§ 2052. Requirements

• (a) A loan referred to in section 2051 of this title meets the requirements of this subchapter if each of the following requirements is met:
  • (1) The loan—
    • (A) is for—
      • (i) construction of, rehabilitation of, or acquisition of land for a multifamily transitional housing project described in subsection (b), or more than one of such purposes; or
      • (ii) refinancing of an existing loan for such a project; and
    • (B) may also include additional reasonable amounts for—
      • (i) financing acquisition of furniture, equipment, supplies, or materials for the project; or
      • (ii) in the case of a loan made for purposes of subparagraph (A)(i), supplying the organization carrying out the project with working capital relative to the project.
  • (2) The loan is made in connection with funding or the provision of substantial property or services for such project by either a State or local government or a nongovernmental entity, or both.
  • (3) The maximum loan amount does not exceed the lesser of—
    • (A) that amount generally approved (utilizing prudent underwriting principles) in the consideration and approval of projects of similar nature and risk so as to assure repayment of the loan obligation; and
    • (B) 90 percent of the total cost of the project.
  • (4) The loan is of sound value, taking into account the creditworthiness of the entity (and the individual members of the entity) applying for such loan.
  • (5) The loan is secured.
  • (6) The loan is subject to such terms and conditions as the Secretary determines are reasonable, taking into account other housing projects with similarities in size, location, population, and services provided.
• (b) For purposes of this subchapter, a multifamily transitional housing project referred to in subsection (a)(1) is a project that—
  • (1) provides transitional housing to homeless veterans, which housing may be single room occupancy (as defined in section 8(n) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f (n)));
  • (2) provides supportive services and counselling services (including job counselling) at the project site with the goal of making such veterans self-sufficient;
  • (3) requires that each such veteran seek to obtain and maintain employment;
  • (4) charges a reasonable fee for occupying a unit in such housing; and
  • (5) maintains strict guidelines regarding sobriety as a condition of occupying such unit.
• (c) Such a project—
  • (1) may include space for neighborhood retail services, other commercial activities, or job training programs; and
  • (2) may provide transitional housing to veterans who are not homeless and to homeless individuals who are not veterans if—
    • (A) at the time of taking occupancy by any such veteran or homeless individual, the transitional housing needs of homeless veterans in the project area have been met;
    • (B) the housing needs of any such veteran or homeless individual can be met in a manner that is compatible with the manner in which the needs of homeless veterans are met under paragraph (1); and
    • (C) the provisions of paragraphs (4) and (5) of subsection (b) are met.
• (d) In determining whether to guarantee a loan under this subchapter, the Secretary shall consider—
  • (1) the availability of Department of Veterans Affairs medical services to residents of the multifamily transitional housing project; and
  • (2) the extent to which needs of homeless veterans are met in a community, as assessed under section 107 of Public Law 102–405 .