12698 Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Proposed Rules 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 61 

RIN 2900–AN81 

VA Homeless Providers Grant and Per 

Diem Program 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: We propose to revise and 

reorganize regulations which contain 

the Department of Veterans Affairs’ (VA) 

Homeless Providers Grant and Per Diem 

Program. This rulemaking would update 

our current regulations, implement and 

authorize new VA policies, and 

generally improve the clarity of part 61. 

DATES: Comments must be received by 

VA on or before April 30, 2012. 

ADDRESSES: Written comments may be 

submitted through 

www.Regulations.gov; by mail or handdelivery to Director, Regulations 

Management (02REG), Department of 

Veterans Affairs, 810 Vermont Avenue 

NW., Room 1068, Washington, DC 

20420; or by fax to (202) 273–9026. 

(This is not a toll free number). 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AN81 VA Homeless Providers Grant and 

Per Diem Program.’’ Copies of 

comments received will be available for 

public inspection in the Office of 

Regulation Policy and Management, 

Room 1063B, between the hours of 

8 a.m. and 4:30 p.m., Monday through 

Friday (except holidays). Please call 

(202) 461–4902 for an appointment. 

(This is not a toll free number). In 

addition, during the comment period, 

comments may be viewed online 

through the Federal Docket Management 

System (FDMS) at www.Regulations.gov. 

FOR FURTHER INFORMATION CONTACT: Guy 

Liedke, VA Homeless Providers Grant 

and Per Diem Program Office, Veterans 

Health Administration, Department of 

Veterans Affairs, 810 Vermont Avenue 

NW., Washington, DC 20420, (877) 332– 

0334. (This is a toll-free number). 

SUPPLEMENTARY INFORMATION: Pursuant 

to 38 U.S.C. 501, 2001, 2011, 2012, 

2061, and 2064, the VA Homeless 

Providers Grant and Per Diem Program, 

provides capital grants and per diem to 

public or nonprofit private entities who 

assist homeless veterans by helping to 

ensure the availability of supportive 

housing and service centers to furnish 

outreach, rehabilitative services, 

vocational counseling and training, and 

supportive housing. The regulations 

governing this program are located at 

part 61 of title 38, CFR. We are 

proposing to rewrite those regulations to 

establish certain new policies and 

procedures related to the administration 

of this program. In addition, technical 

and clarifying changes are proposed. We 

discuss the significant and substantive 

changes below in a section-by-section 

analysis. Changes that are not described 

below were made for technical reasons 

or to improve readability and are not 

intended to be substantive. 

We propose to revise the statutory 

authority for part 61 to include 38 

U.S.C. 2001, because that authority 

establishes that the purpose of chapter 

20 of title 38, U.S.C., ‘‘is to provide for 

the special needs of homeless veterans.’’ 

We propose to eliminate the reference to 

38 U.S.C. ‘‘7721 note’’ because section 

7721 was repealed in 2006. See Public 

Law 109–233, title IV, § 402(c) (June 15, 

2006). 

We also propose to remove current 

§ 61.20 because the authority to award 

these grants has expired. Public Law 

107–95 established 38 U.S.C. 2012(c)(3) 

to provide grants to renovate facilities 

that already received a capital grant 

under § 3 of the Homeless Veterans 

Comprehensive Service Programs Act of 

1992 (Pub. L. 102–590; 38 U.S.C. 7221 

note). Such grants were solely for 

renovations to comply with the Life 

Safety Code of the National Fire 

Protection Association. This authority 

has expired. 

Section 61.0 Purpose 

We propose to make some nonsubstantive changes to current § 61.0. 

Section 61.1 Definitions 

We are adding or modifying several 

definitions in order to provide 

conformity and clarity in their use 

within part 61, and are removing others 

that are no longer relevant to the 

reorganized and clarified part 61. New 

definitions and significant changes are 

addressed below. 

We would move the definition of 

‘‘capital lease’’ to § 61.4, and make the 

substantive changes to that definition as 

discussed later in this document. 

We would add a definition of 

‘‘default’’ defined as ‘‘a determination 

by VA that an awardee has materially 

failed to comply with the terms and 

conditions of an award.’’ This is a 

program-specific definition that is 

consistent with the common definition 

of the term ‘‘default’’ as it relates to 

contractual compliance. 

We would revise the definition of 

‘‘homeless’’ to be consistent with 38 

U.S.C. 2002(1), which defines a 

‘‘homeless veteran’’ as ‘‘a veteran who is 

homeless (as that term is defined in 

section 103(a) of the McKinney-Vento 

Homeless Assistance Act (42 U.S.C. 

11302(a)).’’ 

We would add a definition of ‘‘Notice 

of Fund Availability (NOFA)’’ that 

would refer readers to § 61.60, the 

substantive provision governing NOFAs. 

We believe this may be helpful to users 

who are unfamiliar with the term. 

We would add a definition of 

‘‘operational’’ and define the term to 

describe a program in which ‘‘all VA 

inspection requirements under this part 

have been met and an activation 

document has been issued by the VA 

National GPD Program.’’ This clarifies 

that a program cannot be considered 

operational, i.e., in effect, under part 61 

until it has complied with all applicable 

regulations, and VA has recognized it as 

such. 

We would add a definition of 

‘‘participant agreement,’’ because the 

term would be used in §§ 61.13 and 

61.82, as revised. The definition would 

state that a participant agreement is 

‘‘any written or implied agreement 

between a grant recipient agency and a 

program participant that outlines the 

requirements for program compliance, 

participant or service delivery.’’ 

We would add a definition of 

‘‘project’’ and define as ‘‘all activities 

that define the parameters of the 

purpose of the grant.’’ We note that VA 

provides additional details for specific 

projects in the notices of fund 

availability that serve as the bases for 

specific grant awards. 

We would add a definition of 

‘‘recipient’’ as ‘‘the entity whose 

employer or taxpayer identification 

number is on the Application for 

Federal Assistance (SF 424) and is 

consequently responsible to comply 

with all terms and conditions of the 

award.’’ We would also state that, ‘‘For 

the purpose of this part the terms 

‘‘grantee’’, ‘‘recipient’’, and ‘‘awardee’’ 

are synonymous and interchangeable.’’ 

These terms are used in this manner 

throughout part 61, and it is consistent 

with the common definitions of these 

terms to use them to describe the entity 

that is receiving the grant and therefore 

should be primarily responsible for 

compliance with part 61. 

We would revise the definition of 

‘‘supportive housing.’’ The current 

definition requires that supportive 

housing be ‘‘transitional housing’’ or 

part of a project designed to meet the 

needs of homeless veterans. The term 

‘‘transitional’’ can be misleading, 

because in some cases supportive 

housing can include a detoxification 

facility or other facility with a medical 

focus. The revised definition would 

require that ‘‘supportive housing’’ 

provide supportive services for 

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homeless veterans ‘‘designed to either 

(1) facilitate the movement of homeless 

veterans to permanent housing; or (2) 

provide specific medical treatment such 

as detoxification, respite, or hospice 

treatments.’’ Finally, the revised rule 

would also clarify the current rule that 

supportive housing cannot be emergent 

or permanent by design, by providing 

examples of types of housing that are 

not considered supportive housing. We 

note that this clarification will be 

helpful because we have received 

applications for emergent care facilities 

and permanent housing. 

We would move the definition of 

‘‘supportive services’’ to its own section, 

§ 61.2, for organizational purposes, but 

would not revise the substance of the 

definition. 

We would add a definition of ‘‘total 

project cost’’ and define as ‘‘the sum of 

all costs incurred by a recipient for the 

acquisition, rehabilitation, and new 

construction of a facility, or van(s), 

identified in a grant application.’’ This 

definition would be consistent with the 

use of this term throughout part 61, as 

it defines the total cost in terms of the 

costs that would be allowable under this 

part. We would use the term ‘‘total 

project cost’’ in § 61.16(c)(5) where we 

require that the value of matching funds 

must be for a cost that is included in the 

calculation of the total project cost, 

thereby decreasing the total 

expenditures of the grantee. 

We would define ‘‘VA National GPD 

Program’’ as ‘‘the VA Homeless 

Providers Grant and Per Diem Program.’’ 

We would use the defined term as an 

abbreviation in our regulations. 

We propose to remove the definition 

of ‘‘fee’’ in the revised rule. Currently, 

we define the term as ‘‘a fixed charge for 

a service offered by a recipient under 

this part, that is in addition to the 

services that are outlined in the 

recipient’s application; and [is] not paid 

for by VA per diem or provided by VA, 

(e.g., cable television, recreational 

outings, professional instruction or 

counseling).’’ Rather than define the 

term, we would add detail in § 61.82 

concerning participant fees and 

extracurricular fees. Under § 61.82(a), 

participant fees may be required under 

the specified circumstances, and 

extracurricular fees may be charged only 

under circumstances that are 

substantively the same as those 

specified in the current rule. Grant 

programs vary widely across the 

country, and we believe that it will be 

clearer to simply discuss fees in more 

detail in § 61.82 than to attempt to 

provide a single definition of the term 

‘‘fee.’’ 

Section 61.2 Supportive Services— 

General 

We would move the definition of 

‘‘supportive services’’ from current 

§ 61.1 into its own section, without 

substantive revision. We have done this 

because the definition is very detailed 

and contains a substantive rule that 

recipients must design supportive 

services, in addition to providing 

extensive criteria for the design of such 

services. 

Section 61.3 Notice of Fund 

Availability 

We would move the current provision 

regarding the Notice of Fund 

Availability to earlier in part 61. 

Specifically, we propose to move the 

substance of current § 61.60 to new 

§ 61.3. No substantive changes are 

proposed. 

Section 61.4 Definition of Capital 

Lease 

Under current § 61.1, a capital lease 

‘‘means a lease that will be in effect for 

the full period in which VA may recover 

all or portions of the capital grant 

amount.’’ This definition is too narrow 

because this period is, at a minimum, 20 

years (under proposed § 61.67(b)), and 

many leases will not be able to meet the 

requirement that the lease be in effect 

for the full period. Therefore, we 

propose to require that a ‘‘capital lease’’ 

be in effect for all of the period of 

recovery listed in § 61.67(b), or satisfy 

one of three criteria, including: (1) The 

lease transfers ownership to the lessee at 

the expiration of the lease term, (2) The 

lease contains a bargain purchase 

option, or (3) The present value of lease 

payments that are applied to the 

purchase are equal to or greater than 90 

percent of the fair market value of the 

asset. We had used these same three 

criteria in a prior version of this 

regulation, and attempted to simplify 

the definition in the current rule; 

however, this simplification caused 

unexpected problems. Therefore, we are 

returning to this former definition 

because it is standard for the real estate 

industry but, again, will make it 

applicable only to leases that will not 

run for 20 years or more. The provisions 

protect VA in the event that the 

improved property is used for 

something other than the purpose of the 

grant. Due to the complexity and 

substantive nature of this proposed 

definition, we would reorganize it into 

its own section. 

In addition, we would refer to a 

‘‘capital lease’’ in the regulation as a 

‘‘conditional sales contract.’’ The latter 

term is well-understood in the industry. 

Section 61.10 Capital Grants— 

General 

We propose to make some nonsubstantive changes to current § 61.10. 

Section 61.11 Capital Grants— 

Application Packages 

We would generally simplify the 

language used to describe the 

requirements of an application for a 

capital grant. 

In paragraph (b)(7)(iii), we propose to 

require that the applicant ‘‘will insure 

the site to the same extent they would 

insure a site bought with their own 

funds.’’ We believe that this 

requirement will help ensure that the 

applicant takes measures to protect the 

capital securing VA’s grant investment. 

We would remove the reference to 

‘‘vans’’ because we address capital 

grants for vans separately under 

proposed § 61.18, where we maintain 

the requirement from the current rule 

that vans be insured ‘‘to the same extent 

they would insure a van bought with 

their own funds.’’ 

In paragraph (b)(7), we propose to 

require ‘‘[a] statement from the 

applicant that all of the following are 

true’’, followed by, in paragraphs 

(b)(7)(i) through (vi), the items that 

appear in current § 61.11(b)(12). The 

current regulation requires ‘‘[r]easonable 

assurances’’ that the items are true. We 

believe that a statement to that effect is 

sufficient for purposes of the 

application. This includes, in paragraph 

(b)(7)(vi), a statement that no more than 

25 percent of the grant-awarded beds are 

occupied by non-veterans. This 

accurately reflects the statutory 

requirement that ‘‘not more than 25 

percent of the services provided under 

the project will be provided to 

individuals who are not veterans.’’ 38 

U.S.C. 2011(e)(4). A provision to enforce 

this requirement would be added at 

§ 61.80(r). 

Section 61.12 Capital Grant 

Application Packages—Threshold 

Requirements 

We would revise paragraph (a) to 

include several specific requirements 

that must be met at the ‘‘threshold’’ 

stage, or else the application will not be 

rated under § 61.13. These threshold 

requirements will help VA eliminate 

incomplete applications, applications 

by ineligible entities, and the like, prior 

to rating such applications. In 

particular, we would require that the 

applicant submit a signed Application 

for Federal Assistance (SF 424) that 

contains the employer or taxpayer 

identification number (EIN/TIN) that 

corresponds to the applicant’s Internal 

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Revenue Service 501(c)(3) or (19) 

determination letter, noting that for 

applicants that apply under a group 

EIN/TIN, the IRS letter must list the 

applicant as a sub-unit of the parent 

EIN/TIN. We would require that the 

applicant provide documentation 

showing that it is under the parent EIN/ 

TIN. Such documentation could include 

a copy of the organization directory 

identifying them as a sub-unit, or other 

similar types of documents. Including 

this material will improve our ability to 

process the application efficiently, and 

will help avoid any delays related to our 

need to request this material at a later 

date. 

We would delete current paragraph 

(c), which requires that the application 

propose to serve homeless veterans, 

because it is redundant in light of 

current paragraph (d) (paragraph (c) in 

proposed § 61.12), which requires that 

the activities for which assistance is 

requested must be eligible for funding 

under part 61. 

We would also redesignate current 

§ 61.12(i) as proposed paragraph (h) and 

add a new paragraph (i) at the end of the 

regulation. Proposed paragraph (h) 

would require that the applicant not 

have been ‘‘notified by VA as being in 

default’’ as opposed to the current rule, 

which requires that the applicant ‘‘is not 

in default.’’ By requiring that the 

applicant not have been notified as 

being in default, we can eliminate 

applicants who we suspect of being in 

default, but who are still going through 

the final process of determining actual 

default. Because VA grant funds are 

limited, permitting applicants suspected 

of being in default to remain in the 

applicant pool could seriously 

jeopardize the overall success of this 

grant program. Notification of default 

occurs after a lengthy development 

process, and we do not believe that we 

would be appropriately safeguarding the 

proper use of limited funds if we were 

to allow a grant to issue to an applicant 

who was under investigation for default. 

Proposed paragraph (i)(1) would require 

that the applicant, during the 5 years 

preceding the date of the application, 

not have had more than two grants in 

development. This will ensure that 

applicants are not overcommitted to the 

VA National GPD Program. Proposed 

paragraphs (i)(2) and (3) would 

eliminate applicants who have failed to 

establish up to two previous awarded 

grant projects or who had a previous 

grant or per diem project award 

terminated or transferred to another 

eligible entity for failure to comply with 

the terms and conditions of the award. 

Requiring adherence to these threshold 

requirements will reduce the risk to the 

Government and the public, as well as 

help homeless veterans by increasing 

the likelihood that grants will be given 

only to organizations that demonstrate 

the ability to complete projects and 

provide quality supportive housing and 

services. 

Section 61.13 Capital Grant 

Application Packages—Rating Criteria 

We propose to revise the rating 

criteria for capital and non capital grant 

applications by eliminating the rating 

for leveraging, cost effectiveness, and 

innovation; modifying the requirements 

for need, targeting, ability, and 

coordination; adding criteria for a 

completion confidence rating; and 

adjusting the minimum points necessary 

to be fundable from 600 cumulative 

points to 750 cumulative points out of 

a possible 1000. We note that these 

rating criteria would also be used to 

rank special-needs grants. This would 

reduce the redundancy of current 

application requirements, provide an 

improved picture of overall applicant 

project viability, and emphasize cost 

matching requirements, thereby 

providing an increased likelihood of 

successful project completion and the 

delivery of quality services to homeless 

veterans. Rather than offer a score based 

on leveraged funds, we propose to 

require applicants to include 

documentation showing matching funds 

as part of the application package, but 

we would not provide any additional 

score based on that documentation. This 

would be required under 

§ 61.11(b)(2)(ii). Currently, awardees 

have 30 days after conditional selection 

to submit this match documentation. 

We do not believe that requiring the 

documentation to be submitted with the 

application will be an undue burden, 

and we believe that it will eliminate 

duplication of the information at both 

the conditional and final selections. 

The remainder of proposed § 61.13 

would contain the rating criteria for 

capital grants, which we would revise to 

reflect the criteria called for under 

revisions that we are making to the 

application for a capital grant. A 

discussion of the new criteria follows. 

In proposed paragraph (b) we would 

continue to award 300 points based on 

the project plan; however, we have 

expanded and revised the items that 

must be demonstrated in order to 

receive these 300 points. According to 

internal reviewers and grant panels, 

which consist primarily of VA 

clinicians and VA homeless specialists, 

the current regulation could better 

describe to applicants the essential 

elements of a capital grantee’s program, 

such as addressing nutritional needs of 

participants, providing a clean and 

sober environment, etc. We believe that 

these revised criteria would clarify this 

information for grantees and would 

provide a better quality of service and 

care for our veterans. 

Proposed paragraph (c) would lower 

from 150 to 100 the number of points 

awarded for outreach, which is called 

‘‘targeting’’ in the current regulation. We 

have decreased the number of points 

because VA has outreach resources 

available to assist programs with this 

function. Moreover, programs that have 

historically been successful are even 

less likely to require outreach, as they 

are established and have proven their 

ability to reach and serve veterans. 

Therefore, we would take 50 points out 

of outreach and award them under 

paragraph (f), which assesses our overall 

confidence in the program’s likelihood 

of success. Completion confidence, in 

proposed paragraph (f), would enable us 

to take into account, for example, 

whether the applicant has previously 

failed to perform (e.g., had grant funds 

revoked), whether we believe that the 

applicant is overextended or has 

questionable inspection histories, etc. 

We note that the criteria under proposed 

paragraph (c) are identical to those in 

the current regulation (38 CFR 61.13(c)). 

Proposed paragraph (d) would 

continue to award 200 points based on 

the applicant’s ability to develop and 

operate a project; however, feedback 

from our review panels has been that we 

need more extensive information 

concerning who will be providing the 

services to veterans, their qualifications, 

and what percentage of their time would 

be dedicated to this activity. The revised 

criteria are intended to demonstrate that 

the program’s staff will be effective and 

capable, operationally, of meeting the 

program’s needs. We note that we 

would no longer require, as required by 

current § 61.13(d)(9), a showing of fiscal 

solvency because as a practical matter 

our application reviewers who score the 

applications are for the most part 

clinicians who do not have the expertise 

to review financial statements. More 

importantly, we do not believe that this 

is an essential element to scoring the 

application. However, we note that 

under proposed § 61.16, VA would not 

actually award a grant, irrespective of 

the score assigned to an application, 

unless the applicant can demonstrate 

sufficient funding for the project. 

Proposed paragraphs (e) and (g) 

would be identical to the current 

regulation at § 61.13(e) and (i). 

Finally, we would not include in 

these proposed rules current § 61.13(f), 

‘‘[i]nnovative quality of proposal.’’ We 

think that the proposed paragraph (f), 

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‘‘[c]ompletion confidence,’’ is based on 

actual performance and the overall 

content of the proposal. In addition, 

whether or not a project is innovative 

may not indicate whether the program 

will actually succeed. VA is not as 

concerned with whether a program is 

similar to existing programs (i.e., 

whether it is innovative) as we are with 

whether the program is likely to provide 

successful outcomes to our veterans. 

Section 61.14 Capital Grants— 

Selection of Grantees 

Proposed paragraph (a) is 

substantively identical to current 

paragraph (a). We note that the 

references to conditional selection 

would refer to the selection of 

applicants who submitted a complete 

application package, which would 

include information about matching 

funding. The current regulations do not 

require that such information be 

submitted at the threshold stage. In this 

regard, the conditional application 

process would be different under these 

new regulations, because this 

information would already have been 

submitted during the application stage. 

Proposed paragraph (b) would revise 

the ‘‘tiebreaker’’ provisions in current 

paragraph (b). Under the current rule, 

ties are broken based on the ‘‘need’’ 

score, but we propose to use the 

‘‘coordination’’ score as the tiebreaker 

because our experience in managing this 

program has shown that programs that 

are able to coordinate with other 

programs such as other supportive 

housing, health care, and social services 

programs, have more successful 

outcomes. We would similarly include 

a tiebreaker provision for per diem 

applications in proposed § 61.32(b). 

In proposed paragraph (c), we would 

reserve the right to reduce or reject 

applications that we believe will not be 

cost effective. It is substantively similar 

to current § 61.13(h), except that under 

these proposed rules it would serve as 

a basis to deny an application rather 

than as a scoring criterion because 

although we eliminated this criterion as 

a rating criterion (because costeffectiveness should not, in our view, be 

a primary consideration in determining 

the overall quality of an application), we 

continue to believe that costeffectiveness is a high priority for 

managing our program. If the program is 

highly rated but simply cannot be 

considered economically viable, it 

would be irresponsible for us to grant 

the application. More likely, if we 

believe that it is not necessary to 

provide the level of grant funds 

requested in the application, then we 

believe that we should be able to grant 

the application but decrease the amount 

of funding to what we consider a 

reasonable amount. Thus, authorizing 

reducing or rejecting the application on 

this basis will give proper weight to 

cost-effectiveness. 

In proposed paragraph (d), we would 

describe the mechanisms for the transfer 

of a grant award when a previously 

awarded recipient can no longer provide 

the services and/or housing. This 

mechanism, which is not present in the 

current rule, is needed in order to 

prevent a lapse in services to homeless 

veterans within a particular geographic 

area who were served by the prior grant 

recipient. 

Section 61.15 Capital Grants— 

Obtaining Additional Information and 

Awarding Capital Grants 

In proposed paragraph (a)(1), we 

restate the requirement that applicants 

who have been conditionally selected 

submit ‘‘[a]ny additional information 

necessary to show that the project is 

feasible, including a plan from an 

architect, contractor, or other building 

professional that provides estimated 

costs for the proposed design.’’ The 

current version requires that match 

documentation be submitted at this 

time, but under these revised 

regulations, detailed match 

documentation would be required as 

part of the initial application package. 

Therefore, we retain the mention of 

match documentation in this section but 

plan to request additional match 

documentation only when necessary. 

The rest of § 61.15 would be 

substantively identical to the current 

rule. 

Section 61.16 Matching Funds for 

Capital Grants 

Proposed paragraph (a) would restate 

much of current § 61.16. We would 

attempt to clarify, without substantive 

change, the percentages of funding that 

may be provided by VA and the 

matching funds that must be provided 

by the grantee. 

In proposed paragraph (b), we would 

restate the last sentence of current 

§ 61.16; however, we would add that 

‘‘developer’s fees’’ are not allowable 

costs because we have found that such 

fees are difficult to justify in the vast 

majority of cases. 

Proposed paragraph (c) would specify 

the documentation required to 

demonstrate the match. We believe it 

will be helpful to include the details of 

what documentation is required to 

demonstrate compliance with the 

statutory requirement in 38 U.S.C. 

2011(c). 

Section 61.17 Site Control for Capital 

Grants 

We would revise paragraph (a) to add 

that the grantee must establish control 

or ownership through assignment to the 

entity whose employer or taxpayer 

identification number is on the 

Application for Federal Assistance 

(SF424). This is necessary to ensure that 

site control rests with the grantee, i.e., 

the entity whose employer or taxpayer 

identification number is on the SF424. 

Moreover, under paragraph (a)(1) we 

would allow for alternate assignments, 

which can be used by non-profit 

organizations to assign site control to 

different divisions within their same 

organization (e.g., a non-profit 

organization using non-taxable units to 

hold the property, thereby limiting the 

liability of the greater organization). 

We note that this does not mean that 

VA will not award grants to non-profit 

organizations who are working with taxcredit entities. We would permit tax 

credit entities to use a capital lease to 

demonstrate site control. 

In proposed paragraph (a)(1), we 

would set forth criteria to grant 

alternative assignments. The criteria 

attempt to reduce opportunities to profit 

through alternative assignments, 

because our grants are not designed to 

benefit for-profit entities. 

We would also reorganize the current 

provisions for clarity. 

Proposed paragraph (c) would restate 

the 1-year deadline to establish site 

control, which is contained in current 

paragraph (a). We have added that 

grantees who do not establish control 

within 1 year may request a reasonable 

extension, or the grant may be 

terminated. This reflects current VA 

National GPD Program practice. In 

addition, we would clarify that 

extensions will be authorized if the 

grantee was not at fault for being unable 

to exercise site control and the lack of 

site control does not affect the grantee’s 

ability to complete the project. These 

are the only reasons that we would deny 

an extension. 

Section 61.18 Capital Grants for Vans 

Proposed § 61.18 would set forth in a 

separate section all current provisions 

relating to capital grants for vans. 

Because we would no longer be 

considering vans as part of the rating 

criteria for capital grants in general, we 

would add scoring criteria specific to 

vans in paragraph (d). 

Section 61.19 Transfer of Capital 

Grants 

We propose to add § 61.19, which 

describes the mechanisms for the 

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transfer of a grant award when a 

previously awarded recipient can no 

longer provide the services and/or 

housing. This is needed in order to 

prevent a lapse in services to homeless 

veterans within a particular geographic 

area who were served by the prior grant 

recipient. 

Section 61.30 Per Diem—General 

We propose to reorganize and clarify 

the information in the current rule. We 

would also add that VA may terminate 

per diem only awards if the funds are 

not being used for supportive services 

within 180 days after the date on the 

notification of award letter. 

Section 61.31 Per Diem—Application 

Packages 

Proposed § 61.31 is substantively 

identical to the current rule, except that 

we propose not to include current 

§ 61.31(b)(1), which requires that the 

application justify the need for per 

diem, because the requirement is 

unnecessary and redundant in light of 

the other, more specific application 

requirements set forth in the rule. 

Section 61.32 Per Diem Application 

Packages—Rating Criteria 

Proposed paragraph (a) is essentially 

the same as current § 61.32(a). In 

paragraph (b), we would add a 

tiebreaker provision, as discussed above 

in the discussion of proposed § 61.14. 

Section 61.33 Payment of Per Diem 

We propose to simplify the language 

throughout this section, and eliminate 

redundancy within the section. For 

example, current § 61.33(c) states that 

non-capital-grant recipients must enter 

into an agreement with VA; however, 

that requirement is currently reflected 

in §§ 61.61 and 61.32(c). Similarly, the 

current rule refers several times to 

inspection requirements, but these are 

already established in current § 61.65. 

We would eliminate these duplications 

because they are unnecessary and 

because restating them here might create 

confusion as to whether, and the extent 

to which, the other provisions also 

apply. 

Section 61.40 Special Need Grants— 

General 

In proposed § 61.40, we would clarify 

existing procedures for applying for a 

special need grant. We would also make 

the following significant change: 

Currently, we permit grantees to submit 

an application for a special need grant 

only after they have already been 

granted a capital or non-capital grant. 

Under the proposed rule, we would 

authorize awarding special need grants 

to any eligible entity that can establish 

that they would target the special need 

populations identified in this section. 

We are making this change to increase 

the pool of applicants to include those 

entities who are not already grantees. 

In accordance with the new 

application process described in § 61.40 

for special need grants, we would crossreference the rating and substantive 

requirements in the other sections that 

also would be applicable to this new 

procedure and application package. We 

would eliminate § 61.43, which sets 

forth rating criteria for special need 

application packages, because these 

applications would be scored as capital 

or non-capital grant applications. 

Section 61.41 Special Need Grants— 

Application Packages and Threshold 

Requirements 

We would combine the substance of 

current §§ 61.41 and 61.42 into 

proposed § 61.41, simplify the language 

of the current rules, and revise the 

application criteria to conform with 

proposed § 61.12, which sets forth 

threshold requirements for capital grant 

applications. We note that some 

requirements of proposed § 61.12 are 

not contained in current § 61.42, such as 

a requirement that the application be 

submitted on the correct form. We 

believe that the threshold requirements 

in proposed § 61.12 should apply to 

special need grants applications to 

provide an appropriate basis for the 

elimination of applicants who do not 

meet certain minimum standards, and 

will contribute to a more efficient 

application process overall. 

Section 61.44 Awarding Special Need 

Grants and Payment of Special Need 

Per Diem 

Proposed paragraph (a) would simply 

state the requirement for an executed 

agreement under § 61.61. 

Proposed paragraph (b) would 

describe the nature of the special need 

grant—such grants differ from capital 

and non-capital (Per Diem Only (PDO)) 

grants because the per diem payment is 

slightly higher and is based on the 

program addressing the needs of the 

targeted populations. The authorizing 

statute, 38 U.S.C. 2061, does not set 

forth either a capital grant amount or 

per diem rate for the purposes of a 

special need grant. Increased capital 

grant amounts will be provided as a 

natural result of the increased building 

and project costs related to these 

targeted populations (such as 

wheelchair ramps, other Americans 

with Disability Act building 

requirements, security locks and 

cameras for women and children, etc.). 

Special needs non-capital grants may be 

awarded for up to twice the amount of 

per diem awarded to non-special-needs 

grants. We also note that the proposed 

rule would not require a match for these 

grants, but would continue to require a 

match for special needs capital grants. 

The amount of the per diem payment 

would be the lesser of (1) 100 percent 

of the daily cost of care estimated by the 

special need recipient for furnishing 

services to homeless veterans with 

special need that the special need 

recipient certifies to be correct, minus 

any other sources of income; or (2) Two 

times the current VA State Home 

Program per diem rate for domiciliary 

care. Pursuant to 38 U.S.C. 2061(a), VA 

‘‘shall carry out a program to make 

grants to * * * grant and per diem 

providers in order to encourage 

development by those * * * providers 

of programs for homeless veterans with 

special needs.’’ Moreover, in order to 

adequately incentivize grantees to cater 

to veterans with special needs, we 

believe that the rate of per diem must be 

greater than the rate of per diem paid to 

a capital grantee who does not provide 

a program for veterans with special 

needs. Therefore, we believe that it is 

consistent with the statute to set forth 

special rates of per diem for these 

programs in order to encourage both 

capital and non-capital grantees to serve 

the targeted populations. The specific 

per diem calculation is based on what 

we believe reflects the amount of 

increased daily costs related to this 

specialty care. 

Section 61.50 Technical Assistance 

Grants—General 

We would increase the specificity in 

this regulation to help ensure that we 

select the most deserving grant 

recipients, which will further the needs 

of the overall program. The changes are 

consistent with current practice and 

with the purposes of 38 U.S.C. 2064. 

The last sentence of paragraph (a) 

would bar current recipients of any 

grant under this part (other than a 

technical assistance grant), or their subrecipients, from receiving technical 

assistance grants. Technical assistance 

grantees learn highly technical 

information and get one-on-one 

assistance from VA National GPD 

Program officials to help them provide 

accurate information to the potential 

grant applicants that they provide 

services to. As such, they are, as a 

practical matter, an extension of 

program office staff. Therefore, we 

believe that it is unfair to allow these 

grantees to compete against other 

entities for other grants under this part 

because there may be a bias perceived 

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by other applicants in favor of these 

technical assistance grantees, who, 

again, have extensive access to VA 

National GPD Program officials. 

Section 61.51 Technical Assistance 

Grants—Application Packages 

We do not propose any substantive 

changes to current § 61.51. We would 

delete current § 61.51(b)(1), which 

requires that the application justify the 

need for the grant, because the 

requirement is unnecessary and 

redundant in light of the other, more 

specific application requirements set 

forth in the rule. 

Section 61.52 Technical Assistance 

Grant Application Packages— 

Threshold Requirements 

This section is substantively identical 

to the current section, except that we 

would make it a threshold requirement 

that the applicant must not have been 

notified by VA that they were in default, 

whereas the current rule requires only 

that the applicant not be in default. We 

would also revise this requirement to 

cover those rare instances where VA 

discovers that an applicant may be in 

default during the application process, 

but VA has not been able to verify the 

default, as well as those rare instances 

where an applicant is technically in 

default but is unaware of the default and 

is able to quickly resolve the issue 

before VA institutes notification 

procedures. As noted above, VA grant 

funds are limited and permitting 

applicants suspected of being in default 

to remain in the applicant pool could 

seriously jeopardize the overall success 

of this grant program. Notification of 

default occurs after a lengthy 

development process, and we do not 

believe that we would be appropriately 

safeguarding the proper use of limited 

funds if we were to allow a grant to 

issue to an applicant who was under 

investigation for default. 

Section 61.53 Technical Assistance 

Grant Application Packages—Rating 

Criteria 

We propose to add paragraph (c)(6), 

which would allow VA to use historical 

documents of past performance both VA 

and non-VA, including those from other 

Federal, state and local agencies and 

audits by private or public entities in 

scoring applications. This will help us 

have a better perspective of the 

applicant’s overall past performance, 

which may serve as an indicator of 

future performance. 

Section 61.54 Awarding Technical 

Assistance Grants 

Much of proposed § 61.54 remains the 

same as current § 61.54, with the 

exception of a few significant changes. 

In proposed paragraph (d), we would 

change the time period during which 

VA may make payments for technical 

assistance from 3 years (with permission 

to re-apply in response to a Notice of 

Fund Availability) to ‘‘the period 

specified in the Notice of Fund 

Availability.’’ We propose this change 

because we want to be able to establish 

periods (that will generally be longer 

than 3 years), based on fund availability. 

We would remove current paragraph 

(e), which states that the amount of a 

technical assistance grant under this 

part may not exceed the cost of the 

estimated cost of the provision of 

technical assistance. Current paragraph 

(e) was superfluous because under 

current and proposed paragraph (d), the 

amount of the grant will be the 

estimated total operational cost; 

therefore, logically, the grant cannot be 

for more than that amount. 

In proposed paragraph (e), which is 

based on current paragraph (f), we 

would change, ‘‘VA will not pay for 

sustenance or lodging under a technical 

assistance grant’’ to ‘‘VA will not pay for 

sustenance or lodging for the nonprofit 

community participants or attendees at 

training conferences offered by 

technical assistance grant recipients; 

however, the grantee may use grant 

funds to recover such expenses.’’ The 

current rule can be read to bar any such 

payment related to a technical 

assistance grant activity; however, we 

did not intend to bar the grantees 

themselves from recovering these costs. 

The proposed revision will make this 

section consistent with our original 

intent. 

Section 61.55 Technical Assistance 

Reports 

We propose to make some nonsubstantive changes to current § 61.55. 

Section 61.61 Agreement and Funding 

Actions 

We would move current § 61.61(c) to 

paragraph (a), because it applies only to 

our enforcement of executed 

agreements. We would also reorganize 

provisions that appeared in current 

§ 61.61(f), (g) and (i) by moving them to 

§ 61.67(a). They provide that VA may 

seek recovery where a capital grant 

recipient fails to provide supportive 

services and/or supportive housing for 

the minimum period of operation; VA 

may obligate any recovered funds 

without fiscal year limitation; and 

where a recipient has no control over 

causes for delays in implementing a 

project, VA may extend the 3-year 

period described in current § 61.67(a), 

as appropriate. These provisions relate 

to recovery, and not to funding actions, 

and therefore it makes more 

organizational sense to locate them in 

§ 61.67, ‘‘Recovery provisions.’’ 

Otherwise, proposed paragraphs (a) 

through (e) contain the substance of 

current § 61.61 with some changes for 

purposes of readability. 

Section 61.62 Program Changes 

In proposed paragraph (b), we 

propose to eliminate the $100,000 

threshold grant amount for seeking 

approval of cumulative transfers among 

direct cost categories that exceed, or are 

expected to exceed, 10 percent of the 

approved budget. This is because some 

of our grantees do not even receive a 

grant of $100,000. In addition, we 

believe that by requiring greater 

oversight we will be able to ensure that 

the funds awarded are used for the 

purpose for which the grant was made 

and that we are aware of all changes 

between direct cost categories. 

We propose to add a new paragraph 

(f) that would require recipients to 

inform VA ‘‘in writing of any key 

position and address changes in/of their 

organization within 30 days of the 

change, i.e., new executive director or 

chief financial officer, permanent 

change of address for corporate 

communications.’’ This requirement 

will help ensure that we are aware of 

necessary contact information. 

Section 61.63 Procedural Error 

We propose to eliminate the 

requirement that when ‘‘an application 

would have been selected but for a 

procedural error committed by VA, VA 

will select that application for potential 

funding when sufficient funds become 

available if there is no material change 

in the information that resulted in its 

selection.’’ Instead, we propose to 

reconsider such an application in the 

next funding round, if there has not 

been any material change in the 

information that resulted in its 

selection. Notwithstanding that this 

provision addresses VA’s own 

procedural errors, we do not believe it 

is appropriate to require VA to select the 

overlooked applicant at the expense of 

another, better qualified applicant who 

may apply in the next funding round. 

Such a requirement could be to the 

detriment of the homeless veterans 

serviced by the project. 

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Section 61.64 Religious Organizations 

We propose to make some nonsubstantive changes to current § 61.64. 

Section 61.65 Inspections 

This section is substantively identical 

to current § 61.65, except that we would 

clarify that inspections necessary to 

determine compliance with this part 

include compliance with the terms of 

the grant agreement. This clarification 

reflects our original intent in 

promulgating this proposed rule. It is 

important to verify compliance with the 

terms of the agreement, which may 

contain specifics verifiable upon 

inspection. 

Section 61.66 Financial Management 

We propose to revise this section to 

specifically reference the CFR 

provisions which codify the 

requirement for use of accounting 

procedures set forth by the Office of 

Management and Budget Given that 

these procedures are codified in 

regulation VA grantees have already 

been subject to them, but placing them 

in this Part highlights their applicability 

to GPD grantees. 

Section 61.67 Recovery Provisions 

In proposed paragraph (b), we have 

revised the chart showing the grant 

amount/years in operation calculation 

necessary to apply the formula 

described in paragraph (b). We would 

revise the chart by extending the period 

of operation from 7 to 20 to 20 to 40 

years, and by changing the grant amount 

relating to periods of years within that 

proposed 20 to 40-year period. We did 

this to better reflect industry standards 

for both accounting and real estate 

methodologies for calculating 

depreciation and asset worth. 

Proposed paragraph (c) clarifies that 

capital grantees are subject to real 

property disposition as required by 38 

CFR 49.32 when the grantee no longer 

is providing services through a grant 

awarded under this part. This is a 

separate legal requirement that has 

always applied to grants under this part; 

we add it only to provide notice to 

grantees. 

Section 61.80 General Operation 

Requirements for Supportive Housing 

and Service Centers 

In proposed paragraph (a), we would 

require a sprinkler system unless a 

facility is specifically exempted under 

the Life Safety Code. This provision is 

to help ensure the safety of our veterans. 

We also removed language that appears 

in the current rule concerning the 

timing of compliance with the Life 

Safety Code because the deadline for 

compliance was in 2006. Thus, that 

language is outdated. 

We have added an explanation of the 

requirements for a clean and sober 

environment. These requirements are 

intended to ensure that illegal drug use 

and/or alcohol use do not prevent 

participants from peacefully enjoying 

the supportive housing or services 

provided by the grantee. These 

requirements are consistent with the 

clean and sober policies established in 

the regulations governing Housing and 

Urban Development at 24 CFR 5.855 et 

seq. 

We propose to revise paragraph (c) to 

require a quarterly technical 

performance report that must include 

information that will help VA assess 

whether the recipient is performing 

adequately. We specify that such report 

‘‘must be filed once during each quarter 

and no later than January 30, April 30, 

July 30, and October 30.’’ 

We would also add provisions 

reflecting performance measures set 

forth in the grant application. These are 

found in paragraphs (m) through (q). 

Section 61.81 Outreach Activities 

We propose to make some nonsubstantive changes to current § 61.81. 

Section 61.82 Participant Fees for 

Supportive Housing 

We propose to revise the section 

header from ‘‘Resident rent for 

supportive housing’’ to ‘‘Participant fees 

for supportive housing.’’ We also 

propose to specifically describe the 

requirements regarding the charge and 

use of such fees. We propose not to 

discuss rent, as we do in the current 

rule, because of the significant variation 

in the definitions of rents between 

localities. We believe that the proposed 

language will allow VA to operate the 

program in a more flexible, locally 

appropriate manner. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess the 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 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

12866 (Regulatory Planning and 

Review) defines a ‘‘significant 

regulatory action’’ requiring review by 

the Office of Management and Budget 

(OMB) 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 taken 

or planned 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. 

VA has examined the economic, 

interagency, budgetary, legal, and policy 

implications of this proposed rule and 

has determined that it is not a 

significant regulatory action under 

Executive Order 12866. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 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 

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 

given year. This proposed rule would 

have no such effect on state, local, or 

tribal governments, or on the private 

sector. 

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. 

The proposed rule at §§ 61.11, 61.12, 

61.15, 61.17, 61.31, 61.41, 61.51, 61.55, 

61.62 and 61.80 contains collections of 

information under the Paperwork 

Reduction Act (44 U.S.C. 3501–3521). 

Accordingly, under § 3507(d) of the Act, 

VA has submitted a copy of this 

rulemaking action to OMB for its review 

of the collections of information. 

Collections at §§ 61.11, 61.12, 61.15, 

61.17, 61.31, 61.41, 61.51, and 61.55 

have been previously approved under 

OMB 2900–0554 (Homeless Providers 

Grant and Per Diem Program). 

Collections at §§ 61.62 and 61.80 are 

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new. We are seeking an approval of the 

information collection on a nonemergency basis. Accordingly, we are 

also requesting comments on the 

collection of information provisions 

contained in §§ 61.62 and 61.80 on a 

non-emergency basis. Comments must 

be submitted by April 30, 2012. 

Comments on the collections of 

information should be submitted to the 

Office of Management and Budget, 

Attention: Desk Officer for the 

Department of Veterans Affairs, Office 

of Information and Regulatory Affairs, 

Washington, DC 20503, with copies 

mailed or hand-delivered to: Director, 

Office of Regulations Management 

(02REG), Department of Veterans 

Affairs, 810 Vermont Ave., NW., Room 

1063B, Washington, DC 20420. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AN81.’’ 

Title: VA Homeless Providers Grant 

and Per Diem Program. 

Summary of collection of information: 

The proposed rule at §§ 61.11, 61.12, 

61.15, 61.17, 61.31, 61.41, 61.51, 61.55, 

61.62 and 61.80 contains application 

provisions for capital grants, per diem, 

special need payment, program changes, 

and program performance. Collections 

at §§ 61.11, 61.12, 61.15, 61.31, 61.41, 

and 61.55 have been previously 

approved under OMB 2900–0554. 

Collections at §§ 61.62 and 61.80 are 

new. However, they may be in any 

acceptable business format and should 

not be a burden upon grant recipients as 

they already collect this information. 

Application provisions for capital 

grants and per diem and special need 

payment. 

Description of the need for 

information and proposed use of 

information: This information is needed 

to determine eligibility for capital grants 

and per diem and special need payment. 

Description of likely respondents: 

Public or nonprofit private entities 

requesting a capital grant. 

Estimated number of respondents per 

year: 200. 

Estimated frequency of responses per 

year: 1. 

Estimated total annual reporting and 

recordkeeping burden: 7,000 hours. 

Estimated annual burden per 

collection: 35 hours. 

Application provisions for per diem 

for non-capital grant recipients. 

Description of the need for 

information and proposed use of 

information: This information is needed 

to determine eligibility for per diem. 

Description of likely respondents: 

Public or nonprofit private entities 

requesting per diem. 

Estimated number of respondents per 

year: 250. 

Estimated frequency of responses per 

year: 1. 

Estimated total annual reporting and 

recordkeeping burden: 35 hours. 

Estimated annual burden per 

collection: 8,750 hours. 

The Department considers comments 

by the public on collections of 

information in— 

• Evaluating whether the collections 

of information are necessary for the 

proper performance of the functions of 

the Department, including whether the 

information will have practical utility; 

• Evaluating the accuracy of the 

Department’s estimate of the burden of 

the collections of information, including 

the validity of the methodology and 

assumptions used; 

• Enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• Minimizing the burden of the 

collections of information on those who 

are to respond, including responses 

through the use of appropriate 

automated, electronic, mechanical, or 

other technological collection 

techniques or other forms of information 

technology, e.g., permitting electronic 

submission of responses. 

OMB is required to make a decision 

concerning the collections of 

information contained in this rule 

between 30 and 60 days after 

publication of this document in the 

Federal Register. Therefore, a comment 

to OMB is best assured of having its full 

effect if OMB receives it within 30 days 

of publication. This does not affect the 

deadline for the public to comment on 

the proposed rule. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed 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 

proposed rule would only impact those 

entities that choose to participate in the 

VA Homeless Providers Grant and Per 

Diem Program. Small entity applicants 

would 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 

proposed 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 proposed rule is exempt 

from the initial and final regulatory 

flexibility analysis requirement of 

sections 603 and 604. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance numbers and titles for the 

programs affected by this document are 

64.009, Veterans Medical Care Benefits; 

64.024, VA Homeless Providers Grant 

and Per Diem Program. 

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 approved this document on 

February 23, 2012, for publication. 

List of Subjects in 38 CFR Part 61 

Administrative practice and 

procedure, Alcohol abuse, Alcoholism, 

Day care, Dental health, Drug abuse, 

Government contracts, Grant 

programs—health, Grant programs— 

veterans, Health care, Health facilities, 

Health professions, Health records, 

Homeless, Mental health programs, 

Reporting and recordkeeping 

requirements, Travel and transportation 

expenses, Veterans. 

Dated: February 24, 2012. 

William F. Russo, 

Deputy Director, Office of Regulation Policy 

and Management, Office of the General 

Counsel, Department of Veterans Affairs. 

For the reasons set forth in the 

preamble, we propose to amend 38 CFR 

part 61 as follows: 

PART 61—VA HOMELESS PROVIDERS 

GRANT AND PER DIEM PROGRAM 

1. The authority citation for part 61 is 

revised to read as follows: 

Authority: 38 U.S.C. 501, 2001, 2002, 2011, 

2012, 2061, 2064. 

2. Part 61 is revised to read as follows: 

Sec. 

General Provisions 

61.0 Purpose. 

61.1 Definitions. 

61.2 Supportive services—general. 

61.3 Notice of Fund Availability. 

61.4 Definition of capital lease. 

Capital Grants 

61.10 Capital grants—general. 

61.11 Capital grants—application packages. 

61.12 Capital grant application packages— 

threshold requirements. 

61.13 Capital grant application packages— 

rating criteria. 

61.14 Capital grants—selection of grantees. 

61.15 Capital grants—obtaining additional 

information and awarding capital grants. 

61.16 Matching funds for capital grants. 

61.17 Site control for capital grants. 

61.18 Capital grants for vans. 

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61.19 Transfer of capital grants. 

Per Diem Payments 

61.30 Per diem—general. 

61.31 Per diem—application packages. 

61.32 Per diem application packages— 

rating criteria. 

61.33 Payment of per diem. 

Special Need Grants 

61.40 Special need grants—general. 

61.41 Special need grants—application 

packages and threshold requirements. 

61.44 Awarding special need grants and 

payment of special need per diem. 

Technical Assistance Grants 

61.50 Technical assistance grants—general. 

61.51 Technical assistance grants— 

application packages. 

61.52 Technical assistance grant 

application packages—threshold 

requirements. 

61.53 Technical assistance grant 

application packages—rating criteria. 

61.54 Awarding technical assistance grants. 

61.55 Technical assistance reports. 

Awards, Monitoring, and Enforcement of 

Agreements 

61.61 Agreement and funding actions. 

61.62 Program changes. 

61.63 Procedural error. 

61.64 Religious organizations. 

61.65 Inspections. 

61.66 Financial management. 

61.67 Recovery provisions. 

61.80 General operation requirements for 

supportive housing and service centers. 

61.81 Outreach activities. 

61.82 Participant fees for supportive 

housing. 

General Provisions 

§ 61.0 Purpose. 

This part implements the VA 

Homeless Providers Grant and Per Diem 

Program which consists of the following 

components: capital grants, per diem, 

special need capital and non-capital 

grants, and technical assistance grants. 

(Authority: 38 U.S.C. 501, 2001, 2002, 2011, 

2012, 2061, 2064) 

§ 61.1 Definitions. 

For purposes of this part: 

Area or community means a political 

subdivision or contiguous political 

subdivisions (such as a precinct, ward, 

borough, city, county, State, 

Congressional district, etc.) with a 

separately identifiable population of 

homeless veterans. 

Capital grant means a grant for 

construction, renovation, or acquisition 

of a facility, or a grant for acquisition of 

a van. 

Capital lease is defined by § 61.4. 

Chronically mentally ill means a 

condition of schizophrenia or major 

affective disorder (including bipolar 

disorder) or post-traumatic stress 

disorder (PTSD), based on a diagnosis 

from a licensed mental health 

professional, with at least one 

documented hospitalization for this 

condition sometime in the last 2 years 

or with documentation of a formal 

assessment on a standardized scale of 

any serious symptomatology or serious 

impairment in the areas of work, family 

relations, thinking, or mood. 

Default means a determination by VA 

that an awardee has materially failed to 

comply with the terms and conditions 

of an award. 

Fixed site means a physical structure 

that under normal conditions is not 

capable of readily being moved from 

one location to another location. 

Frail elderly means 65 years of age or 

older with one or more chronic health 

problems and limitations in performing 

one or more activities of daily living 

(such as bathing, toileting, transferring 

from bed to chair, etc.). 

Homeless has the meaning given that 

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

U.S.C. 11302(a)). 

New construction means building a 

structure where none existed, or 

building an addition to an existing 

structure that increases the floor area by 

more than 100 percent. 

Nonprofit organization means a 

private organization, no part of the net 

earnings of which may inure to the 

benefit of any member, founder, 

contributor, or individual. The 

organization must be recognized as a 

section 501(c)(3) or 501(c)(19) nonprofit 

organization by the United States 

Internal Revenue Service, and meet all 

of the following criteria: 

(1) Have a voluntary board; 

(2) Have a functioning accounting 

system that is operated in accordance 

with generally accepted accounting 

principles, or designate an entity to 

maintain such a functioning accounting 

system; and 

(3) Practice nondiscrimination in the 

provision of supportive housing and 

supportive services assistance. 

Notice of Fund Availability (NOFA) 

means a notice published in the Federal 

Register in accordance with § 61.60. 

Operating costs means expenses 

incurred in operating supportive 

housing, supportive services or service 

centers with respect to: 

(1) Administration (including staff 

salaries; costs associated with 

accounting for the use of grant funds, 

preparing reports for submission to VA, 

obtaining program audits, and securing 

accreditation; and similar costs related 

to administering the grant after the 

award), maintenance, repair and 

security for the supportive housing; 

(2) Van costs or building rent (except 

under capital leases), e.g., fuel, 

insurance, utilities, furnishings, and 

equipment; 

(3) Conducting on-going assessments 

of supportive services provided for and 

needed by participants and the 

availability of such services; and 

(4) Other costs associated with 

operating the supportive housing. 

Operational means a program for 

which all VA inspection requirements 

under this part have been met and an 

activation document has been issued by 

the VA National GPD Program. 

Outpatient health services means 

outpatient health care, outpatient 

mental health services, outpatient 

alcohol and/or substance abuse services, 

and case management. 

Participant means a person receiving 

services based on a grant or per diem 

provided under this part. 

Participant agreement means any 

written or implied agreement between a 

grant recipient agency and a program 

participant that outlines the 

requirements for program compliance, 

participant or service delivery. 

Project means all activities that define 

the parameters of the purpose of the 

grant. 

Public entity means any of the 

following: 

(1) A county, municipality, city, town, 

township, local public authority 

(including any public and Indian 

housing agency under the United States 

Housing Act of 1937), school district, 

special district, intrastate district, 

council of governments (whether or not 

incorporated as a nonprofit corporation 

under state law), any other regional or 

interstate government entity, or any 

agency or instrumentality of a local 

government; or 

(2) The governing body or a 

governmental agency of any Indian 

tribe, band, nation, or other organized 

group or community (including any 

Native village as defined in § 3 of the 

Alaska Native Claims Settlement Act, 85 

Stat 688) certified by the Secretary of 

the Interior as eligible for the special 

programs and services provided by the 

Bureau of Indian Affairs. 

Recipient means the entity whose 

employer or taxpayer identification 

number is on the Application for 

Federal Assistance (SF 424) and is 

consequently responsible to comply 

with all terms and conditions of the 

award. For the purpose of this part the 

terms ‘‘grantee’’, ‘‘recipient’’, and 

‘‘awardee’’ are synonymous and 

interchangeable. 

Rehabilitation means the 

improvement or repair of an existing 

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structure. Rehabilitation does not 

include minor or routine repairs. 

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 United States Housing Act 

of 1937. 

Supportive housing means housing 

with supportive services provided for 

homeless veterans that: 

(1) Is not shelter care, other emergent 

housing, or housing designed to be 

permanent or long term (more than 24 

months), with no requirement to move; 

and 

(2) Is designed to either: 

(i) Facilitate the movement of 

homeless veterans to permanent 

housing within a period that is not less 

than 90 days and does not exceed 24 

months, subject to § 61.80; or 

(ii) Provide specific medical treatment 

such as detoxification, respite, or 

hospice treatments that are used as stepup or step-down programs within that 

specific project’s continuum. 

Supportive services has the meaning 

assigned to it under § 61.2. 

Terminally ill means a prognosis of 9 

months or less to live, based on a 

written medical diagnosis from a 

physician. 

Total project cost means the sum of 

all costs incurred by a recipient for the 

acquisition, rehabilitation, and new 

construction of a facility, or van(s), 

identified in a grant application. 

VA means the Department of Veterans 

Affairs. 

VA National GPD Program refers to 

the VA Homeless Providers Grant and 

Per Diem Program. 

Veteran means a person who served 

in the active military, naval, or air 

service, and who was discharged or 

released there from under conditions 

other than dishonorable. 

(Authority: 38 U.S.C. 501, 2002, 2011, 2012, 

2061, 2064) 

§ 61.2 Supportive services—general. 

(a) Recipients must design supportive 

services. Such services must provide 

appropriate assistance, or aid 

participants in obtaining appropriate 

assistance, to address the needs of 

homeless veterans. The following are 

examples of supportive services: 

(1) Outreach activities; 

(2) Providing food, nutritional advice, 

counseling, health care, mental health 

treatment, alcohol and other substance 

abuse services, case management 

services; 

(3) Establishing and operating child 

care services for dependents of 

homeless veterans; 

(4) Providing supervision and security 

arrangements necessary for the 

protection of residents of supportive 

housing and for homeless veterans using 

supportive housing or services; 

(5) Assistance in obtaining permanent 

housing; 

(6) Education, employment 

counseling and assistance, and job 

training; 

(7) Assistance in obtaining other 

Federal, State and local assistance 

available for such residents including 

mental health benefits, employment 

counseling and assistance, veterans’ 

benefits, medical assistance, and income 

support assistance; and 

(8) Providing housing assistance, legal 

assistance, advocacy, transportation, 

and other services essential for 

achieving and maintaining independent 

living. 

(b) Supportive services do not include 

inpatient acute hospital care. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061) 

§ 61.3 Notice of Fund Availability. 

When funds are made available for a 

grant or per diem award under this part, 

VA will publish a Notice of Fund 

Availability in the Federal Register. The 

notice will: 

(a) Give the location for obtaining 

application packages; 

(b) Specify the date, time, and place 

for submitting completed applications; 

(c) State the estimated amount and 

type of funding available; and 

(d) State any priorities for or 

exclusions from funding to meet the 

statutory mandate of 38 U.S.C. 2011, to 

ensure that awards do not result in the 

duplication of ongoing services and to 

reflect the maximum extent practicable 

appropriate geographic dispersion and 

an appropriate balance between urban 

and nonurban locations. 

(e) Provide other information 

necessary for the application process, 

such as the grant period, where 

applicable. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 

2064) 

§ 61.4 Definition of capital lease. 

A capital lease, for purposes of this 

part, means a conditional sales contract 

that either: 

(a) Will be in effect for all of the 

period of recovery listed in § 61.67(b); or 

(b) That satisfies one of the following 

criteria: 

(1) The lease transfers ownership to 

the lessee at the expiration of the lease 

term. 

(2) The lease contains a bargain 

purchase option. 

(3) The present value of lease 

payments that are applied to the 

purchase are equal to or greater than 90 

percent of the fair market value of the 

asset. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 

2064) 

Capital Grants 

§ 61.10 Capital grants—general. 

(a) Subject to the availability of 

appropriations provided for such 

purpose, VA will provide capital grants 

to public or nonprofit private entities so 

they can assist homeless veterans by 

helping to ensure the availability of 

supportive housing and service centers 

to furnish outreach, rehabilitative 

services, and vocational counseling and 

training. Specifically, VA provides 

capital grants for up to 65 percent of the 

cost to: 

(1) Construct structures and purchase 

the underlying land to establish new 

supportive housing facilities or service 

centers, or to expand existing 

supportive housing facilities or service 

centers; 

(2) Acquire structures to establish 

new supportive housing facilities or 

service centers, or to expand existing 

supportive housing facilities or service 

centers; and 

(3) Renovate existing structures to 

establish new supportive housing 

facilities or service centers, or to expand 

existing supportive housing facilities or 

service centers. 

(4) Procure a van in accordance with 

§ 61.18 Capital grants for vans. 

(b) Capital grants may not be used for 

acquiring buildings located on VAowned property. However, capital 

grants may be awarded for construction, 

expansion, or renovation of buildings 

located on VA-owned property. 

(Authority: 38 U.S.C. 501, 2011) 

§ 61.11 Capital grants—application 

packages. 

(a) General. To apply for a capital 

grant, an applicant must obtain from, 

complete, and submit to VA a capital 

grant application package within the 

time period established in the Notice of 

Fund Availability. 

(b) Content of application. The capital 

grant application package will require 

the following: 

(1) Site description, site design, and 

site cost estimates. 

(2) Documentation supporting: 

(i) Eligibility to receive a capital grant 

under this part; 

(ii) Matching funds committed to the 

project; 

(iii) A proposed operating budget and 

cost sharing; 

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(iv) Supportive services committed to 

the project; 

(v) The applicant’s authority to 

control the site and meet appropriate 

zoning laws; and 

(vi) The boundaries of the area or 

community that would be served. 

(3) If capital grant funds would be 

used for acquisition or rehabilitation, 

documentation demonstrating that the 

costs associated with acquisition or 

rehabilitation are less than the costs 

associated with new construction. 

(4) If capital grant funds would be 

used for new construction, 

documentation demonstrating that the 

costs associated with new construction 

are less than the costs associated with 

rehabilitation of an existing building, 

that there is a lack of available 

appropriate units that could be 

rehabilitated at a cost less than new 

construction, and that new construction 

is less costly than acquisition of an 

existing building (for purposes of this 

cost comparison, costs associated with 

rehabilitation or new construction may 

include the cost of real property 

acquisition). 

(5) If proposed construction includes 

demolition: 

(i) A demolition plan that describes 

the extent and cost of existing site 

features to be removed, stored, or 

relocated; and 

(ii) Information establishing that the 

proposed construction is either in the 

same location as the building to be 

demolished or that the demolition is 

inextricably linked to the design of the 

construction project. Without such 

information, the cost of demolition 

cannot be included in the cost of 

construction. 

(6) If the applicant is a state, 

comments or recommendations by 

appropriate state (and area wide) 

clearinghouses pursuant to E.O. 12372 

(3 CFR, 1982 Comp., p. 197). 

(7) A statement from the applicant 

that all of the following are true: 

(i) The project will furnish to veterans 

the level of care for which such 

application is made, and services 

provided will meet the requirements of 

this part. 

(ii) The applicant will continue to 

operate the project until the expiration 

of the period during which VA could 

seek full recovery under § 61.67. 

(iii) Title to the site will vest solely in 

the applicant and the applicant will 

insure the site to the same extent they 

would insure a site bought with their 

own funds. 

(iv) Adequate financial support will 

be available for the completion of the 

project. 

(v) The applicant will keep records 

and submit reports as VA may 

reasonably require, within the time 

frames required, and, upon demand, 

allow VA access to the records upon 

which such information is based. 

(vi) The applicant will state that no 

more than 25 percent of the grantawarded beds are occupied by nonveterans. 

(c) Multiple capital grant 

applications. Subject to § 61.12(i), 

applicants may apply for more than one 

capital grant. 

(Authority: 38 U.S.C. 501, 2011) 

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

§ 61.12 Capital grant application 

packages—threshold requirements. 

The following threshold requirements 

for a capital grant application must be 

met, or the application will be rejected 

before being rated under § 61.13: 

(a) The application package must 

meet all of the following criteria: 

(1) Be on the correct application form. 

(2) Be completed in all parts, 

including all information requested in 

the Notice of Fund Availability and 

application package. 

(3) Include a signed Application for 

Federal Assistance (SF 424) that 

contains the Employer Identification 

Number or Taxpayer Identification 

Number (EIN/TIN) that corresponds to 

the applicant’s Internal Revenue Service 

(IRS) 501(c)(3) or (19) determination 

letter. All applicants must provide such 

an IRS determination letter, which 

includes their EIN/TIN. Applicants that 

apply under a group EIN/TIN, must be 

identified by the parent EIN/TIN as a 

member or sub-unit of the parent EIN/ 

TIN, and provide supporting 

documentation. 

(4) Be submitted before the deadline 

established in the Notice of Fund 

Availability. 

(b) The applicant must be a public or 

nonprofit private entity at the time of 

application. 

(c) The activities for which assistance 

is requested must be eligible for funding 

under this part. 

(d) The applicant must demonstrate 

that adequate financial support will be 

available to carry out the project for 

which the capital grant is sought, 

consistent with the plans, 

specifications, and schedule submitted 

by the applicant. 

(e) The application must demonstrate 

compliance with the Uniform 

Relocation Assistance and Real Property 

Acquisition Policies Act of 1970 (URA) 

(42 U.S.C. 4601–4655). 

(f) The applicant must agree to 

comply with the requirements of this 

part and demonstrate the capacity to do 

so. 

(g) The applicant must not have an 

outstanding obligation to VA that is in 

arrears, or have an overdue or 

unsatisfactory response to an audit. 

(h) The applicant must not have been 

notified by VA as being in default. 

(i) The applicant, during the 5 years 

preceding the date of the application, 

must not have done any of the 

following: 

(1) Had more than two grants awarded 

under this part that remain in 

development; 

(2) Failed to establish two previous 

awarded grant projects under this part; 

or 

(3) Had a previous grant or per diem 

project awarded under this part 

terminated or transferred to another 

eligible entity for failure to comply with 

the terms and conditions of the award. 

(Authority: 38 U.S.C. 501, 2011) 

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

§ 61.13 Capital grant application 

packages—rating criteria. 

(a) General. Applicants that meet the 

threshold requirements in § 61.12 will 

be rated using the selection criteria 

listed in this section. To be eligible for 

a capital grant, an applicant must 

receive at least 750 points (out of a 

possible 1000) and must receive points 

under each of the following paragraphs 

(b), (c), (d), (e) (f) and (g) of this section. 

(b) Project Plan. VA will award up to 

300 points based on the demonstration 

and quality of the following: 

(1) The selection of the proposed 

housing in light of the population to be 

served. 

(2) The process used for deciding 

which veterans are appropriate for 

admission. 

(3) How, when, and by whom the 

progress of participants toward meeting 

their individual goals will be monitored, 

evaluated, and documented. 

(4) The role program participants will 

have in operating and maintaining the 

housing. 

(5) The responsibilities the applicant, 

sponsors, or contractors will have in 

operating and maintaining the housing. 

(6) The supportive services that will 

be provided and by whom to help 

participants achieve residential 

stability, increase skill level and/or 

income, and become involved in making 

life decisions that will increase selfdetermination. 

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(7) The measureable objectives that 

will be used to determine success of the 

supportive services. 

(8) How the success of the program 

will be evaluated on an ongoing basis. 

(9) How the nutritional needs of 

veterans will be met. 

(10) How the agency will ensure a 

clean and sober environment. 

(11) How participants will be assisted 

in assimilating into the community 

through access to neighborhood 

facilities, activities, and services. 

(12) How the proposed project will be 

implemented in a timely fashion. 

(13) How permanent affordable 

housing will be identified and made 

known to participants upon leaving the 

supportive housing. 

(14) How participants will be 

provided necessary follow-up services. 

(15) The description of program 

policies regarding participant 

agreements, rent, and fees. 

(c) Outreach to persons on streets and 

in shelters. VA will award up to 100 

points based on: 

(1) The agency’s outreach plan to 

serve homeless veterans living in places 

not ordinarily meant for human 

habitation (e.g., streets, parks, 

abandoned buildings, automobiles, 

under bridges, in transportation 

facilities) and those who reside in 

emergency shelters; and 

(2) The likelihood that proposed plans 

for outreach and selection of 

participants will result in these 

populations being served. 

(d) Ability of applicant to develop and 

operate a project. VA will award up to 

200 points based on the extent to which 

the application demonstrates the 

necessary staff and organizational 

experience to complete and operate the 

proposed project, based on the 

following: 

(1) Staffing plan for the project that 

reflects the appropriate professional 

staff, both administrative and clinical; 

(2) Experience of staff, if staff not yet 

hired, position descriptions and 

expectations of time to hire; 

(3) Amount of time each staff position 

is dedicated to the project, and in what 

capacity; 

(4) Applicant’s previous experience 

assessing and providing for the housing 

needs of homeless veterans; 

(5) Applicant’s previous experience 

assessing and providing supportive 

services for homeless veterans; 

(6) Applicant’s previous experience 

assessing supportive service resources 

and entitlement benefits; 

(7) Applicant’s previous experience 

with evaluating the progress of both 

individual participants and overall 

program effectiveness using quality and 

performance data to make changes; 

(8) Applicant’s previous experience 

operating housing for homeless 

individuals; 

(9) Overall agency organizational 

overview (org. chart); and 

(10) Historical documentation of past 

performance both with VA and non-VA 

projects, including those from other 

Federal, state and local agencies and 

audits by private or public entities. 

(e) Need. VA will award up to 150 

points based on the extent to which the 

applicant demonstrates: 

(1) Substantial unmet needs, 

particularly among the target population 

living in places not ordinarily meant for 

human habitation such as the streets, 

emergency shelters, based on reliable 

data from surveys of homeless 

populations or other reports or data 

gathering mechanisms that directly 

support claims made; and 

(2) An understanding of the homeless 

population to be served and its unmet 

housing and supportive service needs. 

(f) Completion confidence. VA will 

award up to 50 points based on the 

review panel’s confidence that the 

applicant has effectively demonstrated 

the supportive housing or service center 

project will be completed as described 

in the application. VA may use 

historical program documents of past 

performance both VA and non-VA, 

including those from other Federal, state 

and local agencies as well as audits by 

private or public entities in determining 

confidence scores. 

(g) Coordination with other programs. 

VA will award up to 200 points based 

on the extent to which applicants 

demonstrate that they have coordinated 

with Federal, state, local, private and 

other entities serving homeless persons 

in the planning and operation of the 

project. Such entities may include 

shelter transitional housing, health care, 

or social service providers; providers 

funded through Federal initiatives; local 

planning coalitions or provider 

associations; or other program providers 

relevant to the needs of homeless 

veterans in the local community. 

Applicants are required to demonstrate 

that they have coordinated with the VA 

medical care facility of jurisdiction and/ 

or VA Regional Office of jurisdiction in 

their area. VA will award up to 50 

points of the 200 points based on the 

extent to which commitments to 

provide supportive services are 

documented at the time of application. 

Up to 150 points of the 200 points will 

be given to the extent applicants 

demonstrate that: 

(1) They are part of an ongoing 

community-wide planning process 

within the framework described above 

which is designed to share information 

on available resources and reduce 

duplication among programs that serve 

homeless veterans; 

(2) They have consulted directly with 

the closest VA Medical Center and other 

providers within the framework 

described above regarding coordination 

of services for project participants; and 

(3) They have coordinated with the 

closest VA Medical Center their plan to 

assure access to health care, case 

management, and other care services. 

(Authority: 38 U.S.C. 501, 2011) 

§ 61.14 Capital grants—selection of 

grantees. 

(a) Applicants will first be grouped in 

categories according to the funding 

priorities set forth in the NOFA, if any. 

Applicants will then be ranked, within 

their respective funding category if 

applicable. The highest-ranked 

applications for which funding is 

available, within highest priority 

funding category if applicable, will be 

conditionally selected to receive a 

capital grant in accordance with their 

ranked order, as determined under 

§ 61.13. If funding priorities have been 

established and funds are still available 

after selection of those applicants in the 

highest priority group VA will continue 

to conditionally select applicants in 

lower priority categories in accordance 

with the selection method set forth in 

this paragraph subject to available 

funding. 

(b) In the event of a tie between 

applicants, VA will use the score from 

§ 61.13(g) to determine the ranking. If 

the score from § 61.13(g) is also tied, VA 

will use the score from § 61.13(d) to 

determine the ranking. 

(c) VA may reject an application 

where the project is not cost effective 

based on the cost and number of new 

supportive housing beds made 

available—or based on the cost, amount, 

and types of supportive services made 

available—when compared to other 

supportive housing or services projects, 

and when adjusted for high cost areas. 

For those applications that VA believes 

not to be cost-effective VA will: 

(1) Reduce the award; or 

(2) Not select the application for 

funding. 

(d) In the case of a previously 

awarded project that can no longer 

provide services and or housing and the 

recipient agency has decided to 

withdraw or the project has been 

terminated for failure to comply with 

the terms and conditions of the award; 

VA may transfer a capital grant or noncapital grant to another eligible entity in 

the same geographical area without 

competition, in order to prevent a loss 

of capacity of services and housing to 

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homeless veterans. The new entity must 

meet all of the requirements to which 

the original grantee was subject. In the 

case of a capital grant transfer the new 

grantee will only be entitled to the 

funding that remains from the original 

capital obligation and remains 

responsible for all commitments made 

by the original grantee. 

(Authority: 38 U.S.C. 501, 2011) 

§ 61.15 Capital grants—obtaining 

additional information and awarding capital 

grants. 

(a) Each applicant who has been 

conditionally selected for a capital grant 

will be requested by VA to submit 

additional documentation or 

information as necessary, including: 

(1) Any additional information 

necessary to show that the project is 

feasible, including a plan from an 

architect, contractor, or other building 

professional that provides estimated 

costs for the proposed design; 

(2) Documentation showing the 

sources of funding for the project and 

firm financing commitments for the 

matching requirements described in 

§ 61.16; 

(3) Documentation establishing site 

control described in § 61.17; 

(4) Documentation establishing 

compliance with the National Historic 

Preservation Act (16 U.S.C. 470); 

(5) Information necessary for VA to 

ensure compliance both with Uniform 

Federal Accessibility Standards (UFAS) 

and the Americans with Disabilities Act 

Accessibility Guidelines; 

(6) Documentation establishing 

compliance with local and state zoning 

codes; 

(7) Documentation in the form of one 

set of design development (35 percent 

completion) drawings demonstrating 

compliance with local codes, state 

codes, and the current Life Safety Code 

of the National Fire Protection 

Association; 

(8) Information necessary for VA to 

ensure compliance with the provisions 

of the National Environmental Policy 

Act (42 U.S.C. 4321 et seq.); 

(9) A site survey performed by a 

licensed land surveyor; and 

(10) Such other documentation as 

specified by VA in writing or verbally 

to the applicant to confirm or clarify 

information provided in the application. 

(b) Items requested under paragraph 

(a) of this section must be received by 

VA in acceptable form within the time 

frame established in accordance with 

the Notice of Fund Availability. 

(c) Following receipt of the additional 

information in acceptable form, VA will 

execute an agreement and make 

payments to the grant recipient in 

accordance with § 61.61 and other 

applicable provisions of this part. 

(Authority: 38 U.S.C. 501, 2011) 

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

§ 61.16 Matching funds for capital grants. 

(a) VA cannot award a capital grant 

for more than 65 percent of the total 

allowable costs of the project. The 

grantee must provide funding 

(‘‘matching funding’’) for the remaining 

35 percent of the total cost, using nonfederal funds. VA requires that 

applicants provide documentation of all 

costs related to the project including 

those that are not allowable under OMB 

Circular A–122 as codified at 2 CFR part 

230. Allowable costs means those 

related to the portion (percentage) of the 

property that would be used to provide 

supportive housing and services under 

this part. 

(b) Capital grants may include 

application costs, including site 

surveys, architectural, and engineering 

fees, but may not include relocation 

costs or developer’s fees. 

(c) Documentation of matching funds. 

The matching funds described in 

paragraph (a) of this section must be 

documented as follows; no other format 

will be accepted as evidence of a firm 

commitment of matching funds: 

(1) Donations must be on the donor’s 

letterhead, signed and dated. 

(2) The applicant’s own cash must be 

committed on the applicant’s letterhead, 

signed, and dated. 

(3) No conditions may be placed on 

the matching funds other than the 

organization’s receipt of the capital 

grant. 

(4) Funds must be committed to the 

same activity as the capital grant 

application (i.e., acquisition, renovation, 

new construction, or a van), and must 

not relate to operating costs or services. 

(5) The value of matching funds must 

be for a cost that is included in the 

calculation of the total project cost, 

thereby decreasing the total 

expenditures of the grantee. 

(d) Van applications. The 

requirements of this section also apply 

to applications for a capital grant for a 

van under § 61.18. 

(Authority: 38 U.S.C. 501, 2011) 

§ 61.17 Site control for capital grants. 

(a) In order to receive a capital grant 

for supportive housing or a fixed site 

service center, an applicant must 

demonstrate site control. Site control 

must be demonstrated through a deed or 

an executed contract of sale, or a capital 

lease, which assigns control or 

ownership to the entity whose Federal 

employer or taxpayer identification 

number is on the Application for 

Federal Assistance (SF424), unless one 

of the following apply: 

(1) VA gives written permission for an 

alternate assignment. VA will permit 

alternate assignments except when: 

(i) The alternate assignment is to a forprofit entity which is neither controlled 

by the applicant or by the applicant’s 

parent organization or the entity is 

controlled by the applicant’s parent 

organization which is a for-profit entity; 

or 

(ii) VA has a reasonable concern that 

the assignment may provide an 

economic or monetary benefit to the 

assignee other than the benefit that 

would have inured to the applicant had 

the applicant not made the alternate 

assignment. 

(2) The site is in a building or on land 

owned by VA, and the applicant has an 

agreement with VA for site control. 

(b) A capital grant recipient may 

change the site to a new site meeting the 

requirements of this part subject to VA 

approval under § 61.62. However, the 

recipient is responsible for and must 

demonstrate ability to provide for any 

additional costs resulting from the 

change in site. 

(c) If site control is not demonstrated 

within 1 year after execution of an 

agreement under § 61.61, the grantee 

may request a reasonable extension from 

the VA national GPD office, or the grant 

may be terminated. VA will authorize 

an extension request if the grantee was 

not at fault for being unable to exercise 

site control and the lack of site control 

does not affect the grantee’s ability to 

complete the project. 

(Authority: 38 U.S.C. 501, 2011) 

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

§ 61.18 Capital grants for vans. 

(a) General. A capital grant may be 

used to procure one or more vans, as 

stated in a NOFA, to provide 

transportation or outreach for the 

purpose of providing supportive 

services. The grant may cover the 

purchase price, sales taxes, and title and 

licensing fees. Title to the van must vest 

solely in the applicant, and the 

applicant must insure the van to the 

same extent they would insure a van 

bought with their own funds. 

(b) Who can apply for a van. VA will 

only award vans to applicants who 

currently have an operational grant 

under this part, or in conjunction with 

a new application. 

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(c) Application packages for van(s). In 

order to receive a van, the application 

must demonstrate the following: 

(1) Clear need for the van(s); 

(2) Specific use of the van(s); 

(3) Frequency of use of the van(s); 

(4) Qualifications of the van driver(s); 

(5) Training of the van driver(s); 

(6) Type of van(s) to be obtained; and 

(7) Adequate financial support will be 

available for the completion of the 

project or for the purchase and 

maintenance, repair, and operation of 

the van(s). 

(d) Rating criteria. Applications will 

be scored using the selection criteria 

listed in this section. To be eligible for 

a van grant, an applicant must receive 

at least 80 points (out of a possible 100) 

of this section. 

(1) Need. VA will award up to 60 

points based on the extent to which the 

applicant demonstrates a substantial 

unmet need for transportation due to: 

(i) Lack of alternative public 

transportation, 

(ii) Project location, 

(iii) Expired life use of current van, or 

(iv) Special disabled individual 

transportation. 

(2) Activity. VA will award up to 20 

points based on the extent to which the 

applicant demonstrates: 

(i) Frequency of use, 

(ii) Type of use, and 

(iii) Type of van, e.g., whether there 

is a justification for a van with a 

wheelchair lift or other modifications. 

(3) Operator Qualification. VA will 

award up to 20 points based on the 

extent to which the applicant 

demonstrates a job description for the 

van operator that details: 

(i) Requirements of the position, and 

(ii) Training that will be provided to 

the driver. 

(Authority: 38 U.S.C. 501, 2011) 

§ 61.19 Transfer of capital grants. 

In the case of a previously awarded 

project that can no longer provide 

services and or housing and the 

recipient agency has decided to 

withdraw or the project has been 

terminated for failure to comply with 

the terms and conditions of the award; 

VA may transfer a capital grant or noncapital grant to another eligible entity in 

the same geographical area without 

competition, in order to prevent a loss 

of capacity of services and housing to 

homeless veterans. The new entity must 

meet all of the requirements to which 

the original grantee was subject. In the 

case of a capital grant transfer the new 

grantee will only be entitled to the 

funding that remains from the original 

capital obligation and remains 

responsible for all commitments made 

by the original grantee. 

(Authority: 38 U.S.C. 501, 2011) 

Per Diem Payments 

§ 61.30 Per diem—general. 

(a) General. VA may provide per diem 

funds to offset operating costs for a 

program of supportive housing or 

services. VA may provide: 

(1) Per diem funds to capital grant 

recipients; or 

(2) Per diem only (PDO) funds to 

entities eligible to receive a capital 

grant, if the entity established a program 

of supportive housing or services after 

November 10, 1992. 

(b) Capital grant recipients. Capital 

grant recipients may request per diem 

funds after completion of a project 

funded by a capital grant and a site 

inspection under § 61.80 to ensure that 

the grantee is capable of providing 

supportive services. 

(c) Per diem only applicants. PDO 

awards to entities eligible to receive a 

capital grant must provide supportive 

housing or services to the homeless 

veteran population within 180 days 

after the date on the notification of 

award letter, or VA will terminate the 

PDO payments. 

(Authority: 38 U.S.C. 501, 2012) 

§ 61.31 Per diem—application packages. 

(a) Capital grant recipient. To apply 

for per diem, a capital grant recipient 

need only indicate the intent to receive 

per diem on the capital grant 

application or may separately request 

per diem by submitting to VA a written 

statement requesting per diem. 

(b) Non-capital-grant recipient (per 

diem only). To apply for per diem only, 

a non-capital grant applicant must 

obtain from VA a non-capital grant 

application package and submit to VA 

the information called for in the 

application package within the time 

period established in the Notice of Fund 

Availability. The application package 

includes exhibits to be prepared and 

submitted as part of the application 

process, including: 

(1) Documentation on eligibility to 

receive per diem under this part; 

(2) Documentation on operating 

budget and cost sharing; 

(3) Documentation on supportive 

services committed to the project; 

(4) Comments or recommendations by 

appropriate state (and area wide) 

clearinghouses pursuant to E.O. 12372 

(3 CFR, 1982 Comp., p. 197), if the 

applicant is a state; and 

(5) Reasonable assurances with 

respect to receipt of per diem under this 

part that: 

(i) The project will be used 

principally to furnish to veterans the 

level of care for which such application 

is made; that not more than 25 percent 

of participants at any one time will be 

non-veterans; and that such services 

will meet the requirements of this part; 

(ii) Adequate financial support will be 

available for the per diem program; and 

(iii) The recipient will keep records 

and submit reports as VA may 

reasonably require, within the time 

frames required; and give VA, upon 

demand, access to the records upon 

which such information is based. 

(Authority: 38 U.S.C. 501, 2012) 

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

§ 61.32 Per diem application packages— 

rating criteria. 

(a) Conditional selection. Application 

packages for per diem only (i.e., from 

non-capital grant applicants) in 

response to a Notice of Fund 

Availability (NOFA) will be reviewed 

and grouped in categories according to 

the funding priorities set forth in the 

NOFA, if any. Such applications will 

then be ranked within their respective 

funding category according to scores 

achieved only if the applicant scores at 

least 750 cumulative points out of a 

possible 1000 from each of the following 

paragraphs: (b), (c), (d), (e), (f), and (g) 

of § 61.13. The highest-ranked 

applications for which funding is 

available, within highest funding 

priority category if applicable, will be 

conditionally selected for eligibility to 

receive per diem payments or special 

need payment in accordance with their 

ranked order. If funding priorities have 

been established and funds are still 

available after selection of those 

applicants in the highest priority group 

VA will continue to conditionally select 

applicants in lower priority categories 

in accordance with the selection method 

set forth in this paragraph subject to 

available funding. Conditionally 

selectees will be subsequently awarded 

per diem, if they otherwise meet the 

requirements of this part, including 

passing the inspection required by 

§ 61.80. 

(b) Ranking applications. In the event 

of a tie between applicants, VA will use 

the score from § 61.13(g) to determine 

the ranking. Note: Capital grant 

recipients are not required to be ranked; 

however, continuation of per diem 

payments to capital grant recipients will 

be subject to limitations set forth in 

§ 61.33. 

(c) Executing per diem agreements. 

VA will execute per diem agreements 

with an applicant whose per diem 

application was conditionally selected 

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under this section using the same 

procedures applicable to a capital grant 

under § 61.15. 

(Authority: 38 U.S.C. 501, 2012) 

§ 61.33 Payment of per diem. 

(a) General. VA will pay per diem to 

the recipient for those homeless 

veterans: 

(1) Who VA referred to the recipient; 

or 

(2) For whom VA authorized the 

provision of supportive housing or 

supportive service. 

(b) Rate of payments for individual 

veterans. The rate of per diem for each 

veteran in supportive housing shall be 

the lesser of: 

(1) The daily cost of care estimated by 

the per diem recipient minus other 

sources of payments to the per diem 

recipient for furnishing services to 

homeless veterans that the per diem 

recipient certifies to be correct (other 

sources include payments and grants 

from other departments and agencies of 

the United States, from departments of 

local and State governments, from 

private entities or organizations, and 

from program participants); or 

(2) The current VA state home 

program per diem rate for domiciliary 

care, as set by the Secretary under title 

38 U.S.C. 1741(a)(1). 

(c) Rate of payments for service 

centers. The per diem amount for 

service centers shall be 1⁄8 of the lesser 

of the amount in paragraph (b)(1) or 

(b)(2) of this section, per hour, not to 

exceed 8 hours in any day. 

(d) Continuing payments. Recipients 

may continue to receive per diem only 

so long as funding is available, they 

continue to provide the supportive 

services described in their application, 

and they continue to meet the 

applicable ongoing requirements of this 

part. For non-capital grant recipients of 

per diem only, funds will be paid to the 

highest-ranked applicants, within the 

highest-funding priority category if 

applicable, in descending order until 

funds are expended. Generally, 

payments will continue for the time 

frame specified in the Notice of Fund 

Availability. When necessary due to 

funding limitations, VA will reduce the 

rate of per diem. 

(e) Retroactive payments. Per diem 

may be paid retroactively for services 

provided not more than 3 days before 

VA approval is given or where, through 

no fault of the recipient, per diem 

payments should have been made but 

were not made. 

(f) Payments for absent veterans. VA 

will pay per diem for up to, and not 

more than, 72 consecutive hours 

(scheduled or unscheduled) of absence. 

(g) Supportive housing limitation. VA 

will not pay per diem for supportive 

housing for any homeless veteran who 

has had three or more episodes 

(admission and discharge for each 

episode) of supportive housing services 

paid for under this part. VA may waive 

this limitation if the services offered are 

different from those previously 

provided and may lead to a successful 

outcome. 

(h) Veterans receiving supportive 

housing and services. VA will not pay 

per diem for both supportive housing 

and supportive services provided to the 

same veteran by the same per diem 

recipient. 

(i) At the time of receipt, a per diem 

recipient must report to VA all other 

sources of income for the project for 

which per diem was awarded. The 

report provides a basis for adjustments 

to the per diem payment under 

paragraph (b)(1) of this section. 

(Authority: 38 U.S.C. 501, 2012) 

Special Need Grants 

§ 61.40 Special need grants—general. 

(a) VA provides special need grants to 

public or nonprofit private entities that 

will create or provide supportive 

housing and services, which they would 

not otherwise create or provide, for the 

following special need homeless veteran 

populations: 

(1) Women, including women who 

have care of minor dependents; 

(2) Frail elderly; 

(3) Terminally ill; or 

(4) Chronically mentally ill. 

(b) Applicants must submit an 

application package for a capital or noncapital grant, which will be processed 

by the VA National GPD Program in 

accordance with this part; however, to 

be eligible for a capital special need 

grant, an applicant must receive at least 

800 points (out of a possible 1000) and 

must receive points under in each of the 

following paragraphs: (b), (c), (d), (e), (f), 

and (g) of § 61.13. Non-capital special 

need grants are rated in the same 

manner as non-capital grant 

applications under § 61.32. 

(c) The following sections apply to 

special need grants: §§ 61.61 through 

61.67, § 61.80, and § 61.82. 

(Authority: 38 U.S.C. 501, 2061) 

§ 61.41 Special need grants—application 

packages and threshold requirements. 

(a) Applications. To apply for a 

special need grant, an applicant must 

obtain, complete, and submit to VA a 

special need capital grant or special 

need per diem only application package 

within the time period established in 

the Notice of Fund Availability. A 

special need grant application must 

meet the same threshold requirements 

applicable to a capital grant under 

§ 61.12. 

(b) In addition to the requirements of 

§ 61.11, applicants must describe how 

they will address the needs of one or 

more of the homeless veteran 

populations identified in paragraphs (c) 

through (f) of this section. 

(c) Women, including women who 

have care of minor dependents. 

Applications must show how the 

program design will: 

(1) Ensure transportation for women 

and their children, especially for health 

care and educational needs; 

(2) Provide directly or offer referrals 

for adequate and safe child care; 

(3) Ensure children’s health care 

needs are met, especially ageappropriate wellness visits and 

immunizations; and 

(4) Address safety and security issues 

including segregation from other 

program participants if deemed 

appropriate. 

(d) Frail elderly. Applications must 

show how the program design will: 

(1) Ensure the safety of the residents 

in the facility to include preventing 

harm and exploitation; 

(2) Ensure opportunities to keep 

residents mentally and physically agile 

to the fullest extent through the 

incorporation of structured activities, 

physical activity, and plans for social 

engagement within the program and in 

the community; 

(3) Provide opportunities for 

participants to address life transitional 

issues and separation and/or loss issues; 

(4) Provide access to walkers, 

grippers, or other assistance devices 

necessary for optimal functioning; 

(5) Ensure adequate supervision, 

including supervision of medication 

and monitoring of medication 

compliance; and 

(6) Provide opportunities for 

participants either directly or through 

referral for other services particularly 

relevant for the frail elderly, including 

services or programs addressing 

emotional, social, spiritual, and 

generative needs. 

(e) Terminally ill. Applications must 

show how the program design will: 

(1) Help participants address lifetransition and life-end issues; 

(2) Ensure that participants are 

afforded timely access to hospice 

services; 

(3) Provide opportunities for 

participants to engage in ‘‘tasks of 

dying,’’ or activities of ‘‘getting things in 

order’’ or other therapeutic actions that 

help resolve end of life issues and 

enable transition and closure; 

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(4) Ensure adequate supervision 

including supervision of medication 

and monitoring of medication 

compliance; and 

(5) Provide opportunities for 

participants either directly or through 

referral for other services particularly 

relevant for terminally ill such as legal 

counsel and pain management. 

(f) Chronically mentally ill. 

Applications must show how the 

program design will: 

(1) Help participants join in and 

engage with the community; 

(2) Facilitate reintegration with the 

community and provide services that 

may optimize reintegration such as lifeskills education, recreational activities, 

and follow up case management; 

(3) Ensure that participants have 

opportunities and services for reestablishing relationships with family; 

(4) Ensure adequate supervision, 

including supervision of medication 

and monitoring of medication 

compliance; and 

(5) Provide opportunities for 

participants, either directly or through 

referral, to obtain other services 

particularly relevant for a chronically 

mentally ill population, such as 

vocational development, benefits 

management, fiduciary or money 

management services, medication 

compliance, and medication education. 

(Authority: 38 U.S.C. 501, 2061) 

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

§ 61.44 Awarding special need grants and 

payment of special need per diem. 

(a) For those applicants selected for a 

special need grant, VA will execute an 

agreement and make payments to the 

grantee under § 61.61. 

(b) Capital grantee selectees who 

successfully complete the capital 

portion of their grant, or non-capital 

grantee selectees who successfully pass 

VA inspection, will be eligible for a 

special need per diem payment to 

defray the operational cost of the 

project. Special need per diem payment 

will be the lesser of: 

(1) 100 percent of the daily cost of 

care estimated by the special need 

recipient for furnishing services to 

homeless veterans with special need 

that the special need recipient certifies 

to be correct, minus any other sources 

of income; or 

(2) Two times the current VA State 

Home Program per diem rate for 

domiciliary care. 

(c) Special need awards are subject to 

funds availability, the recipient meeting 

the performance goals as stated in the 

grant application, statutory and 

regulatory requirements, and annual 

inspections. 

(d) Special need capital grantees are 

not eligible for per diem payment under 

§ 61.33, as the special need per diem 

payment covers the cost of care. 

(Authority: 38 U.S.C. 501, 2061) 

Technical Assistance Grants 

§ 61.50 Technical assistance grants— 

general. 

(a) General. VA provides technical 

assistance grants to entities or 

organizations with expertise in 

preparing grant applications relating to 

the provision of assistance for homeless 

veterans. The recipients must use the 

grants to provide technical assistance to 

nonprofit organizations with experience 

in providing assistance to homeless 

veterans in order to help such groups 

apply for grants under this part, or from 

any other source, for addressing the 

needs of homeless veterans. Current 

recipients of any grant under this part 

(other than a technical assistance grant), 

or their sub-recipients, are ineligible for 

technical assistance grants. 

(b) Allowable activities. Technical 

assistance grant recipients may use 

grant funds for the following activities: 

(1) Group or individual ‘‘how-to’’ 

grant writing seminars, providing 

instructions on applying for a grant. 

Topics must include: 

(i) Determining eligibility; 

(ii) Matching the awarding agency’s 

grant mission to the applicant agency’s 

strengths; 

(iii) Meeting the specific grant 

outcome requirements; 

(iv) Creating measurable goals and 

objectives for grants; 

(v) Relating clear and concise grant 

project planning; 

(vi) Ensuring appropriate grant project 

staffing; and 

(vii) Demonstrating the applicant’s 

abilities. 

(2) Creation and dissemination of 

‘‘how-to’’ grant writing materials, i.e., 

compact disks, booklets, web pages or 

other media specifically designed to 

facilitate and instruct applicants in the 

completion of grant applications. 

(3) Group or individual seminars, 

providing instructions on the legal 

obligations associated with grant 

applications. Topics must include: 

(i) Office of Management and Budget 

(OMB) grant management circulars and 

forms, 2 CFR parts 215, 225, 230; 

(ii) Federal funding match and fund 

separation requirements; and 

(iii) Property and equipment 

disposition. 

(4) Telephone, video conferencing or 

email with potential grant applicants 

that specifically address grant 

application questions. 

(c) Unallowable activities. Technical 

assistance grant recipients may not use 

grant funds for the following activities: 

(1) Meetings, consortia, or any similar 

activity that does not assist community 

agencies in seeking grants to aid 

homeless veterans. 

(2) Referral of individual veterans to 

agencies for benefits, housing, medical 

assistance, or social services. 

(3) Lobbying. 

(Authority: 38 U.S.C. 501 and 2064) 

§ 61.51 Technical assistance grants— 

application packages. 

(a) To apply for a technical assistance 

grant, an applicant must obtain from, 

complete, and submit to VA a technical 

assistance grant application package 

within the time period established in 

the Notice of Fund Availability. 

(b) The technical assistance grant 

application package will require the 

following: 

(1) Documentation on eligibility to 

receive a technical assistance grant 

under this part; 

(2) A description of technical 

assistance that would be provided (see 

§ 61.50); 

(3) Documentation concerning the 

estimated operating costs and operating 

budget for the technical assistance 

program for which the grant is sought; 

(4) Documentation concerning 

expertise in preparing grant 

applications; 

(5) Documentation of resources 

committed to the provision of technical 

expertise; 

(6) Comments or recommendations by 

appropriate state (and area wide) 

clearinghouses pursuant to E.O. 12372 

(3 CFR, 1982 Comp., p. 197), if the 

applicant is a state; and 

(7) Reasonable assurances that: 

(i) The recipient will provide 

adequate financial and administrative 

support for providing the services set 

forth in the technical assistance grant 

application, and will actually provide 

such services; and 

(ii) The recipient will keep records 

and timely submit reports as required by 

VA, and will give VA, on demand, 

access to the records upon which such 

reports are based. 

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

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

§ 61.52 Technical assistance grant 

application packages—threshold 

requirements. 

The following threshold requirements 

for a technical assistance grant must be 

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met, or the application will be rejected 

before being rated under § 61.53: 

(a) The application must be complete 

and submitted on the correct form and 

in the time period established in the 

Notice of Fund Availability; 

(b) The applicant must establish 

expertise in preparing grant 

applications; 

(c) The activities for which assistance 

is requested must be eligible for funding 

under this part; 

(d) The applicant must demonstrate 

that adequate financial support will be 

available to carry out the project for 

which the grant is sought, consistent 

with the plans, specifications and 

schedule submitted by the applicant; 

(e) The applicant must not have an 

outstanding obligation to VA that is in 

arrears, or have an overdue or 

unsatisfactory response to an audit; and 

(f) The applicant must not have been 

notified by VA as being in default. 

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

§ 61.53 Technical assistance grant 

application packages—rating criteria. 

(a) General. Applicants that meet the 

threshold requirements in § 61.52 will 

then be rated using the selection criteria 

listed in paragraphs (b) and (c) of this 

section. To be eligible for a technical 

assistance grant, an applicant must 

receive at least 600 points (out of a 

possible 800). 

(b) Quality of the technical assistance. 

VA will award up to 400 points based 

on the following: 

(1) How the recipients of technical 

training will increase their skill level 

regarding the completion of 

applications; 

(2) How the recipients of technical 

training will learn to find grant 

opportunities in a timely manner; 

(3) How the technical assistance 

provided will be monitored and 

evaluated and changes made, if needed; 

and 

(4) How the proposed technical 

assistance programs will be 

implemented in a timely fashion. 

(c) Ability of applicant to demonstrate 

expertise in preparing grant 

applications develop and operate a 

technical assistance program. VA will 

award up to 400 points based on the 

extent to which the application 

demonstrates all of the following: 

(1) Ability to find grants available for 

addressing the needs of homeless 

veterans. 

(2) Ability to find and offer technical 

assistance to entities eligible for such 

assistance. 

(3) Ability to administer a technical 

assistance program. 

(4) Ability to provide grant technical 

assistance. 

(5) Ability to evaluate the overall 

effectiveness of the technical assistance 

program and to make adjustments, if 

necessary, based on those evaluations. 

(6) Past performance. VA may use 

historical documents of past 

performance both VA and non-VA, 

including those from other Federal, state 

and local agencies and audits by private 

or public entities in scoring technical 

assistance applications. 

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

§ 61.54 Awarding technical assistance 

grants. 

(a) Applicants will first be grouped in 

categories according to the funding 

priorities set forth in the NOFA, if any. 

Applicants will then be ranked within 

their respective funding category, if 

applicable. The highest-ranked 

applications for which funding is 

available, within highest priority 

funding category if applicable, will be 

selected to receive a technical assistance 

grant in accordance with their ranked 

order, as determined under § 61.53. If 

funding priorities have been established 

and funds are still available after 

selection of those applicants in the 

highest priority group VA will continue 

to conditionally select applicants in 

lower priority categories in accordance 

with the selection method set forth in 

this paragraph subject to available 

funding. 

(b) In the event of a tie between 

applicants, VA will use the score from 

§ 61.53(c) to determine the ranking. 

(c) For those applicants selected to 

receive a technical assistance grant, VA 

will execute an agreement and make 

payments to the grant recipient in 

accordance with § 61.61. 

(d) The amount of the technical 

assistance grant will be the estimated 

total operational cost of the technical 

assistance over the life of the technical 

assistance grant award as specified in 

the technical assistance grant 

agreement. Payments may be made for 

no more than the period specified in the 

Notice of Fund Availability. 

(e) VA will not pay for sustenance or 

lodging for the nonprofit community 

participants or attendees at training 

conferences offered by technical 

assistance grant recipients; however, the 

grantee may use grant funds to recover 

such expenses. 

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

§ 61.55 Technical assistance reports. 

Each technical assistance grantee 

must submit to VA a quarterly report 

describing the activities for which the 

technical assistance grant funds were 

used, including the type and amount of 

technical assistance provided and the 

number of nonprofit community-based 

groups served. 

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

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0554) 

Awards, Monitoring, and Enforcement 

of Agreements 

§ 61.61 Agreement and funding actions. 

(a) Agreement. When VA selects an 

applicant for grant or per diem award 

under this part, VA will incorporate the 

requirements of this part into an 

agreement to be executed by VA and the 

applicant. VA will enforce the 

agreement through such action as may 

be appropriate, including temporarily 

withholding cash payments pending 

correction of a deficiency. Appropriate 

actions include actions in accordance 

with the VA common grant rules at 38 

CFR parts 43 and 49 and the OMB 

Circulars, including those cited in 

§ 61.66. 

(b) Obligating funds. Upon execution 

of the agreement, VA will obligate funds 

to cover the amount of the approved 

grant/per diem, subject to the 

availability of funding. Payments will be 

for services rendered, contingent on 

submission of documentation in the 

form of invoices or purchase agreements 

and inspections, as VA deems 

necessary. VA will make payments on 

its own schedule to reimburse for 

amounts expended. Except for increases 

in the rate of per diem, VA will not 

increase the amount obligated for 

assistance under this part after the 

initial obligation of funds. 

(c) Deobligating funds. VA may 

deobligate all or parts of funds obligated 

under this part: 

(1) If the actual total cost for 

assistance is less than the total cost 

stated in the application; or 

(2) If the recipient fails to comply 

with the requirements of this part. 

(d) Deobligation procedure. Before 

deobligating funds under this section, 

VA will issue a notice of intent to 

terminate payments. The recipient will 

have 30 days to submit documentation 

demonstrating why payments should 

not be terminated. After review of any 

such documentation, VA will issue a 

final decision concerning termination of 

payment. 

(e) Other government funds. No funds 

provided under this part may be used to 

replace Federal, state or local funds 

previously used, or designated for use, 

to assist homeless veterans. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 

2064) 

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§ 61.62 Program changes. 

(a) Except as provided in paragraphs 

(b) through (d) of this section, a 

recipient may not make any significant 

changes to a project for which a grant 

has been awarded without prior written 

approval from the VA National Grant 

and Per Diem Program Office. 

Significant changes include, but are not 

limited to, a change in the recipient, a 

change in the project site (including 

relocating, adding an annex, a branch, 

or other expansion), additions or 

deletions of activities, shifts of funds 

from one approved type of activity to 

another, and a change in the category of 

participants to be served. 

(b) Recipients of grants involving both 

construction and non-construction 

projects must receive prior written 

approval from the VA National Grant 

and Per Diem Program Office for 

cumulative transfers among direct cost 

categories which exceed or are expected 

to exceed 10 percent of the current total 

approved budget. 

(c) Recipients of grants for projects 

involving both construction and nonconstruction who are state or local 

governments must receive prior written 

approval from the VA National Grant 

and Per Diem Program Office for any 

budget revision which would transfer 

funds between non-construction and 

construction categories. 

(d) Approval for changes is contingent 

upon the application ranking remaining 

high enough after the approved change 

to have been competitively selected for 

funding in the year the application was 

selected. 

(e) Any changes to an approved 

program must be fully documented in 

the recipient’s records. 

(f) Recipients must inform the VA 

National Grant and Per Diem Program 

Office in writing of any key position and 

address changes in/of their organization 

within 30 days of the change, i.e., new 

executive director or chief financial 

officer, permanent change of address for 

corporate communications. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 

2064) 

§ 61.63 Procedural error. 

If an application would have been 

selected but for a procedural error 

committed by VA, VA may reconsider 

that application in the next funding 

round. A new application will not be 

required for this purpose so long as 

there is no material change in the 

information. 

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

§ 61.64 Religious organizations. 

(a) Organizations that are religious or 

faith-based are eligible, on the same 

basis as any other organization, to 

participate in VA programs under this 

part. In the selection of service 

providers, neither the Federal 

Government nor a state or local 

government receiving funds under this 

part shall 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, 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. 

(d) A religious organization that 

participates in VA programs 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 governance, 

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 

statements and other governing 

documents. 

(e) An organization that participates 

in a VA program under this part shall 

not, in providing direct program 

assistance, discriminate against a 

program beneficiary or prospective 

program beneficiary regarding housing, 

supportive services, 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 

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) 

§ 61.65 Inspections. 

VA may inspect the facility and 

records of any applicant or recipient 

when necessary to determine 

compliance with this part or an 

agreement under § 61.61. The authority 

to inspect does not authorize VA to 

manage or control the applicant or 

recipient. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 

2064) 

§ 61.66 Financial management. 

(a) All recipients must comply with 

applicable requirements of the Single 

Audit Act Amendments of 1996, as 

implemented by OMB Circular A–133 

and codified at 38 CFR part 41. 

(b) All entities receiving assistance 

under this part must use a financial 

management system that follows 

generally accepted accounting 

principals and meets the requirements 

set forth under OMB Circular A–102, 

Subpart C. § 20, codified at 38 CFR 

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12716 Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Proposed Rules 

43.20, for state and local government 

recipients, or under OMB Circular A– 

110, Subpart C–§ 21, codified at 38 CFR 

49.21 for nonprofit recipients. All 

recipients must implement the 

requirements of the appropriate OMB 

Circular for Cost-Principles (A–87 or A– 

122 codified at 2 CFR parts 225 and part 

230, respectively) for determining costs 

reimbursable under all awards issued 

under these regulations. 

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

§ 61.67 Recovery provisions. 

(a) Full recovery of capital grants. VA 

may recover from the grant recipient all 

of the grant amounts provided for the 

project if, after 3 years after the date of 

an award of a capital grant, the grant 

recipient has withdrawn from the VA 

Homeless Providers Grant and Per Diem 

Program (Program), does not establish 

the project for which the grant was 

made, or has established the project for 

which the grant was made but has not 

passed final inspection. Where a 

recipient has no control over causes for 

delays in implementing a project, VA 

may extend the three-year period, as 

appropriate. VA may obligate any 

recovered funds without fiscal year 

limitation. 

(b) Prorated (partial) recovery of 

capital grants. If a capital grant recipient 

is not subject to recovery under 

paragraph (a) of this section, VA will 

seek recovery of the grant amount on a 

prorated basis where the grant recipient 

ceases to provide services for which the 

grant was made or withdraws from the 

Program prior to the expiration of the 

applicable period of operation, which 

period shall begin on the date shown on 

the activation document produced by 

the VA National GPD Program. In cases 

where capital grant recipients have 

chosen not to receive per diem 

payments, the applicable period of 

operation shall begin on the date the VA 

Medical Center Director approved 

placement at the project site as shown 

on the inspection documents. The 

amount to be recaptured equals the total 

amount of the grant, multiplied by the 

fraction resulting from using the number 

of years the recipient was not 

operational as the numerator, and using 

the number of years of operation 

required under the following chart as 

the denominator. 

Grant amount 

(dollars in thousands) 

Years of 

operation 

0–1,000 ................................. 20 

1,001–2,000 .......................... 25 

2,001–3,000 .......................... 30 

Over 3,000 ............................ 40 

(c) Disposition of real property for 

capital grantees. In addition to being 

subject to recovery under paragraphs (a) 

and (b) of this section, capital grantees 

are subject to real property disposition 

as required by 38 CFR 49.32 when the 

grantee no longer is providing services 

through a grant awarded under this part. 

(d) Recovery of per diem and noncapital grants. VA will seek to recover 

from the recipient of per diem, a special 

need non-capital grant, or a technical 

assistance grant any funds that are not 

used in accordance with the 

requirements of this part. 

(e) Notice. Before VA takes action to 

recover funds, VA will issue to the 

recipient a notice of intent to recover 

funds. The recipient will then have 

30 days to submit documentation 

demonstrating why funds should not be 

recovered. After review of any such 

documentation, VA will issue a decision 

regarding whether action will be taken 

to recover funds. 

(f) Vans. All recovery provisions will 

apply to vans with the exception of the 

period of time for recovery. The period 

of time for recovery will be 7 years. 

Disposition provisions of 38 CFR 49.34 

apply to vans. Grantees are required to 

notify the VA National Grant and Per 

Diem Program Office for disposition of 

any van funded under this part. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061, 

2064) 

§ 61.80 General operation requirements for 

supportive housing and service centers. 

(a) Supportive housing and service 

centers for which assistance is provided 

under this part must comply with the 

requirements of the current edition of 

the Life Safety Code of the National Fire 

Protection Association and all 

applicable state and local housing 

codes, licensing requirements, fire and 

safety requirements, and any other 

requirements in the jurisdiction in 

which the project is located regarding 

the condition of the structure and the 

operation of the supportive housing or 

service centers. Note: All facilities are to 

be protected throughout by an approved 

automatic sprinkler system unless a 

facility is specifically exempted under 

the Life Safety Code. 

(b) Except for such variations as are 

proposed by the recipient that would 

not affect compliance with paragraph (a) 

of this section and are approved by VA, 

supportive housing must meet the 

following requirements: 

(1) The structures must be structurally 

sound so as not to pose any threat to the 

health and safety of the occupants and 

so as to protect the residents from the 

elements; 

(2) Entry and exit locations to the 

structure must be capable of being 

utilized without unauthorized use of 

other private properties, and must 

provide alternate means of egress in 

case of fire; 

(3) Buildings constructed or altered 

with Federal assistance must also be 

accessible to the disabled, as required 

by § 502 of the Americans with 

Disabilities Act, referred to as the 

Architectural Barriers Act; 

(4) Each resident must be afforded 

appropriate space and security for 

themselves and their belongings, 

including an acceptable place to sleep 

that is in compliance with all applicable 

local, state, and federal requirements; 

(5) Every room or space must be 

provided with natural or mechanical 

ventilation and the structures must be 

free of pollutants in the air at levels that 

threaten the health of residents; 

(6) The water supply must be free 

from contamination; 

(7) Residents must have access to 

sufficient sanitary facilities that are in 

proper operating condition, that may be 

used in privacy, and that are adequate 

for personal cleanliness and the 

disposal of human waste; 

(8) The housing must have adequate 

heating and/or cooling facilities in 

proper operating condition; 

(9) The housing must have adequate 

natural or artificial illumination to 

permit normal indoor activities and to 

support the health and safety of 

residents and sufficient electrical 

sources must be provided to permit use 

of essential electrical appliances while 

assuring safety from fire; 

(10) All food preparation areas must 

contain suitable space and equipment to 

store, prepare, and serve food in a 

sanitary manner; 

(11) The housing and any equipment 

must be maintained in a sanitary 

manner; 

(12) The residents with disabilities 

must be provided meals or meal 

preparation facilities must be available; 

(13) Residential supervision from a 

paid staff member, volunteer, or senior 

resident participant must be provided 

24 hours per day, 7 days per week and 

for those times that a volunteer or senior 

resident participant is providing 

residential supervision a paid staff 

member must be on call for emergencies 

24 hours a day 7 days a week (all 

supervision must be provided by 

individuals with sufficient knowledge 

for the position); and 

(14) Residents must be provided a 

clean and sober environment that is free 

from illicit drug use or from alcohol use 

that: could threaten the health and/or 

safety of the residents or staff; hinders 

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the peaceful enjoyment of the premises; 

or jeopardizes completion of the 

grantee’s project goals and objectives. 

Those supportive housing or service 

centers that provide medical or social 

detox at the same site as the supportive 

housing or service must ensure that 

those residents in detox are clearly 

separated from the general residential 

population. 

(c) Each recipient of assistance under 

this part must conduct an ongoing 

assessment of the supportive services 

needed by the residents of the project 

and the availability of such services, 

and make adjustments as appropriate. 

The recipient will provide evidence of 

this ongoing assessment to VA regarding 

the plan described in their grant 

application to include meeting their 

performance goals. This information 

will be incorporated into the annual 

inspection. Grantees must submit 

during the grant agreement period to 

VA, a quarterly technical performance 

report. A quarterly report must be filed 

once during each quarter and no later 

than January 30, April 30, July 30, and 

October 30. The report may be in any 

acceptable business format and must 

include the following information: 

(1) A comparison of actual 

accomplishments to established goals 

for the reporting period and response to 

any findings related to monitoring 

efforts. This comparison will be on the 

same level of detail as specified in the 

program approved in the grant 

document. It will address quantifiable 

as well as non-quantifiable goals. 

(2) If established goals have not been 

met, provide a detailed narrative 

explanation and an explanation of the 

corrective action(s) which will be taken, 

as well as a timetable for 

accomplishment of the corrective 

action(s). 

(3) Other pertinent information, 

including a description of grant-related 

activities occurring during the report 

period. This may include personnel 

activity (hiring-training), community 

orientation/awareness activity, 

programmatic activity (job 

development). Also identify 

administrative and programmatic 

problems, which may affect 

performance and proposed solutions. 

(4) The quarterly technical 

performance report will be submitted to 

the VA National GPD Program Liaison 

assigned to the project, with each 

quarterly report being a cumulative 

report for the entire calendar year. All 

pages of the reporting documents 

should have the appropriate grant 

number and signature, where 

appropriate. VA National GPD Program 

Liaisons will file the report and 

corrective actions in the administrative 

file for the grant. 

(5) Between scheduled reporting 

dates, the recipient will also 

immediately inform the VA National 

GPD Program Liaison of any significant 

developments affecting the recipient’s 

ability to accomplish the work. VA 

National GPD Program Liaisons will 

provide grantees with necessary 

technical assistance, when and where 

appropriate as problems arise. 

(6) For each goal or objective listed in 

the grant application grantees will be 

allowed a 15 percent deviation of each 

goal or objective. If the deviation is 

greater than 15 percent in any one goal 

or objective a corrective action plan 

must be submitted to the VA National 

GPD Program Liaison. Failure to meet 

goals and objectives may result in 

withholding of placement, withholding 

of payment, suspension of payment and 

termination as outlined in this part or 

other applicable Federal statutes if the 

goal or objective would impact the 

program’s ability to provide a successful 

outcome for veterans. 

(7) Corrective Action(s): When 

necessary, the grantee will 

automatically initiate a Corrective 

Action Plan (CAP). A CAP will be 

required if, on a quarterly basis, actual 

grant accomplishments vary by a margin 

of +/¥15 percent or more from the 

planned goals and objectives. Please 

note that this is a general rule of thumb, 

in some cases +/¥15 percent deviations 

are beneficial to the program such as 

more placements into employment or 

training than planned, less cost per 

placement than planned, higher average 

wage at placement than planned, etc. 

(8) All +/¥15 percent deviations from 

the planned goals that have a negative 

impact on the grantee’s ability to 

accomplish planned goals, must be fully 

explained in the grantee’s quarterly 

technical report and a CAP is to be 

initiated, developed, and submitted by 

the grantee to the VA Liaison for 

approval. 

(9) The CAP must identify the activity 

or expenditure source which has the 

+/¥15 percent deviation, describe the 

reason(s) for the variance, provide 

specific proposed corrective action(s), 

and a timetable for accomplishment of 

the corrective action. The plan may 

include an intent to modify the grant 

when appropriate. 

(10) The CAP will be submitted as an 

addendum to the quarterly technical 

report. After receipt of the CAP, the VA 

National GPD Program Liaison will send 

a letter to the grantee indicating that the 

CAP is approved or disapproved. If 

disapproved, VA Liaison will make 

beneficial suggestions to improve the 

proposed CAP and request resubmission 

until CAP is satisfactory to both parties. 

(d) A homeless veteran may remain in 

supportive housing for which assistance 

is provided under this part for a period 

no longer than 24 months, except that 

a veteran may stay longer, if permanent 

housing for the veteran has not been 

located or if the veteran requires 

additional time to prepare for 

independent living. However, at any 

given time, no more than one-half of the 

veterans at such supportive housing 

facility may have resided at the facility 

for periods longer than 24 months. 

(e) Each recipient of assistance under 

this part must provide for the 

consultation and participation of not 

less than one homeless veteran or 

formerly homeless veteran on the board 

of directors or an equivalent 

policymaking entity of the recipient, to 

the extent that such entity considers and 

makes policies and decisions regarding 

any project provided under this part. 

This requirement may be waived if an 

applicant, despite a good faith effort to 

comply, is unable to meet it and 

presents a plan, subject to VA approval, 

to otherwise consult with homeless or 

formerly homeless veterans in 

considering and making such policies 

and decisions. 

(f) Each recipient of assistance under 

this part must, to the maximum extent 

practicable, involve homeless veterans 

and families, through employment, 

volunteer services, or otherwise, in 

constructing, rehabilitating, 

maintaining, and operating the project 

and in providing supportive services for 

the project. 

(g) Each recipient of assistance under 

this part shall establish procedures for 

fiscal control and fund accounting to 

ensure proper disbursement and 

accounting of assistance received under 

this part. 

(h) The recipient of assistance under 

this part that provides family violence 

prevention or treatment services must 

establish and implement procedures to 

ensure: 

(1) The confidentiality of records 

pertaining to any individual provided 

services, and 

(2) The confidentially of the address 

or location where the services are 

provided. 

(i) Each recipient of assistance under 

this part must maintain the 

confidentiality of records kept on 

homeless veterans receiving services. 

(j) VA may disapprove use of 

outpatient health services provided 

through the recipient if VA determines 

that such services are of unacceptable 

quality. Further, VA will not pay per 

diem where the Department concludes 

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12718 Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Proposed Rules 

that services furnished by the recipient 

are unacceptable. 

(k) A service center for homeless 

veterans shall provide services to 

homeless veterans for a minimum of 

40 hours per week over a minimum of 

5 days per week, as well as provide 

services on an as-needed, unscheduled 

basis. The calculation of average hours 

shall include travel time for mobile 

service centers. In addition: 

(1) Space in a service center shall be 

made available as mutually agreeable for 

use by VA staff and other appropriate 

agencies and organizations to assist 

homeless veterans; 

(2) A service center shall be equipped 

to provide, or assist in providing, health 

care, mental health services, hygiene 

facilities, benefits and employment 

counseling, meals, and transportation 

assistance; 

(3) A service center shall provide 

other services as VA determines 

necessary based on the need for services 

otherwise not available in the 

geographic area; and 

(4) A service center may be equipped 

and staffed to provide, or to assist in 

providing, job training and job 

placement services (including job 

readiness, job counseling, and literacy 

and skills training), as well as any 

outreach and case management services 

that may be necessary to meet the 

requirements of this paragraph. 

(l) Fixed site service centers will 

prominently post at or near the entrance 

to the service center their hours of 

operation and contacts in case of 

emergencies. Mobile service centers 

must take some action reasonably 

calculated to provide in advance a 

tentative schedule of visits, (e.g., 

newspapers, fliers, public service 

announcements on television or radio). 

The schedule should include but is not 

limited to: 

(1) The region of operation; 

(2) Times of operation; 

(3) Expected services to be provided; 

and 

(4) Contacts for specific information 

and changes. 

(m) Each recipient that provides 

housing and services must have a 

written disaster plan that has been 

coordinated with the emergency 

management entity responsible for the 

locality in which the project exists. The 

plan must encompass natural and manmade disasters. 

(n) The recipient will inform within 

24 hours, its VA liaison of any sentinel 

events occurring within the program 

(i.e., drug overdose, death, injury). 

(o) The grantee, or sub-grantee, will 

provide appropriate orientation and 

training to staff to enable them to 

provide quality services that are 

appropriate to homeless veteran or 

homeless special need veteran 

population. 

(p) The grantee will maintain 

systematic participant enrollment 

information and participant tracking 

records designed to facilitate the 

uniform compilation and analysis of 

programmatic data necessary for 

verification of veteran status and case 

management, reporting, monitoring, and 

evaluation purposes. 

(q) The grantee will also document in 

each participant record at a minimum: 

(1) Family status. 

(2) Verification of veteran status 

(DD214, Department of Veterans Affairs 

confirmation report and/or 

identification card). 

(3) Education, employment history, 

and marketable skills/licenses/ 

credentials. 

(4) An Individual Service Plan (ISP) 

for each individual participant will be 

maintained in the participant case 

management record which contains the 

following: 

(i) An assessment of barriers, service 

needs, as well as strengths; and 

(ii) Specific services and referrals 

planned and benefits to be achieved as 

a result of program participation. 

(5) Duration and outcome of 

supportive service. 

(6) The grantee must verify service 

outcomes each calendar year quarter 

through the participant and provide 

documentation of this verification in the 

participant case management files. 

(r) The grantee will ensure that no 

more than 25 percent of the grant 

awarded beds are occupied by nonveterans, or VA may take actions as 

appropriate to decrease the beds, grant 

amounts, or terminate the grant and 

seek recapture in the case of capital 

funding. To calculate the occupancy 

rate, divide the actual number of bed 

days of care for veterans eligible to 

reside in the project, by the total 

number of possible bed days of care (the 

previous 180 days from the most current 

6 month period). 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061) 

§ 61.81 Outreach activities. 

Recipients of capital grants and per 

diem relating to supportive housing or 

service centers must use their best 

efforts to ensure that eligible hard-toreach veterans are found, engaged, and 

provided assistance. To achieve this 

goal, recipients may search for homeless 

veterans at places such as shelters, soup 

kitchens, parks, bus or train stations, 

and the streets. Outreach particularly 

should be directed toward veterans who 

have a nighttime residence that is an 

emergency shelter or a public or private 

place not ordinarily used as a regular 

sleeping accommodation for human 

beings (e.g., cars, streets, or parks). 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061) 

§ 61.82 Participant fees for supportive 

housing. 

(a) Each participant of supportive 

housing may be required to pay a 

participant fee in an amount determined 

by the recipient, except that such 

participant fee may not exceed 30 

percent of the participant’s monthly 

income after deducting medical 

expenses, child care expenses, court 

ordered child support payments, or 

other court ordered payments; nor may 

it exceed the program’s set maximum 

rate or the HUD Fair Market Rent for 

that type of housing and its location, 

whichever is less. The participant fee 

determination and collection process/ 

procedures should be documented in 

the grant recipient’s operating 

procedures to ensure consistency, 

fairness, and accuracy of fees collected. 

The participant’s monthly income 

includes all income earned by or paid 

to the participant. 

(b) Retroactive benefit payments from 

any source to program participants, for 

the purpose of this part, may be 

considered income in the month 

received and therefore may be used in 

calculating the participant fee for that 

month. 

(c) Participant fees may be used for 

costs of operating the supportive 

housing or to assist supportive housing 

residents move to permanent housing, 

and must have a therapeutic benefit. 

(d) In addition to a participant fee, 

recipients may charge residents 

reasonable fees for extracurricular 

services and activities (extracurricular 

fee) that participants are not required to 

receive under the terms of the grant 

award, are not paid for by VA per diem, 

or provided by VA. Extracurricular fees 

must be voluntary on the part of the 

participant. 

(e) In projects funded under this part 

where participants sign agreements, VA 

treat the costs associated with 

participant eviction to be as 

unallowable. 

(f) Use of participant agreements. 

(1) Participant agreements must be 

between the grant recipient of record 

and the program participant. 

(2) Participant agreements must be 

part of a therapeutic plan to increase 

self-determination and responsibility. 

(3) Participant agreements must 

include a clause that allows program 

participants the ability to break the lease 

or program agreement without penalty 

for medical or clinical necessity. 

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(4) Participant agreements may not be 

used to exclude homeless veterans with 

little or no income from the program. 

(5) Participant agreements and 

conditions must be fully disclosed to 

potential participants and 

acknowledged in writing by both 

parties. 

(Authority: 38 U.S.C. 501, 2011, 2012, 2061) 

[FR Doc. 2012–4878 Filed 2–29–12; 8:45 am] 

BILLING CODE 8320–01–P 

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