Senate Passes Harkin Measure to Assist Homeless Veterans, Tax Credits for Renewable Energy

Press Release

Senate Passes Harkin Measure to Assist Homeless Veterans, Tax Credits for Renewable Energy
Just passed housing bill would assist more than 2,700 Iowa veterans having trouble finding affordable housing and continue support for renewable energy industry

U.S. Senator Tom Harkin (D-IA) today saw his provision to make it easier for disabled veterans to qualify for federal housing programs win approval by the full Senate. The Senate passed legislation aimed at addressing the mortgage crisis and included Harkin's measure and an amendment proposed by Senator John Cornyn (R-TX) - which Harkin supports - that would provide disabled military members with assistance for home improvements. The housing bill contains a variety of provisions designed to reduce foreclosures, and allow homeowners to stay in their homes.

"It is painfully clear that the housing foreclosure problem has snowballed into a full-fledged crisis affecting not just individual homeowners, but the economy as a whole. Veterans and their families join the millions of current and aspiring homeowners struggling to wade through this crisis. With homelessness among veterans already a significant problem, we should not be putting up unfair roadblocks that make it more difficult for them to qualify for the housing assistance they deserve," said Harkin. "Our veterans should not be penalized from receiving help because of government bureaucracy. I'm glad that the Senate included this straightforward fix in our housing bill."

Due to thick red tape, disabled American veterans have to wait anywhere from three months to over a year to receive benefits from the Department of Veterans Affairs (VA). To make matters worse once the VA finally delivers the benefits, they do so retroactively in a lump sum which wrongfully gets added to the income calculations used to determine eligibility for federal housing assistance programs.

Harkin proposed to fix this glitch. Currently, retroactive social security disability benefits that are received in a lump sum, or in prospective monthly amounts, are excluded from annual income calculations when determining eligibility for certain federal housing assistance programs, such as U.S. Department of Housing and Urban Development's (HUD) Section 8. Harkin's bill would do the same thing for our disabled veterans.

Under Harkin's bill, lump-sum disability payments will no longer be counted against disabled veterans when they seek to qualify for the following federal housing programs:

* Section 8 project-based and tenant-based (voucher) housing.
* Section 202 housing for the elderly
* Section 811 housing for persons with disabilities
* Housing financed by a loan or mortgage insured under the National Housing Act
* HUD subsidizes building owners' mortgage interest payments
* A number of USDA rental assistance programs.

Harkin also joined his colleagues in extending the production tax credits for wind power and other forms of renewable energy. The tax credits - which were set to expire at the end of this year - are especially important to Iowa for the expansion of wind power generation in the state and growing wind power systems in Iowa.

"Wind power manufacturers, acutely aware of Iowa's dedicated workforce and high quality of life, are flocking to the state, bringing good jobs and strengthening our economy," said Harkin. "With Iowa leading the nation in producing its power from wind energy, it is imperative that we continue to support our local renewable energy industries."

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