# § 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.
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**Source Credit**: (Added Pub. L. 105–368, title VI, § 601(a), Nov. 11, 1998, 112 Stat. 3343, § 3773; renumbered § 2052 and amended Pub. L. 107–95, § 5(d)(1), (2)(C), Dec. 21, 2001, 115 Stat. 918; Pub. L. 108–454, title IV, § 402(b), Dec. 10, 2004, 118 Stat. 3616.)
## Editorial Notes
### References in Text
, referred to in subsec. (d)(2), is set out as a note under .
### Amendments
2004—Subsec. (c)(1). substituted “services, other commercial activities,” for “services”.
2001—, renumbered as this section.
Subsec. (a). , substituted “” for “” in introductory provisions.
## Statutory Notes and Related Subsidiaries
### Effective Date
Section effective , see , set out as an Effective Date of 1998 Amendment note under .