1. Short title This Act may be cited as the Veterans Service Organization Modernization Act of 2023 . 2. Competitive grants to veterans service organizations for facility rehabilitation and modernization (a) Grants Section 107 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5307 ) is amended by adding at the end the following new subsection: (g) Competitive grants to veterans service organizations for facility rehabilitation and upgrading technology (1) Authority; eligible activities and uses Using the amounts made available under section 106(a)(4) in each fiscal year for grants under this subsection, the Secretary shall make grants, on a competitive basis, to eligible veterans service organizations, which grant amounts shall be available for use only for— (A) repairs or rehabilitation of existing facilities of such organizations; and (B) modernization of technologies used by such organizations. (2) Eligible veterans service organizations For purposes of this subsection, the term eligible veterans service organization means— (A) an entity that— (i) is organized on a local or area basis; and (ii) is— (I) exempt from taxation pursuant to section 501(c)(19) of the Internal Revenue Code of 1986 ( 26 U.S.C. 501(c)(19) ); or (II) an organization of past or present members of the Armed Forces of the United States that is chartered under title 36, United States Code; and (B) a local or area chapter, post, or other unit of a national, regional, statewide, or other larger entity of which local or area chapters, posts, or units are members— (i) that is exempt from taxation pursuant to section 501(c)(19) of the Internal Revenue Code of 1986 ( 26 U.S.C. 501(c)(19) )