II 

111TH CONGRESS 

2D SESSION S. 3377 

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 SENATE OF THE UNITED STATES 

MAY 14, 2010 

Mr. BURR (for himself, Mr. AKAKA, and Mr. DURBIN) introduced the following bill; which was read twice and 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. CONVERSION OF MULTIFAMILY TRANSITIONAL 

2 HOUSING LOAN PROGRAM TO LOAN 

3 ISSUANCE PROGRAM. 

4 (a) AUTHORITY TO ISSUE LOANS.— 

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

6 United States Code, is amended— 

7 (A) in subsection (a)— 

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

9 ‘‘(1) The’’; and 

10 (ii) by adding at the end the following 

11 new paragraph: 

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

13 the Multifamily Transitional Housing Loan Program Re14 volving Fund under section 2055 of this title, issue not 

15 less than five loans that meet the requirements of this sub16 chapter.’’; 

17 (B) in subsection (b)— 

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

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

20 ‘‘under subsection (a)(1)’’; 

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

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

23 ‘‘under subsection (a)(1)’’; and 

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

25 issued’’ after ‘‘guaranteed’’; 


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

2 issued’’ after ‘‘guaranteed’’; and 

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

4 issued’’ after ‘‘guaranteed’’. 

5 (2) AUTHORITY TO DELEGATE APPROVAL AU6 THORITY.—Subsection (c) of such section, as 

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

8 amended— 

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

10 ‘‘(1) A loan’’; and 

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

12 paragraph: 

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

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

15 (3) SUNSET OF AUTHORITY TO ISSUE LOAN

16 GUARANTEES.—Such section is further amended by 

17 adding at the end the following new subsection: 

18 ‘‘(h) The Secretary may not guarantee under sub19 section (a)(1) any loan that is closed after the date of the 

20 enactment of this subsection. The termination by this sub21 section of the authority to guarantee loans under this sub22 section shall not affect the validity of any loan guaranteed 

23 under this subchapter before the date of the enactment 

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

25 (4) CONFORMING AMENDMENTS.— 


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1 (A) Section 2052(d) of such title is amend2 ed by inserting ‘‘or issue’’ after ‘‘whether to 

3 guarantee’’. 

4 (B) Section 2053(a) of such title is amend5 ed by inserting ‘‘or issued’’ after ‘‘is guaran6 teed’’. 

7 (C) Section 2054(a) of such title is amend8 ed— 

9 (i) in the first sentenced, by inserting 

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

11 (ii) in the last sentence, by inserting 

12 ‘‘or loan’’ after ‘‘guarantee’’. 

13 (5) CLERICAL AMENDMENTS.— 

14 (A) The heading of subchapter VI of chap15 ter 20 of such title is amended by striking 

16 ‘‘LOAN GUARANTEE FOR’’. 

17 (B) The table of sections at the beginning 

18 of such chapter is amended by striking the item 

19 relating to subchapter VI and inserting the fol20 lowing new item: 

‘‘SUBCHAPTER VI—MULTIFAMILY TRANSITIONAL HOUSING’’. 

21 (b) MULTIFAMILY TRANSITIONAL HOUSING LOAN

22 PROGRAM REVOLVING FUND.— 

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

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

25 following new section: 


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1 ‘‘§ 2055. Multifamily Transitional Housing Loan Pro2 gram Revolving Fund 

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

4 Treasury of the United States a revolving fund known as 

5 the ‘Department of Veterans Affairs Multifamily Transi6 tional Housing Loan Program Revolving Fund’ (in this 

7 section referred to as the ‘Fund’). 

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

9 Fund the following, which shall constitute the assets of 

10 the Fund: 

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

12 provision of law or regulation established by the Sec13 retary imposing fees on persons or entities issued a 

14 loan under this subchapter. 

15 ‘‘(2) All other amounts received by the Sec16 retary incident to operations relating to the issuance 

17 of loans under this subchapter, including— 

18 ‘‘(A) collections of principal and interest 

19 on loans issued by the Secretary under this sub20 chapter; 

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

22 other disposition of property acquired under 

23 this subchapter; and 

24 ‘‘(C) penalties collected pursuant to this 

25 subchapter. 


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1 ‘‘(3) Amounts appropriated or otherwise made 

2 available before the date of the enactment of this 

3 section for purposes of activities under this sub4 chapter, including amounts appropriated for such 

5 purposes under title I of the Department of Vet6 erans Affairs and Housing and Urban Development, 

7 and Independent Agencies Appropriations Act, 2000 

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

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

10 to the Secretary, without fiscal year limitation, for all op11 erations relating to the issuance of loans under this sub12 chapter, consistent with the Federal Credit Reform Act 

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

14 (2) CLERICAL AMENDMENT.—The table of sec15 tions at the beginning of chapter 20 of such title is 

16 amended by inserting after the item relating to sec17 tion 2054 the following new item: 

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

18 (c) CLARIFICATION OF AUTHORITY TO DETERMINE

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

20 of section 2052 of such title is amended by inserting ‘‘in21 cluding with respect to forbearance, deferral, and loan for22 giveness,’’ after ‘‘determines are reasonable,’’. 

23 (d) CLARIFICATION OF TYPES OF SPACES THAT MAY

24 BE INCLUDED IN COVERED MULTIFAMILY TRANSITIONAL

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


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1 2052 is amended by striking ‘‘or job training programs’’ 

2 and inserting ‘‘job training programs, other types of resi3 dential units, or other uses that the Secretary considers 

4 necessary for the sustainability of the project’’. 

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

6 amended by adding at the end the following new sub7 section: 

8 ‘‘(c) The Secretary may impose such penalties or re9 quire such collateral as the Secretary considers nec10 essary— 

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

12 under this subchapter; or 

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

14 default on a loan issued under this subchapter. 

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

16 coming under the jurisdiction of the Secretary by reason 

17 of default on a loan issued or guaranteed under this sub18 chapter in accordance with regulations prescribed by the 

19 Secretary for that purpose. Such administration of prop20 erty may include selling, renting, or otherwise disposing 

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

22 (f) PREFERENTIAL TREATMENT OF VETERANS.— 

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

24 of such title, as amended by subsection (b), is furVerDate Mar 15 2010 22:21 May 14, 2010 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3377.IS S3377

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1 ther amended by adding at the end the following 

2 new section: 

3 ‘‘§ 2056. Preferential treatment of veterans 

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

5 a multifamily transitional housing project described in sec6 tion 2052(b) of this title from offering preferential treat7 ment to veterans.’’. 

8 (2) CLERICAL AMENDMENT.—The table of sec9 tions at the beginning of such chapter, as amended 

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

11 the end the following new item: 

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

12 (g) TECHNICAL CORRECTIONS.—Section 2052 of 

13 such title is amended— 

14 (1) in subsection (b)(2), by striking ‘‘counsel15 ling’’ both places it appears and inserting ‘‘coun16 seling’’; and 

17 (2) in subsection (d)(2), by striking ‘‘, as as18 sessed under section 107 of Public Law 102–405’’. 

Æ 


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