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 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. 
(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-
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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 
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-
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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. 
(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— 
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(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 
(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 
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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, 
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. 
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hmoore on PRODPC68 with HMBILLS
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. 
(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 
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(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 
(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. 
(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-
cent of the median income for the area, as deter-
mined by the Secretary with adjustments for smaller 
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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; 
(ii) which has a governing board that 
is responsible for the operation of the 
housing assisted under this section; and 
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(iii) which is approved by the Sec-
retary as to financial responsibility; 
(B) a for-profit limited partnership the 
sole general partner of which is an organization 
meeting the requirements under clauses (i), (ii), 
and (iii) of subparagraph (A); 
(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-
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-
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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). 
(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). 
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(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 2008 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 
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 
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