WASHINGTON--The Defense Credit Union Council Monday submitted a letter to the leadership of the Subcommittee on Housing, Transportation, and Community Development sharing its appreciation for the subcommittee’s attention to housing innovation as the nation faces an affordable housing crisis, the trade group said.
In the letter to Chair Katie Britt and Ranking Member Tina Smith, DCUC shared how the shortage of affordable homes greatly affects military families who move frequently and are often subject to high cost areas surrounding military bases. Basic Allowance for Housing (BAH) often fails to keep up with the fast-rising local market rents, leaving military families to cover the difference out-of-pocket.
The high cost of housing also affects Veterans. Many are on fixed incomes or disability benefits which can lead to Veterans being driven out of the communities they settled in after service due to unsustainable rent and interest rate increases.
“Simply put, when those who wore the uniform cannot find an affordable place to live, it not only harms their financial well-being but also undermines military mission readiness, recruitment, and retention,” wrote Jason Stverak, DCUC Chief Advocacy Officer.
“If we want to maintain an all-volunteer force, we must ensure that those who serve can afford to live where they serve,” DCUC President/CEO Anthony Hernandez added.
The letter also addresses the low use of the VA Home Loan benefit, driven by the misperception that these loans are harder to close or involve delays as well as bureaucratic issues such as slower appraisals. These barriers leave Veterans unable to use the benefits that they have earned.
DCUC noted that despite the hurdles, credit unions are implementing solutions to expand housing access and affordability:
- Specialized VA Home Loan Programs that streamline the process and reduce fees
- First-Time Homebuyer Grants and Assistance that help young servicemembers and their families with down-payment grants bridge the gap
- Financial Education and Housing Counseling that prepare servicemembers and their families for the home buying process via certified housing counselors
- Leveraging the Federal Home Loan Bank Affordable Housing Program to provide subsidies for low- and moderate-income military homebuyers to cover critical needs such as closing costs, home repairs, or gap financing
- PCS Bridge Loans and Relocation Mortgages that assist military families when they receive orders to move, often before they are able to sell their current home or find a new one in their new location
The letter also focused on how credit unions go “beyond banking” to support housing stability, working within their communities to combat homelessness and improve housing conditions, especially for aging veterans.
In order to do more, DCUC’s recommendations included:
- Raise the Credit Union Member Business Lending Cap for Housing Projects
- Expand Credit Unions’ Access to the Federal Home Loan Bank System
- Modernize Field of Membership Rules to Reach Underserved Areas
- Enhance and Promote the VA Home Loan Program
- Increase Basic Allowance for Housing (BAH) and Tie it to Real Market Costs
- Support Affordable Housing Initiatives in Military Communities
- Reduce Regulatory Burdens that Impede Mortgage Lending by Community Lenders
DCUC offered its support to the committee, stating, “Whether it is a statutory change to empower community lenders, an appropriation to fund targeted programs, or simply collaborating with agencies to improve processes, DCUC and America’s credit unions are eager partners in crafting housing solutions.”