38 U.S.C. § 2052 — Requirements

Page 586 TITLE 38—VETERANS’ BENEFITS § 2052 (3) Not more than an aggregate amount of $100,000,000 in loans may be guaranteed under subsection (a). (c) A loan may not be guaranteed under this subchapter unless, before closing such loan, the Secretary has approved the loan. (d)(1) The Secretary shall enter into contracts with a qualified nonprofit organization, or other qualified organization, that has experience in underwriting transitional housing projects to obtain advice in carrying out this subchapter, including advice on the terms and conditions necessary for a loan that meets the require- ments of section 2052 of this title. (2) For purposes of paragraph (1), a nonprofit organization is an organization that is described in paragraph (3) or (4) of subsection (c) of section 501 of the Internal Revenue Code of 1986 and is exempt from tax under subsection (a) of such section. (e) The Secretary may carry out this sub- chapter in advance of the issuance of regula- tions for such purpose. (f) The Secretary may guarantee loans under this subchapter notwithstanding any require- ment for prior appropriations for such purpose under any provision of law. (g) Notwithstanding any other provision of law, a multifamily transitional housing project that is funded by a loan guaranteed under this subchapter may accept uncompensated vol- untary services performed by any eligible entity (as that term is defined in section 2011(d) of this title) in connection with the construction, alter- ation, or repair of such project. (Added Pub. L. 105–368, title VI, § 601(a), Nov. 11, 1998, 112 Stat. 3342, § 3772; renumbered § 2051 and amended Pub. L. 107–95, § 5(d)(1), (2)(B), Dec. 21, 2001, 115 Stat. 918; Pub. L. 108–454, title IV, § 402(a), Dec. 10, 2004, 118 Stat. 3615.) Editorial Notes REFERENCES IN TEXT The date of the enactment of this subchapter, re- ferred to in subsec. (b)(1), is the date of enactment of Pub. L. 105–368, which was approved Nov. 11, 1998. Section 501 of the Internal Revenue Code of 1986, re- ferred to in subsec. (d)(2), is classified to section 501 of Title 26, Internal Revenue Code. AMENDMENTS 2004—Subsec. (g). Pub. L. 108–454 added subsec. (g). 2001—Pub. L. 107–95, § 5(d)(1), renumbered section 3772 of this title as this section. Subsec. (d)(1). Pub. L. 107–95, § 5(d)(2)(B), substituted ‘‘section 2052 of this title’’ for ‘‘section 3773 of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as an Effective Date of 1998 Amend- ment note under section 2106 of this title. § 2052. Requirements (a) A loan referred to in section 2051 of this title meets the requirements of this subchapter if each of the following requirements is met: (1) The loan— (A) is for— (i) construction of, rehabilitation of, or acquisition of land for a multifamily tran- sitional housing project described in sub- section (b), or more than one of such pur- poses; or (ii) refinancing of an existing loan for such a project; and (B) may also include additional reasonable amounts for— (i) financing acquisition of furniture, equipment, supplies, or materials for the project; or (ii) in the case of a loan made for pur- poses of subparagraph (A)(i), supplying the organization carrying out the project with working capital relative to the project. (2) The loan is made in connection with funding or the provision of substantial prop- erty or services for such project by either a State or local government or a nongovern- mental entity, or both. (3) The maximum loan amount does not ex- ceed the lesser of— (A) that amount generally approved (uti- lizing prudent underwriting principles) in the consideration and approval of projects of similar nature and risk so as to assure re- payment of the loan obligation; and (B) 90 percent of the total cost of the project. (4) The loan is of sound value, taking into account the creditworthiness of the entity (and the individual members of the entity) ap- plying for such loan. (5) The loan is secured. (6) The loan is subject to such terms and conditions as the Secretary determines are reasonable, taking into account other housing projects with similarities in size, location, population, and services provided. (b) For purposes of this subchapter, a multi- family transitional housing project referred to in subsection (a)(1) is a project that— (1) provides transitional housing to homeless veterans, which housing may be single room occupancy (as defined in section 8(n) of the United States Housing Act of 1937 (42 U.S.C. 1437f (n))); (2) provides supportive services and counsel- ling services (including job counselling) at the project site with the goal of making such vet- erans self-sufficient; (3) requires that each such veteran seek to obtain and maintain employment; (4) charges a reasonable fee for occupying a unit in such housing; and (5) maintains strict guidelines regarding so- briety as a condition of occupying such unit. (c) Such a project— (1) may include space for neighborhood re- tail services, other commercial activities, or job training programs; and (2) may provide transitional housing to vet- erans who are not homeless and to homeless individuals who are not veterans if— (A) at the time of taking occupancy by any such veteran or homeless individual, the transitional housing needs of homeless vet- erans in the project area have been met; Page 587 TITLE 38—VETERANS’ BENEFITS § 2061 (B) the housing needs of any such veteran or homeless individual can be met in a man- ner that is compatible with the manner in which the needs of homeless veterans are met under paragraph (1); and (C) the provisions of paragraphs (4) and (5) of subsection (b) are met. (d) In determining whether to guarantee a loan under this subchapter, the Secretary shall consider— (1) the availability of Department of Vet- erans Affairs medical services to residents of the multifamily transitional housing project; and (2) the extent to which needs of homeless veterans are met in a community, as assessed under section 107 of Public Law 102–405. (Added Pub. L. 105–368, title VI, § 601(a), Nov. 11, 1998, 112 Stat. 3343, § 3773; renumbered § 2052 and amended Pub. L. 107–95, § 5(d)(1), (2)(C), Dec. 21, 2001, 115 Stat. 918; Pub. L. 108–454, title IV, § 402(b), Dec. 10, 2004, 118 Stat. 3616.) Editorial Notes REFERENCES IN TEXT Section 107 of Public Law 102–405, referred to in sub- sec. (d)(2), is set out as a note under section 527 of this title. AMENDMENTS 2004—Subsec. (c)(1). Pub. L. 108–454 substituted ‘‘serv- ices, other commercial activities,’’ for ‘‘services’’. 2001—Pub. L. 107–95, § 5(d)(1), renumbered section 3773 of this title as this section. Subsec. (a). Pub. L. 107–95, § 5(d)(2)(C), substituted ‘‘section 2051 of this title’’ for ‘‘section 3772 of this title’’ in introductory provisions. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as an Effective Date of 1998 Amend- ment note under section 2106 of this title. § 2053. Default (a) The Secretary shall take such steps as may be necessary to obtain repayment on any loan that is in default and that is guaranteed under this subchapter. (b) Upon default of a loan guaranteed under this subchapter and terminated pursuant to State law, a lender may file a claim under the guarantee for an amount not to exceed the less- er of— (1) the maximum guarantee; or (2) the difference between— (A) the total outstanding obligation on the loan, including principal, interest, and ex- penses authorized by the loan documents, through the date of the public sale (as au- thorized under such documents and State law); and (B) the amount realized at such sale. (Added Pub. L. 105–368, title VI, § 601(a), Nov. 11, 1998, 112 Stat. 3344, § 3774; renumbered § 2053, Pub. L. 107–95, § 5(d)(1), Dec. 21, 2001, 115 Stat. 918.) Editorial Notes AMENDMENTS 2001—Pub. L. 107–95 renumbered section 3774 of this title as this section. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as an Effective Date of 1998 Amend- ment note under section 2106 of this title. § 2054. Audit (a) During each of the first 3 years of oper- ation of a multifamily transitional housing project with respect to which a loan is guaran- teed under this subchapter, there shall be an an- nual, independent audit of such operation. Such audit shall include a detailed statement of the operations, activities, and accomplishments of such project during the year covered by such audit. The party responsible for obtaining such audit (and paying the costs therefor) shall be de- termined before the Secretary issues a guar- antee under this subchapter. (b) After the first three years of operation of such a multifamily transitional housing project, the Secretary may provide for periodic audits of the project. (Added Pub. L. 105–368, title VI, § 601(a), Nov. 11, 1998, 112 Stat. 3345, § 3775; amended Pub. L. 106–117, title VII, § 712, Nov. 30, 1999, 113 Stat. 1584; renumbered § 2054, Pub. L. 107–95, § 5(d)(1), Dec. 21, 2001, 115 Stat. 918.) Editorial Notes AMENDMENTS 2001—Pub. L. 107–95 renumbered section 3775 of this title as this section. 1999—Pub. L. 106–117 designated existing provisions as subsec. (a) and added subsec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as an Effective Date of 1998 Amend- ment note under section 2106 of this title. SUBCHAPTER VII—OTHER PROVISIONS § 2061. Grant program for homeless veterans with special needs (a) ESTABLISHMENT.—The Secretary shall carry out a program to make grants to health care facilities of the Department and to entities eligible for grants and per diem payments under sections 2011 and 2012 of this title in order to en- courage development by those facilities and en- tities of programs for homeless veterans with special needs. (b) HOMELESS VETERANS WITH SPECIAL NEEDS.—For purposes of this section, homeless veterans with special needs include homeless veterans who are— (1) women; (2) frail elderly; (3) terminally ill; (4) chronically mentally ill; or (5) individuals who have care of minor de- pendents. (c) PROVISION OF SERVICES TO DEPENDENTS.—A recipient of a grant under subsection (a) may use amounts under the grant to provide services directly to a dependent of a homeless veteran