SEC. 2. COMPETITIVE GRANTS TO VETERANS SERVICE OR-
GANIZATIONS FOR FACILITY REHABILITA-
TION. 
(a) GRANTS.—Section 107 of the Housing and Com-
munity Development Act of 1974 (42 U.S.C. 5307) is 
amended by adding at the end the following new sub-
section: 
‘‘(g) COMPETITIVE GRANTS TO VETERANS SERVICE 
ORGANIZATIONS FOR FACILITY REHABILITATION.— 
‘‘(1) AUTHORITY.—Using the amounts made 
available under section 106(a)(1) in each fiscal year 
for grants under this subsection, the Secretary shall 
make grants, on a competitive basis, to eligible vet-
erans service organizations for use for repairs and 
rehabilitation of existing facilities of such organiza-
tions. 
‘‘(2) ELIGIBLE VETERANS SERVICE ORGANIZA-
TIONS.—For purposes of this subsection, the term 
‘eligible veterans service organization’ means— 
‘‘(A) an entity that is exempt from tax-
ation pursuant to section 501(c)(19) of the In-
ternal Revenue Code of 1986 (26 U.S.C. 
501(c)(19)) and is organized on a local or area 
basis; and 
‘‘(B) a local or area chapter, post, or other 
unit of a national, regional, Statewide, or other 
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larger entity of which local or area chapters, 
posts, or units are members, that is exempt 
from taxation pursuant to section 501(c)(19) of 
the Internal Revenue Code of 1986 (26 U.S.C. 
501(c)(19)). 
Such term does not include any such national, re-
gional, Statewide, or other larger entity. 
‘‘(3) LIMITATIONS.— 
‘‘(A) AMOUNT.—No eligible veterans serv-
ice organization may receive grant amounts 
under this subsection, from the amounts made 
available for any single fiscal year, in an 
amount exceeding the lesser of— 
‘‘(i) the cost of the proposed repair or 
rehabilitation; or 
‘‘(ii) $250,000, as such amount is ad-
justed annually according to an inflation 
index as the Secretary shall provide. 
‘‘(B) TIMING.—Any eligible veterans serv-
ice organization that receives grant amounts 
under this subsection from amounts made avail-
able for a fiscal year shall be ineligible for any 
grant from any amounts made available for 
such grants for any of the succeeding 5 fiscal 
years. 
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‘‘(4) APPLICATIONS.—Applications for assist-
ance under this subsection may be submitted only by 
eligible veterans service organizations, and shall be 
in such form and in accordance with such proce-
dures as the Secretary shall establish. Such applica-
tions shall include a plan for the proposed repair or 
rehabilitation activities to be conducted using grant 
amounts under this subsection. 
‘‘(5) SELECTION; 
CRITERIA.—The Secretary 
shall select applications to receive grants under this 
subsection pursuant to a competition and based on 
criteria for such selection, which shall include— 
‘‘(A) the extent of need for such assist-
ance; 
‘‘(B) the quality of the plan proposed for 
repair or rehabilitation of the facility involved; 
‘‘(C) the capacity or potential capacity of 
the applicant to successfully carry out the plan; 
and 
‘‘(D) such other factors as the Secretary 
determines to be appropriate. 
‘‘(6) PROHIBITION OF CONSTRUCTION OR AC-
QUISITION.—No amounts from a grant under this 
subsection may be used for the construction or ac-
quisition of a new facility.’’. 
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(b) FUNDING.—Subsection (a) of section 106 of the 
Housing and Community Development Act of 1974 (42 
U.S.C. 5306(a)) is amended— 
(1) in paragraph (3), by striking ‘‘After’’ and 
all that follows through ‘‘paragraph (2)’’ and insert-
ing the following: ‘‘After reserving such amounts for 
veterans service organizations under paragraph (1), 
for Indian tribes under paragraph (2), and for insu-
lar areas under paragraph (3)’’; 
(2) in paragraph (4), by striking ‘‘and (3)’’ and 
inserting ‘‘(3), and (4)’’; 
(3) by redesignating paragraphs (1), (2), (3), 
and (4), as so amended, as paragraphs (2), (3), (4), 
and (5), respectively; and 
(4) by inserting before paragraph (2) the fol-
lowing new paragraph: 
‘‘(1) For each fiscal year, the Secretary shall 
reserve, for grants under section 107(g), 2 percent 
of the amount approved in appropriation Acts under 
section 103 for grants for such fiscal year (excluding 
the amounts provided for use in accordance with sec-
tion 107).’’. 
(c) REGULATIONS.—The Secretary of Housing and 
Urban Development shall issue any regulations necessary 
to carry out sections 106(a)(4) and 107(g) of the Housing 
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and Community Development Act of 1974, as added by 
the amendments made by this section, not later than the 
expiration of the 90-day period beginning on the date of 
the enactment of this Act. 
Æ 
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