Title 24Hospitals and AsylumsRelease 119-73

§414 Fees paid by residents

Title 24 › Chapter CHAPTER 10— - ARMED FORCES RETIREMENT HOME › Subchapter SUBCHAPTER I— - ESTABLISHMENT AND OPERATION OF RETIREMENT HOME › § 414

Last updated Apr 6, 2026|Official source

Summary

The manager of each Armed Forces Retirement Home must collect a monthly fee from every resident and put those fees into the Armed Forces Retirement Home Trust Fund. The Chief Operating Officer, with the Secretary of Defense’s approval, sets the fees based on the Home’s money needs and residents’ ability to pay. Any fee change cannot start until 120 days after the Secretary tells the Senate and House Armed Services Committees. The fee is a percent of a resident’s monthly income and payments, including federal payments, and the same percent applies at every facility unless the Secretary changes it. For residents covered by section 412(a)(5), the income counted for the fee can’t be less than the retirement pay for equivalent active duty as set by the Chief Operating Officer, unless the COO allows an exception for strong personal reasons. There is a maximum monthly fee that rises each January 1 by the same percent retired and retainer pay increased on the prior December 1 under 10 U.S.C. 1401a(b) (ignoring paragraph (3) of that subsection). On admission, a manager may also charge an entrance fee for residents accepted under section 412(a)(5) equal to the per-year deductions under 37 U.S.C. 1007(i)(1) based on years of service under chapter 1223 of title 10; that money also goes into the Trust Fund.

Full Legal Text

Title 24, §414

Hospitals and Asylums — Source: USLM XML via OLRC

(a)The Administrator of each facility of the Retirement Home shall collect a monthly fee from each resident of that facility.
(b)The Administrators shall deposit fees collected under subsection (a) in the Armed Forces Retirement Home Trust Fund.
(c)(1)The Chief Operating Officer, with the approval of the Secretary of Defense, shall from time to time prescribe the fees required by subsection (a). Changes to such fees shall be based on the financial needs of the Retirement Home and the ability of the residents to pay. A change of a fee may not take effect until 120 days after the Secretary of Defense transmits a notification of the change to the Committees on Armed Services of the Senate and the House of Representatives.
(2)(A)The fee shall be fixed as a percentage of the monthly income and monthly payments (including Federal payments) received by a resident. The percentage shall be the same for each facility of the Retirement Home. The Secretary of Defense may make any adjustment in a percentage that the Secretary determines appropriate.
(B)The calculation of monthly income and monthly payments under subparagraph (A) for a resident eligible under section 412(a)(5) of this title shall not be less than the retirement pay for equivalent active duty service as determined by the Chief Operating Officer, except as the Chief Operating Officer may provide because of the compelling personal circumstances of such resident.
(3)The fee shall be subject to a limitation on maximum monthly amount. The amount of the limitation shall be increased, effective on January 1 of each year, by the percentage of the increase in retired pay and retainer pay that takes effect on the preceding December 1 under subsection (b) of section 1401a of title 10 without regard to paragraph (3) of such subsection.
(4)The Administrator of each facility of the Retirement Home may collect a fee upon admission from a resident accepted under section 412(a)(5) of this title equal to the deductions then in effect under section 1007(i)(1) of title 37 for each year of service computed under chapter 1223 of title 10 and shall deposit such fee in the Armed Forces Retirement Home Trust Fund.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2021—Subsec. (c)(2). Pub. L. 116–283, § 1412(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The fee shall be fixed as a percentage of the monthly income and monthly payments (including Federal payments) received by a resident. The percentage shall be the same for each facility of the Retirement Home. The Secretary of Defense may make any adjustment in a percentage that the Secretary determines appropriate.” Subsec. (c)(4). Pub. L. 116–283, § 1412(b)(2), added par. (4). 2011—Subsec. (a). Pub. L. 112–81, § 564(b)(1), substituted “Administrator” for “Director”. Subsec. (b). Pub. L. 112–81, § 564(b)(2), substituted “Administrators” for “Directors”. Subsec. (c)(3). Pub. L. 112–81, § 565(a), struck out at end “The first increase in a limitation on maximum monthly amount shall take effect on January 1, 2003.” Subsec. (d). Pub. L. 112–81, § 565(b), struck out subsec. (d) which related to transitional fee structures. 2001—Pub. L. 107–107 reenacted section catchline without change and amended text generally, substituting present provisions for provisions relating to collection of monthly fees in subsec. (a), deposit of fees in subsec. (b), fixing fees in subsec. (c), and application of fees in subsec. (d). 1994—Subsec. (c)(2). Pub. L. 103–337, § 371(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “The fee shall be fixed as a percentage of Federal payments made to a resident, including monthly retired or retainer pay, monthly civil service annuity, monthly compensation or pension paid to the resident by the Secretary of Veterans Affairs, and Social Security payments. Residents who do not receive such Federal payments shall be required to pay a monthly fee that is equivalent to the average monthly fee paid by residents who receive Federal payments, subject to such adjustments in the fee as the Retirement Home Board may make. The percentage shall be the same for each establishment of the Retirement Home.” Subsec. (d). Pub. L. 103–337, § 371(b)(2), added subsec. (d) and struck out former subsec. (d) which specified fees to be paid by residents of the Naval Home and residents of the United States Soldiers’ and Airmen’s Home who became residents of the Retirement Home on the

Effective Date

specified in section 1541(a) of Pub. L. 101–510. Subsec. (e). Pub. L. 103–337, § 371(b)(2)(A), struck out subsec. (e) which read as follows: “A person who becomes a resident of the Retirement Home after the

Effective Date

specified in section 1541(a) shall be required to pay a monthly fee that is equal to 25 percent of Federal payments made to the resident, subject to such adjustments in the fee as may be made under subsection (c) of this section.”

Statutory Notes and Related Subsidiaries

Effective Date

of 1994 Amendment Pub. L. 103–337, div. A, title III, § 371(d)(2), Oct. 5, 1994, 108 Stat. 2735, provided that: “The

Amendments

made by subsection (b) [amending this section] shall take effect on October 1, 1997.”

Effective Date

Section effective one year after Nov. 5, 1990, see section 1541(a) of Pub. L. 101–510, formerly set out as a note under section 401 of this title. Relief for Residents of the Armed Forces Retirement Home Impacted by Increase in Fees Pub. L. 115–232, div. A, title XIV, § 1415, Aug. 13, 2018, 132 Stat. 2092, provided that: “(a) Prohibition on Removal for Inability To Pay Fee Increase.—A resident of the Armed Forces Retirement Home as of
September 30, 2018, may not be removed or released from the Retirement Home after that date based solely upon the inability of the resident to pay the amount of any increase in fees applicable to residents of the Retirement Home that takes effect on
October 1, 2018. “(b) Other Relief.—The Chief Operating Officer of the Armed Forces Retirement Home shall take all actions practicable to accommodate residents of the Retirement Home who are impacted by the fee structure applicable to residents of the Retirement Home that takes effect on
October 1, 2018, including through hardship relief, additional deductions from gross income, and other appropriate actions.” Limitation on Applicability of Fee Increase for Residents of the Armed Forces Retirement Home Pub. L. 115–232, div. A, title XIV, § 1416, Aug. 13, 2018, 132 Stat. 2092, provided that: “(a) In General.—In the case of an individual who was a resident of the Armed Forces Retirement Home as of
April 9, 2018, the increase in fees for residents of the Home scheduled to take effect on
October 1, 2018, shall occur on an incremental basis over the three-year period beginning on
October 1, 2018, such that the total fee for such individual as a resident of the Home as of the end of such period covers the cost of care of such individual as a resident of the Home. “(b) Notice and Wait on Implementation of Future Increases.—Any increase in the fees for residents of the Home that is scheduled to take effect after
October 1, 2018, may not take effect until 90 days after the date on which a report on the increase is submitted to the Committees on Armed Services of the Senate and the House of Representatives.”

Reference

Citations & Metadata

Citation

24 U.S.C. § 414

Title 24Hospitals and Asylums

Last Updated

Apr 6, 2026

Release point: 119-73