A bill to amend title 38, United States Code, to improve the provision of benefits and assistance under laws administered by the Secretary of Veterans Affairs to veterans affected by natural or other disasters, and for other purposes.

Summary: Authorizes the Secretary of Veterans Affairs (VA), notwithstanding existing limitations on the assistance available to disabled veterans eligible for specially adapted housing grants, to award grants to veterans whose homes were previously adapted with such assistance if the adapted home used and occupied by the veteran was destroyed or substantially damaged in a natural or other disaster.

Requires any such awarded post-disaster adapted housing grant to be available to acquire a suitable housing unit with special fixtures or moveable facilities made necessary by the veteran's disability along with the land for such housing.

Permits the Secretary to: (1) extend up to an additional two months the subsistence allowances of veterans displaced by such disasters while satisfactorily following a program of employment services prescribed in a vocational rehabilitation program for certain veterans with service-connected disabilities; (2) provide or assist in providing a second automobile or other specified conveyance to eligible disabled veterans and members of the Armed Forces if an automobile or other conveyance previously purchased with assistance was destroyed by such a disaster through no fault of the individual and without compensation by a property insurer; and (3) in determining whether certain real estate housing loans are secured by a first lien, disregard or allow for subordination to a superior lien created by a duly recorded covenant running with the realty in favor of a public entity that has provided or will provide assistance in response to a major disaster as determined by the President under the Robert T. Stafford Disaster Relief and Emergency Assistance Act.

SECTION 1. ASSISTANCE TO VETERANS AFFECTED BY NATURAL DISASTERS.

    (a) Additional Grants for Disabled Veterans for Specially Adapted 
Housing.--
            (1) In general.--Chapter 21 of title 38, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2109. Specially adapted housing destroyed or damaged by natural 
              disasters
    ``(a) In General.--Notwithstanding the provisions of section 2102 
of this title, the Secretary may award a grant to a veteran whose home 
was previously adapted with assistance of a grant under this chapter in 
the event the adapted home which was being used and occupied by the 
veteran was destroyed or substantially damaged in a natural or other 
disaster, as determined by the Secretary.
    ``(b) Use of Funds.--A grant awarded under subsection (a) shall be 
available to acquire a suitable housing unit with special fixtures or 
moveable facilities made necessary by the veteran's disability, and 
necessary land therefor.
    ``(c) Limitations.--The amount of the grant awarded under 
subsection (a) may not exceed the lesser of--
            ``(1) the reasonable cost, as determined by the Secretary, 
        of repairing or replacing the damaged or destroyed home in 
        excess of the available insurance coverage on such home; or
            ``(2) the maximum grant amount to which the veteran would 
        have been entitled under subsection (a) or (b) of section 2102 
        of this title had the veteran not obtained the prior grant.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 21 of such title is amended by inserting 
        after the item relating to section 2108 the following new item:

``2109. Specially adapted housing destroyed or damaged by natural 
                            disasters.''.
    (b) Extension of Subsistence Allowance for Veterans Completing 
Vocational Rehabilitation Program.--Section 3108(a)(2) of such title is 
amended--
            (1) by inserting ``(A)'' before ``In''; and
            (2) by adding at the end the following new subparagraph:
    ``(B) In any case in which the Secretary determines that a veteran 
described in subparagraph (A) has been displaced as the result of a 
natural or other disaster while being paid a subsistence allowance 
under that subparagraph, as determined by the Secretary, the Secretary 
may extend the payment of a subsistence allowance under such 
subparagraph for up to an additional two months while the veteran is 
satisfactorily following a program of employment services described in 
such subparagraph.''.
    (c) Waiver of Limitation on Program of Independent Living Services 
and Assistance.--Section 3120(e) of such title is amended--
            (1) by inserting ``(1)'' before ``Programs''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The limitation in paragraph (1) shall not apply in any case 
in which the Secretary determines that a veteran described in 
subsection (b) has been displaced as the result of, or has otherwise 
been adversely affected in the areas covered by, a natural or other 
disaster, as determined by the Secretary.''.
    (d) Covenants and Liens Created by Public Entities in Response to 
Disaster-Relief Assistance.--Paragraph (3) of section 3703(d) of such 
title is amended to read as follows:
    ``(3)(A) Any real estate housing loan (other than for repairs, 
alterations, or improvements) shall be secured by a first lien on the 
realty. In determining whether a loan is so secured, the Secretary may 
either disregard or allow for subordination to a superior lien created 
by a duly recorded covenant running with the realty in favor of either 
of the following:
            ``(i) A public entity that has provided or will provide 
        assistance in response to a major disaster as determined by the 
        President under the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act (42 U.S.C. 5121 et seq.).
            ``(ii) A private entity to secure an obligation to such 
        entity for the homeowner's share of the costs of the 
        management, operation, or maintenance of property, services, or 
        programs within and for the benefit of the development or 
        community in which the veteran's realty is located, if the 
        Secretary determines that the interests of the veteran-borrower 
        and of the Government will not be prejudiced by the operation 
        of such covenant.
    ``(B) With respect to any superior lien described in subparagraph 
(A) created after June 6, 1969, the Secretary's determination under 
clause (ii) of such subparagraph shall have been made prior to the 
recordation of the covenant.''.
    (e) Automobiles and Other Conveyances for Certain Disabled Veterans 
and Members of the Armed Forces.--Section 3903(a) of such title is 
amended--
            (1) by striking ``No'' and inserting ``(1) Except as 
        provided in paragraph (2), no''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Secretary may provide or assist in providing an eligible 
person with a second automobile or other conveyance under this chapter 
if--
            ``(A) the Secretary receives satisfactory evidence that the 
        automobile or other conveyance previously purchased with 
        assistance under this chapter was destroyed--
                    ``(i) as a result of a natural or other disaster, 
                as determined by the Secretary; and
                    ``(ii) through no fault of the eligible person; and
            ``(B) the eligible person does not otherwise receive from a 
        property insurer compensation for the loss.''.