110 STAT. 546 PUBLIC LAW 104-106—FEB. 10, 1996 section and for all other cash flows to and from the Government as a result of direct loans and guarantees made under this section. "§ 2874. Leasing of housing to be constructed "(a) BUILD AND LEASE AUTHORIZED. —The Secretary concerned may enter into contracts for the lease of military family housing units or military unaccompanied housing units to be constructed under this subchapter. "(b) LEASE TERMS. —^A contract under this section may be for any period that the Secretary concerned determines appropriate and may provide for the owner of the leased property to operate and maintain the property. "§ 2875. Investments in nongovernmental entities "(a) INVESTMENTS AUTHORIZED. — The Secretary concerned may make investments in nongovernmental entities carrying out projects for the acquisition or construction of housing units suitable for use as military family housing or as military unaccompanied housing. "(b) FORMS OF INVESTMENT. —An investment under this section may take the form of an acquisition of a limited partnership interest by the United States, a purchase of stock or other equity instruments by the United States, a purchase of bonds or other debt instruments by the United States, or any combination of such forms of investment. "(c) LIMITATION ON VALUE OF INVESTMENT. — (1) The cash amount of an investment under this section in a nongovernmental entity may not exceed an amount equal to 33 Va percent of the capital cost (as determined by the Secretary concerned) of the project or projects that the entity proposes to carry out under this section with the investment. "(2) If the Secretary concerned conveys land or facilities to a nongovernmental entity as all or part of an investment in the entity under this section, the total value of the investment by the Secretary under this section may not exceed an amount equal to 45 percent of the capital cost (as determined by the Secretary) of the project or projects that the entity proposes to carry out under this section with the investment. "(3) In this subsection, the term 'capital cost', with respect to a project for the acquisition or construction of housing, means the total amount of the costs included in the basis of the housing for Federal income tax purposes. "(d) COLLATERAL INCENTIVE AGREEMENTS.— The Secretary concerned shall enter into collateral incentive agreements with nongovernmental entities in which the Secretary makes an investment under this section to ensure that a suitable preference will be afforded members of the armed forces and their dependents in the lease or purchase, as the case may be, of a reasonable number of the housing units covered by the investment. "§ 2876. Rental guarantees "The Secretary concerned may enter into agreements with private persons that acquire or construct military family housing units or military unaccompanied housing units under this subchapter in order to assure— "(1) the occupancy of such units at levels specified in the agreements; or
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