38 USC 2041 - Housing assistance for homeless veterans

View all text of Subchapter V [§ 2041 - § 2044]

§ 2041. Housing assistance for homeless veterans

(a)

(1) To assist homeless veterans and their families in acquiring shelter or permanent housing, the Secretary may enter into agreements described in paragraph (2) with—

(A) nonprofit organizations, with preference being given to any organization that is the recipient of a grant under section 2011, 2013, 2044, or 2061 of this title; or

(B) any State or tribal entity, or any political subdivision thereof.

(2) To carry out paragraph (1), the Secretary may enter into agreements to sell, lease, lease with an option to purchase, or donate real property, and improvements thereon, acquired by the Secretary as the result of a default on a loan made, insured, or guaranteed under this chapter. Such sale or lease or donation shall be for such consideration as the Secretary determines is in the best interests of homeless veterans and the Federal Government.

(3) The Secretary may enter into an agreement under paragraph (1) of this subsection only if—

(A) the Secretary determines that such an action will not adversely affect the ability of the Department—

(i) to fulfill its statutory missions with respect to the Department loan guaranty program and the short- and long-term solvency of the Veterans Housing Benefit Program Fund established under section 3722 of this title; or

(ii) to carry out other functions and administer other programs authorized by law;

(B) the entity to which the property is sold, leased, or donated agrees to—

(i)(I) utilize the property solely as a shelter or permanent housing primarily for homeless veterans and their families; or(II) sell or rent the property directly to homeless veterans or veterans at risk of homelessness;

(ii) comply with all zoning laws relating to the property;

(iii) make no use of the property that is not compatible with the area where the property is located; and

(iv) take such other actions as the Secretary determines are necessary or appropriate in the best interests of homeless veterans and the Federal Government; and

(C) the Secretary determines that there is no significant likelihood of the property being sold for a price sufficient to reduce the liability of the Department or the veteran who defaulted on the loan.

(4) The term of any lease under this subsection may not exceed three years.

(5) An approved entity that leases a property from the Secretary under this section shall be responsible for the payment of any taxes, utilities, liability insurance, and other maintenance charges or similar charges that apply to the property.

(6) Any agreement, deed, or other instrument executed by the Secretary under this subsection shall be on such terms and conditions as the Secretary determines to be appropriate and necessary to carry out the purpose of such agreement.

(b)

(1) Subject to paragraphs (2) and (3), the Secretary may make loans to organizations described in paragraph (1)(A) of subsection (a) to finance the purchase of property by such organizations under such subsection.

(2) In making a loan under this subsection, the Secretary—

(A) shall establish credit standards to be used for this purpose;

(B) may, pursuant to section 3733(a)(6) of this title, provide that the loan will bear interest at a rate below the rate that prevails for similar loans in the market in which the loan is made; and

(C) may waive the collection of a fee under section 3729 of this title in any case in which the Secretary determines that such a waiver would be appropriate.

(Added Pub. L. 102–54, § 9(a), June 13, 1991, 105 Stat. 272, § 1835; renumbered § 3735, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; amended Pub. L. 102–590, §§ 8, 9, Nov. 10, 1992, 106 Stat. 5140; Pub. L. 103–446, title XII, § 1201(d)(13), Nov. 2, 1994, 108 Stat. 4684; Pub. L. 104–110, title I, § 101(h), Feb. 13, 1996, 110 Stat. 768; Pub. L. 105–114, title II, § 203(a), Nov. 21, 1997, 111 Stat. 2288; Pub. L. 105–368, title VI, § 602(e)(1)(G), Nov. 11, 1998, 112 Stat. 3347; Pub. L. 106–117, title IX, § 902, Nov. 30, 1999, 113 Stat. 1587; renumbered § 2041, Pub. L. 107–95, § 5(c), Dec. 21, 2001, 115 Stat. 918; Pub. L. 108–170, title IV, § 404, Dec. 6, 2003, 117 Stat. 2063; Pub. L. 109–444, § 8(a)(5), Dec. 21, 2006, 120 Stat. 3313; Pub. L. 109–461, title VII, § 705, title X, §§ 1004(a)(5), 1006(b), Dec. 22, 2006, 120 Stat. 3440, 3465, 3468; Pub. L. 112–37, § 10(e), Oct. 5, 2011, 125 Stat. 397; Pub. L. 112–191, title II, § 205, Oct. 5, 2012, 126 Stat. 1439; Pub. L. 113–59, § 10, Dec. 20, 2013, 127 Stat. 662; Pub. L. 113–175, title II, § 205, Sept. 26, 2014, 128 Stat. 1904; Pub. L. 114–58, title III, § 303, Sept. 30, 2015, 129 Stat. 534; Pub. L. 114–228, title III, § 304, Sept. 29, 2016, 130 Stat. 939; Pub. L. 117–328, div. U, title III, § 304, Dec. 29, 2022, 136 Stat. 5470.)