(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) 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 
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made available, adjust the annual contract 
amount if the sum of the project income and 
the amount of assistance payments available 
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. 
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(2) CONTRACT TERMS.— 
(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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(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 
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) SELECTION CRITERIA.—The Secretary shall es-
tablish selection criteria for assistance under this section, 
which shall include criteria— 
(1) based upon— 
(A) the ability of the applicant to develop 
and operate the proposed housing; 
(B) the need for supportive housing for 
very low-income veteran families in the area to 
be served; 
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(C) the extent to which the proposed size 
and unit mix of the housing will enable the ap-
plicant to manage and operate the housing effi-
ciently and ensure that the provision of sup-
portive services will be accomplished in an eco-
nomical fashion; 
(D) the extent to which the proposed de-
sign of the housing will meet the physical needs 
of very low-income veteran families; 
(E) the extent to which the applicant has 
demonstrated that the supportive services iden-
tified pursuant to subsection (f)(2)(B)(iii) will 
be provided on a consistent, long-term basis; 
(F) the extent to which the proposed de-
sign of the housing will 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 very low-income veterans 
the housing is intended to serve; and 
(G) such other factors as the Secretary de-
termines to be appropriate to ensure that funds 
made available under this section are used ef-
fectively; and 
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