To amend title 36, United States Code, to grant a Federal charter to the Veterans Association of Real Estate Professionals.

Bill Number

H.R. 3981

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Armed Forces and National Security

Status

Introduced

Latest Action

2025-06-12: Referred to the House Committee on the Judiciary.

Last Updated

2026-03-30T16:29:34Z

AI-Generated Summary

Purpose of the Legislation

This bill (H.R. 3981) aims to grant a federal charter to the Veterans Association of Real Estate Professionals (VAREP), a nonprofit organization already incorporated under California law and recognized as a veterans service organization under federal tax rules. The charter would elevate VAREP's status, allowing it to operate more formally as a national entity focused on supporting veterans through real estate, financial education, and economic opportunities.

Key Provisions

The bill amends title 36 of the U.S. Code by adding a new chapter (2302) that details VAREP's structure and operations:

• Organization: VAREP is established as a federally chartered nonprofit corporation, provided it maintains its tax-exempt status under section 501(c)(19) of the Internal Revenue Code (which applies to veterans service organizations). The charter expires if VAREP fails to comply with the chapter's rules.
• Purposes: VAREP's goals include:
• Advocating for veterans' homeownership, providing financial literacy education, raising awareness of VA-guaranteed housing loans, and expanding economic opportunities for military members and veterans.
• Creating facilities and programs for veterans on topics like financial literacy (e.g., credit understanding), workforce development, small business support, housing education (including preventing homelessness, rental counseling, foreclosure prevention, and affordable housing), and suicide prevention.
• Offering a platform for real estate and financial professionals to collaborate and better serve military families and veterans.
• Partnering with real estate and financial sectors to promote veteran employment and business growth.
• Membership: Determined by VAREP's articles and bylaws, with rights and privileges outlined therein.
• Governing Body: A board of directors and officers, structured and elected per VAREP's articles and bylaws.
• Powers: Limited to those specified in VAREP's bylaws and articles of incorporation filed in relevant states.
• Restrictions:
• No issuing stock, paying dividends, or distributing income/assets to directors, officers, or members (except reasonable compensation or expense reimbursements approved by the board).
• No political contributions, support, or activities by the organization or its officers.
• No loans to directors, officers, employees, or members.
• Cannot claim U.S. government endorsement for its activities.
• Must remain incorporated under California law.
• Tax-Exempt Status: Required to maintain the charter; failure leads to termination.
• Records and Inspection: VAREP must keep accurate financial records, minutes, member lists, and make its bylaws/articles publicly available online. Voting members (or their representatives) can inspect records for legitimate reasons.
• Service of Process: Must follow state laws where incorporated or operating.
• Liability: VAREP is responsible for actions of its officers and agents within their authority.
• Annual Report: VAREP must submit a yearly report to Congress on its activities, aligned with its financial audit, but not printed as a public document.
• Definition of "State": Includes the 50 states, District of Columbia, Puerto Rico, and U.S. territories/possessions.

A clerical amendment updates the table of chapters in title 36 to include the new chapter.

Significant Changes to Existing Law

• Introduces a new chapter (2302) to part B of subtitle II of title 36, U.S. Code, which governs patriotic and national observances, ceremonies, and organizations.
• This is a standard process for granting federal charters to qualifying nonprofits, similar to those for other veterans groups (e.g., following chapter 2301), but tailored specifically to VAREP's focus on real estate and financial services for veterans.
• No alterations to existing veterans benefits laws or tax codes; it solely provides formal federal recognition without granting special privileges or funding.

Potential Impacts

• On Government Agencies: Minimal direct impact; the Department of Veterans Affairs (VA) may indirectly benefit from VAREP's efforts to promote VA housing loans, but no new obligations or funding are imposed. Congress gains oversight via annual reports.
• On Citizens: Primarily benefits veterans, active-duty military members, and their families by enhancing access to education, housing support, and economic resources through a federally recognized entity. Real estate professionals may gain networking opportunities to serve this community better.
• On International Relations: None; the bill is domestic-focused on U.S. veterans and organizations.

Main Stakeholders Affected

• Veterans Association of Real Estate Professionals (VAREP): Gains federal charter status, boosting credibility and national reach.
• Veterans and Military Families: Direct beneficiaries of expanded programs for homeownership, financial education, housing stability, and economic development.
• Real Estate and Financial Professionals: Provided a forum for collaboration and empowerment to address veterans' needs.
• Government Entities: Congress (for reporting) and VA (for loan awareness promotion), though indirectly.
• Broader Nonprofit Sector: Sets a precedent for similar veterans-focused groups seeking federal charters.

Notable Legal, Constitutional, or Political Implications

• Legal: Reinforces standard federal charter requirements, emphasizing nonprofit compliance (e.g., no political involvement, transparency in records) to prevent abuse. The charter's conditional nature (tied to tax-exempt status) ensures accountability without creating new enforcement mechanisms.
• Constitutional: Aligns with Congress's authority under Article I, Section 8 to establish uniform rules for federal recognition of organizations; no First Amendment issues, as restrictions on political activities are typical for chartered nonprofits and do not infringe on individual rights.
• Political: Signals bipartisan support for veterans' services (introduced by representatives from Nevada and Virginia), potentially encouraging similar charters for niche veteran support groups. It promotes private-sector involvement in veteran welfare without federal spending, avoiding budgetary controversies.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Lee, Susie [D-NV-3]

Cosponsors (11)

Rep. Kiggans, Jennifer A. [R-VA-2], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Calvert, Ken [R-CA-41], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Begich, Nicholas J. [R-AK-At Large], Rep. Davis, Donald G. [D-NC-1], Rep. Ross, Deborah K. [D-NC-2], Rep. Wittman, Robert J. [R-VA-1], Rep. LaLota, Nick [R-NY-1], Rep. Malliotakis, Nicole [R-NY-11], Rep. Mills, Cory [R-FL-7]

Recent Actions

• 2025-06-12: Referred to the House Committee on the Judiciary.
• 2025-06-12: Introduced in House
• 2025-06-12: Introduced in House

Bill Versions

• To amend title 36, United States Code, to grant a Federal charter to the Veterans Association of Real Estate Professionals. — issued 2025-06-12 — PDF (7 pages)