An amendment in 1966 extended eligibility for loan benefits to veterans of service after January 31, 1955. An amendment in 1967 increased the maximum direct loan amount from a maximum of $17,500 to a maximum of $25,000. An amendment in 1968 increased the home loan entitlement to $12,500; changed the function of Veterans Administration appraisals to a control on the loan amount, rather than on the purchase price; and removed the statutory ceiling on the interest rate for the loan. A 1970 amendment revived unused, expired loan guaranty entitlements of World War II and Korean veterans, made all loan guarantee entitlement available until used, and authorized the mobile home loan program. Amendments in 1974 codified and expanded the conditions under which veteran loan entitlement could be restored after it has been used up by the veteran. Previous to this, loan entitlements could be restored only under comparatively limited circumstances, including situations difficult to administer where there were "compelling reasons devoid of a fault." Among other things, new amendments also permit nonsupervised lenders (e.g., consumer credit companies) to process loans on an "automatically guaranteed" basis; permit veterans to pay mortgage discounts or points under certain circumstances; liberalize VA's authority to guarantee loans for residential condominiums; increase the maximum home loan guarantee entitlement to $17,500 and revise VA mobile home maximum loans and mortgage maturities.

ADMINISTERING AGENCY. The program is administered by the Veterans Administration, Department of Veterans' Benefits, through regional offices.

FINANCING. Funds for grants to eligible disabled veterans for specially adapted housing are provided by appropriations from general revenues of the U.S. Treasury. The costs of the guaranteed and insured loan program are met from a loan guarantee revolving fund, plus appropriations from general revenues. The costs of the direct loan program are met from a direct loan revolving fund.

1 Programs included under Housing Assistance for Veterans are as follows: (1) Specially adapted housing for disabled veterans; (2) guaranteed and insured loans; (3) direct loans; (4) direct loans for disabled veterans; and (5) mobile home loans.

COSTS

Housing grants for disabled veterans. In fiscal year 1973, 676 grants were made at a total cost of $12,891,000; in 1974, 672 grants were made at a cost of $11,254,000; and the estimate for 1975 is for 650 grants at a cost of $11,375,000.

Guaranteed and insured loans. In fiscal year 1973, the expenditures from the loan guarantee revolving fund totaled $372,580,000; in fiscal year 1974 the total was $449,102,000; and the estimate for 1975 is $444,700,000. The budget appropriation for payment of participation sales insufficiencies in 1973 was $5,000,000; in 1974 was $4,400,000; and the estimate for 1975 is $1,828,000. The number of guaranteed or insured loans in 1973 was 365,132; in 1974 was 311,260; and the estimate for 1975 is 350,000 which brings the total amount of guaranteed loans outstanding to $51.6 billion.

Direct loans. In fiscal year 1973, 2,851 loans were approved for an amount of $46,440,000; in 1974, 2,437 loans for $41,658,000; and the estimate for 1975 is 2,650 for $51,150,000. There are no current budget appropriations and none anticipated for this program at the present time. The total outstanding amount of direct loans in 1973 was $772,316,000; in 1974 was $696,092,000; and the estimate for 1975 is $589,325,000.

ELIGIBILITY CRITERIA

Major EligibILITY CONDITIONS. For guaranteed and insured loans, for direct loans, and for mobile home loans: (1) a claimant must be a veteran of World War II or the Korean conflict who served on active duty 90 days or more and was released under conditions other than dishonorable; or, a veteran who served on active duty 181 days or more, part of which occurred after January 31, 1955, and who was released or discharged under other than dishonorable conditions; or, any veteran meeting the above criteria, except for length of service, but who was discharged for a service-connected disability; or a service person on active duty who has served at least 181 days; or, an unmarried surviving spouse of an otherwise eligible veteran who died in service or whose death was attributable to a service-connected disability; or, the spouse of a service person who is listed by the Department of Defense as missing in action or a prisoner of war; and (2) a claimant must have sufficient present and prospective income to meet loan repayment terms, be a satisfactory credit risk, and have available GI loan entitlement. The property to be acquired must also meet certain standards relating to structural soundness, safety, and sanitation. The maximum guarantee entitlement is $17,500 for home loan purposes. In this connection such entitlement does not apply to mobile home loans. If the mobile home is disposed of and the loan is paid off in full, the veteran has entitlement for a loan to purchase a conventionally built home. Entitlement means the guarantee or insurance benefits which are available to an eligible veteran. Each veteran has an entitlement of $17,500 for loans on conventionally built homes, and it is available until it is used, or if part of it is used; with a loan guarantee of less than $17,500, the remaining amount is available for later use. Once used, entitlement may be restored under certain conditions.

Amendments in 1974 modify mobile home maximum loans and loan maturities. Maximum loans for single-wide mobile homes, for example, are raised to $12,500. Loans for double-wides cannot exceed $20,000 with a term of 20 years. Single-wide maximum permissible loan amounts, with developed lot, cannot exceed $20,000 with a 15-year term; double-wide mobile home loans, with developed lot, cannot exceed $27,500 with a 20-year term. The maturity maximum for only an undeveloped or developed lot is $7,500 for 12 years. New amendments eliminate the terminal date of the mobile home program.

Additionally, to be eligible for a direct loan, the property must be located in a rural area or a small city where it is determined that private capital is not available on regular loan terms.

For specially adapted housing and for direct loans for totally disabled veterans eligible for a grant for specially adapted housing: (1) A claimant must be a veteran with permanent, compensable, and total disability based on service after April 20, 1898, because of (a) loss or loss of use of both lower extremities such as to preclude locomotion without braces, canes, crutches, or wheelchairs, or (b) blindness in both eyes, having only light perception, plus loss or loss of use of one lower extremity or (c) because of the loss or loss of use of one lower extremity together with residuals of organic disease or injury affecting balance or propulsion so as to preclude locomotion without resort to a wheelchair; and (2) the Veterans Administration must find that it is feasible for him to reside in the proposed or existing housing unit and in the locality and that the cost of the housing unit bears a proper relation to the veteran's present and anticipated income and expenses and is suitable to his physical needs.

In addition, to be eligible for a direct loan, the disabled veteran must have sufficient present and prospective income to repay the loan. The recipient of the grant for specially adapted housing must be able to meet the remaining cost of maintaining the housing.

PERSONS INCLUDED.-Eligible veterans, unmarried surviving spouses, and spouses of those missing in action and prisoners of war are included in the program.

INCOME TEST.-A veteran, widow, widower, or spouse must have sufficient present and anticipated income to meet loan repayment terms and other living costs. Sufficient present and anticipated income is defined by standards normally applied in the area in which the dwelling is to be situated.

OTHER CONDITIONS

Citizenship.-There is no requirement.

Residence requirement.-Any real property purchased, constructed, altered, improved, or repaired with the proceeds of direct, guaranteed, or insured loans must be situated within the United States including the District of Columbia, Puerto Rico and Guam. In addition, no veteran, widow or widower is eligible for a direct loan unless he or she resides in a rural area or small city where it is determined that private capital is not generally available. Lastly, every veteran obtaining a home loan must certify that he or she personally intends to occupy the property as his home.