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LegalText 38 U.S.C. § 3727 Expenditures to correct or compensate for structural defects in mortgaged homes us united_states_code code_section 38 VETERANS BENEFITS 37 HOUSING AND SMALL BUSINESS LOANS 3727 38 U.S.C. § 3727 current 119-100 2026-06-26 official https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc38@119-100.zip /us/usc/t38/s3727 data/legal/raw/us/code/title-38/usc38.xml a323e14470872e6ec2344c37e287bb32b52b066db3e418f75b461bdc0b7d6557 372998691b72ade88787dfa7633dbda4954bd1b037ec7926c5e06e9b1d17fc66 a267a88125103fae518755ab9cc78ca0afe724dff088b345b241ede52c2696e6 2026-07-04 official
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38 U.S.C. § 3727 - Expenditures to correct or compensate for structural defects in mortgaged homes

Text

(a) The Secretary is authorized, with respect to any property improved by a one- to four-family dwelling inspected during construction by the Department of Veterans Affairs or the Federal Housing Administration which the Secretary finds to have structural defects seriously affecting the livability of the property, to make expenditures for (1) correcting such defects, (2) paying the claims of the owner of the property arising from such defects, or (3) acquiring title to the property; except that such authority of the Secretary shall exist only (A) if the owner requests assistance under this section not later than four years (or such shorter time as the Secretary may prescribe) after the mortgage loan was made, guaranteed, or insured, and (B) if the property is encumbered by a mortgage which is made, guaranteed, or insured under this chapter after May 7, 1968.

(b) The Secretary shall by regulation prescribe the terms and conditions under which expenditures and payments may be made under the provisions of this section, and the Secretarys decisions regarding such expenditures or payments, and the terms and conditions under which the same are approved or disapproved, shall be final and conclusive, and shall not be subject to judicial review.

(c) The Secretary is authorized to make expenditures for the purposes of this section from the fund established pursuant to section 3722 of this title.

(Added Pub. L. 90301, § 5(a), May 7, 1968, 82 Stat. 116, § 1827; amended Pub. L. 94324, § 7(31), June 30, 1976, 90 Stat. 722; Pub. L. 101237, title III, § 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2077; renumbered § 3727 and amended Pub. L. 10283, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105368, title VI, § 602(e)(1)(C), title X, § 1005(b)(11), Nov. 11, 1998, 112 Stat. 3346, 3365.)

Notes

Editorial Notes

Amendments1998—Subsec. (a). Pub. L. 105368, § 1005(b)(11), substituted “May 7, 1968” for “the date of enactment of this section”. Subsec. (c). Pub. L. 105368, § 602(e)(1)(C), substituted “fund established pursuant to section 3722 of this title” for “funds established pursuant to sections 3723 and 3724 of this title, as applicable”. 1991—Pub. L. 10283, § 5(a), renumbered section 1827 of this title as this section. Subsec. (c). Pub. L. 10283, § 5(c)(1), substituted “3723 and 3724” for “1823 and 1824”. 1989—Pub. L. 101237 substituted “Secretary”, “Secretarys”, and “Department of Veterans Affairs” for “Administrator”, “Administrators”, and “Veterans Administration”, respectively, wherever appearing. 1976—Subsec. (a). Pub. L. 94324 substituted “the Administrator finds” for “he finds”. Subsec. (b). Pub. L. 94324 substituted “the Administrators” for “his”.

Statutory Notes and Related Subsidiaries

Effective Date of 1998 AmendmentAmendment by section 602 of Pub. L. 105368 effective Oct. 1, 1998, see section 602(f) of Pub. L. 105368, set out as a note under section 2106 of this title.

Effective Date of 1976 AmendmentAmendment by Pub. L. 94324 effective June 30, 1976, see section 9(a) of Pub. L. 94324, set out as a note under section 3701 of this title.