
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC2875]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
     CHAPTER 169--MILITARY CONSTRUCTION AND MILITARY FAMILY HOUSING
 
SUBCHAPTER IV--ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                            MILITARY HOUSING
 
Sec. 2875. Investments

    (a) Investments Authorized.--The Secretary concerned may make 
investments in an eligible entity carrying out projects for the 
acquisition or construction of housing units suitable for use as 
military family housing or as military unaccompanied housing.
    (b) Forms of Investment.--An investment under this section may take 
the form of an acquisition of a limited partnership interest by the 
United States, a purchase of stock or other equity instruments by the 
United States, a purchase of bonds or other debt instruments by the 
United States, or any combination of such forms of investment.
    (c) Limitation on Value of Investment.--(1) The cash amount of an 
investment under this section in an eligible entity may not exceed an 
amount equal to 33\1/3\ percent of the capital cost (as determined by 
the Secretary concerned) of the project or projects that the eligible 
entity proposes to carry out under this section with the investment.
    (2) If the Secretary concerned conveys land or facilities to an 
eligible entity as all or part of an investment in the eligible entity 
under this section, the total value of the investment by the Secretary 
under this section may not exceed an amount equal to 45 percent of the 
capital cost (as determined by the Secretary) of the project or projects 
that the eligible entity proposes to carry out under this section with 
the investment.
    (3) In this subsection, the term ``capital cost'', with respect to a 
project for the acquisition or construction of housing, means the total 
amount of the costs included in the basis of the housing for Federal 
income tax purposes.
    (d) Collateral Incentive Agreements.--The Secretary concerned shall 
enter into collateral incentive agreements with eligible entities in 
which the Secretary makes an investment under this section to ensure 
that a suitable preference will be afforded members of the armed forces 
and their dependents in the lease or purchase, as the case may be, of a 
reasonable number of the housing units covered by the investment.
    (e) Congressional Notification Required.--Amounts in the Department 
of Defense Family Housing Improvement Fund or the Department of Defense 
Military Unaccompanied Housing Improvement Fund may be used to make a 
cash investment under this section in an eligible entity only after the 
end of the 30-day period beginning on the date the Secretary of Defense 
submits written notice of, and justification for, the investment to the 
appropriate committees of Congress.

(Added Pub. L. 104-106, div. B, title XXVIII, Sec. 2801(a)(1), Feb. 10, 
1996, 110 Stat. 546; amended Pub. L. 105-85, div. B, title XXVIII, 
Sec. 2805, Nov. 18, 1997, 111 Stat. 1991; Pub. L. 106-65, div. B, title 
XXVIII, Sec. 2803(d), (h)(1), Oct. 5, 1999, 113 Stat. 849.)


                               Amendments

    1999--Pub. L. 106-65, Sec. 2803(h)(1), struck out ``in 
nongovernmental entities'' after ``Investments'' in section catchline.
    Subsec. (a). Pub. L. 106-65, Sec. 2803(d)(1), substituted ``an 
eligible entity'' for ``nongovernmental entities''.
    Subsec. (c). Pub. L. 106-65, Sec. 2803(d)(2), substituted ``an 
eligible entity'' for ``a nongovernmental entity'' in pars. (1) and (2) 
and ``the eligible entity'' for ``the entity'' wherever appearing in 
pars. (1) and (2).
    Subsec. (d). Pub. L. 106-65, Sec. 2803(d)(3), substituted 
``eligible'' for ``nongovernmental''.
    Subsec. (e). Pub. L. 106-65, Sec. 2803(d)(4), substituted ``an 
eligible entity'' for ``a nongovernmental entity''.
    1997--Subsec. (e). Pub. L. 105-85 added subsec. (e).

                  Section Referred to in Other Sections

    This section is referred to in section 2883 of this title.
