(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 
(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-
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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) 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) Assistance may be provided as a capital ad-
vance under this paragraph for a project, such ad-
vance 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 
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(C) be in an amount calculated in accord-
ance with the development cost limitation estab-
lished pursuant to subsection (i). 
(3) Assistance may be provided as project rent-
al 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) any contract amounts not used by a 
project in any year shall remain available to the 
project until the expiration of the contract; and 
(D) provides that the Secretary shall, to 
the extent appropriations for such purpose are 
made available, adjust the annual contract 
amount if the sum of the project income and 
the amount of assistance payments available 
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under this paragraph are inadequate to provide 
for reasonable project costs. 
(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 
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.— 
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(A) INITIAL TERM.—The initial term of a 
contract entered into under subsection (c)(2) 
shall be 60 months. 
(B) EXTENSION.—The Secretary shall, to 
the extent approved in appropriation Acts, ex-
tend any expiring contract for a term of not 
less than 12 months. 
(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 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. 
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(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; 
(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; 
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