I 

111TH CONGRESS 

2D SESSION H. R. 5838 

To amend title 38, United States Code, to improve the multifamily transitional housing loan program of the Department of Veterans Affairs 

by requiring the Secretary of Veterans Affairs to issue loans for the 

construction of, rehabilitation of, or acquisition of land for multifamily 

transitional housing projects instead of guaranteeing loans for such purposes, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2010 

Mrs. HALVORSON (for herself and Mr. RUSH) introduced the following bill; 

which was referred to the Committee on Veterans’ Affairs 

A BILL 

To amend title 38, United States Code, to improve the 

multifamily transitional housing loan program of the Department of Veterans Affairs by requiring the Secretary 

of Veterans Affairs to issue loans for the construction 

of, rehabilitation of, or acquisition of land for multifamily 

transitional housing projects instead of guaranteeing 

loans for such purposes, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Homeless Veterans 

3 Transitional Housing Act of 2010’’. 

4 SEC. 2. CONVERSION OF MULTIFAMILY TRANSITIONAL 

5 HOUSING LOAN PROGRAM TO LOAN 

6 ISSUANCE PROGRAM. 

7 (a) AUTHORITY TO ISSUE LOANS.— 

8 (1) IN GENERAL.—Section 2051 of title 38, 

9 United States Code, is amended— 

10 (A) in subsection (a)— 

11 (i) by striking ‘‘The’’ and inserting 

12 ‘‘(1) The’’; and 

13 (ii) by adding at the end the following 

14 new paragraph: 

15 ‘‘(2) The Secretary shall, utilizing funds available in 

16 the Multifamily Transitional Housing Loan Program Re17 volving Fund under section 2055 of this title, issue not 

18 less than five loans that meet the requirements of this sub19 chapter.’’; 

20 (B) in subsection (b)— 

21 (i) in paragraph (1), by striking 

22 ‘‘under subsection (a)’’ and inserting 

23 ‘‘under subsection (a)(1)’’; 

24 (ii) in paragraph (2), by striking 

25 ‘‘under subsection (a)’’ and inserting 

26 ‘‘under subsection (a)(1)’’; and 


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1 (iii) in paragraph (3), by inserting ‘‘or 

2 issued’’ after ‘‘guaranteed’’; 

3 (C) in subsection (c), by inserting ‘‘or 

4 issued’’ after ‘‘guaranteed’’; and 

5 (D) in subsection (g), by inserting ‘‘or 

6 issued’’ after ‘‘guaranteed’’. 

7 (2) AUTHORITY TO DELEGATE APPROVAL AU8 THORITY.—Subsection (c) of such section, as 

9 amended by paragraph (1)(C) of this subsection, is 

10 further amended— 

11 (A) by striking ‘‘A loan’’ and inserting 

12 ‘‘(1) A loan’’; and 

13 (B) by adding at the end the following new 

14 paragraph: 

15 ‘‘(2) The Secretary may delegate approval under 

16 paragraph (1) to a State or local government entity.’’. 

17 (3) SUNSET OF AUTHORITY TO ISSUE LOAN

18 GUARANTEES.—Such section is further amended by 

19 adding at the end the following new subsection: 

20 ‘‘(h) The Secretary may not guarantee under sub21 section (a)(1) any loan that is closed after the date of the 

22 enactment of this subsection. The termination by this sub23 section of the authority to guarantee loans under this sub24 section shall not affect the validity of any loan guaranteed 


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1 under this subchapter before the date of the enactment 

2 of this subsection and is in force on that date.’’. 

3 (4) CONFORMING AMENDMENTS.—Such title is 

4 further amended as follows: 

5 (A) In section 2052(d), by inserting ‘‘or 

6 issue’’ after ‘‘whether to guarantee’’. 

7 (B) In section 2053(a), by inserting ‘‘or 

8 issued’’ after ‘‘is guaranteed’’. 

9 (C) In section 2054(a)— 

10 (i) in the first sentence, by inserting 

11 ‘‘or issued’’ after ‘‘guaranteed’’; and 

12 (ii) in the last sentence, by inserting 

13 ‘‘or loan’’ after ‘‘guarantee’’. 

14 (5) CLERICAL AMENDMENTS.—Such title is fur15 ther amended as follows: 

16 (A) In the heading of subchapter VI of 

17 chapter 20, by striking ‘‘LOAN GUARANTEE 

18 FOR’’. 

19 (B) In the table of sections at the begin20 ning of such chapter, by striking the item relat21 ing to subchapter VI and inserting the following 

22 new item: 

‘‘SUBCHAPTER VI—MULTIFAMILY TRANSITIONAL HOUSING’’. 

23 (b) MULTIFAMILY TRANSITIONAL HOUSING LOAN

24 PROGRAM REVOLVING FUND.— 


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1 (1) IN GENERAL.—Subchapter VI of chapter 20 

2 of such title is amended by adding at the end the 

3 following new section: 

4 ‘‘§ 2055. Multifamily Transitional Housing Loan Pro5 gram Revolving Fund 

6 ‘‘(a) ESTABLISHMENT.—There is established in the 

7 Treasury of the United States a revolving fund known as 

8 the ‘Department of Veterans Affairs Multifamily Transi9 tional Housing Loan Program Revolving Fund’ (in this 

10 section referred to as the ‘Fund’). 

11 ‘‘(b) ELEMENTS.—There shall be deposited in the 

12 Fund the following, which shall constitute the assets of 

13 the Fund: 

14 ‘‘(1) Amounts paid into the Fund under any 

15 provision of law or regulation established by the Sec16 retary imposing fees on persons or entities issued a 

17 loan under this subchapter. 

18 ‘‘(2) All other amounts received by the Sec19 retary incident to operations relating to the issuance 

20 of loans under this subchapter, including— 

21 ‘‘(A) collections of principal and interest 

22 on loans issued by the Secretary under this sub23 chapter; 


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1 ‘‘(B) proceeds from the sale, rental, use, or 

2 other disposition of property acquired under 

3 this subchapter; and 

4 ‘‘(C) penalties collected pursuant to this 

5 subchapter. 

6 ‘‘(3) Amounts appropriated or otherwise made 

7 available before the date of the enactment of this 

8 section for purposes of activities under this sub9 chapter, including amounts appropriated for such 

10 purposes under title I of the Department of Vet11 erans Affairs and Housing and Urban Development, 

12 and Independent Agencies Appropriations Act, 2000 

13 (Public Law 106–74; 113 Stat. 1049). 

14 ‘‘(c) USE OF FUNDS.—The Fund shall be available 

15 to the Secretary, without fiscal year limitation, for all op16 erations relating to the issuance of loans under this sub17 chapter, consistent with the Federal Credit Reform Act 

18 of 1990 (2 U.S.C. 661 et seq.).’’. 

19 (2) CLERICAL AMENDMENT.—The table of sec20 tions at the beginning of chapter 20 of such title is 

21 amended by inserting after the item relating to sec22 tion 2054 the following new item: 

‘‘2055. Multifamily Transitional Housing Loan Program Revolving Fund.’’. 

23 (c) CLARIFICATION OF AUTHORITY TO DETERMINE

24 TERMS AND CONDITIONS OF LOANS.—Subsection (a)(6) 

25 of section 2052 of such title is amended by inserting ‘‘inVerDate Mar 15 2010 05:28 Jul 24, 2010 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H5838.IH H5838

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1 cluding with respect to forbearance, deferral, and loan for2 giveness,’’ after ‘‘determines are reasonable,’’. 

3 (d) CLARIFICATION OF TYPES OF SPACES THAT MAY

4 BE INCLUDED IN COVERED MULTIFAMILY TRANSITIONAL

5 HOUSING PROJECTS.—Subsection (c)(1) of such section 

6 2052 is amended by striking ‘‘or job training programs’’ 

7 and inserting ‘‘job training programs, other types of resi8 dential units, or other uses that the Secretary considers 

9 necessary for the sustainability of the project’’. 

10 (e) LOAN DEFAULTS.—Section 2053 of such title is 

11 amended by adding at the end the following new sub12 section: 

13 ‘‘(c) The Secretary may impose such penalties or re14 quire such collateral as the Secretary considers nec15 essary— 

16 ‘‘(1) to discourage default on a loan issued 

17 under this subchapter; or 

18 ‘‘(2) to mitigate harm to the Department from 

19 default on a loan issued under this subchapter. 

20 ‘‘(d) The Secretary shall administer any property 

21 coming under the jurisdiction of the Secretary by reason 

22 of default on a loan issued or guaranteed under this sub23 chapter in accordance with regulations prescribed by the 

24 Secretary for that purpose. Such administration of propVerDate Mar 15 2010 05:28 Jul 24, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H5838.IH H5838

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1 erty may include selling, renting, or otherwise disposing 

2 of property as the Secretary considers appropriate.’’. 

3 (f) PREFERENTIAL TREATMENT OF VETERANS.— 

4 (1) IN GENERAL.—Subchapter VI of chapter 20 

5 of such title, as amended by subsection (b), is fur6 ther amended by adding at the end the following 

7 new section: 

8 ‘‘§ 2056. Preferential treatment of veterans 

9 ‘‘No provision of Federal or State law may prohibit 

10 a multifamily transitional housing project described in sec11 tion 2052(b) of this title from offering preferential treat12 ment to veterans.’’. 

13 (2) CLERICAL AMENDMENT.—The table of sec14 tions at the beginning of such chapter, as amended 

15 by subsection (b), is further amended by adding at 

16 the end the following new item: 

‘‘2056. Preferential treatment of veterans.’’. 

17 (g) TECHNICAL CORRECTIONS.—Section 2052 of 

18 such title is amended— 

19 (1) in subsection (b)(2), by striking ‘‘counsel20 ling’’ both places it appears and inserting ‘‘coun21 seling’’; and 

22 (2) in subsection (d)(2), by striking ‘‘, as as23 sessed under section 107 of Public Law 102–405’’. 

Æ 


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