Conversion of multifamily transitional housing loan program to loan issuance program

(a)

Authority To issue loans

(1)

In general

Section 2051 of title 38, United States Code, is amended— (A)in subsection (a)— (i)by striking The and inserting (1) The; and (ii)by adding at the end the following new paragraph:

(2)The Secretary shall, utilizing funds available in the Multifamily Transitional Housing Loan Program Revolving Fund under section 2055 of this title, issue not less than five loans that meet the requirements of this subchapter.

;

(B)in subsection (b)— (i)in paragraph (1), by striking under subsection (a) and inserting under subsection (a)(1); (ii)in paragraph (2), by striking under subsection (a) and inserting under subsection (a)(1); and (iii)in paragraph (3), by inserting or issued after guaranteed; (C)in subsection (c), by inserting or issued after guaranteed; and (D)in subsection (g), by inserting or issued after guaranteed. (2)

Authority to delegate approval authority

Subsection (c) of such section, as amended by paragraph (1)(C) of this subsection, is amended— (A)by striking A loan and inserting (1) A loan; and (B)by adding at the end the following new paragraph:

(2)The Secretary may delegate approval under paragraph (1) to a State or local government entity.

(3)

Sunset of authority to issue loan guarantees

Such section is further amended by adding at the end the following new subsection:

(h)The Secretary may not guarantee under subsection (a)(1) any loan that is closed after the date of the enactment of this subsection. The termination by this subsection of the authority to guarantee loans under this subsection shall not affect the validity of any loan guaranteed under this subchapter before the date of the enactment of this subsection and is in force on that date.

(4)

Conforming amendments

(A)Section 2052(d) of such title is amended by inserting or issue after whether to guarantee. (B)Section 2053(a) of such title is amended by inserting or issued after is guaranteed. (C)Section 2054(a) of such title is amended— (i)in the first sentenced, by inserting or issued after guaranteed; and (ii)in the last sentence, by inserting or loan after guarantee. (5)

Clerical amendments

(A)The heading of subchapter VI of chapter 20 of such title is amended by striking

Loan guarantee for

. (B)The table of sections at the beginning of such chapter is amended by striking the item relating to subchapter VI and inserting the following new item:

SUBCHAPTER VI—Multifamily transitional housing

(b)

Multifamily Transitional Housing Loan Program Revolving Fund

(1)

In general

Subchapter VI of chapter 20 of such title is amended by adding at the end the following new section:

2055.

Multifamily Transitional Housing Loan Program Revolving Fund

(a)

Establishment

There is established in the Treasury of the United States a revolving fund known as the Department of Veterans Affairs Multifamily Transitional Housing Loan Program Revolving Fund (in this section referred to as the Fund). (b)

Elements

There shall be deposited in the Fund the following, which shall constitute the assets of the Fund: (1)Amounts paid into the Fund under any provision of law or regulation established by the Secretary imposing fees on persons or entities issued a loan under this subchapter. (2)All other amounts received by the Secretary incident to operations relating to the issuance of loans under this subchapter, including— (A)collections of principal and interest on loans issued by the Secretary under this subchapter; (B)proceeds from the sale, rental, use, or other disposition of property acquired under this subchapter; and (C)penalties collected pursuant to this subchapter. (3)Amounts appropriated or otherwise made available before the date of the enactment of this section for purposes of activities under this subchapter, including amounts appropriated for such purposes under title I of the Department of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2000 (Public Law 106–74; 113 Stat. 1049). (c)

Use of funds

The Fund shall be available to the Secretary, without fiscal year limitation, for all operations relating to the issuance of loans under this subchapter, consistent with the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).

(2)

Clerical amendment

The table of sections at the beginning of chapter 20 of such title is amended by inserting after the item relating to section 2054 the following new item:

2055. Multifamily Transitional Housing Loan Program Revolving Fund.

(c)

Clarification of authority To determine terms and conditions of loans

Subsection (a)(6) of section 2052 of such title is amended by inserting including with respect to forbearance, deferral, and loan forgiveness, after determines are reasonable,. (d)

Clarification of types of spaces that may be included in covered multifamily transitional housing projects

Subsection (c)(1) of such section 2052 is amended by striking or job training programs and inserting job training programs, other types of residential units, or other uses that the Secretary considers necessary for the sustainability of the project. (e)

Loan defaults

Section 2053 of such title is amended by adding at the end the following new subsection:

(c)The Secretary may impose such penalties or require such collateral as the Secretary considers necessary— (1)to discourage default on a loan issued under this subchapter; or (2)to mitigate harm to the Department from default on a loan issued under this subchapter. (d)The Secretary shall administer any property coming under the jurisdiction of the Secretary by reason of default on a loan issued or guaranteed under this subchapter in accordance with regulations prescribed by the Secretary for that purpose. Such administration of property may include selling, renting, or otherwise disposing of property as the Secretary considers appropriate.

(f)

Preferential treatment of veterans

(1)

In general

Subchapter VI of chapter 20 of such title, as amended by subsection (b), is further amended by adding at the end the following new section:

2056.

Preferential treatment of veterans

No provision of Federal or State law may prohibit a multifamily transitional housing project described in section 2052(b) of this title from offering preferential treatment to veterans.

(2)

Clerical amendment

The table of sections at the beginning of such chapter, as amended by subsection (b), is further amended by adding at the end the following new item:

2056. Preferential treatment of veterans.

(g)

Technical corrections

Section 2052 of such title is amended— (1)in subsection (b)(2), by striking counselling both places it appears and inserting counseling; and (2)in subsection (d)(2), by striking , as assessed under section 107 of Public Law 102–405.