
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2836]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
     CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING
 
                 SUBCHAPTER II--MILITARY FAMILY HOUSING
 
Sec. 2836. Military housing rental guarantee program

    (a) Authority.--Subject to subsection (b), the Secretary of a 
military department, or the Secretary of Transportation with respect to 
the Coast Guard, may enter into an agreement to assure the occupancy of 
rental housing to be constructed or rehabilitated to residential use by 
a private developer or by a State or local housing authority on private 
land, on land owned by a State or local government, or on land owned by 
the United States, if the housing is to be located on or near a new 
military installation or an existing military installation that has a 
shortage of housing to meet the requirements of eligible members of the 
armed forces (with or without accompanying dependents). The authority 
provided under this subsection shall be exercised under uniform 
regulations prescribed by the Secretary of Defense.
    (b) Submission and Authorization of Proposed Agreements.--(1) The 
Secretary of a military department, or the Secretary of Transportation 
with respect to the Coast Guard, may enter into agreements pursuant to 
subsection (a) for such military housing rental guaranty projects as are 
authorized by law.
    (2) The budget material submitted to Congress by the Secretary of 
Defense, and the Secretary of Transportation with respect to the Coast 
Guard, in connection with the budget submitted pursuant to section 1105 
of title 31 for each fiscal year shall include materials that identify 
the military housing rental guaranty projects for which agreements are 
proposed to be entered into under subsection (a) in that fiscal year.
    (c) Content of Agreement.--An agreement under subsection (a)--
        (1) may not assure the occupancy of more than 97 percent of the 
    units constructed under the agreement;
        (2) shall establish initial rental rates that are not more than 
    rates for comparable rental dwelling units in the same general 
    market area and may include an escalation clause;
        (3) may apply to existing housing;
        (4) shall require that the housing units be constructed--
            (A) in the case of a Department of Defense agreement, to 
        Department of Defense specifications or, at the discretion of 
        the Secretary of the military department concerned, in 
        compliance with the local building codes; and
            (B) in the case of an agreement for the Coast Guard, to 
        Department of Transportation specifications;

        (5) may not be for a term in excess of 25 years;
        (6) may not be renewed unless the project is located on 
    government owned land, in which case the renewal period may not 
    exceed the original contract term;
        (7) may not assure more than an amount equivalent to the shelter 
    rent of the housing units, determined on the basis of amortizing 
    initial construction costs;
        (8) may only be entered into to the extent that there is a 
    shortage in military family housing;
        (9) may only be entered into if existing military-controlled 
    housing at all installations in the commuting area (except for a new 
    installation or an installation for which there is projected a 
    significant increase in the number of families due to an increase in 
    the number of authorized personnel) has exceeded 97 percent use for 
    a period of not less than 18 consecutive months immediately 
    preceding the date on which the agreement is entered into, excluding 
    units temporarily inactivated for major repair or improvements;
        (10) shall provide for priority of occupancy for military 
    families;
        (11) shall include a provision authorizing the Secretary of the 
    military department concerned, or the Secretary of Transportation 
    with respect to the Coast Guard, to take such action as the 
    Secretary considers appropriate to protect the interests of the 
    United States, including rendering the agreement null and void if, 
    in the opinion of the Secretary, the owner of the housing fails to 
    maintain a satisfactory level of operation and maintenance;
        (12) may provide in the agreement for the rental of a child care 
    center, civic center building, and similar type buildings 
    constructed for the support of family housing;
        (13) may provide that utilities, trash collection, snow removal, 
    and entomological services will be furnished by the Federal 
    Government at no cost to the occupant to the same extent that these 
    items are provided to occupants of housing owned by the Federal 
    Government; and
        (14) may require that rent collection and operation and 
    maintenance services in connection with the housing be under the 
    terms of a separate agreement or be carried out by personnel of the 
    Federal Government.

    (d) Conditions on Obligation of Funds.--An agreement entered into 
for a project pursuant to subsection (a) shall include the following 
provisions:
        (1) A statement that the obligation of the United States to make 
    payments under the agreement in any fiscal year is subject to 
    appropriations being provided specifically for that fiscal year and 
    specifically for that project.
        (2) A commitment to obligate the necessary amount for each 
    fiscal year covered by the agreement when and to the extent that 
    funds are appropriated for such project for such fiscal year.
        (3) A statement that such a commitment entered into under the 
    authority of this section does not constitute an obligation of the 
    United States.

    (e) Competitive Process.--An agreement under subsection (a) shall be 
made through the use of publicly advertised, competitively bid, or 
competitively negotiated, contracting procedures as provided in chapter 
137 of this title. In accordance with such procedures, the Secretary of 
a military department, or the Secretary of Transportation, as the case 
may be, shall solicit bids or proposals for a guaranty agreement for 
each military housing rental guaranty project authorized in accordance 
with subsection (b).
    (f) Notice and Wait Requirements.--An agreement may not be entered 
into under subsection (a) until--
        (1) the Secretary of Defense, or the Secretary of Transportation 
    with respect to the Coast Guard, submits to the appropriate 
    committees of Congress, in writing, an economic analysis (based upon 
    accepted life cycle costing procedures) which demonstrates that the 
    proposed agreement is cost effective when compared with alternative 
    means of furnishing the same housing facilities; and
        (2) a period of 21 calendar days has expired following the date 
    on which the economic analysis is received by those committees.

    (g) Disputes.--The Secretary concerned may require that disputes 
arising under an agreement entered into under subsection (a) be decided 
in accordance with the procedures provided for by the Contract Disputes 
Act of 1978 (41 U.S.C. 601 et seq.).

(Added Pub. L. 102-190, div. B, title XXVIII, Sec. 2809(a)(1), Dec. 5, 
1991, 105 Stat. 1541.)

                       References in Text

    The Contract Disputes Act of 1978, referred to in subsec. (g), is 
Pub. L. 95-563, Nov. 1, 1978, 92 Stat. 2383, as amended, which is 
classified principally to chapter 9 (Sec. 601 et seq.) of Title 41, 
Public Contracts. For complete classification of this Act to the Code, 
see Short Title note set out under section 601 of Title 41 and Tables.


                            Prior Provisions

    Similar provisions were contained in Pub. L. 98-115, title VIII, 
Sec. 802, Oct. 11, 1983, 97 Stat. 783, as amended, which was set out as 
a note under section 2821 of this title, prior to repeal by Pub. L. 102-
190, Sec. 2809(b).


                             Effective Date

    Section 2809(c) of Pub. L. 102-190 provided that: ``Section 2836 of 
title 10, United States Code, as added by subsection (a), shall apply 
with respect to contracts entered into under that section on or after 
the date of the enactment of this Act [Dec. 5, 1991]. The amendment made 
by subsection (b) [repealing provisions set out as a note under section 
2821 of this title] shall not affect the validity of any contract 
entered into before that date under section 802 of the Military 
Construction Authorization Act, 1984 (10 U.S.C. 2821 note), as in effect 
on the day before that date.''
