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The Veteran Housing Opportunity and Benefit Act of 2006

Veterans Benefits Administration Circular 26-06-05
Department of Veterans Affairs June 22,2006
Washington, DC 20420
One June 15, 2006, the President signed P.L. 109-233, the Veterans Housing Opportunity and Benefits Act of 2006. This circular explains provisions impacting the Loan Guaranty Program.
Specially Adapted Housing
  • The law authorizes VA to provide Specially Adapted Housing (SAH) assistance to veterans who are temporarily residing in a home owned by a family member. This assistance would be in the form of a grant to assist the veteran in adapting the family member?s home to meet his or her special needs. Those eligible for the grant would be permitted to use up to $14,000 of the maximum grant amount for a 2101(a) grant or up to $2,000 of the maximum grant amount for a 2101(b) grant. This new provision does not authorize VA to make such grants available to assist active duty service members.
  • The law changes the one-time only usage of grant benefits. Although a veteran may now use his or her benefits up to a total of three times, the aggregate amount of assistance cannot exceed the maximum amounts allowable for either the 2101(a) or 2101(b) grant.
  • The law reestablishes VA?s authority to make SAH grants (but not the temporary grants referred to above) to active duty service personnel awaiting disability discharge.
  • No temporary grant assistance may be provided after June 15th, 2011.
  • The benefits administered under chapters 17, 21, and 31 of Title 38. These provisions cover assistance provided under the Home Improvement and Structural Alteration (HISA), SAH, and Independent Living (IL) benefit programs.
Temporary Funding Fee Increase

The law increases the funding fee from 3.3 percent to 3.35 percent for subsequent loans with less than 5 percent down payments closed during Fiscal Year 2007 (October 1, 2006 - September 30, 2007).


LOCAL PRODUCTION AUTHORIZED Courtesy of Dept of Veteran Affairs


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