Veterans' Compensation and Benefits Improvement Act of 1985

Veterans' Compensation and Benefits Improvements Act of 1985 - Title I: Disability Compensation and Dependency and Indemnity Compensation Rate Increases - Amends Federal law to increase the rates of veterans' disability compensation, additional compensation for dependents, and the clothing allowance for certain disabled veterans. Increases the rates of dependency and indemnity compensation for surviving spouses and for children, as well as the rates of supplemental dependency and indemnity compensation for children. Makes such increases dependent upon the occurrence of similar increases under title II (Old Age, Survivors and Disability Insurance) of the Social Security Act. Directs the Administrator of Veterans Affairs to compute alternative rate increases if such title II increases do not occur, and pay such increased benefits as of December 1, 1985. Requires any such computed increases to be published in the Federal Register.

Title II: Educational Assistance Program Improvements - Terminates a veteran's eligibility for educational assistance benefits as of ten years after the date of such veterans's last discharge or release from active duty. Authorizes the granting of an extension of such delimiting period for veterans who were prevented from initiating or completing a program of education within the delimiting because of a physical or mental disability which was not the result of the veterans' own willful misconduct.

Requires a veteran to undergo educational and vocational counseling before selecting a program of education in any case in which the Administrator has rated the veteran as being incompetent.

Authorizes an appropriate continuance in a veteran's eligibility for educational assistance for those veterans who were delayed in initiating or completing a program of education because of a delay in determining such person's eligibility for educational assistance.

Authorizes the Administrator to arrange for educational or vocational counseling for persons eligible for benefits.

Revises Federal provisions relating to the payment of veterans' educational assistance to authorize payments to veterans enrolled in programs not leading to a standard degree in certain instances. Requires the Administrator, in the case of educational assistance allowances for veterans pursuing an education at an institution on a less-than-half-time basis, to receive certification from such institution that such veteran has enrolled in and is pursuing a program at such institution.

Prohibits a veteran from receiving educational assistance benefits under more than one educational assistance program.

Authorizes the Administrator, in the case of a program of independent study pursued on a less-than-half-time basis at an educational institution, to approve a delay by the institution in certain reporting requirements until the end of the term, semester, or quarter.

Repeals Federal law allowing: (1) payments of educational assistance to veterans beyond the ten-year delimiting period; (2) the accelerated payment of educational allowances; and (3) the granting of educational loans to veterans. Authorizes the Administrator, for education loans made prior to the enactment of this Act, to continue collecting the principal and interest due on such loans, and to continue to maintain a certain fund used for the collection of such loan amounts.

Title III: Home Loan Guaranty Program Improvements - Revises Federal veterans' home loans provisions to require the Administrator to prescribe regulations and standards for determining the credit standing and other factors associated with veterans receiving home loan guarantees. Outlines provisions to be included in the determination of such loan underwriting standards. Requires any lender submitting a loan to the Administrator which is to be guaranteed to certify that it has complied with certain credit information and loan processing standards. Provides civil penalties for false certifications made by lenders. Authorizes the Administrator to waive such prescribed credit underwriting standards in extraordinary circumstances. Directs the Administrator to also require certain certifications from veterans applying for a home loan guarantee.

Increases the amount of home loan guaranty entitlement for each veteran from $27,500 to $32,500.

Requires the holder of a loan guarantee to promptly notify the Administrator of any failure of the debtor to make two consecutive monthly payments due on the loan. Requires the holder to initiate foreclosure within 15 days after the date on which the veteran has failed to make four consecutive monthly payments on a guaranteed loan. Provides for loss of interest payments by the Administrator to any holders of loans who fail to follow the required notification and foreclosure procedures. Directs the Administrator to compile and transmit to the Senate and House Veterans' Affairs Committees information on common factors which contribute to foreclosures on such guaranteed loans.

Directs the Administrator, during the period beginning April 1, 1986, and ending September 30, 1987, to conduct a pilot program to contract with commercial organizations for the management and disposal of property acquired by the VA due to veterans' home foreclosures. Directs the Administrator, no later than March 3, 1988, to report to the Senate and House Veterans' Affairs Committees on the experiences under the pilot program. Outlines information to be included in such report.

Requires the reasonable value of any property, construction, repairs, or alterations in connection with a guaranteed loan to be determined by an appraiser designated by the lender of such loan.

Directs the Administrator to furnish to real estate brokers and other real estate professionals information on the availability or real property for disposition due to foreclosure and the procedures used by the VA to dispose of such property.

Directs the Administrator to establish the Task Force on Management and Disposition of Property (the Task Force) whose purpose will be to: (1) exchange information between the VA and the real estate industry on efficient and current real property management and disposition practices; and (2) advise the Administrator on ways to improve the manner in which the VA manages and disposes of real property acquired via foreclosures. Requires the Administrator to regularly consult with and seek the advice of the Task Force on pertinent matters. Directs the Task Force, no later than July 1, 1986, and no later than July 1 of each second year thereafter, to report to the Administrator on its activities during the preceding period, together with recommendations. Directs the Administrator, no later than 30 days after the receipt of each such report, to transmit such report to the Senate and House Veterans' Affairs Committees, together with recommendations and other specified information.

Title IV: Miscellaneous Provisions - Amends the national cemeteries and memorials provisions of Federal law to require the Administrator to designate a section in each national cemetery for the burial of eligible persons in graves marked with an upright marker. Requires persons (or their survivors) requesting upright markers to be buried in such a section. Provides that all other markers in a national cemetery shall be flat markers.

Authorizes the Secretary of the Army to set aside suitable areas in Arlington National Cemetery, Virginia, to honor members of the armed forces and veterans: (1) who are missing in action; (2) whose remains have not been recovered or identified; (3) whose remains were buried at sea; (4) whose remains were donated to science; or (5) whose remains were cremated and whose ashes were scattered without internment of any portion thereof.

Prohibits further payments of pension, compensation, or retirement pay to institutionalized veterans determined to be incompetent and whose estate value exceeds $8,000 until the estate is reduced to $2,000 (currently, $1,500 and $500, respectively).

Directs the Administrator to conduct an evaluation to determine the extent to which the programs and other activities of the VA meet the needs of veterans who are Native Americans, including Alaska Natives. Outlines information to be included in such evaluation. Directs the Administrator, no later than October 1,1987, to report the findings of such evaluation to the Senate and House Veterans' Affairs Committees.

Directs the Administrator, no later than September 30, 1987, to collocate at least five regional offices of the VA with VA medical centers. Directs the Administrator, no later than September 30, 1986, to report to the Senate and House veterans' Affairs Committees on the feasibility of collocating more than five such offices. Outlines information to be included in the feasibility report. Requires the Administrator to assess the benefits and costs of combining VA regional offices which are located near each other.

Retitles the Emergency Veterans' Job Training Act of 1983 as the Veterans' Job Training Act of 1983. Extends through FY 1986 the authorization of appropriations under such Act. Extends the veterans' educational assistance program under such Act through specified periods after the enactment of this Act. Amends such Act to assure the payment of veterans' educational assistance for FY 1986 even if funds are not authorized to be appropriated for such purpose. Increases veterans' eligibility for such assistance by reducing from 15 out of 20 to ten out of 20 the number of weeks preceding an application for assistance a veteran must have been unemployed in order to qualify.

Directs the Secretary of Labor to evaluate the feasibility and advisability of establishing and administering a program under which grants are made from a veterans' job training grant fund to a State or appropriate private industry council to fund on job training programs similar to veterans' job training programs in depressed employment areas or industries. Directs the Secretary, no later than 90 days after enactment of this Act, to report the results of such evaluation to the Senate and House Veterans' Affairs Committees. Outlines specified findings and recommendations to be included by the Secretary in such report.