---
kind: "section"
citation: "38 U.S.C. § 2052"
title: "38"
title_heading: "Veterans’ Benefits"
number: "2052"
heading: "Requirements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/2052"
units:
  - "Part II — General Benefits"
  - "Chapter 20 — Benefits for Homeless Veterans"
  - "Subchapter VI — Loan Guarantee for Multifamily Transitional Housing"
---

# §2052. Requirements

- (a) A loan referred to in [section 2051 of this title](/usc/38/2051.md) 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)](#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)](#a-1-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](/usc/38/101.md?p=20) 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](/usc/38/101.md?p=1) 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)](#a-1) is a project that—
  - (1) provides transitional housing to [homeless veterans](/usc/38/2002.md?p=a-1), 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](/usc/42/1437f.md) (n)));
  - (2) provides supportive services and counselling services (including job counselling) at the project site with the goal of making such [veterans](/usc/38/1101.md?p=1) self-sufficient;
  - (3) requires that each such [veteran](/usc/38/1101.md?p=1) 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](/usc/38/1101.md?p=1) who are not homeless and to homeless individuals who are not [veterans](/usc/38/1101.md?p=1) if—
    - (A) at the time of taking occupancy by any such [veteran](/usc/38/1101.md?p=1) or homeless individual, the transitional housing needs of [homeless veterans](/usc/38/2002.md?p=a-1) in the project area have been met;
    - (B) the housing needs of any such [veteran](/usc/38/1101.md?p=1) or homeless individual can be met in a manner that is compatible with the manner in which the needs of [homeless veterans](/usc/38/2002.md?p=a-1) are met under [paragraph (1)](#c-1); and
    - (C) the provisions of paragraphs [(4)](#b-4) and [(5)](#b-5) of subsection (b) are met.
- (d) In determining whether to guarantee a loan under this subchapter, the [Secretary](/usc/38/101.md?p=1) shall consider—
  - (1) the availability of Department of Veterans Affairs [medical services](/usc/38/1701.md?p=6) to residents of the multifamily transitional housing project; and
  - (2) the extent to which needs of [homeless veterans](/usc/38/2002.md?p=a-1) are met in a community, as assessed under section 107 of Public Law 102–405.

## 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.)

## Notes

### Editorial Notes

### References in Text

Section 107 of Public Law 102–405, referred to in subsec. (d)(2), is set out as a note under section 527 of this title.

### Amendments

2004—Subsec. (c)(1). Pub. L. 108–454 substituted “services, other commercial activities,” for “services”.

2001—Pub. L. 107–95, § 5(d)(1), renumbered section 3773 of this title as this section.

Subsec. (a). Pub. L. 107–95, § 5(d)(2)(C), substituted “section 2051 of this title” for “section 3772 of this title” in introductory provisions.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as an Effective Date of 1998 Amendment note under section 2106 of this title.