(Washington D.C.)- Congressman Dan Lungren (R-CA) today agreed to co-sponsor the “Home Ownership for America’s Veterans Act of 2007” (HR 551), which would extend eligibility for the Cal-Vet program to wartime veterans who signed up for duty after 1977. The program offers low interest housing loans to wartime veterans.

“The Cal-Vet program has proven to be a valuable tool in assisting those who served this country in a time of war,” said Lungren. “Those who have sacrificed on behalf of all of us often find themselves behind some of their peers when they re-engage in civilian life. This program allows them to participate in one of the most significant parts of the American dream—owning their own home. It will allow that same dream to be realized by our most recent veterans.”

The Cal-Vet program originated when states chose different ways to reward veterans following World War I. California, along with four other states, established a low interest home loan program, Cal-Vet, in 1921.

The “Tax Reform Act of 1984” created an eligibility restriction limiting the program to wartime veterans who entered the service prior to 1977 in an effort to save money by ending various tax-exempt bond programs. However, the Cal-Vet program operates at no direct cost to taxpayers.

HR 551 would eliminate the eligibility restriction, allowing veterans who entered the service since 1977 to use Cal-Vet, as well as establishing an inflation adjustment schedule for participating states.

A meeting with California Department of Veterans Affairs Secretary Tom Johnson precipitated Lungren’s co-sponsoring of the legislation.

“The Cal Vet Home Loan program is so important for our younger veterans,” said Johnson. “When I got out of the Army in 1970, I had a job but I didn't have the means to buy a home for my family. Learning I qualified for a Cal-Vet Home Loan allowed me to buy my first home. HR 551 will give today's wartime veterans the eligibility to apply for Cal-Vet Home Loans like veterans of my generation and the generations before us. All veterans should be grateful for members like Rep. Lungren who are supporting this legislation.”

Lungren joined 40 of his House colleagues of the California delegation in co-sponsoring the bill, along with seven co-sponsors by Texas Members, the other state primarily affected by the legislation.
 
Congressman Dan Lungren serves on the Judiciary, Homeland Security, Budget, and House Administration Committees

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