HouseH.R. 10590119th Congress
Veteran Owner-Builders Rights Act
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10590 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10590
To establish a pilot program under which the Secretary of Veterans
Affairs makes direct housing loans to veterans in rural areas for the
construction of new homes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 24, 2026
Ms. Perez (for herself and Mr. Westerman) introduced the following
bill; which was referred to the Committee on Veterans' Affairs
_______________________________________________________________________
A BILL
To establish a pilot program under which the Secretary of Veterans
Affairs makes direct housing loans to veterans in rural areas for the
construction of new homes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Veteran Owner-Builders Rights Act''.
SEC. 2. PILOT PROGRAM FOR DIRECT HOUSING LOANS BY THE SECRETARY OF
VETERANS AFFAIRS TO VETERANS IN RURAL AREAS FOR THE
CONSTRUCTION OF NEW HOMES.
(a) Establishment.--Beginning not later than 180 days after the
date of the enactment of this Act, the Secretary of Veterans Affairs
shall carry out a pilot program under which the Secretary shall make a
direct housing loan to a veteran to purchase land in a rural area (as
such term is defined in 343 of the Consolidated Farm and Rural
Development Act (7 U.S.C. 1991)) and construct a dwelling, to be owned
and occupied by the veteran--
(1) as the veteran's primary residence; and
(2) for the period of at least 24 consecutive months that
immediately follows such construction.
(b) Loan Restrictions.--No loan may be made under the pilot program
unless--
(1) the contemplated terms of payment required in such loan
bear a proper relation to the veteran's present and anticipated
income and expenses;
(2) the veteran is a satisfactory credit risk, in
accordance with the credit underwriting standards established
pursuant to subsection (g) of section 3710 of title 38, United
States Code;
(3) the nature and condition of the property is such as to
be suitable for dwelling purposes;
(4) the loan does not exceed the reasonable value of
construction determined pursuant to section 3731 of title 38,
United States Code; and
(5) the veteran agrees to use blueprints furnished under
subsection (c) to construct the home in accordance with the
requirements under subsection (d).
(c) Blueprints.--
(1) Sole source.--Representatives Marie Gluesenkamp Perez
of Washington and Bruce Westerman of Arkansas shall establish
housing blueprints in collaboration with the Secretary not
later than 30 days after the date of the enactment of this Act.
(2) Furnishing to applicant.--The Secretary shall furnish
such blueprints to a veteran who applies for a loan under the
pilot program.
(d) Domestically-Sourced Wood Products.--The dwelling shall be
constructed--
(1) using only domestic lumber for all structural wood
framing components; and
(2) to the maximum extent practicable, as determined by the
Secretary, using only domestically sourced or domestically
manufactured wood products for non-structural components such
as cabinets, shelving, interior doors, and trim.
(e) State and Local Permits.--
(1) Preemption.--Notwithstanding any other provision of
law, a State or local government that receives an application
for a construction permit that uses blueprints furnished under
subsection (c) shall issue such permit not later than 45 days
after such receipt.
(2) Fees.--The Secretary shall pay the fee for a permit
issued pursuant to paragraph (1).
(f) Interest; Terms.--A loan made under the pilot program shall
bear interest at a rate of one percent and shall be subject to such
requirements or limitations prescribed for loans guaranteed or made
under chapter 37 of title 38, United States Code, that the Secretary
determines to be applicable.
(g) Technical Assistance.--The Secretary of Veterans Affairs shall
provide technical assistance, directly or through a contracted third
party, to a veteran who receives a loan under the pilot program. Such
assistance may include the following:
(1) Training regarding skills necessary to construct or
repair a home.
(2) Assistance in filing an application for a permit
described in subsection (e).
(h) Loan Acceleration for Early Transfer or Lease.--
(1) Requirement.--If, at any time before the completion of
the 24-month occupancy period required under subsection (a)(2),
the veteran sells, transfers, leases, or otherwise permits any
person other than the veteran or the veteran's dependents to
occupy the dwelling as a primary residence, the Secretary shall
accelerate the loan.
(2) Acceleration.--Upon a determination under paragraph
(1), the entire unpaid balance of the loan, including any
accrued interest, shall become immediately due and payable.
(3) Exceptions.--The Secretary may waive acceleration under
this subsection if the veteran demonstrates that the early
sale, transfer, or lease resulted from--
(A) military deployment or permanent change of
station;
(B) a documented medical hardship; or
(C) any other circumstance the Secretary determines
to be unavoidable and not inconsistent with the
purposes of the pilot program.
(4) Notice.--The Secretary shall provide written notice to
the veteran of any determination under this subsection and the
effective date of loan acceleration.
(i) Termination.--The authority of the Secretary of Veterans
Affairs to make a new loan under the pilot program shall terminate on
the date that is five years after the date of the enactment of this
Act.
(j) Authorization of Appropriations.--For the making of loans under
the pilot program, there is authorized to be appropriated to the
Secretary of Veterans Affairs $5,000,000 for fiscal year 2027, to
remain available until expended.
SEC. 3. MODIFICATION OF CERTAIN HOUSING LOAN FEES.
The loan fee table in section 3729(b)(2) of title 38, United States
Code, is amended by striking ``June 9, 2034'' each place it appears and
inserting ``June 12, 2034''.
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