HOME LOAN GUARANTY

HOMELESS SHELTER PROGRAM

Disabilities determined by VA to be related to your military service can lead to monthly non-taxable compensation, enrollment in the 

VA health care system, a 10-point hiring preference for federal employment and other important benefits. Ask your VA 

representative or Veterans Service Organization representative about Disability Compensation, Pension, Health Care, Caregiver 

Program, Career Services, Educational Assistance, Home Loan Guaranty, Insurance and/or Dependents and Survivors’ Benefits

HOMELESS SHELTER PROGRAM

Since 1991, VA’s Loan Guaranty Service has administered the Homeless Shelter Program (HSP) 

to sell properties at a discount to Preferred Organizations, Nonprofit Organizations and local 

governments to provide shelter for Veterans who are homeless or at risk for homelessness. To 

be eligible, properties must (1) be vacant with title approved by VA Regional Counsel (2) be 

listed for sale for more than 30 days, and (3) not have any repairs in progress. Properties must 

be used to shelter Veterans who are homeless or at risk for homelessness for no less than three 

years. 

The discount from the initial listing price is dependent upon the length of time the property has been 

listed on the market as noted below:

Length of Time the Property has been Listed Discount

 At least 1, but less than 2 months 20%

 At least 2, but less than 3 months 35%

 3 months or more 50%

THE PURCHASE PROCESS

• All VA-acquired properties listed for more than 30 calendar days will be eligible for HSP. Visit

our home loan website for information about properties.

• Purchase offers must be submitted on forms and contracts provided by VA’s Property

Management Service Provider and must include a provision limiting the use of the property in

accordance with the VA requirements to use the property as a shelter for Veterans who are

homeless or at risk for homelessness for a period no less than three years.

DEFINITIONS 

Preferred Organization. Prescribed by statute in 38 U.S.C. § 5902. Preferred Organizations include 

the American National Red Cross, Disabled American Veterans, Veterans of Foreign Wars and such 

other organizations that VA may approve.
Home Loan Guaranty-October 2015

Qualified Nonprofit Organization. A Qualified Nonprofit Organization may sell or donate properties 

directly to Veterans or provide support to other nonprofit organizations involved in the same 

objective. To become a Qualified Nonprofit Organization, an entity must be formed for not-forprofit purposes, must have sufficient financial stability, and a record of success in reducing 

homelessness. The entity must also submit a property-use statement of intent acceptable to the 

Secretary of Veterans Affairs.

To become a Qualified Nonprofit Organization, contact the Contract Assurance (CA) Unit of LGY 

who must approve a submitted package complete with documents/information from the applying 

organization. The application should be submitted to the following address:

Department of Veterans Affairs

Attn: Contract Assurance Unit

3401 West End Avenue

Suite 760

Nashville, TN 37203

Applications can also be emailed to the Contract Assurance Unit at nashpm.vbaco@va.gov.

Approvals expire two years from the date of issuance and must be renewed before an organization 

can apply for new purchases. If you or any Veteran you know may be facing homelessness, please 

contact the National Call Center for Homeless Veterans.

For more information on this Program, please refer to the comprehensive guide located on the VA 

Home Loan Guaranty website. 

If you or any Veteran you know may be facing homelessness, please contact the

National Call Center for Homeless Veterans

1-877-4AID VET (877-424-3838) or visit the VA homeless website