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‘‘(B) coordinating all programs and activi-
ties of the Department relating to veterans; 
‘‘(C) serving as a liaison for the Depart-
ment with the Department of Veterans Affairs, 
including establishing and maintaining relation-
ships with the Secretary of Veterans Affairs; 
‘‘(D) serving as a liaison for the Depart-
ment, and establishing and maintaining rela-
tionships with officials of State, local, regional, 
and nongovernmental organizations concerned 
with veterans; 
‘‘(E) providing information and advice re-
garding— 
‘‘(i) sponsoring housing projects for 
veterans assisted under programs adminis-
tered by the Department; or 
‘‘(ii) assisting veterans in obtaining 
housing or homeless assistance under pro-
grams 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 Sec-
retary or by law.’’. 
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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 fami-
lies. 
(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, recon-
struction, or moderate or substantial rehabilita-
tion 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 
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(B) may also cover the cost of real prop-
erty acquisition, site improvement, conversion, 
demolition, relocation, and other expenses that 
the Secretary determines are necessary to ex-
pand the supply of supportive housing for very 
low-income veteran families. 
(3) CONSULTATION.—In meeting the require-
ment of paragraph (1), the Secretary shall consult 
with— 
(A) the Secretary of Veterans Affairs; and 
(B) the Special Assistant for Veterans Af-
fairs, as such Special Assistant was established 
under section 4(g) of the Department of Hous-
ing 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; 
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(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 accord-
ance with the development cost limitation estab-
lished 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 ap-
proved 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 al-
lowances 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; 
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(D) provides that upon the expiration of 
each contract term, the Secretary shall adjust 
the annual contract amount to provide for rea-
sonable project costs, and any increases, includ-
ing adequate reserves, supportive services, and 
service coordinators, except that any contract 
amounts not used by a project during a con-
tract term shall not be available for such ad-
justments upon renewal; and 
(E) provides that in the event of emer-
gency situations that are outside the control of 
the owner, the Secretary shall increase the an-
nual contract amount, subject to reasonable re-
view and limitations as the Secretary shall pro-
vide. 
(d) TENANT RENT CONTRIBUTION.—A very low-in-
come 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) 30 percent of the veteran family’s adjusted 
monthly income. 
(2) 10 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 
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part of such payments, adjusted in accordance with 
the veteran family’s actual housing costs, is specifi-
cally 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 as-
sisted 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 pro-
vided in appropriation Acts, renew the contract 
entered into under subsection (c)(3) for 10 con-
secutive one-year terms, the first such term be-
ginning 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 
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Secretary may make commitments to extend ex-
piring 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 assist-
ance under this section shall be submitted by an 
applicant in such form and in accordance with 
such procedures as the Secretary shall estab-
lish. 
(B) REQUIRED
CONTENT.—Applications 
for assistance under this section shall contain— 
(i) a description of the proposed hous-
ing; 
(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; 
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(II) the manner in which such 
services will be provided to such per-
sons, including, in the case of frail el-
derly 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 serv-
ices; 
(iv) a certification from the public of-
ficial responsible for submitting a housing 
strategy for the jurisdiction to be served in 
accordance with section 105 of the Cran-
ston-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 certifi-
cations that the Secretary determines to be 
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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 rejec-
tion and the basis therefore to the applicant. 
(g) INITIAL
SELECTION
CRITERIA
AND
PROC-
ESSING.— 
(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 de-
velop 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 en-
able the applicant to manage and operate 
the housing efficiently and ensure that the 
provision of supportive services will be ac-
complished in an economical fashion; 
(iv) the extent to which the proposed 
design of the housing will meet the service- 
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connected disability needs of very low-in-
come veteran families; 
(v) the extent to which the applicant 
has demonstrated that the supportive serv-
ices identified pursuant to subsection 
(f)(2)(B)(iii) will be provided on a con-
sistent, long-term basis; 
(vi) the extent to which the proposed 
design of the housing will accommodate the 
provision of supportive services that are ex-
pected to be needed, either initially or over 
the useful life of the housing, by the very 
low-income veterans the housing is in-
tended 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 ac-
tions described in clauses (i) and (ii) of 
subsection (h)(2)(A); and 
(viii) such other factors as the Sec-
retary determines to be appropriate to en-
sure that funds made available under this 
section are used effectively; 
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(B) a preference in such selection for ap-
plications 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 ad-
vance 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 Sec-
retary shall delegate review and processing of 
such projects to a State or local housing agency 
that— 
(i) is in geographic proximity to the 
property; 
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(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 commit-
ment 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 del-
egated processing pursuant to this paragraph or 
no such agency has entered into an agreement 
with the Secretary to serve as a delegated proc-
essing agency. 
(C) PROCESSING
FEES.—An agency to 
which review and processing is delegated pursu-
ant to subparagraph (A) may assess a reason-
able fee which shall be included in the capital 
advance amounts and may recommend project 
rental assistance amounts in excess of those ini-
tially awarded by the Secretary. The Secretary 
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shall develop a schedule for reasonable fees 
under this subparagraph to be paid to delegated 
processing agencies, which shall take into con-
sideration any other fees to be paid to the agen-
cy for other funding provided to the project by 
the agency, including bonds, tax credits, and 
other gap funding. 
(D) 
AUTHORITY
RETAINED
BY
SEC-
RETARY.—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 VET-
ERAN 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 
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needs of the very low-income veteran families occu-
pying 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 bene-
fits and public benefits; 
(L) assistance in obtaining income support; 
(M) assistance in obtaining health insur-
ance; 
(N) fiduciary and representative payee; 
(O) legal aid; 
(P) child care; 
(Q) housing counseling; 
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(R) service coordination; and 
(S) other services necessary for maintain-
ing independent living. 
(2) LOCAL COORDINATION OF SERVICES.— 
(A) IN GENERAL.—The Secretary of Hous-
ing and Urban Development shall coordinate 
with the Secretary of the Department of Vet-
erans 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 sup-
portive 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 periodi-
cally establish reasonable development cost limita-
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tions by market area for various types and sizes of 
supportive housing for very low-income veteran fami-
lies by publishing a notice of the cost limitations in 
the Federal Register. 
(2) CONSIDERATIONS.—The cost limitations es-
tablished under paragraph (1) shall reflect— 
(A) the cost of construction, reconstruc-
tion, or moderate or substantial rehabilitation 
of supportive housing for very low-income vet-
eran 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 nec-
essary 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 Na-
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tional 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, recon-
struction, or moderate or substantial rehabilitation, 
and land acquisition in the area. 
(4) COMMUNITY SPACE.—For purposes of para-
graph (2), a community space shall include space for 
cafeterias or dining halls, community rooms or build-
ings, workshops, child care, adult day health facili-
ties or other outpatient health facilities, or other es-
sential service facilities. 
(5) COMMERCIAL
FACILITIES.—Neither this 
section nor any other provision of law may be con-
strued 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. 
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(6) ACQUISITION.—In the case of existing hous-
ing and related facilities to be acquired, the cost lim-
itations shall include— 
(A) the cost of acquiring such housing; 
(B) the cost of rehabilitation, alteration, 
conversion, or improvement, including the mod-
erate or substantial rehabilitation thereof; and 
(C) the cost of the land on which the hous-
ing and related facilities are located. 
(7) ANNUAL
ADJUSTMENTS.—The Secretary 
shall adjust the cost limitation not less than annu-
ally to reflect changes in the general level of con-
struction, reconstruction, and moderate and substan-
tial rehabilitation costs. 
(8) INCENTIVES FOR SAVINGS.— 
(A) SPECIAL HOUSING ACCOUNT.— 
(i) IN GENERAL.—The Secretary shall 
use the development cost limitations estab-
lished under paragraph (1) or (6) to cal-
culate 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 
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entitled to retain 50 percent of the savings 
in a special housing account. 
(iii) 
BONUS
FOR
ENERGY
EFFI-
CIENCY.—The 
percentage 
established 
under clause (ii) shall be increased to 75 
percent for owners which add energy effi-
ciency features which— 
(I) exceed the energy efficiency 
standards promulgated by the Sec-
retary in accordance with section 109 
of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 
12709); 
(II) substantially reduce the life- 
cycle cost of the housing; and 
(III) reduce gross rent require-
ments. 
(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 replace-
ment reserves; or 
(ii) for such other purposes as deter-
mined by the Secretary. 
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(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 amen-
ities 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 deter-
mining the amount of Federal assistance or of 
the rent contribution of tenants. 
(j) TENANT SELECTION.— 
(1) IN GENERAL.—An owner shall adopt writ-
ten tenant selection procedures that are— 
(A) satisfactory to the Secretary and which 
are— 
(i) consistent with the purpose of im-
proving housing opportunities for very low- 
income veteran families; and 
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(ii) reasonably related to program eli-
gibility and an applicant’s ability to per-
form 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 reg-
ulations issued under such subtitle. 
(2) NOTIFICATION
OF
REJECTION.—Owners 
shall promptly notify in writing any rejected appli-
cant 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 regard-
ing the availability of the housing assisted 
under this section. 
(B) SHARING OF INFORMATION WITH AD-
DITIONAL
AGENCIES.—Within 30 days of re-
ceipt of the information, the Secretary of Vet-
erans Affairs and Secretary of Labor shall pro-
vide such information to agencies in the area of 
the housing that receive assistance from the 
Department of Veterans Affairs and the De-
partment of Labor for providing medical care, 
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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 par-
ticipate 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 re-
quire 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 oper-
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ations and shall not be used to cover construc-
tion shortfalls or inadequate initial project rent-
al assistance amounts. 
(B) REDUCTION OF REQUIREMENT.— 
(i) IN GENERAL.—The Secretary may 
reduce or waive the owner deposit specified 
under subparagraph (A) for individual ap-
plicants if the Secretary finds that such 
waiver or reduction is necessary to achieve 
the purposes of this section and the appli-
cant demonstrates to the satisfaction of 
the Secretary that it has the capacity to 
manage and maintain the housing in ac-
cordance 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 no-
tify an owner not less than 30 days prior to 
canceling any reservation of assistance provided 
under this section. 
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(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 can-
cellation. 
(ii) TIMING OF DECISION.—Any ap-
peal 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 construc-
tion 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 labor-
ers and mechanics employed on construction of 
a similar character, as determined by the Sec-
retary of Labor in accordance with subchapter 
IV of chapter 31 of title 40, United States 
Code. 
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(B) EXEMPTION.—Subparagraph (A) shall 
not apply to any individual who— 
(i) performs services for which the in-
dividual volunteered; 
(ii) does not receive compensation for 
such services or is paid expenses, reason-
able 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 au-
thorize 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 pro-
vide supportive services to residents of the 
project. 
(B) REPORT.—Any owner that uses resid-
ual receipts under this paragraph shall submit 
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to the Secretary a report, not less than annu-
ally, describing the uses of the residual receipts. 
(C) DETERMINATION OF AMOUNT.—In de-
termining the amount of project rental assist-
ance to be provided to a project under sub-
section (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
OBLIGA-
TIONS.—Each owner shall operate housing assisted 
under this section in compliance with subtitle C of 
title VI of the Housing and Community Develop-
ment 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 re-
serves for a project assisted under this section 
may be used for costs, subject to reasonable 
limitations as the Secretary determines appro-
priate, for reducing the number of dwelling 
units in the project. 
(B) 
APPROVAL
OF
SECRETARY
RE-
QUIRED.—Any use described in subparagraph 
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(A) of amounts for project reserves for a 
project assisted under this section shall be sub-
ject 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 PREVEN-
TION OF UNDUE BENEFITS.— 
(A) REPAYMENT.—If a recipient, or a 
project sponsor receiving funds from the recipi-
ent, receives assistance under subsection (b) for 
use pursuant to paragraph (2) of such sub-
section for the construction, acquisition, or re-
habilitation 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 spon-
sor, to repay the following percentage of such 
assistance: 
(i) In the case of a project that ceases 
to be used for such supportive housing be-
fore the expiration of the 10-year period 
beginning upon commencement of the op-
eration of the project, 100 percent. 
(ii) In the case of a project that 
ceases to be used for such supportive hous-
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ing 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 begin-
ning upon such commencement, 20 percent 
of the assistance for each of the years dur-
ing 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 as-
sistance under subsection (b) for use pursuant 
to paragraph (2) of such subsection for the con-
struction, acquisition or rehabilitation of sup-
portive 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 re-
cipient) shall comply with such terms and con-
ditions as the Secretary may prescribe to pre-
vent the recipient (or such project sponsor) 
from unduly benefitting from such sale or dis-
position. 
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(C) EXCEPTION.—A recipient, or a project 
sponsor receiving funds from the recipient, shall 
not be required to make repayments, and com-
ply with the terms and conditions, required 
under subparagraph (A) or (B) if— 
(i) the sale or disposition of the prop-
erty 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 fami-
lies meeting the requirements of this sec-
tion; 
(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 perform-
ance standards, provided that the portion 
of the project that had benefitted from 
such assistance continues to meet the ten-
ant income and rent restrictions for low-in-
come units under section 42(g) of the In-
ternal Revenue Code of 1986; or 
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(iv) there are no low-income veteran 
families in the geographic area of the prop-
erty who meet the program criteria, in 
which case the project may serve non-vet-
eran individuals and families having in-
comes described in subsection (l)(2) of this 
section. 
(10) CONTINUED ELIGIBILITY OF VERY LOW-IN-
COME VETERAN FAMILIES.—A veteran family resid-
ing 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 occu-
pancy in such housing due to the death of any vet-
eran member of the family, including the sole vet-
eran member of the family. 
(l) DEFINITIONS.—In this section, the following defi-
nitions shall apply: 
(1) CONSUMER COOPERATIVE.—The term ‘‘con-
sumer cooperative’’ has the same meaning given 
such term for purposes of the supportive housing for 
the elderly program under section 202 of the Hous-
ing Act of 1959 (12 U.S.C. 1701q). 
(2) VERY LOW-INCOME VETERAN FAMILY.—The 
term ‘‘very low-income veteran family’’ means a vet-
eran family whose income does not exceed 50 per-
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cent of the median income for the area, as deter-
mined 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 nec-
essary because of prevailing levels of construction 
costs or fair market rents (as determined under sec-
tion 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f)), or unusually high or low family in-
comes. 
(3) OWNER.—The term ‘‘owner’’ means a pri-
vate 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; 
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(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 Sec-
retary 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 sub-
paragraph (C); 
(C) a corporation wholly owned and con-
trolled by an organization meeting the require-
ments under clauses (i), (ii), and (iii) of sub-
paragraph (A); and 
(D) a tribally designated housing entity, as 
such term is defined in section 4 of the Native 
American Housing Assistance and Self-Deter-
mination 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 Com-
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monwealth of Puerto Rico, and the possessions of 
the United States. 
(7) SUPPORTIVE HOUSING FOR VERY LOW-IN-
COME VETERAN FAMILIES.—The term ‘‘supportive 
housing for very low-income veteran families’’ means 
housing that is designed to accommodate the provi-
sion 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 per-
sons. 
(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 ac-
cordance with subsection (c)(1). 
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(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 appro-
priated 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 VET-
ERANS. 
Section 8(o)(19) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)) is amended to read as fol-
lows: 
‘‘(19) RENTAL VOUCHERS FOR HOMELESS VET-
ERANS.— 
‘‘(A) ADDITIONAL VOUCHERS.—In addition 
to any amount made available for rental assist-
ance under this subsection, the Secretary shall 
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make available the amount specified in subpara-
graph (B), for use only for providing rental as-
sistance 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 HOME-
LESS
VETERAN
FAMILIES.—If any veteran 
member of a household for which rental assist-
ance is being provided under this paragraph, in-
cluding the sole veteran member of the house-
hold, dies, such household may not be consid-
ered, 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 resid-
ing using such assistance at the time of 
such death. 
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‘‘(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 there-
after 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 dis-
abled families’’ and inserting ‘‘, disabled families, and vet-
erans (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 Cran-
ston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12705) is amended— 
(A) in subsection (b)(1), by inserting ‘‘vet-
erans (as such term is defined in section 101 of 
title 38, United States Code),’’ after ‘‘acquired 
immunodeficiency syndrome,’’; 
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(B) in subsection (b)(20), by striking ‘‘and 
service’’ and inserting ‘‘veterans service, and 
other service’’; and 
(C) in subsection (e)(1), by inserting ‘‘vet-
erans (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 Regula-
tions) 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 AS-
SISTED HOUSING RENT CONSIDERATIONS. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, for purposes of determining the amount of 
rent paid by a family for occupancy of a dwelling unit as-
sisted under a federally assisted housing program under 
subsection (b) or in housing assisted under any other fed-
erally assisted housing program, the income and the ad-
justed income of the family shall not be considered to in-
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clude 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 sub-
section 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.); 
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(5) the supportive housing for the elderly pro-
gram under section 202 of the Housing Act of 1959 
(12 U.S.C. 1701q); 
(6) the supportive housing for persons with dis-
abilities program under section 811 of the Cranston- 
Gonzalez National Affordable Housing Act (42 
U.S.C. 8013); 
(7) the supportive housing for the homeless pro-
gram 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 pro-
gram 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); 
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(12) the rental assistance program under sec-
tion 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 pro-
gram under title II of the Cranston-Gonzalez Na-
tional 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-Determina-
tion Act of 1996 (25 U.S.C. 4111 et seq., 4221 et 
seq.); 
(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 in-
come; 
(17) low-income housing credits allocated pur-
suant to section 42 of the Internal Revenue Code of 
1986; and 
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(18) tax-exempt bonds issued for qualified resi-
dential rental projects pursuant to section 142(d) of 
the Internal Revenue Code of 1986. 
SEC. 7. TECHNICAL ASSISTANCE GRANTS FOR HOUSING AS-
SISTANCE 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 sec-
tion, 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 as-
sisted under programs administered by the Depart-
ment of Housing and Urban Development; 
(2) fulfilling the planning and application proc-
esses and requirements necessary under such pro-
grams 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. 
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(c) SELECTION OF GRANT RECIPIENTS.—The Sec-
retary of Housing and Urban Development shall establish 
criteria for selecting applicants for grants under this sec-
tion 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 De-
partment of Housing and Urban Development for salaries 
and expenses, $1,000,000 shall be available, and shall re-
main available until expended, for grants under this sec-
tion. 
SEC. 8. ANNUAL REPORT ON HOUSING ASSISTANCE TO VET-
ERANS. 
(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. 
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