[Federal Register Volume 73, Number 88 (Tuesday, May 6, 2008)]
[Notices]
[Pages 25026-25028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 08-1220]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5213-N-01]


Section 8 Housing Choice Vouchers: Implementation of the HUD-VA 
Supportive Housing Program

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing.

ACTION: Notice.

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SUMMARY: This Notice sets forth the policies and procedures for the 
administration of tenant-based Section 8 Housing Choice Voucher (HCV) 
rental assistance under the HUD-Veterans Affairs Supportive Housing 
(HUD-VASH) program administered by local public housing agencies (PHAs) 
that have partnered with local Veterans Affairs (VA) medical centers.

DATES: Effective date: May 6, 2008.

FOR FURTHER INFORMATION CONTACT: David A. Vargas, Director, Office of 
Housing Voucher Programs, Department of Housing and Urban Development, 
451 Seventh Street, SW., Room 4228, Washington, DC, 20410, telephone 
number (202) 708-2815. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION:

I. Background
II. Special Rules for the HUD-VASH Voucher Program
    a. Family Eligibility and Selection
    b. Income Eligibility
    c. Initial Term of the HCV
    d. Initial Lease Term
    e. Ineligible Housing
    f. Mobility and Portability of HUD-VASH Vouchers
    g. Case Management Requirements
    h. Turnover of HUD-VASH Vouchers
    i. Moving-to-Work (MTW) Agencies
    j. Project-based Assistance
    k. Section Eight Management Assessment Program (SEMAP)
III. Reporting Requirements

I. Background

    Seventy-five million dollars in Housing Choice Voucher (HCV) 
program funding will provide rental assistance under a supportive 
housing program for homeless veterans authorized by section 8(o)(19) of 
the United States Housing Act of 1937, 42 U.S.C. 1437f(o)(19). The 
initiative is known as the HUD-VASH program and was authorized pursuant 
to Division K, Title II, of The Consolidated Appropriations Act, 2008 
(Pub. L. 110-161) (``2008 Appropriation Act'') enacted on December 26, 
2007 (see proviso (7) under the heading ``Tenant-Based Rental 
Assistance''). The HUD-VASH program combines HUD HCV rental assistance 
for homeless veterans with case management and clinical services 
provided by the Department of Veterans Affairs (VA) at its medical 
centers and in the community. Ongoing VA case management, health, and 
other supportive services will be made available to homeless veterans 
at as many as 132 VA Medical Center (VAMC) supportive services sites 
across the nation.
    The 2008 Appropriation Act required HUD to ``make such funding 
available, notwithstanding section 204 (competition provision) of this 
title, to public housing agencies (PHAs) that partner with eligible VA 
Medical Centers or other entities as designated by the Secretary of the 
Department of Veterans Affairs, based on geographical need for such 
assistance as identified by the Secretary of the Department of Veterans 
Affairs, public housing agency administrative performance, and other 
factors as specified by the Secretary of Housing and Urban Development 
in consultation with the Secretary of the Department of Veterans 
Affairs.''
    Based on this language, the VA, in consultation with HUD, 
identified 132 VAMCs that will participate with the program. In doing 
so, the VA took into account the population of homeless veterans 
needing services in the area, the number of homeless veterans served by 
the homeless programs at each VAMC during Fiscal Years 2006 and FY 
2007, geographic distribution, and VA case management resources. There 
will be at least one site in each of the 50 states and in the District 
of Columbia and Puerto Rico.
    HUD, in consultation with the VA, and in consideration of a PHA's 
administrative performance, identified eligible PHAs located in the 
jurisdiction of the VAMCs and invited them to apply for HUD-VASH 
vouchers. The number of HUD-VASH vouchers awarded to each PHA was 
determined by HUD and the VA. Approximately 35 rental vouchers were 
awarded for each professional, full-time HUD-VASH case manager at the 
local VAMC. HUD-VASH vouchers may be reallocated in the future based on 
need and usage. A PHA that participates in the HUD-VASH program must 
partner with their VASH VAMC. Additional information on program 
requirements and procedures may be found on HUD's Web site at 
www.HUD.gov.

II. Special Rules for the HUD-VASH Voucher Program

    This section sets forth the design features of the HUD-VASH 
vouchers, including the eligibility of families, portability, case 
management, and the turnover of these vouchers. The 2008 Appropriation 
Act states ``that the Secretary of Housing and Urban Development may 
waive, or specify alternative requirements for (in consultation with 
the Secretary of the Department of Veterans Affairs), any provision of 
any statute or regulation that the Secretary of Housing and Urban 
Development administers in connection with the use of funds made 
available under this paragraph (except for requirements related to fair 
housing, nondiscrimination, labor standards, and the environment) upon 
a finding by the Secretary that any such waivers or alternative 
requirements are necessary for the effective delivery and 
administration of such voucher assistance: Provided further, That 
assistance made available under this paragraph shall continue to remain 
available for homeless veterans upon turnover.''
    This notice outlines, below, the waivers or alternative 
requirements determined by the Secretary to be necessary for the 
effective delivery and administration of the HUD-VASH program. These 
waivers or alternative requirements are exceptions to the normal HCV 
requirements, which otherwise govern the provision of HUD-VASH 
assistance. In addition, a PHA may request additional statutory or 
regulatory waivers that it determines are necessary for the effective 
delivery and administration of the program. These requests may be 
submitted to the Secretary for review and decision through the 
Assistant Secretary for Public and Indian Housing.
    HUD-VASH vouchers under this part are administered in accordance 
with the HCV tenant-based rental assistance regulations set forth at 24 
CFR part 982. In the HCV program, the PHA pays monthly rental subsidies 
so that eligible families can afford decent, safe, and sanitary 
housing. HUD provides housing assistance funds to the PHA, as well as 
funds for PHA administration of the program.
    Under the HCV tenant-based program, families select and rent units 
that meet program housing-quality standards. If the PHA approves a 
family's unit and tenancy, the PHA contracts with the owner to make 
rent subsidy payments (housing assistance payments) directly

[[Page 25027]]

to the owner on behalf of the family on a monthly basis. The family 
enters into a lease with the owner and pays its share of the rent to 
the owner in accordance with the lease. The housing assistance payment 
(HAP) contract between the PHA and the owner covers only a single unit 
and a specific assisted family. If the family moves out of the leased 
unit, the HAP contract with the owner terminates. The family may 
generally move to another unit with continued assistance so long as the 
family is complying with program requirements.
    Unless expressly noted below, all regulatory requirements and HUD 
directives regarding the HCV tenant-based program are applicable to 
HUD-VASH vouchers, including the use of all HUD-required contracts and 
other forms. The PHA's local discretionary policies adopted in the 
PHA's written administrative plan apply to HUD-VASH vouchers, unless 
such local policy conflicts with the requirements of the HUD-VASH 
vouchers outlined below.
    PHAs are required to maintain records that allow for the easy 
identification of families receiving HUD-VASH vouchers. PHAs must 
identify these families in the Public and Indian Housing Information 
Center (PIC). This record-keeping will help ensure that, in accordance 
with appropriations renewal language, HUD-VASH vouchers that are in use 
will remain available for homeless veterans upon turnover.
a. Family Eligibility and Selection
    HUD-VASH eligible families are homeless veterans. The 2008 
Appropriation Act provides for statutory or regulatory waivers or 
alternative requirements upon a finding by the Secretary that such 
waivers or alternatives are necessary for the effective administration 
and delivery of voucher assistance. The December 17, 2007, Explanatory 
Statement for the 2008 Appropriation Act provides, ``The Appropriations 
Committees expect that these vouchers will be made available to all 
homeless veterans, including recently returning veterans' (153 Cong. 
Rec. H16514 (daily ed., Dec. 17, 2007)). HUD, through its undersigned 
Secretary, finds the following waivers necessary to effectively 
administer and deliver the program to all veterans in accordance with 
Congressional intent.
    Section 8(o)(19) of the United States Housing Act of 1937 (USHA of 
1937), which requires homeless veterans to have chronic mental 
illnesses or chronic substance use disorders with required treatment of 
these disorders as a condition of receipt of HUD-VASH assistance, is 
waived.
    The VAMC will refer HUD-VASH eligible families to the PHA for the 
issuance of vouchers. Written documentation of these referrals must be 
maintained in the tenant file at the PHA. Therefore, the PHA will not 
have the authority to maintain a waiting list or apply local 
preferences for HUD-VASH vouchers. Accordingly, section 8(o)(6)(A) of 
the USHA of 1937, 42 U.S.C. 1437f(o)(6)(A), in regard to preferences, 
has been waived to provide for the effective administration of the 
program. In addition, 24 CFR 982.202, 982.204, and 982.207, relating to 
applicant selection from the waiting list and local preferences, are 
also waived. Sections 982.203, 982.205, and 982.206 regarding special 
admissions, cross-listing of the waiting list, and opening and closing 
the waiting list do not apply to the HUD-VASH program.
    The VAMC will screen all families in accordance with its screening 
criteria. By agreeing to administer the HUD-VASH program, the PHA is 
relinquishing its authority to determine the eligibility of families in 
accordance with regular HCV program rules and PHA policies. 
Specifically, under the HUD-VASH program, PHAs will not have the 
authority to screen potentially eligible families or deny assistance 
for any grounds permitted under 24 CFR 982.552 (broad denial for 
violations of HCV program requirements) and 982.553 (specific denial 
for criminals and alcohol abusers), with one exception. PHAs will still 
be required to prohibit admission if any member of the household is 
subject to a lifetime registration requirement under a state sex 
offender registration program. Accordingly, the Department is 
exercising its authority to waive 42 U.S.C. 1437d(s); 42 U.S.C. 
13661(a), (b), and (c); and 24 CFR Sections 982.552 and 982.553, with 
the exception of 982.553(a)(2)(i), which requires denial of admission 
to certain registered sex offenders.
    Civil rights requirements cannot be waived. The HUD-VASH program is 
administered in accordance with applicable Fair Housing requirements. 
These requirements prohibit discrimination on the basis of race, color, 
religion, sex, familial status, national origin, or disability. When 
disabled veterans are HUD-VASH recipients, HUD's reasonable 
accommodation standards apply.
b. Income Eligibility
    The PHA must determine income eligibility for HUD-VASH families in 
accordance with 24 CFR 982.201. Income targeting requirements of 
section 16(b) of the USHA of 1937, as well as 24 CFR 982.201(b)(2), do 
not apply for HUD-VASH families so that participating PHAs can 
effectively serve the eligible population specified in the 2008 
Appropriation Act; that is, homeless veterans, who may be at a variety 
of income levels. The PHA may, however, choose to include the admission 
of extremely low-income HUD-VASH families in its income targeting 
numbers for the fiscal year in which these families are admitted.
c. Initial Term of the HCV
    Recognizing the challenges that HUD-VASH participants may face with 
their housing search, HUD-VASH vouchers must have an initial search 
term of at least 120 days. Therefore, Sec.  982.303(a), which states 
that the initial search term must be at least 60 days, shall not apply, 
since the initial term must be at least 120 days. Any extensions, 
suspensions, and progress reports will remain under the policies in the 
PHA's administrative plan, but will apply after the minimum 120-day 
initial search term.
d. Initial Lease Term
    Under the HCV program, voucher participants must enter into an 
initial lease with the owner for one year, unless a shorter term would 
improve housing opportunities for the tenant and the shorter term is a 
prevailing market practice. To provide a greater range of housing 
opportunities for HUD-VASH voucher holders, initial leases may be less 
than 12 months; therefore, both section 8(o)(7)(A) of the USHA of 1937, 
42 U.S.C. 1437f(o)(7)(A), and 24 CFR 982.309(a)(2)(ii) are waived.
e. Ineligible Housing
    HUD-VASH families will be permitted to live on the grounds of a 
VAMC in units owned by the VA. Therefore, 24 CFR 982.352(a)(5), which 
prohibits units on the grounds of a medical, mental, or similar public 
or private institution, is waived for that purpose only.
f. Mobility and Portability of HUD-VASH Vouchers
    An eligible family issued a HUD-VASH voucher must receive case 
management services provided by the VAMC. Therefore, special mobility 
and portability procedures must be established. HUD-VASH participant 
families may reside only in those jurisdictional areas that are 
accessible to case management services as determined by the partnering 
VAMC. Since the VAMC will be identifying homeless veterans eligible to 
participate

[[Page 25028]]

in the HUD-VASH program, section 8(r)(1)(B)(i) of the USHA of 1937, 42 
U.S.C. 1437f(r)(1(B)(i), which restricts portability in cases where the 
family did not reside in the jurisdiction of the PHA at the time of 
application for HCV assistance, and 24 CFR 982.353(a), (b), and (c), 
which affects where a family can lease a unit with HCV assistance, do 
not apply.
(1) Portability Moves Where Case Management Is Provided by the Initial 
PHA's Partnering VAMC
    If the family initially leases up, or moves, under portability 
provisions, but the initial PHA's partnering VAMC will still be able to 
provide the necessary case management services due to its proximity to 
the partnering VAMC, the receiving PHA must process the move in 
accordance with the portability procedures of 24 CFR 982.355. However, 
since the initial PHA must maintain records on all HUD-VASH families 
receiving case management services from its partnering VAMC, receiving 
PHAs must bill the initial PHA. Therefore, 24 CFR 982.355(d), which 
gives the receiving PHA the option to absorb the family into its own 
HCV program or bill the initial PHA, is not applicable.
    When the receiving PHA completes the HUD-50058 under the scenarios 
above, the action type that must be recorded on line 2a is ``1'' for a 
new admission (a family that is new to the HCV program) or ``4'' for a 
portability move-in (a family that was previously leased up in the 
jurisdiction of the initial PHA). Whether the family is a new admission 
or portability move-in, in section 12 of the HUD-50058, line 12d is 
marked ``Y,'' 12e must be 0 since the family must be absorbed, and 12f 
must be left blank.
g. Case Management Requirements
    The VAMC responsibilities include: (1) The screening of homeless 
veterans to determine whether they meet the HUD-VASH program 
participation criteria established by the VA national office; (2) 
providing appropriate treatment and supportive services to potential 
HUD-VASH program participants, if needed, prior to PHA issuance of 
rental vouchers; (3) providing housing search assistance to HUD-VASH 
participants with rental vouchers; (4) identifying the social service 
and medical needs of HUD-VASH participants and providing, or ensuring 
the provision of, regular ongoing case management, outpatient health 
services, hospitalization, and other supportive services as needed 
throughout this initiative; and (5) maintaining records and providing 
information for evaluation purposes, as required by HUD and the VA.
    As a condition of HCV rental assistance, a HUD-VASH eligible family 
must receive the case management services noted above from the VAMC. 
Therefore, a HUD-VASH participant family's HCV assistance must be 
terminated for failure to participate, without good cause, in case 
management as verified by the VAMC. However, a VAMC determination that 
the participant family no longer requires case management is not 
grounds for termination of assistance. In such case, and at its option, 
the PHA may offer the family continued HCV assistance through one of 
its regular vouchers, to free up the HUD-VASH voucher for another 
eligible family referred by the VAMC.
h. Turnover of HUD-VASH Vouchers
    In accordance with the 2008 Appropriation Act, upon turnover, HUD-
VASH vouchers must be issued to eligible families as identified by the 
VAMC, as noted above.
i. Moving-To-Work (MTW) Agencies
    HUD-VASH vouchers must be administered in accordance with this 
Notice and are not eligible for fungibility under their MTW agreements. 
HUD-VASH vouchers must be reported on separately from vouchers under 
the agency's MTW Agreement.
j. Project-Based Assistance
    Although HUD-VASH vouchers are tenant-based rental assistance, the 
Department will consider, on a case-by-case basis, requests from the 
PHA (with the support of the VAMC) to project-base these vouchers in 
accordance with 24 CFR part 983.
k. Section Eight Management Assessment Program (SEMAP)
    Since leasing of HUD-VASH vouchers will be dependent on referrals 
from the VAMC, the unit months and budget authority associated with 
these vouchers will not be included in the SEMAP leasing indicator 
denominator. Therefore, 24 CFR 985.3(n)(1)(i) and (ii) are waived. 
However, utilization of these vouchers will be monitored separately 
through HUD systems.

III. Reporting Requirements

    A new code (VASH) has been established for use on line 2n of the 
Family Report (form HUD-50058), which provides for an indication if the 
family participates in ``other special programs.'' The information 
collection requested on HUD-50058 has been approved by the Office of 
Management and Budget (OMB) and given OMB control number 2577-0083. No 
person is required to respond to, nor shall any person be subject to a 
penalty for failure to comply with a collection of information subject 
to the requirements of the Paperwork Reduction Act (PRA), unless that 
collection displays a currently valid OMB control number. This code 
must remain on the HUD-50058 for the duration of the HUD-VASH family's 
participation in the program. The PHA that administers the HUD-VASH 
voucher on behalf of the family (initial or receiving PHA under 
portability) must enter and maintain this code on the HUD-50058.
    For any additional systems reporting requirements that may be 
established, HUD will provide further guidance.

    Dated: May 1, 2008.
Roy A. Bernardi,
Deputy Secretary.
[FR Doc. 08-1220 Filed 5-1-08; 4:00 pm]
BILLING CODE 4210-67-P