
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 107-95 Section 5(c)]
[CITE: 38USC3735]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
 
                SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
 
Sec. 3735. Housing assistance for homeless veterans

    (a)(1) To assist homeless veterans and their families in acquiring 
shelter, the Secretary may enter into agreements described in paragraph 
(2) with--
        (A) nonprofit organizations, with preference being given to any 
    organization named in, or approved by the Secretary under, section 
    5902 of this title; or
        (B) any State or any political subdivision thereof.

    (2) To carry out paragraph (1), the Secretary may enter into 
agreements to sell, lease, lease with an option to purchase, or donate 
real property, and improvements thereon, acquired by the Secretary as 
the result of a default on a loan made, insured, or guaranteed under 
this chapter. Such sale or lease or donation shall be for such 
consideration as the Secretary determines is in the best interests of 
homeless veterans and the Federal Government.
    (3) The Secretary may enter into an agreement under paragraph (1) of 
this subsection only if--
        (A) the Secretary determines that such an action will not 
    adversely affect the ability of the Department--
            (i) to fulfill its statutory missions with respect to the 
        Department loan guaranty program and the short- and long-term 
        solvency of the Veterans Housing Benefit Program Fund under this 
        chapter; or
            (ii) to carry out other functions and administer other 
        programs authorized by law;

        (B) the entity to which the property is sold, leased, or donated 
    agrees to--
            (i) utilize the property solely as a shelter primarily for 
        homeless veterans and their families,
            (ii) comply with all zoning laws relating to the property,
            (iii) make no use of the property that is not compatible 
        with the area where the property is located, and
            (iv) take such other actions as the Secretary determines are 
        necessary or appropriate in the best interests of homeless 
        veterans and the Federal Government; and

        (C) the Secretary determines that there is no significant 
    likelihood of the property being sold for a price sufficient to 
    reduce the liability of the Department or the veteran who defaulted 
    on the loan.

    (4) The term of any lease under this subsection may not exceed three 
years.
    (5) An approved entity that leases a property from the Secretary 
under this section shall be responsible for the payment of any taxes, 
utilities, liability insurance, and other maintenance charges or similar 
charges that apply to the property.
    (6) Any agreement, deed, or other instrument executed by the 
Secretary under this subsection shall be on such terms and conditions as 
the Secretary determines to be appropriate and necessary to carry out 
the purpose of such agreement.
    (b)(1) Subject to paragraphs (2) and (3), the Secretary may make 
loans to organizations described in paragraph (1)(A) of subsection (a) 
to finance the purchase of property by such organizations under such 
subsection.
    (2) In making a loan under this subsection, the Secretary--
        (A) shall establish credit standards to be used for this 
    purpose;
        (B) may, pursuant to section 3733(a)(6) of this title, provide 
    that the loan will bear interest at a rate below the rate that 
    prevails for similar loans in the market in which the loan is made; 
    and
        (C) may waive the collection of a fee under section 3729 of this 
    title in any case in which the Secretary determines that such a 
    waiver would be appropriate.

    (c) The Secretary may not enter into agreements under subsection (a) 
after December 31, 2003.

(Added Pub. L. 102-54, Sec. 9(a), June 13, 1991, 105 Stat. 272; 
renumbered Sec. 3735, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105 Stat. 
406; amended Pub. L. 102-590, Secs. 8, 9, Nov. 10, 1992, 106 Stat. 5140; 
Pub. L. 103-446, title XII, Sec. 1201(d)(13), Nov. 2, 1994, 108 Stat. 
4684; Pub. L. 104-110, title I, Sec. 101(h), Feb. 13, 1996, 110 Stat. 
768; Pub. L. 105-114, title II, Sec. 203(a), Nov. 21, 1997, 111 Stat. 
2288; Pub. L. 105-368, title VI, Sec. 602(e)(1)(G), Nov. 11, 1998, 112 
Stat. 3347; Pub. L. 106-117, title IX, Sec. 902, Nov. 30, 1999, 113 
Stat. 1587.)


                               Amendments

    1999--Subsec. (c). Pub. L. 106-117 substituted ``December 31, 2003'' 
for ``December 31, 1999''.
    1998--Subsec. (a)(3)(A)(i). Pub. L. 105-368 substituted ``Veterans 
Housing Benefit Program Fund'' for ``Loan Guaranty Revolving Fund and 
the Guaranty and Indemnity Fund''.
    1997--Subsec. (c). Pub. L. 105-114 substituted ``December 31, 1999'' 
for ``December 31, 1997''.
    1996--Subsec. (c). Pub. L. 104-110 substituted ``December 31, 1997'' 
for ``December 31, 1995''.
    1994--Subsec. (a)(1)(A). Pub. L. 103-446 substituted ``section 
5902'' for ``section 3402''.
    1992--Subsec. (a)(2). Pub. L. 102-590, Sec. 8(a)(1), inserted ``, 
lease, lease with an option to purchase, or donate'' after ``sell'' and 
``or lease or donation'' after ``sale''.
    Subsec. (a)(3)(B). Pub. L. 102-590, Sec. 8(a)(2), inserted ``, 
leased, or donated'' after ``sold'' in introductory provisions.
    Subsec. (a)(4) to (6). Pub. L. 102-590, Sec. 8(a)(3), (4), added 
pars. (4) and (5) and redesignated former par. (4) as (6).
    Subsec. (b). Pub. L. 102-590, Sec. 9(a)(2), added subsec. (b). 
Former subsec. (b) redesignated (c).
    Pub. L. 102-590, Sec. 8(b), substituted ``December 31, 1995'' for 
``September 30, 1993''.
    Subsec. (c). Pub. L. 102-590, Sec. 9(a)(1), redesignated subsec. (b) 
as (c).
    1991--Pub. L. 102-83 renumbered section 1835 of this title as this 
section.


                    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.


       Ratification of Actions During Period of Expired Authority

    Any action taken by Secretary of Veterans Affairs before Feb. 13, 
1996, under provision of law amended by title I of Pub. L. 104-110 that 
was taken during period beginning on date on which authority of 
Secretary under such provision of law expired and ending on Feb. 13, 
1996, considered to have same force and effect as if such amendment had 
been in effect at time of that action, see section 103 of Pub. L. 104-
110, set out as a note under section 1710 of this title.
