
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC3733]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
 
                SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
 
Sec. 3733. Property management

    (a)(1) Of the number of purchases made during any fiscal year of 
real property acquired by the Secretary as the result of a default on a 
loan guaranteed under this chapter for a purpose described in section 
3710(a) of this title, not more than 65 percent, nor less than 50 
percent, of such purchases may be financed by a loan made by the 
Secretary. The maximum percentage stated in the preceding sentence may 
be increased to 80 percent for any fiscal year if the Secretary 
determines that such an increase is necessary in order to maintain the 
effective functioning of the loan guaranty program.
    (2) After September 30, 1990, the percentage limitations described 
in paragraph (1) of this subsection shall have no effect.
    (3) The Secretary may, beginning on October 1, 1990, sell any note 
evidencing a loan referred to in paragraph (1)--
        (A) with recourse; or
        (B) without recourse, but only if the amount received is equal 
    to an amount which is not less than the unpaid balance of such loan.

    (4)(A) Except as provided in subparagraph (B) of this paragraph, the 
amount of a loan made by the Secretary to finance the purchase of real 
property from the Secretary described in paragraph (1) of this 
subsection may not exceed an amount equal to 95 percent of the purchase 
price of such real property.
    (B)(i) The Secretary may waive the provisions of subparagraph (A) of 
this paragraph in the case of any loan described in paragraph (5) of 
this subsection.
    (ii) A loan described in subparagraph (A) of this paragraph may, to 
the extent the Secretary determines to be necessary in order to market 
competitively the property involved, exceed 95 percent of the purchase 
price.
    (5) The Secretary may include, as part of a loan to finance a 
purchase of real property from the Secretary described in paragraph (1) 
of this subsection, an amount to be used only for the purpose of 
rehabilitating such property. Such amount may not exceed the amount 
necessary to rehabilitate the property to a habitable state, and 
payments shall be made available periodically as such rehabilitation is 
completed.
    (6) The Secretary shall make a loan to finance the sale of real 
property described in paragraph (1) of this subsection at an interest 
rate that is lower than the prevailing mortgage market interest rate in 
areas where, and to the extent, the Secretary determines, in light of 
prevailing conditions in the real estate market involved, that such 
lower interest rate is necessary in order to market the property 
competitively and is in the interest of the long-term stability and 
solvency of the Veterans Housing Benefit Program Fund established by 
section 3722(a) of this title.
    (b) The Secretary may not make a loan to finance a purchase of 
property acquired by the Secretary as a result of a default on a loan 
guaranteed under this chapter unless the purchaser meets the credit 
underwriting standards established under section 3710(g)(2)(A) of this 
title.
    (c)(1) The Secretary shall identify and compile information on 
common factors which the Secretary finds contribute to foreclosures on 
loans guaranteed under this chapter.
    (2) The Secretary shall include a summary of the information 
compiled, and the Secretary's findings, under paragraph (1) of this 
subsection in the annual report submitted to the Congress under section 
529 of this title. As part of such summary and findings, the Secretary 
shall provide a separate analysis of the factors which contribute to 
foreclosures of loans which have been assumed.
    (d)(1) The Secretary shall furnish to real estate brokers and other 
real estate sales professionals information on the availability of real 
property for disposition under this chapter and the procedures used by 
the Department of Veterans Affairs to dispose of such property.
    (2) For the purpose of facilitating the most expeditious sale, at 
the highest possible price, of real property acquired by the Secretary 
as the result of a default on a loan guaranteed, insured, or made under 
this chapter, the Secretary shall list all such property with real 
estate brokers under such arrangements as the Secretary determines to be 
most appropriate and cost effective.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1212, Secs. 1816(d)-(f), 1832; 
Pub. L. 98-369, div. B, title V, Sec. 2512(a)(2), July 18, 1984, 98 
Stat. 1117; Pub. L. 99-576, title IV, Secs. 402(c)(1), 403, 408(a), Oct. 
28, 1986, 100 Stat. 3281, 3283; Pub. L. 100-136, Sec. 2, Oct. 16, 1987, 
101 Stat. 813; Pub. L. 100-198, Secs. 6(a)(1), (b)(1), 14, Dec. 21, 
1987, 101 Stat. 1317, 1318, 1325; Pub. L. 100-203, title VII, 
Secs. 7001, 7003(a), Dec. 22, 1987, 101 Stat. 1330-278, 1330-279; Pub. 
L. 100-253, Sec. 2, Feb. 29, 1988, 102 Stat. 20; renumbered Sec. 1833 
and amended Pub. L. 100-322, title IV, Sec. 415(b)(1)(D), (5)(B), (C), 
May 20, 1988, 102 Stat. 550, 551; Pub. L. 100-689, title III, Sec. 301, 
Nov. 18, 1988, 102 Stat. 4176; Pub. L. 101-237, title III, Secs. 305(a), 
313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2073, 2077; Pub. L. 101-239, 
title V, Secs. 5002, 5003(a), Dec. 19, 1989, 103 Stat. 2136; Pub. L. 
102-54, Secs. 2, 14(g)(1), 15(a)(5), June 13, 1991, 105 Stat. 267, 288, 
289; renumbered Sec. 3733 and amended Pub. L. 102-83, Secs. 2(c)(3), 
5(a), (c)(1), Aug. 6, 1991, 105 Stat. 402, 406; Pub. L. 102-291, 
Sec. 5(b), May 20, 1992, 106 Stat. 180; Pub. L. 105-368, title VI, 
Sec. 602(c)(2), (e)(1)(E), Nov. 11, 1998, 112 Stat. 3346.)


                               Amendments

    1998--Subsec. (a)(6). Pub. L. 105-368, Sec. 602(e)(1)(E), 
substituted ``Veterans Housing Benefit Program Fund established by 
section 3722(a)'' for ``Department of Veterans Affairs Loan Guaranty 
Revolving Fund established by section 3724(a)''.
    Subsec. (e). Pub. L. 105-368, Sec. 602(c)(2), struck out subsec. (e) 
which read as follows: ``Notwithstanding any other provision of law, the 
amount received from the sale of any note evidencing a loan secured by 
real property described in subsection (a)(1) of this section, and the 
amount received from the sale of securities under section 3720(h) of 
this title, shall be credited, without any reduction and for the fiscal 
year in which the amount is received, as offsetting collections of--
        ``(1) the revolving fund for which a fee under section 3729 of 
    this title was collected (or was exempted from being collected) at 
    the time of the original guaranty of the loan that was secured by 
    the same property; or
        ``(2) in any case in which there was no requirement of (or 
    exemption from) a fee at the time of the original guaranty of the 
    loan that was secured by the same property, the Loan Guaranty 
    Revolving Fund; and
the total so credited to any revolving fund for a fiscal year shall 
offset outlays attributed to such revolving fund during such fiscal 
year.''
    1992--Subsec. (e). Pub. L. 102-291 inserted ``, and the amount 
received from the sale of securities under section 3720(h) of this 
title,''.
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 1833 of this 
title as this section.
    Subsec. (a)(1). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3710(a)'' for ``1810(a)''.
    Subsec. (a)(2). Pub. L. 102-54, Sec. 2(a), added par. (2) and struck 
out former par. (2) which read as follows: ``In carrying out paragraph 
(1) of this subsection, the Secretary, to the maximum extent consistent 
with that paragraph and with maintaining the effective functioning of 
the loan guaranty program under this chapter, shall minimize the number 
of loans made by the Secretary to finance purchases of real property 
from the Secretary described in that paragraph.''
    Subsec. (a)(3). Pub. L. 102-54, Sec. 2(a), added par. (3) and struck 
out former par. (3) which authorized sales before Oct. 1, 1990, of notes 
for loans under subsec. (a)(1) and required Secretary to make reports of 
such sales to Committees on Veterans' Affairs of Senate and House of 
Representatives.
    Subsec. (a)(6). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3724(a)'' for ``1824(a)''.
    Pub. L. 102-54, Sec. 3(b), redesignated par. (7) as (6) and struck 
out former par. (6) which read as follows: ``This subsection shall cease 
to have effect on December 31, 1990.''
    Subsec. (a)(7). Pub. L. 102-54, Sec. 3(b)(2), redesignated par. (7) 
as (6).
    Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted 
``3710(g)(2)(A)'' for ``1810(g)(2)(A)''.
    Subsec. (c)(2). Pub. L. 102-83, Sec. 2(c)(3), substituted ``section 
529'' for ``section 214''.
    Subsec. (d). Pub. L. 102-54, Sec. 14(g)(1), made a technical 
amendment to Pub. L. 100-322, Sec. 415(b)(5)(C). See 1988 Amendment note 
below.
    Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted ``3729'' for 
``1829'' in par. (1).
    Pub. L. 102-54, Sec. 15(a)(5), struck out subsec. (e) as added by 
Pub. L. 101-239, Sec. 5003(a), which was identical to subsec. (e) added 
by Pub. L. 101-237, Sec. 305(a)(3). See 1989 Amendment note below.
    1989--Subsec. (a). Pub. L. 101-237 Sec. 313(b)(1), (2), substituted 
``Secretary'' and ``Department of Veterans Affairs'' for 
``Administrator'' and ``Veterans' Administration'', respectively, 
wherever appearing.
    Subsec. (a)(3). Pub. L. 101-239, Sec. 5002, substituted ``October 1, 
1990'' for ``October 1, 1989'' wherever appearing.
    Pub. L. 101-237, Sec. 305(a)(1), which directed the amendment of 
subpar. (A) by substituting ``Subject to subparagraph (C) of this 
paragraph,'' for ``Before October 1, 1990,'' the amendment of 
subparagraph (B) by striking out ``occurring before October 1, 1990,'' 
after ``of this paragraph'', and the amendment of subpar. (C) by 
substituting ``October 1, 1989'' for ``October 1, 1990'' in introductory 
provisions, did not become effective, see section 305(b)(1) of Pub. L. 
101-237, set out as an Effective Date of 1989 Amendments note below.
    Subsec. (a)(6). Pub. L. 101-237, Sec. 305(a)(2), substituted 
``December 31'' for ``October 1''.
    Subsecs. (b) to (d). Pub. L. 101-237, Sec. 313(b)(1), (2), 
substituted ``Secretary'', ``Secretary's'', and ``Department of Veterans 
Affairs'' for ``Administrator'', ``Administrator's'', and ``Veterans' 
Administration'', respectively, wherever appearing.
    Subsec. (e). Pub. L. 101-237, Sec. 305(a)(3), and Pub. L. 101-239, 
Sec. 5003(a), amended section identically adding identical subsecs. (e).
    1988--Pub. L. 100-322, Sec. 415(b)(1)(D), added section catchline.
    Subsec. (a). Pub. L. 100-322, Sec. 415(b)(1)(D), redesignated 
subsec. (d) of section 1816 of this title as subsec. (a) of this 
section.
    Subsec. (a)(4)(B) [formerly Sec. 1816(d)(4)(B)]. Pub. L. 100-253 
designated existing provisions as cl. (i) and added cl. (ii).
    Subsec. (a)(7). Pub. L. 100-689 added par. (7).
    Subsecs. (b), (c). Pub. L. 100-322, Sec. 415(b)(1)(D), redesignated 
subsecs. (e) and (f) of section 1816 of this title as subsecs. (b) and 
(c), respectively, of this section.
    Subsec. (d). Pub. L. 100-322, Sec. 415(b)(5)(B), (C), as amended by 
Pub. L. 102-54, Sec. 14(g)(1), redesignated subsecs. (a) and (b) of 
section 1832 of this title as pars. (1) and (2), respectively, of 
subsec. (d) of this section.
    1987--Subsec. (a)(1) [formerly Sec. 1816(d)(1)]. Pub. L. 100-198, 
Sec. 6(a)(1), and Pub. L. 100-203, Sec. 7003(a), amended par. (1) 
identically, substituting ``not more than 65 percent, nor less than 50 
percent'' for ``not more than 75 percent, nor less than 60 percent''. 
See 1988 Amendment note above.
    Subsec. (a)(3) [formerly Sec. 1816(d)(3)]. Pub. L. 100-203, 
Sec. 7001, added subpars. (A) and (B), redesignated existing provisions 
as subpar. (C), substituted ``Beginning on October 1, 1989, the 
Administrator may sell any note evidencing'' for ``The Administrator may 
sell any note securing'', and redesignated cls. (A) and (B) as (i) and 
(ii), respectively. See 1988 Amendment note above.
    Pub. L. 100-136 amended par. (3) generally. Prior to amendment, par. 
(3) read as follows: ``Notes securing such loans may be sold with 
recourse only to the extent that the Administrator determines that 
selling such notes with recourse is necessary in order to maintain the 
effective functioning of the loan guaranty program under this chapter.'' 
See 1988 Amendment note above.
    Subsec. (a)(4) to (6) [formerly Sec. 1816(d)(4) to (6)]. Pub. L. 
100-198, Sec. 6(b)(1), added pars. (4) to (6). See 1988 Amendment note 
above.
    Subsec. (d) [formerly Sec. 1832]. Pub. L. 100-198, Sec. 14, 
designated existing provisions as subsec. (a) and added subsec. (b). See 
1988 Amendment note above.
    1986--Subsec. (b) [formerly Sec. 1816(e)]. Pub. L. 99-576, 
Sec. 402(c)(1), added subsec. (e). See 1988 Amendment note above.
    Subsec. (c) [formerly Sec. 1816(f)]. Pub. L. 99-576, Sec. 403, added 
subsec. (f). See 1988 Amendment note above.
    Subsec. (d) [formerly Sec. 1832]. Pub. L. 99-576, Sec. 408(a), 
enacted section. See 1988 Amendment note above.
    1984--Subsec. (a) [formerly Sec. 1816(d)]. Pub. L. 98-369, 
Sec. 2512(a)(2), added subsec. (d). See 1988 Amendment note above.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-368 effective Oct. 1, 1998, see section 
602(f) of Pub. L. 105-368, set out as a note under section 2106 of this 
title.


                    Effective Date of 1991 Amendment

    Section 14(g)(1) of Pub. L. 102-54 provided that the amendment made 
by that section is effective as of May 20, 1988.


                    Effective Date of 1989 Amendments

    Section 5003(b) of Pub. L. 101-239 provided that: ``Subsection (e) 
of section 1833 [now 3733] of title 38, United States Code, as added by 
subsection (a), shall apply with respect to amounts referred to in such 
subsection (e) received on or after October 1, 1989.''
    Section 305(b)(1) of Pub. L. 101-237, as amended by Pub. L. 102-83, 
Sec. 5(c)(2), Aug. 6, 1991, 105 Stat. 406, provided that: ``If, before 
the date and time of the enactment of this Act [Dec. 18, 1989], no 
provision of law has been enacted amending section 1833 [now 3733] of 
title 38, United States Code, by adding a new subsection (e) with a text 
substantively identical to the text of the new subsection (e) added to 
such section 1833 [now 3733] by subsection (a)(3) of this section, the 
provisions of subsection (a)(1) of this section amending subsection 
(a)(3) of such section 1833 [now 3733] shall not take effect.''
    Section 305(b)(2) of Pub. L. 101-237, as amended by Pub. L. 102-83, 
Sec. 5(c)(2), Aug. 6, 1991, 105 Stat. 406, provided that: ``Subsection 
(e) of section 1833 [now 3733] of such title 38, as added by subsection 
(a)(3), shall apply with respect to amounts referred to in such 
subsection (e) received after September 30, 1989.''


                    Effective Date of 1987 Amendments

    Section 7003(b) of Pub. L. 100-203 provided that: ``The amendment 
made by subsection (a) [amending this section] shall take effect as of 
October 1, 1987.''
    Section 6(a)(2) of Pub. L. 100-198 provided that: ``The amendment 
made by paragraph (1) [amending this section] shall take effect as of 
October 1, 1987.''
    Section 6(b)(2) of Pub. L. 100-198 provided that: ``The amendment 
made by this subsection [amending this section] shall apply to loans 
made more than 30 days after the date of the enactment of this Act [Dec. 
21, 1987].''


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective Oct. 1, 1984, see section 
2512(c) of Pub. L. 98-369, as amended, set out as a note under section 
3732 of this title.


              Rule for Construction of Duplicate Provisions

    Section 7004(b) of title VII of Pub. L. 100-203 provided that: ``In 
applying the provisions of this title [title VII of Pub. L. 100-203] and 
the provisions of the Veterans' Home Loan Program Improvements and 
Property Rehabilitation Act of 1987 [Pub. L. 100-198] which make the 
same amendments as the provisions of this title [amending sections 1816 
[now 3733] and 1829 [now 3729] of this title]--
        ``(1) the identical provisions of title 38, United States Code, 
    amended by the provisions of this title and the provisions of such 
    Act shall be treated as having been amended only once; and
        ``(2) in executing to title 38, United States Code, the 
    amendments made by this title and by such Act, such amendments shall 
    be executed so as to appear only once in the law.''


                           Report to Congress

    Section 6(c) of Pub. L. 100-198 directed Administrator of Veterans' 
Affairs, by Mar. 1, 1990, to transmit to Congress a report of activities 
carried out, through Dec. 31, 1989, under paragraphs (4) and (5) of 
section 1816(d) of this title [which became pars. (4) and (5) of subsec. 
(a) of this section].

                  Section Referred to in Other Sections

    This section is referred to in sections 3714, 3722, 3729, 3735 of 
this title.
