[Federal Register Volume 80, Number 36 (Tuesday, February 24, 2015)]
[Rules and Regulations]
[Pages 9604-9613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03753]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 62

RIN 2900-AO50


Supportive Services for Veteran Families Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This rule adopts as final, with changes, a proposed rule of 
the Department of Veterans Affairs (VA) to amend its regulations 
concerning the Supportive Services for Veteran Families Program (SSVF). 
In the proposed rule published on May 9, 2014, VA proposed to make a 
number of changes to the SSVF program to emphasize the intended goals 
of SSVF. VA is making minor changes to the proposed rule based on 
comments we received.

DATES: Effective Date: This rule is effective on March 26, 2015.

FOR FURTHER INFORMATION CONTACT: John Kuhn, National Center for 
Homelessness Among Veterans, Supportive Services for Veteran Families 
Program Office (10NC1), 4100 Chester Avenue, Suite 200, Philadelphia, 
PA 19104, (877) 737-0111. (This is a toll-free number.)

SUPPLEMENTARY INFORMATION: On May 9, 2014, VA published a proposed rule 
in the Federal Register, at 79 FR 26669, to amend its regulations 
concerning the Supportive Services for Veterans Families (SSVF) 
program. Under authority provided by 38 U.S.C. 2044, VA has offered 
grants to eligible entities, identified in the regulations, that 
provide supportive services to very low-income veterans and families 
who are at risk for becoming homeless or who, in some cases, have 
recently become homeless. The program has been a tremendous success, 
providing services to over 62,000 participants in fiscal year (FY) 
2013, 20,000 more than projected. To date, over 80 percent of those 
discharged from SSVF have been placed in or saved their permanent 
housing. VA received 27 comments on the rule, and many of them 
supported the proposed changes in whole or in part. This final rule 
adopts the proposed rule with changes as discussed below.

Definitions

    Several commenters offered suggestions regarding the definition of 
various terms. The most common recommendation was to amend the 
definition of the term ``homeless.'' Several of these comments 
recommended that VA establish different standards for homelessness in 
urban and rural areas. However, ``homeless'' is a term defined in 
statute. In 38 U.S.C. 2044(f)(3), the term ``homeless'' is defined as 
having the same meaning given that term in section 103 of the McKinney-
Vento Homelessness Assistance Act, codified at 42 U.S.C. 11302, which 
does not differentiate between urban and rural areas. Consequently, VA 
lacks the authority to vary the definition of ``homeless'' between 
urban and rural areas. Even if VA did have authority to apply different 
definitions for different

[[Page 9605]]

areas, one of the aims for the proposed rule was to adopt a common 
definition that would be used by both VA and the Department of Housing 
and Urban Development (HUD), which similarly does not contemplate a 
difference between urban and rural areas in its regulatory definition 
of ``homeless.'' See 24 CFR 576.2. Use of a common definition 
simplifies operations for community providers and ensures access to a 
range of services from both Departments. This goal was supported by 
several commenters, who endorsed the adoption of a common definition. 
VA agrees with these commenters and is not making a change to the 
definition of homeless in this final rule.
    The SSVF program does allow for some variation between urban and 
rural areas, and to the extent permitted by statute at 38 U.S.C. 
2044(a)(5) and 2044(f)(6)(C), VA encourages community providers to 
consider the local conditions and needs of veterans in their community 
when developing programs and delivering services. VA can also use 
Notices of Funding Availability (NOFA) to emphasize areas where SSVF 
recipients should concentrate resources or support, and VA believes the 
NOFA process provides sufficient flexibility to address the needs of 
urban and rural veterans alike.
    One commenter suggested the definition of homeless be revised to 
match that used in the Homeless Emergency Assistance and Rapid 
Transition to Housing (HEARTH) Act, Public Law 111-22. The changes to 
the definition of homeless enacted with the HEARTH Act are codified at 
42 U.S.C. 11302, which is the same definition VA uses based on 38 
U.S.C. 2044(f)(3). VA believes HUD's implementing regulations, at 24 
CFR 576.2, take into account the recent changes in law and provide the 
best source for a reference to homelessness because it will ensure a 
common Federal definition for homeless benefits. Another commenter 
suggested that HUD's definition at 24 CFR 576.2 was out of date and 
antiquated, and suggested that VA should emphasize that veterans who 
are at-risk for homelessness should be eligible. VA's definition of 
``homeless'' includes those who are at-risk for homelessness, and in 
each NOFA, VA identifies the prevention of homelessness among those who 
are at risk as the first category of eligible persons. Additionally, 
HUD's regulations are used to implement the Homelessness Prevention and 
Rapid Rehousing Program and the Emergency Solutions Grants Program, 
which are designed to assist beneficiaries who are homeless or at risk 
for homelessness by coordinating the provision of services and short-
term housing. VA is therefore not making a change based on these 
comments.
    Another commenter noted that while HUD's definition of ``homeless'' 
does not take into account the length of time between homeless episodes 
when defining chronically homeless, VA should develop a clearer 
definition for chronically homeless as it relates to other VA homeless 
assistance programs. However, and as the commenter notes, the SSVF 
program is not designed to address the problems of the chronically 
homeless. Additionally, VA believes maintaining a common definition 
with HUD is important to ensure that providers are using a term with a 
common meaning when providing services to homeless veterans. VA is not 
making a change based on this comment.
    One issue also concerning the definition of ``homeless'' was 
whether persons temporarily residing with others (``couch surfing'') 
are included in the definition. This issue was raised by several 
commenters, some of whom came to opposite conclusions on the matter. To 
clarify, so-called couch surfers are not literally ``homeless,'' as the 
term is used by HUD and VA, but they are at risk of homelessness, and 
hence could still be eligible for benefits through the SSVF program. VA 
annually produces a NOFA to advise interested parties to apply for SSVF 
funding, and in the NOFA, VA describes different categories for funding 
and support. Category 1 refers to prevention, and entities providing 
services to ``couch surfers'' would be assisting persons at risk for 
homelessness, and hence would qualify.
    VA also received a comment recommending a revised definition for 
the term ``permanent housing'' to refer to housing without a designated 
length of stay. VA agrees with this comment and is revising the 
definition of permanent housing accordingly to clarify that an 
undesignated length of stay is one where an individual or family has a 
lease that is renewable and terminable only for cause. This change will 
ensure that homeless veterans with permanent housing will have full 
tenancy rights under the law and would ensure that they cannot be 
placed into settings that SSVF is not intended to support, such as 
transitional housing or institutional care facilities.
    We also received two recommendations to add a definition of ``rapid 
rehousing.'' Both commenters believed that adding this definition would 
assist grantees by providing a better understanding of the principal 
mission of SSVF. We agree, and are adopting the definition of ``rapid 
re-housing'' recommended by one of the commenters. Both commenters 
offered recommendations, and VA is selecting the proposal with a more 
robust and well-developed definition. That definition will provide that 
``rapid re-housing'' is an intervention designed to help individuals 
and families quickly exit homelessness and return to permanent housing. 
It will emphasize that rapid re-housing is provided without 
preconditions (such as employment, income, absence of criminal record, 
or sobriety), and that resources and services should be tailored to the 
unique needs of the household. It will clarify that there are three 
goals associated with rapid re-housing: Identifying housing, providing 
rent and move-in financial assistance, and case management and 
services. We also state that while a rapid re-housing program must have 
all three core components available, it is not required that a single 
entity provide all three services nor that a household utilize them 
all. Although this term is not used in these regulations, it is a term 
that is commonly used in NOFAs and administration of the SSVF program.
    Finally, we received one comment recommending we amend the 
definition for the term ``veteran.'' While 38 U.S.C. 2044 does not 
include a definition for the word ``veteran,'' this term is defined in 
statute at 38 U.S.C. 101(2). VA is not making a change based on this 
comment.

Eligibility for SSVF Services

    Another related issue raised by several commenters dealt with 
eligibility for SSVF services. One commenter recommended that children 
and former spouses of veterans be eligible for benefits through the 
SSVF program. VA does not have authority to provide assistance to such 
persons unless they are part of a ``veteran family,'' which is defined 
in 38 U.S.C. 2044(f)(7) to include ``a veteran who is a single person 
and a family in which the head of the household or the spouse of the 
head of the household is a veteran.'' The term spouse is defined at 38 
U.S.C. 101(31), and does not include divorcees. VA is not making a 
change based on these comments.
    One commenter expressed support for the ``but for'' test used to 
determine a veteran's eligibility for assistance from SSVF, but 
encouraged VA to adopt a mandatory assessment for application in VA's 
screening requirements to ensure consistent and intelligent application 
of this standard. Another commenter suggested that such guidance could 
be

[[Page 9606]]

provided through a guidebook or through SSVF University. The ``but 
for'' test determines eligibility by asking if a veteran would be 
homeless if SSVF services were not being provided. This standard is 
used in HUD's programs, and ensures that recipients are not determined 
to be ineligible for a program's benefits upon receiving such benefits. 
VA does not believe it should articulate additional requirements in 
regulations. VA has published an SSVF Program Guide (updated March 31, 
2014, available online at: http://www.va.gov/HOMELESS/ssvf/docs/SSVFUniversity/SSVF_Program_Guide_March31_2014.pdf) that provides 
guidance to SSVF recipients to consider when applying the ``but for'' 
test, and VA's NOFAs provide further guidance as well. Indeed, another 
commenter supported adoption of the ``but for'' test and specifically 
noted that the next SSVF NOFA would offer necessary guidance in this 
area. As this commenter assumed, VA will update its guidance in the 
next NOFA we issue to reflect the changes made by this regulation. VA 
staff is also available to assist recipients in making these 
determinations when appropriate. VA is concerned that if it provided 
further guidance in regulation, it could produce a national standard 
that cannot be adjusted to account for local variations, and that hence 
would be inadequate for serving homeless veterans and their families in 
at least some communities. VA is not making a change from the proposed 
rule based on this comment.
    Another commenter suggested that grantees should focus their 
resources on the lowest-income veterans, and that programs with such a 
focus tend to have the greatest results in terms of reducing 
homelessness. VA agrees and believes that the new requirement for 
grantees to identify extremely low-income veterans and target resources 
to this population will have a positive effect. Another commenter 
recommended that VA pilot this approach, rather than establish a common 
requirement across the country, to ensure that local variables are 
taken into account. VA's definition of extremely low-income veteran 
family focuses on the area median income (AMI) specifically so that 
differences in income and cost of living can be taken into account. 
Additionally, grantees are located in the communities they serve and 
are uniquely equipped to address the needs of the local homeless 
population. VA is not making any changes based on these comments.
    VA received several comments concerning VA's proposed standard in 
Sec.  62.34(f), which would have limited SSVF emergency housing 
assistance to situations where permanent housing has been identified. 
In the supplemental information of the proposed rule, VA stated that 
permanent housing must be both identified and secured. These commenters 
expressed concern that the requirement that such housing be ``secured'' 
could result in homeless veterans having no short-term assistance, and 
would be inconsistent with the ``housing first'' model of the program. 
VA agrees with these concerns and is eliminating the requirement that 
such housing be secured. Under the revised provision, it will be 
sufficient to generally identify a housing unit to provide emergency 
housing assistance, as long as the other requirements of Sec.  62.34 
are satisfied.
    VA also proposed that homeless veterans could receive up to 72 
hours of emergency housing assistance if no identified housing is 
available. In recognition of a comment that 72 hours may not always be 
enough time to secure housing for a single veteran, VA is including a 
new provision that will allow for continued provision of emergency 
housing assistance when the grantee can certify that no other housing 
is available. For example, if a grantee can certify that no beds are 
available in a Grant and Per Diem (GPD) residence or a Health Care for 
Homeless Veterans (HCHV) residential program, the grantee can continue 
to provide emergency assistance to a homeless veteran through the SSVF 
program to ensure the veteran has a place to stay. VA is also extending 
the period of time in which a veteran and his or her spouse with 
dependent(s) can receive emergency housing assistance from 30 days to 
45 days. We believe that by including this flexibility, more homeless 
veterans and their families will avoid a relapse into homelessness 
while waiting for permanent housing.
    One commenter suggested that extremely low-income veteran families 
may need extended assistance, but that such extensions should be 
determined for each individual family through routine reassessments. VA 
notes that SSVF grantees decide the type and amount of assistance to 
offer participants, and that they can provide sustained support when 
appropriate. VA believes that the latitude provided for extremely low 
income families in the proposed rule is appropriate, and that no 
further changes are needed as a result of this comment.
    Another commenter suggested that veterans who are in a GPD program 
for more than 30 days should be able to receive assistance through the 
SSVF program. VA notes that such veterans, if they otherwise meet the 
eligibility criteria for the SSVF program, may receive services from 
both programs. SSVF is intended to provide rapid re-housing assistance 
through a short-term, focused intervention. As long as the assistance 
that GPD participants require is consistent with this mission and the 
veteran meets established eligibility criteria, SSVF grantees should 
not hesitate to provide services to them. VA is not making a change 
based on this comment.
    Another commenter suggested that the proposed rule would mean that 
service-connected disabled women veterans would not be eligible for 
services from the SSVF program if they did not have a spouse or minor 
dependents. This is not a correct reading of the rule. A veteran 
family, as defined in Sec.  62.2, includes a veteran who is a single 
person. Nothing in the proposed rule would change this standard, and as 
a result, VA is not making a change based on this comment.
    Finally, one commenter recommended that VA only include two 
categories of eligible veterans under Sec.  62.11: Those needing 
prevention and those seeking rapid re-housing. While these are the two 
primary forms of assistance, VA believes the three criteria identified 
in Sec.  62.11 represent the best description of eligible veterans, and 
therefore, VA is making no changes based on this comment.

Types of Covered Services

    Several commenters provided recommendations concerning the types of 
services that SSVF assistance should be able to provide. One commenter 
recommended that emergency housing assistance be available for up to 9 
months during any 12 month period to ensure that families are able to 
resolve crises that could otherwise result in them becoming homeless. 
The proposed rule would allow for this extension, so we are not making 
any changes based on this comment.
    Commenters recommended that VA create a separate category of 
assistance to cover a reasonable broker's fee for finding and arranging 
permanent housing. The commenters explained that broker's fees are 
often necessary in high population density areas, such as New York City 
or Los Angeles, and that fees can sometimes use the entire available 
amount of housing stability assistance. VA agrees with these comments 
and is including a new paragraph (e)(3) under Sec.  62.34 to cover the 
category of assistance that would specifically allow for provision of a 
reasonable broker's fee when appropriate.

[[Page 9607]]

    Another commenter urged VA to allow SSVF funds to pay for emergent 
medical or dental needs and medication. We do not believe we have 
authority to allow grant recipients to provide financial assistance for 
such purposes, and as a result, are not making a change based on this 
comment. The supportive services VA can provide are identified at 38 
U.S.C. 2044(b), and paragraph (b)(1)(D) of section 2044 only permits VA 
to offer ``assistance in obtaining and coordinating the provision of 
other public benefits . . . including--(i) health care services 
(including obtaining health insurance).'' In this context, VA 
interprets the statute to only authorize making funds available for 
coordinating and obtaining health care services from other providers, 
not to pay for or furnish such care or services. Eligible veterans may 
receive health care through VA medical facilities to address their 
medical needs.
    One commenter suggested VA allow increased flexibility for child 
care services. The commenter noted that veteran families can have a 
multitude of compositions, and that there may not be adequate community 
resources to support a child after school. VA understands that 
different families and children have different needs, but we believe it 
is necessary that we establish some standards to ensure that services 
are not provided for children who do not require child care. We believe 
that 13 is an appropriate age to draw that line, as children over that 
age are generally considered capable of taking care of themselves for 
short periods of time that would otherwise require supervision or care. 
Removing the age limit could allow misuse of these benefits, which 
would result in fewer resources being available to assist homeless 
veterans and their families.
    Another commenter recommended that VA ensure that basic air 
conditioning and heating should be an allowable expense in certain 
situations. VA believes that the proposed revisions would allow this 
when appropriate. In Sec.  62.36(f), which cites to HUD's regulations 
at 24 CFR 583.300(b), we establish standards of habitability. HUD's 
regulations provide in 24 CFR 583.300(b)(7) that ``[t]he housing must 
have adequate heating and/or cooling facilities in proper operating 
condition.'' If the residence requires but lacks heating or cooling 
based on the local climate, it would not be eligible for housing. As a 
result, VA is not making a change based on this comment.
    One commenter stated that women veterans look for, but are not 
finding, additional assistance from other VA, Federal, state, or local 
programs. VA currently requires SSVF grantees to coordinate access for 
other public benefits, and our reviews of these programs indicate that 
such coordination is taking place. As a result, we are not making any 
changes from this comment.
    Another commenter suggested that the proposed changes to general 
housing stability assistance are acceptable if the limits identified in 
the rule are followed. VA intends to ensure that SSVF grantees adhere 
to the requirements of the program, and is not making a change based on 
this comment.
    Several commenters recommended that SSVF funding should be 
available to assist homeowners. One commenter provided several 
scenarios in which a homeowner should qualify for financial assistance, 
including when the home's value is below the local average, when the 
home is uneconomical based on the potential sale price versus the 
demolition cost, when the home's tax value is less than 100% of the 
area median income, or when relocating the veteran would increase the 
risk for homelessness. This commenter argued that because poverty is 
often inter-generational, VA should provide greater flexibility to 
assist homeowners.
    VA agrees that poverty and homelessness can impact multiple 
generations of a family, and that is why it has supported the SSVF 
program, which provides assistance to a veteran's family to help 
prevent and escape from homelessness. VA also notes that homeowners are 
eligible under Sec.  62.11(a) if they would be lacking a fixed, 
regular, and adequate nighttime residence but for the grantee's 
assistance. Under the proposed rule at Sec.  62.38(a), SSVF grant 
recipients could assist homeowners in a number of ways, but could not 
provide mortgage assistance. Homeowners often require substantial 
assistance to cover costs or fees associated with a mortgage, and hence 
would require a greater share of resources than renters or leasers of 
property, resulting in an uneven distribution of assistance. 
Additionally, there are many programs at the Federal, state, and local 
levels to assist homeowners with their mortgages. Also, there is little 
evidence that homeowners become homeless upon losing a property. VA can 
ensure more persons receive support through the SSVF program by 
excluding mortgage costs from eligible financial assistance. 
Consequently, VA is not making a change to allow for financial 
assistance to cover costs associated with a mortgage.
    One commenter asked VA to clarify what ``other costs associated 
with home ownership'' includes. This was a phrase we used in the 
supplemental information of the proposed rule to describe Sec.  
62.38(a). That paragraph says that SSVF funds may not be used to pay 
for ``mortgage costs or costs needed by homeowners to assist with any 
fees, taxes, or other costs of refinancing.'' We believe this language 
is clear and refers to costs associated with paying a security interest 
or tax assessment for real property, and we are not making a change 
based on this comment.
    One commenter suggested that SSVF funds be made available to cover 
the cost of home repairs or alterations. VA does not believe this would 
be an appropriate use of SSVF funds for the same reason that mortgage 
costs are not included. SSVF is not a capital grant program, and other 
programs, such as Adapted Housing grants overseen by the Veterans 
Benefits Administration, already provide this service. VA is not making 
a change based on this comment.
    One commenter suggested that VA should specifically state that 
legal assistance can be made available to resolve transportation 
issues. We agree that difficulty securing transportation resulting from 
the lack of a driver's license can be an obstacle to escaping 
homelessness. While we believe the proposed rule would have allowed for 
this, VA is making a minor revision to Sec.  62.33(g) to specifically 
note that authorized legal assistance also includes assistance such as 
the lack of a driver's license.
    One commenter expressed concern with extending the period of 
Temporary Financial Assistance (TFA) because it could foster more 
reliance on the program. As explained in the proposed rule, VA received 
feedback from grantees suggesting that veteran families at lower levels 
of income are more difficult to reach and require more resources for 
interventions to succeed. Based on this feedback, we believe that the 
increased benefit amounts will help ensure that grantees can be 
successful in supporting extremely low-income veteran families while 
minimizing the risk that veteran families become dependent on such 
assistance over the long term. As a result, VA is making no changes 
based on this comment.
    Another commenter recommended that providers be authorized to make 
emergency housing assistance available once every 2 years instead of 
once every 3 years, as it is not unusual for a person who is homeless, 
formerly homeless, or at risk of homelessness to face another crisis 
that would require emergency

[[Page 9608]]

assistance within a 2 year period of initially receiving support. VA 
agrees with this comment, and is changing the 3 year standard proposed 
in Sec.  62.33 and 34 to now permit such assistance no more than once 
every 2 years. These revisions include changes to Sec.  62.34(c)(1)-
(2), which were not previously identified in the proposed rule but 
which would be inconsistent given these changes.
    Another commenter noted that limitations on the use of general 
housing stability assistance funds is appropriate, so long as the 
limits in the rule are followed, and VA intends to do so. We are not 
making a change based on this comment.
    Finally, one commenter suggested that caps on TFA for otherwise 
eligible families fleeing domestic violence should be lifted in the 
event that a new episode of domestic violence occurs. The commenter 
noted that this change would allow SSVF grantees to serve the immediate 
needs of households fleeing domestic violence. VA agrees with this 
recommendation and is including a provision in a new paragraph (e) of 
Sec.  62.35 that would allow families experiencing domestic violence to 
receive additional TFA resources. This would apply even if the veteran 
was the aggressor in the situation. Under the law, a veteran family is 
defined to include a veteran who is a single person, and a family in 
which the head of household or the spouse of the head of household is a 
veteran. 38 U.S.C. 2044(f)(7). Through regulation, VA has interpreted 
this to authorize support if a veteran becomes absent from a household 
or dies while other members of the veteran family are receiving 
supportive services for a grace period, not to exceed 1 year, following 
the absence or death of the veteran. 38 CFR 62.35(c). In the event a 
participant becomes ineligible to receive supportive services under 
this Program, the grantee must provide the participant with information 
on other available programs or resources. 38 CFR 62.35(d). VA would 
apply these same principles and practices to cases of domestic 
violence. Families experiencing domestic violence should not be forced 
to remain in a volatile situation that can contribute to continued 
homelessness. VA is additionally revising the provisions concerning TFA 
to specifically authorize additional allocations in the event of a 
subsequent episode of domestic violence. Receipt of such support would 
reset the time period during which a family could not receive services 
under Sec.  62.34; for example, under Sec.  62.34(b)(1), a participant 
may receive payments for utilities for a maximum of 10 months during a 
2-year period, and the 2-year period would be re-started after 
providing additional assistance under Sec.  62.35(e) for a family 
fleeing domestic violence. It is important to understand that these 
benefits will be provided on a temporary basis and grantees should work 
to connect the family with other resources within the Continuum of 
Care. In addition, these benefits will only be available for families 
who are already receiving supportive services through this Program. If 
a family has previously left the household of an eligible veteran and 
seeks services from this Program, VA would not be able to provide 
support.
    In developing the final rule, VA identified an area of potential 
confusion or conflict. In proposed Sec.  62.34(a)(1), VA proposed 
allowing for rental assistance to be used to pay for penalties or fees 
incurred and required to be paid by the participant under an existing 
lease or court order. In proposed Sec.  62.38(g), VA proposed 
prohibiting grantees from using supportive services grant funds to pay 
for court-ordered judgments or fines. These provisions could be read in 
conflict, but were not intended to be. To remove any confusion, VA is 
modifying Sec.  62.38(g) to prohibit the use of funds to pay for court-
ordered judgments, except when such payments are authorized under Sec.  
62.34(a)(1). This revision is purely technical and will clarify VA's 
original intent.

Logistical and Operational Issues

    Several commenters raised questions or offered recommendations on 
the logistics and operations of the SSVF program. One asked if the 
proposed revisions would prohibit a participating organization from 
reviewing the classification of participants to determine in which 
category they should be placed. The rule only requires that a 
reclassification occur once every 3 years, but it does not prohibit a 
review more often than that, so if a provider wanted to review these 
classifications more frequently, they would be free to do so. VA is not 
making a change based on this comment.
    One commenter, in noting the proposed changes, suggested that the 
percentage of funds allocated for homelessness prevention should be 
increased to support extremely low-income veteran families, case 
management services, and other supportive services. Determinations 
regarding the allocation of funds are outside the scope of this rule, 
as they are announced in each year's NOFA. Future NOFAs will consider 
the changes made by this rule when allocating resources. The same 
commenter suggested that grant recipients in the same geographic area 
will coordinate outreach efforts to identify appropriate veteran 
families. This is a stated expectation for the program already, and VA 
agrees with this approach wholeheartedly. Such a strategy will ensure 
that assistance is available for more veterans in a given area. VA is 
not making a change based on this comment.
    One commenter also recommended that VA provide more HUD-VA 
Supportive Housing (HUD-VASH) vouchers to assist veterans in securing 
housing. This comment is outside the scope of this rulemaking, and the 
number of the HUD-VASH vouchers issued each year is determined based on 
the availability of appropriations. As a result, VA is not making a 
change based on this comment.
    Two commenters suggested that participation in a Continuum of 
Care's (CoC) coordinated assessment system should be required for 
participating grantees. VA agrees with this recommendation, and adopts 
the specific language provided by one commenter in this area as a new 
paragraph (g) in Sec.  62.36. Specifically, VA will require grantees to 
participate in the ``development, implementation, and ongoing 
operations of their local Continuum of Care's coordinated assessment 
system, or equivalent, as described in the McKinney-Vento Act as 
amended by the HEARTH Act.'' Many providers under the SSVF program are 
already familiar with participating in these efforts, and VA agrees 
with the commenters that this will compel greater collaboration among 
VA, HUD, and CoC partners and strengthen VA's oversight of coordination 
activities among all grantees and their communities.
    Another commenter recommended that VA allow SSVF administrators to 
exceed identified limits on the amount of assistance that can be 
provided in a limited number of cases. While VA understands the point 
that some special cases may require assistance in excess of the limits, 
allowing exceptions to these limits would be counterproductive by 
encouraging high resource use to a small number of veterans at the 
expense of providing assistance to a larger number of veterans. 
Moreover, these exceptions could ultimately render the rule 
meaningless, and the administrative burden for tracking or approving 
such exceptions would divert resources from assisting homeless 
veterans. As a result, VA is not making changes based on this comment.

[[Page 9609]]

    Another commenter offered a similar recommendation by suggesting 
that rather than establishing maximum amounts of financial assistance 
that can be offered over a set period of time (e.g., no more than 
$1,500 per 2-year period for general housing stability under Sec.  
62.34(e)(2)), VA should allow smaller amounts of assistance over a 
longer period of time. We believe that such a system would be extremely 
difficult to administer and would provide limited benefits for 
veterans. SSVF grantees would have to track every allocation made to 
every veteran family for every purpose to determine if such allocations 
were in excess of the authorized amount over an extended period of 
time. This would require greater overhead expenses, which would detract 
from the amount made available to homeless veterans.
    One commenter expressed concern that funds distributed through the 
SSVF program were being provided to grantees in the Atlanta metro area 
who were not using these resources to provide assistance to homeless 
veterans. The commenter asked that no funding be provided to these 
entities until after there has been a formal investigation by the 
Office of Inspector General (OIG). VA takes seriously any concerns 
about the allocation of available resources. OIG recently completed an 
audit of the SSVF program (``Audit of the Supportive Services for 
Veterans Families Program,'' OIG Report 13-01959-109, published March 
31, 2014) and found that it has ``adequate financial controls in place 
that are working as intended to provide reasonable assurance that funds 
are appropriately expended by grantees.'' VA forwarded this comment to 
the OIG, which has authority to determine whether it will conduct a 
review. If OIG investigates and finds there are or were issues, we will 
take appropriate corrective action to ensure that resources are used 
for authorized purposes only.
    Based on the rationale set forth in the preamble to the proposed 
rule and in this preamble, VA is adopting the proposed rule as a final 
rule, with the above stated changes.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as revised by this 
final rulemaking, represents VA's implementation of its legal authority 
on this subject. Other than future amendments to this regulation or 
governing statutes, no contrary guidance or procedures are authorized. 
All existing or subsequent VA guidance must be read to conform with 
this rulemaking if possible or, if not possible, such guidance is 
superseded by this rulemaking.

Paperwork Reduction Act

    Although this action contains provisions constituting collections 
of information, at 38 CFR 62.20, 62.36, and 62.60, under the provisions 
of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), no new or 
proposed revised collections of information are associated with this 
final rule. The information collection requirements for Sec. Sec.  
62.20, 62.36, and 62.60 are currently approved by the Office of 
Management and Budget (OMB) and have been assigned OMB control number 
2900-0757.
    In Sec.  62.20(a), we state that the collection of information must 
include a description of how the applicant will ensure that the program 
is targeted to very-low income families. Under the current OMB-approved 
application, VA Form 10-10072, VA requires the applicant to 
``[d]escribe the proposed outreach and referral plan to identify and 
assist eligible very low-income Veteran families who are most in need 
of supportive services.'' The current application specifies that the 
response should include an explanation of the ``[i]dentification of 
target population(s) to be served.'' Because this specific question on 
the application correlates directly with the requirement that we are 
adding in Sec.  62.20(a), the information collection and corresponding 
burden hours remain unchanged.
    In a final rule published on November 10, 2010, we stated that OMB 
had approved collections of information contained in, inter alia, Sec.  
62.36(c). 75 FR 68975, 68979-80, Nov. 10, 2010. In both the proposed 
and final regulation, a collection also appeared in Sec.  62.36(a). 
That collection required grantees to classify all participants and 
verify and document participant eligibility at least once every 3 
months. The verification of eligibility is reflected on VA Form 10-
0508b, one of the forms approved by OMB and assigned OMB control number 
2900-0757, which requires quarterly reports of detailed information and 
data on participant screenings and compliance with all SSVF 
requirements. However, the requirement to reclassify participants every 
3 months was not contained on that form. In Sec.  62.36(a), we remove 
the requirement that grantees reclassify participant eligibility every 
3 months; however, we retain the requirement that the grantee certify 
participant eligibility. Therefore, although we are amending the 
collection that appears at Sec.  62.36(a), the amendment will not 
result in a change to the form. Moreover, although we omitted specific 
reference to Sec.  62.36(a) in the final rulemaking published on 
November 10, 2010, we did in fact seek approval for the collection 
requirements in VA Form 10-0508b, which appear in this rule. Therefore, 
we do not believe that this rulemaking contains amendments to 
collections approved under OMB control number 2900-0757.

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will 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-
612. This final rule will only impact those entities that choose to 
participate in SSVF. Small entity applicants will not be affected to a 
greater extent than large entity applicants. Small entities must elect 
to participate, and it is considered a benefit to those who choose to 
apply. To the extent this final rule will have any impact on small 
entities, it will not have an impact on a substantial number of small 
entities. In FY 2013, 151 organizations successfully submitted 
applications for SSVF funding and would be effected by this rule. The 
changes described in this rule should have a positive impact compared 
to the existing rule, as changes will generally aid grantees in 
providing service and thereby reduce time demands. On this basis, the 
Secretary certifies that the adoption of this final rule will 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-
612. Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking is exempt 
from the initial and final regulatory flexibility analysis requirements 
of 5 U.S.C. 603 and 604.

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,'' requires review by

[[Page 9610]]

OMB, unless OMB waives such review, as ``any regulatory action that is 
likely to result in a rule that may: (1) Have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action 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 
this Executive Order.''
    The economic, interagency, budgetary, legal, and policy 
implications of this regulatory action have been examined, and it has 
been determined not to be a significant regulatory action under 
Executive Order 12866. VA's impact analysis can be found as a 
supporting document at http://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its impact analysis are available on VA's Web 
site at http://www.va.gov/orpm/, by following the link for VA 
Regulations Published from FY 2004 to FYTD.

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 the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This final rule will have no such effect on 
State, local, and tribal governments, or on the private sector.

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, and 64.033, VA Supportive Services for Veteran Families 
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. Jose D. 
Riojas, Chief of Staff, approved this document on February 12, 2015, 
for publication.

List of Subjects in 38 CFR Part 62

    Administrative practice and procedure, Day care, Disability 
benefits, Government contracts, Grant programs-health, Grant programs-
social services, Grant programs-transportation, Grant programs-
veterans, Grants-housing and community development, Heath care, 
Homeless, Housing, Housing assistance payments, Indian-lands, 
Individuals with disabilities, Low and moderate income housing, 
Manpower training program, Medicare, Medicaid, Public assistance 
programs, Public housing, Relocation assistance, Rent subsidies, 
Reporting and recordkeeping requirements, Rural areas, Social Security, 
Supplemental Security Income (SSI), Travel and transportation expenses, 
Unemployment compensation, Veterans.

    Dated: February 19, 2015.
William F. Russo,
Acting Director, Office of Regulation Policy & Management, Office of 
the General Counsel, U.S. Department of Veterans Affairs.

    For the reasons set out in the preamble, the Department of Veterans 
Affairs amends 38 CFR part 62 as follows:

PART 62--SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAMS

0
1. The authority citation for part 62 continues to read as follows:

    Authority:  38 U.S.C. 501, 2044, and as noted in specific 
sections.

0
2. Amend Sec.  62.2 by:
0
a. Removing the definition of ``Emergency supplies''.
0
b. Adding the definitions of ``Emergency housing'', ``Extremely low-
income veteran family'', ``General housing stability assistance'', and 
``Rapid re-housing'', in alphabetical order.
0
c. Revising the definitions of ``Homeless'', ``Occupying permanent 
housing'', and ``Permanent housing''.
    The additions and revisions read as follows:


Sec.  62.2  Definitions.

* * * * *
    Emergency housing means temporary housing provided under Sec.  
62.34(f) that does not require the participant to sign a lease or 
occupancy agreement.
    Extremely low-income veteran family means a veteran family whose 
annual income, as determined in accordance with 24 CFR 5.609, does not 
exceed 30 percent of the median income for an area or community.
    General housing stability assistance means the provision of goods 
or payment of expenses that are directly related to supporting a 
participant's housing stability and are authorized under Sec.  
62.34(e).
* * * * *
    Homeless has the meaning given that term in 24 CFR 576.2.
* * * * *
    Occupying permanent housing means meeting any of the conditions set 
forth in Sec.  62.11.
* * * * *
    Permanent housing means community-based housing without a 
designated length of stay where an individual or family has a lease in 
accord with state and Federal law that is renewable and terminable only 
for cause. Examples of permanent housing include, but are not limited 
to, a house or apartment with a month-to-month or annual lease term or 
home ownership.
* * * * *
    Rapid re-housing means an intervention designed to help individuals 
and families quickly exit homelessness and return to permanent housing. 
Rapid re-housing assistance is offered without preconditions (such as 
employment, income, absence of criminal record, or sobriety) and the 
resources and services provided are typically tailored to the unique 
needs of the household. The three core components of rapid re-housing 
include housing identification, rent and move-in financial assistance, 
and rapid re-housing case management and services. While a rapid re-
housing program must have all three core components available, it is 
not required that a single entity provide all three services nor that a 
household utilize them all.
* * * * *

0
3. Revise Sec.  62.11 to read as follows:


Sec.  62.11  Participants--occupying permanent housing.

    A very low-income veteran family will be considered to be occupying 
permanent housing if the very low-income veteran family:
    (a) Is residing in permanent housing and at risk of becoming 
homeless, per conditions in paragraph (b)(1) of this section, but for 
the grantee's assistance;
    (b)(1) Is lacking a fixed, regular, and adequate nighttime 
residence, meaning:
    (i) That the veteran family's primary nighttime residence is a 
public or private place not designed for or ordinarily used as a 
regular sleeping accommodation for human beings, including a car, park, 
abandoned bus or train station, airport, or camping ground;

[[Page 9611]]

    (ii) That the veteran family is living in a supervised publicly or 
privately operated shelter designated to provide temporary living 
arrangements (including congregate shelters, transitional housing, and 
hotels and motels paid for by charitable organizations or by federal, 
State, or local government programs for low-income individuals); or
    (iii) That the veteran family is exiting an institution where the 
veteran family resided for 90 days or less and who resided in an 
emergency shelter or place not meant for human habitation immediately 
before entering that institution;
    (2) Are at risk to remain in the situation described in paragraph 
(b)(1) of this section but for the grantee's assistance; and
    (3) Scheduled to become a resident of permanent housing within 90 
days pending the location or development of housing suitable for 
permanent housing; or
    (c) Has met any of the conditions described in paragraph (b)(1) of 
this section after exiting permanent housing within the previous 90 
days to seek other housing that is responsive to the very low-income 
veteran family's needs and preferences.

    Note to paragraph (c):  For limitations on the provision of 
supportive services to participants classified under paragraph (c) 
of this section, see Sec.  62.35.


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


0
4. Amend Sec.  62.20 by:
0
a. Redesignating paragraphs (a)(2) through (7) as paragraphs (a)(3) 
through (8) respectively.
0
b. Adding a new paragraph (a)(2).
0
c. Adding a parenthetical at the end of the section.
    The additions to read as follows:


Sec.  62.20  Applications for supportive services grants.

    (a) * * *
    (2) A description of how the applicant will ensure that services 
are provided to very low-income veteran families for whom:
    (i) No appropriate housing options have been identified for the 
veteran family; and
    (ii) The veteran family lacks the financial resources and/or 
support networks to obtain or remain in permanent housing;
* * * * *

(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0757.)

0
5. Amend Sec.  62.22 by revising paragraph (b)(2)(i) to read as 
follows:


Sec.  62.22  Scoring criteria for supporting services grant applicants.

* * * * *
    (b) * * *
    (2) * * *
    (i) Applicant has a feasible outreach and referral plan to identify 
and assist very low-income veteran families occupying permanent housing 
that may be eligible for supportive services and are most in need of 
supportive services. The plan ensures that the applicant's program will 
assist very low-income families who also meet the requirements of Sec.  
62.20(a)(2).
* * * * *

0
6. Amend Sec.  62.31 by:
0
a. Revising the introductory text.
0
b. In paragraph (d), removing the word ``and''.
0
c. In paragraph (e), removing the period at the end of the paragraph 
and adding in its place ``; and''.
0
d. Adding paragraph (f).
    The revisions and additions read as follows:


Sec.  62.31  Supportive service: Case management services.

    Grantees must provide case management services that prioritize 
housing stability as the primary goal of SSVF services and include, at 
a minimum:
* * * * *
    (f) Assisting participants in locating, obtaining, and retaining 
suitable permanent housing. Such activities may include: Identifying 
appropriate permanent housing and landlords willing to work with 
homeless veteran families; tenant counseling; mediation with landlords; 
and outreach to landlords.
* * * * *

0
7. Amend Sec.  62.33 by:
0
a. Revising paragraph (c).
0
b. In paragraph (d)(3)(i), removing ``$1,000'' and adding in its place 
``$1,200''.
0
c. Revising paragraph (g).
0
d. Revising paragraph (h) introductory text.
0
e. Revising paragraph (h)(2)(i).
    The revisions read as follows:


Sec.  62.33  Supportive service: Assistance in obtaining and 
coordinating other public benefits.

* * * * *
    (c) Personal financial planning services, which include, at a 
minimum, providing recommendations regarding day-to-day finances and 
achieving long-term budgeting and financial goals. SSVF funds may pay 
for credit counseling and other services necessary to assist 
participants with critical skills related to household budgeting, 
managing money, accessing a free personal credit report, and resolving 
credit problems.
* * * * *
    (g) Legal services, including court filing fees, to assist a 
participant with issues that interfere with the participant's ability 
to obtain or retain permanent housing or supportive services, including 
issues that affect the participant's employability and financial 
security (such as the lack of a driver's license). However, SSVF funds 
may not be used to pay for court-ordered judgments or fines, pursuant 
to Sec.  62.38.
    (h) Child care for children under the age of 13, unless disabled. 
Disabled children must be under the age of 18. Child care includes the:
* * * * *
    (2) * * *
    (i) Payments for child care services must be paid by the grantee 
directly to an eligible child care provider and cannot exceed a maximum 
of 6 months in a 12-month period, and 10 months during a 2-year period, 
such period beginning on the date that the grantee first pays for child 
care services on behalf of the participant. For extremely low-income 
veteran families, payments for child care services on behalf of that 
participant cannot exceed 9 months in a 12-month period and 12 months 
during a 2-year period, such period beginning on the date that the 
grantee first pays for child care services on behalf of the 
participant.
* * * * *

0
8. Amend Sec.  62.34 by:
0
a. Revising paragraphs (a)(1), (b)(1), (c)(1) and (2), and (e).
0
b. Redesignating paragraph (f) as paragraph (g).
0
c. Adding a new paragraph (f).
    The revisions and addition read as follows:


Sec.  62.34  Other supportive services.

* * * * *
    (a) * * *
    (1) A participant may receive rental assistance for a maximum of 10 
months during a 2-year period (consecutive or nonconsecutive), such 
period beginning on the date that the grantee first pays rent on behalf 
of the participant; however, a participant cannot receive rental 
assistance for more than 6 months in any 12-month period beginning on 
the date that the grantee first pays rent on behalf of the participant. 
For extremely low-income veteran families, payments for rent cannot 
exceed 9 months in any 12-month period and 12 months during a 2-year 
period, such

[[Page 9612]]

period beginning on the date that the grantee first pays rent on behalf 
of the participant. The rental assistance may be for rental payments 
that are currently due or are in arrears, and for the payment of 
penalties or fees incurred by a participant and required to be paid by 
the participant under an existing lease or court order. In all 
instances, rental assistance may only be provided if the payment of 
such rental assistance will directly allow the participant to remain in 
permanent housing or obtain permanent housing.
* * * * *
    (b) * * *
    (1) A participant may receive payments for utilities for a maximum 
of 10 months during a 2-year period, such period beginning on the date 
that the grantee first pays utility fees on behalf of the participant; 
provided, however, that a participant cannot receive payments for 
utilities for more than 6 months in any 12-month period beginning on 
the date that the grantee first pays a utility payment on behalf of the 
participant. For extremely low-income veteran families, payments for 
utilities cannot exceed 9 months in any 12-month period and 12 months 
during a 2-year period, such periods beginning on the date that the 
grantee first pays a utility payment on behalf of the participant. The 
payment for utilities may be for utility payments that are currently 
due or are in arrears, provided that the payment of such utilities will 
allow the participant to remain in permanent housing or obtain 
permanent housing.
* * * * *
    (c) * * *
    (1) A participant may receive assistance with the payment of a 
security deposit a maximum of one time in every 2-year period, such 
period beginning on the date the grantee pays a security deposit on 
behalf of a participant.
    (2) A participant may receive assistance with the payment of a 
utility deposit a maximum of one time in every 2-year period, such 
period beginning on the date the grantee pays a utility deposit on 
behalf of a participant.
* * * * *
    (e) General housing stability assistance. (1) A grantee may provide 
to a participant items necessary for a participant's life or safety on 
a temporary basis, in order to address a participant's emergency 
situation.
    (2) A grantee may pay directly to a third party (and not to a 
participant), in an amount not to exceed $1,500 per participant during 
any 2-year period, beginning on the date that the grantee first submits 
a payment to a third party, the following types of expenses:
    (i) Expenses associated with gaining or keeping employment, such as 
obtaining uniforms, tools, certifications, and licenses.
    (ii) Expenses associated with moving into permanent housing, such 
as obtaining basic kitchen utensils, bedding, and other supplies.
    (iii) Expenses necessary for securing appropriate permanent 
housing, such as fees for housing applications, housing inspections, or 
background checks.
    (3) A grantee may pay directly to a third party (and not to a 
participant) a reasonable amount for a broker's fee when such a third 
party has assisted in identifying permanent housing. The reasonableness 
of a fee will be determined based on conditions in the local housing 
market.
    (f) Emergency housing assistance. If permanent housing, appropriate 
shelter beds and transitional housing are not available and subsequent 
rental housing has been identified generally but is not immediately 
available for move-in by the participant, then a grantee may place a 
participant in emergency housing, subject to the following limitations:
    (1) Placement for a single veteran may not exceed 72 hours, unless 
the grantee can certify that appropriate shelter beds and transitional 
housing are still unavailable at the end of the 72 hour period.
    (2) Placement for a veteran and his or her spouse with dependent(s) 
may not exceed 45 days.
    (3) A participant may be placed in emergency housing only once 
during any 2-year period, beginning on the date that the grantee first 
pays for emergency housing on behalf of the participant.
    (4) Permanent housing will be available before the end of the 
period during which the participant is placed in emergency housing.
    (5) The cost of the emergency housing must be reasonable in 
relation to the costs charged for other available emergency housing 
considering the location, quality, size, and type of the emergency 
housing.
* * * * *

0
9. Amend Sec.  62.35 by:
0
a. Revising paragraph (a).
0
b. In paragraph (b), remove ``Sec.  62.11(a)(3)'' and add in its place 
``Sec.  62.11(c)'' in all places it occurs.
0
c. Adding a new paragraph (e).
    The revision and additions read as follows:


Sec.  62.35  Limitations on and continuations of the provision of 
supportive services to certain participants.

    (a) Extremely low-income veteran families. A participant classified 
as an extremely low-income veteran family will retain that designation 
as long as the participant continues to meet all other eligibility 
requirements.
* * * * *
    (e) Families fleeing domestic violence. Notwithstanding the 
limitations in Sec.  62.34 concerning the maximum amount of assistance 
a family can receive during defined periods of time, a household may 
receive additional assistance if it otherwise qualifies for assistance 
under this Part and is fleeing from a domestic violence situation. A 
family may qualify for assistance even if the veteran is the aggressor 
or perpetrator of the domestic violence. Receipt of assistance under 
this provision resets the tolling period for the limitations on the 
maximum amount of support that can be provided in a given amount of 
time under Sec.  62.34.
* * * * *
0
10. Amend Sec.  62.36 by:
0
a. Revising paragraph (a).
0
b. Adding new paragraphs (f) and (g).
0
c. Adding a parenthetical at the end of the section.
    The revision and additions read as follows:


Sec.  62.36  General operation requirements.

    (a) Eligibility documentation. Prior to providing supportive 
services, grantees must verify and document each participant's 
eligibility for supportive services and classify the participant under 
one of the categories set forth in Sec.  62.11. Grantees must recertify 
the participant's eligibility as a very low-income veteran family at 
least once every 3 months.
* * * * *
    (f) Habitability standards. (1) Grantees using supportive services 
grant funds to provide rental assistance, payments of utilities fees, 
security deposits, or utilities deposits, as set forth under Sec.  
62.34, on behalf of a participant moving into a new (different) housing 
unit will be required to conduct initial and any appropriate follow-up 
inspections of the housing unit into which the participant will be 
moving. Such inspections shall ensure that the housing unit meets the 
conditions set forth in 24 CFR 583.300(b) and do not require the use of 
a certified inspector. Inspections should occur no later than three (3) 
working days after the housing unit has been identified to the SSVF 
grantee, unless the Alternative Inspection Method is used to meet the 
requirements of this paragraph.

[[Page 9613]]

    (2) Alternative inspection method. An inspection of a property will 
be valid for purposes of this paragraph if:
    (i) The inspection was conducted pursuant to the requirements of a 
Federal, State, or local housing program (including, but not limited 
to, the Home investment partnership program under title II of the 
Cranston-Gonzalez National Affordable Housing Act or the low-income 
housing tax credit program under section 42 of the Internal Revenue 
Code of 1986);
    (ii) If the inspection was not conducted pursuant to the 
requirements of a Federal housing program, the public housing agency 
has certified to the Secretary that such standard or requirement 
provides the same (or greater) protection to occupants of inspected 
dwelling units;
    (iii) Pursuant to the inspection, the property was determined to 
meet the requirements regarding housing quality or safety applicable to 
properties assisted under such program; and
    (iv) The inspection was conducted within the past 2 years.
    (g) Continuum of Care coordinated assessment. Grantees must 
participate in the development, implementation, and ongoing operations 
of their local Continuum of Care's coordinated assessment system, or 
equivalent, as described in the McKinney-Vento Act, as amended by the 
HEARTH Act (42 U.S.C. 11302).
* * * * *

(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0757.)

0
11. Add Sec.  62.38 to read as follows:


Sec.  62.38  Ineligible activities.

    Notwithstanding any other section in this part, grantees are not 
authorized to use supportive services grant funds to pay for the 
following:
    (a) Mortgage costs or costs needed by homeowners to assist with any 
fees, taxes, or other costs of refinancing.
    (b) Construction or rehabilitation of buildings.
    (c) Home care and home health aides typically used to provide care 
in support of daily living activities. This includes care that is 
focused on treatment for an injury or illness, rehabilitation, or other 
assistance generally required to assist those with handicaps or other 
physical limitations.
    (d) Credit card bills or other consumer debt.
    (e) Medical or dental care and medicines.
    (f) Direct cash assistance to participants.
    (g) Court-ordered judgments or fines, except for those supported 
under Sec.  62.34(a)(1).
    (h) Pet care.
    (i) Entertainment activities.

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


0
12. Amend Sec.  62.60 by adding a parenthetical at the end of the 
section to read as follows:


Sec.  62.60  Program or budget changes and corrective action plans.

* * * * *

(The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-0757.)

[FR Doc. 2015-03753 Filed 2-23-15; 8:45 am]
BILLING CODE 8320-01-P