California seeks ability to extend home-assistance to all Veterans
The California State Assembly unanimously approved a Joint Resolution by Assemblywoman Sharon Runner (R-Lancaster) calling for the increased issuance of mortgage bonds for Veterans. Assembly Joint Resolution 32 requests that the United States Congress amend federal law, which currently prevents California’s Veteran home loan program from applying to all Veterans.
“The soldiers of our armed forces dedicate themselves to protecting our homeland.” said Runner. “It is our responsibility as a nation and as a state to help these men and women build their own homes for their families when they return from service.”
In appreciation of their service, California established the Veteran Farm and Home Loan Program (Cal-Vet) in 1921 to provide home purchase assistance to returning Veterans. However, current federal law governing the use of tax-exempt bonds used to fund these loans, as set forth in Section 143(l)(4) of the Internal Revenue Code, limits this program to only those veterans who served prior to January 1, 1977.
Due to Federal restrictions, a declining pool of Vietnam era veterans remain eligible for general obligation bond financed Cal-Vet loans, and no veterans who served during Desert Shield, Desert Storm, or post September 11th are eligible for this benefit. Runner’s AJR 32 memorializes the President and Congress to enact legislation that would correct this unfair consequence of the Federal Internal Revenue Code.
“Owning a home is often referred to as the ‘American Dream,’” said Runner. “It is only appropriate that those men and women who protect America are able to achieve this dream.”