[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3348 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3348

   To amend title 38, United States Code, to improve the multifamily 
    transitional housing loan program of the Department of Veterans 
                    Affairs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 27, 2012

  Mr. Durbin introduced the following bill; which was read twice and 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
   To amend title 38, United States Code, to improve the multifamily 
    transitional housing loan program of the Department of Veterans 
                    Affairs, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. AUTHORITY FOR PAYMENT BY SECRETARY OF VETERANS AFFAIRS OF 
              GUARANTEES FOR LOANS GUARANTEED BY SECRETARY FOR 
              MULTIFAMILY TRANSITIONAL HOUSING PROJECTS.

    Section 2053 of title 38, United States Code, is amended by 
striking subsection (a) and inserting the following new subsection (a):
    ``(a)(1) Notwithstanding any other provision of law, the Secretary 
may, for any loan guaranteed under this subchapter, pay the guarantee, 
in part or in full, if the loan is not in default. Such guarantee 
payment may include amounts necessary to extinguish the loan and pay 
all prepayment premiums and transaction costs.
    ``(2) The Secretary may forgive, waive, release, or discharge a 
borrower's liability to the Secretary with respect to a loan or a 
guarantee for the loan for any loss resulting from a payment made under 
paragraph (1).
    ``(3) The amount resulting from a decision of the Secretary to 
forgive, waive, release, or discharge any repayment obligation owed by 
the borrower to the Secretary with respect to a loan guaranteed by the 
Secretary under this subchapter for a multifamily transitional housing 
project--
            ``(A) shall not be included in the borrower's gross income;
            ``(B) shall be treated as an amount not derived from a 
        Federal grant for purposes of subsection (d)(5)(A) of section 
        42 of the Internal Revenue Code of 1986; and
            ``(C) shall not otherwise reduce the borrower's depreciable 
        basis or eligible basis (for purposes of such section 42) of 
        such housing project.''.
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