Statement of VIETNAM VETERANS OF AMERICA

Presented By Kelli R. Willard West, Director of Government Relations

Before The House Veterans' Affairs Subcommittee on Benefits

Regarding Homeless Veterans Legislation & Arlington National Cemetery

February 24, 1998

INTRODUCTION

Chairman Quinn and members of the Subcommittee, Vietnam Veterans Of America (VVA) is pleased to have the opportunity to discuss H.R. 3039, the Veterans' Transitional Housing Opportunities Act of 1997. We feel that this is a very creative initiative, aimed to address one of the most troubling problems faced by the veterans community -- that of homelessness among veterans. We will also submit some general comments on burial eligibility for Arlington National Cemetery, though VVA has no official position on this issue in the form of Convention Resolutions.

FEDERAL FUNDING FOR HOMELESS VETERANS

Since the draft concept of Mr. Stump's bill, the Veterans' Transitional Housing Opportunities Act of 1997, was presented to us last summer, VVA has been enthused about the potential this program holds for providing more resources for homeless assistance providers who target veterans, and more importantly, more supportive services to homeless veterans. This is a very important issue to our membership, and we have devoted considerable resources to the objective of addressing this problem, sharing information on successful programs, and advocating for increased federal funding for "veteran specific" homeless projects. We commend Chairman Stump and the Committee staff for developing a very creative idea for making additional funds available to homeless veteran providers.

We were also pleased that our New York State Council was able to present testimony in support of this legislation at your field hearing in Buffalo last December. All reports seem to indicate that this was a productive hearing.

I know that the Committee shares VVA's belief that the disproportionate representation of veterans among the homeless population (approximately one-third) is truly a national tragedy. And it is equally shameful that so few of the federal tax dollars spent each year on homelessness are directed toward programs which specifically target the needs of veterans. It is these two facts which makes H.R. 3039 so appealing to VVA. And therefore, it seems appropriate to detail our perspective on this problem a little further.

Because so little (less than 3 percent) of the federal homeless assistance dollars administered by the Department of Housing and Urban Develop (HUD) are directed at programs which address the specific needs of the one-third of the homeless population who are veterans, VVA has enthusiastically endorsed the Robert Stodola Homeless Veterans Assistance Act (H.R. 1754). This bill, introduced by Rep. Jack Metcalf of Washington, would specify that 20 percent of McKinney Act homeless funds are directed toward veteran-specific programs. Rep. Metcalf was able to work with Housing and Community Opportunities Subcommittee Chair Rick Lazio to incorporate a number of key "veterans" provisions into H.R. 217, the Homeless Housing Programs Consolidation and Flexibility Act, scheduled for the House calendar within the next couple of weeks. VVA strongly supports H.R. 217 and urges both the House and the Senate to adopt the bill.

Our experience in working with local homeless veterans service providers, as well as working with HUD at the national level, leads us to believe that federal homeless monies spent on veteran beneficiaries which do not address the underlying "veteran specific" cause of their homelessness are doomed to be wasted. This is because the veteran will likely circulate in and out of various homeless services, never really being rehabilitated or stabilized. Some of VA's own statistics showing the revolving door of their patient base attests to this recidivism. HUD contends that these veterans are being served within their general homeless programs, yet there is no verifiable accountability other than the grantees checking "Yes" on a questionnaire about services to this subpopulation. VVA feels that if HUD's general programs were effectively serving veterans, there would not be such a disproportionate number veterans on the streets each night.

VVA's primary objective is not only to get these veterans off the streets, but to bring them back into society as productive citizens. Veterans who are homeless have perhaps the best possibility for achieving rehabilitation because at an earlier point in their lives they did have a steady, responsible job and lifestyle in the military. We hope to recoup these individual's lives in the most efficient manner, thereby saving federal resources along the way.

Currently many homeless service providers which target the special needs of veterans are unable to get a seat at the table as representatives in the local homeless planning boards which administer HUD homeless assistance monies. Without this access, HUD grant monies are not forthcoming. There are a variety of reasons for this problem. Mr. Lazio and Mr. Metcalf were able to include provisions in H.R. 217 aimed at correcting this problem. The bill would:

Identify veterans who are homeless as a "special needs" population, which must be incorporated into the development of HUD comprehensive plans at all levels -- federal, state and local. This would also be a part of HUD's reporting requirements to Congress under the Government Performance and Results Act (GPRA).

In addition to requiring coordination with the Department of Health and Human Services (HHS), HUD and its grantees would be required to coordinate with VA for the planning of services to veterans who are homeless at all levels -- federal, state and local. This should particularly be the case for health care services -- many homeless veterans may be eligible for VA care by virtue of their income.

Require local or state planning boards which will administer HUD block grants to have some representation of veterans service organizations or veterans homeless service providers.

Incorporate into all HUD pre- and post-grant reporting requirements the statistical analysis of veterans served within all homeless service providers. This will assist Congress and the Administration with oversight and accountability assessments.

VVA urges all members to vote in favor of H.R. 217, which will provide more avenues for homeless veterans service providers to have access to the HUD funding processes.

H.R. 3039, THE VETERANS' TRANSITIONAL

HOUSING OPPORTUNITIES ACT OF 1997

Recognizing the challenges the veterans community faces in receiving a fair share of the HUD-administered homeless program funds, VVA supports Chairman Stump's effort to put additional tools into the hands of non-profit homeless veteran providers to get additional funding resources from private lenders. The VA loan guaranty program this bill contemplates will not only give these organizations an opportunity to access direct funds through the loans, but may help them to leverage these monies to get additional private, state and community resources.

Thousands of military veterans are experiencing severe problems including PTSD, substance abuse, or serious mental illnesses; in extreme circumstances these factors can contribute significantly to their descent into homelessness. Targeted programs to assist these special needs among homeless veterans, especially transitional housing using the continuum-of-care model, have proven very effective in transitioning these individuals back into mainstream society and reducing recidivism. The program model upon which this legislation is based is among the most successful methods of turning homeless veterans lives around.

VVA firmly believes that the Veterans Transitional Housing Opportunities Act of 1997 has significant potential to make more services available to a larger number of homeless veterans. And one of the very appealing aspects of this bill is the "recyclable" nature of the guaranty funds; as borrowers pay off their loans, VA will be able to reinvest these funds into additional loan guaranties to other homeless veteran providers.

VVA understands the concerns raised by some with the funding offset proposed in this bill. We should state for the record that we believe none (or certainly very few) of our members are participants in the National Service Life Insurance (NSLI) program, which insures veterans of World War II and Korea. Having said this, we agree that VA should have the authority to invest the current veterans life insurance funds more aggressively, while still administering the fund in a safe, financially sound manner. This is really a "good government" concept. But we are concerned that the perception of using these increased earnings to fund this homeless providers loan guarantee program may be that of robbing-Peter-to-pay-Paul. We believe effective public information can alleviate this problem. As designed, the NSLI beneficiaries should not see any less in their dividends, nor in the death claim payments to family members.

VVA recommended to the Committee staff upon reviewing the draft bill, that provisions be added to encourage lenders to make prudent loans, thereby reducing the possibility of default through risk sharing. We were pleased to see that this was accomplished by authorizing a maximum loan guarantee of 90 percent of the total cost of the project. We believe also that having VA contract with an experienced non-profit lender to assist with administration of this program will also help to maximize "good" loans and minimize defaults. Furthermore, coordination with VA & state and local authorities is absolutely critical to ensure the most efficient use of resources and to prevent duplication of services. A smooth continuum of care is the ideal goal of any such program.

In discussing this bill with some of our colleagues, VVA would like to reiterate the concerns raised about giving priority to veterans. Language added to H.R. 3039, which was not in the discussion draft would allow programs to service non-veterans and/or veterans who are not homeless. We understand that the purpose of this language is to prevent unused space from being wasted, and to allow the non-profit lendees to bring in additional revenue. We would like to see stronger protections, in either legislative or at least report language, to insure that intended program participants -- homeless veterans -- are not shut out by the potential of higher-paying veterans or non-veterans. Strong administrative and Congressional oversight should monitor this, as well, which should not be too difficult given the small number of loans to be made under this program.

We wanted to raise, too, a question about the timing of the first loans under this program. Will there be a delay in order to reap dividends from the investments? This is a question with potentially mixed objectives; while it is desirable to get monies out to the service providers as soon as possible, there may be some benefit in waiting until the new revenues can guarantee the loans. This could ease the perception problem noted above that some NSLI participants might be hurt by the program's funding source.

Other questions that need to be considered are:

How is "reasonable fee" for rent defined? For all practical purposes, this cannot be detailed in the statute, as it would vary by locality. But the regulations should detail certain requirements. Presumably the reasonable rent would vary with each participant's ability to pay, on a sliding scale. It is our understanding that all federal rental assistance programs limit or cap low-income rent payments to 30 percent of income; this could be the standard used for this program as well. The program regulations should require the loan applicant to detail these plans prior to receiving any loan guarantee funding.

Can veterans who are not yet "work-ready" enter the program? If so, how do they pay their share of the rent? Are they given a rent-free grace period or subsidy, and for how long? These points should also be outlined in the loan application. And again, how these requirements are outlined would most appropriately be done through the regulatory process.

VVA strongly believes this is one of the foremost issues facing the veterans community at this time, and it is closely tied in -- as the Committee's oversight efforts have noted -- to the ongoing evolution of VA medical care to primarily outpatient modalities and reduced access to inpatient substance abuse and PTSD treatments. The new tool this bill would create for addressing the problems of homeless veterans is not comprehensive; elderly and disabled veterans who cannot work to sustain themselves would not be impacted. But at the same time, it is a strong, positive step toward increased funding for homeless veterans assistance. VVA appreciates the Committee's attention to this very important and timely issue and we look forward to working with you on this and other measures to address homelessness among veterans.

SUGGESTED CHANGES FOR OTHER VA HOMELESS PROGRAMS

VVA would also like to mention some other minor modifications to P.L. 102-590 the Homeless Providers Grant and Per Diem Program which are recommended. Each of these program updates is logical and reasonable:

Institute an authority to recover grant funds if programs do not become operational. After an appropriate period of time, any grantee that does not become operational and begin serving homeless veterans should be required to refund the money. Such waste is a detriment and loss to other programs which could use those funds.

Update the statute to require adherence to federal fire and safety standards. This will allow grantees to use a portion of their grant monies to make these modifications, and will foster better coordination with VA health care services.

Authorize homeless providers to lease VA space for longer than 3 years. This will facilitate providers efforts to find other sources of revenue -- many state, local and private grantees or lenders may not provide funds for such a short duration project.

Raise or eliminate the cap on transport van funding. This high-demand program demonstrates a need for additional awards.

ARLINGTON NATIONAL CEMETERY

As noted before, to date VVA has no Convention Resolutions regarding Arlington National Cemetery nor the National Cemetery System. Having said this for the record, we believe our members would want VVA to speak to the sensitivities and merits of the Committee's draft legislation.

Recent scrutiny of the burial waiver procedures in Arlington National Cemetery have certainly brought to light the passion America feels for this most sacred of all military burial grounds. The public at large, and veterans in particular, were very alarmed at the appearance of impropriety of the burial waiver process. And for these reasons, it is with sound and clear objectives that the Committee is bringing forward legislation to codify and clarify the eligibility requirements for burial at Arlington National Cemetery.

What seems to have come to light -- aside from the disturbing allegations of possible political influence peddling in the waiver process -- is the fact that the burial eligibility for Arlington National Cemetery was not a matter of clear statutory guidance. And furthermore, the waiver process was not accessed by most veterans' families who were turned away by the Superintendent upon initial inquiries about eligibility. We suspect that many of these families were not aware of a waiver process, or probably took the Superintendent's assessment at face value and did not pursue nor even inquire about waivers. In such a circumstance, it is likely those who are politically connected, or particularly determined, who have been able to navigate the waiver process.

It certainly seems desirable to have a cut-and-dry set of criteria outlining who may and who may not be buried in Arlington National Cemetery. And thus eliminating a waiver process, precludes all appearances of impropriety. VVA particularly favors the requirement for the Secretary of the Army to publish a pamphlet outlining the new criteria, as well as the "Register of Buried Individuals." We believe these methods of public disclosure will help to erase the poor image of burial eligibility procedures which has evolved over the last several months.

It is with regret and compassion that VVA considers the additional, unnecessary pain that many families must have endured because their son, daughter, or parent was interred in recent years at Arlington National Cemetery. This hallowed ground is supposed to be a place of final peace and dignity, rather than a scandal bearer. While we understand that potential impropriety must be investigated by Congress and the media, we feel for these families whose privacy was invaded and whose rightful mourning was disturbed. We are hopeful that this legislation will preclude any such occurrence in the future.

CONCLUSION

As discussed previously, VVA fully supports this loan guarantee initiative and is ready to work with Congress and the VA to make it an effective tool for non-profit homeless veterans providers. We urge the Committee to continue developing creative solutions to the problem of homeless among veterans.

VVA further urges members of the Veterans' Affairs Committee to work -- both here in Congress and with your local communities -- to ensure that homeless veterans are receiving assistance they need to recapture their lives. Your support and assistance for local homeless veterans service providers can help these entities get better access to a wide range of funding sources, including the heretofore elusive HUD monies. We also request your strong support for H.R. 217, which will be considered by the full House very soon, and cosponsorship of H.R. 1754 to give these programs better access to HUD homeless assistance funds.

TABLE OF CONTENTS

INTRODUCTION 1

FEDERAL FUNDING FOR HOMELESS VETERANS 1

H.R. 3039, THE VETERANS' TRANSITIONALHOUSING OPPORTUNITIES ACT OF 1997 2

SUGGESTED CHANGES FOR OTHER VA HOMELESS PROGRAMS 4

ARLINGTON NATIONAL CEMETERY 4

CONCLUSION 5

Attachments:

Biography -- Kelli R. Willard West, Director of Government Relations

Funding Statement -- February 24, 1998

KELLI WILLARD WEST

Director of Government Relations

Kelli Willard West joined the VVA government relations department in 1993, after serving as Legislative Assistant in the U.S. House of Representatives, to a Member of Congress from her home state of Iowa. As VVA Legislative Assistant and subsequently Deputy Director for Government Relations, her areas of responsibility included health care, Agent Orange, PTSD and related issues. In October 1995, she was promoted to her current position as Director of Government Relations.

West is responsible for coordinating VVA government relations and legislative activities; advising VVA leaders on strategy; overseeing and training VVA's nationwide network of legislative coordinators in support of national VVA advocacy goals; and keeping the general VVA membership informed through reports in The VVA Veteran.

Kelli received her B.A. in Global Studies from the University of Iowa. She resides in Washington, D.C., with her husband Rich, who is Communications Director for a House member from Missouri.

FUNDING STATEMENT

February 24, 1998

The national organization Vietnam Veterans of America, Inc. (VVA) is a non-profit veterans membership organization registered as a 501(c)(19) with the Internal Revenue Service. VVA is also appropriately registered with the Secretary of the Senate and the Clerk of the House of Representatives in compliance with the Lobbying Disclosure Act of 1995.

VVA is not currently in receipt of any federal grant or contract, other than the routine allocation of office space and associated resources in VA Regional Offices for outreach and direct services through its Veterans Benefits Program (Service Representatives). This is also true of the previous two fiscal years.

For Further Information, Contact:

Director of Government Relations

Vietnam Veterans of America, Inc.