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Monday, August 5, 2013
VA Mortgages Denied for Catchment Homes, State DoH Refuses to Act
By News Release @ 8:34 PM :: 4116 Views

News Release from Office of Rep Bob McDermott  August 5, 2013

After 5 months of investigation by Representative Bob McDermott, he has determined that the holdup of VA loans for homes with catchment systems is the direct result of arbitrary actions by the State Department of Health, and their reluctance to implement reasonable corrective action. Rep. McDermott has forwarded the following letter (and attachment - letter from VA regional director) to our Congressional delegation.

  *   *   *   *   *

From: Rep Bob McDermott

TO:

    • Senator Mazie Hirono
    • Senator Brian Schatz
    • Congresswoman Colleen Hanabusa
    • Congresswoman Tulsi Gabbard

Dear Members of Congress,

You have undoubtedly heard by now that the State Hawaii's misguided policy regarding catchment water is preventing Veterans from accessing their earned entitlement, namely a VA home loan. According to the 2000 census, there are 16,298 Veterans on the Big Island.  Of which, the VA estimates, 4500 are directly impacted by the catchment issue.

In 2011, the State Of Hawaii Department of Health (DOH) put up a web posting that said, catchment is not potable water see www.hawaii.gov/health/enviromental/water/sdwb/raincatch/taincatch.html The VA viewed this posting as new state policy. For clarity's sake, the action by State DOH is Not a Law, and Not a rule.  It is merely a policy promulgated by a mid-level bureaucrat that has the effect of denying Veterans home loans or the re-fi opportunity at historically low rates.

According to a UH report done by Mrs. Patricia Macomber, properly maintained catchment systems provide safe, clean, drinking water. Just ask the 60,000 residents on the big island who live off catchment or the county of Hawaii they permits such systems.

Since the State DOH website posting, the VA has not entertained home loans (or refi's) for Veterans who use water catchment. In fact, this local or regional restriction is noted on the VA website www.benefits.va.gov/homeloans/cav_approved_local_conditions.asp

The VA rules for Loans are straight forward:

  1. Domestic hot water
  2. A continuing supply of safe and potable water for drinking and other household uses, and
  3. Sanitary facilities and a safe method of sewage disposal.

After several meetings with the Administration, emails and a flurry of phone calls. The VA has offered a compromise solution in the letter attached. All the state has to do to help our veterans, is put up the suggested wording on the aforementioned website. Yet, despite the best intentions of Bruce Coppa and Blake Oshiro, the State DOH has refused to budge.

Needless to say, this has been extraordinarily frustrating for me. The solution is literally in our hands. The State of Hawaii DOH created this problem, and now we must fix it. Yet we continue to hold fast to a misguided and un-vetted policy put forth by some nameless faceless bureaucrat.

In closing, I ask you to prevail upon the Governor and have him fix this issue. I have been trying to get a meeting with him for several months and have been rebuffed. My concern is for the Veterans, let us not forget those who have given so much to us and provide the freedom that we enjoy today. Please call the Governor and demand his department gets this fixed ASAP. 2 ½ years for a simple fix is unacceptable.

With Much Aloha,

Bob McDermott

Related:  Rep McDermott: Dep't of Health Obstructing VA Loans (June 21, 2013)

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