[Congressional Record Volume 158, Number 98 (Wednesday, June 27, 2012)]
[Senate]
[Page S4682]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 3348. 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; to the Committee on Veterans' 
Affairs.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record as follows:

                                S. 3348

       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;
       ``(C) shall not otherwise reduce the borrower's depreciable 
     basis or eligible basis (for purposes of such section 42) of 
     such housing project.''.
                                 ______