INCREASE IN SPECIALLY ADAPTED HOUSING BENEFITS FOR DISABLED VETERANS.

SEC. 2605. INCREASE IN SPECIALLY ADAPTED HOUSING BENEFITS FOR DISABLED VETERANS.(a) In General.—Section 2102 of title 38, United States Code, is amended—(1) in subsection (b)(2), by striking “$10,000” and inserting “$12,000”;(2) in subsection (d)—(A) in paragraph (1), by striking “$50,000” and inserting “$60,000”; and(B) in paragraph (2), by striking “$10,000” and inserting “$12,000”; and(3) by adding at the end the following new subsection:“(e)(1) Effective on October 1 of each year (beginning in 2009), the Secretary shall increase the amounts described in subsection (b)(2) and paragraphs (1) and (2) of subsection (d) in accordance with this subsection.“(2) The increase in amounts under paragraph (1) to take effect on October 1 of a year shall be by an amount of such amounts equal to the percentage by which—“(A) the residential home cost-of-construction index for the preceding calendar year, exceeds“(B) the residential home cost-of-construction index for the year preceding the year described in subparagraph (A).“(3) The Secretary shall establish a residential home cost-of-construction index for the purposes of this subsection. The index shall reflect a uniform, national average change in the cost of residential home construction, determined on a calendar year basis. The Secretary may use an index developed in the private sector that the Secretary determines is appropriate for purposes of this subsection.”.(b) Effective Date.—The amendments made by this section shall take effect on July 1, 2008, and shall apply with respect to payments made in accordance with section 2102 of title 38, United States Code, on or after that date.