PRIA, Government Policy, Made Personal

Summary

Loans allowed under this rule must pay for building, fixing up, buying land for, or refinancing a multifamily transitional housing project for homeless veterans. The loan can also cover reasonable costs for furniture, supplies, equipment, or working capital. The project must get substantial help from a state, local, or private group. The loan cannot be larger than what is prudent for similar projects and cannot exceed 90 percent of the project’s total cost. The borrower must be creditworthy, the loan must be secured, and the Secretary may set other reasonable loan terms based on similar housing projects. A "multifamily transitional housing project" here means housing for homeless veterans (including single-room units), with on-site support and job counseling, a requirement that residents seek and keep work, a reasonable occupancy fee, and strict sobriety rules. The project may include retail or job-training space and may house non-veterans only after local veteran needs are met and the same rules apply. When deciding to guarantee a loan, the Secretary must consider local VA medical services and how well veteran homelessness is being addressed in the community (per section 107 of Public Law 102–405).

Title 38, §2052

Veterans' Benefits, Source: USLM XML via OLRC

(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 transitional housing project described in subsection (b), or more than one of such purposes; 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 purposes 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 property or services for such project by either a State or local government or a nongovernmental entity, or both.

(3)The maximum loan amount does not exceed the lesser of—

(A)that amount generally approved (utilizing prudent underwriting principles) in the consideration and approval of projects of similar nature and risk so as to assure repayment 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) applying 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 multifamily 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 counselling services (including job counselling) at the project site with the goal of making such veterans 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 sobriety as a condition of occupying such unit.

(c)Such a project—

(1)may include space for neighborhood retail services, other commercial activities, or job training programs; and

(2)may provide transitional housing to veterans 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 veterans in the project area have been met;

(B)the housing needs of any such veteran or homeless individual can be met in a manner 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 Veterans 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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 107 of Public Law 102–405, referred to in subsec. (d)(2), is set out as a note under section 527 of this title.

Amendments

2004—Subsec. (c)(1). Pub. L. 108–454 substituted “services, 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 Amendment note under section 2106 of this title.

§2052 Requirements

Summary

Title 38, §2052

Notes & Related Subsidiaries

Editorial Notes

References in Text

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata