Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 / Rules and Regulations 68975 

SUMMARY: The Commander, Eighth 

Coast Guard District, has issued a 

temporary deviation from the regulation 

governing the operation of the Rock 

Island Railroad and Highway 

Drawbridge across the Upper 

Mississippi River, mile 482.9, at Rock 

Island, Illinois. The deviation is 

necessary to allow the bridge owner 

time to perform preventive maintenance 

and critical repairs that are essential to 

the continued safe operation of the 

drawbridge. This deviation allows the 

bridge to be maintained in the closed to 

navigation position for fifty-six days. 

DATES: This deviation is effective from 

7:30 a.m., January 4, 2011 to 7:30 a.m. 

February 28, 2011. 

ADDRESSES: Documents mentioned in 

this preamble as being available in the 

docket are part of docket USCG–2010– 

0998 and are available online by going 

to http://www.regulations.gov, inserting 

USCG–2010–0998 in the ‘‘Keyword’’ box 

and then clicking ‘‘Search’’. They are 

also available for inspection or copying 

at the Docket Management Facility (M– 

30), U.S. Department of Transportation, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

e-mail Eric A. Washburn, Bridge 

Administrator, Coast Guard; telephone 

314–269–2378, e-mail 

Eric.Washburn@uscg.mil. If you have 

questions on viewing the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366– 

9826. 

SUPPLEMENTARY INFORMATION: The U.S. 

Army Rock Island Arsenal requested a 

temporary deviation for the Rock Island 

Railroad and Highway Drawbridge, 

across the Upper Mississippi River, mile 

482.9, at Rock Island, Illinois to remain 

in the closed to navigation position for 

56 days from 7:30 a.m., January 4, 2011 

to 7:30 a.m., February 28, 2011 to allow 

the bridge owner time for critical repairs 

and preventive maintenance. In order to 

perform extensive repairs and required 

annual maintenance, the bridge must be 

kept inoperative and in the closed to 

navigation position. The Rock Island 

Railroad and Highway Drawbridge 

currently operates in accordance with 

33 CFR 117.5, which states the general 

requirement that drawbridges shall open 

promptly and fully for the passage of 

vessels when a request to open is given 

in accordance with the subpart. 

There are no alternate routes for 

vessels transiting this section of the 

Upper Mississippi River. 

The Rock Island Railroad and 

Highway Drawbridge, in the closed-tonavigation position, provides a vertical 

clearance of 23.8 feet above normal 

pool. Navigation on the waterway 

consists primarily of commercial tows 

and recreational watercraft. The 

drawbridge will not be able to open for 

emergencies during the repair period. 

This temporary deviation has been 

coordinated with waterway users. No 

objections were received. 

In accordance with 33 CFR 117.35(e), 

the drawbridge must return to its regular 

operating schedule immediately at the 

end of the designated time period. This 

deviation from the operating regulations 

is authorized under 33 CFR 117.35. 

Dated: October 28, 2010. 

Eric A. Washburn, 

Bridge Administrator. 

[FR Doc. 2010–28326 Filed 11–9–10; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 62 

RIN 2900–AN53 

Supportive Services for Veteran 

Families Program 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) is amending its regulations 

to establish the Supportive Services for 

Veteran Families Program (SSVF 

Program). These amendments 

implement the provisions of section 604 

of the Veterans’ Mental Health and 

Other Care Improvements Act of 2008 

(Act). The purpose of the SSVF Program 

is to provide supportive services grants 

to private non-profit organizations and 

consumer cooperatives who will 

coordinate or provide supportive 

services to very low-income veteran 

families who are residing in permanent 

housing, are homeless and scheduled to 

become residents of permanent housing 

within a specified time period, or after 

exiting permanent housing, are seeking 

other housing that is responsive to such 

very low-income veteran family’s needs 

and preferences. The new SSVF 

Program is within the continuum of 

VA’s homeless services programs. 

DATES: This final rule is effective 

December 10, 2010. 

FOR FURTHER INFORMATION CONTACT: John 

Kuhn, National Center for Homelessness 

Among Veterans, Supportive Services 

for Veteran Families Program Office, 

4100 Chester Avenue, Suite 200, 

Philadelphia, PA 19104, (877) 737–0111 

(this is a toll-free number). 

SUPPLEMENTARY INFORMATION: In a 

document published in the Federal 

Register (75 FR 24514) on May 5, 2010, 

VA proposed to establish a new 38 CFR 

part 62 consisting of regulations 

captioned ‘‘SUPPORTIVE SERVICES 

FOR VETERAN FAMILIES PROGRAM’’ 

(referred to below as the proposed rule). 

This document adopts as a final rule, 

with changes discussed below, the 

proposed rule. This final rule 

establishes regulations concerning the 

SSVF Program and is necessary to 

implement section 604 of the Act, 

which is codified at 38 U.S.C. 2044. 

VA provided a 30-day comment 

period that ended on June 4, 2010. VA 

received four submissions during this 

comment period on the proposed rule. 

One submission consisted of an inquiry 

about the timing for the award of 

supportive services grants, but did not 

contain any substantive comments on 

the proposed rule. The subject matter of 

the other submissions can be grouped 

into several categories, and we have 

organized our discussion of the 

comments accordingly. 

Selecting Applicants To Receive 

Supportive Services Grants 

Two commenters provided 

recommendations regarding the scoring 

criteria used to rate applicants fulfilling 

the threshold requirements. Proposed 

§ 62.22 described the scoring criteria VA 

would use to score applicants fulfilling 

the threshold requirements. 

One commenter recommended that 

proposed § 62.22(b)(2), the scoring 

criterion regarding the applicant’s 

outreach and screening plan, include an 

examination of the thoroughness of 

coverage by using available data to 

estimate the total number of veterans 

who could be eligible for participation 

over the course of a year, and then to 

determine the percentage of veterans in 

the applicant’s area or community that 

will be contacted through outreach and 

screening. 

We agree that the estimated number of 

participants and percentage of very lowincome veterans served in an area or 

community should be considered when 

scoring the supportive services grant 

application; however, we think this can 

be better addressed through the scoring 

criterion relating to the need for 

program (§ 62.22(b)(1)) rather than the 

scoring criterion relating to the outreach 

and screening plan (§ 62.22(b)(2)). 

Section 62.20(a)(3) of the proposed rule 

stated that a complete supportive 

services grant application would 

include ‘‘an estimate with supporting 

documentation of the number of very 


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low-income veteran families occupying 

permanent housing who will be 

provided supportive services by the 

applicant and a description of the area 

or community where such very lowincome veteran families are located.’’ 

We added in § 62.20(a)(3) that the 

description of the area or community 

must include ‘‘an estimate of the total 

number of very low-income veteran 

families occupying permanent housing 

in such area or community.’’ In 

accordance with § 62.22(b)(1)(i), points 

will be awarded to an applicant who has 

shown ‘‘a need amongst very lowincome veteran families occupying 

permanent housing in the area or 

community where the program will be 

based.’’ To determine need, the 

applicant’s response to the information 

requested in § 62.20(a)(3) will be 

evaluated. 

One commenter stated that the 

proposed rule did not include a scoring 

criterion that would award points to 

proposals that work with harder to serve 

populations of chronically homeless 

veterans. The commenter recommended 

awarding additional points to applicants 

serving chronically homeless veterans. 

We agree that applicants should be 

rewarded for targeting those very lowincome veteran families most in need of 

supportive services. Therefore, we have 

amended the scoring criterion in 

§ 62.22(b)(2)(i) to include a reference to 

the identification and assistance of 

those ‘‘most in need of supportive 

services.’’ We decline to make further 

changes based on this comment because 

§ 62.22(b)(6) allows points to be 

awarded to applicants that meet VA’s 

requirements, goals and objectives of the 

SSVF Program as identified in the 

regulations and the Notice of Fund 

Availability. In the event that VA 

wishes to target certain populations, 

such as chronically homeless veterans, 

VA can highlight this in the Notice of 

Fund Availability and award points to 

applicants meeting the stated goal. In 

accordance with § 62.40(d) of the rule, 

VA may also include priorities for 

funding to meet the statutory mandates 

of the Act and VA goals for the SSVF 

Program in the Notice of Fund 

Availability. 

One commenter recommended that 

specific goals should be included in the 

scoring criterion regarding an 

applicant’s ‘‘clear, realistic, and 

measurable goals’’ set forth in proposed 

§ 62.22(c)(1). To more clearly specify the 

types of goals the applicant will receive 

points for describing, we have changed 

the criterion in § 62.22(c)(1) to describe 

‘‘clear, realistic, and measurable goals 

that reflect the Supportive Services for 

Veteran Families Program’s aim of 

reducing and preventing homelessness 

among very low-income veteran 

families.’’ 

Selecting Applicants To Receive 

Supportive Services Grants 

Consistent with the Act (38 U.S.C. 

2044(a)(4)), proposed § 62.23(d)(1) 

provided that VA would prefer 

applicants that provide, or coordinate 

the provision of, supportive services for 

very low-income veteran families 

transitioning from homelessness to 

permanent housing. One commenter 

stated that this preference is ‘‘extremely 

important’’ in order to ‘‘promote the 

efficiency of this program at reducing 

homelessness.’’ Because this preference 

is already included in § 62.23(d)(1) of 

the rule, no change is necessary based 

upon this comment. 

Scoring Criteria for Grantees Applying 

for Renewal of Supportive Services 

Grants 

Proposed § 62.24 described the 

scoring criteria VA would use to score 

grantees applying for renewal of a 

supportive services grant. Proposed 

§ 62.24(a) provided that up to 55 points 

would be awarded ‘‘based on the success 

of the grantee’s program’’ and listed 

certain criteria that would be used to 

determine the success of the grantee’s 

program. One commenter recommended 

that ‘‘[s]coring criteria should include 

success at reaching and serving veterans 

who are at greatest risk of homelessness 

or already homeless; and at reducing the 

number of homeless veterans in the 

service area.’’ We agree with the 

comment, and add as § 62.24(a)(iv) and 

§ 62.24(a)(v) of the rule the following 

scoring criteria: ‘‘The grantee prevented 

homelessness among very low-income 

veteran families occupying permanent 

housing that were most at risk of 

homelessness;’’ and, ‘‘The grantee’s 

program reduced homelessness among 

very low-income veteran families 

occupying permanent housing in the 

area or community served by the 

grantee.’’ 

Cost Sharing Requirement 

Pursuant to proposed § 62.26, grantees 

would be required to match a minimum 

of 10 percent of the amount of VAprovided supportive services grant 

funds with cash resources or third party 

in-kind contributions from non-VA 

sources. Under proposed § 62.22(d)(3), 

an applicant would be awarded points 

if the applicant exceeded the minimum 

cost sharing requirement up to a certain 

percentage as set forth in the Notice of 

Fund Availability. The cost sharing 

requirement was included in the 

proposed rule to demonstrate the 

applicant’s commitment to the SSVF 

Program and ensure continuity of 

program operations and assistance to 

participants. 

One commenter recommended 

removing the higher point threshold for 

the match in proposed § 62.22(d)(3) and 

including a waiver process that could 

allow communities suffering budgetary 

hardship to avoid the match 

requirement. Another commenter 

supported the matching requirement, 

however, this commenter indicated that 

it was an entity that received no 

government funding for its existing 

veteran homelessness programs. 

We agree that some eligible entities 

may find the match requirement to be so 

burdensome that the eligible entity will 

decide not to apply for the supportive 

services grant or will incur a large 

administrative burden to justify in-kind 

consideration valuing 10 percent of the 

supportive services grant request. 

Because VA’s goals for the cost sharing 

requirement can be met through other 

means during the supportive services 

grant application scoring process, 

imposing a formal percentage 

requirement is unnecessary. For 

example, it is likely that applicants that 

would have provided a match would 

also score well in the categories of 

financial capability and plan (see 

§ 62.22(d)) and community linkages (see 

§ 62.22(e)). Therefore, we have 

eliminated all references to the cost 

sharing requirement. 

Supportive Service: Direct Provision of 

Case Management and Other Services 

Proposed § 62.31 described a listing of 

baseline tasks that would fall within the 

supportive service of ‘‘case 

management.’’ One commenter 

recommended that case management 

should be defined to include the 

services listed under ‘‘housing 

counseling’’ in proposed § 62.33(i). The 

commenter was under the impression 

that under the proposed rule, grantees 

could only provide referrals for housing 

counseling, but could not directly 

provide housing counseling services to 

participants. 

We agree that housing counseling will 

be a critical part of a grantee’s 

supportive services program and 

recognize that a grantee may wish to 

provide this service directly to 

participants, rather than through a 

referral. We have changed the 

introduction to § 62.33 to clarify that 

grantees may elect to directly provide to 

participants the public benefits listed in 

§ 62.33(c) through § 62.33(i), which 

include housing counseling. 

Alternatively, grantees may elect to 

provide a referral for participants to 


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obtain these public benefits through 

another entity. Section 62.33 of the rule 

gives the grantee the flexibility to 

determine which of certain listed public 

benefits, including housing counseling, 

the grantee will provide and which will 

be accomplished through referrals. 

Housing counseling remains in § 62.33 

to be consistent with our interpretation 

of the supportive services structure 

outlined in the Act (38 U.S.C. 

2044(b)(1)(D)). 

As discussed above, we have changed 

the introduction to § 62.33 to clarify that 

grantees may elect to directly provide to 

participants the public benefits listed in 

§ 62.33(c) through § 62.33(i). As stated 

in the proposed rule, although grantees 

may be able to directly provide many 

necessary supportive services, in some 

situations it would be more efficient for 

grantees to provide a referral for 

participants to obtain services provided 

by another Federal, State, or local 

agency or an eligible entity in the area 

or community served by the grantee. 

The proposed rule specified that health 

care services and daily living services 

could be accomplished through 

referrals; therefore, the final rule 

clarifies that these supportive services 

listed in § 62.33(a) and § 62.33(b) cannot 

be provided directly to participants. 

Supportive Service: Assistance in 

Obtaining and Coordinating Other 

Public Benefits 

One commenter provided 

recommendations relating to the 

transportation and child care provisions 

in proposed § 62.33. Proposed § 62.33 

described the supportive service of 

assistance in obtaining and coordinating 

other public benefits. 

Proposed § 62.33(d) authorized the 

grantee to provide temporary 

transportation services to participants if 

the grantee determined that such 

assistance was necessary. Specifically, 

§ 62.33(d) described the provision of 

tokens, vouchers, or other appropriate 

instruments for use on public 

transportation as the preferred method 

of providing transportation services, but 

also would allow the cost of vehicle 

leases to be included in a supportive 

services grant application if an 

applicant determines that public 

transportation options are not sufficient 

within the area or community to be 

served. The commenter stated that ‘‘in 

more rural settings[,] excluding car 

repair could be prohibitive for program 

participants.’’ 

We agree with the comment. We have 

added § 62.33(d)(3), which authorizes 

grantees to provide assistance to a 

participant needing car repairs or 

maintenance in an amount not to exceed 

$1,000 during a 3-year period. Any 

payments for car repairs or maintenance 

must be required to operate the vehicle, 

be reasonable, be paid directly to the 

third party repairing the car, and 

directly allow the participant to remain 

in permanent housing or obtain 

permanent housing. The $1,000 cap per 

participant is included so that payments 

for car repairs and maintenance do not 

consume a disproportionate amount of 

supportive services grant funds. 

One commenter recommended 

removing the requirement in § 62.33(h) 

that a facility providing child care 

services pursuant to payments from the 

grantee be State-licensed because ‘‘home 

run daycare and other alternatives might 

be just as sufficient in many 

communities.’’ 

For safety reasons, we do not think 

that all licensing standards regarding 

child care providers should be removed; 

however, we agree that it would be 

beneficial to broaden the entities that 

would qualify as eligible child care 

providers. Accordingly, a definition of 

eligible child care provider is included 

in § 62.2 of the rule that is consistent 

with the broader definition used by the 

Department of Health and Human 

Services (HHS) for their Child Care and 

Development Block grant (42 U.S.C. 

9859(2)). Recipients of supportive 

services grant funds for child care may 

also be recipients of funds under HHS 

grant programs, so it will be helpful to 

use a definition consistent with that 

used by HHS. The broader HHS 

definition includes child care providers 

that are ‘‘licensed, regulated, registered, 

or otherwise legally operating, under 

state and local law,’’ which, in some 

jurisdictions, may include home run 

daycares. 

The commenter also requested that 

VA consider removing the 2-month per 

calendar year limit on child care 

services payments by grantees under 

§ 62.33(h) to allow grantees to determine 

and prioritize need within their 

jurisdiction. Although we agree that it is 

important to allow grantees to use some 

discretion in determining how 

supportive services grant funds should 

be expended, we also believe it is 

necessary to limit the duration of child 

care service expenditures in order to 

prevent child care services from 

consuming a disproportionate amount 

of supportive services grant funds. 

However, in response to the comment, 

we agree that 2 months may not be long 

enough to identify and obtain other 

assistance; hence, we have extended the 

time limitation in § 62.33(h)(2)(i) from 2 

months during a calendar year to 4 

months in any 12-month period 

beginning on the date that the grantee 

first pays for child care assistance. 

‘‘Calendar year’’ is changed to ‘‘12-month 

period’’ to more accurately reflect VA’s 

intention for the limitation, which is 

that the assistance be both short-term 

and temporary, not that it only be 

provided for a short time during a 

particular calendar year. 

Other Supportive Services 

Two commenters recommended that a 

longer time period be authorized for 

rental assistance. Proposed § 62.34(a) 

authorized the payment of rental 

assistance on behalf of a participant for 

a maximum of 4 months during a 3-year 

period, with no more than 2 months of 

assistance in any calendar year. One 

commenter explained that some 

grantees may provide more shallow 

subsidies to participants for a longer 

period of time if need be. Another 

commenter recommended flexibility in 

the area of rental subsidies and reliance 

on outcome measures to provide 

incentives to grantees to avoid 

overspending on rental assistance. 

We agree with the suggestion to 

authorize a longer period of rental 

assistance, with the expectation that 

grantees will exercise discretion and 

only provide the amount of rental 

assistance that is necessary for a 

participant to obtain or remain in 

permanent housing. Hence, we have 

extended the amount of time a 

participant can receive rental assistance 

to 8 months during a 3-year period, with 

no more than 5 months of assistance 

during any 12-month period. ‘‘Calendar 

year’’ is changed to ‘‘12-month period’’ to 

more accurately reflect VA’s intention 

for the limitation, which is that the 

assistance be both short-term and 

temporary, not that it only be provided 

for a short time during a particular 

calendar year. We have similarly 

changed the ‘‘calendar year’’ limitation 

in § 62.34(b)(1) on temporary financial 

assistance for utility-fee payment 

assistance to a ‘‘12-month period.’’ 

One commenter suggested that the 

duration limitation on the provision of 

rental assistance could be mitigated by 

increasing the funding flexibility of 

other VA programs. We do not respond 

to these comments in this notice as they 

are beyond the scope of this rulemaking. 

Section 62.34(e) authorizes a grantee 

to purchase emergency supplies for a 

participant on a temporary basis. 

Section 62.2 defines ‘‘emergency 

supplies’’ as ‘‘items necessary for a 

participant’s life or safety that are 

provided in order to address the 

participant’s emergency situation.’’ One 

commenter recommended providing a 

more detailed definition of emergency 

supplies, and specifying their allowed 


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use. The commenter explained, 

‘‘Leaving it as broad as it is currently 

stated leaves room for potential abuse 

and waste of limited program dollars.’’ 

We have not further defined 

emergency supplies or prescribed their 

allowed use based on the comment. 

Instead of providing an itemized list of 

acceptable items in the rule, we expect 

this to be determined by grantees on a 

case-by-case basis in accordance with 

the parameters provided in § 62.2, 

which are that the items be ‘‘necessary 

for a participant’s life or safety’’ and 

provided ‘‘on a temporary basis in order 

to address [an] emergency situation.’’ 

However, we share the commenter’s 

concern about potential abuse of limited 

program dollars; therefore, to ensure 

that a disproportionate amount of funds 

are not spent on emergency supplies, we 

added a cap of $500 per participant 

during a 3-year period in § 62.34(e)(1). 

This same commenter recommended 

imposing a budgetary cap for all 

services paid for by a grantee under 

§ 62.33. We decline to make any 

changes based on this comment aside 

from the $500 cap per participant for 

emergency services as discussed above. 

Through the programmatic oversight 

provisions and reporting requirements, 

and the enforcement provisions in 

§ 62.80, VA expects to be able to 

identify and address any inappropriate 

activities of the grantee. 

This commenter also recommended 

that, ‘‘There should be language 

instituted in the Final Rule to prevent 

any grantee paying monies back to 

themselves for activities that could not 

be viewed as direct services to the 

client.’’ We interpret this comment as 

recommending that grantees be 

prohibited from providing rental 

assistance on behalf of a participant if 

the grantee is also the participant’s 

landlord. 

We made no changes based on this 

comment. Including such a change 

would unnecessarily penalize grantees 

who also serve as owners or managers 

of units occupied by very low-income 

veteran families. If the payment of 

supportive services grant funds to a 

grantee on behalf of a participant for 

rental assistance would be appropriate, 

reasonable, and meets the requirements 

set forth in the rule, a grantee should be 

able to make such a payment on behalf 

of a participant. Through the 

programmatic oversight provisions and 

reporting requirements, and the 

enforcement provisions in § 62.80, VA 

expects to be able to identify and 

address any inappropriate activities of 

the grantee. 

The proposed rule included a 

condition that grantees providing 

temporary financial assistance would be 

required to help the participant develop 

a reasonable plan to address the 

participant’s ability to pay for the item 

for which assistance is being provided 

(i.e. child care, rent, utilities, utilities or 

security deposits, and moving costs) and 

assist the participant to implement such 

plan. One commenter explained that 

‘‘[t]he experience of effective 

prevention/re-housing programs 

indicates that this provision is 

important but needs to go further,’’ 

stating that ‘‘[t]he rule should allow and 

encourage grantees to continue to work 

to provide social services to the 

veterans, to not only make a plan but 

also to implement it, through 

coordination with employment services, 

benefits and other help that is offered by 

the VA and other providers.’’ 

We agree. In §§ 62.33(h)(2)(iv) and 

62.34, where a plan is required, we have 

added the following additional 

requirement: ‘‘Grantees must assist the 

participant to implement such plan by 

providing any necessary assistance or 

helping the participant to obtain any 

necessary public or private benefits or 

services.’’ 

Another commenter supported the 

idea of plans to address participants’ 

housing stability, but stated that ‘‘the 

grantee cannot be held accountable for 

ensuring that 100% of the veterans 

served by their SSVF project will carry 

out their case management plans * * *’’ 

VA will consider the factors included in 

§ 62.25 when determining whether to 

renew supportive services grants. None 

of these factors contains a requirement 

for a ‘‘100%’’ success rate for 

implementation of plans prepared to 

address participants’ housing stability. 

Therefore, we make no changes based 

on this comment. 

General Operational Requirements 

One commenter stated that the 

proposed rule did not require grantees 

to execute an agreement with a 

participant or provide a summary of the 

grantee’s supportive services grant 

program to a participant. The 

commenter recommended that, ‘‘A 

simple one-two page participant 

agreement providing an overview of the 

program and the benefits of program 

participation should be included for all 

program participants to ensure they are 

aware of the rules and restrictions of the 

program as well as the eligible uses of 

funds.’’ 

We agree. Providing potential 

participants with information on the 

grantee’s supportive services grant 

program and any requirements 

necessary to receive supportive services 

would be beneficial to the participant. 

Therefore, a requirement for grantees to 

notify participants of basic information 

about the grantee’s supportive services 

program and any conditions for the 

receipt of supportive services is added 

to § 62.36(c)(1). 

Program Changes 

One commenter recommended that 

the rule also require grantees to notify 

VA of changes to key personnel during 

the grant term. We agree. Proposed 

§ 62.60 identified certain program 

changes about which the grantee would 

be required to notify VA. Section 62.60 

is intended to help VA maintain 

oversight over the quality of the 

supportive services provided by 

grantees and prevent misuse of grant 

funds. Changes in key personnel may 

directly impact a grantee’s supportive 

services grant program. Accordingly, we 

have added § 62.60(c), which requires 

grantees to inform VA in writing of key 

personnel changes within 30 days of the 

change. For similar reasons, § 62.60(c) 

also requires grantees to notify VA if the 

grantee changes its address. 

Financial Management and 

Administrative Costs 

Proposed § 62.70 required grantees to 

comply with certain Office of 

Management and Budget (OMB) 

requirements and certain VA standards 

for financial management for grants and 

agreements. One commenter 

recommended simplifying this section. 

We agree, and therefore a streamlined 

version of this section is included in the 

rule. In addition, to be more specific, 

rather than referring to the ‘‘applicable 

requirements of the appropriate OMB 

Circulars for Cost Principles,’’ § 62.70(b) 

of the rule specifies that grantees must 

comply with the requirements set forth 

in OMB Circular A–110, Subpart C, 

Section 21, codified at 2 CFR 215.21; 38 

CFR 49.21. 

Paperwork Reduction Act 

OMB assigns a control number for 

each collection of information it 

approves. Except for emergency 

approvals under 44 U.S.C. 3507(j), VA 

may not conduct or sponsor, and a 

person is not required to respond to, a 

collection of information unless it 

displays a currently valid OMB control 

number. 

In the proposed rule, we stated that 

proposed §§ 62.20, 62.36(c), 62.60, and 

62.71 contain collection of information 

provisions under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501– 

3521), and that we had requested public 

comment on those provisions in the 

notice published in the Federal Register 

on May 5, 2010 (75 FR 24523–24524). 


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We did not receive any comments on 

the proposed collection of information 

which is pending at OMB for approval. 

Executive Order 12866 

Executive Order 12866 directs 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

when regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety, and other advantages; 

distributive impacts; and equity). The 

Executive Order classifies a ‘‘significant 

regulatory action,’’ requiring review by 

OMB unless OMB waives such a review, 

as any regulatory action that is likely to 

result in a rule that may: (1) Have an 

annual effect on the economy of $100 

million or more, or adversely affect in 

a material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) create 

a serious inconsistency or otherwise 

interfere with an action planned or 

taken by another agency; (3) materially 

alter the budgetary impact of 

entitlements, grants, user fees or loan 

programs or the rights and obligations of 

recipients thereof; or (4) raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The economic, interagency, 

budgetary, legal, and policy 

implications of this rule have been 

examined and it has been determined to 

be a significant regulatory action under 

Executive Order 12866 because it may 

result in a rule that raises novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this final rule would not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

Flexibility Act, 5 U.S.C. 601 et seq. This 

final rule would only impact those 

entities that choose to participate in the 

SSVF Program. Small entity applicants 

will not be affected to a greater extent 

than large entity applicants. Small 

entities must elect to participate, and it 

is considered a benefit to those who 

choose to apply. To the extent this final 

rule would have any impact on small 

entities, it would not have an impact on 

a substantial number of small entities. 

Therefore, pursuant to 5 U.S.C. 605(b), 

this final rule is exempt from the initial 

and final regulatory flexibility analysis 

requirement of sections 603 and 604. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

requires, at 2 U.S.C. 1532, that agencies 

prepare an assessment of anticipated 

costs and benefits before issuing any 

rule that may result in an expenditure 

by State, local, or tribal governments, in 

the aggregate, or by the private sector of 

$100 million or more (adjusted annually 

for inflation) in any one year. This final 

rule would have no such effect on State, 

local, or tribal governments, or on the 

private sector. 

Catalog of Federal Domestic Assistance 

Program 

There is no Catalog of Federal 

Domestic Assistance program number 

and title for the program in this final 

rule. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, approved this document and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. John 

R. Gingrich, Chief of Staff, Department 

of Veterans Affairs, approved this 

document on September 10, 2010, for 

publication. 

List of Subjects in 38 CFR Part 62 

Administrative practice and 

procedure, Day care, Disability benefits, 

Government contracts, Grant 

programs—health, Grant programs— 

social services, Grant programs— 

transportation, Grant programs— 

veterans, Grants—housing and 

community development, Health care, 

Homeless, Housing, Housing assistance 

payments, Indians—lands, Individuals 

with disabilities, Low and moderate 

income housing, Manpower training 

program, Medicare, Medicaid, Public 

assistance programs, Public housing, 

Relocation assistance, Rent subsidies, 

Reporting and recordkeeping 

requirements, Rural areas, Social 

security, Supplemental security income 

(SSI), Travel and transportation 

expenses, Unemployment 

compensation, Veterans. 

Dated: November 5, 2010. 

William F. Russo, 

Director, Regulations Management, Office of 

General Counsel, Department of Veterans 

Affairs. 

■ For the reasons stated in the preamble, 

VA amends 38 CFR chapter I by adding 

part 62 to read as follows: 

PART 62—SUPPORTIVE SERVICES 

FOR VETERAN FAMILIES PROGRAM 

Sec. 

62.1 Purpose. 

62.2 Definitions. 

62.10 Supportive services grants—general. 

62.11 Participants—occupying permanent 

housing. 

62.20 Applications for supportive services 

grants. 

62.21 Threshold requirements prior to 

scoring supportive services grant 

applicants. 

62.22 Scoring criteria for supportive 

services grant applicants. 

62.23 Selecting applicants to receive 

supportive services grants. 

62.24 Scoring criteria for grantees applying 

for renewal of supportive services grants. 

62.25 Selecting grantees for renewal of 

supportive services grants. 

62.30 Supportive service: Outreach 

services. 

62.31 Supportive service: Case management 

services. 

62.32 Supportive service: Assistance in 

obtaining VA benefits. 

62.33 Supportive service: Assistance in 

obtaining and coordinating other public 

benefits. 

62.34 Other supportive services. 

62.35 Limitations on and continuations of 

the provision of supportive services to 

certain participants. 

62.36 General operation requirements. 

62.37 Fee prohibition. 

62.40 Notice of Fund Availability. 

62.50 Supportive services grant agreements. 

62.51 Payments under the supportive 

services grant. 

62.60 Program or budget changes and 

corrective action plans. 

62.61 Procedural error. 

62.62 Religious organizations. 

62.63 Visits to monitor operations and 

compliance. 

62.70 Financial management and 

administrative costs. 

62.71 Grantee reporting requirements. 

62.72 Recordkeeping. 

62.73 Technical assistance. 

62.80 Withholding, suspension, 

deobligation, termination, and recovery 

of funds by VA. 

62.81 Supportive services grant closeout 

procedures. 

(Authority: 38 U.S.C. 501, 2044, and as noted 

in specific sections) 

§ 62.1 Purpose. 

This part implements the Supportive 

Services for Veteran Families Program, 

which provides supportive services 

grants to eligible entities to facilitate the 

provision of supportive services to very 

low-income veteran families who are 

occupying permanent housing. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.2 Definitions. 

For purposes of this part and any 

Notice of Fund Availability issued 

under this part: 


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Applicant means an eligible entity 

that submits an application for a 

supportive services grant announced in 

a Notice of Fund Availability. 

Area or community means a political 

subdivision or contiguous political 

subdivisions (such as a precinct, ward, 

borough, city, county, State, 

Congressional district or tribal 

reservation) with an identifiable 

population of very low-income veteran 

families. 

Consumer cooperative has the 

meaning given such term in section 202 

of the Housing Act of 1959 (12 U.S.C. 

1701q). 

Date of completion means the earliest 

of the following dates: 

(1) The date on which all required 

work is completed; 

(2) The date specified in the 

supportive services grant agreement, or 

any supplement or amendment thereto; 

or 

(3) The effective date of a supportive 

services grant termination under 

§ 62.80(c). 

Disallowed costs means costs charged 

by a grantee that VA determines to be 

unallowable based on applicable 

Federal cost principles, or based on this 

part or the supportive services grant 

agreement. 

Eligible child care provider means a 

provider of child care services for 

compensation, including a provider of 

care for a school-age child during nonschool hours, that— 

(1) Is licensed, regulated, registered, 

or otherwise legally operating, under 

state and local law; and 

(2) Satisfies the state and local 

requirements, applicable to the child 

care services the provider provides. 

Eligible entity means a: 

(1) Private non-profit organization, or 

(2) Consumer cooperative. 

Emergency supplies means items 

necessary for a participant’s life or 

safety that are provided to the 

participant by a grantee on a temporary 

basis in order to address the 

participant’s emergency situation. 

Grantee means an eligible entity that 

is awarded a supportive services grant 

under this part. 

Homeless has the meaning given that 

term in section 103 of the McKinneyVento Homeless Assistance Act (42 

U.S.C. 11302). 

Notice of Fund Availability means a 

Notice of Fund Availability published 

in the Federal Register in accordance 

with § 62.40. 

Occupying permanent housing means 

meeting any of the conditions set forth 

in § 62.11(a). 

Participant means a very low-income 

veteran family occupying permanent 

housing who is receiving supportive 

services from a grantee. 

Permanent housing means 

community-based housing without a 

designated length of stay. Examples of 

permanent housing include, but are not 

limited to, a house or apartment with a 

month-to-month or annual lease term or 

home ownership. 

Private non-profit organization means 

any of the following: 

(1) An incorporated private institution 

or foundation that: 

(i) Has no part of the net earnings that 

inure to the benefit of any member, 

founder, contributor, or individual; 

(ii) Has a governing board that is 

responsible for the operation of the 

supportive services provided under this 

part; and 

(iii) Is approved by VA as to financial 

responsibility. 

(2) A for-profit limited partnership, 

the sole general partner of which is an 

organization meeting the requirements 

of paragraphs (1)(i), (ii) and (iii) of this 

definition. 

(3) A corporation wholly owned and 

controlled by an organization meeting 

the requirements of paragraphs (1)(i), 

(ii), and (iii) of this definition. 

(4) A tribally designated housing 

entity (as defined in section 4 of the 

Native American Housing Assistance 

and Self-Determination Act of 1996 (25 

U.S.C. 4103)). 

State means any of the several States 

of the United States, the District of 

Columbia, the Commonwealth of Puerto 

Rico, any territory or possession of the 

United States, or any agency or 

instrumentality of a State exclusive of 

local governments. The term does not 

include any public and Indian housing 

agency under the United States Housing 

Act of 1937. 

Subcontractor means any third party 

contractor, of any tier, working directly 

for an eligible entity. 

Supportive services means any of the 

following provided to address the needs 

of a participant: 

(1) Outreach services as specified 

under § 62.30. 

(2) Case management services as 

specified under § 62.31. 

(3) Assisting participants in obtaining 

VA benefits as specified under § 62.32. 

(4) Assisting participants in obtaining 

and coordinating other public benefits 

as specified under § 62.33. 

(5) Other services as specified under 

§ 62.34. 

Supportive services grant means a 

grant awarded under this part. 

Supportive services grant agreement 

means the agreement executed between 

VA and a grantee as specified under 

§ 62.50. 

Suspension means an action by VA 

that temporarily withdraws VA funding 

under a supportive services grant, 

pending corrective action by the grantee 

or pending a decision to terminate the 

supportive services grant by VA. 

Suspension of a supportive services 

grant is a separate action from 

suspension under VA regulations 

implementing Executive Orders 12549 

and 12689, ‘‘Debarment and 

Suspension.’’ 

VA means the Department of Veterans 

Affairs. 

Very low-income veteran family 

means a veteran family whose annual 

income, as determined in accordance 

with 24 CFR 5.609, does not exceed 50 

percent of the median income for an 

area or community, as will be adjusted 

by VA based on family size and as may 

be adjusted and announced by VA in 

the Notice of Fund Availability based on 

residency within an area with unusually 

high or low construction costs, fair 

market rents (as determined under 

section 8 of the United States Housing 

Act of 1937 (42 U.S.C. 1437f)), or family 

incomes. Unless VA announces 

otherwise in the Notice of Fund 

Availability, the median income for an 

area or community will be determined 

using the income limits most recently 

published by the Department of Housing 

and Urban Development for programs 

under section 8 of the United States 

Housing Act of 1937 (42 U.S.C. 1437f). 

Veteran means a person who served 

in the active military, naval, or air 

service, and who was discharged or 

released therefrom under conditions 

other than dishonorable. 

Veteran family means a veteran who 

is a single person or a family in which 

the head of household, or the spouse of 

the head of household, is a veteran. 

Withholding means that payment of a 

supportive services grant will not be 

paid until such time as VA determines 

that the grantee provides sufficiently 

adequate documentation and/or actions 

to correct a deficiency for the supportive 

services grant. Costs for supportive 

services provided by grantees under the 

supportive services grant from the date 

of the withholding letter would be 

reimbursed only if the grantee is able to 

submit the documentation or actions 

that the deficiency has been corrected to 

the satisfaction of VA. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.10 Supportive services grants— 

general. 

(a) VA provides supportive services 

grants to eligible entities as described in 

this part. 

(b) Grantees must use at least 90 

percent of supportive services grant 


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funds to provide and coordinate the 

provision of supportive services to very 

low-income veteran families who are 

occupying permanent housing. 

(c) Grantees may use up to 10 percent 

of supportive services grant funds for 

administrative costs identified in 

§ 62.70. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.11 Participants—occupying 

permanent housing. 

(a) Occupying permanent housing. A 

very low-income veteran family will be 

considered to be occupying permanent 

housing if the very low-income veteran 

family: 

(1) Is residing in permanent housing; 

(2) Is homeless and scheduled to 

become a resident of permanent housing 

within 90 days pending the location or 

development of housing suitable for 

permanent housing; or 

(3) Has exited permanent housing 

within the previous 90 days to seek 

other housing that is responsive to the 

very low-income veteran family’s needs 

and preferences. 

Note to paragraph (a): For limitations on 

and continuations of the provision of 

supportive services to participants classified 

under paragraphs (a)(2) and (a)(3) of this 

section, see § 62.35. 

(b) Changes to a participant’s 

classification for occupying permanent 

housing. If a participant’s classification 

for occupying permanent housing 

changes while the participant is 

receiving supportive services from a 

grantee, the participant may be 

reclassified under the categories set 

forth in paragraph (a) of this section. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.20 Applications for supportive 

services grants. 

(a) To apply for a supportive services 

grant, an applicant must submit to VA 

a complete supportive services grant 

application package, as described in the 

Notice of Fund Availability. A complete 

supportive services grant application 

package includes the following: 

(1) A description of the supportive 

services to be provided by the applicant 

and the identified need for such 

supportive services among very lowincome veteran families; 

(2) A description of the characteristics 

of very low-income veteran families 

occupying permanent housing who will 

be provided supportive services by the 

applicant; 

(3) An estimate with supporting 

documentation of the number of very 

low-income veteran families occupying 

permanent housing who will be 

provided supportive services by the 

applicant and a description of the area 

or community where such very lowincome veteran families are located, 

including an estimate of the total 

number of very low-income veteran 

families occupying permanent housing 

in such area or community; 

(4) Documentation evidencing the 

experience of the applicant and any 

identified subcontractors in providing 

supportive services to very low-income 

veteran families and very low-income 

families; 

(5) Documentation relating to the 

applicant’s ability to coordinate with 

any identified subcontractors; 

(6) Documentation of the managerial 

capacity of the applicant to: 

(i) Coordinate the provision of 

supportive services with the provision 

of permanent housing by the applicant 

or by other organizations; 

(ii) Assess continuously the needs of 

participants for supportive services; 

(iii) Coordinate the provision of 

supportive services with services 

provided by VA; 

(iv) Customize supportive services to 

the needs of participants; 

(v) Continuously seek new sources of 

assistance to ensure the long-term 

provision of supportive services to very 

low-income veteran families occupying 

permanent housing; 

(vi) Comply with and implement the 

requirements of this part throughout the 

term of the supportive services grant; 

and 

(7) Any additional information as 

deemed appropriate by VA. 

(b) Grantees may submit an 

application for renewal of a supportive 

services grant if the grantee’s program 

will remain substantially the same. To 

apply for renewal of a supportive 

services grant, a grantee must submit to 

VA a complete supportive services grant 

renewal application package, as 

described in the Notice of Fund 

Availability. 

(c) VA may request in writing that an 

applicant or grantee, as applicable, 

submit other information or 

documentation relevant to the 

supportive services grant application. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.21 Threshold requirements prior to 

scoring supportive services grant 

applicants. 

VA will only score applicants that 

meet the following threshold 

requirements: 

(a) The application is filed within the 

time period established in the Notice of 

Fund Availability, and any additional 

information or documentation requested 

by VA under § 62.20(c) is provided 

within the time frame established by 

VA; 

(b) The application is completed in all 

parts; 

(c) The applicant is an eligible entity; 

(d) The activities for which the 

supportive services grant is requested 

are eligible for funding under this part; 

(e) The applicant’s proposed 

participants are eligible to receive 

supportive services under this part; 

(f) The applicant agrees to comply 

with the requirements of this part; 

(g) The applicant does not have an 

outstanding obligation to the Federal 

government that is in arrears and does 

not have an overdue or unsatisfactory 

response to an audit; and 

(h) The applicant is not in default by 

failing to meet the requirements for any 

previous Federal assistance. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.22 Scoring criteria for supportive 

services grant applicants. 

VA will use the following criteria to 

score applicants who are applying for a 

supportive services grant: 

(a) VA will award up to 35 points 

based on the background, qualifications, 

experience, and past performance, of the 

applicant, and any subcontractors 

identified by the applicant in the 

supportive services grant application, as 

demonstrated by the following: 

(1) Background and organizational 

history. (i) Applicant’s, and any 

identified subcontractors’, background 

and organizational history are relevant 

to the program. 

(ii) Applicant, and any identified 

subcontractors, maintain organizational 

structures with clear lines of reporting 

and defined responsibilities. 

(iii) Applicant, and any identified 

subcontractors, have a history of 

complying with agreements and not 

defaulting on financial obligations. 

(2) Staff qualifications. (i) Applicant’s 

staff, and any identified subcontractors’ 

staff, have experience working with very 

low-income families. 

(ii) Applicant’s staff, and any 

identified subcontractors’ staff, have 

experience administering programs 

similar to the Supportive Services for 

Veteran Families Program. 

(3) Organizational qualifications and 

past performance. (i) Applicant, and 

any identified subcontractors, have 

organizational experience providing 

supportive services to very low-income 

families. 

(ii) Applicant, and any identified 

subcontractors, have organizational 

experience coordinating services for 

very low-income families among 

multiple organizations, Federal, State, 

local and tribal governmental entities. 


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(iii) Applicant, and any identified 

subcontractors, have organizational 

experience administering a program 

similar in type and scale to the 

Supportive Services for Veteran 

Families Program to very low-income 

families. 

(4) Experience working with veterans. 

(i) Applicant’s staff, and any identified 

subcontractors’ staff, have experience 

working with veterans. 

(ii) Applicant, and any identified 

subcontractors, have organizational 

experience providing supportive 

services to veterans. 

(iii) Applicant, and any identified 

subcontractors, have organizational 

experience coordinating services for 

veterans among multiple organizations, 

Federal, State, local and tribal 

governmental entities. 

(b) VA will award up to 25 points 

based on the applicant’s program 

concept and supportive services plan, as 

demonstrated by the following: 

(1) Need for program. (i) Applicant 

has shown a need amongst very lowincome veteran families occupying 

permanent housing in the area or 

community where the program will be 

based. 

(ii) Applicant understands the unique 

needs for supportive services of very 

low-income veteran families. 

(2) Outreach and screening plan. (i) 

Applicant has a feasible outreach and 

referral plan to identify and assist very 

low-income veteran families occupying 

permanent housing that may be eligible 

for supportive services and are most in 

need of supportive services. 

(ii) Applicant has a plan to process 

and receive participant referrals. 

(iii) Applicant has a plan to assess 

and accommodate the needs of 

incoming participants. 

(3) Program concept. (i) Applicant’s 

program concept, size, scope, and 

staffing plan are feasible. 

(ii) Applicant’s program is designed to 

meet the needs of very low-income 

veteran families occupying permanent 

housing. 

(4) Program implementation timeline. 

(i) Applicant’s program will be 

implemented in a timely manner and 

supportive services will be delivered to 

participants as quickly as possible and 

within a specified timeline. 

(ii) Applicant has a hiring plan in 

place to meet the applicant’s program 

timeline or has existing staff to meet 

such timeline. 

(5) Collaboration and communication 

with VA. Applicant has a plan to 

coordinate outreach and services with 

local VA facilities. 

(6) Ability to meet VA’s requirements, 

goals and objectives for the Supportive 

Services for Veteran Families Program. 

Applicant is committed to ensuring that 

its program meets VA’s requirements, 

goals and objectives for the Supportive 

Services for Veteran Families Program 

as identified in this part and the Notice 

of Fund Availability. 

(7) Capacity to undertake program. 

Applicant has sufficient capacity, 

including staff resources, to undertake 

the program. 

(c) VA will award up to 15 points 

based on the applicant’s quality 

assurance and evaluation plan, as 

demonstrated by the following: 

(1) Program evaluation. (i) Applicant 

has created clear, realistic, and 

measurable goals that reflect the 

Supportive Services for Veteran 

Families Program’s aim of reducing and 

preventing homelessness among very 

low-income veteran families against 

which the applicant’s program 

performance can be evaluated. 

(ii) Applicant plans to continually 

assess the program. 

(2) Monitoring. (i) Applicant has 

adequate controls in place to regularly 

monitor the program, including any 

subcontractors, for compliance with all 

applicable laws, regulations, and 

guidelines. 

(ii) Applicant has adequate financial 

and operational controls in place to 

ensure the proper use of supportive 

services grant funds. 

(iii) Applicant has a plan for ensuring 

that the applicant’s staff and any 

subcontractors are appropriately trained 

and stays informed of industry trends 

and the requirements of this part. 

(3) Remediation. Applicant has a plan 

to establish a system to remediate noncompliant aspects of the program if and 

when they are identified. 

(4) Management and reporting. 

Applicant’s program management team 

has the capability and a system in place 

to provide to VA timely and accurate 

reports at the frequency set by VA. 

(d) VA will award up to 15 points 

based on the applicant’s financial 

capability and plan, as demonstrated by 

the following: 

(1) Organizational finances. 

Applicant, and any identified 

subcontractors, are financially stable. 

(2) Financial feasibility of program. (i) 

Applicant has a realistic plan for 

obtaining all funding required to operate 

the program for the time period of the 

supportive services grant. 

(ii) Applicant’s program is costeffective and can be effectively 

implemented on-budget. 

(e) VA will award up to 10 points 

based on the applicant’s area or 

community linkages and relations, as 

demonstrated by the following: 

(1) Area or community linkages. 

Applicant has a plan for developing or 

has existing linkages with Federal 

(including VA), State, local, and tribal 

government agencies, and private 

entities for the purposes of providing 

additional services to participants. 

(2) Past working relationships. 

Applicant (or applicant’s staff), and any 

identified subcontractors (or 

subcontractors’ staff), have fostered 

successful working relationships and 

linkages with public and private 

organizations providing services to 

veterans or very low-income families in 

need of services similar to the 

supportive services. 

(3) Local presence and knowledge. (i) 

Applicant has a presence in the area or 

community to be served by the 

applicant. 

(ii) Applicant understands the 

dynamics of the area or community to 

be served by the applicant. 

(4) Integration of linkages and 

program concept. Applicant’s linkages 

to the area or community to be served 

by the applicant enhance the 

effectiveness of the applicant’s program. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.23 Selecting applicants to receive 

supportive services grants. 

VA will use the following process to 

select applicants to receive supportive 

services grants: 

(a) VA will score all applicants that 

meet the threshold requirements set 

forth in § 62.21 using the scoring criteria 

set forth in § 62.22. 

(b) VA will group applicants within 

the applicable funding priorities if 

funding priorities are set forth in the 

Notice of Fund Availability. 

(c) VA will rank those applicants who 

receive at least the minimum amount of 

total points and points per category set 

forth in the Notice of Fund Availability, 

within their respective funding priority 

group, if any. The applicants will be 

ranked in order from highest to lowest 

scores, within their respective funding 

priority group, if any. 

(d) VA will use the applicant’s 

ranking as the primary basis for 

selection for funding. However, VA will 

also use the following considerations to 

select applicants for funding: 

(1) VA will give preference to 

applicants that provide, or coordinate 

the provision of, supportive services for 

very low-income veteran families 

transitioning from homelessness to 

permanent housing; and 

(2) To the extent practicable, VA will 

ensure that supportive services grants 

are equitably distributed across 

geographic regions, including rural 

communities and tribal lands. 


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(e) Subject to paragraph (d) of this 

section, VA will fund the highestranked applicants for which funding is 

available, within the highest funding 

priority group, if any. If funding 

priorities have been established, to the 

extent funding is available and subject 

to paragraph (d) of this section, VA will 

select applicants in the next highest 

funding priority group based on their 

rank within that group. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.24 Scoring criteria for grantees 

applying for renewal of supportive services 

grants. 

VA will use the following criteria to 

score grantees applying for renewal of a 

supportive services grant: 

(a) VA will award up to 55 points 

based on the success of the grantee’s 

program, as demonstrated by the 

following: 

(1) Participants made progress in 

achieving housing stability. 

(2) Participants were satisfied with 

the supportive services provided by the 

grantee. 

(3) The grantee implemented the 

program and delivered supportive 

services to participants in a timely 

manner. 

(4) The grantee prevented 

homelessness among very low-income 

veteran families occupying permanent 

housing that were most at risk of 

homelessness. 

(5) The grantee’s program reduced 

homelessness among very low-income 

veteran families occupying permanent 

housing in the area or community 

served by the grantee. 

(b) VA will award up to 30 points 

based on the cost-effectiveness of the 

grantee’s program, as demonstrated by 

the following: 

(1) The cost per participant household 

was reasonable. 

(2) The grantee’s program was 

effectively implemented on-budget. 

(c) VA will award up to 15 points 

based on the extent to which the 

grantee’s program complies with 

Supportive Services for Veteran 

Families Program goals and 

requirements, as demonstrated by the 

following: 

(1) The grantee’s program was 

administered in accordance with VA’s 

goals for the Supportive Services for 

Veteran Families Program. 

(2) The grantee’s program was 

administered in accordance with all 

applicable laws, regulations, and 

guidelines. 

(3) The grantee’s program was 

administered in accordance with the 

grantee’s supportive services grant 

agreement. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.25 Selecting grantees for renewal of 

supportive services grants. 

VA will use the following process to 

select grantees applying for renewal of 

supportive services grants: 

(a) So long as the grantee continues to 

meet the threshold requirements set 

forth in § 62.21, VA will score the 

grantee using the scoring criteria set 

forth in § 62.24. 

(b) VA will rank those grantees who 

receive at least the minimum amount of 

total points and points per category set 

forth in the Notice of Fund Availability. 

The grantees will be ranked in order 

from highest to lowest scores. 

(c) VA will use the grantee’s ranking 

as the basis for selection for funding. VA 

will fund the highest-ranked grantees 

for which funding is available. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.30 Supportive service: Outreach 

services. 

(a) Grantees must provide outreach 

services and use their best efforts to 

ensure that hard-to-reach very lowincome veteran families occupying 

permanent housing are found, engaged, 

and provided supportive services. 

(b) Outreach services must include 

active liaison with local VA facilities, 

State, local, tribal (if any), and private 

agencies and organizations providing 

supportive services to very low-income 

veteran families in the area or 

community to be served by the grantee. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.31 Supportive service: Case 

management services. 

Grantees must provide case 

management services that include, at a 

minimum: 

(a) Performing a careful assessment of 

participant functions and developing 

and monitoring case plans in 

coordination with a formal assessment 

of supportive services needed, including 

necessary follow-up activities, to ensure 

that the participant’s needs are 

adequately addressed; 

(b) Establishing linkages with 

appropriate agencies and service 

providers in the area or community to 

help participants obtain needed 

supportive services; 

(c) Providing referrals to participants 

and related activities (such as 

scheduling appointments for 

participants) to help participants obtain 

needed supportive services, such as 

medical, social, and educational 

assistance or other supportive services 

to address participants’ identified needs 

and goals; 

(d) Deciding how resources are 

allocated to participants on the basis of 

need; and 

(e) Educating participants on issues, 

including, but not limited to, supportive 

services availability and participant 

rights. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.32 Supportive service: Assistance in 

obtaining VA benefits. 

(a) Grantees must assist participants 

in obtaining any benefits from VA for 

which the participants are eligible. Such 

benefits include, but are not limited to: 

(1) Vocational and rehabilitation 

counseling; 

(2) Employment and training service; 

(3) Educational assistance; and 

(4) Health care services. 

(b) Grantees are not permitted to 

represent participants before VA with 

respect to a claim for VA benefits unless 

they are recognized for that purpose 

pursuant to 38 U.S.C. 5902. Employees 

and members of grantees are not 

permitted to provide such 

representation unless the individual 

providing representation is accredited 

pursuant to 38 U.S.C. chapter 59. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.33 Supportive service: Assistance in 

obtaining and coordinating other public 

benefits. 

Grantees must assist participants to 

obtain and coordinate the provision of 

other public benefits, including at a 

minimum those listed in paragraphs (a) 

through (i) below, that are being 

provided by Federal, State, local, or 

tribal agencies, or any eligible entity in 

the area or community served by the 

grantee by referring the participant to 

and coordinating with such entity. If a 

public benefit is not being provided by 

Federal, State, local, or tribal agencies, 

or any eligible entity in the area or 

community, the grantee is not required 

to obtain, coordinate, or provide such 

public benefit. Grantees may also elect 

to provide directly to participants the 

public benefits identified in paragraphs 

(c) through (i) below. When grantees 

directly provide such benefits, the 

grantees must comply with the same 

requirements as a third party provider of 

such benefits. 

(a) Health care services, which 

include: 

(1) Health insurance; and 

(2) Referral to a governmental or 

eligible entity that provides any of the 

following services: 

(i) Hospital care, nursing home care, 

out-patient care, mental health care, 

preventive care, habilitative and 

rehabilitative care, case management, 

respite care, and home care; 


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(ii) The training of any very lowincome veteran family member in the 

care of any very low-income veteran 

family member; and 

(iii) The provision of pharmaceuticals, 

supplies, equipment, devices, 

appliances, and assistive technology. 

(b) Daily living services, which may 

consist of the referral of a participant, as 

appropriate, to an entity that provides 

services relating to the functions or 

tasks for self-care usually performed in 

the normal course of a day, including, 

but not limited to, eating, bathing, 

grooming, dressing, and home 

management activities. 

(c) Personal financial planning 

services, which include, at a minimum, 

providing recommendations regarding 

day-to-day finances and achieving longterm budgeting and financial goals. 

(d) Transportation services. 

(1) The grantee may provide 

temporary transportation services 

directly to participants if the grantee 

determines such assistance is necessary; 

however, the preferred method of direct 

provision of transportation services is 

the provision of tokens, vouchers, or 

other appropriate instruments so that 

participants may use available public 

transportation options. 

(2) If public transportation options are 

not sufficient within an area or 

community, costs related to the lease of 

vehicle(s) may be included in a 

supportive services grant application if 

the applicant or grantee, as applicable, 

agrees that: 

(i) The vehicle(s) will be safe, 

accessible, and equipped to meet the 

needs of the participants; 

(ii) The vehicle(s) will be maintained 

in accordance with the manufacturer’s 

recommendations; and 

(iii) All transportation personnel 

(employees and subcontractors) will be 

trained in managing any special needs 

of participants and handling emergency 

situations. 

(3) The grantee may make payments 

on behalf of a participant needing car 

repairs or maintenance required to 

operate the vehicle if the payment will 

allow the participant to remain in 

permanent housing or obtain permanent 

housing, subject to the following: 

(i) Payments for car repairs or 

maintenance on behalf of the participant 

may not exceed $1,000 during a 3-year 

period, such period beginning on the 

date the grantee first pays for any car 

repairs or maintenance on behalf of the 

participant. 

(ii) Payments for car repairs or 

maintenance must be reasonable and 

must be paid by the grantee directly to 

the third party that repairs or maintains 

the car. 

(iii) Grantees may require participants 

to share in the cost of car repairs or 

maintenance as a condition of receiving 

assistance with car repairs or 

maintenance. 

(e) Income support services, which 

may consist of providing assistance in 

obtaining other Federal, State, tribal and 

local assistance, in the form of, but not 

limited to, mental health benefits, 

employment counseling, medical 

assistance, veterans’ benefits, and 

income support assistance. 

(f) Fiduciary and representative payee 

services, which may consist of acting on 

behalf of a participant by receiving the 

participant’s paychecks, benefits or 

other income, and using those funds for 

the current and foreseeable needs of the 

participant and saving any remaining 

funds for the participant’s future use in 

an interest bearing account or saving 

bonds. 

(g) Legal services to assist a 

participant with issues that interfere 

with the participant’s ability to obtain or 

retain permanent housing or supportive 

services. 

(h) Child care, which includes the: 

(1) Referral of a participant, as 

appropriate, to an eligible child care 

provider that provides child care with 

sufficient hours of operation and serves 

appropriate ages, as needed by the 

participant; and 

(2) Payment by a grantee on behalf of 

a participant for child care by an eligible 

child care provider. 

(i) Payments for child care services 

must be paid by the grantee directly to 

an eligible child care provider and 

cannot exceed a maximum of 4 months 

in a 12-month period beginning on the 

date that the grantee first pays for child 

care services on behalf of a participant. 

(ii) Grantees may require participants 

to share in the cost of child care as a 

condition of receiving payments for 

child care services. 

(iii) Payments for child care services 

cannot be provided on behalf of 

participants for the same period of time 

and for the same cost types that are 

being provided through another Federal, 

State or local subsidy program. 

(iv) As a condition of providing 

payments for child care services, the 

grantee must help the participant 

develop a reasonable plan to address the 

participant’s future ability to pay for 

child care services. Grantees must assist 

the participant to implement such plan 

by providing any necessary assistance or 

helping the participant to obtain any 

necessary public or private benefits or 

services. 

(i) Housing counseling, which 

includes the provision of counseling 

relating to the stabilization of a 

participant’s residence in permanent 

housing. At a minimum, housing 

counseling includes providing referrals 

to appropriate local, tribal, State, and 

Federal resources, and providing 

counseling, education and outreach 

directly to participants on the following 

topics, as appropriate: 

(1) Housing search assistance, 

including the location of vacant units, 

the scheduling of appointments, 

viewing apartments, reviewing tenant 

leases, and negotiating with landlords 

on behalf of a participant; 

(2) Rental and rent subsidy programs; 

(3) Federal, State, tribal, or local 

assistance; 

(4) Fair housing; 

(5) Landlord tenant laws; 

(6) Lease terms; 

(7) Rent delinquency; 

(8) Resolution or prevention of 

mortgage delinquency, including, but 

not limited to, default and foreclosure, 

loss mitigation, budgeting, and credit; 

and 

(9) Home maintenance and financial 

management. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.34 Other supportive services. 

Grantees may provide the following 

services which are necessary for 

maintaining independent living in 

permanent housing and housing 

stability: 

(a) Rental assistance. Payment of rent, 

penalties or fees to help the participant 

remain in permanent housing or obtain 

permanent housing. 

(1) A participant may receive rental 

assistance for a maximum of 8 months 

during a 3-year period, such period 

beginning on the date that the grantee 

first pays rent on behalf of the 

participant; however, a participant 

cannot receive rental assistance for more 

than 5 months in any 12-month period 

beginning on the date that the grantee 

first pays rent on behalf of the 

participant. The rental assistance may 

be for rental payments that are currently 

due or are in arrears, and for the 

payment of penalties or fees incurred by 

a participant and required to be paid by 

the participant under an existing lease 

or court order. In all instances, rental 

assistance may only be provided if the 

payment of such rental assistance will 

directly allow the participant to remain 

in permanent housing or obtain 

permanent housing. 

(2) Rental assistance must be paid by 

the grantee directly to the third party to 

whom rent is owed. 

(3) As a condition of providing rental 

assistance, the grantee must help the 

participant develop a reasonable plan to 

address the participant’s future ability 


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to pay rent. Grantees must assist the 

participant to implement such plan by 

providing any necessary assistance or 

helping the participant to obtain any 

necessary public or private benefits or 

services. 

(4) The rental assistance paid by a 

grantee must be in compliance with the 

following ‘‘rent reasonableness’’ 

standard. ‘‘Rent reasonableness’’ means 

the total rent charged for a unit must be 

reasonable in relation to the rents being 

charged during the same time period for 

comparable units in the private 

unassisted market and must not be in 

excess of rents being charged by the 

property owner during the same time 

period for comparable non-luxury 

unassisted units. To make this 

determination, the grantee should 

consider: 

(i) The location, quality, size, type, 

and age of the unit; and 

(ii) Any amenities, housing services, 

maintenance, and utilities to be 

provided by the property owner. 

Comparable rents can be checked by 

using a market study, by reviewing 

comparable units advertised for rent, or 

using a note from the property owner 

verifying the comparability of charged 

rents to other units owned by the 

property owner. Prior to providing 

rental assistance in the form of payment 

of penalties or fees incurred by a 

participant, the grantee must determine 

that such penalties or fees are 

reasonable. 

(5) With respect to shared housing 

arrangements, the rent charged for a 

participant must be in relation to the 

size of the private space for that 

participant in comparison to other 

private space in the shared unit, 

excluding common space. A participant 

may be assigned a pro rata portion based 

on the ratio derived by dividing the 

number of bedrooms in their private 

space by the number of bedrooms in the 

unit. Participation in shared housing 

arrangements must be voluntary. 

(6) Rental assistance payments cannot 

be provided on behalf of participants for 

the same period of time and for the 

same cost types that are being provided 

through another Federal, State, or local 

housing subsidy program. 

(7) Grantees may require participants 

to share in the cost of rent as a condition 

of receiving rental assistance. 

(b) Utility-fee payment assistance. 

Payment of utility fees to help the 

participant to remain in permanent 

housing or obtain permanent housing. 

(1) A participant may receive 

payments for utilities for a maximum of 

4 months during a 3-year period, such 

period beginning on the date that the 

grantee first pays utility fees on behalf 

of the participant; provided, however, 

that a participant cannot receive 

payments for utilities for more than 2 

months in any 12-month period 

beginning on the date that the grantee 

first pays a utility payment on behalf of 

the participant. The payment for 

utilities may be for utility payments that 

are currently due or are in arrears, 

provided that the payment of such 

utilities will allow the participant to 

remain in permanent housing or obtain 

permanent housing. 

(2) Payments for utilities must be paid 

by the grantee directly to a utility 

company. Payments for utilities only 

will be available if a participant, a legal 

representative of the participant, or a 

member of his/her household, has an 

account in his/her name with a utility 

company or proof of responsibility to 

make utility payments, such as 

cancelled checks or receipts in his/her 

name from a utility company. 

(3) As a condition of providing 

payments for utilities, the grantee must 

help the participant develop a 

reasonable plan to address the 

participant’s future ability to pay utility 

payments. Grantees must assist the 

participant to implement such plan by 

providing any necessary assistance or 

helping the participant to obtain any 

necessary public or private benefits or 

services. 

(4) Payments for utilities cannot be 

provided on behalf of participants for 

the same period of time and for the 

same cost types that are being provided 

through another Federal, State, or local 

program. 

(5) Grantees may require participants 

to share in the cost of utility payments 

as a condition of receiving payments for 

utilities. 

(c) Deposits. Payment of security 

deposits or utility deposits to help the 

participant remain in permanent 

housing or obtain permanent housing. 

(1) A participant may receive 

assistance with the payment of a 

security deposit a maximum of one time 

in every 3-year period, such period 

beginning on the date the grantee pays 

a security deposit on behalf of a 

participant. 

(2) A participant may receive 

assistance with the payment of a utility 

deposit a maximum of one time in every 

3-year period, such period beginning on 

the date the grantee pays a utility 

deposit on behalf of a participant. 

(3) Any security deposit or utility 

deposit must be paid by the grantee 

directly to the third party to whom the 

security deposit or utility deposit is 

owed. The payment of such deposit 

must allow the participant to remain in 

the participant’s existing permanent 

housing or help the participant to obtain 

and remain in permanent housing 

selected by the participant. 

(4) As a condition of providing a 

security deposit payment or a utility 

deposit payment, the grantee must help 

the participant develop a reasonable 

plan to address the participant’s future 

housing stability. Grantees must assist 

the participant to implement such plan 

by providing any necessary assistance or 

helping the participant to obtain any 

necessary public or private benefits or 

services. 

(5) Security deposits and utility 

deposits covering the same period of 

time in which assistance is being 

provided through another housing 

subsidy program are eligible, as long as 

they cover separate cost types. 

(6) Grantees may require participants 

to share in the cost of the security 

deposit or utility deposit as a condition 

of receiving assistance with such 

deposit. 

(d) Moving costs. Payment of moving 

costs to help the participant to obtain 

permanent housing. 

(1) A participant may receive 

assistance with moving costs a 

maximum of one time in every 3-year 

period, such period beginning on the 

date the grantee pays moving costs on 

behalf of a participant. 

(2) Moving costs assistance must be 

paid by the grantee directly to a third 

party. Moving costs assistance includes 

reasonable moving costs, such as truck 

rental, hiring a moving company, or 

short-term storage fees for a maximum 

of 3 months or until the participant is 

in permanent housing, whichever is 

shorter. 

(3) As a condition of providing 

moving costs assistance, the grantee 

must help the participant develop a 

reasonable plan to address the 

participant’s future housing stability. 

Grantees must assist the participant to 

implement such plan by providing any 

necessary assistance or helping the 

participant to obtain any necessary 

public or private benefits or services. 

(4) Moving costs assistance payments 

cannot be provided on behalf of 

participants for the same period of time 

and for the same cost types that are 

being provided through another Federal, 

State, or local program. 

(5) Grantees may require participants 

to share in the cost of moving as a 

condition of receiving assistance with 

moving costs. 

(e) Purchase of emergency supplies 

for a participant. (1) A grantee may 

purchase emergency supplies for a 

participant on a temporary basis. The 

costs for such emergency supplies shall 

not exceed $500 per participant during 


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a 3-year period, such period beginning 

on the date that the grantee first pays for 

an emergency supply on behalf of the 

participant. 

(2) The costs of the emergency 

supplies must be paid by the grantee 

directly to a third party. 

(f) Other. Other services as set forth in 

the Notice of Fund Availability or as 

approved by VA that are consistent with 

the Supportive Services for Veteran 

Families Program. Applicants may 

propose additional services in their 

supportive services grant application, 

and grantees may propose additional 

services by submitting a written request 

to modify the supportive services grant 

in accordance with § 62.60. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.35 Limitations on and continuations 

of the provision of supportive services to 

certain participants. 

(a) Continuation of the provision of 

supportive services to a participant 

classified under § 62.11(a)(2). If a 

participant classified under § 62.11(a)(2) 

does not become a resident of 

permanent housing within the originally 

scheduled 90-day period, the grantee 

may continue to provide supportive 

services to a participant classified under 

§ 62.11(a)(2) for such time that the 

participant continues to meet the 

requirements of § 62.11(a)(2). 

(b) Limitations on the provision of 

supportive services to participants 

classified under § 62.11(a)(3). (1) A 

grantee may provide supportive services 

to a participant classified under 

§ 62.11(a)(3) until the earlier of the 

following dates: 

(i) The participant commences receipt 

of other housing services adequate to 

meet the participant’s needs; or 

(ii) Ninety days from the date the 

participant exits permanent housing. 

(2) Supportive services provided to 

participants classified under 

§ 62.11(a)(3) must be designed to 

support the participants in their choice 

to transition into housing that is 

responsive to their individual needs and 

preferences. 

(c) Continuation of supportive 

services to veteran family member(s). If 

a veteran becomes absent from a 

household or dies while other members 

of the veteran family are receiving 

supportive services, then such 

supportive services must continue for a 

grace period following the absence or 

death of the veteran. The grantee must 

establish a reasonable grace period for 

continued participation by the veteran’s 

family member(s), but that period may 

not exceed 1 year from the date of 

absence or death of the veteran, subject 

to the requirements of paragraphs (a) 

and (b) of this section. The grantee must 

notify the veteran’s family member(s) of 

the duration of the grace period. 

(d) Referral for other assistance. If a 

participant becomes ineligible to receive 

supportive services under this section, 

the grantee must provide the participant 

with information on other available 

programs or resources. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.36 General operation requirements. 

(a) Eligibility documentation. Grantees 

must verify and document each 

participant’s eligibility for supportive 

services and classify the participant 

under one of the categories set forth in 

§ 62.11(a). Grantees must certify the 

eligibility and classification of each 

participant at least once every 3 months. 

(b) Confidentiality. Grantees must 

maintain the confidentiality of records 

kept on participants. Grantees that 

provide family violence prevention or 

treatment services must establish and 

implement procedures to ensure the 

confidentiality of: 

(1) Records pertaining to any 

individual provided services, and 

(2) The address or location where the 

services are provided. 

(c) Notifications to participants. (1) 

Prior to initially providing supportive 

services to a participant, the grantee 

must notify each participant of the 

following: 

(i) The supportive services are being 

paid for, in whole or in part, by VA; 

(ii) The supportive services available 

to the participant through the grantee’s 

program; and 

(iii) Any conditions or restrictions on 

the receipt of supportive services by the 

participant. 

(2) The grantee must provide each 

participant with a satisfaction survey 

which can be submitted by the 

participant directly to VA, within 45 to 

60 days of the participant’s entry into 

the grantee’s program and again within 

30 days of such participant’s pending 

exit from the grantee’s program. 

(d) Assessment of funds. Grantees 

must regularly assess how supportive 

services grant funds can be used in 

conjunction with other available funds 

and services to assist participants. 

(e) Administration of supportive 

services grants. Grantees must ensure 

that supportive services grants are 

administered in accordance with the 

requirements of this part, the supportive 

services grant agreement, and other 

applicable laws and regulations. 

Grantees are responsible for ensuring 

that any subcontractors carry out 

activities in compliance with this part. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.37 Fee prohibition. 

Grantees must not charge a fee to very 

low-income veteran families for 

providing supportive services that are 

funded with amounts from a supportive 

services grant. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.40 Notice of Fund Availability. 

When funds are available for 

supportive services grants, VA will 

publish a Notice of Fund Availability in 

the Federal Register. The notice will 

identify: 

(a) The location for obtaining 

supportive services grant applications; 

(b) The date, time, and place for 

submitting completed supportive 

services grant applications; 

(c) The estimated amount and type of 

supportive services grant funding 

available; 

(d) Any priorities for or exclusions 

from funding to meet the statutory 

mandates of 38 U.S.C. 2044 and VA 

goals for the Supportive Services for 

Veteran Families Program; 

(e) The length of term for the 

supportive services grant award; 

(f) The minimum number of total 

points and points per category that an 

applicant or grantee, as applicable, must 

receive in order for a supportive 

services grant to be funded; 

(g) Any maximum uses of supportive 

services grant funds for specific 

supportive services; 

(h) The timeframes and manner for 

payments under the supportive services 

grant; and 

(i) Other information necessary for the 

supportive services grant application 

process as determined by VA. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.50 Supportive services grant 

agreements. 

(a) After an applicant is selected for 

a supportive services grant in 

accordance with § 62.23, VA will draft 

a supportive services grant agreement to 

be executed by VA and the applicant. 

Upon execution of the supportive 

services grant agreement, VA will 

obligate supportive services grant funds 

to cover the amount of the approved 

supportive services grant, subject to the 

availability of funding. The supportive 

services grant agreement will provide 

that the grantee agrees, and will ensure 

that each subcontractor agrees, to: 

(1) Operate the program in accordance 

with the provisions of this part and the 

applicant’s supportive services grant 

application; 

(2) Comply with such other terms and 

conditions, including recordkeeping 

and reports for program monitoring and 


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evaluation purposes, as VA may 

establish for purposes of carrying out 

the Supportive Services for Veteran 

Families Program, in an effective and 

efficient manner; and 

(3) Provide such additional 

information as deemed appropriate by 

VA. 

(b) After a grantee is selected for 

renewal of a supportive services grant in 

accordance with § 62.25, VA will draft 

a supportive services grant agreement to 

be executed by VA and the grantee. 

Upon execution of the supportive 

services grant agreement, VA will 

obligate supportive services grant funds 

to cover the amount of the approved 

supportive services grant, subject to the 

availability of funding. The supportive 

services grant agreement will contain 

the same provisions described in 

paragraph (a) of this section. 

(c) No funds provided under this part 

may be used to replace Federal, State, 

tribal, or local funds previously used, or 

designated for use, to assist very lowincome veteran families. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.51 Payments under the supportive 

services grant. 

Grantees are to be paid in accordance 

with the timeframes and manner set 

forth in the Notice of Fund Availability. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.60 Program or budget changes and 

corrective action plans. 

(a) A grantee must submit to VA a 

written request to modify a supportive 

services grant for any proposed 

significant change that will alter the 

supportive services grant program. If VA 

approves such change, VA will issue a 

written amendment to the supportive 

services grant agreement. A grantee 

must receive VA’s approval prior to 

implementing a significant change. 

Significant changes include, but are not 

limited to, a change in the grantee or 

any subcontractors identified in the 

supportive services grant agreement; a 

change in the area or community served 

by the grantee; additions or deletions of 

supportive services provided by the 

grantee; a change in category of 

participants to be served; and a change 

in budget line items that are more than 

10 percent of the total supportive 

services grant award. 

(1) VA’s approval of changes is 

contingent upon the grantee’s amended 

application retaining a high enough 

rank to have been competitively 

selected for funding in the year that the 

application was granted. 

(2) Each supportive services grant 

modification request must contain a 

description of the revised proposed use 

of supportive services grant funds. 

(b) VA may require that the grantee 

initiate, develop and submit to VA for 

approval a Corrective Action Plan (CAP) 

if, on a quarterly basis, actual 

supportive services grant expenditures 

vary from the amount disbursed to a 

grantee for that same quarter or actual 

supportive services grant activities vary 

from the grantee’s program description 

provided in the supportive services 

grant agreement. 

(1) The CAP must identify the 

expenditure or activity source that has 

caused the deviation, describe the 

reason(s) for the variance, provide 

specific proposed corrective action(s), 

and provide a timetable for 

accomplishment of the corrective 

action. 

(2) After receipt of the CAP, VA will 

send a letter to the grantee indicating 

that the CAP is approved or 

disapproved. If disapproved, VA will 

make beneficial suggestions to improve 

the proposed CAP and request 

resubmission, or take other actions in 

accordance with this part. 

(c) Grantees must inform VA in 

writing of any key personnel changes 

(e.g., new executive director, supportive 

services grant program director, or chief 

financial officer) and grantee address 

changes within 30 days of the change. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.61 Procedural error. 

If an applicant would have been 

selected but for a procedural error 

committed by VA, VA may select that 

applicant for funding when sufficient 

funds become available if there is no 

material change in the information that 

would have resulted in the applicant’s 

selection. A new application will not be 

required for this purpose. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.62 Religious organizations. 

(a) Organizations that are religious or 

faith-based are eligible, on the same 

basis as any other organization, to 

participate in the Supportive Services 

for Veteran Families Program under this 

part. In the selection of applicants, the 

Federal government will not 

discriminate for or against an 

organization on the basis of the 

organization’s religious character or 

affiliation. 

(b)(1) No organization may use direct 

financial assistance from VA under this 

part to pay for any of the following: 

(i) Inherently religious activities, such 

as religious worship, instruction, or 

proselytization; or 

(ii) Equipment or supplies to be used 

for any of those activities. 

(2) For purposes of this section, 

‘‘indirect financial assistance’’ means 

Federal assistance in which a service 

provider receives program funds 

through a voucher, certificate, 

agreement, or other form of 

disbursement, as a result of the 

independent and private choices of 

individual beneficiaries. ‘‘Direct 

financial assistance’’ means Federal aid 

in the form of a grant, contract, or 

cooperative agreement where the 

independent choices of individual 

beneficiaries do not determine which 

organizations receive program funds. 

(c) Organizations that engage in 

inherently religious activities, such as 

worship, religious instruction, or 

proselytization, must offer those 

services separately in time or location 

from any programs or services funded 

with direct financial assistance from VA 

under this part, and participation in any 

of the organization’s inherently religious 

activities must be voluntary for the 

beneficiaries of a program or service 

funded by direct financial assistance 

from VA under this part. 

(d) A religious organization that 

participates in the Supportive Services 

for Veteran Families Program under this 

part will retain its independence from 

Federal, State, or local governments and 

may continue to carry out its mission, 

including the definition, practice, and 

expression of its religious beliefs, 

provided that it does not use direct 

financial assistance from VA under this 

part to support any inherently religious 

activities, such as worship, religious 

instruction, or proselytization. Among 

other things, faith-based organizations 

may use space in their facilities to 

provide VA-funded services under this 

part, without removing religious art, 

icons, scripture, or other religious 

symbols. In addition, a VA-funded 

religious organization retains its 

authority over its internal government, 

and it may retain religious terms in its 

organization’s name, select its board 

members and otherwise govern itself on 

a religious basis, and include religious 

reference in its organization’s mission 

statement and other governing 

documents. 

(e) An organization that participates 

in a VA program under this part must 

not, in providing direct program 

assistance, discriminate against a 

program beneficiary or a prospective 

program beneficiary regarding 

supportive services, financial assistance, 

or technical assistance, on the basis of 

religion or religious belief. 

(f) If a State or local government 

voluntarily contributes its own funds to 

supplement federally funded activities, 

the State or local government has the 


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option to segregate the Federal funds or 

commingle them. However, if the funds 

are commingled, this provision applies 

to all of the commingled funds. 

(g) To the extent otherwise permitted 

by Federal law, the restrictions on 

inherently religious activities set forth 

in this section do not apply where VA 

funds are provided to religious 

organizations through indirect 

assistance as a result of a genuine and 

independent private choice of a 

beneficiary, provided the religious 

organizations otherwise satisfy the 

requirements of this part. A religious 

organization may receive such funds as 

the result of a beneficiary’s genuine and 

independent choice if, for example, a 

beneficiary redeems a voucher, coupon, 

or certificate, allowing the beneficiary to 

direct where funds are to be paid, or a 

similar funding mechanism provided to 

that beneficiary and designed to give 

that beneficiary a choice among 

providers. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.63 Visits to monitor operations and 

compliance. 

(a) VA has the right, at all reasonable 

times, to make visits to all grantee 

locations where a grantee is using 

supportive services grant funds in order 

to review grantee accomplishments and 

management control systems and to 

provide such technical assistance as 

may be required. VA may conduct 

inspections of all program locations and 

records of a grantee at such times as are 

deemed necessary to determine 

compliance with the provisions of this 

part. In the event that a grantee delivers 

services in a participant’s home, or at a 

location away from the grantee’s place 

of business, VA may accompany the 

grantee. If the grantee’s visit is to the 

participant’s home, VA will only 

accompany the grantee with the consent 

of the participant. If any visit is made 

by VA on the premises of the grantee or 

a subcontractor under the supportive 

services grant, the grantee must provide, 

and must require its subcontractors to 

provide, all reasonable facilities and 

assistance for the safety and 

convenience of the VA representatives 

in the performance of their duties. All 

visits and evaluations will be performed 

in such a manner as will not unduly 

delay services. 

(b) The authority to inspect carries 

with it no authority over the 

management or control of any applicant 

or grantee under this part. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.70 Financial management and 

administrative costs. 

(a) Grantees must comply with 

applicable requirements of the Single 

Audit Act Amendments of 1996 (31 

U.S.C. 7501–7507) and revised OMB 

Circular A–133, ‘‘Audits of States, Local 

Governments, and Non-Profit 

Organizations,’’ codified by VA at 38 

CFR Part 41. 

(b) Grantees must use a financial 

management system that provides 

adequate fiscal control and accounting 

records and meets the requirements set 

forth in OMB Circular A–110, Subpart 

C, Section 21 (codified at 2 CFR 215.21) 

and 38 CFR 49.21. 

(c) Payment up to the amount 

specified in the supportive services 

grant must be made only for allowable, 

allocable, and reasonable costs in 

conducting the work under the 

supportive services grant. The 

determination of allowable costs must 

be made in accordance with the 

applicable Federal Cost Principles set 

forth in OMB Circular A–122, Cost 

Principles for Non-Profit Organizations, 

codified at 2 CFR Part 235. 

(d) Grantees are subject to the 

Uniform Administrative Requirements 

for Grants and Agreements with 

Institutions of Higher Education, 

Hospitals and other Non-Profit 

Organizations, codified at 38 CFR Part 

49. 

(e) Costs for administration by a 

grantee must not exceed 10 percent of 

the total amount of the supportive 

services grant. Administrative costs will 

consist of all direct and indirect costs 

associated with the management of the 

program. These costs will include the 

administrative costs, both direct and 

indirect, of subcontractors. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.71 Grantee reporting requirements. 

(a) VA may require grantees to 

provide, in such form as may be 

prescribed, such reports or answers in 

writing to specific questions, surveys, or 

questionnaires as VA determines 

necessary to carry out the Supportive 

Services for Veteran Families Program. 

(b) If, on a quarterly basis, actual 

supportive services grant expenditures 

vary from the amount disbursed to a 

grantee for that same quarter or actual 

supportive services grant activities vary 

from the grantee’s program description 

provided in the supportive services 

grant agreement, grantees must report 

the deviation to VA. 

Note to paragraph (b): For information on 

corrective action plans, which may be 

required in this circumstance, see § 62.60. 

(c) At least once per year, or at the 

frequency set by VA, each grantee must 

submit to VA a report containing 

information relating to operational 

effectiveness, fiscal responsibility, 

supportive services grant agreement 

compliance, and legal and regulatory 

compliance, including a description of 

the use of supportive services grant 

funds, the number of participants 

assisted, the types of supportive services 

provided, and any other information 

that VA may request. 

(d) Grantees must relate financial data 

to performance data and develop unit 

cost information whenever practical. 

(e) All pages of the reports must cite 

the assigned supportive services grant 

number and be submitted in a timely 

manner. 

(f) Grantees must provide VA with 

consent to post information from reports 

on the Internet and use such 

information in other ways deemed 

appropriate by VA. Grantees shall 

clearly mark information that is 

confidential to individual participants. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.72 Recordkeeping. 

Grantees must ensure that records are 

maintained for at least a 3-year period 

to document compliance with this part. 

Grantees must produce such records at 

VA’s request. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.73 Technical assistance. 

VA will provide technical assistance, 

as necessary, to eligible entities to meet 

the requirements of this part. Such 

technical assistance will be provided 

either directly by VA or through grants 

or contracts with appropriate public or 

non-profit private entities. 

(Authority: 38 U.S.C. 501, 2044, 2064) 

§ 62.80 Withholding, suspension, 

deobligation, termination, and recovery of 

funds by VA. 

(a) Recovery of funds. VA will recover 

from the grantee any supportive services 

grant funds that are not used in 

accordance with the requirements of 

this part. VA will issue to the grantee a 

notice of intent to recover supportive 

services grant funds. The grantee will 

then have 30 days to submit 

documentation demonstrating why the 

supportive services grant funds should 

not be recovered. After review of all 

submitted documentation, VA will 

determine whether action will be taken 

to recover the supportive services grant 

funds. 

(b) VA actions when grantee fails to 

comply. When a grantee fails to comply 

with the terms, conditions, or standards 

of the supportive services grant, VA 


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may, on 7-days notice to the grantee, 

withhold further payment, suspend the 

supportive services grant, or prohibit 

the grantee from incurring additional 

obligations of supportive services grant 

funds, pending corrective action by the 

grantee or a decision to terminate in 

accordance with paragraph (c) of this 

section. VA will allow all necessary and 

proper costs that the grantee could not 

reasonably avoid during a period of 

suspension if such costs meet the 

provisions of the applicable Federal 

Cost Principles. 

(c) Termination. Supportive services 

grants may be terminated in whole or in 

part only if paragraphs (c)(1), (2), or (3) 

of this section apply. 

(1) By VA, if a grantee materially fails 

to comply with the terms and 

conditions of a supportive services grant 

award and this part. 

(2) By VA with the consent of the 

grantee, in which case VA and the 

grantee will agree upon the termination 

conditions, including the effective date 

and, in the case of partial termination, 

the portion to be terminated. 

(3) By the grantee upon sending to VA 

written notification setting forth the 

reasons for such termination, the 

effective date, and, in the case of partial 

termination, the portion to be 

terminated. However, if VA determines 

in the case of partial termination that 

the reduced or modified portion of the 

supportive services grant will not 

accomplish the purposes for which the 

supportive services grant was made, VA 

may terminate the supportive services 

grant in its entirety under either 

paragraphs (c)(1) or (2) of this section. 

(d) Deobligation of funds. (1) VA may 

deobligate all or a portion of the 

amounts approved for use by a grantee 

if: 

(i) The activity for which funding was 

approved is not provided in accordance 

with the approved application and the 

requirements of this part; 

(ii) Such amounts have not been 

expended within a 1-year period from 

the date of the signing of the supportive 

services grant agreement; 

(iii) Other circumstances set forth in 

the supportive services grant agreement 

authorize or require deobligation. 

(2) At its discretion, VA may readvertise in a Notice of Fund 

Availability the availability of funds 

that have been deobligated under this 

section or award deobligated funds to 

applicants who previously submitted 

applications in response to the most 

recently published Notice of Fund 

Availability. 

(Authority: 38 U.S.C. 501, 2044) 

§ 62.81 Supportive services grant closeout 

procedures. 

Supportive services grants will be 

closed out in accordance with the 

following procedures upon the date of 

completion: 

(a) No later than 90 days after the date 

of completion, the grantee must refund 

to VA any unobligated (unencumbered) 

balance of supportive services grant 

funds that are not authorized by VA to 

be retained by the grantee. 

(b) No later than 90 days after the date 

of completion, the grantee must submit 

all financial, performance and other 

reports required by VA to closeout the 

supportive services grant. VA may 

authorize extensions when requested by 

the grantee. 

(c) If a final audit has not been 

completed prior to the date of 

completion, VA retains the right to 

recover an appropriate amount after 

considering the recommendations on 

disallowed costs once the final audit has 

been completed. 

(Authority: 38 U.S.C. 501, 2044) 

[FR Doc. 2010–28407 Filed 11–9–10; 8:45 am] 

BILLING CODE 8320–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R06–OAR–2006–0132; FRL–9223–2] 

Approval and Promulgation of 

Implementation Plans; Texas; Excess 

Emissions During Startup, Shutdown, 

Maintenance, and Malfunction 

Activities 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: The EPA is finalizing its 

proposal to partially approve and 

partially disapprove a revision to the 

Texas State Implementation Plan (SIP) 

submitted by the Texas Commission on 

Environmental Quality (TCEQ) in a 

letter dated January 23, 2006 (the 

January 23, 2006 SIP submittal). Today’s 

action finalizes our May 13, 2010 

proposal that concerned revisions to 30 

Texas Administrative Code (TAC) 

Chapter 101, General Air Quality Rules, 

Subchapter A General Rules; and 

Subchapter F Emissions Events and 

Scheduled Maintenance, Startup, and 

Shutdown Activities. We are finalizing 

our proposed approval of those portions 

of the rule that are consistent with the 

federal Clean Air Act (the Act or CAA), 

and finalizing our proposed disapproval 

of those portions of the rule that are 

inconsistent with the Act. More 

specifically, we are finalizing our 

proposed disapproval of provisions that 

provide for an affirmative defense 

against civil penalties for excess 

emissions during planned maintenance, 

startup, or shutdown activities and 

related provisions that contain 

nonseverable cross-references to the 

affirmative defense provision. A 

disapproval of these provisions means 

that an affirmative defense is not 

available in an enforcement action in 

Federal court to enforce the SIP for 

violations due to excess emissions 

during planned maintenance, startup, or 

shutdown activities. We are taking this 

action under section 110 of the Act. 

DATES: This rule will be effective on 

January 10, 2011. 

ADDRESSES: The EPA has established a 

docket for this action under Docket ID 

No. EPA–R06–OAR–2006–0132. All 

documents in the docket are listed on 

the http://www.regulations.gov Web 

site. Although listed in the index, some 

information is not publicly available, 

e.g., Confidential Business Information 

or other information whose disclosure is 

restricted by statute. Certain other 

material, such as copyrighted material, 

is not placed on the Internet and will be 

publicly available only in hard copy 

form. Publicly available docket 

materials are available either 

electronically through http:// 

www.regulations.gov or in hard copy at 

the Air Planning Section (6PD–L), 

Environmental Protection Agency, 1445 

Ross Avenue, Suite 700, Dallas, Texas 

75202–2733. The file will be made 

available by appointment for public 

inspection in the Region 6 FOIA Review 

Room between the hours of 8:30 a.m. 

and 4:30 p.m. weekdays except for legal 

holidays. Contact the person listed in 

the FOR FURTHER INFORMATION CONTACT

paragraph below to make an 

appointment. If possible, please make 

the appointment at least two working 

days in advance of your visit. There will 

be a 15 cent per page fee for making 

photocopies of documents. On the day 

of the visit, please check in at the EPA 

Region 6 reception area at 1445 Ross 

Avenue, Suite 700, Dallas, Texas. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Alan Shar, Air Planning Section (6PD– 

L), Environmental Protection Agency, 

Region 6, 1445 Ross Avenue, Suite 700, 

Dallas, Texas 75202–2733, telephone 

(214) 665–6691, fax (214) 665–7263, 

e-mail address shar.alan@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document ‘‘we,’’ ‘‘us,’’ 

and ‘‘our’’ refer to EPA. 


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