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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1160 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1160

      To provide housing assistance for very low-income veterans.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              June 1, 2009

  Mr. Schumer (for himself, Mr. Durbin, Mr. Brown, and Mr. Menendez) 
introduced the following bill; which was read twice and referred to the 
            Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
      To provide housing assistance for very low-income veterans.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homes for Heroes Act of 2009''.

SEC. 2. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN OFFICE OF SECRETARY 
              OF HOUSING AND URBAN DEVELOPMENT.

    Section 4 of the Department of Housing and Urban Development Act 
(42 U.S.C. 3533) is amended by adding at the end the following new 
subsection:
    ``(g) Special Assistant for Veterans Affairs.--
            ``(1) Establishment.--There shall be in the Department a 
        Special Assistant for Veterans Affairs, who shall be in the 
        Office of the Secretary.
            ``(2) Appointment.--The Special Assistant for Veterans 
        Affairs shall be appointed based solely on merit and shall be 
        covered under the provisions of title 5, United States Code, 
        governing appointments in the competitive service.
            ``(3) Responsibilities.--The Special Assistant for Veterans 
        Affairs shall be responsible for--
                    ``(A) ensuring veterans have access to housing and 
                homeless assistance under each program of the 
                Department providing either such assistance;
                    ``(B) coordinating all programs and activities of 
                the Department relating to veterans;
                    ``(C) serving as a liaison for the Department with 
                the Department of Veterans Affairs, including 
                establishing and maintaining relationships with the 
                Secretary of Veterans Affairs;
                    ``(D) serving as a liaison for the Department, and 
                establishing and maintaining relationships with 
                officials of State, local, regional, and 
                nongovernmental organizations concerned with veterans;
                    ``(E) providing information and advice regarding--
                            ``(i) sponsoring housing projects for 
                        veterans assisted under programs administered 
                        by the Department; or
                            ``(ii) assisting veterans in obtaining 
                        housing or homeless assistance under programs 
                        administered by the Department;
                    ``(F) preparing the annual report under section 8 
                of Homes for Heroes Act of 2009; and
                    ``(G) carrying out such other duties as may be 
                assigned to the Special Assistant by the Secretary or 
                by law.''.

SEC. 3. SUPPORTIVE HOUSING FOR VERY LOW-INCOME VETERAN FAMILIES.

    (a) Purpose.--The purposes of this section are--
            (1) to expand the supply of permanent housing for very low-
        income veteran families; and
            (2) to provide supportive services through such housing to 
        support the needs of such veteran families.
    (b) Authority.--
            (1) In general.--The Secretary of Housing and Urban 
        Development shall, to the extent amounts are made available for 
        assistance under this section and the Secretary receives 
        approvable applications for such assistance, provide assistance 
        to private nonprofit organizations and consumer cooperatives to 
        expand the supply of supportive housing for very low-income 
        veteran families.
            (2) Nature of assistance.--The assistance provided under 
        paragraph (1)--
                    (A) shall be available for use to plan for and 
                finance the acquisition, construction, reconstruction, 
                or moderate or substantial rehabilitation of a 
                structure or a portion of a structure to be used as 
                supportive housing for very low-income veteran families 
                in accordance with this section; and
                    (B) may also cover the cost of real property 
                acquisition, site improvement, conversion, demolition, 
                relocation, and other expenses that the Secretary 
                determines are necessary to expand the supply of 
                supportive housing for very low-income veteran 
                families.
            (3) Consultation.--In meeting the requirement of paragraph 
        (1), the Secretary shall consult with--
                    (A) the Secretary of Veterans Affairs; and
                    (B) the Special Assistant for Veterans Affairs, as 
                such Special Assistant was established under section 
                4(g) of the Department of Housing and Urban Development 
                Act.
    (c) Forms of Assistance.--Assistance under this section shall be 
made available in the following forms:
            (1) Planning grants.--Assistance may be provided as a grant 
        for costs of planning a project to be used as supportive 
        housing for very low-income veteran families.
            (2) Capital advances.--Assistance may be provided as a 
        capital advance under this paragraph for a project, such 
        advance shall--
                    (A) bear no interest;
                    (B) not be required to be repaid so long as the 
                housing remains available for occupancy by very low-
                income veteran families in accordance with this 
                section; and
                    (C) be in an amount calculated in accordance with 
                the development cost limitation established pursuant to 
                subsection (i).
            (3) Project rental assistance.--Assistance may be provided 
        as project rental assistance, under an annual contract that--
                    (A) obligates the Secretary to make monthly 
                payments to cover any part of the costs attributed to 
                units occupied (or, as approved by the Secretary, held 
                for occupancy) by very low-income veteran families that 
                is not met from project income;
                    (B) provides for the project not more than the sum 
                of the initial annual project rentals for all units so 
                occupied and any initial utility allowances for such 
                units, as approved by the Secretary;
                    (C) provides that any contract amounts not used by 
                a project in any year shall remain available to the 
                project until the expiration of the contract;
                    (D) provides that upon the expiration of each 
                contract term, the Secretary shall adjust the annual 
                contract amount to provide for reasonable project 
                costs, and any increases, including adequate reserves, 
                supportive services, and service coordinators, except 
                that any contract amounts not used by a project during 
                a contract term shall not be available for such 
                adjustments upon renewal; and
                    (E) provides that in the event of emergency 
                situations that are outside the control of the owner, 
                the Secretary shall increase the annual contract 
                amount, subject to reasonable review and limitations as 
                the Secretary shall provide.
    (d) Tenant Rent Contribution.--A very low-income veteran family 
shall pay as rent for a dwelling unit assisted under this section the 
highest of the following amounts, rounded to the nearest dollar:
            (1) Thirty percent of the veteran family's adjusted monthly 
        income.
            (2) Ten percent of the veteran family's monthly income.
            (3) If the veteran family is receiving payments for welfare 
        assistance from a public agency and a part of such payments, 
        adjusted in accordance with the veteran family's actual housing 
        costs, is specifically designated by such agency to meet the 
        veteran family's housing costs, the portion of such payments 
        which is so designated.
    (e) Term of Commitment.--
            (1) Use limitations.--All units in housing assisted under 
        this section shall be made available for occupancy by very low-
        income veteran families for not less than 15 years.
            (2) Contract terms for project rental assistance.--
                    (A) Initial term.--The initial term of a contract 
                entered into under subsection (c)(3) shall be 60 
                months.
                    (B) Extension.--The Secretary shall, subject only 
                to the availability of amounts provided in 
                appropriation Acts, renew the contract entered into 
                under subsection (c)(3) for 10 consecutive one-year 
                terms, the first such term beginning upon the 
                expiration of such 60-month period.
                    (C) Authority of secretary to make early 
                commitments.--In order to facilitate the orderly 
                extension of expiring contracts, the Secretary may make 
                commitments to extend expiring contracts during the 
                year prior to the date of expiration.
    (f) Applications.--
            (1) In general.--Amounts made available under this section 
        shall be allocated by the Secretary among approvable 
        applications submitted by private nonprofit organizations and 
        consumer cooperatives.
            (2) Content of application.--
                    (A) In general.--Applications for assistance under 
                this section shall be submitted by an applicant in such 
                form and in accordance with such procedures as the 
                Secretary shall establish.
                    (B) Required content.--Applications for assistance 
                under this section shall contain--
                            (i) a description of the proposed housing;
                            (ii) a description of the assistance the 
                        applicant seeks under this section;
                            (iii) a description of--
                                    (I) the supportive services to be 
                                provided to the persons occupying such 
                                housing;
                                    (II) the manner in which such 
                                services will be provided to such 
                                persons, including, in the case of 
                                frail elderly persons (as such term is 
                                defined in section 202 of the Housing 
                                Act of 1959 (12 U.S.C. 1701q)), 
                                evidence of such residential 
                                supervision as the Secretary determines 
                                is necessary to facilitate the adequate 
                                provision of such services; and
                                    (III) the public or private sources 
                                of assistance that can reasonably be 
                                expected to fund or provide such 
                                services;
                            (iv) a certification from the public 
                        official responsible for submitting a housing 
                        strategy for the jurisdiction to be served in 
                        accordance with section 105 of the Cranston-
                        Gonzalez National Affordable Housing Act (42 
                        U.S.C. 12705) that the proposed project is 
                        consistent with the approved housing strategy; 
                        and
                            (v) such other information or 
                        certifications that the Secretary determines to 
                        be necessary or appropriate to achieve the 
                        purposes of this section.
            (3) Rejection.--The Secretary shall not reject any 
        application for assistance under this section on technical 
        grounds without giving notice of that rejection and the basis 
        therefore to the applicant.
    (g) Initial Selection Criteria and Processing.--
            (1) Selection criteria.--The Secretary shall establish 
        selection criteria for assistance under this section, which 
        shall include--
                    (A) criteria based upon--
                            (i) the ability of the applicant to develop 
                        and operate the proposed housing;
                            (ii) the need for supportive housing for 
                        very low-income veteran families in the area to 
                        be served;
                            (iii) the extent to which the proposed size 
                        and unit mix of the housing will enable the 
                        applicant to manage and operate the housing 
                        efficiently and ensure that the provision of 
                        supportive services will be accomplished in an 
                        economical fashion;
                            (iv) the extent to which the proposed 
                        design of the housing will meet the service-
                        connected disability needs of very low-income 
                        veteran families;
                            (v) the extent to which the applicant has 
                        demonstrated that the supportive services 
                        identified pursuant to subsection 
                        (f)(2)(B)(iii) will be provided on a 
                        consistent, long-term basis;
                            (vi) the extent to which the proposed 
                        design of the housing will accommodate the 
                        provision of supportive services that are 
                        expected to be needed, either initially or over 
                        the useful life of the housing, by the very 
                        low-income veterans the housing is intended to 
                        serve;
                            (vii) the extent to which the applicant has 
                        ensured that a service coordinator will be 
                        employed or otherwise retained for the housing, 
                        who has the managerial capacity and 
                        responsibility for carrying out the actions 
                        described in clauses (i) and (ii) of subsection 
                        (h)(2)(A); and
                            (viii) such other factors as the Secretary 
                        determines to be appropriate to ensure that 
                        funds made available under this section are 
                        used effectively;
                    (B) a preference in such selection for applications 
                proposing housing to be reserved for occupancy by very 
                low-income veteran families who are homeless (as such 
                term is defined in section 103 of the McKinney-Vento 
                Homeless Assistance Act (42 U.S.C. 11302)); and
                    (C) criteria appropriate to consider the need for 
                supportive housing for very low-income veteran families 
                in nonmetropolitan areas and by Indian tribes.
            (2) Delegated processing.--
                    (A) Delegation to state or local housing 
                authority.--In issuing a capital advance under this 
                subsection for any project for which financing for the 
                purposes described in subsection (b)(2) is provided by 
                a combination of a capital advance under subsection 
                (c)(2) and sources other than this section, within 30 
                days of award of the capital advance, the Secretary 
                shall delegate review and processing of such projects 
                to a State or local housing agency that--
                            (i) is in geographic proximity to the 
                        property;
                            (ii) has demonstrated experience in and 
                        capacity for underwriting multifamily housing 
                        loans that provide housing and supportive 
                        services;
                            (iii) may or may not be providing low-
                        income housing tax credits in combination with 
                        the capital advance under this section; and
                            (iv) agrees to issue a firm commitment 
                        within 12 months of delegation.
                    (B) Processing by secretary.--The Secretary shall 
                retain the authority to process capital advances in 
                cases in which no State or local housing agency has 
                applied to provide delegated processing pursuant to 
                this paragraph or no such agency has entered into an 
                agreement with the Secretary to serve as a delegated 
                processing agency.
                    (C) Processing fees.--An agency to which review and 
                processing is delegated pursuant to subparagraph (A) 
                may assess a reasonable fee which shall be included in 
                the capital advance amounts and may recommend project 
                rental assistance amounts in excess of those initially 
                awarded by the Secretary. The Secretary shall develop a 
                schedule for reasonable fees under this subparagraph to 
                be paid to delegated processing agencies, which shall 
                take into consideration any other fees to be paid to 
                the agency for other funding provided to the project by 
                the agency, including bonds, tax credits, and other gap 
                funding.
                    (D) Authority retained by secretary.--Under such 
                delegated system, the Secretary shall retain the 
                authority to approve rents and development costs and to 
                execute a capital advance within 60 days of receipt of 
                the commitment from the State or local agency. The 
                Secretary shall provide to such agency and the project 
                sponsor, in writing, the reasons for any reduction in 
                capital advance amounts or project rental assistance 
                and such reductions shall be subject to appeal.
    (h) Provision of Supportive Services to Veteran Families.--
            (1) In general.--The Secretary of Housing and Urban 
        Development shall coordinate with the Secretary of Veterans 
        Affairs to ensure that any housing assistance provided to 
        veterans or veteran families includes a range of services 
        tailored to the needs of the very low-income veteran families 
        occupying such housing, which may include services for--
                    (A) outreach;
                    (B) health (including counseling, mental health, 
                substance abuse, post-traumatic stress disorder, and 
                traumatic brain injury) diagnosis and treatment;
                    (C) habilitation and rehabilitation;
                    (D) case management;
                    (E) daily living;
                    (F) personal financial planning;
                    (G) transportation;
                    (H) vocation;
                    (I) employment and training;
                    (J) education;
                    (K) assistance in obtaining veterans benefits and 
                public benefits;
                    (L) assistance in obtaining income support;
                    (M) assistance in obtaining health insurance;
                    (N) fiduciary and representative payee;
                    (O) legal aid;
                    (P) child care;
                    (Q) housing counseling;
                    (R) service coordination; and
                    (S) other services necessary for maintaining 
                independent living.
            (2) Local coordination of services.--
                    (A) In general.--The Secretary of Housing and Urban 
                Development shall coordinate with the Secretary of the 
                Department of Veterans Affairs to ensure that owners of 
                housing assisted under this section have the managerial 
                capacity to--
                            (i) assess on an ongoing basis the service 
                        needs of residents;
                            (ii) coordinate the provision of supportive 
                        services and tailor such services to the 
                        individual needs of residents; and
                            (iii) seek on a continuous basis new 
                        sources of assistance to ensure the long-term 
                        provision of supportive services.
                    (B) Classification of costs.--Any cost associated 
                with this subsection relating to the coordination of 
                services shall be an eligible cost under subsections 
                (c)(3).
    (i) Development Cost Limitations.--
            (1) In general.--The Secretary shall periodically establish 
        reasonable development cost limitations by market area for 
        various types and sizes of supportive housing for very low-
        income veteran families by publishing a notice of the cost 
        limitations in the Federal Register.
            (2) Considerations.--The cost limitations established under 
        paragraph (1) shall reflect--
                    (A) the cost of construction, reconstruction, or 
                moderate or substantial rehabilitation of supportive 
                housing for very low-income veteran families that meets 
                applicable State and local housing and building codes;
                    (B) the cost of movables necessary to the basic 
                operation of the housing, as determined by the 
                Secretary;
                    (C) the cost of special design features necessary 
                to make the housing accessible to very low-income 
                veteran families;
                    (D) the cost of community space necessary to 
                accommodate the provision of supportive services to 
                veteran families;
                    (E) if the housing is newly constructed, the cost 
                of meeting the energy efficiency standards promulgated 
                by the Secretary in accordance with section 109 of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 12709); and
                    (F) the cost of land, including necessary site 
                improvement.
            (3) Use of data.--In establishing development cost 
        limitations for a given market area under this subsection, the 
        Secretary shall use data that reflect currently prevailing 
        costs of construction, reconstruction, or moderate or 
        substantial rehabilitation, and land acquisition in the area.
            (4) Community space.--For purposes of paragraph (2), a 
        community space shall include space for cafeterias or dining 
        halls, community rooms or buildings, workshops, child care, 
        adult day health facilities or other outpatient health 
        facilities, or other essential service facilities.
            (5) Commercial facilities.--Neither this section nor any 
        other provision of law may be construed as prohibiting or 
        preventing the location and operation, in a project assisted 
        under this section, of commercial facilities for the benefit of 
        residents of the project and the community in which the project 
        is located, except that assistance made available under this 
        section may not be used to subsidize any such commercial 
        facility.
            (6) Acquisition.--In the case of existing housing and 
        related facilities to be acquired, the cost limitations shall 
        include--
                    (A) the cost of acquiring such housing;
                    (B) the cost of rehabilitation, alteration, 
                conversion, or improvement, including the moderate or 
                substantial rehabilitation thereof; and
                    (C) the cost of the land on which the housing and 
                related facilities are located.
            (7) Annual adjustments.--The Secretary shall adjust the 
        cost limitation not less than annually to reflect changes in 
        the general level of construction, reconstruction, and moderate 
        and substantial rehabilitation costs.
            (8) Incentives for savings.--
                    (A) Special housing account.--
                            (i) In general.--The Secretary shall use 
                        the development cost limitations established 
                        under paragraph (1) or (6) to calculate the 
                        amount of financing to be made available to 
                        individual owners.
                            (ii) Actual developmental costs less than 
                        financing.--Owners which incur actual 
                        development costs that are less than the amount 
                        of financing shall be entitled to retain 50 
                        percent of the savings in a special housing 
                        account.
                            (iii) Bonus for energy efficiency.--The 
                        percentage established under clause (ii) shall 
                        be increased to 75 percent for owners which add 
                        energy efficiency features which--
                                    (I) exceed the energy efficiency 
                                standards promulgated by the Secretary 
                                in accordance with section 109 of the 
                                Cranston-Gonzalez National Affordable 
                                Housing Act (42 U.S.C. 12709);
                                    (II) substantially reduce the life-
                                cycle cost of the housing; and
                                    (III) reduce gross rent 
                                requirements.
                    (B) Uses.--The special housing account established 
                under subparagraph (A) may be used--
                            (i) to provide services to residents of the 
                        housing or funds set aside for replacement 
                        reserves; or
                            (ii) for such other purposes as determined 
                        by the Secretary.
            (9) Design flexibility.--The Secretary shall, to the extent 
        practicable, give owners the flexibility to design housing 
        appropriate to their location and proposed resident population 
        within broadly defined parameters.
            (10) Use of funds from other sources.--An owner shall be 
        permitted voluntarily to provide funds from sources other than 
        this section for amenities and other features of appropriate 
        design and construction suitable for supportive housing under 
        this section if the cost of such amenities is--
                    (A) not financed with the advance; and
                    (B) is not taken into account in determining the 
                amount of Federal assistance or of the rent 
                contribution of tenants.
    (j) Tenant Selection.--
            (1) In general.--An owner shall adopt written tenant 
        selection procedures that are--
                    (A) satisfactory to the Secretary and which are--
                            (i) consistent with the purpose of 
                        improving housing opportunities for very low-
                        income veteran families; and
                            (ii) reasonably related to program 
                        eligibility and an applicant's ability to 
                        perform the obligations of the lease; and
                    (B) compliant with subtitle C of title VI of the 
                Housing and Community Development Act of 1992 (42 
                U.S.C. 13601 et seq.) and any regulations issued under 
                such subtitle.
            (2) Notification of rejection.--Owners shall promptly 
        notify in writing any rejected applicant of the grounds for any 
        rejection.
            (3) Information regarding housing.--
                    (A) In general.--The Secretary shall provide, to 
                the Secretary of Veterans Affairs and the Secretary of 
                Labor, information regarding the availability of the 
                housing assisted under this section.
                    (B) Sharing of information with additional 
                agencies.--Within 30 days of receipt of the 
                information, the Secretary of Veterans Affairs and 
                Secretary of Labor shall provide such information to 
                agencies in the area of the housing that receive 
                assistance from the Department of Veterans Affairs and 
                the Department of Labor for providing medical care, 
                housing, supportive services or employment and training 
                services to homeless veterans.
    (k) Miscellaneous Provisions.--
            (1) Technical assistance.--The Secretary shall make 
        available appropriate technical assistance to ensure that 
        prospective applicants are able to participate more fully in 
        the program carried out under this section.
            (2) Civil rights compliance.--Each owner shall certify, to 
        the satisfaction of the Secretary, that assistance made 
        available under this section will be conducted and administered 
        in conformity with title VI of the Civil Rights Act of 1964 (42 
        U.S.C. 2000a et seq.), the Fair Housing Act (42 U.S.C. 3601 et 
        seq.), and other Federal, State, and local laws prohibiting 
        discrimination and promoting equal opportunity.
            (3) Owner deposit.--
                    (A) In general.--The Secretary shall require an 
                owner of housing, assisted under this section, to 
                deposit an amount not to exceed $15,000 in a special 
                escrow account to ensure the owner's commitment to the 
                housing. Such amount shall be used only to cover 
                operating deficits during the first three years of 
                operations and shall not be used to cover construction 
                shortfalls or inadequate initial project rental 
                assistance amounts.
                    (B) Reduction of requirement.--
                            (i) In general.--The Secretary may reduce 
                        or waive the owner deposit specified under 
                        subparagraph (A) for individual applicants if 
                        the Secretary finds that such waiver or 
                        reduction is necessary to achieve the purposes 
                        of this section and the applicant demonstrates 
                        to the satisfaction of the Secretary that it 
                        has the capacity to manage and maintain the 
                        housing in accordance with this section.
                            (ii) Nonprofits.--The Secretary may reduce 
                        or waive the requirement of the owner deposit 
                        under subparagraph (A) in the case of a 
                        nonprofit applicant that is not affiliated with 
                        a national sponsor, as determined by the 
                        Secretary.
            (4) Notice of appeal.--
                    (A) In general.--The Secretary shall notify an 
                owner not less than 30 days prior to canceling any 
                reservation of assistance provided under this section.
                    (B) Appeal.--
                            (i) Filing deadline.--During the 30-day 
                        period following the receipt of any notice 
                        required under subparagraph (A), an owner may 
                        appeal the proposed cancellation.
                            (ii) Timing of decision.--Any appeal 
                        undertaken under clause (i), including review 
                        by the Secretary, shall be completed not later 
                        than 45 days after the appeal is filed.
            (5) Labor.--
                    (A) In general.--The Secretary shall take such 
                action as may be necessary to ensure that all laborers 
                and mechanics employed by contractors and 
                subcontractors in the construction of housing with 12 
                or more units assisted under this section shall be paid 
                wages at rates not less than the rates prevailing in 
                the locality involved for the corresponding classes of 
                laborers and mechanics employed on construction of a 
                similar character, as determined by the Secretary of 
                Labor in accordance with subchapter IV of chapter 31 of 
                title 40, United States Code.
                    (B) Exemption.--Subparagraph (A) shall not apply to 
                any individual who--
                            (i) performs services for which the 
                        individual volunteered;
                            (ii) does not receive compensation for such 
                        services or is paid expenses, reasonable 
                        benefits, or a nominal fee for such services; 
                        and
                            (iii) is not otherwise employed at any time 
                        in the construction work.
            (6) Access to residual receipts.--
                    (A) In general.--The Secretary shall authorize the 
                owner of a housing project assisted under this section 
                to use any residual receipts held for the project in 
                excess of $500 per unit (or in excess of such other 
                amount prescribed by the Secretary based on the needs 
                of the project) for activities to retrofit and renovate 
                the project as described under section 802(d)(3) of the 
                Cranston-Gonzalez National Affordable Housing Act (42 
                U.S.C. 8011(d)(3)) or to provide supportive services to 
                residents of the project.
                    (B) Report.--Any owner that uses residual receipts 
                under this paragraph shall submit to the Secretary a 
                report, not less than annually, describing the uses of 
                the residual receipts.
                    (C) Determination of amount.--In determining the 
                amount of project rental assistance to be provided to a 
                project under subsection (c)(3) of this section, the 
                Secretary may take into consideration the residual 
                receipts held for the project only if, and to the 
                extent that, excess residual receipts are not used 
                under this paragraph.
            (7) Occupancy standards and obligations.--Each owner shall 
        operate housing assisted under this section in compliance with 
        subtitle C of title VI of the Housing and Community Development 
        Act of 1992 (42 U.S.C. 13601 et seq.) and any regulations 
        issued under such subtitle.
            (8) Use of project reserves.--
                    (A) In general.--Amounts for project reserves for a 
                project assisted under this section may be used for 
                costs, subject to reasonable limitations as the 
                Secretary determines appropriate, for reducing the 
                number of dwelling units in the project.
                    (B) Approval of secretary required.--Any use 
                described in subparagraph (A) of amounts for project 
                reserves for a project assisted under this section 
                shall be subject to the approval of the Secretary to 
                ensure that such use is designed to retrofit units that 
                are currently obsolete or unmarketable.
            (9) Repayment of assistance and prevention of undue 
        benefits.--
                    (A) Repayment.--If a recipient, or a project 
                sponsor receiving funds from the recipient, receives 
                assistance under subsection (b) for use pursuant to 
                paragraph (2) of such subsection for the construction, 
                acquisition, or rehabilitation of supportive housing 
                for very low-income veteran families and the project 
                ceases to provide permanent housing, the Secretary 
                shall require the recipient, or such project sponsor, 
                to repay the following percentage of such assistance:
                            (i) In the case of a project that ceases to 
                        be used for such supportive housing before the 
                        expiration of the 10-year period beginning upon 
                        commencement of the operation of the project, 
                        100 percent.
                            (ii) In the case of a project that ceases 
                        to be used for such supportive housing on or 
                        after the expiration of the 10-year period 
                        beginning upon commencement of the operation of 
                        the project, but before the expiration of the 
                        15-year period beginning upon such 
                        commencement, 20 percent of the assistance for 
                        each of the years during such 15-year period 
                        for which the project fails to provide 
                        permanent housing.
                    (B) Prevention of undue benefits.--Except as 
                provided in paragraph (C), if any property is used for 
                a project that receives assistance under subsection (b) 
                for use pursuant to paragraph (2) of such subsection 
                for the construction, acquisition or rehabilitation of 
                supportive housing for very low-income veteran 
                families, and the sale or other disposition of the 
                property occurs before the expiration of the 15-year 
                period beginning upon commencement of the operation of 
                the project, the recipient (or the project sponsor 
                receiving funds from the recipient) shall comply with 
                such terms and conditions as the Secretary may 
                prescribe to prevent the recipient (or such project 
                sponsor) from unduly benefitting from such sale or 
                disposition.
                    (C) Exception.--A recipient, or a project sponsor 
                receiving funds from the recipient, shall not be 
                required to make repayments, and comply with the terms 
                and conditions, required under subparagraph (A) or (B) 
                if--
                            (i) the sale or disposition of the property 
                        used for the project results in the use of the 
                        property for the direct benefit of very-low 
                        income persons;
                            (ii) all of the proceeds of the sale or 
                        disposition are used to provide permanent 
                        housing for very-low income veteran families 
                        meeting the requirements of this section;
                            (iii) project-based rental assistance or 
                        operating cost assistance from any Federal 
                        program or an equivalent State or local program 
                        is no longer made available and the project is 
                        meeting applicable performance standards, 
                        provided that the portion of the project that 
                        had benefitted from such assistance continues 
                        to meet the tenant income and rent restrictions 
                        for low-income units under section 42(g) of the 
                        Internal Revenue Code of 1986; or
                            (iv) there are no low-income veteran 
                        families in the geographic area of the property 
                        who meet the program criteria, in which case 
                        the project may serve non-veteran individuals 
                        and families having incomes described in 
                        subsection (l)(2) of this section.
            (10) Continued eligibility of very low-income veteran 
        families.--A veteran family residing in supportive housing 
        assisted under this section may not be considered to lose its 
        status as such a family for purposes of eligibility for 
        continued occupancy in such housing due to the death of any 
        veteran member of the family, including the sole veteran member 
        of the family.
    (l) Definitions.--In this section, the following definitions shall 
apply:
            (1) Consumer cooperative.--The term ``consumer 
        cooperative'' has the same meaning given such term for purposes 
        of the supportive housing for the elderly program under section 
        202 of the Housing Act of 1959 (12 U.S.C. 1701q).
            (2) Very low-income veteran family.--The term ``very low-
        income veteran family'' means a veteran family whose income 
        does not exceed 50 percent of the median income for the area, 
        as determined by the Secretary with adjustments for smaller and 
        larger families, except that the Secretary may establish an 
        income ceiling higher or lower than 50 percent of the median 
        for the area on the basis of the Secretary's findings that such 
        variations are necessary because of prevailing levels of 
        construction costs or fair market rents (as determined under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f)), or unusually high or low family incomes.
            (3) Owner.--The term ``owner'' means a private nonprofit 
        organization or consumer cooperative that receives assistance 
        under this section to develop and operate supportive housing 
        for very low-income veteran families.
            (4) Private nonprofit organization.--The term ``private 
        nonprofit organization'' means--
                    (A) any incorporated private institution or 
                foundation--
                            (i) no part of the net earnings of which 
                        inures to the benefit of any member, founder, 
                        contributor, or individual;
                            (ii) which has a governing board that is 
                        responsible for the operation of the housing 
                        assisted under this section; and
                            (iii) which is approved by the Secretary as 
                        to financial responsibility;
                    (B) a for-profit limited partnership the sole or 
                managing general partner of which is an organization 
                meeting the requirements under clauses (i), (ii), and 
                (iii) of subparagraph (A) or a corporation meeting the 
                requirements of subparagraph (C);
                    (C) a corporation wholly owned and controlled by an 
                organization meeting the requirements under clauses 
                (i), (ii), and (iii) of subparagraph (A); and
                    (D) a tribally designated housing entity, as such 
                term is defined in section 4 of the Native American 
                Housing Assistance and Self-Determination Act of 1996 
                (25 U.S.C. 4103).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development, except where specifically 
        provided otherwise.
            (6) State.--The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, and 
        the possessions of the United States.
            (7) Supportive housing for very low-income veteran 
        families.--The term ``supportive housing for very low-income 
        veteran families'' means housing that is designed to 
        accommodate the provision of supportive services that are 
        expected to be needed, either initially or over the useful life 
        of the housing, by the veteran families that the housing is 
        intended to serve.
            (8) Veteran.--The term ``veteran'' has the meaning given 
        the term in section 101 of title 38, United States Code.
            (9) Veteran family.--The term ``veteran family'' includes a 
        veteran who is a single person, a family (including families 
        with children) whose head of household (or whose spouse) is a 
        veteran, and one or more veterans living together with 1 or 
        more persons.
    (m) Allocation of Funds.--Of any amounts made available for 
assistance under this section:
            (1) Planning grants.--Not more than 2.5 percent shall be 
        available for planning grants in accordance with subsection 
        (c)(1).
            (2) Capital advances.--Such sums as may be necessary shall 
        be available for capital advances in accordance with subsection 
        (c)(2).
            (3) Project rental assistance.--Such sums as may be 
        necessary shall be available for project rental assistance in 
        accordance with subsection (c)(3).
            (4) Technical assistance.--Not more than 1 percent shall be 
        available for technical assistance in accordance with 
        subsection (k)(1).
    (n) Authorization of Appropriations for Housing Assistance.--There 
is authorized to be appropriated for assistance under this section 
$200,000,000 for fiscal year 2009 and such sums as may be necessary for 
each fiscal year thereafter.

SEC. 4. HOUSING CHOICE VOUCHERS FOR HOMELESS VETERANS.

    Section 8(o)(19) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)) is amended to read as follows:
            ``(19) Rental vouchers for homeless veterans.--
                    ``(A) Additional vouchers.--In addition to any 
                amount made available for rental assistance under this 
                subsection, the Secretary shall make available the 
                amount specified in subparagraph (B), for use only for 
                providing rental assistance for homeless veterans in 
                conjunction with the Secretary of Veterans Affairs.
                    ``(B) Amount.--The amount specified in this 
                subparagraph is, for each fiscal year, the amount 
                necessary to provide not fewer than 20,000 vouchers for 
                rental assistance under this subsection.
                    ``(C) Continued eligibility of homeless veteran 
                families.--If any veteran member of a household for 
                which rental assistance is being provided under this 
                paragraph, including the sole veteran member of the 
                household, dies, such household may not be considered, 
                due to such death, to lose its status as the household 
                of a homeless veteran for purposes of--
                            ``(i) eligibility for continued assistance 
                        under this paragraph; or
                            ``(ii) continued occupancy in the dwelling 
                        unit in which such family is residing using 
                        such assistance at the time of such death.
                    ``(D) Funding.--The budget authority made available 
                under any other provisions of law for rental assistance 
                under this subsection for fiscal year 2009 and each 
                fiscal year thereafter is authorized to be increased in 
                each such fiscal year by such sums as may be necessary 
                to provide the number of vouchers specified in 
                subparagraph (B) for such fiscal year.''.

SEC. 5. INCLUSION OF VETERANS IN HOUSING PLANNING.

    (a) Public Housing Agency Plans.--Section 5A(d)(1) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c-1(d)(1)) is amended by 
striking ``and disabled families'' and inserting ``, disabled families, 
and veterans (as such term is defined in section 101 of title 38, 
United States Code)''.
    (b) Comprehensive Housing Affordability Strategies.--
            (1) In general.--Section 105 of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12705) is amended--
                    (A) in subsection (b)(1), by inserting ``veterans 
                (as such term is defined in section 101 of title 38, 
                United States Code),'' after ``acquired 
                immunodeficiency syndrome,'';
                    (B) in subsection (b)(20), by striking ``and 
                service'' and inserting ``veterans service, and other 
                service''; and
                    (C) in subsection (e)(1), by inserting ``veterans 
                (as such term is defined in section 101 of title 38, 
                United States Code),'' after ``homeless persons,''.
            (2) Consolidated plans.--The Secretary of Housing and Urban 
        Development shall revise the regulations relating to submission 
        of consolidated plans (part 91 of title 24, Code of Federal 
        Regulations) in accordance with the amendments made by 
        paragraph (1) of this subsection to require inclusion of 
        appropriate information relating to veterans and veterans 
        service agencies in all such plans.

SEC. 6. EXCLUSION OF VETERANS BENEFITS FROM ASSISTED HOUSING RENT 
              CONSIDERATIONS.

    (a) In General.--Notwithstanding any other provision of law, for 
purposes of determining the amount of rent paid by a family for 
occupancy of a dwelling unit assisted under a federally assisted 
housing program under subsection (b) or in housing assisted under any 
other federally assisted housing program, the income and the adjusted 
income of the family shall not be considered to include any amounts 
received by any member of the family from the Secretary of Veterans 
Affairs as--
            (1) compensation, as such term is defined in section 
        101(13) of title 38, United States Code; and
            (2) dependency and indemnity compensation, as such term is 
        defined in section 101(14) of such title.
    (b) Federally Assisted Housing Program.--The federally assisted 
housing programs under this subsection are--
            (1) the public housing program under the United States 
        Housing Act of 1937 (42 U.S.C. 1437 et seq.);
            (2) the tenant-based rental assistance program under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f), including the program under subsection (o)(19) of such 
        section for housing rental vouchers for low-income veteran 
        families;
            (3) the project-based rental assistance program under 
        section 8 of the United States Housing Act of 1937 (42 U.S.C. 
        1437f);
            (4) the program for housing opportunities for persons with 
        AIDS under subtitle D of title VIII of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 12901 et seq.);
            (5) the supportive housing for the elderly program under 
        section 202 of the Housing Act of 1959 (12 U.S.C. 1701q);
            (6) the supportive housing for persons with disabilities 
        program under section 811 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 8013);
            (7) the supportive housing for the homeless program under 
        subtitle C of title IV of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11381 et seq.);
            (8) the program for moderate rehabilitation of single room 
        occupancy dwellings for occupancy by the homeless under section 
        441 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
        11401);
            (9) the shelter plus care for the homeless program under 
        subtitle F of title IV of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11403 et seq.);
            (10) the supportive housing for very low-income veteran 
        families program under section 3 of this Act;
            (11) the rental assistance payments program under section 
        521(a)(2)(A) of the Housing Act of 1949 (42 U.S.C. 
        1490a(a)(2)(A));
            (12) the rental assistance program under section 236 of the 
        National Housing Act (12 U.S.C. 1715z-1);
            (13) the rural housing programs under section 515 and 538 
        of the Housing Act of 1949 (42 U.S.C. 1485, 1490p-2);
            (14) the HOME investment partnerships program under title 
        II of the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 12721 et seq.);
            (15) the block grant programs for affordable housing for 
        Native Americans and Native Hawaiians under titles I through IV 
        and VIII of the Native American Housing Assistance and Self-
        Determination Act of 1996 (25 U.S.C. 4111 et seq., 4221 et 
        seq.); and
            (16) any other program for housing assistance administered 
        by the Secretary of Housing and Urban Development or the 
        Secretary of Agriculture under which eligibility for occupancy 
        in the housing assisted or for housing assistance is based upon 
        income.

SEC. 7. TECHNICAL ASSISTANCE GRANTS FOR HOUSING ASSISTANCE FOR 
              VETERANS.

    (a) In General.--The Secretary of Housing and Urban Development 
shall, to the extent amounts are made available in appropriation Acts 
for grants under this section, make grants to eligible entities under 
subsection (b) to provide to nonprofit organizations technical 
assistance appropriate to assist such organizations in--
            (1) sponsoring housing projects for veterans assisted under 
        programs administered by the Department of Housing and Urban 
        Development;
            (2) fulfilling the planning and application processes and 
        requirements necessary under such programs administered by the 
        Department; and
            (3) assisting veterans in obtaining housing or homeless 
        assistance under programs administered by the Department.
    (b) Eligible Entities.--An eligible entity under this subsection is 
a nonprofit entity or organization having such expertise as the 
Secretary shall require in providing technical assistance to providers 
of services for veterans.
    (c) Selection of Grant Recipients.--The Secretary of Housing and 
Urban Development shall establish criteria for selecting applicants for 
grants under this section to receive such grants and shall select 
applicants based upon such criteria.
    (d) Funding.--Of any amounts made available in fiscal year 2009 or 
any fiscal year thereafter to the Department of Housing and Urban 
Development for salaries and expenses, $1,000,000 shall be available, 
and shall remain available until expended, for grants under this 
section.

SEC. 8. ANNUAL REPORT ON HOUSING ASSISTANCE TO VETERANS.

    (a) In General.--Not later than December 31 each year, the 
Secretary of Housing and Urban Development shall submit a report on the 
activities of the Department of Housing and Urban Development relating 
to veterans during such year to the following:
            (1) The Committee on Banking, Housing, and Urban Affairs of 
        the Senate.
            (2) The Committee on Veterans' Affairs of the Senate.
            (3) The Committee on Appropriations of the Senate.
            (4) The Committee on Financial Services of the House of 
        Representatives.
            (5) The Committee on Veterans' Affairs of the House of 
        Representatives.
            (6) The Committee on Appropriations of the House of 
        Representatives.
            (7) The Secretary of Veterans Affairs.
    (b) Contents.--Each report required under subsection (a) shall 
include the following information with respect to the year for which 
the report is submitted:
            (1) The number of very low-income veteran families provided 
        assistance under the program of supportive housing for very 
        low-income veteran families under section 3, the socioeconomic 
        characteristics of such families, the types of assistance 
        provided such families, and the number, types, and locations of 
        owners of housing assisted under such section.
            (2) The number of homeless veterans provided assistance 
        under the program of housing choice vouchers for homeless 
        veterans under section 8(o)(19) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f(o)(19)) (as amended by section 4), 
        the socioeconomic characteristics of such homeless veterans, 
        and the number, types, and locations of entities contracted 
        under such section to administer the vouchers.
            (3) A summary description of the special considerations 
        made for veterans under public housing agency plans submitted 
        pursuant to section 5A of the United States Housing Act of 1937 
        (42 U.S.C. 1437c-1) and under comprehensive housing 
        affordability strategies submitted pursuant to section 105 of 
        the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 12705).
            (4) A description of the technical assistance provided to 
        organizations pursuant to grants under section 7.
            (5) A description of the activities of the Special 
        Assistant for Veterans Affairs.
            (6) A description of the efforts of the Department of 
        Housing and Urban Development to coordinate the delivery of 
        housing and services to veterans with other Federal departments 
        and agencies, including the Department of Defense, Department 
        of Justice, Department of Labor, Department of Health and Human 
        Services, Department of Veterans Affairs, Interagency Council 
        on Homelessness, and the Social Security Administration.
            (7) The cost to the Department of Housing and Urban 
        Development of administering the programs and activities 
        relating to veterans.
            (8) Any other information that the Secretary considers 
        relevant in assessing the programs and activities of the 
        Department of Housing and Urban Development relating to 
        veterans.
    (c) Assessment of Housing Needs of Very Low-Income Veteran 
Families.--
            (1) In general.--For the first report submitted pursuant to 
        subsection (a) and every fifth report thereafter, the Secretary 
        of Housing and Urban Development shall--
                    (A) conduct an assessment of the housing needs of 
                very low-income veteran families (as such term is 
                defined in section 3); and
                    (B) shall include in each such report findings 
                regarding such assessment.
            (2) Content.--Each assessment under this subsection shall 
        include--
                    (A) conducting a survey of, and direct interviews 
                with, a representative sample of very low-income 
                veteran families (as such term is defined in section 3) 
                to determine past and current--
                            (i) socioeconomic characteristics of such 
                        veteran families;
                            (ii) barriers to such veteran families 
                        obtaining safe, quality, and affordable 
                        housing;
                            (iii) levels of homelessness among such 
                        veteran families; and
                            (iv) levels and circumstances of, and 
                        barriers to, receipt by such veteran families 
                        of rental housing and homeownership assistance; 
                        and
                    (B) such other information that the Secretary 
                determines, in consultation with the Secretary of 
                Veterans Affairs and national nongovernmental 
                organizations concerned with veterans, homelessness, 
                and very low-income housing, may be useful to the 
                assessment.
            (3) Conduct.--If the Secretary contracts with an entity 
        other than the Department of Housing and Urban Development to 
        conduct the assessment under this subsection, such entity shall 
        be a nongovernmental organization determined by the Secretary 
        to have appropriate expertise in quantitative and qualitative 
        social science research.
            (4) Funding.--Of any amounts made available pursuant to 
        section 501 of the Housing and Urban Development Act of 1970 
        (42 U.S.C. 1701z-1) for programs of research, studies, testing, 
        or demonstration relating to the mission or programs of the 
        Department of Housing and Urban Development for any fiscal year 
        in which an assessment under this subsection is required 
        pursuant to paragraph (1) of this subsection, $1,000,000 shall 
        be available until expended for costs of the assessment under 
        this subsection.
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