S.Amdt. 5640

1. Adds SEC. 2825. RESPONSES TO THE HOUSING SHORTAGE FOR MEMBERS OF THE ARMED FORCES at the end of subtitle B of title XXVIII

   Adds a section

   In S.Amdt. 5499 as proposed

   Not later than March 1, 2023, the Secretary of Defense shall implement the recommendations contained in the report of the Inspector General of the Department of Defense dated April 1, 2022, and entitled, "Audit of Medical Conditions of Residents in Privatized Military Housing" (DODIG-2022-078).

   Inserted: SEC. 2825. RESPONSES TO THE HOUSING SHORTAGE FOR MEMBERS OF THE ARMED FORCES.

   Inserted: (a) Report on Housing Shortage for Members of the Armed Forces.--

   Inserted: (1) In general.--Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report on the housing shortage for members of the Armed Forces.

   Inserted: (2) Elements.--The report required under subsection (a) shall include the following elements:

   Inserted: (A) The determination of the Secretary regarding the feasibility of acquiring real property near military installations that face housing shortages to be used for the development of privatized housing.

   Inserted: (B) The determination of the Secretary regarding the need for an officer or civilian employee of the Department of Defense to serve, at each military installation, as a housing manager.

   Inserted: (b) Guidance to Landlords of Privatized Housing.--Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall prescribe guidance for eligible entities and landlords regarding acceptable housing standards for privatized housing.

   Inserted: (c) Pilot and Grant Programs.--

   Inserted: (1) Pilot program on using rental partnership programs of the armed forces to assure tenants for developers of privatized housing.--

   Inserted: (A) In general.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall establish a pilot program to assess the feasibility of using the rental partnership programs of the Armed Forces to assure tenants for eligible entities to secure financing to construct privatized housing.

   Inserted: (B) Locations.--The Secretary shall operate the pilot program under subparagraph (A) in not more than 10 military housing areas that each have a rental vacancy rate of less than seven percent.

   Inserted: (C) Term.--The pilot program under subparagraph (A) shall terminate on the date that is five years after the Secretary establishes the pilot program.

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   Inserted: (D) Report.--Not later than 90 days after the termination of the pilot program under subparagraph (A), the Secretary shall submit to Congress a report on the results of the pilot program.

   Inserted: (2) Joint pilot program on financial incentives for developers of privatized housing.--

   Inserted: (A) In general.--Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense, in coordination with the Secretary of Housing and Urban Development, shall develop a pilot program to provide financial incentives to eligible entities to build privatized housing or to purchase or lease existing facilities to house members of the Armed Forces and their dependents and to house low-income individuals and families, as determined by the Secretary of Housing and Urban Development.

   Inserted: (B) Eligible projects.--

   Inserted: (i) In general.--In order to be eligible for an incentive under the pilot program under subparagraph (A), proposed privatized housing shall ensure that a percentage of such housing is reserved for members of the Armed Forces and dependents of such members.

   Inserted: (ii) Percentage.--The percentage under clause (i) shall vary proportionately to the value of the incentive provided under subparagraph (A).

   Inserted: (C) Locations.--The Secretary of Defense and the Secretary of Housing and Urban Development shall operate the pilot program under subparagraph (A) in areas that have the longest wait times for on-base housing.

   Inserted: (D) Priority.--In selecting eligible entities under the pilot program under subparagraph (A), the Secretary of Defense and the Secretary of Housing and Urban Development shall give priority to entry-level housing and projects with greater density.

   Inserted: (E) Term.--The pilot program under subparagraph (A) shall terminate on the date that is five years after the Secretary of Defense establishes the pilot program.

   Inserted: (F) Report.--Not later than 90 days after the termination of the pilot program, the Secretary of Defense and the Secretary of Housing and Urban Development shall submit to Congress a report on the results of the pilot program.

   Inserted: (3) Joint grant program.--

   Inserted: (A) In general.--The Secretary of Defense and Secretary of Housing and Urban Development may jointly operate a grant program through the Office of Local Defense Community Cooperation of the Department of Defense to build housing for members of the Armed Forces and their dependents and for low-income individuals and families.

   Inserted: (B) Treatment of household income limits.--Household income limits for entities eligible to receive a grant under subparagraph (A) shall not differ based on whether a household includes a member of the Armed Forces.

   Inserted: (d) Definitions.--In this section:

   Inserted: (1) Eligible entity; landlord.--The terms "eligible entity" and "landlord" have the meanings given such terms in section 2871 of title 10, United States Code.

   Inserted: (2) Privatized housing.--The term "privatized housing" means housing under subchapter IV of chapter 169 of such title.

   Original wording

   At the end of subtitle B of title XXVIII, add the following:

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As printed