HousingWireHousingWire
Housing issues for U.S. veterans continue to be a major topic of conversation among housing advocates and lawmakers. Despite Monday’s passage of a bill to establish a partial claim option for veterans, some are still calling for the reinstatement of the Veteran Affairs Servicing Purchase (VASP) program.
VASP was started last year under the Biden administration, but it was a target of severe criticism from Republicans who said it would create a moral hazard and was fiscally unsustainable. The program was effectively discontinued by the U.S. Department of Veterans Affairs (VA) when it stopped accepting new applicants on May 1.
While industry advocates hoped to salvage VASP, a new effort to establish a partial claim for veterans emerged. The bill was swiftly passed by the House of Representatives on Monday despite some Democratic misgivings.
But some housing advocacy organizations — and some House lawmakers — say that finding a path forward for VASP is an essential tool for helping veterans avoid foreclosure.
On Tuesday, members of the National Consumer Law Center (NCLC) and the National Fair Housing Alliance, alongside lawmakers from the House Committee on Veterans Affairs, gathered to urge the VA to restore the VASP program.
“The administration’s abrupt cancellation of the VASP mortgage assistance program, for Veteran borrowers in need, puts tens of thousands of Veteran families with VA home loans at risk of losing their homes,” said Alys Cohen, a senior attorney at NCLC.
“The VA Home Loan Program is a benefit that Veterans have earned through service and sacrifice to give them housing stability,” she added.
NCLC did not specifically mention the House bill passed on Monday, but it has urged for a partial claim program for veterans to be implemented immediately.
While the new measure shows signs of progress for filling the gap, it has yet to earn a vote in the Senate and it’s unknown whether the new bill will have a long reconciliation process. After that, if a reconciled bill passes both chambers, it can then proceed to the president’s desk to be signed into law.
But the advocates warn that action is needed now to help veterans avoid adverse outcomes if they have delinquent mortgages.
“We are committed to working with Congress on establishing a new hardship program,” Cohen said. “But simply cancelling VASP without a replacement will throw tens of thousands of veterans out of their homes.”
During Monday’s debate on the House floor, Rep. Mark Takano (D-Calif.) expressed support for the new bill but described a similar scenario as he called for additional action.
“Regardless of how quickly we move in this chamber or in the Senate, it is going to take time to stand up this replacement program,” he said. “Meanwhile, we will see veterans lose their homes, all for a very flimsy reason.”
