Statement of Administration Policy: H.R. 232 - Veterans' Housing Amendments

(House Floor)
(Staggers (D) WV and two others)

The Administration does not object to House passage of H.R. 232, which amends certain veterans' housing authorities. The Administration, however, will work in the Senate to address the following objectionable provisions in H.R. 232:

—   Prohibitions on the sale of vendee loans that finance the purchase of foreclosed properties from the Department of Veterans Affairs (VA). VA should have the flexibility to administer its loan portfolio in the most cost-effective manner.

—   Authorization of a new loan program for nonprofit organizations to lease group residences for veterans recovering from substance abuse. This authority is unnecessary, because the Anti-Drug Abuse Act of 1988 contains authority for States to make such loans. The funding source for these programs is inappropriate. The General Post Fund was created to benefit hospitalized veterans.

—   Authorization to use the General Post Fund for a transitional housing demonstration program for certain veterans. This program should be funded by participating veterans' medical centers within their available resources.

In addition, H.R. 232 is objectionable because it does not include offsets to the increases in direct spending provided in the bill, as required by the Omnibus Budget Reconciliation Act of 1990 (OBRA).

Scoring for the Purpose of Pay-As-You-Go and Caps

H.R. 232 would increase direct spending; therefore, it is subject to the pay-as-you-go requirement of OBRA. No offsets to the direct spending increases are provided in the bill. Because this bill is not fully offset, a budget point of order would apply in the Senate. If, contrary to the Administration's recommendation, the Senate waives the point of order, enactment of H.R. 232 would add to the end of year pay-as-you-go requirement, which must be met to avoid sequester.

OMB's preliminary scoring estimates for this bill are presented in the table below. (This bill is scored against the FY 1992 Budget baseline, which includes credit reform.) Final scoring of this legislation may deviate from this estimate. If H.R. 232 were enacted, final OMB estimates would be published five days after enactment, as required under OBRA. The cumulative effect of all enacted legislation on the pay-as-you-go requirement will be issued in monthly reports transmitted to Congress.

Fiscal Years
($ in millions)