24514 Federal Register / Vol. 75, No. 86 / Wednesday, May 5, 2010 / Proposed Rules 

exception in the interests of patient 

care. Drug or supply samples may not be 

provided to VA staff for their personal 

use. 

(3) Donations of food. Sales 

representatives may not provide food 

items of any type or any value to VA 

staff (including volunteers and without 

compensation employees) or bring food 

items into VA medical facilities for use 

by non-VA staff (e.g., employees of 

affiliates). This constraint applies to all 

sales representatives who have business 

relationships with VA Clinical Services. 

(f) Conduct of sales representatives. In 

addition to any other rules in this 

section, sales representatives (i.e., 

promoters) of drugs and drug-related 

supplies must conform to the following: 

(1) Sales representatives must provide 

accurate information. Sales 

representatives must ensure that all 

drugs or drug-related supplies are 

discussed, displayed and represented 

accurately, in accordance with any 

applicable Food and Drug 

Administration and VANF guidelines 

and restrictions. 

(2) Contacts are to be by appointment 

only. In order to minimize the potential 

for disruption of patient care activities, 

a sales representative must schedule an 

appointment before each specific visit. 

Access to VA medical facilities by a 

sales representative without an 

appointment is not permitted under any 

circumstances. VA medical facilities 

may develop a list of individuals or 

departments that do not wish to be 

called-on by sales representatives. A 

sales representative must not attempt to 

make appointments with individuals or 

departments on the list. The list may be 

obtained at the local office of the Chief 

of Pharmacy Services. 

(3) Contacts with VA staff without an 

appointment. A sales representative 

visiting a VA medical facility for a 

scheduled appointment may not initiate 

requests for meetings with other VA 

staff; however, sales representatives may 

respond to requests initiated by VA staff 

during the visit. 

(4) Paging VA employees. The sales 

representative may not use the public 

address (paging) system to locate any 

VA employee. Contacts using the 

electronic paging system (beepers) are 

permissible only if specifically 

requested by the VA employee. 

(5) Marketing to students. Sales 

representatives are prohibited from 

marketing to medical, pharmacy, 

nursing and other health profession 

students (including residents). 

Exceptions may be permitted when 

approved by, and conducted in the 

presence of, their clinical staff member. 

(6) Attendance at conferences. A sales 

representative is not allowed to attend 

a medical center conference where 

patient-specific material is discussed or 

presented. 

(7) Patient care areas. Sales 

representatives generally may not wait 

for scheduled appointments or make 

presentations in patient-care areas, but 

may briefly travel through them, when 

necessary, to meet in a staff member’s 

office. Patient-care areas include, but are 

not limited to: 

(i) Patient rooms and ward areas 

where patients may be encountered; 

(ii) Clinic examination rooms; 

(iii) Nurses stations; 

(iv) Intensive care units; 

(v) Operating room suites; 

(vi) Emergency rooms; 

(vii) Urgent care centers; and 

(viii) Ambulatory treatment centers. 

(g) Failure to properly promote drugs 

or drug-related supplies within VA. 

(1) A sales representative’s 

commercial visiting privileges at one or 

more VA medical facilities may be 

restricted by the written order of the 

director of the VA medical center of 

jurisdiction if the director determines 

the sales representative failed to comply 

with the requirements of this section. 

The director will notify the 

representative of the noncompliance 

and of the director’s proposed action 

under paragraph (g)(3) of this section. 

The director will also notify the 

manager or other appropriate supervisor 

of the sales force if there have been 

instances of widespread misconduct by 

an individual, or by multiple 

representatives of the same sales force, 

and the director proposes to suspend or 

permanently revoke the sales force’s 

commercial visiting privileges at one or 

more VA medical facilities. The notice 

will offer 30 days to provide a response; 

however, the proposed action will be 

enforced effective the date of the notice. 

(2) At the end of the 30-day period for 

a response, or after the director receives 

a timely response, the director may, as 

appropriate to prevent future 

noncompliance, issue a written order 

suspending or permanently revoking the 

sales representative’s or sales force’s 

commercial visiting privileges, impose a 

lesser sanction, or decide that no further 

action is required. In determining the 

appropriate action, the director shall 

consider the requirements of this 

section, the circumstances of the 

improper conduct, any prior acts of 

misconduct by the same sales 

representative or sales force, any 

response submitted by the sales 

representative or sales force manager, 

and any prior orders issued or other 

actions taken with respect to similar 

acts of misconduct. Any final order 

issued by the director shall include a 

summary of the circumstances of the 

violation, a listing of the specific 

provisions of this section that the sales 

representative or sales force violated, 

and the bases for the director’s 

determination regarding the appropriate 

remedial action. 

(3) Actions that may be imposed 

under this section include limitation, 

suspension, or permanent revocation of 

commercial visiting privileges at one or 

more VA medical facilities. Instances of 

widespread misconduct by an 

individual or multiple sales 

representatives may result in the 

imposition of a VISN-wide or VA-wide 

limitation, suspension, or revocation of 

commercial visiting privileges of the 

entire sales force of a given 

manufacturer, if necessary to prevent 

further noncompliance. The director 

will provide the sales representative or 

sales force manager written notice of 

any final order issued under this 

section. 

(4) Notice concerning a final order 

suspending or permanently revoking an 

entire sales force’s commercial visiting 

privileges shall include specific notice 

concerning the right to appeal the 

director’s order to the Under Secretary 

for Health. The sales force manager or 

other corporate representative may 

request the Under Secretary’s review 

within 30 days of the date of the 

director’s order by submitting a written 

request to the director. The director 

shall forward the initial notice, any 

response, the final order, and the 

request for review to the Under 

Secretary for a final VA decision. VA 

will enforce the director’s order while it 

is under review by the Under Secretary. 

The director will provide the individual 

who made the request written notice of 

the Under Secretary’s decision. 

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

Editorial Note: This document was 

received in the Office of the Federal Register 

on Friday, April 30, 2010. 

[FR Doc. 2010–10629 Filed 5–4–10; 8:45 am] 

BILLING CODE 8320–01–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 62 

RIN 2900–AN53 

Supportive Services for Veteran 

Families Program 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 


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Federal Register / Vol. 75, No. 86 / Wednesday, May 5, 2010 / Proposed Rules 24515 

SUMMARY: This proposed rule would 

establish regulations concerning the 

Supportive Services for Veteran 

Families Program (SSVF Program) of the 

Department of Veterans Affairs (VA). 

This proposed rule is necessary to 

implement the provisions of section 604 

of the Veterans’ Mental Health and 

Other Care Improvements Act of 2008. 

The purpose of the SSVF Program is to 

provide supportive services grants to 

private non-profit organizations and 

consumer cooperatives who would 

coordinate or provide supportive 

services to very low-income veteran 

families who are residing in permanent 

housing, are homeless and scheduled to 

become residents of permanent housing 

within a specified time period, or after 

exiting permanent housing, are seeking 

other housing that is responsive to such 

very low-income veteran family’s needs 

and preferences. The new SSVF 

Program is within the continuum of 

VA’s homeless services programs. 

DATES: Comments on the proposed rule, 

including comments on the information 

collection provisions, must be received 

on or before June 4, 2010. 

ADDRESSES: Written comments may be 

submitted through http:// 

www.Regulations.gov; by mail or hand 

delivery to the Director, Regulations 

Management (02REG), Department of 

Veterans Affairs, 810 Vermont Ave., 

NW., Room 1068, Washington, DC 

20420; or by fax to (202) 273–9026. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AN53.’’ Copies of comments received 

will be available for public inspection in 

the Office of Regulation Policy and 

Management, Room 1063B, between the 

hours of 8 a.m. and 4:30 p.m., Monday 

through Friday (except holidays). Please 

call (202) 461–4902 (this is not a tollfree number) for an appointment. In 

addition, during the comment period, 

comments may be viewed online 

through the Federal Docket Management 

System (FDMS) at http:// 

www.Regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Vincent Kane, Supportive Services for 

Veteran Families Program Office (116), 

National Center on Homelessness 

Among Veterans, c/o Philadelphia VA 

Medical Center, 3900 Woodland 

Avenue, Philadelphia, PA 19104, (202) 

273–7462 (this is not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: Section 

604 of the Veterans’ Mental Health and 

Other Care Improvements Act of 2008, 

Public Law 110–387 (the Act), codified 

at 38 U.S.C. 2044, directed the Secretary 

of VA (Secretary) to provide financial 

assistance to eligible entities to provide 

supportive services to very low-income 

veteran families who are occupying 

permanent housing. This proposed rule 

would establish regulations concerning 

the SSVF Program and is necessary to 

implement section 604 of the Act. 

For organization and clarity of 

implementation, the proposed rule sets 

forth a new 38 CFR part 62. The 

proposed rule would establish 

regulations authorizing VA to award 

supportive services grants to private 

non-profit organizations and consumer 

cooperatives, who would provide or 

coordinate the provision of supportive 

services to very low-income veteran 

families who: (i) Are residing in 

permanent housing, (ii) are homeless 

and scheduled to become residents of 

permanent housing within a specified 

time period; or (iii) after exiting 

permanent housing, are seeking other 

housing that is responsive to such very 

low-income veteran family’s needs and 

preferences. 

VA has several programs that offer 

care to eligible homeless veterans, such 

as the Health Care for Homeless 

Veterans (HCHV) Program, the Grant 

and Per Diem (GPD) Program, the 

Residential Rehabilitation and 

Treatment Programs (RRTP), the 

Homeless Dental Program, and the 

Housing and Urban Development—VA 

Supported Housing (HUD–VASH 

Program). The SSVF Program is unique 

among the other VA programs because 

of the population it serves and the wide 

range of supportive services it provides 

to that population. For example, unlike 

other VA programs, the SSVF Program 

permits supportive services to be 

provided to veterans and their family 

members. (While the GPD program 

authorizes certain services for minor 

dependents of women veterans, it does 

not generally authorize the provision of 

supportive services to family members). 

Subject to SSVF Program limitations, 

these very low-income veteran families 

could be residing in permanent housing 

or be homeless. A broad range of 

supportive services assist participants to 

obtain housing stability, such as case 

management, assist participants to 

obtain any VA, Federal, State, local, or 

tribal benefits for which they may be 

eligible, and provide temporary 

financial assistance. 

The SSVF Program will benefit very 

low-income veteran families by helping 

them to achieve housing stability. In 

particular, the SSVF Program will aim 

to prevent very low-income veteran 

families from becoming homeless and 

assist those very low-income veteran 

families who are homeless with rapid 

re-housing. The SSVF Program will 

assist participants in obtaining the skills 

and resources necessary to maintain 

long-term housing stability. 

Content of Proposed Rule 

62.1 Purpose 

Proposed § 62.1 sets forth the purpose 

of the SSVF Program. Consistent with 

the Act (38 U.S.C. 2044), the proposed 

rule states that the purpose of the SSVF 

Program is to provide supportive 

services grants to eligible entities to 

facilitate the provision of supportive 

services to very low-income veteran 

families who are occupying permanent 

housing. 

62.2 Definitions 

Proposed § 62.2 contains definitions 

for key terms that would be used in part 

62 and Notices of Fund Availability. 

Although the proposed rule lists 

definitions in alphabetical order, this 

notice discusses the definitions as 

follows: 

(a) Definitions that are critical for 

understanding the SSVF Program; (b) 

Definitions that are included to provide 

clarity; and (c) Definitions that are based 

upon existing VA regulations or 

statutes. 

Definitions That Are Critical for 

Understanding the SSVF Program 

In accordance with the Act (38 U.S.C. 

2044(f)(2)), proposed § 62.2 defines the 

term ‘‘eligible entity’’ as a private nonprofit organization or consumer 

cooperative, which in turn are 

separately defined in proposed § 62.2. 

The proposed definition of ‘‘veteran 

family’’ is consistent with the definition 

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

2044(f)(7)). The proposed rule defines a 

veteran family as either a single veteran 

or a family in which the head of 

household, or the spouse of the head of 

household, is a veteran. 

Under the proposed rule, to be 

eligible for supportive services, a 

veteran family must be considered a 

‘‘very low-income veteran family.’’ 

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

2044(f)(6)), proposed § 62.2 defines a 

very low-income veteran family as a 

veteran family whose annual income 

does not exceed 50 percent of the 

median income for an area or 

community. This is subject to 

adjustment by VA in the Notice of Fund 

Availability. A veteran family’s annual 

income will be determined in 

accordance with the income criteria for 

programs under section 8 of the United 

States Housing Act of 1937 (42 U.S.C. 

1437f) as found in the Department of 

Housing and Urban Development 

regulation 24 CFR 5.609. VA has 


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determined that, unless stated otherwise 

in the Notice of Fund Availability, the 

income limits and area or community 

designations most recently published by 

the Department of Housing and Urban 

Development for programs under 

section 8 of the United States Housing 

Act of 1937 will be used to determine 

the median income for an area or 

community. 

Under 38 U.S.C. 2044(f)(4), 

‘‘permanent housing’’ is defined as 

‘‘community-based housing without a 

designated length of stay.’’ The term 

‘‘permanent housing’’ is defined in 

proposed § 62.2 consistent with the 

statute, but clarifying language is 

included in the proposed rule to explain 

that under our interpretation of the 

statute, permanent housing includes, 

but is not limited to, a house or 

apartment with a month-to-month or 

annual lease term, or home ownership. 

Permanent housing is not intended to 

include certain types of institutional 

housing that generally involve a 

designated length of stay, such as 

imprisonment or detainment pursuant 

to Federal or State law, which are not 

considered ‘‘community-based housing’’ 

under industry standards or common 

parlance. 

The proposed rule assigns a definition 

to the phrase ‘‘occupying permanent 

housing,’’ as set forth in proposed 

§ 62.11(a). 

‘‘Supportive services’’ are defined in 

the proposed rule as outreach services, 

as specified under proposed § 62.30; 

case management services, as specified 

under proposed § 62.31; assisting 

participants to obtain VA benefits, as 

specified under proposed § 62.32; 

assisting participants in obtaining and 

coordinating other public benefits, as 

specified under proposed § 62.33; and 

other services, as specified under 

proposed § 62.34. This proposed 

definition is derived from the 

description of supportive services 

provided in the Act (38 U.S.C. 2044(b)). 

The proposed rule defines the term 

‘‘participant’’ as those single veterans 

and veteran families who qualify for and 

are receiving supportive services from a 

private non-profit organization or 

consumer cooperative awarded a 

supportive services grant. 

The proposed rule defines the term 

‘‘homeless’’ by restating the definition 

from the Act (38 U.S.C. 2044(f)(3)), 

which gives the term the same ‘‘meaning 

given that term in section 103 of the 

McKinney-Vento Homeless Assistance 

Act (42 U.S.C. 11302).’’ 

Definitions That Are Included To 

Provide Clarity 

The terms ‘‘applicant,’’ ‘‘emergency 

supplies,’’ ‘‘grantee,’’ ‘‘Notice of Fund 

Availability,’’ ‘‘subcontractor,’’ 

‘‘supportive services grant,’’ and 

‘‘supportive services grant agreement’’ 

are included in the proposed rule to 

provide clarity. The proposed 

definitions are based on a plain 

language understanding of those terms. 

Definitions That Are Based Upon 

Existing VA Regulations or Statutes 

The terms ‘‘area or community,’’ ‘‘date 

of completion,’’ ‘‘disallowed costs,’’ 

‘‘State,’’ ‘‘suspension,’’ ‘‘third party inkind contributions,’’ ‘‘VA,’’ ‘‘veteran,’’ 

and ‘‘withholding’’ are defined by VA in 

the Homeless Providers Grant and Per 

Diem Program (38 CFR 61.1); in VA’s 

regulations regarding uniform 

requirements for grants and agreements 

with institutions of higher education, 

hospitals, and other non-profit 

organizations (38 CFR 49.2); or the 

definitions in 38 U.S.C. 101. These 

existing definitions are used in the 

proposed rule because they are 

understood by VA and its grantees, 

which would simplify the 

implementation of this new program. 

Some of these existing definitions 

would be modified for use in the SSVF 

Program. For example, ‘‘area or 

community’’ is broadened in the 

proposed rule to include tribal 

reservations, because the Act (38 U.S.C. 

2044(a)(5)) requires the equitable 

distribution of supportive services 

grants across geographic regions, 

including rural communities and tribal 

lands. To specifically acknowledge the 

proposed rule’s termination and 

closeout provisions, the term ‘‘date of 

completion’’ includes the date that a 

supportive services grant is terminated. 

62.10 Supportive Services Grants— 

General 

Under proposed § 62.10, at least 90 

percent of supportive services grant 

funds would need to be used by 

grantees to provide and coordinate the 

provision of supportive services to very 

low-income veteran families occupying 

permanent housing; a maximum of 10 

percent of supportive services grant 

funds could be used for administrative 

costs identified in proposed § 62.70(e). 

In accordance with the intent of the Act 

(38 U.S.C. 2044) and VA’s goals for the 

SSVF Program, VA proposes that the 

vast majority of supportive services 

grant funds (90 percent) be used to serve 

very low-income veteran families 

occupying permanent housing. VA 

expects that 10 percent would be a 

reasonable maximum for administrative 

costs associated with a supportive 

services grant, and any additional funds 

required by grantees for administration 

should be provided by non-VA funds. 

This percentage split (90/10) is based 

upon VA’s past experience 

administering similar programs and 

VA’s goals for the SSVF Program. 

62.11 Participants—Occupying 

Permanent Housing 

Proposed § 62.11 provides that a very 

low-income veteran family will be 

considered to be occupying permanent 

housing, and thereby eligible to receive 

supportive services from a grantee as a 

participant subject to proposed § 62.35, 

if such family meets the conditions of 

any one of the three categories described 

in proposed § 62.11(a)(1)–(3). 

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

2044(b)(1)), proposed § 62.11(a)(1) 

defines the first category of very lowincome families occupying permanent 

housing as ‘‘residing in permanent 

housing.’’ 

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

2044(b)(2)), proposed § 62.11(a)(2) 

defines the second category of families 

occupying permanent housing as being 

homeless and scheduled to become a 

resident of permanent housing within 

90 days pending the location or 

development of housing suitable for 

permanent housing. Development of 

permanent housing includes, but is not 

limited to, the construction, 

rehabilitation or modification of 

permanent housing. 

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

2044(b)(3)), proposed § 62.11(a)(3) 

defines the third category of families 

occupying permanent housing as having 

exited permanent housing within the 

previous 90 days and seeking other 

housing that is responsive to the very 

low-income veteran family’s needs and 

preferences. 

Proposed § 62.11(b) authorizes a 

grantee to reclassify a participant’s 

classification for occupying permanent 

housing if the participant’s housing 

changes while receiving supportive 

services. The SSVF Program is designed 

to ensure that very low-income veteran 

families who are transitioning 

(including, but not limited to, 

transitioning from homelessness to 

permanent housing and transitioning 

between various classifications of 

housing) maintain eligibility to receive 

supportive services through the SSVF 

Program. For example, if a very lowincome veteran family who is homeless 

consistent with proposed § 62.11(a)(2) 

moves into permanent housing, such 

family would then be reclassified under 

proposed § 62.11(a)(1). By reclassifying 


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the participant under proposed 

§ 62.11(a)(1), the participant would 

remain eligible to receive supportive 

services from a grantee, and the 

limitations to which the participant was 

subject when classified under proposed 

§ 62.11(a)(2) would no longer apply. 

Permitting participants to be reclassified 

if their housing changes is consistent 

with the purpose of the Act and the 

SSVF Program’s focus on promoting 

housing stability. 

62.20 Applications for Supportive 

Services Grants 

Proposed § 62.20(a) would require 

applicants to submit a complete 

supportive services grant application 

package and identify the items that 

would be included in such supportive 

services grant application package. The 

items listed are derived from the Act (38 

U.S.C. 2044(c)) and the application 

requirements prescribed for VA’s 

Homeless Providers Grant and Per Diem 

Program (38 CFR 61.11) and are 

designed to ensure that VA can fully 

evaluate the ability of applicants to 

achieve the goals of the SSVF Program. 

Proposed § 62.20(b) would authorize 

grantees to submit an application for 

renewal of a supportive services grant if 

the grantee’s program will remain 

substantially the same. By allowing 

grantees to submit a supportive services 

grant renewal application, grantees 

would be able to efficiently seek 

additional supportive services grant 

funds for a subsequent period, subject to 

the availability of VA funds, without a 

lapse in the provision of supportive 

services to participants. 

Proposed § 62.60(c) would allow VA 

to request other information or 

documentation related to a supportive 

services grant application in the event 

that particular information not set forth 

in the supportive services grant 

application is needed for VA to fully 

consider the applicant or grantee, as 

applicable. 

62.21 Threshold Requirements Prior to 

Scoring Supportive Services Grant 

Applicants 

The Act (38 U.S.C. 2044(c)(3)) 

requires VA to establish criteria for the 

selection of eligible entities to be 

provided supportive services grants. 

Proposed § 62.21 contains minimum 

threshold requirements that each 

applicant would be required to satisfy 

before VA would score the applicant. 

The threshold requirements are 

intended to be an administrative 

checklist with which applicants would 

confirm compliance prior to submitting 

a supportive services grant application. 

For example, if an applicant is not an 

eligible entity, if the application is not 

completed in all parts, or if the 

applicant is in default by failing to meet 

the requirements for any previous 

Federal assistance, VA would not 

process the application. 

The threshold requirements in 

proposed § 62.21 are consistent with the 

threshold requirements in VA’s 

Homeless Providers Grant and Per Diem 

Program (38 CFR 61.12). In 

administering that program, VA has 

found that screening applications to 

identify those that do not fulfill the 

threshold requirements enables VA to 

devote its resources to evaluating 

qualified supportive services grant 

applicants. 

62.22 Scoring Criteria for Supportive 

Services Grant Applicants 

A limited amount of funds are 

available for VA to distribute through 

the SSVF Program. In accordance with 

the Act (38 U.S.C. 2044(c)(3)) and 

because the number of applicants may 

exceed available funds or VA may have 

more funds than qualified applicants, 

VA has established scoring criteria for 

awarding supportive services grants. 

Utilization of the scoring criteria would 

allow VA to distribute supportive 

services grants consistent with 

Congressional intent and VA’s goals for 

the SSVF Program. 

Proposed § 62.22 describes the scoring 

criteria that VA proposes to use to score 

applicants fulfilling the threshold 

requirements. The scoring criteria are 

derived from VA’s experience with 

programs such as the Homeless 

Providers Grant and Per Diem Program 

(38 CFR 61.13) and the Loan Guarantee 

for Multifamily Transitional Housing 

Program (38 U.S.C. 2051 et seq.). The 

proposed categories are weighted 

according to their likelihood of 

impacting a grantee’s successful 

development and operation of a 

supportive services grant program. For 

example, the background, qualifications, 

experience, and past performance 

category is assigned the highest point 

value because applicants, and any 

identified subcontractors, with both 

experience implementing similar 

programs and strong staff qualifications 

would be most likely to develop and 

operate effective programs designed to 

meet the needs of very low-income 

veteran families and expend supportive 

services grant funds in an effective and 

efficient manner. In contrast, the area or 

community linkages and relations 

category is assigned 10 points. VA 

assigns point value to this category 

because VA recognizes the importance 

of an applicant’s past working 

relationships, local presence, and 

knowledge, and would reward 

applicants that have established such 

relationships or have such knowledge. 

However, VA does not consider this 

category to be as effective an indicator 

of program success as the background, 

qualifications, experience, and past 

performance category. This is because, if 

necessary, area or community linkages 

can be developed over the course of 

normal operations after the applicant is 

awarded a supportive services grant. 

When scoring applicants, VA 

proposes to award points to applicants 

who exceed the 10 percent cost sharing 

requirement in proposed § 62.26, as 

described in proposed § 62.22(d)(3). The 

Notice of Fund Availability would state 

the maximum percentage for which the 

full amount of points for this criterion 

would be awarded. For example, the 

Notice of Fund Availability could state 

that applicants matching a maximum 25 

percent of the supportive services grant 

amount would receive the maximum 

amount of points for this criterion; 

therefore, applicants matching 25 

percent of the supportive services grant 

amount would receive the same amount 

of points for this criterion as applicants 

matching 100 percent of the supportive 

services grant amount. VA wishes to 

reward those applicants demonstrating a 

match higher than 10 percent of the 

supportive services grant amount, but 

VA also recognizes that applicants 

would have varying amounts of 

resources available for cash or in-kind 

contributions. 

62.23 Selecting Applicants To Receive 

Supportive Services Grants 

Proposed § 62.23 describes the 

process VA proposes using to select 

applicants for supportive services 

grants. This process is similar to the 

selection process VA uses in the 

Homeless Providers Grant and Per Diem 

Program (38 CFR 61.14), but also 

includes a preference and an equitable 

distribution requirement set forth in the 

Act (38 U.S.C. 2044(a)(4) and 38 U.S.C. 

2044(a)(5)). 

VA would first group applicants by 

funding priorities, if any such priorities 

are set forth in the Notice of Fund 

Availability. VA would then score 

applicants using the criteria in proposed 

§ 62.22 and rank applicants who receive 

at least the minimum amount of total 

points and points per category set forth 

in the Notice of Fund Availability, 

within their respective funding priority 

group, if any. Applicants would be 

ranked in order from highest to lowest 

scores, within their respective funding 

priority group, if any. 

Although VA would use the 

applicant’s ranking as the primary basis 


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for selection, in accordance with the Act 

(38 U.S.C. 2044(a)(4) and 38 U.S.C. 

2044(a)(5)), VA would: (1) Give 

preference to applicants that provide or 

coordinate the provision of supportive 

services for very low-income veteran 

families transitioning from 

homelessness to permanent housing, 

and (2) ensure, to the extent practicable, 

that the supportive services grants are 

equitably distributed across geographic 

regions, including rural communities 

and tribal lands. The supportive 

services grant application would require 

applicants to identify the target 

populations and the area or community 

that the applicant proposes to serve. VA 

would use this information in the 

selection of grantees to ensure VA is 

complying with the Act’s requirements 

for distribution of supportive services 

grants. 

Subject to the preference and 

equitable distribution requirement 

described in proposed § 62.23(d), VA 

would fund the highest-ranked 

applicants for which funding is 

available, within the highest funding 

priority group, if any. Under proposed 

§ 62.40, VA would be able to choose to 

include funding priorities in the Notice 

of Fund Availability in order to meet the 

mandates of the Act (38 U.S.C. 2044) 

and VA goals for the SSVF Program. If 

funding priorities have been 

established, to the extent funding is 

available and subject to proposed 

§ 62.23(d), VA would select applicants 

in the next highest funding priority 

group based on their rank within that 

group. 

62.24 Scoring Criteria for Grantees 

Applying for Renewal of Supportive 

Services Grants 

Proposed § 62.24 describes the criteria 

VA would use to score grantees 

applying for renewal of a supportive 

services grant. Utilizing criteria specific 

to renewal applications would help VA 

more appropriately evaluate grantees 

who are already operating programs. 

Accordingly, as described in proposed 

§ 62.24, VA would award points to a 

grantee seeking renewal based upon the 

grantee’s program’s success, costeffectiveness, and compliance with VA 

goals and requirements. 

62.25 Selecting Grantees for Renewal 

of Supportive Services Grants 

Proposed § 62.25 describes the 

process VA proposes using to select 

grantees applying for renewal of 

supportive services grants. This is a 

simplified version of the process used to 

initially award supportive services 

grants. 

In order to be considered for renewal, 

proposed § 62.25(a) requires grantees to 

continue to meet the threshold 

requirements applicable to applicants in 

proposed § 62.21. VA would score 

grantees using the criteria in proposed 

§ 62.24 and rank grantees who receive at 

least the minimum amount of total 

points and points per category set forth 

in the Notice of Fund Availability. In 

accordance with proposed § 62.25(c), 

VA would fund the highest-ranked 

grantees for which funding is available. 

The amount of supportive services grant 

funds awarded to a grantee would be 

dependent upon the grantee’s request, 

the availability of funds, and any 

requirements described in the Notice of 

Fund Availability. 

62.26 Cost Sharing Requirement 

Proposed § 62.26 requires grantees to 

match a minimum of 10 percent of the 

amount of VA-provided supportive 

services grant funds with cash resources 

or third party in-kind contributions 

from non-VA sources. This requirement 

is intended to demonstrate the grantee’s 

commitment to the SSVF Program and 

ensure continuity of program operations 

and assistance to participants. After 

reviewing comparable programs’ cost 

sharing requirements and 

acknowledging that grantees will have 

varying amounts of resources, VA 

determined that 10 percent would be an 

appropriate cost sharing requirement. 

62.30 Supportive Service: Outreach 

Services 

Proposed § 62.30 prescribes outreach 

services, and it is the first of five 

sections describing the types of 

supportive services that grantees would 

provide through the SSVF Program. 

Outreach is critical to the success of the 

SSVF Program. Outreach would help 

ensure that supportive services are 

provided to very low-income veteran 

families occupying permanent housing 

who are difficult to locate or serve, such 

as those very low-income veteran 

families who live in rural areas, who are 

not already receiving VA benefits, or 

who reside in permanent housing but 

are at risk of losing such housing. 

Working with local facilities and 

agencies would help grantees assist 

participants in obtaining benefits of 

which the participants may not be 

aware. In addition, contact with local 

groups who serve veterans would help 

grantees identify additional 

participants. 

62.31 Supportive Service: Case 

Management Services 

To effectively assist participants in 

achieving housing stability, grantees 

would need to provide case 

management services. Accordingly, 

proposed § 62.31 includes a listing of 

tasks to ensure that applicants, grantees, 

and VA share the same understanding of 

‘‘case management services.’’ The 

proposed description of case 

management services is based on the 

definitions of case management services 

provided in other Federal programs, 

such as the Housing and Urban 

Development–Veterans Affairs 

Supported Housing (HUD–VASH) 

Program, the Department of Housing 

and Urban Development’s Congregate 

Housing Services Program (24 CFR 

700.105), and the Department of Health 

and Human Services’ Medicare and 

Medicaid Services Program (42 CFR 

440.169). 

62.32 Supportive Service: Assistance 

in Obtaining VA Benefits 

Grantees would provide an additional 

means for VA to notify eligible veteran 

families of available VA benefits. 

Consequently, and in accordance with 

the Act (38 U.S.C. 2044(b)(1)(C)), 

proposed § 62.32 requires grantees to 

assist participants to obtain any benefits 

from VA for which the participants are 

eligible. In light of 38 U.S.C. ch. 59, as 

implemented in 38 CFR part 14, VA 

does not interpret the Act to allow 

grantees to represent veterans in benefit 

claims before VA. Nor does VA interpret 

the Act as requiring that grantees 

become recognized organizations 

pursuant to 38 U.S.C. 5902 or that their 

employees or members become 

accredited service organization 

representatives, claims agents, or 

attorneys. Rather, benefit claims 

assistance by grantees may include 

providing information about available 

benefits and helping veterans locate a 

recognized veterans service organization 

or accredited individual and other 

services short of actual representation 

before VA, unless an individual 

employee or agent of the grantee is 

appropriately accredited pursuant to 38 

CFR 14.629. 

62.33 Supportive Service: Assistance 

in Obtaining and Coordinating Other 

Public Benefits 

VA would expect grantees to 

maximize the number of participants 

who will be served. Grantees may be 

able to directly provide many necessary 

supportive services; however, in some 

situations it would be more efficient for 

grantees to provide a referral for 

participants to obtain services provided 

by another Federal, State, or local 

agency or an eligible entity in the area 

or community served by the grantee. 

Accordingly, and in accordance with 


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the Act (38 U.S.C. 2044(b)(1)(D)), 

proposed § 62.33 requires grantees to 

assist participants to obtain, and 

coordinate the provision of, other public 

benefits that are being provided by 

Federal, State, local, or tribal agencies, 

or any eligible entity in the area or 

community served by the grantee. 

Proposed § 62.33 lists each of the 

examples of public benefits set forth in 

the Act (38 U.S.C. 2044(b)(1)(D)) and 

includes a definition for each listed 

public benefit. Most of the proposed 

definitions are derived from existing 

Federal programs. The proposed 

definitions are provided to ensure that 

applicants and grantees share the same 

understanding as VA of what constitutes 

each of the listed public benefits. 

The Act (38 U.S.C. 2044(b)(1)) broadly 

defines supportive services as those 

‘‘provided by an eligible entity or 

subcontractor of an eligible entity that 

address the needs of very low-income 

veteran families occupying permanent 

housing, including’’ services specified 

under the Act (38 U.S.C. 2044(b)(1)(A)– 

(D)). The use of ‘‘including’’ indicates 

that the list of services which follows is 

not intended to be exhaustive. Hence, 

proposed § 62.33(d)(1)–(2) and proposed 

§ 62.33(h)(2) permit direct payments 

from grantees for transportation and 

child care needs. VA has defined such 

payments as supportive services 

necessary to address the needs of very 

low-income veteran families occupying 

permanent housing. VA recognizes that 

the availability of adequate 

transportation and child care are 

important for obtaining and maintaining 

employment, and, therefore, housing 

stability. Accordingly, under proposed 

§ 62.33(d), grantees are authorized to 

provide temporary transportation 

services to participants if the grantee 

determines such assistance is necessary. 

Public transportation is generally less 

expensive than maintenance of private 

vehicles and may be more sustainable 

by both grantees and participants on a 

long-term basis. Consequently, the 

preferred method of providing 

transportation services under a 

supportive services grant would be the 

provision of tokens, vouchers, or other 

appropriate instruments to participants 

for use on public transportation. 

However, if an applicant determines 

that public transportation options are 

not sufficient within the area or 

community to be served, such as in a 

rural community, in the applicant’s 

supportive services grant application, 

the applicant would be able to include 

costs related to the applicant’s lease of 

vehicle(s) for the purpose of providing 

transportation services to participants. 

Proposed § 62.33(h) authorizes 

grantees to make payments on behalf of 

a participant to a State-licensed facility 

providing child care services. Because 

the grantee’s payment for child care 

services is intended to be temporary, 

prior to making child care payments on 

behalf of a participant, under the 

proposed rule, the grantee must help the 

participant develop a reasonable plan to 

address the participant’s future ability 

to pay for child care services and assist 

the participant to implement such plan. 

If this plan cannot reasonably be 

developed, the proposed rule provides 

that supportive services grant funds 

should not be expended on behalf of a 

participant for child care services and 

other options should be considered by 

the grantee and the participant. In 

accordance with the purpose of the 

SSVF Program, grantees would be 

limited to providing payments for child 

care services with supportive services 

grant funds for a maximum of 2 months 

in a calendar year. The 2-month 

limitation is designed to prevent child 

care services from consuming a 

disproportionate amount of supportive 

services grant funds. Grantees should 

provide participants with information 

on other available programs if long-term 

child care assistance is needed. 

62.34 Other Supportive Services 

The Act (38 U.S.C. 2044(b)(1)) broadly 

defines supportive services as those 

‘‘provided by an eligible entity or 

subcontractor of an eligible entity that 

address the needs of very low-income 

veteran families occupying permanent 

housing, including’’ services specified 

under the Act (38 U.S.C. 2044(b)(1)(A)– 

(D)). The use of ‘‘including’’ indicates 

that the list of services which follows is 

not intended to be exhaustive. Hence, 

proposed § 62.34 defines the payment of 

temporary financial assistance in certain 

instances as a supportive service that 

VA has determined is necessary to 

address the needs of very low-income 

veteran families occupying permanent 

housing. 

To prevent imminent homelessness or 

assist currently homeless very lowincome veteran families who are 

scheduled to become residents of 

permanent housing within 90 days 

pending the location or development of 

suitable permanent housing, it may be 

necessary in certain circumstances for 

the grantee to assist the participant in 

paying certain expenses. Accordingly, 

VA proposes classifying the following as 

a supportive service: Temporary 

financial assistance paid directly to a 

third party on behalf of a participant for 

rental payments, penalties, or fees; 

utility payments; security deposits; 

utility deposits; moving costs; and 

emergency supplies. 

For example, repeated failure to pay 

rent often leads to eviction, leaving a 

veteran family to contend with 

homelessness in addition to the initial 

lack of needed resources. A grantee’s 

provision of temporary financial 

assistance for rent, as provided in 

proposed § 62.34, may be necessary to 

stabilize and maintain the participant’s 

occupancy in permanent housing while 

the participant locates other resources 

that will help achieve housing stability 

on a long-term basis. Similarly for the 

reasons discussed in connection with 

proposed § 62.33, it may be necessary 

for a grantee to provide temporary 

assistance for transportation services or 

child care to maintain a participant’s 

occupancy in permanent housing. 

Grantees would be able to provide 

this type of temporary financial 

assistance if the grantee can reasonably 

determine that the payment by the 

grantee for the item requested would 

help the participant remain in 

permanent housing or obtain permanent 

housing as scheduled; if this 

determination cannot be reached, the 

grantee would assist the participant to 

obtain other types of available 

assistance. 

Similar to the child care payments 

discussed above, as a condition of the 

grantee’s provision of temporary 

financial assistance for rental or utility 

fee payments, rental or utility deposits, 

and moving costs, the proposed rule 

requires the grantee to help the 

participant develop and implement a 

plan to address the participant’s future 

housing stability. This requirement 

would limit the expenditure of 

supportive services grant funds to 

situations where the outcome would be 

housing stability for the participant. 

To the extent that proposed § 62.34 

authorizes the provision of temporary 

financial assistance on behalf of a 

participant, it is generally on a 

temporary or infrequent basis. The 

proposed rule includes time restrictions 

for the provision of temporary financial 

assistance because the SSVF Program is 

not a long-term financial assistance 

program; instead, if a participant needs 

long-term financial assistance, the 

grantee would have a duty to connect 

the participant with other programs 

providing such assistance. For example, 

rental assistance is limited to 4 months 

during a 3-year period, and moving 

costs may only be paid once in 3 years. 

Proposed § 62.34 contains additional 

restrictions. For example, with respect 

to temporary rental payments described 

in proposed § 62.34(a), rent payments 

would need to meet a ‘‘rent 


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reasonableness’’ standard, which is 

similar to the standard used by the 

Department of Housing and Urban 

Development in certain programs. 

Similarly, rental assistance in the form 

of payment of penalties or fees would 

need to be reasonable and required to be 

paid by the participant under an 

existing lease or court order. Further, 

grantees cannot provide temporary 

financial assistance on behalf of a 

participant for the same period of time 

and for the same cost types that are 

being provided through another Federal, 

State or local program. A restriction on 

the provision of ‘‘emergency supplies’’ is 

provided in the proposed rule to ensure 

that grantees understand that such 

assistance is intended to assist in the 

case of a temporary emergency where 

supplies are necessary for the 

participant’s life or safety, and is not 

intended to permit regular or ongoing 

aid. 

Under proposed § 62.34(f), VA may 

identify additional services in future 

Notices of Fund Availability, and 

grantees may request VA’s approval to 

provide a supportive service that is not 

listed in the proposed rule or future 

Notices of Fund Availability. 

62.35 Limitations on and 

Continuations of the Provision of 

Supportive Services to Certain 

Participants 

Proposed § 62.35 discusses the 

provision of supportive services to 

certain categories of participants (as 

described in proposed §§ 62.11(a)(2) and 

62.11(a)(3)) and would authorize the 

continuation of supportive services to a 

veteran’s family member(s) in the event 

of absence or death of the veteran. 

The Act (38 U.S.C. 2044(b)(2)) 

authorizes the provision of supportive 

services to a participant who is 

‘‘homeless and scheduled to become a 

resident of permanent housing within 

90 days pending the location or 

development of housing suitable for 

permanent housing.’’ VA recognizes that 

a participant scheduled to move into 

permanent housing may encounter 

unexpected delays, such as delays 

relating to construction, housing 

application processing, or other 

circumstances beyond the participant’s 

control. The proposed rule would not 

require a grantee to stop providing 

supportive services to a participant in 

the event the participant does not 

become a resident of permanent housing 

within the original 90-day period. In 

such instances, proposed § 62.35(a) 

authorizes the grantee to continue 

providing supportive services to the 

participant beyond the original 90-day 

period under proposed § 62.11(a)(2) so 

long as the participant continues to 

meet the conditions of proposed 

§ 62.11(a)(2) by being homeless and 

scheduled to become a resident of 

permanent housing within 90 days. This 

approach is consistent with the SSVF 

Program’s goal of assisting participants 

to achieve housing stability and the 

Act’s (38 U.S.C. 2044(a)(4)) requirement 

for VA to preference entities serving 

very low-income veteran families 

transitioning from homelessness to 

permanent housing. 

In accordance with the Act (38 U.S.C. 

2044(b)(3)), proposed § 62.35(b)(1) 

limits the provision of supportive 

services to participants classified under 

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

of (a) the participant’s commencement 

of other housing services adequate to 

meet the participant’s needs, or (b) 90 

days from the date the participant exits 

permanent housing. In accordance with 

the Act (38 U.S.C. 2044(b)(3)), proposed 

§ 62.35(b)(2) requires that all supportive 

services provided to participants 

classified under proposed § 62.11(a)(3) 

be designed to support such families in 

their choice to transition into housing 

that is responsive to their individual 

needs and preferences. 

Since the SSVF Program serves both 

veterans and their families, consistent 

with the purposes of the Act, proposed 

§ 62.35(c) requires grantees to establish 

a reasonable grace period during which 

a veteran’s family member(s) may 

continue to receive supportive services 

if the veteran becomes absent from the 

household or dies. This grace period 

would allow the veteran’s family 

member(s) to continue receiving 

supportive services for a maximum of 1 

year from the date of the absence or 

death of the veteran, subject to the 

requirements of proposed § 62.35(a) and 

(b). Participants could be harmed by the 

sudden withdrawal of supportive 

services at a time when the participant 

may most need such supportive 

services. The grace period would allow 

the grantee discretion in establishing the 

duration of the grace period because the 

grantee would be most familiar with the 

participant’s individualized needs. 

If a participant becomes ineligible to 

receive supportive services for any of 

the reasons described in proposed 

§ 62.35, proposed § 62.35(d) requires the 

grantee to provide the participant with 

information on other available programs 

or resources. 

62.36 General Operation Requirements 

To ensure that grantees are expending 

supportive services grant funds on 

eligible participants, proposed § 62.36(a) 

requires grantees to certify the eligibility 

of each participant for supportive 

services and classify the participant 

under one of the categories set forth in 

proposed § 62.11(a). This certification 

and classification must occur at least 

once every 3 months. In addition, 

grantees would be required to maintain 

the confidentiality of records kept on 

participants, as required by proposed 

§ 62.36(b). Pursuant to proposed 

§ 62.36(c), grantees would be required to 

notify participants of satisfaction 

surveys at certain times in order to 

assist VA to evaluate grantees’ 

performance and participants’ 

satisfaction with the supportive services 

they receive. To encourage grantees to 

leverage other financial resources to 

ensure continuity of program operations 

and assistance to participants, proposed 

§ 62.36(d) requires grantees to regularly 

assess how supportive services grant 

funds can be used in conjunction with 

other available funds and services. 

62.37 Fee Prohibition 

In accordance with the intent the Act, 

VA proposes that all very low-income 

veteran families be eligible to receive 

supportive services under the SSVF 

Program, regardless of whether such 

very low-income veteran family is able 

to pay for such services. Accordingly, 

proposed § 62.37 prohibits grantees 

from charging a fee to very low-income 

veteran families for providing 

supportive services that are funded with 

amounts from a supportive services 

grant or cost-sharing funds. However, as 

described in proposed §§ 62.33(h) and 

62.34, grantees would be permitted to 

require a participant to share in the cost 

of any rental or utility fee payment, 

rental or utility deposits, moving costs, 

or child care costs which would be paid 

by the grantee on behalf of the 

participant. 

62.40 Notice of Fund Availability 

Similar to the existing process in VA’s 

Homeless Providers Grant and Per Diem 

Program (38 CFR 61.60), in order to 

notify the public when funds are 

available for supportive services grants, 

in accordance with proposed § 62.40, 

VA would publish a Notice of Fund 

Availability in the Federal Register 

identifying such items as the location 

for obtaining supportive services grant 

application packages; the date, time, 

and place for submitting completed 

supportive services grant applications; 

the estimated amount and type of 

funding available, such as the amount of 

funds available for initial and renewal 

supportive services grants; the length of 

term for supportive services grant 

payments; and other information 

necessary for the supportive services 

grant application process as determined 


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by VA. The Notice of Fund Availability 

may require applicants to submit 

evidence of financial responsibility, 

such as financial statements and an 

Internal Revenue Service certification, 

and VA would use this information to 

confirm that applicants are financially 

responsible to receive funds under the 

SSVF Program. 

In addition, under the proposed rule, 

the Notice of Fund Availability may 

include a minimum number of total 

points and points per category that an 

applicant or grantee, as applicable, must 

receive in order for a supportive 

services grant to be funded in order to 

provide a minimal baseline which 

applicants or grantees, as applicable, 

must meet. Under the proposed rule, VA 

would be able to choose to include 

funding priorities in the Notice of Fund 

Availability in order to meet the 

mandates of the Act (38 U.S.C. 2044) 

and VA goals for the SSVF Program. For 

example, VA may decide to award a 

certain amount of available supportive 

services grant funds to applicants in 

certain areas or communities in order to 

fulfill the Act’s requirement to equitably 

distribute supportive services grants 

across geographical regions (38 U.S.C. 

2044(a)(5)). VA may limit the amount of 

supportive services grant funds for 

specific supportive services in the 

Notice of Fund Availability to ensure 

that grantees do not expend funds in a 

manner inconsistent with VA’s goals for 

the SSVF Program. For example, the 

Notice of Fund Availability may 

prohibit a grantee from using more than 

10 percent of the supportive services 

grant funds for temporary financial 

assistance; this requirement would 

ensure that the grantee has sufficient 

funds to provide the other required 

supportive services. Whether VA 

continues to fund any particular grantee 

from one year to the next will depend 

upon the priorities announced in the 

Notice of Fund Availability. For 

example, VA may decide to award a 

certain amount of available supportive 

services grant funds to renewal 

applicants. 

VA would also plan to notify 

interested parties of the availability of 

supportive services grant funds on the 

appropriate VA Web site. 

62.50 Supportive Services Grant 

Agreements 

Upon selection, proposed § 62.50 

requires the applicant or grantee, as 

applicable, to execute a supportive 

services grant agreement with VA 

confirming compliance with all 

requirements of the proposed rule and 

other terms and conditions required by 

VA. The supportive services grant 

agreement would be enforceable against 

the grantee, which would provide VA 

with assurance that the grantee would 

use the supportive services grant funds 

in the manner described in the 

supportive services grant application 

and in accordance with the 

requirements of the proposed rule. 

62.51 Payments Under the Supportive 

Services Grant 

The Act (38 U.S.C. 2044(a)(3)(B)) 

authorizes VA to establish intervals of 

payment for the administration of 

supportive services grants and establish 

a maximum amount to be awarded, in 

accordance with the supportive services 

being provided and their duration. 

Proposed § 62.51 notifies grantees that 

information regarding the timeframe 

and manner of payment of supportive 

services grants would be described in 

the Notice of Fund Availability. 

Including these requirements in the 

Notices of Fund Availability allows VA 

flexibility to determine the appropriate 

time and manner of payment of 

supportive services grants during each 

funding cycle. 

62.60 Program or Budget Changes and 

Corrective Action Plans 

Proposed § 62.60(a), which is derived 

from VA’s Homeless Providers Grant 

and Per Diem Program (38 CFR 61.62), 

would require grantees to receive prior 

approval from VA in the form of an 

amendment to the supportive services 

grant agreement before any significant 

change to the grantee’s program is 

implemented. Examples of significant 

changes would include: A change in the 

grantee or any subcontractors identified 

in the supportive services grant 

agreement, a change in the area or 

community served by the grantee, 

additions or deletions of supportive 

services provided by the grantee, a 

change in the category of participants to 

be served, and a change in budget line 

items that are more than 10 percent of 

the total supportive services grant 

award. The grantee would be obligated 

to implement the agreed upon program 

until such time, if any, that VA consents 

to a significant change. 

The Act (38 U.S.C. 2044(a)(7)) permits 

VA to require grantees to submit a 

report that describes the projects carried 

out using supportive services grant 

funds. Proposed § 62.60(b) provides that 

if, on a quarterly basis, actual 

supportive services grant expenditures 

vary from the amount disbursed to a 

grantee for that same quarter or actual 

supportive services vary from the 

grantee’s program description provided 

in the supportive services grant 

agreement, VA may require the grantee 

to submit a corrective action plan to 

demonstrate how the grantee would 

adjust to meet the requirements of the 

supportive services grant agreement in 

accordance with proposed § 62.60(b). 

The corrective action plan would 

explain how a grantee would adjust its 

behavior in order to comply with the 

requirements of the supportive services 

grant agreement, and the correction may 

involve an amendment as described 

under proposed § 62.60(a). 

The requirements in proposed § 62.60 

would help VA maintain control over 

the quality of the supportive services 

provided by grantees and ensure that 

supportive services grant funds are not 

misused. 

62.61 Procedural Error 

Similar to the existing process in VA’s 

Homeless Providers Grant and Per Diem 

Program (38 CFR 61.63), proposed 

§ 62.61 would authorize VA to select an 

applicant for available funding, based 

on the applicant’s previously submitted 

application, if that applicant is not 

selected because of VA’s procedural 

error. This is intended to ease the 

administrative burden on applicants 

and, under the proposed rule, may be 

used in situations where there is no 

material change in the application that 

would have resulted in the applicant’s 

selection. 

62.62 Religious Organizations 

Proposed § 62.62, which describes 

that religious or faith-based 

organizations are eligible for supportive 

services grants and contains certain 

conditions on the use of supportive 

services grant funds as it relates to 

religious activities, is similar to the 

language used in the regulations for 

VA’s Homeless Providers Grant and Per 

Diem Program (38 CFR 61.64). This 

language is included in the proposed 

rule because VA expects that religious 

or faith-based organizations may apply 

for supportive services grants. 

62.63 Visits To Monitor Operations 

and Compliance 

Proposed § 62.63 provides VA with 

the right, at all reasonable times, to 

make visits to all grantee locations 

where a grantee is using supportive 

services grant funds in order to review 

grantee accomplishments and 

management control systems and to 

provide such technical assistance as 

may be required. VA may 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. In the event that a grantee delivers 

services in a participant’s home, or at a 


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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. These provisions are 

critical for VA oversight over supportive 

services grants. 

62.70 Financial Management and 

Administrative Costs 

Proposed § 62.70 requires grantees to 

comply with applicable Office of 

Management and Budget requirements 

and VA’s standards for financial 

management for grants and agreements 

with institutions of higher education, 

hospitals, and other non-profit 

organizations (38 CFR 49.21). This 

provision is included in the proposed 

rule to ensure grantees are aware of 

additional requirements with which 

they must comply. 

Proposed § 62.70(e) requires that costs 

for administration by a grantee do not 

exceed 10 percent of the total amount of 

a supportive services grant, which, as 

explained above in the discussion 

regarding proposed § 62.10, VA has 

determined to be reasonable and 

consistent with the purpose of the SSVF 

Program. This requirement would 

ensure that the vast majority of 

supportive services grant funds (90 

percent) are used to provide supportive 

services to participants, which is the 

purpose of the SSVF Program. 

62.71 Grantee Reporting Requirements 

The Act (38 U.S.C. 2044(a)(7)) permits 

VA to require grantees to submit a 

report that describes projects carried out 

using supportive services grant funds. 

To obtain the information VA deems 

necessary to analyze and monitor a 

grantee’s performance, proposed § 62.71 

contains reporting requirements for 

grantees to provide information (in such 

form as may be prescribed by VA) as VA 

determines necessary to carry out the 

SSVF Program. Under the proposed 

rule, grantees must report, on a 

quarterly basis, any instances when 

actual supportive services grant 

expenditures vary from the amount 

disbursed to a grantee for that same 

quarter or actual supportive services 

grant activities vary from the grantee’s 

program description provided in the 

supportive services grant agreement; 

this information may lead VA to require 

a corrective action plan, as described 

under proposed § 62.60(b). 

Proposed § 62.71(f) requires grantees 

to provide VA with consent to post 

information from reports on the Internet 

and use such information in other ways 

deemed appropriate by VA. Under the 

proposed rule, grantees are required to 

clearly mark information that is 

confidential to individual participants. 

VA may post portions of the reports on 

the Internet so that the public has a 

greater understanding of the SSVF 

Program. In addition, VA may use the 

information for promotional or 

evaluation purposes. 

62.72 Recordkeeping 

Proposed § 62.72 requires grantees to 

keep records, and maintain such records 

for at least a 3 year period, to document 

compliance with the SSVF Program 

requirements. Under the proposed rule, 

grantees would need to produce these 

records at VA’s request. This would 

assist VA in providing oversight over 

grantees. In addition, this proposed rule 

would help VA comply with the Act, 

which requires VA to study the 

effectiveness of the program. Public Law 

110–387, section 604(c). 

62.73 Technical Assistance 

Under the Act (38 U.S.C. 2044(d)), 

proposed § 62.73 explains that VA 

would provide technical assistance, as 

necessary, to eligible entities to meet the 

requirements of the proposed rule. The 

technical assistance may consist of 

activities related to the planning, 

development, and provision of 

supportive services to very low-income 

veteran families occupying permanent 

housing. 

In addition to other forms of technical 

assistance that would be provided, VA 

will develop a program guide to be used 

by applicants, grantees, VA staff 

members, and other interested third 

parties to assist with understanding and 

implementing the SSVF Program. 

62.80 Withholding, Suspension, 

Deobligation, Termination, and 

Recovery of Funds By VA 

In accordance with proposed § 62.80, 

VA may recover from grantees any 

funds that are not used in accordance 

with the SSVF Program requirements. In 

addition, the proposed rule provides 

that if a grantee fails to comply with 

these requirements, upon 7 days notice 

to the grantee, VA may withhold further 

payment, suspend the supportive 

services grant, or prohibit the grantee 

from incurring additional obligations of 

supportive services grant funds. 

Proposed § 62.80(c)(1)–(3) provides that 

VA may terminate a supportive services 

grant in whole or in part only if the 

grantee: (1) Materially fails to comply 

with the terms and conditions of a 

supportive services grant award or the 

proposed rule; (2) consents to a 

termination; or (3) sends written 

notification setting forth the reasons for 

termination, the effective date, and in 

the case of partial termination, the 

portion to be terminated. In the event 

VA determines a grantee’s requested 

partial termination would not 

accomplish the purposes of the 

supportive services grant, the proposed 

rule would permit VA to terminate the 

supportive services grant under 

proposed § 62.80(c)(1) or § 62.80(c)(2). 

The proposed rule provides that VA 

may deobligate all or a portion of the 

amounts approved for use by a grantee 

if, in accordance with proposed 

§ 62.80(d), (1) the activity for which 

funding was approved is not provided 

in accordance with the approved 

application and the SSVF Program 

requirements, (2) such amounts have 

not been expended within 1 year from 

the date the supportive services grant 

agreement was signed, or (3) other 

circumstances set forth in the 

supportive services grant agreement 

authorize or require such deobligation. 

Under the proposed rule, VA may 

advertise in a Notice of Fund 

Availability the availability of funds 

that have been deobligated or may 

award deobligated funds to applicants 

who have previously submitted 

applications in response to the most 

recently published Notice of Fund 

Availability. 

The requirements in proposed § 62.80 

would help VA ensure that grant funds 

are used appropriately. Similar 

requirements are used in VA’s Homeless 

Providers Grant and Per Diem Program 

(38 CFR 61.67) and VA’s regulations 

regarding uniform requirements for 

grants and agreements with institutions 

of higher education, hospitals, and other 

non-profit organizations (38 CFR 49.61 

and 38 CFR 49.62), and VA has found 

that they are adequate to safeguard, and 

maximize optimal use of, grant funds. 

62.81 Supportive Services Grant 

Closeout Procedures 

Proposed § 62.81 contains closeout 

procedures for a supportive services 

grant which are similar to the 

procedures established in VA’s 

regulations regarding uniform 

requirements for grants and agreements 

with institutions of higher education, 

hospitals, and other non-profit 

organizations (38 CFR 49.71). No later 

than 90 days after the date of 

completion of a supportive services 

grant, the proposed rule provides that 

the grantee must refund to VA any 

unobligated balance of supportive 

services grant funds the grantee is not 

authorized to retain and submit all 

financial, performance and other reports 

as required by VA to closeout the 

supportive services grant. VA would 

retain the right to recover appropriate 


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amounts from grantees if final audits are 

completed after the date of completion. 

Paperwork Reduction Act 

This proposed rule includes 

provisions constituting collections of 

information under the Paperwork 

Reduction Act (44 U.S.C. 3501–3521) 

that require approval by the Office of 

Management and Budget (OMB). 

Accordingly, under section 3507(d) of 

the Act, VA has submitted a copy of this 

rulemaking to OMB for review. OMB 

assigns control numbers to collections 

of information it approves. Except for 

emergency approvals under 44 U.S.C. 

3507(j), VA may not conduct or sponsor, 

and a person is not required to respond 

to, a collection of information unless it 

displays a currently valid OMB control 

number. The proposed rule at proposed 

§§ 62.20, 62.36(c), 62.60, and 62.71 

contains collections of information 

under the Paperwork Reduction Act (44 

U.S.C. 3501–3521). Accordingly, under 

section 3507(d) of the Act, VA has 

submitted a copy of this rulemaking 

action to OMB for its review of the 

collections of information. VA has 

requested OMB to approve the 

collection of information on an 

emergency basis by June 4, 2010. This 

date is consistent with the shortened 

comment period for comments on the 

proposed rule and will help avoid a 

delay in implementation of the SSVF 

Program. The increased services and 

funding provided by the SSVF Program 

are critical to both achieve VA’s goal of 

eliminating veteran homelessness and 

meet the Congressional mandates for 

this program. In addition, because the 

SSVF program would also support VA’s 

homelessness prevention efforts, a delay 

in funding disbursement may even lead 

to an increase in homelessness among 

very low-income veteran families. 

Therefore, the need to take action is 

particularly great for those veterans and 

their families who would benefit from 

the increased supportive services 

funded by the SSVF Program. 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 collections of 

information contained in this proposed 

rule should be submitted to the Office 

of Management and Budget, Attention: 

Desk Officer for the Department of 

Veterans Affairs, Office of Information 

and Regulatory Affairs, Washington, DC 

20503, with copies sent by mail or hand 

delivery to: The Director, Office of 

Regulation Policy and Management 

(02REG), Department of Veterans 

Affairs, 810 Vermont Ave, NW., Room 

1068, Washington, DC 20420; fax to 

(202) 273–9026; or through http:// 

www.Regulations.gov. Comments 

should indicate that they are submitted 

in response to ‘‘RIN 2900–AN53.’’ 

Because VA has requested OMB to 

approve the collections of information 

on an emergency basis, a comment to 

OMB is best assured of having its full 

effect if OMB receives it within 30 days 

of publication. 

VA considers comments by the public 

on proposed collections of information 

in— 

• Evaluating whether the proposed 

collections of information are necessary 

for the proper performance of the 

functions of VA, including whether the 

information will have practical utility; 

• Evaluating the accuracy of VA’s 

estimate of the burden of the proposed 

collections of information, including the 

validity of the methodology and 

assumptions used; 

• Enhancing the quality, usefulness, 

and clarity of the information to be 

collected; and 

• Minimizing the burden of the 

collections of information on those who 

are to respond, including 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 proposed amendments to title 38, 

CFR chapter I contain collections of 

information under the Paperwork 

Reduction Act for which we are 

requesting approval by OMB. These 

collections of information are described 

immediately following this paragraph, 

under their respective titles. 

Title: Supportive Services for Veteran 

Families Program. 

Summary of collection of information: 

The proposed rule at proposed § 62.20 

contains application provisions for 

supportive services grants. The 

proposed rule at proposed § 62.36(c) 

contains a reference to participant 

satisfaction surveys. The proposed rule 

at proposed § 62.60 contains provisions 

for program or budget changes and 

submission of corrective action plans. 

The proposed rule at proposed § 62.71 

contains requirements for compliance 

reports. 

Application Provisions for SSVF 

Program 

Description of the need for 

information and proposed use of 

information: This information is needed 

to award supportive services grants to 

eligible entities. 

Description of likely respondents: 

Non-profit private organizations and 

consumer cooperatives requesting a 

supportive service grant. 

Estimated number of respondents per 

year: 100. 

Estimated frequency of responses per 

year: 1. 

Estimated total annual reporting and 

recordkeeping burden: 3,500 hours. 

Estimated annual burden per 

collection: 35 hours. 

Supportive Services Grant Renewal 

Applications for SSVF Program 

Description of the need for 

information and proposed use of 

information: This information is needed 

to renew supportive services grants 

previously awarded. 

Description of likely respondents: 

Entities who have received supportive 

services grants. 

Estimated number of respondents per 

year: 30. 

Estimated frequency of responses per 

year: 1. 

Estimated total annual reporting and 

recordkeeping burden: 300 hours. 

Estimated annual burden per 

collection: 10 hours. 

Participant Satisfaction Surveys 

Description of the need for 

information and proposed use of 

information: This information is needed 

for VA to evaluate grantees’ 

performance and participants’ 

satisfaction with the supportive services 

they receive. 

Description of likely respondents: 

Very low-income veteran families 

occupying permanent housing that are 

receiving supportive services from a 

grantee. 

Estimated number of respondents per 

year: 11,250. 

Estimated frequency of responses per 

year: 2. 

Estimated total annual reporting and 

recordkeeping burden: 5,625 hours. 

Estimated annual burden per 

collection: 15 minutes. 

Program or Budget Changes and 

Corrective Action Plans 

Description of the need for 

information and proposed use of 

information: This information is needed 

in order for a grantee to inform VA of 

significant changes that will alter a 

supportive services 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 supportive services grant 

expenditures vary from the amount 

disbursed to a grantee for that same 

quarter or actual supportive services 

grant activities vary from the grantee’s 

program description provided in the 

supportive services grant agreement. 


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Description of likely respondents: 

entities receiving supportive services 

grants who desire to change their 

approved supportive services grant 

program. 

Estimated number of respondents per 

year: 10. 

Estimated frequency of responses per 

year: 1. 

Estimated total annual reporting and 

recordkeeping burden: 20 hours. 

Estimated annual burden per 

collection: 2 hours. 

Compliance reports for SSVF Program 

Description of the need for 

information and proposed use of 

information: This information is needed 

to determine compliance with the 

requirements for a supportive services 

grant. 

Description of likely respondents: 

entities receiving supportive services 

grants. 

Estimated number of respondents per 

year: 30. 

Estimated frequency of responses per 

year: 4. 

Estimated total annual reporting and 

recordkeeping burden: 270 hours. 

Estimated annual burden per 

collection: 2.25 hours. 

Comment Period 

Although under the rulemaking 

guidelines in Executive Order 12866, 

VA ordinarily provides a 60-day 

comment period, the Secretary has 

determined that there is good cause to 

limit the public comment period on this 

proposed rule to 30 days. This proposed 

rule is necessary to implement section 

604 of Public Law 110–387, the 

Veterans’ Mental Health and Other Care 

Improvements Act of 2008, which 

authorizes VA to award grants to 

eligible entities to provide and 

coordinate the supportive services 

described in 38 U.S.C. 2044(b) for very 

low-income veteran families occupying 

permanent housing. These increased 

services and funding are critical to both 

achieve VA’s goal of eliminating veteran 

homelessness and meet the 

Congressional mandates for this 

program. In addition, because the SSVF 

program would also support VA’s 

homelessness prevention efforts, a delay 

in funding disbursement may even lead 

to an increase in homelessness among 

very low-income veteran families. 

Therefore, the need to take action is 

particularly great for those veterans and 

their families who would benefit from 

the increased supportive services 

funded by the SSVF Program. 

Accordingly, the Secretary has provided 

a 30-day comment period for this 

proposed rule. 

Executive Order 12866 

Executive Order 12866 directs 

agencies to assess all costs and benefits 

of available regulatory alternatives and, 

when regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety, and other advantages; 

distributive impacts; and equity). The 

Executive Order classifies a ‘‘significant 

regulatory action,’’ requiring review by 

OMB unless OMB waives such a review, 

as any regulatory action that is likely to 

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

annual effect on the economy of $100 

million or more, or adversely affect in 

a material way the economy, a sector of 

the economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) create 

a serious inconsistency or otherwise 

interfere with an action planned or 

taken by another agency; (3) materially 

alter the budgetary impact of 

entitlements, grants, user fees or loan 

programs or the rights and obligations of 

recipients thereof; or (4) raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The economic, interagency, economic, 

legal, and policy implications of this 

proposed rule have been examined and 

it has been determined to be a 

significant regulatory action under 

Executive Order 12866 because it may 

result in a rule that raises novel legal or 

policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

Regulatory Flexibility Act 

The Secretary hereby certifies that 

this proposed rule would not have a 

significant economic impact on a 

substantial number of small entities as 

they are defined in the Regulatory 

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

proposed rule would only impact those 

entities that choose to participate in the 

SSVF Program. Small entity applicants 

will not be affected to a greater extent 

than large entity applicants. Small 

entities must elect to participate, and it 

is considered a benefit to those who 

choose to apply. To the extent this 

proposed rule would have any impact 

on small entities, it would not have an 

impact on a substantial number of small 

entities. Therefore, pursuant to 5 U.S.C. 

605(b), this proposed rule is exempt 

from the initial and final regulatory 

flexibility analysis requirement of 

sections 603 and 604. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

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

prepare an assessment of anticipated 

costs and benefits before issuing any 

rule that may result in an expenditure 

by State, local, or tribal governments, in 

the aggregate, or by the private sector of 

$100 million or more (adjusted annually 

for inflation) in any one year. This 

proposed rule would have no such 

effect on State, local, or tribal 

governments, or on the private sector. 

Catalog of Federal Domestic Assistance 

Program 

There is no Catalog of Federal 

Domestic Assistance program number 

and title for the program in this 

proposal. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, approved this document and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. John 

R. Gingrich, Chief of Staff, Department 

of Veterans Affairs, approved this 

document on January 26, 2010, for 

publication. 

List of Subjects in 38 CFR Part 62 

Administrative practice and 

procedure, Day care, Disability benefits, 

Government contracts, Grant programshealth, Grant programs-social services, 

Grant programs-transportation, Grant 

programs-veterans, Grants-housing and 

community development, Health care, 

Homeless, Housing, Housing assistance 

payments, Indians-lands, Individuals 

with disabilities, Low and moderate 

income housing, Manpower training 

program, Medicare, Medicaid, Public 

assistance programs, Public housing, 

Relocation assistance, Rent subsidies, 

Reporting and recordkeeping 

requirements, Rural areas, Social 

security, Supplemental security income 

(SSI), Travel and transportation 

expenses, Unemployment 

compensation, Veterans. 

Dated: April 29, 2010. 

Robert C. McFetridge, 

Director, Regulation Policy and Management, 

Office of the General Counsel. 

For the reasons stated in the 

preamble, VA proposes to amend 38 

CFR chapter I to add a new part 62 to 

read as follows: 

PART 62—SUPPORTIVE SERVICES 

FOR VETERAN FAMILIES PROGRAM 

Sec. 


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62.1 Purpose. 

62.2 Definitions. 

62.10 Supportive services grants—general. 

62.11 Participants—occupying permanent 

housing. 

62.20 Applications for supportive services 

grants. 

62.21 Threshold requirements prior to 

scoring supportive services grant 

applicants. 

62.22 Scoring criteria for supportive 

services grant applicants. 

62.23 Selecting applicants to receive 

supportive services grants. 

62.24 Scoring criteria for grantees applying 

for renewal of supportive services grants. 

62.25 Selecting grantees for renewal of 

supportive services grants. 

62.26 Cost sharing requirement. 

62.30 Supportive service: outreach services. 

62.31 Supportive service: case management 

services. 

62.32 Supportive service: assistance in 

obtaining VA benefits. 

62.33 Supportive service: assistance in 

obtaining and coordinating other public 

benefits. 

62.34 Other supportive services. 

62.35 Limitations on and continuations of 

the provision of supportive services to 

certain participants. 

62.36 General operation requirements. 

62.37 Fee prohibition. 

62.40 Notice of Fund Availability. 

62.50 Supportive services grant agreements. 

62.51 Payments under the supportive 

services grant. 

62.60 Program or budget changes and 

corrective action plans. 

62.61 Procedural error. 

62.62 Religious organizations. 

62.63 Visits to monitor operations and 

compliance. 

62.70 Financial management and 

administrative costs. 

62.71 Grantee reporting requirements. 

62.72 Recordkeeping. 

62.73 Technical assistance. 

62.80 Withholding, suspension, 

deobligation, termination, and recovery 

of funds by VA. 

62.81 Supportive services grant closeout 

procedures. 

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

noted in specific sections 

§ 62.1 Purpose. 

This part implements the Supportive 

Services for Veteran Families Program, 

which provides supportive services 

grants to eligible entities to facilitate the 

provision of supportive services to very 

low-income veteran families who are 

occupying permanent housing. 

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

§ 62.2 Definitions. 

For purposes of this part and any 

Notice of Fund Availability issued 

under this part: 

Applicant means an eligible entity 

that submits an application for a 

supportive services grant announced in 

a Notice of Fund Availability. 

Area or community means a political 

subdivision or contiguous political 

subdivisions (such as a precinct, ward, 

borough, city, county, State, 

Congressional district or tribal 

reservation) with an identifiable 

population of very low-income veteran 

families. 

Consumer cooperative has the 

meaning given such term in section 202 

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

1701q). 

Date of completion means the earliest 

of the following dates: 

(1) The date on which all required 

work is completed; 

(2) The date specified in the 

supportive services grant agreement, or 

any supplement or amendment thereto; 

or 

(3) The effective date of a supportive 

services grant termination under 

§ 62.80(c). 

Disallowed costs means costs charged 

by a grantee that VA determines to be 

unallowable based on applicable 

Federal cost principles, or based on this 

part or the supportive services grant 

agreement. 

Eligible entity means a: 

(1) Private non-profit organization, or 

(2) Consumer cooperative. 

Emergency supplies means items 

necessary for a participant’s life or 

safety that are provided to the 

participant by a grantee on a temporary 

basis in order to address the 

participant’s emergency situation. 

Grantee means an eligible entity that 

is awarded a supportive services grant 

under this part. 

Homeless has the meaning given that 

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

U.S.C. 11302). 

Notice of Fund Availability means a 

Notice of Fund Availability published 

in the Federal Register in accordance 

with § 62.40. 

Occupying permanent housing means 

meeting any of the conditions set forth 

in § 62.11(a). 

Participant means a very low-income 

veteran family occupying permanent 

housing who is receiving supportive 

services from a grantee. 

Permanent housing means 

community-based housing without a 

designated length of stay. Examples of 

permanent housing include, but are not 

limited to, a house or apartment with a 

month-to-month or annual lease term or 

home ownership. 

Private non-profit organization means 

any of the following: 

(1) An incorporated private institution 

or foundation that: 

(i) Has no part of the net earnings that 

inure to the benefit of any member, 

founder, contributor, or individual; 

(ii) Has a governing board that is 

responsible for the operation of the 

supportive services provided under this 

part; and 

(iii) Is approved by VA as to financial 

responsibility. 

(2) A for-profit limited partnership, 

the sole general partner of which is an 

organization meeting the requirements 

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

definition. 

(3) A corporation wholly owned and 

controlled by an organization meeting 

the requirements of paragraphs (1)(i), 

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

(4) A tribally designated housing 

entity (as defined in section 4 of the 

Native American Housing Assistance 

and Self-Determination Act of 1996 (25 

U.S.C. 4103)). 

State means any of the several States 

of the United States, the District of 

Columbia, the Commonwealth of Puerto 

Rico, any territory or possession of the 

United States, or any agency or 

instrumentality of a State exclusive of 

local governments. The term does not 

include any public and Indian housing 

agency under the United States Housing 

Act of 1937. 

Subcontractor means any third party 

contractor, of any tier, working directly 

for an eligible entity. 

Supportive services means any of the 

following provided to address the needs 

of a participant: 

(1) Outreach services as specified 

under § 62.30. 

(2) Case management services as 

specified under § 62.31. 

(3) Assisting participants in obtaining 

VA benefits as specified under § 62.32. 

(4) Assisting participants in obtaining 

and coordinating other public benefits 

as specified under § 62.33. 

(5) Other services as specified under 

§ 62.34. 

Supportive services grant means a 

grant awarded under this part. 

Supportive services grant agreement 

means the agreement executed between 

VA and a grantee as specified under 

§ 62.50. 

Suspension means an action by VA 

that temporarily withdraws VA funding 

under a supportive services grant, 

pending corrective action by the grantee 

or pending a decision to terminate the 

supportive services grant by VA. 

Suspension of a supportive services 

grant is a separate action from 

suspension under VA regulations 

implementing Executive Orders 12549 

and 12689, ‘‘Debarment and 

Suspension.’’ 

Third party in-kind contributions 

means the value of non-cash 

contributions provided by non-Federal 

third parties. Third party in-kind 


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contributions may be in the form of real 

property, equipment, supplies, and 

other expendable property, and the 

value of goods and services directly 

benefiting and specifically identifiable 

to the grantee’s program. 

VA means the Department of Veterans 

Affairs. 

Very low-income veteran family 

means a veteran family whose annual 

income, as determined in accordance 

with 24 CFR 5.609, does not exceed 50 

percent of the median income for an 

area or community, as will be adjusted 

by VA based on family size and as may 

be adjusted and announced by VA in 

the Notice of Fund Availability based on 

residency within an area with unusually 

high or low construction costs, fair 

market rents (as determined under 

section 8 of the United States Housing 

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

incomes. Unless VA announces 

otherwise in the Notice of Fund 

Availability, the median income for an 

area or community will be determined 

using the income limits most recently 

published by the Department of Housing 

and Urban Development for programs 

under section 8 of the United States 

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

Veteran means a person who served 

in the active military, naval, or air 

service, and who was discharged or 

released therefrom under conditions 

other than dishonorable. 

Veteran family means a veteran who 

is a single person or a family in which 

the head of household, or the spouse of 

the head of household, is a veteran. 

Withholding means that payment of a 

supportive services grant will not be 

paid until such time as VA determines 

that the grantee provides sufficiently 

adequate documentation and/or actions 

to correct a deficiency for the supportive 

services grant. Costs for supportive 

services provided by grantees under the 

supportive services grant from the date 

of the withholding letter would be 

reimbursed only if the grantee is able to 

submit the documentation or actions 

that the deficiency has been corrected to 

the satisfaction of VA. 

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

§ 62.10 Supportive services grants— 

general. 

(a) VA provides supportive services 

grants to eligible entities as described in 

this part. 

(b) Grantees must use at least 90 

percent of supportive services grant 

funds to provide and coordinate the 

provision of supportive services to very 

low-income veteran families who are 

occupying permanent housing. 

(c) Grantees may use up to 10 percent 

of supportive services grant funds for 

administrative costs identified in 

§ 62.70. 

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

§ 62.11 Participants—occupying 

permanent housing. 

(a) Occupying permanent housing. A 

very low-income veteran family will be 

considered to be occupying permanent 

housing if the very low-income veteran 

family: 

(1) Is residing in permanent housing; 

(2) Is homeless and scheduled to 

become a resident of permanent housing 

within 90 days pending the location or 

development of housing suitable for 

permanent housing; or 

(3) Has exited permanent housing 

within the previous 90 days to seek 

other housing that is responsive to the 

very low-income veteran family’s needs 

and preferences. 

Cross Reference: For limitations on 

and continuations of the provision of 

supportive services to participants 

classified under paragraphs (a)(2) and 

(a)(3) of this section, see § 62.35. 

(b) Changes to a participant’s 

classification for occupying permanent 

housing. If a participant’s classification 

for occupying permanent housing 

changes while the participant is 

receiving supportive services from a 

grantee, the participant may be 

reclassified under the categories set 

forth in paragraph (a) of this section. 

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

§ 62.20 Applications for supportive 

services grants. 

(a) To apply for a supportive services 

grant, an applicant must submit to VA 

a complete supportive services grant 

application package, as described in the 

Notice of Fund Availability. A complete 

supportive services grant application 

package includes the following: 

(1) A description of the supportive 

services to be provided by the applicant 

and the identified need for such 

supportive services among very lowincome veteran families; 

(2) A description of the characteristics 

of very low-income veteran families 

occupying permanent housing who will 

be provided supportive services by the 

applicant; 

(3) An estimate with supporting 

documentation of the number of very 

low-income veteran families occupying 

permanent housing who will be 

provided supportive services by the 

applicant and a description of the area 

or community where such very lowincome veteran families are located; 

(4) Documentation evidencing the 

experience of the applicant and any 

identified subcontractors in providing 

supportive services to very low-income 

veteran families and very low-income 

families; 

(5) Documentation relating to the 

applicant’s ability to coordinate with 

any identified subcontractors; 

(6) Documentation of the managerial 

capacity of the applicant to: 

(i) Coordinate the provision of 

supportive services with the provision 

of permanent housing by the applicant 

or by other organizations; 

(ii) Assess continuously the needs of 

participants for supportive services; 

(iii) Coordinate the provision of 

supportive services with services 

provided by VA; 

(iv) Customize supportive services to 

the needs of participants; 

(v) Continuously seek new sources of 

assistance to ensure the long-term 

provision of supportive services to very 

low-income veteran families occupying 

permanent housing; 

(vi) Comply with and implement the 

requirements of this part throughout the 

term of the supportive services grant; 

and 

(7) Any additional information as 

deemed appropriate by VA. 

(b) Grantees may submit an 

application for renewal of a supportive 

services grant if the grantee’s program 

will remain substantially the same. To 

apply for renewal of a supportive 

services grant, a grantee must submit to 

VA a complete supportive services grant 

renewal application package, as 

described in the Notice of Fund 

Availability. 

(c) VA may request in writing that an 

applicant or grantee, as applicable, 

submit other information or 

documentation relevant to the 

supportive services grant application. 

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

§ 62.21 Threshold requirements prior to 

scoring supportive services grant 

applicants. 

VA will only score applicants that 

meet the following threshold 

requirements: 

(a) The application is filed within the 

time period established in the Notice of 

Fund Availability, and any additional 

information or documentation requested 

by VA under § 62.20(c) is provided 

within the time frame established by 

VA; 

(b) The application is completed in all 

parts; 

(c) The applicant is an eligible entity; 

(d) The activities for which the 

supportive services grant is requested 

are eligible for funding under this part; 

(e) The applicant’s proposed 

participants are eligible to receive 

supportive services under this part; 


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(f) The applicant agrees to comply 

with the requirements of this part; 

(g) The applicant does not have an 

outstanding obligation to the Federal 

government that is in arrears and does 

not have an overdue or unsatisfactory 

response to an audit; 

(h) The applicant is not in default by 

failing to meet the requirements for any 

previous Federal assistance; and 

(i) The applicant provides evidence 

that the minimum cost sharing 

requirement is satisfied. 

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

§ 62.22 Scoring criteria for supportive 

services grant applicants. 

VA will use the following criteria to 

score applicants who are applying for a 

supportive services grant: 

(a) VA will award up to 35 points 

based on the background, qualifications, 

experience, and past performance, of the 

applicant, and any subcontractors 

identified by the applicant in the 

supportive services grant application, as 

demonstrated by the following: 

(1) Background and organizational 

history. 

(i) Applicant’s, and any identified 

subcontractors’, background and 

organizational history are relevant to the 

program. 

(ii) Applicant, and any identified 

subcontractors, maintain organizational 

structures with clear lines of reporting 

and defined responsibilities. 

(iii) Applicant, and any identified 

subcontractors, have a history of 

complying with agreements and not 

defaulting on financial obligations. 

(2) Staff qualifications. 

(i) Applicant’s staff, and any 

identified subcontractors’ staff, have 

experience working with very lowincome families. 

(ii) Applicant’s staff, and any 

identified subcontractors’ staff, have 

experience administering programs 

similar to the Supportive Services for 

Veteran Families Program. 

(3) Organizational qualifications and 

past performance. 

(i) Applicant, and any identified 

subcontractors, have organizational 

experience providing supportive 

services to very low-income families. 

(ii) Applicant, and any identified 

subcontractors, have organizational 

experience coordinating services for 

very low-income families among 

multiple organizations, Federal, State, 

local and tribal governmental entities. 

(iii) Applicant, and any identified 

subcontractors, have organizational 

experience administering a program 

similar in type and scale to the 

Supportive Services for Veteran 

Families Program to very low-income 

families. 

(4) Experience working with veterans. 

(i) Applicant’s staff, and any 

identified subcontractors’ staff, have 

experience working with veterans. 

(ii) Applicant, and any identified 

subcontractors, have organizational 

experience providing supportive 

services to veterans. 

(iii) Applicant, and any identified 

subcontractors, have organizational 

experience coordinating services for 

veterans among multiple organizations, 

Federal, State, local and tribal 

governmental entities. 

(b) VA will award up to 25 points 

based on the applicant’s program 

concept and supportive services plan, as 

demonstrated by the following: 

(1) Need for program. 

(i) Applicant has shown a need 

amongst very low-income veteran 

families occupying permanent housing 

in the area or community where the 

program will be based. 

(ii) Applicant understands the unique 

needs for supportive services of very 

low-income veteran families. 

(2) Outreach and screening plan. 

(i) Applicant has a feasible outreach 

and referral plan to identify and assist 

very low-income veteran families 

occupying permanent housing that may 

be eligible for supportive services. 

(ii) Applicant has a plan to process 

and receive participant referrals. 

(iii) Applicant has a plan to assess 

and accommodate the needs of 

incoming participants. 

(3) Program concept. 

(i) Applicant’s program concept, size, 

scope, and staffing plan are feasible. 

(ii) Applicant’s program is designed to 

meet the needs of very low-income 

veteran families occupying permanent 

housing. 

(4) Program implementation timeline. 

(i) Applicant’s program will be 

implemented in a timely manner and 

supportive services will be delivered to 

participants as quickly as possible and 

within a specified timeline. 

(ii) Applicant has a hiring plan in 

place to meet the applicant’s program 

timeline or has existing staff to meet 

such timeline. 

(5) Collaboration and communication 

with VA. Applicant has a plan to 

coordinate outreach and services with 

local VA facilities. 

(6) Ability to meet VA’s requirements, 

goals and objectives for the Supportive 

Services for Veteran Families Program. 

Applicant is committed to ensuring that 

its program meets VA’s requirements, 

goals and objectives for the Supportive 

Services for Veteran Families Program 

as identified in this part and the Notice 

of Fund Availability. 

(7) Capacity to undertake program. 

Applicant has sufficient capacity, 

including staff resources, to undertake 

the program. 

(c) VA will award up to 15 points 

based on the applicant’s quality 

assurance and evaluation plan, as 

demonstrated by the following: 

(1) Program evaluation. 

(i) Applicant has created clear, 

realistic, and measurable goals against 

which the applicant’s program 

performance can be evaluated. 

(ii) Applicant plans to continually 

assess the program. 

(2) Monitoring. 

(i) Applicant has adequate controls in 

place to regularly monitor the program, 

including any subcontractors, for 

compliance with all applicable laws, 

regulations, and guidelines. 

(ii) Applicant has adequate financial 

and operational controls in place to 

ensure the proper use of supportive 

services grant funds. 

(iii) Applicant has a plan for ensuring 

that the applicant’s staff and any 

subcontractors are appropriately trained 

and stays informed of industry trends 

and the requirements of this part. 

(3) Remediation. Applicant has a plan 

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

when they are identified. 

(4) Management and reporting. 

Applicant’s program management team 

has the capability and a system in place 

to provide to VA timely and accurate 

reports at the frequency set by VA. 

(d) VA will award up to 15 points 

based on the applicant’s financial 

capability and plan, as demonstrated by 

the following: 

(1) Organizational finances. 

Applicant, and any identified 

subcontractors, are financially stable. 

(2) Financial feasibility of program. 

(i) Applicant has a realistic plan for 

obtaining all funding required to operate 

the program for the time period of the 

supportive services grant. 

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

implemented on-budget. 

(3) Cost sharing requirement. 

Applicant has exceeded the minimum 

cost sharing requirement up to a certain 

percentage as set forth in the Notice of 

Fund Availability. 

(e) VA will award up to 10 points 

based on the applicant’s area or 

community linkages and relations, as 

demonstrated by the following: 

(1) Area or community linkages. 

Applicant has a plan for developing or 

has existing linkages with Federal 

(including VA), State, local, and tribal 

government agencies, and private 

entities for the purposes of providing 

additional services to participants. 

(2) Past working relationships. 

Applicant (or applicant’s staff), and any 


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identified subcontractors (or 

subcontractors’ staff), have fostered 

successful working relationships and 

linkages with public and private 

organizations providing services to 

veterans or very low-income families in 

need of services similar to the 

supportive services. 

(3) Local presence and knowledge. 

(i) Applicant has a presence in the 

area or community to be served by the 

applicant. 

(ii) Applicant understands the 

dynamics of the area or community to 

be served by the applicant. 

(4) Integration of linkages and 

program concept. Applicant’s linkages 

to the area or community to be served 

by the applicant enhance the 

effectiveness of the applicant’s program. 

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

§ 62.23 Selecting applicants to receive 

supportive services grants. 

VA will use the following process to 

select applicants to receive supportive 

services grants: 

(a) VA will score all applicants that 

meet the threshold requirements set 

forth in § 62.21 using the scoring criteria 

set forth in § 62.22. 

(b) VA will group applicants within 

the applicable funding priorities if 

funding priorities are set forth in the 

Notice of Fund Availability. 

(c) VA will rank those applicants who 

receive at least the minimum amount of 

total points and points per category set 

forth in the Notice of Fund Availability, 

within their respective funding priority 

group, if any. The applicants will be 

ranked in order from highest to lowest 

scores, within their respective funding 

priority group, if any. 

(d) VA will use the applicant’s 

ranking as the primary basis for 

selection for funding. However, VA will 

also use the following considerations to 

select applicants for funding: 

(1) VA will give preference to 

applicants that provide or coordinate 

the provision of supportive services for 

very low-income veteran families 

transitioning from homelessness to 

permanent housing; and 

(2) To the extent practicable, VA will 

ensure that supportive services grants 

are equitably distributed across 

geographic regions, including rural 

communities and tribal lands. 

(e) Subject to paragraph (d) of this 

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

available, within the highest funding 

priority group, if any. If funding 

priorities have been established, to the 

extent funding is available and subject 

to paragraph (d) of this section, VA will 

select applicants in the next highest 

funding priority group based on their 

rank within that group. 

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

§ 62.24 Scoring criteria for grantees 

applying for renewal of supportive services 

grants. 

VA will use the following criteria to 

score grantees applying for renewal of a 

supportive services grant: 

(a) VA will award up to 55 points 

based on the success of the grantee’s 

program, as demonstrated by the 

following: 

(i) Participants made progress in 

achieving housing stability. 

(ii) Participants were satisfied with 

the supportive services provided by the 

grantee. 

(iii) The grantee implemented the 

program and delivered supportive 

services to participants in a timely 

manner. 

(b) VA will award up to 30 points 

based on the cost-effectiveness of the 

grantee’s program, as demonstrated by 

the following: 

(i) The cost per participant household 

was reasonable. 

(ii) The grantee’s program was 

effectively implemented on-budget. 

(c) VA will award up to 15 points 

based on the extent to which the 

grantee’s program complies with 

Supportive Services for Veteran 

Families Program goals and 

requirements, as demonstrated by the 

following: 

(i) The grantee’s program was 

administered in accordance with VA’s 

goals for the Supportive Services for 

Veteran Families Program. 

(ii) The grantee’s program was 

administered in accordance with all 

applicable laws, regulations, and 

guidelines. 

(iii) The grantee’s program was 

administered in accordance with the 

grantee’s supportive services grant 

agreement. 

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

§ 62.25 Selecting grantees for renewal of 

supportive services grants. 

VA will use the following process to 

select grantees applying for renewal of 

supportive services grants: 

(a) So long as the grantee continues to 

meet the threshold requirements set 

forth in § 62.21, VA will score the 

grantee using the scoring criteria set 

forth in § 62.24. 

(b) VA will rank those grantees who 

receive at least the minimum amount of 

total points and points per category set 

forth in the Notice of Fund Availability. 

The grantees will be ranked in order 

from highest to lowest scores. 

(c) VA will use the grantee’s ranking 

as the basis for selection for funding. VA 

will fund the highest-ranked grantees 

for which funding is available. 

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

§ 62.26 Cost sharing requirement. 

(a) The grantee must match the 

amount of VA-provided supportive 

services grant funds with a minimum of 

10 percent of funds from non-VA 

sources. The matching funds can be in 

the form of either or both of the 

following: 

(1) Cash resources provided by one or 

more of the following: the grantee; the 

Federal government (but excluding any 

funds provided by VA); State, local and 

tribal governments; or private resources. 

(2) Third party in-kind contributions. 

(b) Contributions will be accepted as 

part of the grantee’s cost sharing when 

such contributions meet the conditions 

of § 49.23 of this chapter. 

(c) The grantee must ensure that any 

funds used to satisfy the cost sharing 

requirement of this section are eligible 

to be used under the rules governing 

such funds. (Use of Federal funds as a 

match requires that the agency whose 

funds would be so used has specific 

statutory authority allowing its funding 

to be used for cost sharing or matching.) 

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

§ 62.30 Supportive service: outreach 

services. 

(a) Grantees must provide outreach 

services and use their best efforts to 

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

permanent housing are found, engaged, 

and provided supportive services. 

(b) Outreach services must include 

active liaison with local VA facilities, 

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

agencies and organizations providing 

supportive services to very low-income 

veteran families in the area or 

community to be served by the grantee. 

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

§ 62.31 Supportive service: case 

management services. 

Grantees must provide case 

management services that include, at a 

minimum: 

(a) Performing a careful assessment of 

participant functions and developing 

and monitoring case plans in 

coordination with a formal assessment 

of supportive services needed, including 

necessary follow-up activities, to ensure 

that the participant’s needs are 

adequately addressed; 

(b) Establishing linkages with 

appropriate agencies and service 

providers in the area or community to 

help participants obtain needed 

supportive services; 


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(c) Providing referrals to participants 

and related activities (such as 

scheduling appointments for 

participants) to help participants obtain 

needed supportive services, such as 

medical, social, and educational 

assistance or other supportive services 

to address participants’ identified needs 

and goals; 

(d) Deciding how resources are 

allocated to participants on the basis of 

need; and 

(e) Educating participants on issues, 

including, but not limited to, supportive 

services availability and participant 

rights. 

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

§ 62.32 Supportive service: assistance in 

obtaining VA benefits. 

(a) Grantees must assist participants 

in obtaining any benefits from VA for 

which the participants are eligible. Such 

benefits include, but are not limited to: 

(1) Vocational and rehabilitation 

counseling; 

(2) Employment and training service; 

(3) Educational assistance; and 

(4) Health care services. 

(b) Grantees are not permitted to 

represent participants before VA with 

respect to a claim for VA benefits unless 

they are recognized for that purpose 

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

and members of grantees are not 

permitted to provide such 

representation unless the individual 

providing representation is accredited 

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

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

§ 62.33 Supportive service: assistance in 

obtaining and coordinating other public 

benefits. 

Grantees must assist participants to 

obtain, and coordinate the provision of, 

other public benefits that are being 

provided by Federal, State, local, or 

tribal agencies, or any eligible entity in 

the area or community served by the 

grantee. Such public benefits may 

include, but are not limited to: 

(a) Health care services, which 

include: 

(1) Health insurance; and 

(2) Referral to a governmental or 

eligible entity that provides any of the 

following services: 

(i) Hospital care, nursing home care, 

out-patient care, mental health care, 

preventive care, habilitative and 

rehabilitative care, case management, 

respite care, and home care; 

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

care of any very low-income veteran 

family member; and 

(iii) The provision of pharmaceuticals, 

supplies, equipment, devices, 

appliances, and assistive technology. 

(b) Daily living services, which may 

consist of the referral of a participant, as 

appropriate, to an entity that provides 

services relating to the functions or 

tasks for self-care usually performed in 

the normal course of a day, including, 

but not limited to, eating, bathing, 

grooming, dressing, and home 

management activities. 

(c) Personal financial planning 

services, which include, at a minimum, 

providing recommendations regarding 

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

(d) Transportation services. 

(1) The grantee may provide 

temporary transportation services to 

participants if the grantee determines 

such assistance is necessary; however, 

the preferred method of provision of 

transportation services is the provision 

of tokens, vouchers, or other appropriate 

instruments so that participants may use 

available public transportation options. 

(2) If public transportation options are 

not sufficient within an area or 

community, costs related to the lease of 

vehicle(s) may be included in a 

supportive services grant application if 

the applicant or grantee, as applicable, 

agrees that: 

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

accessible, and equipped to meet the 

needs of the participants; 

(ii) The vehicle(s) will be maintained 

in accordance with the manufacturer’s 

recommendations; and 

(iii) All transportation personnel 

(employees and subcontractors) will be 

trained in managing any special needs 

of participants and handling emergency 

situations. 

(e) Income support services, which 

may consist of providing assistance in 

obtaining other Federal, State, tribal and 

local assistance, in the form of, but not 

limited to, mental health benefits, 

employment counseling, medical 

assistance, veterans’ benefits, and 

income support assistance. 

(f) Fiduciary and representative payee 

services, which may consist of acting on 

behalf of a participant by receiving the 

participant’s paychecks, benefits or 

other income, and using those funds for 

the current and foreseeable needs of the 

participant and saving any remaining 

funds for the participant’s future use in 

an interest bearing account or saving 

bonds. 

(g) Legal services to assist a 

participant with issues that interfere 

with the participant’s ability to obtain or 

retain permanent housing or supportive 

services. 

(h) Child care, which includes the: 

(1) Referral of a participant, as 

appropriate, to a State-licensed facility 

that provides child care with sufficient 

hours of operation and serves 

appropriate ages, as needed by the 

participant; and 

(2) Payment by a grantee on behalf of 

a participant for child care at a Statelicensed facility. 

(i) Payments for child care services 

must be paid by the grantee directly to 

a State-licensed facility and cannot 

exceed a maximum of 2 months in a 

calendar year. 

(ii) Grantees may require participants 

to share in the cost of child care as a 

condition of receiving payments for 

child care services. 

(iii) Payments for child care services 

cannot be provided on behalf of 

participants for the same period of time 

and for the same cost types that are 

being provided through another Federal, 

State or local subsidy program. 

(iv) As a condition of providing 

payments for child care services, the 

grantee must help the participant 

develop a reasonable plan to address the 

participant’s future ability to pay for 

child care services and assist the 

participant to implement such plan. 

(i) Housing counseling, which 

includes the provision of counseling 

relating to the stabilization of a 

participant’s residence in permanent 

housing. At a minimum, housing 

counseling includes providing referrals 

to appropriate local, tribal, State, and 

Federal resources, and providing 

counseling, education and outreach 

directly to participants on the following 

topics, as appropriate: 

(1) Housing search assistance, 

including the location of vacant units, 

the scheduling of appointments, 

viewing apartments, reviewing tenant 

leases, and negotiating with landlords 

on behalf of a participant; 

(2) Rental and rent subsidy programs; 

(3) Federal, State, tribal, or local 

assistance; 

(4) Fair housing; 

(5) Landlord tenant laws; 

(6) Lease terms; 

(7) Rent delinquency; 

(8) Resolution or prevention of 

mortgage delinquency, including, but 

not limited to, default and foreclosure, 

loss mitigation, budgeting, and credit; 

and 

(9) Home maintenance and financial 

management. 

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

§ 62.34 Other supportive services. 

Grantees may provide the following 

services which are necessary for 

maintaining independent living in 

permanent housing and housing 

stability: 

(a) Rental assistance. Payment of rent, 

penalties or fees to help the participant 


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remain in permanent housing or obtain 

permanent housing. 

(1) A participant may receive rental 

assistance for a maximum of 4 months 

during a 3-year period, such period 

beginning on the date that the grantee 

first pays rent on behalf of the 

participant; however, a participant 

cannot receive rental assistance for more 

than 2 months in any calendar year. The 

rental assistance may be for rental 

payments that are currently due or are 

in arrears, and for the payment of 

penalties or fees incurred by a 

participant and required to be paid by 

the participant under an existing lease 

or court order. In all instances, rental 

assistance may only be provided if the 

payment of such rental assistance will 

directly allow the participant to remain 

in permanent housing or obtain 

permanent housing. 

(2) Rental assistance must be paid by 

the grantee directly to the third party to 

whom rent is owed. 

(3) As a condition of providing rental 

assistance, the grantee must help the 

participant develop a reasonable plan to 

address the participant’s future ability 

to pay rent and assist the participant to 

implement such plan. 

(4) The rental assistance paid by a 

grantee must be in compliance with the 

following ‘‘rent reasonableness’’ 

standard. ‘‘Rent reasonableness’’ means 

the total rent charged for a unit must be 

reasonable in relation to the rents being 

charged during the same time period for 

comparable units in the private 

unassisted market and must not be in 

excess of rents being charged by the 

property owner during the same time 

period for comparable non-luxury 

unassisted units. To make this 

determination, the grantee should 

consider: (i) The location, quality, size, 

type, and age of the unit; and (ii) any 

amenities, housing services, 

maintenance, and utilities to be 

provided by the property owner. 

Comparable rents can be checked by 

using a market study, by reviewing 

comparable units advertised for rent, or 

using a note from the property owner 

verifying the comparability of charged 

rents to other units owned by the 

property owner. Prior to providing 

rental assistance in the form of payment 

of penalties or fees incurred by a 

participant, the grantee must determine 

that such penalties or fees are 

reasonable. 

(5) With respect to shared housing 

arrangements, the rent charged for a 

participant must be in relation to the 

size of the private space for that 

participant in comparison to other 

private space in the shared unit, 

excluding common space. A participant 

may be assigned a pro rata portion based 

on the ratio derived by dividing the 

number of bedrooms in their private 

space by the number of bedrooms in the 

unit. Participation in shared housing 

arrangements must be voluntary. 

(6) Rental assistance payments cannot 

be provided on behalf of participants for 

the same period of time and for the 

same cost types that are being provided 

through another Federal, State, or local 

housing subsidy program. 

(7) Grantees may require participants 

to share in the cost of rent as a condition 

of receiving rental assistance. 

(b) Utility-fee payment assistance. 

Payment of utility fees to help the 

participant to remain in permanent 

housing or obtain permanent housing. 

(1) A participant may receive 

payments for utilities for a maximum of 

4 months during a 3-year period, such 

period beginning on the date that the 

grantee first pays utility fees on behalf 

of the participant; provided, however, 

that a participant cannot receive 

payments for utilities for more than 2 

months in any calendar year. The 

payment for utilities may be for utility 

payments that are currently due or are 

in arrears, provided that the payment of 

such utilities will allow the participant 

to remain in permanent housing or 

obtain permanent housing. 

(2) Payments for utilities must be paid 

by the grantee directly to a utility 

company. Payments for utilities only 

will be available if a participant, a legal 

representative of the participant, or a 

member of his/her household, has an 

account in his/her name with a utility 

company or proof of responsibility to 

make utility payments, such as 

cancelled checks or receipts in his/her 

name from a utility company. 

(3) As a condition of providing 

payments for utilities, the grantee must 

help the participant develop a 

reasonable plan to address the 

participant’s future ability to pay utility 

payments and assist the participant to 

implement such plan. 

(4) Payments for utilities cannot be 

provided on behalf of participants for 

the same period of time and for the 

same cost types that are being provided 

through another Federal, State, or local 

program. 

(5) Grantees may require participants 

to share in the cost of utility payments 

as a condition of receiving payments for 

utilities. 

(c) Deposits. Payment of security 

deposits or utility deposits to help the 

participant remain in permanent 

housing or obtain permanent housing. 

(1) A participant may receive 

assistance with the payment of a 

security deposit a maximum of one time 

in every 3-year period, such period 

beginning on the date the grantee pays 

a security deposit on behalf of a 

participant. 

(2) A participant may receive 

assistance with the payment of a utility 

deposit a maximum of one time in every 

3-year period, such period beginning on 

the date the grantee pays a utility 

deposit on behalf of a participant. 

(3) Any security deposit or utility 

deposit must be paid by the grantee 

directly to the third party to whom the 

security deposit or utility deposit is 

owed. The payment of such deposit 

must allow the participant to remain in 

the participant’s existing permanent 

housing or help the participant to obtain 

and remain in permanent housing 

selected by the participant. 

(4) As a condition of providing a 

security deposit payment or a utility 

deposit payment, the grantee must help 

the participant develop a reasonable 

plan to address the participant’s future 

housing stability and assist the 

participant to implement such plan. 

(5) Security deposits and utility 

deposits covering the same period of 

time in which assistance is being 

provided through another housing 

subsidy program are eligible, as long as 

they cover separate cost types. 

(6) Grantees may require participants 

to share in the cost of the security 

deposit or utility deposit as a condition 

of receiving assistance with such 

deposit. 

(d) Moving costs. Payment of moving 

costs to help the participant to obtain 

permanent housing. 

(1) A participant may receive 

assistance with moving costs a 

maximum of one time in every 3-year 

period, such period beginning on the 

date the grantee pays moving costs on 

behalf of a participant. 

(2) Moving costs assistance must be 

paid by the grantee directly to a third 

party. Moving costs assistance includes 

reasonable moving costs, such as truck 

rental, hiring a moving company, or 

short-term storage fees for a maximum 

of 3 months or until the participant is 

in permanent housing, whichever is 

shorter. 

(3) As a condition of providing 

moving costs assistance, the grantee 

must help the participant develop a 

reasonable plan to address the 

participant’s future housing stability 

and assist the participant to implement 

such plan. 

(4) Moving costs assistance payments 

cannot be provided on behalf of 

participants for the same period of time 

and for the same cost types that are 

being provided through another Federal, 

State, or local program. 


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(5) Grantees may require participants 

to share in the cost of moving as a 

condition of receiving assistance with 

moving costs. 

(e) Purchase of emergency supplies 

for a participant. 

(1) A grantee may purchase 

emergency supplies for a participant on 

a temporary basis. 

(2) The costs of the emergency 

supplies must be paid by the grantee 

directly to a third party. 

(f) Other. Other services as set forth in 

the Notice of Fund Availability or as 

approved by VA that are consistent with 

the Supportive Services for Veteran 

Families Program. Applicants may 

propose additional services in their 

supportive services grant application, 

and grantees may propose additional 

services by submitting a written request 

to modify the supportive services grant 

in accordance with § 62.60. 

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

§ 62.35 Limitations on and continuations 

of the provision of supportive services to 

certain participants. 

(a) Continuation of the provision of 

supportive services to a participant 

classified under § 62.11(a)(2). If a 

participant classified under § 62.11(a)(2) 

does not become a resident of 

permanent housing within the originally 

scheduled 90-day period, the grantee 

may continue to provide supportive 

services to a participant classified under 

§ 62.11(a)(2) for such time that the 

participant continues to meet the 

requirements of § 62.11(a)(2). 

(b) Limitations on the provision of 

supportive services to participants 

classified under § 62.11(a)(3). 

(1) A grantee may provide supportive 

services to a participant classified under 

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

following dates: 

(i) The participant commences receipt 

of other housing services adequate to 

meet the participant’s needs; or 

(ii) Ninety days from the date the 

participant exits permanent housing. 

(2) Supportive services provided to 

participants classified under 

§ 62.11(a)(3) must be designed to 

support the participants in their choice 

to transition into housing that is 

responsive to their individual needs and 

preferences. 

(c) Continuation of supportive 

services to veteran family member(s). If 

a veteran becomes absent from a 

household or dies while other members 

of the veteran family are receiving 

supportive services, then such 

supportive services must continue for a 

grace period following the absence or 

death of the veteran. The grantee must 

establish a reasonable grace period for 

continued participation by the veteran’s 

family member(s), but that period may 

not exceed 1 year from the date of 

absence or death of the veteran, subject 

to the requirements of paragraphs (a) 

and (b) of this section. The grantee must 

notify the veteran’s family member(s) of 

the duration of the grace period. 

(d) Referral for other assistance. If a 

participant becomes ineligible to receive 

supportive services under this section, 

the grantee must provide the participant 

with information on other available 

programs or resources. 

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

§ 62.36 General operation requirements. 

(a) Eligibility documentation. Grantees 

must verify and document each 

participant’s eligibility for supportive 

services and classify the participant 

under one of the categories set forth in 

§ 62.11(a). Grantees must certify the 

eligibility and classification of each 

participant at least once every 3 months. 

(b) Confidentiality. Grantees must 

maintain the confidentiality of records 

kept on participants. Grantees that 

provide family violence prevention or 

treatment services must establish and 

implement procedures to ensure the 

confidentiality of: 

(1) Records pertaining to any 

individual provided services, and 

(2) The address or location where the 

services are provided. 

(c) Notifications to participants. 

(1) Prior to initially providing 

supportive services to a participant, the 

grantee must notify each participant that 

the supportive services are being paid 

for, in whole or in part, by VA. 

(2) The grantee must provide each 

participant with a satisfaction survey 

which can be submitted by the 

participant directly to VA, within 45 to 

60 days of the participant’s entry into 

the grantee’s program and again within 

30 days of such participant’s pending 

exit from the grantee’s program. 

(d) Assessment of funds. Grantees 

must regularly assess how supportive 

services grant funds can be used in 

conjunction with other available funds 

and services to assist participants. 

(e) Administration of supportive 

services grants. Grantees must ensure 

that supportive services grants are 

administered in accordance with the 

requirements of this part, the supportive 

services grant agreement, and other 

applicable laws and regulations. 

Grantees are responsible for ensuring 

that any subcontractors carry out 

activities in compliance with this part. 

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

§ 62.37 Fee prohibition. 

Grantees must not charge a fee to very 

low-income veteran families for 

providing supportive services that are 

funded with amounts from a supportive 

services grant or cost-sharing funds 

under § 62.26. 

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

§ 62.40 Notice of Fund Availability. 

When funds are available for 

supportive services grants, VA will 

publish a Notice of Fund Availability in 

the Federal Register. The notice will 

identify: 

(a) The location for obtaining 

supportive services grant applications; 

(b) The date, time, and place for 

submitting completed supportive 

services grant applications; 

(c) The estimated amount and type of 

supportive services grant funding 

available; 

(d) Any priorities for or exclusions 

from funding to meet the statutory 

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

goals for the Supportive Services for 

Veteran Families Program; 

(e) The length of term for the 

supportive services grant award; 

(f) The minimum number of total 

points and points per category that an 

applicant or grantee, as applicable, must 

receive in order for a supportive 

services grant to be funded; 

(g) Any maximum uses of supportive 

services grant funds for specific 

supportive services; 

(h) The timeframes and manner for 

payments under the supportive services 

grant; and 

(i) Other information necessary for the 

supportive services grant application 

process as determined by VA. 

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

§ 62.50 Supportive services grant 

agreements. 

(a) After an applicant is selected for 

a supportive services grant in 

accordance with § 62.23, VA will draft 

a supportive services grant agreement to 

be executed by VA and the applicant. 

Upon execution of the supportive 

services grant agreement, VA will 

obligate supportive services grant funds 

to cover the amount of the approved 

supportive services grant, subject to the 

availability of funding. The supportive 

services grant agreement will provide 

that the grantee agrees, and will ensure 

that each subcontractor agrees, to: 

(1) Operate the program in accordance 

with the provisions of this part and the 

applicant’s supportive services grant 

application; 

(2) Comply with such other terms and 

conditions, including recordkeeping 


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and reports for program monitoring and 

evaluation purposes, as VA may 

establish for purposes of carrying out 

the Supportive Services for Veteran 

Families Program, in an effective and 

efficient manner; and 

(3) Provide such additional 

information as deemed appropriate by 

VA. 

(b) After a grantee is selected for 

renewal of a supportive services grant in 

accordance with § 62.25, VA will draft 

a supportive services grant agreement to 

be executed by VA and the grantee. 

Upon execution of the supportive 

services grant agreement, VA will 

obligate supportive services grant funds 

to cover the amount of the approved 

supportive services grant, subject to the 

availability of funding. The supportive 

services grant agreement will contain 

the same provisions described in 

paragraph (a) of this section. 

(c) No funds provided under this part 

may be used to replace Federal, State, 

tribal, or local funds previously used, or 

designated for use, to assist very lowincome veteran families. 

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

§ 62.51 Payments under the supportive 

services grant. 

Grantees are to be paid in accordance 

with the timeframes and manner set 

forth in the Notice of Fund Availability. 

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

§ 62.60 Program or budget changes and 

corrective action plans. 

(a) A grantee must submit to VA a 

written request to modify a supportive 

services grant for any proposed 

significant change that will alter the 

supportive services grant program. If VA 

approves such change, VA will issue a 

written amendment to the supportive 

services grant agreement. A grantee 

must receive VA’s approval prior to 

implementing a significant change. 

Significant changes include, but are not 

limited to, a change in the grantee or 

any subcontractors identified in the 

supportive services grant agreement; a 

change in the area or community served 

by the grantee; additions or deletions of 

supportive services provided by the 

grantee; a change in category of 

participants to be served; and a change 

in budget line items that are more than 

10 percent of the total supportive 

services grant award. 

(1) VA’s approval of changes is 

contingent upon the grantee’s amended 

application retaining a high enough 

rank to have been competitively 

selected for funding in the year that the 

application was granted. 

(2) Each supportive services grant 

modification request must contain a 

description of the revised proposed use 

of supportive services grant funds. 

(b) VA may require that the grantee 

initiate, develop and submit to VA for 

approval a Corrective Action Plan (CAP) 

if, on a quarterly basis, actual 

supportive services grant expenditures 

vary from the amount disbursed to a 

grantee for that same quarter, or actual 

supportive services grant activities vary 

from the grantee’s program description 

provided in the supportive services 

grant agreement. 

(1) The CAP must identify the 

expenditure or activity source that has 

caused the deviation, describe the 

reason(s) for the variance, provide 

specific proposed corrective action(s), 

and provide a timetable for 

accomplishment of the corrective 

action. 

(2) After receipt of the CAP, VA will 

send a letter to the grantee indicating 

that the CAP is approved or 

disapproved. If disapproved, VA will 

make beneficial suggestions to improve 

the proposed CAP and request 

resubmission, or take other actions in 

accordance with this part. 

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

§ 62.61 Procedural error. 

If an applicant would have been 

selected but for a procedural error 

committed by VA, VA may select that 

applicant for funding when sufficient 

funds become available if there is no 

material change in the information that 

would have resulted in the applicant’s 

selection. A new application will not be 

required for this purpose. 

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

§ 62.62 Religious organizations. 

(a) Organizations that are religious or 

faith-based are eligible, on the same 

basis as any other organization, to 

participate in the Supportive Services 

for Veteran Families Program under this 

part. In the selection of applicants, the 

Federal government will not 

discriminate for or against an 

organization on the basis of the 

organization’s religious character or 

affiliation. 

(b)(1) No organization may use direct 

financial assistance from VA under this 

part to pay for any of the following: 

(i) Inherently religious activities, such 

as religious worship, instruction, or 

proselytization; or 

(ii) Equipment or supplies to be used 

for any of those activities. 

(2) For purposes of this section, 

‘‘indirect financial assistance’’ means 

Federal assistance in which a service 

provider receives program funds 

through a voucher, certificate, 

agreement, or other form of 

disbursement, as a result of the 

independent and private choices of 

individual beneficiaries. ‘‘Direct 

financial assistance’’ means Federal aid 

in the form of a grant, contract, or 

cooperative agreement where the 

independent choices of individual 

beneficiaries do not determine which 

organizations receive program funds. 

(c) Organizations that engage in 

inherently religious activities, such as 

worship, religious instruction, or 

proselytization, must offer those 

services separately in time or location 

from any programs or services funded 

with direct financial assistance from VA 

under this part, and participation in any 

of the organization’s inherently religious 

activities must be voluntary for the 

beneficiaries of a program or service 

funded by direct financial assistance 

from VA under this part. 

(d) A religious organization that 

participates in the Supportive Services 

for Veteran Families Program under this 

part will retain its independence from 

Federal, State, or local governments and 

may continue to carry out its mission, 

including the definition, practice, and 

expression of its religious beliefs, 

provided that it does not use direct 

financial assistance from VA under this 

part to support any inherently religious 

activities, such as worship, religious 

instruction, or proselytization. Among 

other things, faith-based organizations 

may use space in their facilities to 

provide VA-funded services under this 

part, without removing religious art, 

icons, scripture, or other religious 

symbols. In addition, a VA-funded 

religious organization retains its 

authority over its internal government, 

and it may retain religious terms in its 

organization’s name, select its board 

members and otherwise govern itself on 

a religious basis, and include religious 

reference in its organization’s mission 

statement and other governing 

documents. 

(e) An organization that participates 

in a VA program under this part must 

not, in providing direct program 

assistance, discriminate against a 

program beneficiary or a prospective 

program beneficiary regarding 

supportive services, financial assistance, 

or technical assistance, on the basis of 

religion or religious belief. 

(f) If a State or local government 

voluntarily contributes its own funds to 

supplement federally funded activities, 

the State or local government has the 

option to segregate the Federal funds or 

commingle them. However, if the funds 

are commingled, this provision applies 

to all of the commingled funds. 


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(g) To the extent otherwise permitted 

by Federal law, the restrictions on 

inherently religious activities set forth 

in this section do not apply where VA 

funds are provided to religious 

organizations through indirect 

assistance as a result of a genuine and 

independent private choice of a 

beneficiary, provided the religious 

organizations otherwise satisfy the 

requirements of this part. A religious 

organization may receive such funds as 

the result of a beneficiary’s genuine and 

independent choice if, for example, a 

beneficiary redeems a voucher, coupon, 

or certificate, allowing the beneficiary to 

direct where funds are to be paid, or a 

similar funding mechanism provided to 

that beneficiary and designed to give 

that beneficiary a choice among 

providers. 

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

§ 62.63 Visits to monitor operations and 

compliance. 

(a) VA has the right, at all reasonable 

times, to make visits to all grantee 

locations where a grantee is using 

supportive services grant funds in order 

to review grantee accomplishments and 

management control systems and to 

provide such technical assistance as 

may be required. VA may conduct 

inspections of all program locations and 

records of a grantee at such times as are 

deemed necessary to determine 

compliance with the provisions of this 

part. In the event that a grantee delivers 

services in a participant’s home, or at a 

location away from the grantee’s place 

of business, VA may accompany the 

grantee. If the grantee’s visit is to the 

participant’s home, VA will only 

accompany the grantee with the consent 

of the participant. If any visit is made 

by VA on the premises of the grantee or 

a subcontractor under the supportive 

services grant, the grantee must provide, 

and must require its subcontractors to 

provide, all reasonable facilities and 

assistance for the safety and 

convenience of the VA representatives 

in the performance of their duties. All 

visits and evaluations will be performed 

in such a manner as will not unduly 

delay services. 

(b) The authority to inspect carries 

with it no authority over the 

management or control of any applicant 

or grantee under this part. 

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

§ 62.70 Financial management and 

administrative costs. 

(a) All grantees must comply with 

applicable requirements of the Single 

Audit Act Amendments of 1996 (31 

U.S.C. 7501–7507) and revised OMB 

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

Governments, and Non-Profit 

Organizations,’’ codified by VA at 38 

CFR part 41. 

(b) All grantees must use an adequate 

financial management system that 

follows generally accepted accounting 

principles and provides adequate fiscal 

control and accounting records, 

including cost accounting records that 

are supported by documentation. Such 

cost accounting must be reflected in the 

grantee’s fiscal cycle financial 

statements to the extent that the actual 

costs can be determined for the program 

for which assistance is provided. 

Grantees must meet the applicable 

requirements of the appropriate OMB 

Circular for Cost-Principles. 

(c) Grantees’ financial management 

systems must comply with the 

requirements of § 49.21 of this part. 

(d) Payment up to the amount 

specified in the supportive services 

grant must be made only for allowable, 

allocable, and reasonable costs in 

conducting the work under the 

supportive services grant. The 

determination of allowable costs must 

be made in accordance with the 

applicable Federal Cost Principles set 

forth in OMB Circular A–122, Cost 

Principles for Non-Profit Organizations, 

codified at 2 CFR part 235. 

(e) Costs for administration by a 

grantee must not exceed 10 percent of 

the total amount of the supportive 

services grant. Administrative costs will 

consist of all direct and indirect costs 

associated with the management of the 

program. These costs will include the 

administrative costs, both direct and 

indirect, of subcontractors. For the 

purposes of the supportive services 

grant, all indirect costs are considered 

administrative costs, and, therefore, will 

not exceed 10 percent of the total 

supportive services grant. 

(f) If indirect charges are claimed in 

the applicant’s proposed budget, the 

applicant must provide on a separate 

sheet the following information: 

(1) Name and address of the cognizant 

government audit agency (the agency 

that is providing the most Federal 

funds); 

(2) Name, address, and phone number 

of the government auditor; 

(3) Documentation from the cognizant 

agency indicating: 

(i) Indirect cost rate and the base 

against which the rate should be 

applied; 

(ii) Effective period (dates) for the 

rate; and 

(iii) Date that the last rate was 

computed and negotiated. 

(g) If no government audit agency 

computed and authorized the rate 

claimed, applicant must provide a brief 

explanation of computation, who 

computed it, and the date. If the 

applicant is awarded a supportive 

services grant, the proposed indirect 

rate must be submitted to a Federal 

audit agency within 90 days of award 

for approval. 

(h) Grantees are subject to the 

Uniform Administrative Requirements 

for Grants and Agreements with 

Institutions of Higher Education, 

Hospitals and other Non-Profit 

Organizations, codified at 38 CFR part 

49. 

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

§ 62.71 Grantee reporting requirements. 

(a) VA may require grantees to 

provide, in such form as may be 

prescribed, such reports or answers in 

writing to specific questions, surveys, or 

questionnaires as VA determines 

necessary to carry out the Supportive 

Services for Veteran Families Program. 

(b) If, on a quarterly basis, actual 

supportive services grant expenditures 

vary from the amount disbursed to a 

grantee for that same quarter or actual 

supportive services grant activities vary 

from the grantee’s program description 

provided in the supportive services 

grant agreement, grantees must report 

the deviation to VA. 

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

frequency set by VA, each grantee must 

submit to VA a report containing 

information relating to operational 

effectiveness, fiscal responsibility, 

supportive services grant agreement 

compliance, and legal and regulatory 

compliance, including a description of 

the use of supportive services grant 

funds, the number of participants 

assisted, the types of supportive services 

provided, and any other information 

that VA may request. 

(d) Grantees must relate financial data 

to performance data and develop unit 

cost information whenever practical. 

(e) All pages of the reports must cite 

the assigned supportive services grant 

number and be submitted in a timely 

manner. 

(f) Grantees must provide VA with 

consent to post information from reports 

on the Internet and use such 

information in other ways deemed 

appropriate by VA. Grantees shall 

clearly mark information that is 

confidential to individual participants. 

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

§ 62.72 Recordkeeping. 

Grantees must ensure that records are 

maintained for at least a 3 year period 

to document compliance with this part. 

Grantees must produce such records at 

VA’s request. 


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

§ 62.73 Technical assistance. 

VA will provide technical assistance, 

as necessary, to eligible entities to meet 

the requirements of this part. Such 

technical assistance will be provided 

either directly by VA or through grants 

or contracts with appropriate public or 

non-profit private entities. 

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

§ 62.80 Withholding, suspension, 

deobligation, termination, and recovery of 

funds by VA. 

(a) Recovery of funds. VA will recover 

from the grantee any supportive services 

grant funds that are not used in 

accordance with the requirements of 

this part. VA will issue to the grantee a 

notice of intent to recover supportive 

services grant funds. The grantee will 

then have 30 days to submit 

documentation demonstrating why the 

supportive services grant funds should 

not be recovered. After review of all 

submitted documentation, VA will 

determine whether action will be taken 

to recover the supportive services grant 

funds. 

(b) VA actions when grantee fails to 

comply. When a grantee fails to comply 

with the terms, conditions, or standards 

of the supportive services grant, VA 

may, on 7-days notice to the grantee, 

withhold further payment, suspend the 

supportive services grant, or prohibit 

the grantee from incurring additional 

obligations of supportive services grant 

funds, pending corrective action by the 

grantee or a decision to terminate in 

accordance with paragraph (c) of this 

section. VA will allow all necessary and 

proper costs that the grantee could not 

reasonably avoid during a period of 

suspension if such costs meet the 

provisions of the applicable Federal 

Cost Principles. 

(c) Termination. Supportive services 

grants may be terminated in whole or in 

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

(c)(3) of this section apply. 

(1) By VA, if a grantee materially fails 

to comply with the terms and 

conditions of a supportive services grant 

award and this part. 

(2) By VA with the consent of the 

grantee, in which case VA and the 

grantee will agree upon the termination 

conditions, including the effective date 

and, in the case of partial termination, 

the portion to be terminated. 

(3) By the grantee upon sending to VA 

written notification setting forth the 

reasons for such termination, the 

effective date, and, in the case of partial 

termination, the portion to be 

terminated. However, if VA determines 

in the case of partial termination that 

the reduced or modified portion of the 

supportive services grant will not 

accomplish the purposes for which the 

supportive services grant was made, VA 

may terminate the supportive services 

grant in its entirety under either 

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

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

deobligate all or a portion of the 

amounts approved for use by a grantee 

if: 

(i) The activity for which funding was 

approved is not provided in accordance 

with the approved application and the 

requirements of this part; 

(ii) Such amounts have not been 

expended within a 1-year period from 

the date of the signing of the supportive 

services grant agreement; 

(iii) Other circumstances set forth in 

the supportive services grant agreement 

authorize or require deobligation. 

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

Availability the availability of funds 

that have been deobligated under this 

section or award deobligated funds to 

applicants who previously submitted 

applications in response to the most 

recently published Notice of Fund 

Availability. 

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

§ 62.81 Supportive services grant closeout 

procedures. 

Supportive services grants will be 

closed out in accordance with the 

following procedures upon the date of 

completion: 

(a) No later than 90 days after the date 

of completion, the grantee must refund 

to VA any unobligated (unencumbered) 

balance of supportive services grant 

funds that are not authorized by VA to 

be retained by the grantee. 

(b) No later than 90 days after the date 

of completion, the grantee must submit 

all financial, performance and other 

reports required by VA to closeout the 

supportive services grant. VA may 

authorize extensions when requested by 

the grantee. 

(c) If a final audit has not been 

completed prior to the date of 

completion, VA retains the right to 

recover an appropriate amount after 

considering the recommendations on 

disallowed costs once the final audit has 

been completed. 

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

[FR Doc. 2010–10372 Filed 5–4–10; 8:45 am] 

BILLING CODE P 

POSTAL SERVICE 

39 CFR Part 111 

Treatment of Cigarettes and 

Smokeless Tobacco as Nonmailable 

Matter 

AGENCY: Postal ServiceTM. 

ACTION: Proposed rule. 

SUMMARY: The Postal Service proposes 

to revise Mailing Standards of the 

United States Postal Service, Domestic 

Mail Manual (DMM®) 601.11, pertaining 

to the mailing of tobacco cigarettes and 

smokeless tobacco. These provisions 

implement specific requirements to be 

in compliance with the Prevent All 

Tobacco Cigarettes Trafficking (PACT) 

Act, Public Law No. 111–154, which 

restricts the mailability of cigarettes and 

smokeless tobacco. 

DATES: Submit comments on or before 

May 17, 2010. 

ADDRESSES: Mail or deliver written 

comments to the Manager, Mailing 

Standards, U.S. Postal Service, 475 

L’Enfant Plaza, SW., Room 3436, 

Washington, DC 20260–3436. You may 

inspect and photocopy all written 

comments at USPS Headquarters 

Library, 475 L’Enfant Plaza, SW., 11th 

Floor North, Washington, DC, between 9 

a.m. and 4 p.m., Monday through 

Friday. E-mail comments, containing 

the name and address of the commenter, 

may be sent to: 

MailingStandards@usps.gov, with a 

subject line of ‘‘PACT Act.’’ Faxed 

comments are not accepted. 

FOR FURTHER INFORMATION CONTACT: 

Anthony Alverno, 202–268–2997, or 

Mary Collins, 202–268–5440. 

SUPPLEMENTARY INFORMATION: 

On March 31, 2010, the Prevent All 

Cigarette Trafficking (PACT) Act of 

2009, Public Law No. 111–154 was 

enacted. The Act’s purposes include: 

• Requiring Internet-based and other 

remote sellers of cigarettes and 

smokeless tobacco to comply with laws 

applied to other tobacco retailers; 

• Creating disincentives for the illegal 

smuggling of tobacco products; 

• Enhancing enforcement tools to 

deal with cigarette smuggling; 

• Stemming trafficking; 

• Increasing collection of federal, 

state, and local excise taxes on cigarettes 

and smokeless tobacco; and 

• Preventing youth access through 

Internet and contraband sales. 

Section 3 of the PACT Act pertains to 

the Postal Service and creates a new 

section 1716E of Title 18, U.S. Code. 

Section 3 of the PACT Act provides that, 

subject to certain exceptions, cigarettes, 

including roll-your-own tobacco and 


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