10 U.S.C. § 2876 — Rental guarantees

Page 2301 TITLE 10—ARMED FORCES § 2878 Secretary under this section may not exceed an amount equal to 45 percent of the capital cost (as determined by the Secretary) of the project or projects that the eligible entity proposes to carry out under this section with the invest- ment. (3) In this subsection, the term ‘‘capital cost’’, with respect to a project for the acquisition or construction of housing, means the total amount of the costs included in the basis of the housing for Federal income tax purposes. (d) COLLATERAL INCENTIVE AGREEMENTS.—The Secretary concerned shall enter into collateral incentive agreements with eligible entities in which the Secretary makes an investment under this section to ensure that a suitable preference will be afforded members of the armed forces and their dependents in the lease or purchase, as the case may be, of a reasonable number of the housing units covered by the investment. (Added Pub. L. 104–106, div. B, title XXVIII, § 2801(a)(1), Feb. 10, 1996, 110 Stat. 546; amended Pub. L. 105–85, div. B, title XXVIII, § 2805, Nov. 18, 1997, 111 Stat. 1991; Pub. L. 106–65, div. B, title XXVIII, § 2803(d), (h)(1), Oct. 5, 1999, 113 Stat. 849; Pub. L. 108–136, div. A, title X, § 1031(a)(50), Nov. 24, 2003, 117 Stat. 1602; Pub. L. 113–66, div. B, title XXVIII, § 2805, Dec. 26, 2013, 127 Stat. 1008.) Editorial Notes AMENDMENTS 2013—Subsec. (e). Pub. L. 113–66 struck out subsec. (e). Text read as follows: ‘‘Amounts in the Department of Defense Family Housing Improvement Fund or the De- partment of Defense Military Unaccompanied Housing Improvement Fund may be used to make a cash invest- ment under this section in an eligible entity only after the end of the 30-day period beginning on the date the Secretary of Defense submits written notice of, and jus- tification for, the investment to the appropriate com- mittees of Congress or, if earlier, the end of the 14-day period beginning on the date on which a copy of the no- tice and justification is provided in an electronic me- dium pursuant to section 480 of this title.’’ 2003—Subsec. (e). Pub. L. 108–136 inserted before pe- riod at end ‘‘or, if earlier, the end of the 14-day period beginning on the date on which a copy of the notice and justification is provided in an electronic medium pur- suant to section 480 of this title’’. 1999—Pub. L. 106–65, § 2803(h)(1), struck out ‘‘in non- governmental entities’’ after ‘‘Investments’’ in section catchline. Subsec. (a). Pub. L. 106–65, § 2803(d)(1), substituted ‘‘an eligible entity’’ for ‘‘nongovernmental entities’’. Subsec. (c). Pub. L. 106–65, § 2803(d)(2), substituted ‘‘an eligible entity’’ for ‘‘a nongovernmental entity’’ in pars. (1) and (2) and ‘‘the eligible entity’’ for ‘‘the enti- ty’’ wherever appearing in pars. (1) and (2). Subsec. (d). Pub. L. 106–65, § 2803(d)(3), substituted ‘‘el- igible’’ for ‘‘nongovernmental’’. Subsec. (e). Pub. L. 106–65, § 2803(d)(4), substituted ‘‘an eligible entity’’ for ‘‘a nongovernmental entity’’. 1997—Subsec. (e). Pub. L. 105–85 added subsec. (e). § 2876. Rental guarantees The Secretary concerned may enter into agreements with eligible entities that acquire or construct military family housing units or mili- tary unaccompanied housing units under this subchapter in order to assure— (1) the occupancy of such units at levels specified in the agreements; or (2) rental income derived from rental of such units at levels specified in the agreements. (Added Pub. L. 104–106, div. B, title XXVIII, § 2801(a)(1), Feb. 10, 1996, 110 Stat. 546; amended Pub. L. 106–65, div. B, title XXVIII, § 2803(e), Oct. 5, 1999, 113 Stat. 849.) Editorial Notes AMENDMENTS 1999—Pub. L. 106–65 substituted ‘‘eligible entities’’ for ‘‘private persons’’ in introductory provisions. § 2877. Differential lease payments Pursuant to an agreement entered into by the Secretary concerned and a lessor of military family housing or military unaccompanied hous- ing to members of the armed forces, the Sec- retary may pay the lessor an amount in addition to the rental payments for the housing made by the members as the Secretary determines appro- priate to encourage the lessor to make the hous- ing available to members of the armed forces as military family housing or as military unaccom- panied housing. (Added Pub. L. 104–106, div. B, title XXVIII, § 2801(a)(1), Feb. 10, 1996, 110 Stat. 547; amended Pub. L. 106–65, div. B, title XXVIII, § 2803(f), Oct. 5, 1999, 113 Stat. 849.) Editorial Notes AMENDMENTS 1999—Pub. L. 106–65 substituted ‘‘a lessor’’ for ‘‘a pri- vate lessor’’. § 2878. Conveyance or lease of existing property and facilities (a) CONVEYANCE OR LEASE AUTHORIZED.—The Secretary concerned may convey or lease prop- erty or facilities (including ancillary supporting facilities) to eligible entities for purposes of using the proceeds of such conveyance or lease to carry out activities under this subchapter. (b) INAPPLICABILITY TO PROPERTY AT INSTALLA- TION APPROVED FOR CLOSURE.—The authority of this section does not apply to property or facili- ties located on or near a military installation approved for closure under a base closure law. (c) COMPETITIVE PROCESS.—The Secretary con- cerned shall ensure that the time, method, and terms and conditions of the reconveyance or lease of property or facilities under this section from the eligible entity permit full and free competition consistent with the value and na- ture of the property or facilities involved. (d) TERMS AND CONDITIONS.—(1) The convey- ance or lease of property or facilities under this section shall be for such consideration and upon such terms and conditions as the Secretary con- cerned considers appropriate for the purposes of this subchapter and to protect the interests of the United States. (2) As part or all of the consideration for a conveyance or lease under this section, the pur- chaser or lessor (as the case may be) shall enter into an agreement with the Secretary to ensure that a suitable preference will be afforded mem- bers of the armed forces and their dependents in the lease or sublease of a reasonable number of the housing units covered by the conveyance or lease, as the case may be, or in the lease of