[Federal Register Volume 87, Number 105 (Wednesday, June 1, 2022)]
[Rules and Regulations]
[Pages 33025-33047]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-10930]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 79

RIN 2900-AR33


Legal Services for Homeless Veterans and Veterans At-Risk for 
Homelessness Grant Program

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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SUMMARY: The Department of Veterans Affairs (VA) issues this rule to 
implement a new authority requiring VA to award grants to eligible 
entities that will provide certain legal services for homeless veterans 
and veterans at risk for homelessness. This new grant program is within 
the continuum of VA's homeless services programs. This rulemaking 
specifies grant eligibility criteria, application requirements, scoring 
criteria, constraints on the allocation and use of the funds, and other 
requirements necessary to implement this grant program.

DATES: 
    Effective date: This interim final rule is effective July 1, 2022.
    Comment date: Comments must be received on or before August 1, 
2022.

ADDRESSES: Comments must be submitted through www.Regulations.gov. 
Comments received will be available at regulations.gov for public 
viewing, inspection or copies. Comments received will be available at 
regulations.gov for public viewing, inspection or copies.

FOR FURTHER INFORMATION CONTACT: Madolyn Gingell, National Coordinator, 
Legal Services for Veterans, Veterans Justice Programs, Clinical 
Services, Veterans Health Administration, Department of Veterans 
Affairs, 810 Vermont Ave. NW, Washington, DC 20420, (239) 223-4681. 
(This is not a toll-free telephone number.)

SUPPLEMENTARY INFORMATION: 

Background on Governing Statute and Public Input

    On January 5, 2021, the Johnny Isakson and David P. Roe, M.D. 
Veterans Health Care and Benefits Improvement Act of 2020, Public Law 
116-315 (the Act) was enacted in law to improve the lives of veterans 
during the COVID-19 pandemic and beyond. Several sections, including 
section 4202, of the Act were created to better serve veterans who are 
struggling with homelessness or housing insecurity. Id. Section 4202 of 
the Act, codified at section 2022A of title 38, United States Code 
(U.S.C.), directs the Secretary of Veterans Affairs (Secretary) to 
award grants to eligible entities to provide legal services to homeless 
veterans and veterans at risk for homelessness.
    The Act requires that VA, in establishing criteria and requirements 
for grants under section 4202 of the Act, consult with organizations 
that have experience in providing services to homeless veterans. 
Therefore, in March 2021, we solicited feedback from selected veteran 
service organizations, Equal Justice Works (EJW), and other legal 
services organizations with experience in providing services to 
homeless veterans via email. VA requested information in five areas: 
(1) Criteria and requirements necessary to carry out this grant program 
in rural communities, on trust lands, or in territories and possessions 
of the United States; (2) types of legal services VA should consider 
authorizing as part of this grant program; (3) evaluation criteria VA 
should consider using to assess the operational effectiveness and cost 
effectiveness of this grant program; (4) general criteria and 
requirements that VA should have for this grant program; and (5) 
criteria that VA require for eligible entities to receive grants under 
this grant program. We received input from 13 organizations. The 
majority of the comments centered on: (1) Definitions that should be 
included in the regulation (Sec.  79.5) and/or Notice of Funding 
Opportunity (NOFO); (2) the types of legal services that should be 
provided to eligible veterans to include an expanded view of issues 
impacting the veteran population that may not be seen as directly tied 
to housing instability, such as consumer debt issues and income support 
services (Sec.  79.20); (3) scoring criteria considerations, which 
focused on an applicant's connections to a community, ability to work 
with other organizations, and cultural competence with the affected 
population being served (Sec.  79.35); and (4) metrics the legal 
services programs could use for VA to determine their cost and 
operational effectiveness. The feedback received is publicly available 
online at www.regulations.gov.

Part 79, of Title 38, Code of Federal Regulations

    Through this interim final rule, VA establishes and implements, in 
new part 79 of title 38, Code of Federal Regulations (CFR), the Legal 
Services for Homeless Veterans and Veterans At-Risk for Homelessness 
Grant Program (hereinafter referred to as the ``Grant Program''). 
Establishment of this new part ensures organization and clarity for

[[Page 33026]]

implementation of this new grant program. By issuance of the 
regulations in this new part, VA implements the Grant Program to award 
grants to eligible entities who will provide legal services to eligible 
veterans. The content of this new part is described in detail below.
    Consistent with section 4202 of the Act, part 79 is titled the 
Legal Services for Homeless Veterans and Veterans At-Risk for 
Homelessness Grant Program.

Section 79.0 Purpose and Scope

    Section 79.0 explains the purpose and scope of part 79. Paragraph 
(a) states that the purpose of this part is to implement the Legal 
Services for Homeless Veterans and Veterans At-Risk for Homelessness 
Grant Program. This Grant Program authorizes VA to award legal services 
grants to eligible entities to provide legal services to eligible 
veterans. This is consistent with the intent and purpose of section 
4202 of the Act.
    Paragraph (b) states that legal services covered by this part are 
those services that address the needs of eligible veterans who are 
homeless or at risk for homelessness. This is consistent with the 
intent and purpose of the Grant Program described in section 4202 of 
the Act.

Section 79.5 Definitions

    Section 79.5 contains the definitions for key terms that apply to 
the new part 79 and to any Notice of Funding Opportunity (NOFO) for 
this Grant Program. The definitions are listed in alphabetical order, 
beginning with the definition of applicant.
    VA defines applicant to mean an eligible entity that submits an 
application for a legal services grant announced in a NOFO. VA is 
defining applicant in this manner since only an eligible entity, as 
specified in Sec.  79.10, may submit an application for a legal 
services grant under this part in accordance with Sec.  79.25. This 
definition is based also on a plain language understanding of this term 
and is consistent with other grant programs that VA administers, such 
the Supportive Services for Veteran Families (SSVF) Program. See 38 CFR 
62.2. As explained in Sec.  79.25, VA will require submission of an 
application similar to other grant programs that VA administers.
    VA defines at risk for homelessness to mean an individual who meets 
the criteria identified in Sec.  79.15(b).
    VA defines direct Federal financial assistance to mean Federal 
financial assistance received by an entity selected by the Government 
or a pass-through entity as defined in 38 CFR 50.1(d) to provide or 
carry out a service (e.g., by contract, grant, or cooperative 
agreement). This term is used for purposes of Sec.  79.80 pertaining to 
faith-based organizations and is consistent with how VA defines this in 
the SSVF Program. See 38 CFR 62.62.
    VA defines disallowed costs as costs charged by a grantee that VA 
determines to be unallowable based on applicable Federal cost 
principles or based on this part or the legal services grant agreement. 
This is consistent with how VA defines this term in the SSVF Program. 
See 38 CFR 62.2. This term is used for purpose of grant closeout 
procedures in Sec.  79.115.
    VA defines eligible entity to mean an entity who meets the 
requirements of Sec.  79.10.
    VA defines eligible veteran as a veteran that meets the 
requirements of Sec.  79.15(a) or (b). As discussed later in this 
rulemaking, Sec.  79.15 describes the eligibility criteria to be an 
eligible veteran under part 79.
    VA defines grantee as an eligible entity that is awarded a legal 
services grant under this part. This is consistent with how VA defines 
grantee for other VA grant programs and is consistent with the plain 
meaning of this term.
    Consistent with 38 U.S.C. 2002(a)(1), VA defines homeless veteran 
to mean a veteran who is homeless as that term is defined in subsection 
(a) or (b) of section 103 of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11302).
    For the purposes of this part, Indian tribe means an Indian tribe 
as defined in 25 U.S.C. 4103. Section 4103(13)(A) of title 25, U.S.C., 
defines Indian tribe in general to mean a tribe that is a Federally or 
a State recognized tribe. Section 4103(13)(B) of title 25, U.S.C., 
further defines Federally recognized tribe to mean any Indian tribe, 
band, nation, or other organized group or community of Indians, 
including any Alaska Native village or regional or village corporation 
as defined in or established pursuant to the Alaska Native Claims 
Settlement Act (43 U.S.C. 1601 et seq.), that is recognized as eligible 
for the special programs and services provided by the United States to 
Indians because of their status as Indians pursuant to the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450 et seq.). 
Section 4103(13)(C) of title 25, U.S.C., also defines State recognized 
tribe to mean any tribe, band, nation, pueblo, village, or community--
(1) that has been recognized as an Indian tribe by any State; and (2) 
for which an Indian Housing Authority has, before the effective date 
under section 705, entered into a contract with the Secretary of 
Housing and Urban Development pursuant to the United States Housing Act 
of 1937 (42 U.S.C. 1437 et seq.) for housing for Indian families and 
has received funding pursuant to such contract within the 5-year period 
ending upon such effective date. This definition also includes certain 
conditions set forth in 25 U.S.C. 4103(13)(C)(ii).
    VA defines indirect Federal financial assistance to mean Federal 
financial assistance in which a service provider receives program funds 
through a voucher, certificate, agreement or other form of 
disbursement, as a result of the genuine, independent choice of a 
participant. This term is used for purposes of Sec.  79.80 and is 
consistent with how VA defines this in the SSVF Program. See 38 CFR 
62.62.
    VA defines legal services as those services listed in Sec.  79.20. 
This is consistent with 38 U.S.C. 2022A(d) regarding the use of funds 
under section 4202 of the Act.
    VA defines legal services grant as a grant awarded under this part. 
This definition is based on the plain language understanding of this 
term.
    VA defines legal services grant agreement as the agreement executed 
between VA and a grantee as specified under Sec.  79.70. This 
definition is based on the plain language understanding of this term 
and is consistent with the definition of similar terms in other VA 
regulations. See Sec.  62.2.
    VA defines a non-profit private entity as an entity that meets the 
criteria in Sec.  79.10(c).
    VA defines notice of funding opportunity (NOFO) using the meaning 
given to this term in 2 CFR 200.1. Section 200.1 defines NOFO to mean a 
formal announcement of the availability of Federal funding through a 
financial assistance program from a Federal awarding agency. The NOFO 
provides information on the award, who is eligible to apply, the 
evaluation criteria for selection of an awardee, required components of 
an application, and how to submit the application. The NOFO is any 
paper or electronic issuance that an agency uses to announce a funding 
opportunity, whether it is called a ``program announcement,'' ``notice 
of funding availability,'' ``broad agency announcement,'' ``research 
announcement,'' ``solicitation,'' or some other term. Part 200 of 2 CFR 
establishes the uniform administrative requirements, cost principles, 
and audit requirements for Federal awards to non-Federal entities. This 
grant program would be subject to the requirements of 2 CFR part 200.

[[Page 33027]]

    VA defines participant to mean an eligible veteran who is receiving 
legal services from a grantee under this part. This definition is 
necessary for purposes of understanding part 79 and the Grant Program.
    VA defines public entity to mean an entity that meets the criteria 
in Sec.  79.10(b).
    VA defines rural communities to mean those communities considered 
rural according to the Rural-Urban Commuting Area (RUCA) system as 
determined by the United States Department of Agriculture (USDA). VA 
will use this term and its definition for purposes of prioritizing the 
distribution of grants to rural communities pursuant to section 4202 of 
the Act. For more information on RUCA, please refer to https://www.ers.usda.gov/data-products/rural-urban-commuting-area-codes/.
    VA defines State to mean 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. This is 
consistent with the definition of State as used in 38 U.S.C. 101(20) 
and in the SSVF Program (see Sec.  62.2). This is also consistent with 
the definition of State as used in 2 CFR 200.1.
    VA defines subcontractor to mean any third-party contractor, of any 
tier, working directly for an eligible entity.
    VA defines suspension to mean an action by VA that temporarily 
withdraws VA funding under a legal services grant, pending corrective 
action by the grantee or pending a decision to terminate the legal 
services grant by VA. Suspension of a legal services grant is a 
separate action from suspension under VA regulations or guidance 
implementing Executive Orders 12549 and 12689, ``Debarment and 
Suspension.'' This definition is consistent with the SSVF Program's 
definition for this term. See Sec.  62.2. However, with regards to 
implementing Executive Orders 12549 and 12689, VA has added the word 
guidance, as not all of VA's implementations of Executive Orders are 
regulatory.
    Tribal organization has the meaning given that term in 25 U.S.C. 
5304. Section 5304 defines a tribal organization as the recognized 
governing body of any Indian tribe; any legally established 
organization of Indians which is controlled, sanctioned, or chartered 
by such governing body or which is democratically elected by the adult 
members of the Indian community to be served by such organization and 
which includes the maximum participation of Indians in all phases of 
its activities: Provided, that in any case where a contract is let or 
grant is made to an organization to perform services benefiting more 
than one Indian tribe, the approval of each such Indian tribe shall be 
a prerequisite to the letting or making of such contract or grant. This 
definition is consistent with the reference to tribal organizations in 
section 4202 of the Act.
    Trust land has the meaning given that term in 38 U.S.C. 3765. 
Section 3765 defines trust land to mean any land that (A) is held in 
trust by the United States for Native Americans; (B) is subject to 
restrictions on alienation imposed by the United States on Indian lands 
(including native Hawaiian homelands); (C) is owned by a Regional 
Corporation or a Village Corporation, as such terms are defined in 
section 3(g) and 3(j) of the Alaska Native Claims Settlement Act, 
respectively (43 U.S.C. 1602(g), (j)); or (D) is on any island in the 
Pacific Ocean if such land is, by cultural tradition, communally-owned 
land, as determined by the Secretary.
    VA defines very low income to mean a veteran's income is 50 percent 
or less of the median income for an area or community. This is 
consistent with the definition of very low-income veteran family used 
for purposes of the SSVF Program but tailored to individuals for 
purposes of this program. See 38 U.S.C. 2044(f)(6). VA believes that 
incorporating an eligible entity's experience with low-income 
populations as an alternative criterion will be helpful in determining 
organizations' familiarity with populations similar to those targeted 
by the Grant Program, homeless veterans and veterans who are at risk 
for homelessness. We note that this term is used throughout part 79, 
including Sec.  79.35 regarding scoring criteria for legal services 
grant applicants and Sec.  79.40 regarding preferences for selection of 
grantees. We note that an individual is not required to be considered 
very low income to be eligible for receive legal services provided 
pursuant this Grant Program. See Sec.  79.15 for eligibility criteria.
    Veteran has the same meaning given that term under 38 U.S.C. 
101(2). Section 101 of title 38, U.S.C., defines veteran as a person 
who served in the active military, naval, air, or space service, and 
who was discharged or released therefrom under conditions other than 
dishonorable. This term is used for purposes of identifying eligible 
veterans as defined in Sec.  79.15 in this part.
    VA defines withholding to mean that payment of a legal services 
grant will not be paid until such time as VA determines that the 
grantee provides sufficiently adequate documentation and/or actions to 
correct a deficiency for the legal services grant. This term is defined 
in this manner as it is intended to provide a general description of 
how this term is used in 2 CFR part 200, which governs VA grant 
programs including the legal services grant program. This term relates 
to withholding payment of a legal services grant pursuant to Sec.  
79.110, described later in this rulemaking.

Section 79.10 Eligible Entities

    Consistent with 38 U.S.C. 2022A(c), Sec.  79.10 provides the 
criteria for an entity to be considered an eligible entity. Paragraph 
(a) provides that, in order to be an eligible entity under this part, 
the entity must (1) be a public or nonprofit private entity with the 
capacity to effectively administer a grant under this part; (2) 
demonstrate that adequate financial support will be available to carry 
out the services for which the grant is sought consistent with the 
legal services grant application; and (3) agree to meet the applicable 
criteria and requirements of this part.
    Paragraph (b) provides that a public entity must be a local 
government, State government, or federally recognized Indian tribal 
government. Paragraph (b)(1) states that local government consists of 
either 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. Paragraph (b)(2) states that a 
public entity can be a State government. Paragraph (b)(3) states that 
federally recognized Indian tribal government means 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 section 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 him through the Bureau of Indian 
Affairs. Using these definitions establishes consistency and uniformity 
among Federal agencies in the administration of grants and cooperative

[[Page 33028]]

agreements to State, local, and federally recognized Indian tribal 
governments.
    Paragraph (c) states that a non-profit private entity is an entity 
that meets the requirements of 26 U.S.C. 501(c)(3) or (19). We would 
reference 26 U.S.C. 501(c)(3) or (19) as the Internal Revenue Service 
determines non-profit designation for purposes of tax exemptions 
pursuant to such statute. Subsection 501(c)(3) includes corporations, 
and any community chest, fund, or foundation, organized and operated 
exclusively for religious, charitable, scientific, testing for public 
safety, literary, or educational purposes, or to foster national or 
international amateur sports competition (but only if no part of its 
activities involve the provision of athletic facilities or equipment), 
or for the prevention of cruelty to children or animals, no part of the 
net earnings of which inures to the benefit of any private shareholder 
or individual, no substantial part of the activities of which is 
carrying on propaganda or otherwise attempting to influence legislation 
(except as otherwise provided in 26 U.S.C. 501(h)), and which does not 
participate in, or intervene in (including the publishing or 
distributing of statements), any political campaign on behalf of (or in 
opposition to) any candidate for public office.
    Subsection 501(c)(19) of title 26 includes a post or organization 
of past or present members of the Armed Forces of the United States, or 
an auxiliary unit or society of, or a trust or foundation for, any such 
post or organization--(A) organized in the United States or any of its 
possessions, (B) at least 75 percent of the members of which are past 
or present members of the Armed Forces of the United States and 
substantially all of the other members of which are individuals who are 
cadets or are spouses, widows, widowers, ancestors, or lineal 
descendants of past or present members of the Armed Forces of the 
United States or of cadets, and (C) no part of the net earnings of 
which inures to the benefit of any private shareholder or individual.

Section 79.15 Eligible Veterans

    Section 79.15 describes the criteria for individuals to receive 
legal services under this Grant Program. Pursuant to paragraph (a) of 
this section, to be eligible for legal services under this part, an 
individual must be a homeless veteran or a veteran at risk for 
homelessness.
    Under paragraph (b), VA provides the criteria to be considered at 
risk for homelessness. At risk for homelessness in this part means an 
individual who does not have sufficient resources or support networks, 
e.g., family, friends, faith-based or other social networks, 
immediately available to prevent them from moving to an emergency 
shelter or another place described in paragraph (1) in the definition 
of ``homeless'' found in 24 CFR 576.2 and meets one or more of the 
following conditions: (1) Has moved because of economic reasons two or 
more times during the 60 days immediately preceding the application for 
assistance; (2) is living in the home of another because of economic 
hardship; (3) has been notified in writing that their right to occupy 
their current housing or living situation will be terminated within 21 
days after the date of application for assistance; (4) is 
constructively evicted from their current housing because of untenable 
conditions created by the landlord such as shutting off electricity and 
water or discriminatory acts; (5) lives in a hotel or motel and the 
cost of the hotel or motel stay is not paid by charitable organizations 
or by Federal, State, or local government programs for low-income 
individuals; (6) lives in a single-room occupancy or efficiency 
apartment unit in which there reside more than two persons or lives in 
a larger housing unit in which there reside more than 1.5 persons 
reside per room, as defined by the U.S. Census Bureau; (7) is exiting a 
publicly funded institution, or system of care (such as a health-care 
facility, a mental health facility, foster care or other youth 
facility, or correction program or institution); (8) is fleeing, or is 
attempting to flee domestic violence, dating violence, sexual assault, 
stalking, or other dangerous or life-threatening conditions that relate 
to violence against the individual, including a child, that has either 
taken place within the individual's primary nighttime residence or has 
made the individual afraid to return to their primary nighttime 
residence; or (9) otherwise lives in housing that has characteristics 
associated with instability and an increased risk for homelessness.
    As section 4202 of the Act did not define the term ``at risk of 
homelessness,'' we researched how VA has defined this term for other 
programs, such as SSVF Program. In such programs, VA has used the 
definition used by HUD in implementing emergency solutions grants 
pursuant to the McKinney-Vento Homeless Assistance Act. See 24 CFR 
576.2. Thus, for purposes of this Grant Program, we are using the 
definition of at risk of homelessness as defined in Sec.  576.2. 
However, we have made minor changes to the definition to better reflect 
the purpose of this Grant Program. First, we removed the criterion that 
the individual has an annual income below 30 percent of the median 
family income for the area, as determined by HUD. We do not want 
veterans to be unable to receive services due to income limitations. VA 
recognizes that there may be situations where a veteran earns an income 
beyond the HUD limitation in 24 CFR 576.2(i) but is still unable to 
maintain housing because of a high cost of living where they reside. We 
also did not include homelessness prevention as a qualifier for 
assistance found in 24 CFR 576.2(iii)(A). VA recognizes that other 
types of assistance exist that that may not fall specifically under 
homelessness prevention assistance but have the impact of preventing 
homelessness. We also added two new possible criteria for eligibility 
in Sec.  79.15(b)(4) and (8): Constructive eviction due to untenable 
conditions created by the landlord; and situations involving intimate 
partner violence. These criteria were added in response to 
recommendations from legal service organizations during the 
consultation in March 2021. Commenters made these suggestions based on 
their experience providing legal services to homeless and at-risk 
veterans. Thus, we believe that these additional criteria would ensure 
legal services provided pursuant to these grants would be more 
responsive to the needs of these veterans. Finally, we removed the 
provisions related to children and family members because this Grant 
Program is designed to assist individual veterans. Although the 
ultimate outcome of the legal service provided to a veteran may 
positively impact that veteran's children or family, the direct impact 
of this grant was designed to assist individual veterans.

Section 79.20 Legal Services

    Consistent with 38 U.S.C. 2022A(d), 38 CFR 79.20 enumerates 
allowable legal services covered under this Grant Program. These 
include (a) legal services related to housing, including eviction 
defense, representation in landlord-tenant cases, and representation in 
foreclosure cases; (b) legal services related to family law, including 
assistance in court proceedings for child support and custody, divorce, 
estate planning, and family reconciliation; (c) legal services related 
to income support, including assistance in obtaining public benefits; 
(d) legal services related to criminal defense, including defense in 
matters symptomatic of homelessness, such as outstanding warrants, 
fines, and driver's license revocation, and citations (to reduce 
recidivism and facilitate the

[[Page 33029]]

overcoming of reentry obstacles in employment or housing, covered legal 
services relating to criminal defense also include legal assistance 
with request to expunge or seal a criminal record); (e) legal services 
relating to requests to upgrade the characterization of discharge or 
dismissal of a former member of the Armed Forces under 10 U.S.C. 1553; 
and (f) other covered legal services as the Secretary determines 
appropriate.
    Those other legal services include: Legal assistance with 
protective orders and other matters related to domestic or intimate 
partner violence; access to health care; consumer law matters, such as 
debt collection, garnishments, usury, fraud, deceit, and financial 
exploitation; employment law matters; and unmet legal needs of male and 
female veterans enumerated in VA's annual Community Homelessness 
Assessment, Local Education and Networking Groups (CHALENG) survey for 
the grant award year. We intentionally left the legal services 
categories broad enough to provide grantees with flexibility to 
determine the types of legal services that an organization could 
provide within each category. In addition, VA may periodically review 
the legal services enumerated above and make modifications as necessary 
through the rulemaking process to meet the needs of eligible veterans.

Section 79.25 Applications for Legal Services Grants

    Section 79.25 sets forth the criteria for a complete application 
for a legal services grant under this part.
    Paragraph (a) explains that applicants must submit a complete 
application package for a legal services grant, as described in the 
NOFO, and enumerates the necessary information for VA to consider the 
application package complete. This list of items described in paragraph 
(a) ensures that VA can adequately evaluate applicants for the purposes 
of this Grant Program.
    A complete legal services grant application package includes: (1) A 
description of the legal services to be provided by the applicant and 
the identified need for such legal services among eligible veterans; 
(2) a description of how the applicant will ensure that services are 
provided to eligible veterans, including women veterans; (3) a 
description of the characteristics of eligible veterans who will 
receive legal services provided by the applicant; (4) an estimate with 
supporting documentation of the number of eligible veterans who will 
receive legal services provided by the applicant, including an estimate 
of the number of eligible women veterans, who will receive legal 
services provided by the applicant; (5) a plan for how the applicant 
will use at least ten percent of the grant funds to serve eligible 
women veterans; (6) documentation describing the experience of the 
applicant and any identified subcontractors in providing legal services 
to eligible veterans; (7) documentation relating to the applicant's 
ability to coordinate with any identified subcontractors; (8) 
documentation of the applicant's capacity to effectively administer a 
grant under this section that describes the applicant's: (i) Accounting 
practices and financial controls; (ii) capacity for data collection and 
reporting required under this part; and (iii) experience administering 
other Federal, State, or county grants similar to the Grant Program 
under this part; (9) documentation of the managerial capacity of the 
applicant to: (i) Coordinate the provision of legal services by the 
applicant or by other organizations on a referral basis; (ii) assess 
continuously the needs of eligible veterans for legal services; (iii) 
coordinate the provision of legal services with services provided by 
VA; (iv) customize legal services to the needs of eligible veterans; 
and (v) comply with and implement the requirements of this part 
throughout the term of the legal services grant; (10) documentation 
that demonstrates that adequate financial support will be available to 
carry out the legal services for which the grant is sought consistent 
with the application; and (11) any additional information as deemed 
appropriate by VA. VA plans to offer technical assistance to help 
prospective applicants clarify any aspects of the application package.
    We note that the requirement in Sec.  79.25(a)(5) that applicants 
provide in their application a plan for how they will use at least ten 
percent of the grant funds to serve eligible women veterans is included 
in order to meet the requirement in 38 U.S.C. 2022A(e). Subsection (e) 
requires that for any fiscal year, not less than ten percent of the 
amount authorized to be appropriated for grants under section 2022A be 
used to provide legal services under this part to women veterans.
    Paragraph (b) states that subject to funding availability, grantees 
may submit an application for renewal of a legal services grant if the 
grantee's program will remain substantially the same. To apply for 
renewal of a legal services grant, a grantee must submit to VA a 
complete legal services grant renewal application package, as described 
in the NOFO. This is consistent with how VA administers other VA grant 
programs, such as the SSVF Program under part 62 and will allow VA to 
renew grants in an efficient and timely manner so that there will be no 
lapse in the provision of legal services by grantees to participants 
from year to year.
    Paragraph (c) establishes that VA may request, in writing, that an 
applicant or grantee, as applicable, submit other information or 
documentation relevant to the legal services grant application. 
Consistent with 38 U.S.C. 2022A(b)(1)(A), VA may then request 
additional information that may not be in the initial or renewal 
application but will be necessary for VA to properly evaluate the 
applicant or grantee for a legal services grant.

Section 79.30 Threshold Requirements Prior To Scoring Legal Services 
Grant Applicants

    Section 79.30 sets forth the threshold requirements for further 
scoring applicants pursuant to Sec.  79.35. This section explains that 
VA will only score applicants for the Grant Program if they meet 
certain threshold requirements as set forth in paragraphs (a) through 
(g).
    These threshold requirements in paragraphs (a) through (g) include 
that the application is filed within the time period established in the 
NOFO, and any additional information or documentation requested by VA 
under Sec.  79.25(c) is provided within the time frame established by 
VA; the application is completed in all parts; the activities for which 
the legal services grant is requested are eligible for funding under 
part 79; the applicant's prospective participants are eligible to 
receive legal services under that part; the applicant agrees to comply 
with the requirements of that part; the applicant does not have an 
outstanding obligation to the Federal Government that is in arrears and 
does not have an overdue or unsatisfactory response to an audit; and 
the applicant is not in default by failing to meet the requirements for 
any previous Federal assistance.
    These requirements are minimum requirements that must be met before 
VA will score applications, and applicants will be able to understand 
whether they meet these threshold requirements in advance of 
application submission. The threshold requirements are intended to be 
an administrative checklist with which applicants would confirm 
compliance prior to submitting a legal services grant application. VA 
anticipates this will reduce the amount of time and resources that VA 
will dedicate to evaluating and scoring applicants. These threshold

[[Page 33030]]

requirements are consistent with other VA grant programs, such as the 
SSVF Program. See 38 CFR 62.21.

Section 79.35 Scoring Criteria for Legal Services Grant Applicants

    Section 79.35 sets forth the criteria to be used to score 
applicants who are applying for a legal services grant. Since VA has a 
limited amount of funds available to distribute through the Grant 
Program and the number of qualified applicants may exceed available 
funds, VA is establishing scoring criteria for awarding legal services 
grants. Utilization of these scoring criteria will allow VA to 
distribute these grants consistent with section 4202 of the Act and 
VA's goals and objectives for the Grant Program which will be detailed 
in the NOFO. The categories are weighted differently according to their 
likelihood of impacting a grantee's successful development and 
operation of a grant program. These criteria are consistent with 
feedback received from commenters during our consultation with legal 
service providers. The criteria, which are discussed in depth below, 
are enumerated in paragraphs (a) through (e).
    While this section does not include specific point values for each 
criterion, the regulation provides that such point values will be set 
forth in the NOFO. This will allow VA to retain flexibility in 
determining those point values each year of the Grant Program in the 
event that such point values need to change.
    Paragraph (a) explains that VA will award points based on the 
background, qualifications, experience, and past performance, of the 
applicant and any subcontractors identified by the applicant in the 
legal services grant application, as demonstrated by the following: (1) 
Background and organizational history; and (2) organization and staff 
qualifications. These scoring criteria are important to determine 
whether applicants have the necessary and relevant background and 
experience to provide legal services consistent with this part and 
section 4202 of the Act.
    In scoring an applicant's background and organizational history 
under paragraph (a)(1), VA will consider the applicant's, and any 
identified subcontractors', background and organizational history 
relevant to providing legal services; whether the applicant, and any 
identified subcontractors, maintain organizational structures with 
clear lines of reporting and defined responsibilities; and whether the 
applicant, and any identified subcontractors, have a history of 
complying with agreements and not defaulting on financial obligations.
    In scoring an applicant's staff qualifications under paragraph 
(a)(2), VA will score applications based on the experience of the 
applicant and any identified subcontractors working with veterans or 
individuals who are homeless, at risk for homelessness, or who have 
very low income, as defined under part 79. Having experience and 
understanding of the veteran population would bring a military and 
veteran cultural competency that is critical for ensuring that the 
needs of eligible veterans are met through the Grant Program. This is 
consistent with the feedback received through consultation. The mix of 
general and specific criteria with respect to experience with veterans 
allows VA flexibility to award points at various levels (local, 
regional, State) since the types of experience entities at those levels 
may have can vary. Thus, pursuant to paragraph (a), VA will score 
applicants not only based on their experience administering programs 
similar to a legal services grant program and providing services to 
those who are homeless, at risk for homelessness, or very low-income, 
but also based on the applicant's experience working with veterans.
    VA notes that while not required by the statute, it believes 
including an applicant's experience with very low-income populations as 
an alternative criterion will be useful to determine organizations' 
familiarity with populations similar to the target populations in the 
Grant Program, homeless veterans and veterans who are at risk for 
homelessness. By having low income as an option for applicants to 
demonstrate past experience, qualified applicants may be able to 
present experience administering a program similar in type and scale to 
the legal services contemplated by the Grant Program, if not 
specifically with individuals who are homeless, at risk for 
homelessness, or veterans. Accordingly, VA will score applications 
based on the experience of the applicant and identified subcontractors 
providing legal services, including providing such services to 
veterans, or individuals who are homeless, at risk for homelessness or 
who have very low income.
    Relatedly, VA will score applicants also based on the 
qualifications of the applicant's staff and any identified 
subcontractors' staff to administer legal services. This would include, 
as applicable, confirmation that the applicant, and any identified 
subcontractor, has barred attorneys on staff or a plan to hire such 
attorneys who are in good standing as a member of the applicable State 
bar. It would also consider the experience that applicants' staff 
administering programs similar to this Grant Program.
    Paragraph (b) explains that VA will award points based on the 
applicant's program concept and legal services plan. The scoring 
criteria under this paragraph are important for VA to use to determine 
whether the applicant has a fully developed program concept and plan 
that will meet the intent of this part and section 4202 of the Act. 
Points awarded in accordance with this paragraph may be demonstrated by 
the following: (1) Need for the program, (2) outreach and screening 
plan, (3) program concept, (4) program implementation timeline, (5) 
collaboration and communication with VA, (6) ability to meet VA's 
requirements, goals, and objectives for the Grant Program, and (7) 
capacity to undertake the program.
    VA will score the need for the program under paragraph (b)(1) based 
on whether the applicant has shown a need amongst eligible veterans in 
the area or community where the program will be based and whether the 
applicant understands the legal service needs unique to eligible 
veterans in the area or community where the program will be based.
    VA will score the outreach and screening plan under paragraph 
(b)(2) based on whether the applicant has a feasible outreach and 
referral plan to identify and assist eligible veterans in need of legal 
services, has a plan to process and receive legal services referrals 
for eligible veterans, and has a plan to assess and accommodate the 
needs of referred eligible veterans.
    VA will score the applicant's program concept under paragraph 
(b)(3) based on whether the applicant's program concept, size, scope, 
and staffing plan are feasible, and the applicant's program is designed 
to meet the needs of eligible veterans in the area or community where 
the program will be based.
    VA will score the program implementation timeline under paragraph 
(b)(4) based on whether the applicant's program will be implemented in 
a timely manner and legal services will be delivered to eligible 
veterans as quickly as possible and within a specified timeline. VA 
will also score this based on whether the applicant has a hiring plan 
in place to meet the applicant's program timeline or has existing staff 
to meet such timeline.
    VA will score the ability of an applicant to collaborate and 
communicate with VA under paragraph (b)(5) based on the strength of the

[[Page 33031]]

applicant's plan to coordinate outreach and services with local VA 
facilities.
    VA will score the applicant's ability to meet VA's requirements, 
goals and objectives for the Grant Program under paragraph (b)(6) based 
on whether the applicant is committed to ensuring that its program 
meets VA's requirements, goals, and objectives for the Grant Program as 
identified in the NOFO.
    Lastly, VA will score the applicant's capacity to undertake its 
proposed legal services program under paragraph (b)(7) based on whether 
the applicant has sufficient capacity, including staff resources, to 
undertake the program.
    Paragraph (c) explains that VA will award points based on the 
applicant's quality assurance and evaluation plan, as demonstrated by 
(1) program evaluation, (2) monitoring, (3) remediation, and (4) 
management and reporting. This scoring criterion is important to ensure 
that applicants can meet any requirements for evaluation, monitoring, 
and reporting contained in this part and will help VA ensure that grant 
funds are being used appropriately and will assist in the overall 
assessment of the program.
    Under paragraph (c)(1), VA will evaluate whether the applicant has 
demonstrated an ability to evaluate its program through the presence of 
clear, realistic, and measurable metrics that align with the Grant 
Program's aim of addressing the legal needs of eligible veterans and 
through which the applicant's program performance can be continually 
evaluated.
    Under paragraph (c)(2), VA will score the applicant's ability to 
monitor its proposed legal services program based on whether the 
applicant has adequate controls in place to regularly monitor the 
program, including any subcontractors, for compliance with all 
applicable laws, regulations, and guidelines; whether the applicant has 
adequate financial and operational controls in place to ensure the 
proper use of legal services grant funds; and the applicant has a plan 
for ensuring that the applicant's staff and any identified 
subcontractors are appropriately trained and comply with the 
requirements of part 79.
    VA will score applicants' ability to remediate program issues under 
paragraph (c)(3) based on the applicant's plan or established system 
for remediating non-compliant aspects of the program if and when they 
are identified.
    VA will score an applicant's ability to conduct management and 
reporting functions in its proposed legal services program under 
paragraph (c)(4) based on whether the applicant's program management 
team has the capability and a system in place to provide to VA timely 
and accurate reports at the frequency set by VA.
    Paragraph (d) explains that VA will award points based on the 
applicant's financial capability and plan, as demonstrated by: (1) 
Organizational finances (based on whether applicant, and any identified 
subcontractors, are financially stable); and (2) financial feasibility 
of program (based on whether the applicant has a realistic plan for 
obtaining all funding required to operate the program for the period of 
the legal services grant; and whether applicant's program is cost-
effective and can be effectively implemented on-budget). These are 
important to ensure that funds are not provided to an applicant that 
has not considered the costs and has not developed a plan to ensure 
they have the necessary funding for administering a legal services 
program.
    Paragraph (e) explains that VA will award points based on the 
applicant's area or community linkages and relations, as demonstrated 
by the (1) area or community linkages, (2) past working relationships, 
(3) local presence and knowledge, and (4) integration of linkages and 
program concept. This is important for ensuring success of the 
applicant's proposed legal services program. VA acknowledges that 
applicants may not have these existing linkages and relationships but 
may develop them over time. VA also acknowledges that certain 
applicants without these existing linkages and relationships may obtain 
them through community partners. Area or community linkages under 
paragraph (e)(1) will include whether the applicant has a plan for 
developing or has existing linkages with Federal (including VA), State, 
local, and tribal governments, agencies, and private entities for the 
purposes of providing additional legal services to eligible veterans. 
Past working relationships under paragraph (e)(2) will include whether 
the applicant (or applicant's staff), and any identified subcontractors 
(or subcontractors' staff), have fostered successful working 
relationships and linkages with public and private organizations 
providing legal and non-legal supportive services to veterans who are 
also in need of legal services similar to those covered under the Grant 
Program. Local presence and knowledge under paragraph (e)(3) will be 
based on whether the applicant has a presence in the area or community 
to be served by the applicant and understands the dynamics of the area 
or community to be served by the applicant. Integration of linkages and 
program concept under paragraph (e)(4) will be based on whether the 
applicant's linkages to the area or community to be served by the 
applicant enhance the effectiveness of the applicant's program.

Section 79.40 Selection of Grantees

    In accordance with the Act, Sec.  79.40 sets forth the process for 
selecting applicants for legal services grants, including distribution 
requirements from section 4202 of the Act. The scoring criteria are 
enumerated in paragraphs (a) through (f).
    Paragraph (a) explains that VA will score all applicants that meet 
the threshold requirements set forth in Sec.  79.30 using the scoring 
criteria set forth in Sec.  79.35.
    Paragraph (b) explains that VA will group applicants within the 
applicable funding priorities if funding priorities are set forth in 
the NOFO. As funding priorities can change annually, VA will set forth 
any funding priorities in the NOFO, which will allow VA flexibility in 
updating priorities in a quick and efficient manner every year that 
funds are available under this Grant Program.
    Paragraph (c) sets forth how applicants are ranked. VA will rank 
those applicants that receive at least the minimum amount of total 
points and points per category set forth in the NOFO, within their 
respective funding priority group, if any. VA will set forth the 
minimum amount of total points and points per category in the NOFO as 
these can change annually. Setting forth these points in the NOFO will 
provide VA flexibility in updating the minimum amount of points in an 
efficient and quick manner. The applicants will be ranked in order from 
highest to lowest scores, within their respective funding priority 
group, if any.
    Paragraph (d) explains that VA will use the applicant's ranking as 
the primary basis for selection for funding. However, consistent with 
section 4202 of the Act, paragraph (d) further explains VA preferences. 
In paragraph (d)(1), VA will give preference to applicants that have 
the demonstrated ability to provide legal services to eligible veterans 
who are homeless, at risk for homelessness or have very low income, as 
defined by this part.
    In paragraph (d)(2), to the extent practicable, VA will ensure that 
legal services grants are equitably distributed across geographic 
regions, including rural communities, trust lands, Native Americans, 
and tribal organizations, consistent with 38 U.S.C. 2022A(f).
    Lastly, in paragraph (d)(3), VA will give preference to applicants 
with a demonstrated focus on women veterans as set forth in the NOFO. 
VA will set forth information in the NOFO that will

[[Page 33032]]

explain to applicants how this preference may be met with their 
application.
    VA notes that legal services grant applications must include 
applicants' identification of the target populations and the area or 
community the applicant proposes to serve. VA will use this information 
in determining the distribution of legal services grants consistent 
with paragraph (d).
    Paragraph (e) explains that subject to paragraph (d) of this 
section which sets forth the preference and distribution requirements 
and considerations, VA will fund the highest-ranked applicants for 
which funding is available, within the highest funding priority group, 
if any.
    Similar to existing processes in other VA grant programs, such as 
the SSVF Program (38 CFR 62.61), paragraph (f) authorizes VA to still 
select an applicant for funding if that applicant is not initially 
selected because of a procedural error by VA. An applicant would not be 
required to submit a new application in this situation. This will ease 
any administrative burden on applications and could be used in 
situations where there is no material change in the information that 
would have resulted in the applicant's selection for a grant under this 
part.

Section 79.45 Scoring Criteria for Grantees Applying for Renewal of 
Legal Services Grants

    Section 79.45 describes the criteria that VA will use to score 
grantees under part 79 that are applying for renewal of a grant. Such 
criteria will assist with VA's review and evaluation of grantees to 
ensure that those grantees have successful existing programs using the 
previously awarded grant funds and that they have complied with the 
requirements of part 79 and of section 4202 of the Act. Applicants 
applying for renewal of a legal services grant will receive a score 
based on the scoring criteria enumerated in paragraphs (a) through (c).
    While this section does not include specific point values for the 
criteria, such point values will be set forth in the NOFO. This will 
allow VA to retain flexibility in determining those point values each 
year of the Grant Program.
    Under paragraph (a), VA will award points based on the success of 
the grantee's program, as demonstrated by the following: (1) 
Participants were satisfied with the legal services provided by the 
grantee; (2) the grantee delivered legal services to participants in a 
timely manner; (3) the grantee implemented the program by developing 
and sustaining relationships with community partners to refer veterans 
in need of legal services; and (4) the grantee was effective in 
conducting outreach to eligible veterans, including to women veterans, 
and increased engagement of eligible veterans seeking legal services 
provided by the grantee.
    Paragraph (b) explains that points will be awarded based on the 
cost-effectiveness of the grantee's program, as demonstrated by the 
following: (1) The cost per participant was reasonable, and (2) the 
grantee's program was effectively implemented within budget.
    Paragraph (c) explains that VA will award points based on the 
extent to which the grantee complied with the Grant Program's goals and 
requirements, as demonstrated by the following: (1) The grantee's 
program was administered in accordance with VA's goals for the Grant 
Program as described in the NOFO; (2) the grantee's program was 
administered in accordance with all applicable laws, regulations, and 
guidelines; and (3) the grantee's program was administered in 
accordance with the grantee's legal services grant agreement.
    These criteria in paragraphs (a) through (c) ensure that renewal of 
grants is awarded based on the grantee's program's success, cost-
effectiveness, and compliance with VA goals and requirements for this 
Grant Program. This is consistent with how VA awards renewals of grants 
in other programs, such as the SSVF Program. See 38 CFR 62.24.

Section 79.50 Selecting Grantees for Renewal of Legal Services Grants

    Section 79.50 describes the process for selecting grantees that are 
applying for renewal of such grants. VA scores renewal applicants under 
a simplified process based on the success and cost effectiveness of 
their legal services program and their program's compliance with VA 
requirements and programmatic goals. The scoring criteria is enumerated 
in paragraphs (a) through (e).
    Paragraph (a) explains that so long as grantees continue to meet 
the threshold requirements in Sec.  79.30, VA will score the grantee 
using the scoring criteria set forth in Sec.  79.45.
    Under paragraph (b), VA will rank those grantees who receive at 
least the minimum amount of total points and points per category set 
forth in the NOFO, and such grantees will be ranked in order from 
highest to lowest scores.
    Paragraph (c) explains that VA will use the grantee's ranking as 
the basis for selection for funding and that VA will fund the highest-
ranked grantees for which funding is available.
    Paragraph (d) explains that, at its discretion, VA may award any 
non-renewed funds to an applicant or existing grantee. If VA chooses to 
award non-renewed funds to an applicant or existing grantee, VA will 
first offer to award the non-renewed funds to the applicant or grantee 
with the highest grant score under the relevant NOFO that applies for, 
or is awarded a renewal grant in, the same community as, or a proximate 
community to, the affected community. Such applicant or grantee will be 
required to have the capacity and agree to provide prompt services to 
the affected community. Under this section, the relevant NOFO means the 
most recently published NOFO which will cover the geographic area that 
includes the affected community, or for multi-year grant awards, the 
NOFO for which the grantee, who is offered the additional funds, 
received the multi-year award. If the first such applicant or grantee 
offered the non-renewed funds refuses the funds, VA will then offer to 
award the funds to the next highest-ranked such applicant or grantee, 
per the criteria in paragraph (d)(1) of this section, and continue on 
in rank order until the non-renewed funds are awarded.
    Paragraph (e) authorizes VA to select an existing grantee for 
available funding, based on the grantee's previously submitted renewal 
application, if that grantee is not initially selected for renewal 
because of a procedural error by VA. A grantee would not be required to 
submit a new renewal application in this situation. This will ease any 
administrative burden on grantees and could be used in situations where 
there is no material change in the renewal application that would have 
resulted in the grantee's selection for renewal of a grant under part 
79.

Section 79.55 General Operation Requirements

    Section 79.55 establishes requirements for the general operation of 
legal services programs provided for under part 79. These requirements 
are enumerated in paragraphs (a) through (f).
    Paragraph (a) address eligibility documentation. Paragraph(a)(1) 
explains that prior to providing legal services, grantees must verify, 
document, and classify each participant's eligibility for legal 
services. This ensures that grantees are providing services and using 
grant funds for those who are eligible for such services under this 
Grant Program and consistent with section 4202 of the Act.

[[Page 33033]]

In paragraph (a)(2), once the grantee initiates legal services, the 
grantee will continue to provide legal services to the participant 
through completion of the legal services so long as the participant 
continues to meet the eligibility criteria set forth in Sec.  79.15. In 
paragraph (a)(3), if a grantee finds at any point in the grant award 
period that a participant is ineligible to receive legal services under 
part 79, or that the provider is unable to meet the legal needs of that 
participant, the grantee must document the reason for the participant's 
ineligibility or the grantee's inability to provide legal services. 
Then, the grantee must provide the veteran information on other 
available programs or resources or provide a referral to another legal 
services organization that is able to meet that veteran's needs.
    Under paragraph (b), for each participant who receives services 
from the grantee, the grantee must document the legal services 
provided, how such services were provided, the duration of the services 
provided, any goals for the provision of such services, and measurable 
outcomes of the legal services provided as determined by the Secretary, 
such as whether the participant's legal issue was resolved. This is 
information that grantees typically maintain regarding the provision of 
these or similar services. Additionally, this information may be 
requested by VA for purposes of monitoring the grantee's operation and 
compliance with part 79 and will be collected as part of the grantee's 
reporting requirements in Sec.  79.95 and will be required to be 
maintained for at least three years (consistent with the recordkeeping 
requirements in Sec.  79.100), of which VA may request for auditing and 
evaluation purposes.
    Under paragraph (c), grantees would be required to maintain the 
confidentiality of records kept in connection to legal services 
provided to participants. Grantees that provide legal services would be 
required to establish and implement procedures to ensure the 
confidentiality of records pertaining to any participant and the 
address or location where the legal services are provided. The 
confidentiality maintained should be consistent with the grantee's 
State bar rules of confidentiality in an attorney-client relationship.
    Under paragraph (d), prior to initially providing legal services to 
a participant, the grantee is required to notify each participant of 
the following: (1) That the legal services are being paid for, in whole 
or in part, by VA; (2) the legal services which are available to the 
participant through the grantee's program; and, (3) any conditions or 
restrictions on the receipt of legal services by the participant.
    Under paragraph (e), VA requires that grantees regularly assess how 
legal services grant funds can be used in conjunction with other 
available funds and services to ensure continuity of program operations 
and to assist participants. This encourages grantees to leverage other 
financial resources to ensure continuity of program operations and 
assistance to participants.
    Lastly, under paragraph (f), VA requires that grantees ensure that 
legal services grants are administered in accordance with the 
requirements of part 79, the legal services grant agreement, and other 
applicable laws and regulations. Grantees must ensure that any 
subcontractors carry out activities in compliance with part 79.

Section 79.60 Fee Prohibition

    Section 79.60 prohibits grantees from charging a fee to 
participants for providing legal services that are funded with amounts 
from a legal services grant under part 79. VA believes this prohibition 
is appropriate, as similar prohibitions have been implemented for other 
similar grant programs, such as the SSVF Program, and is consistent 
with the intent of Section 4202 of the Act. See 38 CFR 62.37.

Section 79.65 Notice of Funding Opportunity

    Section 79.65 discusses the contents of the Notice of Funding 
Opportunity (NOFO). The NOFO is a notice published in the Federal 
Register and on grants.gov that communicates to the public when funds 
are available for legal services grants. As enumerated in paragraphs 
(a) through (j), the NOFO will identify items such as the location for 
obtaining legal services grant applications; the date, time, and place 
for submitting completed legal services grant applications; the 
estimated amount and type of legal services grant funding available, 
including the maximum grant funding available per award; any priorities 
for or exclusions from funding to meet the statutory mandates of 38 
U.S.C. 2022A and VA goals for the Grant Program; the length of term for 
the legal services grant award; specific point values to be awarded for 
each criterion listed in Sec. Sec.  79.35 and 79.45; the minimum number 
of total points and points per category that an applicant or grantee, 
as applicable, must receive in order for a legal services grant to be 
funded; any maximum uses of legal services grant funds for specific 
legal services; the timeframes and manner for payments under the legal 
services grant; and other information necessary for the legal services 
grant application process as determined by VA, including the 
requirements, goals, and objectives of the Grant Program, and how the 
preference under Sec.  79.40(d)(3) may be met. This is consistent with 
how VA administers similar grant programs, such as the SSVF Program 
(see 38 CFR 62.40).

Section 79.70 Legal Services Grant Agreements

    Section 79.70 discusses legal services grant agreements and the 
requirements that will be included in each agreement prior to VA 
obligating funds, as enumerated in paragraphs (a) through (c). This 
agreement will be enforceable against the grantee and provides VA 
assurance that the grantee will use the legal services grant funds in 
the manner described in the application and in accordance with the 
requirements of part 79.
    Under paragraph (a), after an applicant is selected for a legal 
services grant in accordance with Sec.  79.40, VA will draft a legal 
services grant agreement to be executed by VA and the grantee. Upon 
execution of the legal services grant agreement, VA will obligate legal 
services grant funds to cover the amount of the approved legal services 
grant, subject to the availability of funding. Such agreement will 
provide that the grantee agrees, and will ensure that each 
subcontractor agrees, to operate the program in accordance with the 
provisions of part 79 and the grantee's legal services grant 
application; comply with such other terms and conditions, including 
recordkeeping and reports for program monitoring and evaluation 
purposes, as VA may establish for purposes of carrying out the Grant 
Program, in an effective and efficient manner; and provide such 
additional information as deemed appropriate by VA.
    Paragraph (b) explains the requirements to execute a legal services 
agreement for grant renewal grant in accordance with Sec.  79.50. The 
requirements and grant agreement provisions are the same as for initial 
grant awards as discussed in paragraph (a) of this section.
    Paragraph (c) explains that no funds provided under part 79 may be 
used to replace Federal, State, tribal, or local funds previously used, 
or designated for use, to assist eligible veterans.

Section 79.75 Program or Budget Changes and Corrective Action Plans

    Section 79.75 sets forth the required process grantees must use if 
there are

[[Page 33034]]

changes to the program or budget that alter the grantee's legal 
services grant program. These requirements allow VA to ensure that 
grant funds are used appropriately and to maintain control over the 
quality of legal services provided by the grantee under this part. 
These requirements are enumerated in paragraphs (a) through (c).
    Paragraph (a) states that a grantee must submit to VA a written 
request to modify a legal services grant program for any proposed 
significant change that will alter the grantee's legal services grant 
program. It further explains that if VA approves such change, it will 
issue a written amendment to the legal services grant agreement. A 
grantee must receive VA's approval prior to implementing a significant 
change. Significant changes include, but are not limited to, a change 
in the grantee or any subcontractors identified in the grant agreement; 
a change in the area or community served by the grantee; additions or 
deletions of legal services provided by the grantee; a change in 
category of participants to be served; and a change in budget line 
items that are more than 10 percent of the total legal services grant 
award.
    VA's approval of changes will be contingent upon the grantee's 
amended application retaining a sufficient rank to have been 
competitively selected for funding in the year that the application was 
granted; and each legal services grant modification request will be 
required to contain a description of the revised proposed use of grant 
funds.
    Under paragraph (b), VA may require that the grantee initiate, 
develop, and submit to VA for approval a Corrective Action Plan (CAP) 
if, on a quarterly basis, actual legal services grant expenditures vary 
from the amount disbursed to a grantee for that same quarter or actual 
legal services grant activities vary from the grantee's program 
description provided in the legal grant agreement. Paragraph (b) also 
sets forth specific requirements related to the CAP. These include that 
the CAP must identify the expenditure or activity source that has 
caused the deviation, describe the reason(s) for the variance, provide 
specific proposed corrective action(s), and provide a timetable for 
accomplishment of the corrective action. After receipt of the CAP, VA 
will send a letter to the grantee indicating that the CAP is approved 
or disapproved. If disapproved, VA will make beneficial suggestions to 
improve the proposed CAP and request resubmission or take other actions 
in accordance with this part.
    Paragraph (c) explains that grantees are required to inform VA in 
writing of any key personnel changes (e.g., new executive director, 
legal services grant program director, or chief financial officer) and 
grantee address changes within 30 days of the change.

Section 79.80 Faith-Based Organizations

    As VA anticipates that religious or faith-based organizations may 
apply for grants under this part, Sec.  79.80 describes the conditions 
for use of legal services grants provided under this part as they 
relate to religious activities. The conditions are enumerated in 
paragraphs (a) through (g). This is similar to the language used for 
the Homeless Providers Grant and Per Diem Program (38 CFR 61.64) and 
the SSVF Program (38 CFR 62.62).
    Under paragraph (a), faith-based organizations are eligible, on the 
same basis as any other organization, to participate in the Grant 
Program under this part. Decisions about awards of Federal financial 
assistance must be free from political interference or even the 
appearance of such interference and must be made on the basis of merit, 
not on the basis of religion or religious belief or lack thereof.
    Under paragraph (b)(1), no organization may use direct financial 
assistance from VA under this part to pay for explicitly religious 
activities such as religious worship, instruction, or proselytization; 
or equipment or supplies to be used for any of those activities. 
Paragraph (b)(2) states that references to financial assistance are 
deemed to be references to direct Federal financial assistance, unless 
the referenced assistance meets the definition of indirect Federal 
financial assistance in part 79.
    Under paragraph (c), organizations that engage in explicitly 
religious activities, such as worship, religious instruction, or 
proselytization, must offer those services separately, in time or 
location, from any programs or services funded with direct financial 
assistance from VA under part 79. Furthermore, participation in any of 
the organization's explicitly religious activities must be voluntary 
for the participants of a program or service funded by direct financial 
assistance from VA under that part.
    Under paragraph (d), a faith-based organization that participates 
in the Grant Program will retain its independence from Federal, State, 
or local governments, including the definition, practice and expression 
of its religious beliefs. However, organizations may not use direct 
financial assistance from VA under this part to support any explicitly 
religious activities, such as worship, religious instruction, or 
proselytization. Faith-based organizations may use space in their 
facilities to provide VA-funded services under this part, without 
concealing, removing, or altering religious art, icons, scripture, or 
other religious symbols. Additionally, a VA-funded faith-based 
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.
    Under paragraph (e), an organization that participates in the Grant 
Program shall not, in providing legal services, discriminate against a 
participant or prospective participant regarding legal services on the 
basis of religion or religious belief.
    Under paragraph (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.
    Paragraph (g) states that to the extent otherwise permitted by 
Federal law, the restrictions on explicitly religious activities set 
forth in this section do not apply where VA funds are provided to 
faith-based organizations through indirect assistance as a result of a 
genuine and independent private choice of a participant, provided the 
faith-based organizations otherwise satisfy the requirements of this 
part. A faith-based organization may receive such funds as the result 
of a participant's genuine and independent choice if, for example, a 
participant redeems a voucher, coupon, or certificate, allowing the 
participant to direct where funds are to be paid, or a similar funding 
mechanism provided to that participant and designed to give that 
participant a choice among providers.

Section 79.85 Visits to Monitor Operations and Compliance

    Section 79.85 governs VA's authority to conduct onsite inspections 
to monitor grantee operations and compliance with the Grant Program. 
The ability for VA to conduct inspections and monitor operations is 
critical for VA oversight over the grants and is set forth in 
paragraphs (a) and (b).
    Paragraph (a) authorizes VA to make visits to all grantee 
locations, at all reasonable times, where a grantee is using legal 
services grant funds to review grantee accomplishments and

[[Page 33035]]

management control systems and to provide such technical assistance, as 
required. VA may also conduct inspections of all program locations and 
records of a grantee at such times as are deemed necessary to determine 
compliance with the provisions of this part. If a grantee delivers 
services in a participant's home, or at a location away from the 
grantee's place of business, VA may accompany the grantee. If the 
grantee's visit is to the participant's home, VA will only accompany 
the grantee with the consent of the participant. If any visit is made 
by VA on the premises of the grantee or a subcontractor under the legal 
services grant, the grantee must provide, and must require its 
subcontractors provide VA access to all reasonable facilities and 
assistance for the safety and convenience of the VA representatives in 
the performance of their duties. All visits and evaluations will be 
performed in such a manner as will not unduly delay services.
    These provisions are critical for VA oversight over legal services 
grants and are consistent with how VA administers other grant programs. 
See 38 CFR 61.65 and 62.63.
    Paragraph (b) clarifies that VA's authority to inspect does not 
provide VA with authority over the management or control of any 
applicant or grantee under part 79.

Section 79.90 Financial Management and Administrative Costs

    Section 79.90 sets forth requirements with which grantees must 
comply regarding the financial management of approved grant funds. This 
provision is included in this interim final rule to ensure grantees are 
aware of additional requirements with which they must comply. These 
requirements are outlined in paragraphs (a) through (d).
    Paragraph (a) requires grantees comply with applicable requirements 
of the Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards under 2 CFR part 200. Part 200 of 2 CFR 
establishes the uniform administrative requirements, cost principles, 
and audit requirements for Federal awards to non-Federal entities.
    Paragraph (b) requires grantees use a financial management system 
that provides adequate fiscal control and accounting records and meets 
the requirements in 2 CFR part 200.
    Paragraph (c) requires payment up to the amount specified in the 
legal services grant must be made only for allowable, allocable, and 
reasonable costs in conducting the work under the grant, and the 
determination of allowable costs must be made in accordance with the 
applicable Federal Cost Principles in 2 CFR part 200. Paragraph (d) 
prohibits costs for administration by a grantee from exceeding 10 
percent of the total amount of the legal services grant. Administrative 
costs include all costs associated with the management of the program 
and include the administrative costs of subcontractors.
    VA has determined this limitation on administrative costs to be 
reasonable and consistent with the purpose of the Grant Program to 
provide legal services to eligible veterans. This requirement ensures 
most of the grant funds (at least 90 percent) are used to provide legal 
services to participants, consistent with the purpose of the Grant 
Program. These requirements are also consistent with the SSVF Program, 
which allows only 10 percent of the grant funds to be used for 
specified administrative costs. See 38 CFR 62.10. VA has not identified 
any issues with this limitation in the context of the SSVF Program. VA 
believes that 10 percent is a reasonable maximum for administrative 
costs, and any additional funds needed by grantees to administer this 
Grant Program should be provided by non-VA funds.

Section 79.95 Grantee Reporting Requirements

    Section 79.95 sets forth reporting requirements regarding the legal 
services carried out using grant funds provided under this part in 
paragraphs (a) through (f). Under section 4202 of the Act, VA is 
required to submit biennial reports to Congress about (1) the number of 
homeless veterans and veterans at risk for homelessness assisted; (2) a 
description of the legal services provided; (3) a description of the 
legal matters addressed; and (4) an analysis of the operational 
effectiveness and cost-effectiveness of the services provided. See 38 
U.S.C. 2022A(g). In furtherance of VA's congressionally mandated 
reporting requirements, we require all grantees to submit reports to VA 
describing the legal services provided with the approved grant funds. 
Such reporting requirements ensure that grants funds are being properly 
used consistent with section 4202 of the Act and this part. These 
reporting requirements also ensure that VA is being a good fiscal 
steward of the taxpayer dollar.
    In paragraph (a), VA reserves the right to require grantees to 
provide, in any form as may be prescribed, such reports or answers in 
writing to specific questions, surveys, or questionnaires as VA 
determines necessary to carry out the Grant Program.
    In paragraph (b), at least once a year or at another frequency set 
by VA, each grantee must submit to VA a report containing information 
relating to operational effectiveness; fiscal responsibility; legal 
services grant agreement compliance; and legal and regulatory 
compliance, including a description of how the grantee used the grant 
funds, the number of participants assisted; information on each 
participant's gender, age, race, and service era; a description of the 
legal services provided to each participant; and any other information 
that VA requests. VA deems this information necessary to analyze and 
monitor the grantee's performance.
    In paragraph (c), VA retains the discretion to request additional 
reports to be able to fully assess the provision of legal services 
under part 79. This catch-all provision allows VA to request additional 
reports that it may need to further assess the project and the program. 
These will vary on a case-by-case basis dependent on the legal services 
project and its progression. Additionally, if VA is required to submit 
additional reports to Congress on this program, VA reserves the right 
to obtain necessary information under this paragraph. This also 
provides a safeguard in instances where there may be confusing, 
misleading, inconsistent, or unclear statements in submitted reports. 
VA reserves the right to request additional reports to clarify 
information VA receives in other reports submitted by a grantee.
    In paragraph (d), VA requires that grantees relate financial data 
to performance data and develop unit cost information whenever 
practical. This is another metric to help VA assess the strength of the 
grantee's legal services program.
    In paragraph (e), VA requires that all pages of the reports must 
cite the assigned legal services grant number and be submitted in a 
timely manner as set forth in the grant agreement.
    In paragraph (f), VA further requires that grantees provide VA with 
consent to post information from reports on the internet and use such 
information in other ways deemed appropriate by VA. Grantees must 
clearly redact information that is confidential based on attorney-
client privilege, unless that privilege has been waived by the client. 
VA may post portions of the reports on the internet so that the public 
has a greater understanding of the Grant Program. Additionally, VA may 
use the information for promotional or evaluation purposes.

[[Page 33036]]

Section 79.100 Recordkeeping

    Section 79.100 establishes a recordkeeping requirement on all 
grantees. Grantees are required to keep and maintain records for at 
least a 3-year period that document compliance with the Grant Program 
requirements in part 79. Grantees will need to produce these records at 
VA's request. This will assist VA in providing oversight over grantees. 
This provision is consistent with section 4202(a) of the Act requiring 
VA to analyze the operational effectiveness and cost effectiveness of 
the legal services provided by the grantees. This provision is also 
consistent with 2 CFR 200.334 requiring Federal award recipients to 
keep financial records, supporting documents, statistical records, and 
all other non-Federal entity records pertinent to a Federal award for a 
3-year period.

Section 79.105 Technical Assistance

    Under Sec.  79.105, VA will provide technical assistance to 
applicants and grantees, as necessary, to meet the requirements of part 
79. Such technical assistance will be provided either directly by VA or 
through contracts with appropriate public or non-profit private 
entities. The technical assistance may provide applicants and grantees 
with resources for planning, development, and provision of legal 
services to homeless veterans or veterans at risk for homelessness. As 
part of this technical assistance, VA may offer training sessions for 
applicants and grantees to assist with understanding and implementing 
the Grant Program.

Section 79.110 Withholding, Suspension, Deobligation, Termination, and 
Recovery of Funds by VA

    Section 79.110 explains that VA will enforce this part through such 
actions as may be appropriate. Appropriate actions include withholding, 
suspension, deobligation, termination, recovery of funds by VA, and 
actions in accordance with 2 CFR part 200.
    Part 200 describes such actions as withholding, suspension, 
deobligation, termination, and recovery of funds. See 2 CFR 200.208, 
200.305, and 200.339 through 200.343, and 200.346. As legal services 
grants are subject to the requirements of 2 CFR part 200, VA explicitly 
references 2 CFR part 200 in Sec.  79.110 to ensure that grantees 
understand and know where to locate these requirements related to 
withholding, suspension, deobligation, termination, and recovery of 
funds. VA refers to 2 CFR part 200 rather than include those 
requirements in this section as those requirements in 2 CFR part 200 
may change. Referencing 2 CFR part 200 provides VA the ability to 
implement those changes without having to conduct further rulemaking.
    VA acknowledges that when certain actions (such as suspension and 
termination) are taken against grantees pursuant to this section and 2 
CFR part 200, a disruption in services to participants may occur. While 
VA is not regulating responsibilities for grantees to continue to 
provide services or to coordinate the transfer of participants to other 
sources of legal support, VA will include such requirements and 
responsibilities in the grant agreement that VA and the grantee enter 
into pursuant to part 79. This will ensure that the disruption and 
impact upon participants is minimized as much as possible.

Section 79.115 Legal Services Grant Closeout Procedures

    Section 79.115 explains that legal services grants will be closed 
out in accordance with 2 CFR part 200. Procedures for closing out 
Federal awards are currently located at 2 CFR 200.344 and 200.345. As 
legal services grants are subject to the requirements of 2 CFR part 
200, VA explicitly references 2 CFR part 200 in Sec.  79.115 to ensure 
that grantees understand and know where to locate these requirements. 
VA refers to 2 CFR part 200 rather than include those requirements in 
this section as those requirements in 2 CFR part 200 may change, and 
referencing 2 CFR part 200 provides VA the ability to implement those 
changes without having to conduct further rulemaking.

Administrative Procedure Act

    The Administrative Procedure Act (APA), codified in part at 5 
U.S.C. 553, generally requires agencies to publish substantive rules in 
the Federal Register for notice and comment. These notice and comment 
requirements generally do not apply to ``a matter relating to agency 
management or personnel or to public property, loans, grants, benefits 
or contracts.'' 5 U.S.C. 553(a)(2). However, 38 U.S.C. 501(d) requires 
VA to comply with the notice and comment requirements in 5 U.S.C. 553 
for matters relating to grants, notwithstanding section 553(a)(2). 
Thus, as this rulemaking relates to the Grant Program required by 
section 4202 of the Act, VA is required to comply with the notice and 
comment requirements of 5 U.S.C. 553.
    However, pursuant to 5 U.S.C. 553(b)(B) general notice and the 
opportunity for public comment are not required with respect to a 
rulemaking when an ``agency for good cause finds (and incorporates the 
finding and a brief statement of reasons therefor in the rules issued) 
that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.''
    In accordance with 5 U.S.C. 553(b)(B), the Secretary has concluded 
that there is good cause to publish this rule without prior opportunity 
for public comment. This rule implements the Act's mandate to establish 
a new grant program that will allow VA to make grants to eligible 
entities that provide certain legal services to homeless veterans and 
veterans at risk for homelessness, with at least 10 percent of funding 
being utilized to provide legal services to women veterans. This is the 
first Grant Program of this kind, as there is currently no other active 
Federal source of funding focused on providing legal services to 
veterans.
    Homelessness is a national crisis, especially among the veteran 
population. On a single night in January 2021, there were 19,750 
veterans experiencing sheltered homelessness in the United States. See, 
HUD, The 2021 Annual Homeless Assessment Report (AHAR) to Congress: 
Part 1: Point-in-Time Estimates of Homelessness (2022), https://www.huduser.gov/portal/sites/default/files/pdf/2021-AHAR-Part-1.pdf. 
Many of these veterans have unmet legal needs that impact their ability 
to maintain housing. These unmet legal needs are in the areas of family 
law, court fees/court fines, credit issues/debt collection, expungement 
of a criminal record, child support issues, and tax issues. See VA Fact 
Sheet: Community Homelessness Assessment, Local Education and 
Networking Groups (CHALENG), April 2021, https://www.va.gov/HOMELESS/docs/CHALENG-2020-508.pdf. Without the support provided by consistent 
legal services, individuals may not be able to find or maintain 
housing. It is critical that this rulemaking publish without delay, as 
the Grant Program will seek to help prevent and eliminate homelessness 
among the veteran population by distributing grants for the provision 
of legal services that will address barriers to housing stability, 
especially during the Coronavirus Disease-2019 (COVID-19) pandemic.
    VA believes that the number of veterans who are homeless is likely 
significantly higher than HUD's recent estimates, and that more 
veterans are and will be at risk for homelessness due to the sustained 
adverse economic consequences of the COVID-19 pandemic on veterans in 
particular.

[[Page 33037]]

    Recent available data focused on veteran homelessness is difficult 
to interpret, with varied information over the last two years of the 
COVID-19 pandemic that does not accurately reflect the current picture 
of veterans who are homeless and at risk for homelessness. After nearly 
a decade of steady decline, HUD's 2020 point-in-time estimate indicated 
an increase in veteran homelessness by 0.5 percent from 2019. See, HUD, 
The 2020 AHAR to Congress: Part 1: Point-in-Time Estimates of 
Homelessness (2021), https://www.huduser.gov/portal/sites/default/files/pdf/2020-AHAR-Part-1.pdf. However, in HUD's most recent AHAR, the 
number of veterans experiencing sheltered homelessness in 2021 
decreased by ten percent from 2020. See, HUD, The 2021 AHAR to 
Congress: Part 1: Point-in-Time Estimates of Homelessness (2022), 
https://www.huduser.gov/portal/sites/default/files/pdf/2021-AHAR-Part-1.pdf. A comparison of the most recent AHAR to previous AHARs must take 
into account a complete picture of homelessness in the United States, 
including protective measures put in place during the COVID-19 
pandemic, such as eviction moratoriums, social distancing, and space 
limits in homeless shelters, which have recently evaporated. This is 
why the 2021 AHAR is uniquely limited in scope, particularly as it 
lacks a full unsheltered count of people living in tents, cars, or 
streets throughout the country. See ``Findings--and Limitations--of the 
2021 Point-in-Time Count [verbar] United States Interagency Council on 
Homelessness (USICH), https://www.usich.gov/news/findingsand-limitationsof-the-2021-point-in-time-count/ (Citing COVID-19 concerns, 
40 percent of communities--including the places with the highest levels 
of homelessness and almost the entire state of California--did not 
conduct a full unsheltered count of people living in tents, cars, or 
streets. Of the 20 communities with the highest unsheltered numbers in 
2020, only one completed a full unsheltered count in 2021). It is worth 
noting that the 2021 AHAR report also found that sheltered chronic 
homelessness appears to have increased by 20 percent. This is why the 
actual number of homeless veterans is likely significantly higher than 
estimated by HUD, since the HUD point-in-time (PIT) estimate also 
excludes individuals staying in supportive housing paid for by Federal 
funds, and those moving from place-to-place among friends or family. 
Id. As stated by the United States Interagency Council on Homelessness, 
``[a]ny comparison between this year's PIT findings and previous 
findings are complicated by the incompleteness of data for the 2021 
count.'' Id.
    Incomplete data is one of several potential reasons for HUD's 2021 
finding of a ten percent decline in overall sheltered homelessness. In 
addition, congregate shelters limited their occupancy to comply with 
Centers for Disease Control and Prevention (CDC) COVID-19 
recommendations and pandemic policies. This necessarily resulted in 
fewer veterans being counted as homeless and the exclusion of veterans 
who needed such sheltering but could not obtain a space. Moreover, 
eviction moratoriums, stimulus payments, and expanded unemployment 
benefits, likely also reduced the number of people counted among the 
sheltered homeless. Id. Given such limitations on the available data, 
the true number of veterans who are homeless or at risk for 
homelessness remains quite unclear.
    Notwithstanding things like stimulus payments and expanded 
unemployment benefits, stay-at-home orders and reduced working hours 
during the COVID-19 pandemic had a profound economic effect on 
individuals, including members of the veteran population. U.S. Bureau 
of Labor Statistics, Employment Situation of Veterans Summary (March 
18, 2021), https://www.bls.gov/news.release/archives/vet_03182021.htm; 
see also, Legal Services Corporation, Appropriations Supplemental 
Request for Legal Services Corporation Nationwide Grantee Assistance 
for Coronavirus Emergency Response (2021), https://www.americanbar.org/content/dam/aba/administrative/government_affairs_office/lsc-covid-supp-request.pdf. The veteran population experienced increased 
unemployment rates during the COVID-19 pandemic. See, Armstrong, N. 
(October 25, 2020), Understanding the economic impacts of COVID-19 on 
veterans and military families, Military Times, https://www.militarytimes.com/opinion/commentary/2020/10/25/understanding-the-economic-impacts-of-covid-19-on-veterans-and-military-families/. In 
fact, in 2020, veteran unemployment rates increased by more than twice 
the rates in 2019. U.S. Bureau of Labor Statistics, Employment 
Situation of Veterans Summary (March 18, 2021), www.bls.gov/news.release/archives/vet_03182021.htm.
    Job loss and economic hardship due to the COVID-19 pandemic has led 
to increased housing precarity and risk of eviction. Eviction can have 
long-term, negative effects as it creates a permanent legal record that 
can allow landlords to screen tenants with a history of eviction and 
ultimately preclude them from future rental opportunities. See Benfer, 
A. et al (2021), Eviction, Health Inequity, and the Spread of COVID-19: 
Housing Policy as a Primary Pandemic Mitigation Strategy, Journal of 
Urban Health, 98, 1-12. Evictions can therefore lead to homelessness, 
which is connected to poverty and higher rates of arrest. Access to 
Justice in the Age of COVID-19: A Roundtable Report (2021), https://www.justice.gov/ag/page/file/1445356/download. Legal assistance to 
prevent eviction can eliminate potential barriers that preclude 
veterans at risk for homelessness from maintaining housing. See, Access 
to Justice in the Age of COVID-19: A Roundtable Report (2021), https://www.justice.gov/ag/page/file/1445356/download, (``As the pandemic 
continues, the need for legal services to combat evictions is 
ongoing.'')
    To the extent that actions such as increased unemployment benefits 
and moratoriums against eviction, foreclosure, and utility shut-offs, 
helped mitigate the effects of the COVID-19 pandemic, many of these 
mitigation actions have recently ceased. VA is concerned that the 
disappearance of such protections will seriously impact the ability of 
some veterans to maintain stable housing or recover economically. 
Unemployment and loss of income are major predictors of homelessness. 
Trott, J., Lattimore, K., Teitelbaum, J., (2020), Veterans Face 
Mounting Legal Needs Amidst the COVID-19 Pandemic, National Center for 
Medical Legal Partnership. For this reason, maintaining stable housing 
is expected to be increasingly difficult and challenging for veterans 
during and in the aftermath of the COVID-19 pandemic. Id. Additionally, 
widespread reports of soaring rental prices (see Arnold, C. (February 
14, 2022), It's not just home prices. Rents rise sharply across the 
U.S. NPR. https://www.npr.org/2022/02/14/1080145270/its-not-just-home-prices-rents-rise-sharply-across-the-u-s) may leave many veterans at 
risk for homelessness, especially in light of the economic impact of 
the COVID-19 pandemic on veterans.
    The legal services to be provided under this Grant Program will 
provide direct economic support for veterans who are homeless or at-
risk of becoming so as COVID-19 pandemic mitigation policies evaporate. 
Historically, half of homeless veterans' unmet needs consist of legal 
needs, specifically in the areas of family law, court fees/court fines, 
credit issues/debt collection,

[[Page 33038]]

expungement of a criminal record, child support issues, and tax issues. 
See, Fact Sheet, U.S. Dep't of Veterans Aff., CHALENG (April 2021), 
https://www.va.gov/HOMELESS/docs/CHALENG-2020-508.pdf. In both the 2017 
and 2018 CHALENG survey responses, legal assistance with evictions/
foreclosures were specifically among the top ten unmet needs of 
homeless veterans.
    Time and time again, legal services organizations provide VA with 
examples of veterans they have assisted with a uniquely legal issue--
such as expunging a prior conviction on one's criminal record, 
achieving a successful complex application for public benefits or 
modifying a child support order--which changed the course of the 
veteran's life by providing desperately needed income and stability. 
For many veterans, legal assistance to obtain reliable income support 
or to remove obstacles to income results in a critical source of income 
for rent for stable housing or an anchor from which the veteran can 
then pursue employment or VA treatment services. Without the legal 
assistance provided by this Grant Program, veterans who are homeless or 
at risk of homelessness may be unable to access compensation benefits 
from Veterans Benefits Administration or health care benefits from 
Veterans Health Administration. During the consultation in March 2021, 
Equal Justice Works reported that between 2018 and 2019, its Veterans 
Legal Corps attorneys helped obtain economic benefits of over $11.6 
million for veterans by securing public benefits through the provision 
of legal services. The legal services covered under this Grant Program 
will result in veterans' ability to sustain housing and avoid 
homelessness, and therefore must be effective as soon as possible.
    As mentioned above, we are approaching a critical point when 
pandemic protections are disappearing, which presents a larger risk of 
homelessness and legal issues for which this Grant Program will 
immediately be needed. There is no other current Federal source of 
funding that is focused on providing such legal services to veterans. 
It is therefore of utmost importance to have this regulation effective 
prior to notice and comment so that legal services can be provided to 
veterans who are homeless and at risk for homelessness immediately to 
support housing stability among this population. During the COVID-19 
pandemic, legal aid funding has been limited. See, Kaplan, A. (2021), 
More people than ever need legal aid services. But the pandemic has hit 
legal aid funding hard, NBC News, https://www.nbcnews.com/business/personal-finance/more-people-ever-need-legal-aid-services-pandemic-has-hit-n1264989. Thus, there are limited legal resources available to 
address the needs of individuals, including veterans, that may be 
facing negative economic consequences from the COVID-19 pandemic. 
According to the Access to Justice in the Age of COVID-19: A Roundtable 
Report, the COVID-19 pandemic also drastically exacerbated the need for 
legal help and strained the resources that did exist. See, https://www.justice.gov/ag/page/file/1445356/download. The pandemic generated 
an unprecedented need for government assistance, including rental and 
mortgage assistance, child tax credits, unemployment benefits, and 
utilities payments. At the same time, applying for benefits became even 
more challenging in the expanded virtual environment. Id.
    Through this Grant Program, those veterans who may be hit hardest 
by the pandemic (that is, homeless veterans and veterans at risk for 
homelessness) may receive critical legal services related to 
unemployment benefits, eviction, and those unmet legal needs as 
discussed earlier. During the COVID-19 pandemic, legal needs in such 
areas as evictions, unemployment assistance, and income maintenance 
have increased throughout the country. See, Legal Services Corporation 
(July 24, 2020), Legal Services Corporation Survey Finds Major Impact 
of COVID-19 Pandemic on Legal Aid, https://www.lsc.gov/press-release/lsc-survey-finds-major-impact-covid-19-pandemic-legal-aid; See also, 
Legal Services Corporation (February 9, 2021), LSC Requests Funding to 
Address Surge in Demand for Legal Aid Amid COVID-19, https://www.lsc.gov/press-release/lsc-requests-funding-address-surge-demand-legal-aid-amid-covid-19; See also, Access to Justice in the Age of 
COVID-19: A Roundtable Report (2021), https://www.justice.gov/ag/page/file/1445356/download.
    Additionally, the legal services that may be provided pursuant to 
this Grant Program are critical to this population's health and well-
being. Those who have legal problems are more likely to experience 
suicidal ideation and attempt suicide than those without legal 
problems. Pre-pandemic, veterans facing legal challenges were 86 
percent more likely to have suicidal ideation, and 57 percent more 
likely to attempt suicide, even after adjusting for mental health 
conditions that are as relevant as other medical factors like 
depression for suicide prevention and treatment. Blosnich, J., et al. 
(2019), Social Determinants and Military Veterans' Suicide Ideation and 
Attempt: A Cross-sectional Analysis of Electronic Health Record Data, 
35 J. General Internal Med. 1759-1767. Veterans with housing 
instability--whom this Grant Program would directly focus on--were 200 
percent more likely to have suicidal ideation, and 118 percent more 
likely to attempt suicide, also after adjusting for mental health 
diagnoses. Id. It is therefore critical that the legal services 
provided by this Grant Program to assist this population are made 
available as soon as possible. Veterans with legal problems and housing 
issues alike also experience other co-occurring adverse social 
determinants of health including financial/employment problems, and 
nonspecific psychosocial needs, among others, that may contribute to 
suicidality. Id.
    Additionally, many veterans are diagnosed with mental illnesses 
associated with active-duty service. In 2017, GAO reported that 62 
percent of servicemembers separated for misconduct during fiscal years 
2011-2015 had been diagnosed with post-traumatic stress disorder 
(PTSD), traumatic brain injury, or certain other conditions that could 
be associated with misconduct within the two years before their date of 
separation. U.S. Government Accountability Office (2017), GAO-17-260, 
DOD Health: Actions Needed to Ensure Post-Traumatic Stress Disorder and 
Traumatic Brain Injury Are Considered in Misconduct Separations, 
https://www.gao.gov/assets/690/685052.pdf. Without the legal assistance 
to be provided through this Grant Program, these veterans may be unable 
to properly file the complete paperwork to have their discharge 
upgraded. Moreover, when provided in conjunction with VA healthcare, 
legal services for veterans have been found to decrease veterans' PTSD 
symptoms, reduce veteran spending on substance abuse, and improve 
mental health and housing stability. Tsai, J. et al. (2017), Medical-
Legal Partnerships At Veterans Affairs Medical Centers Improved Housing 
and Psychosocial Outcomes For Vets, 36 Health Aff. no.12, 2195-2203.
    As the White House-Department of Justice Legal Aid Interagency 
Roundtable found, when someone faces a civil legal problem, such as 
eviction, the denial of healthcare benefits, or unemployment, it can 
interact with other factors and affect an individual's long-term 
health. Access to Justice in the Age of COVID-19: A Roundtable Report 
(2021), https://www.justice.gov/ag/page/file/1445356/download. The

[[Page 33039]]

Attorney General's memorandum issued on Veterans Day 2021 also noted 
that ``leaving [Veterans'] legal needs unaddressed exacerbates the 
risks [they] already face--from housing instability to homelessness and 
from joblessness to suicide,'' and called for ways to better meet 
veterans' legal needs which ``may [ ] utilize new grant authorities 
that provide legal services for veterans''. Attorney General 
Memorandum--Guarding the Rights of and Improving Access to Justice for 
Veterans Servicemembers and Military Families (November 10, 2021), 
https://justice.gov/opa/page/file/1447636/download.
    Through programs that expand and fund veterans' legal services, 
such as this Grant Program, VA and other organizations may be able to 
address destabilizing economic, social, and health inequities among 
this vulnerable population. See, Key Studies and Data about How Legal 
Aid Helps Veterans (March 23, 2021), The Justice in Government Project, 
https://legalaidresourcesdotorg.files.wordpress.com/2021/04/veterans.pdf. Legal services provided under this Grant Program will 
assist a veteran in obtaining and maintaining housing, obtaining and 
sustaining gainful and satisfying employment, and obtaining crucial 
medical care and compensation benefits, which have both indirect and 
direct impacts on housing stability, and overall health and well-being. 
Thus, it is critical that this Grant Program be implemented prior to 
notice and comment so that VA can provide funding to those entities 
that can assist homeless veterans and those veterans at risk for 
homelessness who have unaddressed needs for legal services, which may 
create barriers to housing stability, especially during the COVID-19 
pandemic. Any additional delay in implementation caused by seeking and 
responding to public comments prior to implementation delays VA's 
ability to provide direct grant funding for critical legal services 
specifically for homeless veterans and veterans at risk for 
homelessness who may be especially vulnerable and in need of these 
legal services during, and as a result of, the COVID-19 pandemic. 
Providing notice and obtaining comment in advance of implementation 
would add a significant delay to an already lengthy implementation 
process and would exacerbate a growing and increasingly urgent problem.
    Additionally, this rulemaking has not been without public input. VA 
reiterates that as described earlier in this document, VA sought and 
obtained such input through a consultation with several legal services 
organizations experienced in aiding homeless veterans and those at risk 
for homelessness, as required by the Act. These organizations provided 
information on the types of legal services to be covered, additional 
considerations in dealing with rural and tribal communities, and how to 
determine the effectiveness of the organizations once competitively 
selected, among other information. This input has been reviewed and 
incorporated, as appropriate, in this rulemaking.
    For these reasons, the Secretary has concluded that ordinary notice 
and comment procedures would be contrary to the public interest and is 
accordingly issuing this rule as an interim final rule effective. The 
Secretary will consider and address comments that are received within 
60 days after the date that this interim final rule is published in the 
Federal Register and address them in a subsequent Federal Register 
document announcing a final rule incorporating any changes made in 
response to the public comments.

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. 
The Office of Information and Regulatory Affairs has determined that 
this rule is not a significant regulatory action under Executive Order 
12866. The Regulatory Impact Analysis associated with this rulemaking 
can be found as a supporting document at www.regulations.gov.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601-612, is not applicable 
to this rulemaking because notice of proposed rulemaking is not 
required. 5 U.S.C. 601(2), 603(a), 604(a).

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 interim final rule will have no such 
effect on State, local, and tribal governments, or on the private 
sector.

Paperwork Reduction Act

    This interim final rule includes provisions constituting 
collections of information under the Paperwork Reduction Act of 1995 
(44 U.S.C. 3501-3521) that require approval by the Office of Management 
and Budget (OMB). Accordingly, under 44 U.S.C. 3507(d), VA has 
submitted a copy of this rulemaking action to OMB for review.
    OMB assigns control numbers to collections of information it 
approves. 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. Section 79.25 contains application 
provisions for legal services grants, including renewals. Section 79.75 
contains provisions for program or budget changes and submission of 
corrective action plans. Section 79.95 contains grantee reporting 
requirements. These sections are collections of information under the 
Paperwork Reduction Act of 1995. If OMB does not approve the 
collections of information as requested, VA will immediately remove the 
provisions containing a collection of information or take such other 
action as is directed by OMB.
    Comments on the new collection of information contained in this 
rulemaking should be submitted through www.regulations.gov. Comments 
should indicate that they are submitted in response to ``RIN 2900-
AR33--Legal Services for Homeless Veterans and Veterans At-Risk for 
Homelessness Grant Program'' and should be sent within 30 days of 
publication of this rulemaking. The collection of information 
associated with this rulemaking can be viewed at: www.reginfo.gov/public/do/PRAMain.
    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 interim final rule.
    The Department considers comments by the public on collections of 
information in--
    <bullet> 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;
    <bullet> Evaluating the accuracy of the Department's estimate of 
the burden of the collections of information, including

[[Page 33040]]

the validity of the methodology and assumptions used;
    <bullet> Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
    <bullet> Minimizing the burden of the collections of information on 
those who are to respond, including 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.
    The collections of information contained in 38 CFR 79.25, 79.75, 
and 79.95 are described immediately following this paragraph, under 
their respective titles.

    Title: Initial Applications for the Legal Services for Homeless 
Veterans and Veterans At-Risk for Homelessness Grant Program.
    OMB Control No: 2900-xxxx (New/TBD).
    CFR Provision: 38 CFR Section 79.25.
    <bullet> Summary of collection of information: The new collection 
of information in 38 CFR 79.25 contains application provisions for the 
Grant Program.
    <bullet> Description of need for information and proposed use of 
information: This information is needed to award legal services grants 
to eligible entities.
    <bullet> Description of likely respondents: Non-profit private and 
public legal service entities applying for grants.
    <bullet> Estimated number of respondents per year: 100.
    <bullet> Estimated frequency of responses: Once annually.
    <bullet> Estimated average burden per response: 1,440 minutes.
    <bullet> Estimated total annual reporting and recordkeeping burden: 
2,400 hours.
    <bullet> Estimated cost to respondents per year: VA estimates the 
annual cost to respondents to be $133,104.00. Using VA's average annual 
number of respondents, VA estimates the application information 
collection burden cost to be $133,104.00 per year*. (2,400 burden hours 
for respondents x $55.46 per hour).

    Title: Grant Renewal Applications for the Legal Services for 
Homeless Veterans and Veterans At-Risk for Homelessness Grant Program.
    OMB Control No: 2900-xxxx (New/TBD).
    CFR Provision: 38 CFR Section 79.25.
    <bullet> Summary of collection of information: The new collection 
of information in 38 CFR 79.25 requires grantees who want renew their 
grant to file a renewal application.
    <bullet> Description of need for information and proposed use of 
information: VA needs this information to renew legal services grants 
previously awarded.
    <bullet> Description of likely respondents: Grant Program grantees 
seeking a renewal of funds.
    <bullet> Estimated number of respondents: 75.
    <bullet> Estimated frequency of responses: Once annually.
    <bullet> Estimated average burden per response: 1,200 minutes.
    <bullet> Estimated total annual reporting and recordkeeping burden: 
1,500 hours.
    <bullet> Estimated cost to respondents per year: VA estimates the 
annual cost to respondents to be $83,190.00. Using VA's average annual 
number of respondents, VA estimates the total information collection 
burden cost to be $83,109.00 per year*. (1500 burden hours for 
respondents x $55.46 per hour).

    Title: Program or Budget Changes and Corrective Action Plans for 
the Legal Services for Homeless Veterans and Veterans At-Risk for 
Homelessness Grant Program.
    OMB Control No: 2900-xxxx (New/TBD).
    CFR Provision: 38 CFR Section 79.75.
    <bullet> Summary of collection of information: The new collection 
of information in 38 CFR 79.75 would require grantees to inform VA of 
changes to their approved program through an amendment process.
    <bullet> Description of need for information and proposed use of 
information: This information is needed for a grantee to inform VA of 
significant changes that will alter a grant program approved by VA. In 
addition, VA may require grantees to initiate, develop and submit to VA 
for approval corrective action plans if, on a quarterly basis, actual 
legal services grant expenditures vary from the amount disbursed to a 
grantee for that same quarter or actual legal services grant activities 
vary from the grantee's program description provided in the grant 
agreement.
    <bullet> Description of likely respondents: Grantees who desire to 
modify their approved grant program.
    <bullet> Estimated number of respondents: 10.
    <bullet> Estimated frequency of responses: Once annually.
    <bullet> Estimated average burden per response: 120 minutes.
    <bullet> Estimated total annual reporting and recordkeeping burden: 
20 hours.
    <bullet> Estimated cost to respondents per year: VA estimates the 
annual cost to respondents to be $1,109.20. Using VA's average annual 
number of respondents, VA estimates the total information collection 
burden cost to be $1,109.20 per year*. (20 burden hours for respondents 
x $55.46 per hour).

    Title: Reporting Requirements for the Legal Services for Homeless 
Veterans and Veterans At-Risk for Homelessness Grant Program.
    OMB Control No: 2900-xxxx (New/TBD).
    CFR Provision: 38 CFR Section 79.95.
    <bullet> Summary of collection of information: The new collection 
of information in 38 CFR 79.95 would require the grantee to submit 
reports pertaining to operational and cost effectiveness, fiscal 
responsibility, legal services grant agreement compliance, and legal 
and regulatory compliance.
    <bullet> Description of need for information and proposed use of 
information: VA will use this information to determine grantee program 
effectiveness and compliance with the requirements for the Grant 
Program.
    <bullet> Description of likely respondents: Program grantees for 
the current grant award year.
    <bullet> Estimated number of respondents: 75.
    <bullet> Estimated frequency of responses: Quarterly = 4 times per 
year.
    <bullet> Estimated average burden per response: 30 minutes.
    <bullet> Estimated total annual reporting and recordkeeping burden: 
150 hours.
    <bullet> Estimated cost to respondents per year: VA estimates the 
annual cost to respondents to be $8,319.00. Using VA's average annual 
number of respondents, VA estimates the total information collection 
burden cost to be $8,319.00 per year*. (150 burden hours for 
respondents x $55.46 per hour).
    * The total information collection burden cost associated with this 
regulation is estimated to be $225,722.20.

Assistance Listing

    The Assistance Listing number and title for the program affected by 
this document is 64.009, Veterans Medical Care Benefits.

Congressional Review Act

    Pursuant to Subtitle E of the Small Business Regulatory Enforcement 
Fairness Act of 1996 (known as the Congressional Review Act) (5 U.S.C. 
801 et seq.), the Office of Information and Regulatory Affairs 
designated this rule as not a major rule, as defined by 5 U.S.C. 
804(2).

List of Subjects in 38 CFR Part 79

    Administrative practice and procedure; Disability benefits; Grant 
programs--health; Grant programs--social services; Grant programs--
transportation; Grant programs--

[[Page 33041]]

veterans; Grant programs--housing and community development; Health 
facilities; Homeless; Housing; Housing assistance payments; Indians--
lands; Individuals with disabilities; Legal services; Low and moderate 
income housing; Medicare; Medicaid; Public assistance programs; Public 
housing; Reporting and recordkeeping requirements; Rural areas; Social 
security; Supplemental security income (SSI); Travel and transportation 
expenses; Unemployment compensation; Veterans.

Signing Authority

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on May 2, 2022, 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.

Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.

0
For the reasons stated in the preamble, the Department of Veterans 
Affairs amends 38 CFR Chapter I by adding part 79 to read as follows:

PART 79--LEGAL SERVICES FOR HOMELESS VETERANS AND VETERANS AT-RISK 
FOR HOMELESSNESS GRANT PROGRAM

Sec.
79.0 Purpose and scope.
79.5 Definitions.
79.10 Eligible entities.
79.15 Eligible veterans.
79.20 Legal services.
79.25 Applications for legal services grants.
79.30 Threshold requirements prior to scoring legal services grant 
applicants.
79.35 Scoring criteria for legal services grant applicants.
79.40 Selection of grantees.
79.45 Scoring criteria for grantees applying for renewal of legal 
services grants.
79.50 Selecting grantees for renewal of legal services grants.
79.55 General operation requirements.
79.60 Fee prohibition.
79.65 Notice of Funding Opportunity (NOFO).
79.70 Legal services grant agreements.
79.75 Program or budget changes and corrective action plans.
79.80 Faith-based organizations.
79.85 Visits to monitor operations and compliance.
79.90 Financial management and administrative costs.
79.95 Grantee reporting requirements.
79.100 Recordkeeping.
79.105 Technical assistance.
79.110 Withholding, suspension, deobligation, termination, and 
recovery of funds by VA.
79.115 Legal services grant closeout procedures.

    Authority:  38 U.S.C. 501, 38 U.S.C. 2022A, and as noted in 
specific sections.


Sec.  79.0  Purpose and scope.

    (a) Purpose. This part implements the Legal Services for Homeless 
Veterans and Veterans At-Risk for Homelessness Grant Program to award 
legal services grants to eligible entities to provide legal services to 
eligible veterans.
    (b) Scope. Legal services covered by this part are those services 
that address the needs of eligible veterans who are homeless or at risk 
for homelessness.


Sec.  79.5  Definitions.

    For purposes of this part and any Notice of Funding Opportunity 
(NOFO) issued under this part:
    Applicant means an eligible entity that submits an application for 
a legal services grant announced in a NOFO.
    At risk for homelessness means an individual who meets the criteria 
identified in Sec.  79.15(b).
    Direct Federal financial assistance means Federal financial 
assistance received by an entity selected by the Government or a pass-
through entity as defined in 38 CFR 50.1(d) to provide or carry out a 
service (e.g., by contract, grant, or cooperative agreement).
    Disallowed costs means costs charged by a grantee that VA 
determines to be unallowable based on applicable Federal cost 
principles or based on this part or the legal services grant agreement.
    Eligible entity means an entity that meets the requirements of 
Sec.  79.10.
    Eligible veteran means a veteran that meets the requirements of 
Sec.  79.15(a) or (b).
    Grantee means an eligible entity that is awarded a legal services 
grant under this part.
    Homeless veteran means a veteran who is homeless as that term is 
defined in subsection (a) or (b) of section 103 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11302).
    Indian tribe has the meaning as given that term in in 25 U.S.C. 
4103.
    Indirect Federal financial assistance means Federal financial 
assistance in which a service provider receives program funds through a 
voucher, certificate, agreement or other form of disbursement, as a 
result of the genuine, independent choice of a participant.
    Legal services means the services listed in Sec.  79.20.
    Legal services grant means a grant awarded under this part.
    Legal services grant agreement means the agreement executed between 
VA and a grantee as specified under Sec.  79.70.
    Non-profit private entity means an entity that meets the criteria 
in Sec.  79.10(c).
    Notice of Funding Opportunity (NOFO) has the meaning as given to 
this term in 2 CFR 200.1.
    Participant means an eligible veteran who is receiving legal 
services from a grantee under this part.
    Public entity means an entity that meets the criteria in Sec.  
79.10(b).
    Rural communities means those communities considered rural 
according to the Rural-Urban Commuting Area (RUCA) system as determined 
by the United States Department of Agriculture (USDA).
    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.
    Subcontractor means any third-party contractor, of any tier, 
working directly for an eligible entity.
    Suspension means an action by VA that temporarily withdraws VA 
funding under a legal services grant, pending corrective action by the 
grantee or pending a decision to terminate the legal services grant by 
VA. Suspension of a legal services grant is a separate action from 
suspension under VA regulations or guidance implementing Executive 
Orders 12549 and 12689, ``Debarment and Suspension.''
    Tribal organization has the meaning given that term in 25 U.S.C. 
5304.
    Trust land has the meaning given that term in 38 U.S.C. 3765.
    Very Low Income means a veteran's income is 50 percent or less of 
the median income for an area or community.
    Veteran has the meaning given to that term in 38 U.S.C. 101(2).
    Withholding means that payment of a legal services grant will not 
be paid until such time as VA determines that the grantee provides 
sufficiently adequate documentation and/or actions to correct a 
deficiency for the legal services grant.


Sec.  79.10  Eligible entities.

    (a) To be an eligible entity under this part, the entity must:
    (1) Be a public or nonprofit private entity with the capacity to 
effectively administer a grant under this part;
    (2) Demonstrate that adequate financial support will be available 
to carry out the services for which the grant is sought consistent with 
the legal services grant application; and

[[Page 33042]]

    (3) Agree to meet the applicable criteria and requirements of this 
part.
    (b) A public entity includes any of the following:
    (1) Local government, (that is, 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);
    (2) State government;
    (3) Federally recognized Indian tribal government. 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 section 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.
    (c) A nonprofit private entity is an entity that meets the 
requirements of 26 U.S.C. 501(c)(3) or (19).


Sec.  79.15  Eligible veterans.

    (a) To be eligible for legal services under this part, an 
individual must be a:
    (1) Homeless veteran or
    (2) Veteran at risk for homelessness.
    (b) ``At risk for homelessness'' in this part means an individual 
who does not have sufficient resources or support networks, e.g., 
family, friends, faith-based or other social networks, immediately 
available to prevent them from moving to an emergency shelter or 
another place described in paragraph (1) of the definition of 
``homeless'' in 24 CFR 576.2 and meets one or more of the following 
conditions:
    (1) Has moved because of economic reasons two or more times during 
the 60 days immediately preceding the application for assistance;
    (2) Is living in the home of another because of economic hardship;
    (3) Has been notified in writing that their right to occupy their 
current housing or living situation will be terminated within 21 days 
after the date of application for assistance;
    (4) Is constructively evicted from their current housing because of 
untenable conditions created by the landlord such as shutting off 
electricity and water or discriminatory acts;
    (5) Lives in a hotel or motel and the cost of the hotel or motel 
stay is not paid by charitable organizations or by Federal, State, or 
local government programs for low-income individuals;
    (6) Lives in a single-room occupancy or efficiency apartment unit 
in which there reside more than two persons or lives in a larger 
housing unit in which there reside more than 1.5 persons reside per 
room, as defined by the U.S. Census Bureau;
    (7) Is exiting a publicly funded institution, or system of care 
(such as a health-care facility, a mental health facility, foster care 
or other youth facility, or correction program or institution);
    (8) Is fleeing, or is attempting to flee domestic violence, dating 
violence, sexual assault, stalking, or other dangerous or life-
threatening conditions that relate to violence against the individual, 
including a child, that has either taken place within the individual's 
primary nighttime residence or has made the individual afraid to return 
to their primary nighttime residence; or
    (9) Otherwise lives in housing that has characteristics associated 
with instability and an increased risk for homelessness.


Sec.  79.20  Legal services.

    Allowable legal services covered under this Grant Program are 
limited to the following:
    (a) Legal services related to housing, including eviction defense, 
representation in landlord-tenant cases, and representation in 
foreclosure cases.
    (b) Legal services relating to family law, including assistance in 
court proceedings for child support and custody, divorce, estate 
planning, and family reconciliation.
    (c) Legal services relating to income support, including assistance 
in obtaining public benefits.
    (d) Legal services relating to criminal defense, including defense 
in matters symptomatic of homelessness, such as outstanding warrants, 
fines, driver's license revocation, and citations. To reduce recidivism 
and facilitate the overcoming of reentry obstacles in employment or 
housing, covered legal services relating to criminal defense also 
include legal assistance with requests to expunge or seal a criminal 
record.
    (e) Legal services relating to requests to upgrade the 
characterization of a discharge or dismissal of a former member of the 
Armed Forces under 10 U.S.C. 1553.
    (f) Other covered legal services as determined appropriate by the 
Secretary, including:
    (1) Legal assistance with protective orders and other matters 
related to domestic or intimate partner violence.
    (2) Access to health care.
    (3) Consumer law matters, such as debt collection, garnishments, 
usury, fraud, deceit, and financial exploitation.
    (4) Employment law matters.
    (5) The unmet legal needs of male and female veterans in VA's 
annual Community Homelessness Assessment, Local Education and 
Networking Groups (CHALENG) survey for the grant award year.


Sec.  79.25  Applications for legal services grants.

    (a) To apply for a legal services grant, an applicant must submit 
to VA a complete legal services grant application package, as described 
in the NOFO. A complete legal services grant application package 
includes the following:
    (1) A description of the legal services to be provided by the 
applicant and the identified need for such legal services among 
eligible veterans;
    (2) A description of how the applicant will ensure that services 
are provided to eligible veterans, including women veterans;
    (3) A description of the characteristics of eligible veterans who 
will receive legal services provided by the applicant;
    (4) An estimate with supporting documentation of the number of 
eligible veterans, including an estimate of the number of eligible 
women veterans, who will receive legal services provided by the 
applicant;
    (5) A plan for how the applicant will use at least ten percent of 
the grant funds to serve eligible women veterans;
    (6) Documentation describing the experience of the applicant and 
any identified subcontractors in providing legal services to eligible 
veterans;
    (7) Documentation relating to the applicant's ability to coordinate 
with any identified subcontractors;
    (8) Documentation of the applicant's capacity to effectively 
administer a grant under this section that describes the applicant's:
    (i) Accounting practices and financial controls;
    (ii) Capacity for data collection and reporting required under this 
part; and
    (iii) Experience administering other Federal, State, or county 
grants similar to the Grant Program under this part.
    (9) Documentation of the managerial capacity of the applicant to:
    (i) Coordinate the provision of legal services by the applicant or 
by other organizations on a referral basis;
    (ii) Assess continuously the needs of eligible veterans for legal 
services;

[[Page 33043]]

    (iii) Coordinate the provision of legal services with services 
provided by VA;
    (iv) Customize legal services to the needs of eligible veterans; 
and
    (v) Comply with and implement the requirements of this part 
throughout the term of the legal services grant.
    (10) Documentation that demonstrates that adequate financial 
support will be available to carry out the legal services for which the 
grant is sought consistent with the application; and
    (11) Any additional information as deemed appropriate by VA.
    (b) Subject to funding availability, grantees may submit an 
application for renewal of a legal services grant if the grantee's 
program will remain substantially the same. To apply for renewal of a 
legal services grant, a grantee must submit to VA a complete legal 
services grant renewal application package, as described in the NOFO.
    (c) VA may request in writing that an applicant or grantee, as 
applicable, submit other information or documentation relevant to the 
legal services grant application.


Sec.  79.30  Threshold requirements prior to scoring legal services 
grant applicants.

    VA will only score applicants that meet the following threshold 
requirements:
    (a) The application is filed within the time period established in 
the NOFO, and any additional information or documentation requested by 
VA under Sec.  79.25(c) is provided within the time frame established 
by VA;
    (b) The application is completed in all parts;
    (c) The activities for which the legal services grant is requested 
are eligible for funding under this part;
    (d) The applicant's prospective participants are eligible to 
receive legal services under this part;
    (e) The applicant agrees to comply with the requirements of this 
part;
    (f) The applicant does not have an outstanding obligation to the 
Federal Government that is in arrears and does not have an overdue or 
unsatisfactory response to an audit; and
    (g) The applicant is not in default by failing to meet the 
requirements for any previous Federal assistance.


Sec.  79.35  Scoring criteria for legal services grant applicants.

    VA will score applicants who are applying for a legal services 
grant VA will set forth specific point values to be awarded for each 
criterion in the NOFO. VA will use the following criteria to score 
these applicants:
    (a) VA will award points based on the background, qualifications, 
experience, and past performance, of the applicant, and any 
subcontractors identified by the applicant in the legal services grant 
application, as demonstrated by the following:
    (1) Background and organizational history. (i) Applicant's, and any 
identified subcontractors', background and organizational history are 
relevant to providing legal services.
    (ii) Applicant, and any identified subcontractors, maintain 
organizational structures with clear lines of reporting and defined 
responsibilities.
    (iii) Applicant, and any identified subcontractors, have a history 
of complying with agreements and not defaulting on financial 
obligations.
    (2) Organization and staff qualifications. (i) Applicant, and any 
identified subcontractors, have experience working with veterans or 
individuals who are homeless, at risk for homelessness, or who have 
very low income, as defined under this part.
    (ii) Applicant, and any identified subcontractors, have experience 
providing legal services, including providing such services to 
veterans, or individuals who are homeless, at risk for homelessness or 
who have very low income.
    (iii) Applicant, and any identified subcontractors, have or plan to 
hire staff, who are qualified to administer legal services, and as 
applicable, are in good standing as a member of the applicable State 
bar.
    (iv) Applicant's staff, and any identified subcontractors' staff, 
have experience administering programs similar to the Grant Program 
under this part.
    (b) VA will award points based on the applicant's program concept 
and legal services plan, as demonstrated by the following:
    (1) Need for the program. (i) Applicant has shown a need amongst 
eligible veterans in the area or community where the program will be 
based.
    (ii) Applicant understands the legal services needs unique to 
eligible veterans in the area or community where the program will be 
based.
    (2) Outreach and screening plan. (i) Applicant has a feasible 
outreach and referral plan to identify and assist eligible veterans in 
need of legal services.
    (ii) Applicant has a plan to process and receive legal services 
referrals for eligible veterans.
    (iii) Applicant has a plan to assess and accommodate the needs of 
referred eligible veterans.
    (3) Program concept. (i) Applicant's program concept, size, scope, 
and staffing plan are feasible.
    (ii) Applicant's program is designed to meet the legal needs of 
eligible veterans in the area or community where the program will be 
based.
    (4) Program implementation timeline. (i) Applicant's program will 
be implemented in a timely manner and legal services will be delivered 
to eligible veterans as quickly as possible and within a specified 
timeline.
    (ii) Applicant has a hiring plan in place to meet the applicant's 
program timeline or has existing staff to meet such timeline.
    (5) Collaboration and communication with VA. Applicant has a plan 
to coordinate outreach and services with local VA facilities.
    (6) Ability to meet VA's requirements, goals, and objectives for 
the grant program. Applicant is committed to ensuring that its program 
meets VA's requirements, goals, and objectives for the Grant Program as 
identified in the NOFO.
    (7) Capacity to undertake program. Applicant has sufficient 
capacity, including staff resources, to undertake the program.
    (c) VA will award points based on the applicant's quality assurance 
and evaluation plan, as demonstrated by the following:
    (1) Program evaluation. Applicant has created clear, realistic, and 
measurable metrics that align with the Grant Program's aim of 
addressing the legal needs of eligible veterans and through which the 
applicant's program performance can be continually evaluated.
    (2) Monitoring. (i) Applicant has adequate controls in place to 
regularly monitor the program, including any subcontractors, for 
compliance with all applicable laws, regulations, and guidelines.
    (ii) Applicant has adequate financial and operational controls in 
place to ensure the proper use of legal services grant funds.
    (iii) Applicant has a plan for ensuring that the applicant's staff 
and any subcontractors are appropriately trained and comply with the 
requirements of this part.
    (3) Remediation. Applicant has a plan or establishes a system for 
remediating non-compliant aspects of the program if and when they are 
identified.
    (4) Management and reporting. Applicant's program management team 
has the capability and a system in place to provide to VA timely and 
accurate reports at the frequency set by VA.

[[Page 33044]]

    (d) VA will award points based on the applicant's financial 
capability and plan, as demonstrated by the following:
    (1) Organizational finances. Applicant, and any identified 
subcontractors, are financially stable.
    (2) Financial feasibility of program. (i) Applicant has a realistic 
plan for obtaining all funding required to operate the program for the 
period of the legal services grant.
    (ii) Applicant's program is cost-effective and can be effectively 
implemented on-budget.
    (e) VA will award points based on the applicant's area or community 
linkages and relations, as demonstrated by the following:
    (1) Area or community linkages. Applicant has a plan for developing 
or has existing linkages with Federal (including VA), State, local, and 
tribal governments, agencies, and private entities for the purposes of 
providing additional legal services to eligible veterans.
    (2) Past working relationships. Applicant (or applicant's staff), 
and any identified subcontractors (or subcontractors' staff), have 
fostered successful working relationships and linkages with public and 
private organizations providing legal and non-legal supportive services 
to veterans who are also in need of services similar to those covered 
under the Grant Program.
    (3) Local presence and knowledge. (i) Applicant has a presence in 
the area or community to be served by the applicant.
    (ii) Applicant understands the dynamics of the area or community to 
be served by the applicant.
    (4) Integration of linkages and program concept. Applicant's 
linkages to the area or community to be served by the applicant enhance 
the effectiveness of the applicant's program.


Sec.  79.40  Selection of grantees.

    VA will use the following process to select applicants to receive 
legal services grants:
    (a) VA will score all applicants that meet the threshold 
requirements set forth in Sec.  79.30 using the scoring criteria set 
forth in Sec.  79.35.
    (b) VA will group applicants within the applicable funding 
priorities if funding priorities are set forth in the NOFO.
    (c) VA will rank those applicants who receive at least the minimum 
amount of total points and points per category set forth in the NOFO, 
within their respective funding priority group, if any. The applicants 
will be ranked in order from highest to lowest scores, within their 
respective funding priority group, if any.
    (d) VA will use the applicant's ranking as the primary basis for 
selection for funding. However, VA will also use the following 
considerations to select applicants for funding:
    (1) VA will give preference to applicants that have the 
demonstrated ability to provide the provision of legal services 
eligible individuals who are homeless, at risk for homelessness or have 
very low income, as defined by this part.
    (2) To the extent practicable, VA will ensure that legal services 
grants are equitably distributed across geographic regions, including 
rural communities, trust lands, Native Americans, and tribal 
organizations.
    (3) VA will give preference to applicants with a demonstrated focus 
on women veterans as set forth in the NOFO.
    (e) Subject to paragraph (d) of this section, VA will fund the 
highest-ranked applicants for which funding is available, within the 
highest funding priority group, if any. If funding priorities have been 
established, to the extent funding is available and subject to 
paragraph (d) of this section, VA will select applicants in the next 
highest funding priority group based on their rank within that group.
    (f) If an applicant would have been selected but for a procedural 
error committed by VA, VA may select that applicant for funding when 
sufficient funds become available if there is no material change in the 
information that would have resulted in the applicant's selection. A 
new application would not be required.


Sec.  79.45  Scoring criteria for grantees applying for renewal of 
legal services grants.

    VA will score applicants who are applying for a renewal of a legal 
services grant. VA will set forth specific point values to be awarded 
for each criterion in the NOFO. VA will use the following criteria to 
score grantees applying for renewal of a legal services grant:
    (a) VA will award points based on the success of the grantee's 
program, as demonstrated by the following:
    (1) Participants were satisfied with the legal services provided by 
the grantee.
    (2) The grantee delivered legal services to participants in a 
timely manner.
    (3) The grantee implemented the program by developing and 
sustaining relationships with community partners to refer veterans in 
need of legal services.
    (4) The grantee was effective in conducting outreach to eligible 
veterans, including specifically to women veterans, and increased 
engagement of eligible veterans seeking legal services provided by the 
grantee.
    (b) VA will award points based on the cost effectiveness of the 
grantee's program, as demonstrated by the following:
    (1) The cost per participant was reasonable.
    (2) The grantee's program was effectively implemented within 
budget.
    (c) VA will award points based on the extent to which the grantee 
complied with the Grant Program's goals and requirements, as 
demonstrated by the following:
    (1) The grantee's program was administered in accordance with VA's 
goals for the Grant Program as described in the NOFO.
    (2) The grantee's program was administered in accordance with all 
applicable laws, regulations, and guidelines.
    (3) The grantee's program was administered in accordance with the 
grantee's legal services grant agreement.


Sec.  79.50  Selecting grantees for renewal of legal services grants.

    VA will use the following process to select grantees applying for 
renewal of legal services grants:
    (a) So long as the grantee continues to meet the threshold 
requirements set forth in Sec.  79.30, VA will score the grantee using 
the scoring criteria set forth in Sec.  79.45.
    (b) VA will rank those grantees who receive at least the minimum 
amount of total points and points per category set forth in the NOFO. 
The grantees will be ranked in order from highest to lowest scores.
    (c) VA will use the grantee's ranking as the basis for selection 
for funding. VA will fund the highest-ranked grantees for which funding 
is available.
    (d) At its discretion, VA may award any non-renewed funds to an 
applicant or existing grantee. If VA chooses to award non-renewed funds 
to an applicant or existing grantee, funds will be awarded as follows:
    (1) VA will first offer to award the non-renewed funds to the 
applicant or grantee with the highest grant score under the relevant 
NOFO that applies for, or is awarded a renewal grant in, the same 
community as, or a proximate community to, the affected community. Such 
applicant or grantee must have the capacity and agree to provide prompt 
services to the affected community. For the purposes of this section, 
the relevant NOFO is the most recently published

[[Page 33045]]

NOFO which covers the geographic area that includes the affected 
community, or for multi-year grant awards, the NOFO for which the 
grantee, who is offered the additional funds, received the multi-year 
award.
    (2) If the first such applicant or grantee offered the non-renewed 
funds refuses the funds, VA will offer to award the funds to the next 
highest-ranked such applicant or grantee, per the criteria in paragraph 
(d)(1) of this section, and continue on in rank order until the non-
renewed funds are awarded.
    (e) If a grantee would have been selected but for a procedural 
error committed by VA, VA may select that grantee for funding when 
sufficient funds become available if there is no material change in the 
information that would have resulted in the grantee's selection. A new 
application would not be required.


Sec.  79.55  General operation requirements.

    (a) Eligibility documentation. (1) Prior to providing legal 
services, grantees must verify and document each veteran's eligibility 
for legal services and classify the veteran based on the eligible 
veteran criteria as set forth in Sec.  79.15.
    (2) Once the grantee initiates legal services, the grantee will 
continue to provide legal services to the participant through 
completion of the legal services so long as the participant continues 
to meet the eligibility criteria set forth in Sec.  79.15.
    (3) If a grantee finds at any point in the grant award period that 
a participant is ineligible to receive legal services under this part, 
or the provider is unable to meet the legal needs of that participant, 
the grantee must document the reason for the participant's 
ineligibility or the grantee's inability to provide legal services and 
provide the veteran information on other available programs or 
resources or provide a referral to another legal services organization 
that is able to meet the veteran's needs.
    (b) Legal services documentation. For each participant who receives 
legal services from the grantee, the grantee must document the legal 
services provided, how such services were provided, the duration of the 
services provided, any goals for the provision of such services, and 
measurable outcomes of the legal services provided as determined by the 
Secretary, such as whether the participant's legal issue was resolved.
    (c) Confidentiality. Grantees must maintain the confidentiality of 
records kept in connection to legal services provided to participants. 
Grantees that provide legal services must establish and implement 
procedures to ensure the confidentiality of:
    (1) Records pertaining to any participant, and
    (2) The address or location where the legal services are provided.
    Such confidentiality should be consistent with the grantee's State 
bar rules on confidentiality in an attorney-client relationship.
    (d) Notifications to participants. Prior to initially providing 
legal services to a participant, the grantee must notify each 
participant of the following:
    (1) The legal services are being paid for, in whole or in part, by 
VA;
    (2) The legal services available to the participant through the 
grantee's program; and
    (3) Any conditions or restrictions on the receipt of legal services 
by the participant.
    (e) Assessment of funds. Grantees must regularly assess how legal 
services grant funds can be used in conjunction with other available 
funds and services to ensure continuity of program operations and to 
assist participants.
    (f) Administration of legal services grants. Grantees must ensure 
that legal services grants are administered in accordance with the 
requirements of this part, the legal services grant agreement, and 
other applicable laws and regulations. Grantees are responsible for 
ensuring that any subcontractors carry out activities in compliance 
with this part.


Sec.  79.60  Fee prohibition.

    Grantees must not charge a fee to participants for providing legal 
services that are funded with amounts from a legal services grant under 
this part.


Sec.  79.65  Notice of Funding Opportunity (NOFO).

    When funds are available for legal services grants, VA will publish 
a NOFO in the Federal Register and on grants.gov. The notice will 
identify:
    (a) The location for obtaining legal services grant applications;
    (b) The date, time, and place for submitting completed legal 
services grant applications;
    (c) The estimated amount and type of legal services grant funding 
available, including the maximum grant funding available per award;
    (d) Any priorities for or exclusions from funding to meet the 
statutory mandates of 38 U.S.C. 2022A and VA goals for the Grant 
Program;
    (e) The length of term for the legal services grant award;
    (f) Specific point values to be awarded for each criterion listed 
in Sec. Sec.  79.35 and 79.45;
    (g) The minimum number of total points and points per category that 
an applicant or grantee, as applicable, must receive in order for a 
legal services grant to be funded;
    (h) Any maximum uses of legal services grant funds for specific 
legal services;
    (i) The timeframes and manner for payments under the legal services 
grant; and
    (j) Other information necessary for the legal services grant 
application process as determined by VA, including the requirements, 
goals, and objectives of the Grant Program, and how the preference 
under Sec.  79.40(d)(3) may be met.


Sec.  79.70  Legal services grant agreements.

    (a) After an applicant is selected for a legal services grant in 
accordance with Sec.  79.40, VA will draft a legal services grant 
agreement to be executed by VA and the grantee. Upon execution of the 
legal services grant agreement, VA will obligate legal services grant 
funds to cover the amount of the approved legal services grant, subject 
to the availability of funding. The legal services grant agreement will 
provide that the grantee agrees, and will ensure that each 
subcontractor agrees, to:
    (1) Operate the program in accordance with the provisions of this 
part and the applicant's legal services grant application;
    (2) Comply with such other terms and conditions, including 
recordkeeping and reports for program monitoring and evaluation 
purposes, as VA may establish for purposes of carrying out the Grant 
Program, in an effective and efficient manner; and
    (3) Provide such additional information as deemed appropriate by 
VA.
    (b) After a grantee is selected for renewal of a legal services 
grant in accordance with Sec.  79.50, VA will draft a legal services 
grant agreement to be executed by VA and the grantee. Upon execution of 
the legal services grant agreement, VA will obligate legal services 
grant funds to cover the amount of the approved legal services grant, 
subject to the availability of funding. The legal services grant 
agreement will contain the same provisions described in paragraph (a) 
of this section.
    (c) No funds provided under this part may be used to replace 
Federal, State, tribal, or local funds previously used, or designated 
for use, to assist eligible veterans.

[[Page 33046]]

Sec.  79.75  Program or budget changes and corrective action plans.

    (a) A grantee must submit to VA a written request to modify a legal 
services grant for any proposed significant change that will alter its 
legal services grant program. If VA approves such change, VA will issue 
a written amendment to the legal services grant agreement. A grantee 
must receive VA's approval prior to implementing a significant change. 
Significant changes include, but are not limited to, a change in the 
grantee or any subcontractors identified in the legal services grant 
agreement; a change in the area or community served by the grantee; 
additions or deletions of legal services provided by the grantee; a 
change in category of eligible veterans to be served; and a change in 
budget line items that are more than 10 percent of the total legal 
services grant award.
    (1) VA's approval of changes is contingent upon the grantee's 
amended application retaining a sufficient rank to have been 
competitively selected for funding in the year that the application was 
granted.
    (2) Each legal services grant modification request must contain a 
description of the revised proposed use of legal services grant funds.
    (b) VA may require that the grantee initiate, develop, and submit 
to VA for approval a Corrective Action Plan (CAP) if, on a quarterly 
basis, actual legal services grant expenditures vary from the amount 
disbursed to a grantee for that same quarter or actual legal services 
grant activities vary from the grantee's program description provided 
in the legal services grant agreement.
    (1) The CAP must identify the expenditure or activity source that 
has caused the deviation, describe the reason(s) for the variance, 
provide specific proposed corrective action(s), and provide a timetable 
for accomplishment of the corrective action.
    (2) After receipt of the CAP, VA will send a letter to the grantee 
indicating that the CAP is approved or disapproved. If disapproved, VA 
will make beneficial suggestions to improve the proposed CAP and 
request resubmission or take other actions in accordance with this 
part.
    (c) Grantees must inform VA in writing of any key personnel changes 
(e.g., new executive director, grant program director, or chief 
financial officer) and grantee address changes within 30 days of the 
change.
    (The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-TBD.)


Sec.  79.80  Faith-based organizations.

    (a) Organizations that are faith-based are eligible, on the same 
basis as any other organization, to participate in the Grant Program 
under this part. Decisions about awards of Federal financial assistance 
must be free from political interference or even the appearance of such 
interference and must be made on the basis of merit, not on the basis 
of religion or religious belief or lack thereof.
    (b)(1) No organization may use direct financial assistance from VA 
under this part to pay for explicitly religious activities such as 
religious worship, instruction, or proselytization; or equipment or 
supplies to be used for any of those activities.
    (2) References to financial assistance are deemed to be references 
to direct Federal financial assistance, unless the referenced 
assistance meets the definition of indirect Federal financial 
assistance in this part.
    (c) Organizations that engage in explicitly religious activities, 
such as worship, religious instruction, or proselytization, must offer 
those services separately in time or location from any programs or 
services funded with direct financial assistance from VA under this 
part, and participation in any of the organization's explicitly 
religious activities must be voluntary for the participants of a 
program or service funded by direct financial assistance from VA under 
this part.
    (d) A faith-based organization that participates in the Grant 
Program under this part will retain its independence from Federal, 
State, or local governments and may continue to carry out its mission, 
including the definition, practice and expression of its religious 
beliefs, provided that it does not use direct financial assistance from 
VA under this part to support any explicitly 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 concealing, 
removing, or altering religious art, icons, scripture, or other 
religious symbols. In addition, a VA-funded faith-based 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 the Grant Program shall 
not, in providing legal services, discriminate against a program 
participant or prospective participant regarding legal services 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 explicitly religious activities set forth in this 
section do not apply where VA funds are provided to faith-based 
organizations through indirect Federal financial assistance. A faith-
based organization may receive such funds as the result of a 
participant's genuine and independent choice if, for example, a 
participant redeems a voucher, coupon, or certificate, allowing the 
participant to direct where funds are to be paid, or a similar funding 
mechanism provided to that participant and designed to give that 
participant a choice among providers.


Sec.  79.85  Visits to monitor operations and compliance.

    (a) VA has the right, at all reasonable times, to make visits to 
all grantee locations where a grantee is using legal services grant 
funds in order to review grantee accomplishments and management control 
systems and to provide such technical assistance as may be required. VA 
may conduct inspections of all program locations and records of a 
grantee at such times as are deemed necessary to determine compliance 
with the provisions of this part. If a grantee delivers services in a 
participant's home, or at a location away from the grantee's place of 
business, VA may accompany the grantee. If the grantee's visit is to 
the participant's home, VA will only accompany the grantee with the 
consent of the participant. If any visit is made by VA on the premises 
of the grantee or a subcontractor under the legal services grant, the 
grantee must provide, and must require its subcontractors to provide, 
all reasonable facilities and assistance for the safety and convenience 
of the VA representatives in the performance of their duties. All 
visits and evaluations will be performed in such a manner as will not 
unduly delay services.
    (b) The authority to inspect carries with it no authority over the 
management or control of any applicant or grantee under this part.

[[Page 33047]]

Sec.  79.90  Financial management and administrative costs.

    (a) Grantees must comply with applicable requirements of the 
Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements for Federal Awards under 2 CFR part 200.
    (b) Grantees must use a financial management system that provides 
adequate fiscal control and accounting records and meets the 
requirements set forth in 2 CFR part 200.
    (c) Payment up to the amount specified in the legal services grant 
must be made only for allowable, allocable, and reasonable costs in 
conducting the work under the legal services grant. The determination 
of allowable costs must be made in accordance with the applicable 
Federal Cost Principles set forth in 2 CFR part 200.
    (d) Costs for administration by a grantee must not exceed 10 
percent of the total amount of the legal services grant. Administrative 
costs will consist of all costs associated with the management of the 
program, including administrative costs of subcontractors.


Sec.  79.95  Grantee reporting requirements.

    (a) VA may require grantees to provide, in such form as may be 
prescribed, such reports or answers in writing to specific questions, 
surveys, or questionnaires as VA determines necessary to carry out the 
Grant Program.
    (b) At least once per year, or at the frequency set by VA, each 
grantee must submit to VA a report containing information relating to 
operational effectiveness; fiscal responsibility; legal services grant 
agreement compliance; and legal and regulatory compliance. This report 
must include a breakdown of how the grantee used the legal services 
grant funds; the number of participants assisted; information on each 
participant's gender, age, race, and service era; a description of the 
legal services provided to each participant; and any other information 
that VA requests.
    (c) VA may request additional reports to allow VA to fully assess 
the provision legal services under this part.
    (d) Grantees must relate financial data to performance data and 
develop unit cost information whenever practical.
    (e) All pages of the reports must cite the assigned legal services 
grant number and be submitted in a timely manner as set forth in the 
grant agreement.
    (f) Grantees must provide VA with consent to post information from 
reports on the internet and use such information in other ways deemed 
appropriate by VA. Grantees must clearly redact information that is 
confidential based on attorney-client privilege, unless that privilege 
has been waived by the client.
    (The Office of Management and Budget has approved the information 
collection provisions in this section under control number 2900-TBD.)


Sec.  79.100  Recordkeeping.

    Grantees must ensure that records are maintained for at least a 3-
year period to document compliance with this part. Grantees must 
produce such records at VA's request.


Sec.  79.105  Technical assistance.

    VA will provide technical assistance, as necessary, to applicants 
and grantees to meet the requirements of this part. Such technical 
assistance will be provided either directly by VA or through contracts 
with appropriate public or non-profit private entities.


Sec.  79.110  Withholding, suspension, deobligation, termination, and 
recovery of funds by VA.

    VA will enforce this part through such actions as may be 
appropriate. Appropriate actions include withholding, suspension, 
deobligation, termination, recovery of funds by VA, and actions in 
accordance with 2 CFR part 200.


Sec.  79.115  Legal services grant closeout procedures.

    Legal services grants will be closed out in accordance with 2 CFR 
part 200.

[FR Doc. 2022-10930 Filed 5-31-22; 8:45 am]
BILLING CODE 8320-01-P