Federal Register / Vol. 75, No. 180 / Friday, September 17, 2010 / Rules and Regulations 56875 

Dated: July 21, 2010. 

James Scott Sledge, 

Chief, U.S. Copyright Royalty Judge. 

James H. Billington, 

Librarian of Congress. 

[FR Doc. 2010–23264 Filed 9–16–10; 8:45 am] 

BILLING CODE 1410–72–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR part 36 

RIN 2900–AM87 

Loan Guaranty: Assistance to Eligible 

Individuals in Acquiring Specially 

Adapted Housing 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: This document amends the 

Department of Veterans Affairs’ (VA’s) 

Loan Guaranty regulations concerning 

assistance to eligible individuals in 

acquiring specially adapted housing. 

These changes improve the readability 

of the regulations; provide further detail 

about longstanding program policies; 

and address legislation, policy changes, 

and a VA Office of the General Counsel 

legal opinion. 

DATES: Effective Date: October 18, 2010. 

FOR FURTHER INFORMATION CONTACT: 

William White, Acting Assistant 

Director for Loan Policy and Valuation, 

Loan Guaranty Service (262), Veterans 

Benefits Administration, Department of 

Veterans Affairs, 810 Vermont Avenue, 

NW., Washington, DC 20420, (202) 461– 

9543. (This is not a toll-free telephone 

number.) 

SUPPLEMENTARY INFORMATION: Veterans 

and servicemembers with severe 

disabilities may be eligible under 38 

U.S.C. chapter 21 for specially adapted 

housing (SAH) grants. In administering 

the SAH program, VA helps these 

eligible individuals to purchase, 

construct, or adapt a home that suits the 

individual’s living needs. In a document 

published in the Federal Register on 

October 5, 2009 (74 FR 51103), VA 

proposed to amend regulations in 38 

CFR part 36, subpart C, regarding 

assistance to certain disabled veterans 

in acquiring SAH, specifically 

§§ 36.4400 through 36.4410, which 

implement the SAH grant program. 

As explained in the proposed rule, 

VA is amending these regulations for 

three reasons. First, VA believes the 

regulations should be written in a 

reader-focused style. Second, detailed 

guidance about program policies and a 

regulation written with an easy-tofollow organizational structure will help 

applicants and eligible individuals (and 

those acting on their behalf) understand 

program requirements. Third, 

substantive changes are necessary to 

implement recent legislation, policy 

decisions, and a VA General Counsel 

legal opinion. Pursuant to 38 U.S.C. 

2101(d), the Secretary may prescribe 

regulations applicable to the SAH 

program. In revising these regulations, 

VA intends that applicants, eligible 

individuals, program participants, and 

other interested parties will be better 

informed about the legal requirements 

and Department policies that guide the 

administration of SAH grants. 

The comment period for the proposed 

rule ended on December 4, 2009, and 

VA received two comments. The 

commenters expressed concern 

regarding VA’s proposed use of the 

terminology ‘‘paraplegic housing grant 

or PH grant’’ for the grant authorized 

under 38 U.S.C. 2101(a). The 

commenters pointed out that the term is 

reflective of only one of the types of 

disabilities that make an individual 

eligible for this grant. Additionally, the 

commenters suggested that the use of 

the term ‘‘paraplegic’’ might result in an 

improper restriction on eligibility for 

SAH grants. The concern was that the 

term ‘‘paraplegia’’ or ‘‘paraplegic’’ might 

not be interpreted to include the 

functional loss of use of the lower limbs 

due to psychological disorders or other 

non-organic impairments. One 

commenter, citing General Counsel 

Precedent Opinion 60–90, asserted that 

such a restriction on eligibility for SAH 

grants is improper, and both 

commenters wanted to ensure that the 

definition for ‘‘paraplegic grant’’ would 

not exclude individuals who otherwise 

would have been eligible for assistance 

under 38 U.S.C. 2101(a). 

The General Counsel opinion held 

that the determination of ‘‘loss of use’’ is 

made ‘‘irrespective of whether such loss 

is functional or organic in origin.’’ VA 

did not propose to diverge from this 

holding. VA agrees with the 

commenters’ concerns and, therefore, 

has decided to use the applicable 

statutory citations when referring to the 

grants authorized under 38 U.S.C. 

2101(a) as well as 2101(b), rather than 

the terms ‘‘paraplegic housing grant’’ or 

‘‘adaptive housing grant’’ as proposed. 

No other substantive changes are 

made to the proposed rule. However, 

VA has made a few technical revisions. 

First, VA has revised the heading of 

subpart C to refer to ‘‘Eligible 

Individuals’’ rather than ‘‘Certain 

Disabled Veterans.’’ Second, VA is 

amending the language in 

§ 36.4404(a)(1), (2), and (3) to clarify 

that assistance is based on an 

individual’s rating for entitlement to 

compensation under 38 U.S.C. chapter 

11. These changes are intended to 

clarify that assistance under 38 U.S.C. 

chapter 21 is available to veterans and 

active duty servicemembers. Third, on 

September 24, 2009, VA published a 

final rule establishing 38 CFR 36.4412, 

which implemented provisions of the 

Housing and Economic Recovery Act of 

2008, Public Law 110–289. Those 

provisions authorize VA to provide 

automatic annual increases to certain 

SAH grant recipients. VA sought 

comments on proposed § 36.4412 in a 

document published in the Federal 

Register on May 12, 2009 (74 FR 22145). 

VA inadvertently omitted § 36.4412 in 

the proposed rule that preceded this 

final rule. See 74 FR 51103. VA is reinserting this provision, without further 

change, as § 36.4411. No substantive 

changes were made to the regulation. 

Finally, VA has revised 

§§ 36.4405(a)(iii), 36.4405(b), and 

36.4406(b) for grammatical reasons. 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

of 1995 requires, at 2 U.S.C. 1532, that 

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

given year. This final rule will have no 

such effect on State, local, and tribal 

governments, or on the private sector. 

Paperwork Reduction Act of 1995 

Although this document contains 

provisions constituting collections of 

information, under the provisions of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3521), no new or proposed 

revised collections of information are 

associated with this final rule. The 

information collection provisions for 

subpart C of 38 CFR part 36 are 

currently approved by the Office of 

Management and Budget (OMB) and 

have been assigned OMB control 

numbers 2900–0031, 2900–0047, 2900– 

0132, and 2900–0300. 

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 regulatory 

action as a ‘‘significant regulatory 


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action,’’ requiring review by OMB, 

unless OMB waives such review, if it is 

a regulatory action that is likely to result 

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

effect on the economy of $100 million 

or more or adversely affect in a material 

way the economy, a sector of the 

economy, productivity, competition, 

jobs, the environment, public health or 

safety, or State, local, or tribal 

governments or communities; (2) create 

a serious inconsistency or otherwise 

interfere with an action taken or 

planned by another agency; (3) 

materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The economic, interagency, 

budgetary, legal, and policy 

implications of this final rule have been 

examined, and it has been determined 

to be a significant regulatory action 

under Executive Order 12866 because it 

is likely to result in a rule that may raise 

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 final rule will not have a significant 

economic impact on a substantial 

number of small entities as they are 

defined in the Regulatory Flexibility 

Act, 5 U.S.C. 601–612. This final rule 

will directly affect only individuals. 

Therefore, pursuant to 5 U.S.C. 605(b), 

this final rule is exempt from the initial 

and final regulatory flexibility analysis 

requirements of sections 603 and 604. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance numbers and titles for the 

programs affected by this document are 

64.106, Specially Adapted Housing for 

Disabled Veterans; and 64.118, Veterans 

Housing—Direct Loans for Certain 

Disabled Veterans. 

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 September 13, 2010, for 

publication. 

Lists of Subjects in 38 CFR Part 36 

Condominiums, Housing, Indians, 

Individuals with disabilities, Loan 

programs—housing and community 

development, Loan programs—Indians, 

Loan programs—veterans, Manufactured 

homes, Mortgage insurance, Reporting 

and recordkeeping requirements, 

Veterans. 

Dated: September 13, 2010. 

Robert C. McFeteridge, 

Director, Regulation Policy and Management, 

Office of General Counsel, Department of 

Veterans Affairs. 

■ For the reasons stated in the preamble, 

the Department of Veterans Affairs is 

amending 38 CFR part 36 (subpart C) as 

set forth below. 

PART 36—LOAN GUARANTY 

■ 1. The authority citation for part 36 

continues to read as follows: 

Authority: 38 U.S.C. 501 and as otherwise 

noted. 

■ 2. Revise Subpart C to read as follows: 

Subpart C—Assistance to Certain 

Individuals in Acquiring Specially Adapted 

Housing 

Sec. 

36.4400 Authority. 

36.4401 Definitions. 

36.4402 Grant types. 

36.4403 Subsequent use. 

36.4404 Eligibility for assistance. 

36.4405 Grant approval. 

36.4406 Reimbursement of costs and 

disbursement of grant funds. 

36.4407 Guaranteed and direct loans. 

36.4408 Submission of proof to the 

Secretary. 

36.4409 Delegations of authority. 

36.4410 Supplementary administrative 

action. 

36.4411 Annual adjustments to the 

aggregate amount of assistance available. 

Subpart C—Assistance to Eligible 

Individuals in Acquiring Specially 

Adapted Housing 

§ 36.4400 Authority. 

The Secretary’s authority to provide 

assistance in acquiring specially 

adapted housing is set forth in 38 U.S.C. 

chapter 21. 

(Authority: 38 U.S.C. 501, 2101(d)) 

§ 36.4401 Definitions. 

The following definitions of terms 

apply to this subpart: 

2101(a) grant: A grant authorized 

under 38 U.S.C. 2101(a). 

(Authority: 38 U.S.C. 501, 2101) 

2101(b) grant: A grant authorized 

under 38 U.S.C. 2101(b). 

(Authority: 38 U.S.C. 501, 2101) 

Adapt: To make a housing unit 

suitable to, or fit for, the residential 

living needs of an eligible individual. 

(Authority: 38 U.S.C. 501, 2101) 

Aggregate amount of assistance 

available: The amounts specified at 38 

U.S.C. 2102(d) as adjusted in 

accordance with 38 U.S.C. 2102(e). 

(Authority: 38 U.S.C. 501, 2101, 2102) 

Beneficial property interest: An 

interest deemed by the Secretary as one 

that provides (or will provide) an 

eligible individual a meaningful right to 

occupy a housing unit as a residence. 

(Authority: 38 U.S.C. 501, 2101) 

Braces: Orthopedic appliances, 

including prosthetic devices, used for 

support. 

(Authority: 38 U.S.C. 501, 2101) 

Construction-related cost: An expense 

incurred for the purpose of or directly 

related to building, modifying, or 

adapting a housing unit by using 

specially adapted housing grant 

proceeds. 

(Authority: 38 U.S.C. 501, 2101) 

Disability: A compensable physical 

impairment, as determined by a 

Department of Veterans Affairs rating 

decision, that meets the criteria of 38 

U.S.C. 2101(a)(2) or (b)(2). 

(Authority: 38 U.S.C. 501, 2101) 

Eligible individual: For specially 

adapted housing purposes, a person 

who has served or is currently serving 

in the active military, naval, or air 

service, and who has been determined 

by the Secretary to be eligible for 

benefits pursuant to 38 U.S.C. chapter 

21. 

(Authority: 38 U.S.C. 501, 2101, 2101A) 

Eligible individual’s family: Persons 

related to an eligible individual by 

blood, marriage, or adoption. 

(Authority: 38 U.S.C. 501, 2101, 2102A) 

Housing unit: Any residential unit, 

including all necessary land, 

improvements, and appurtenances, 

together with such movable or special 

fixtures and necessary adaptations as 

are authorized by 38 U.S.C. 1717 and 

2101. For the purposes of this 

definition, movable facilities is defined 

as such exercising equipment and other 

aids as may be allowed or required by 

the Chief Medical Director or designee; 

necessary land is defined as any plot of 

land the cost and area of which are not 

disproportionate to the type of 

improvements thereon and which is in 

keeping with the locality; and special 

fixtures and necessary adaptations is 

defined as construction features which 


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are specially designed to overcome the 

physical limitations of the individual 

beneficiary and which are allowed or 

required by the Chief Medical Director 

or designee as necessary by nature of the 

qualifying disability. 

(Authority: 38 U.S.C. 501, 1717, 2101) 

Ownership interest: An undivided 

property interest that the Secretary 

determines is a satisfactory: 

(1) Fee simple estate; 

(2) Life estate; 

(3) Functional equivalent of a life 

estate, such as that created by a valid 

trust, a long-term lease, or a land 

installment contract that will convert to 

a fee simple estate upon satisfaction of 

the contract’s terms and conditions; 

(4) Ownership of stock or membership 

in a cooperative housing corporation 

entitling the eligible individual to 

occupy for dwelling purposes a single 

family residential unit in a 

development, project, or structure 

owned or leased by such corporation; 

(5) Lease, under the terms of a valid 

and enforceable Memorandum of 

Understanding between a tribal 

organization and the Secretary; or 

(6) Beneficial property interest in a 

housing unit located outside the United 

States. 

(Authority: 38 U.S.C. 501, 2101, 3762) 

Preconstruction cost: An authorized 

expense incurred by an eligible 

individual in anticipation of receiving 

final approval for a specially adapted 

housing grant. 

(Authority: 38 U.S.C. 501, 2101) 

Reimburse: To pay specially adapted 

housing grant funds directly to an 

eligible individual (or an eligible 

individual’s estate) for preconstruction 

costs or for construction-related costs. 

(Authority: 38 U.S.C. 501, 2101) 

Reside: To occupy (including seasonal 

occupancy) as one’s residence. 

(Authority: 38 U.S.C. 501, 2101) 

Secretary: The Secretary of the United 

States Department of Veterans Affairs or 

any employee or agent authorized in 

§ 36.4409 of this part to act on behalf of 

the Secretary. 

(Authority: 38 U.S.C. 501, 2101) 

Specially adapted housing grant: A 

2101(a) grant, 2101(b) grant, or TRA 

grant made to an eligible individual in 

accordance with the requirements of 38 

U.S.C. chapter 21 and this subpart. 

(Authority: 38 U.S.C. 501, 2101) 

Temporary residence adaptations 

grant or TRA grant: A grant, the specific 

requirements and amount of which are 

outlined in 38 U.S.C. 2102A and 

2102(d). 

(Authority: 38 U.S.C. 501, 2101, 2102A) 

§ 36.4402 Grant types. 

(a) 2101(a) grant. The 2101(a) grant 

provides monetary assistance for the 

purpose of acquiring specially adapted 

housing pursuant to one of the 

following plans: 

(1) Where an eligible individual elects 

to construct a dwelling on land to be 

acquired by the eligible individual, the 

Secretary will pay, up to the aggregate 

amount of assistance available for 

2101(a) grants, not more than 50 percent 

of the eligible individual’s total costs for 

acquiring the land and constructing the 

dwelling. 

(2) Where an eligible individual elects 

to construct a dwelling on land already 

owned by the eligible individual, the 

Secretary will pay, up to the aggregate 

amount of assistance available for 

2101(a) grants, not more than the lesser 

of: 

(i) 50 percent of the eligible 

individual’s costs for the land and the 

construction of the dwelling, or 

(ii) 50 percent of the eligible 

individual’s costs for the dwelling, plus 

the full amount of the unpaid balance, 

if any, of the cost to the individual of 

the necessary land. 

(3) Where an eligible individual elects 

to adapt a housing unit already owned 

by the eligible individual, to conform to 

the requirements of the eligible 

individual’s disability, the Secretary 

will pay, up to the aggregate amount of 

assistance available for 2101(a) grants, 

the greater of: 

(i) The eligible individual’s costs for 

making such adaptation(s), or 

(ii) 50 percent of the eligible 

individual’s costs for making such 

adaptation(s), plus the lesser of: 

(A) 50 percent of the eligible 

individual’s costs for acquiring the 

housing unit, or 

(B) The full amount of the unpaid 

balance, if any, of the cost to the 

individual of the housing unit. 

(4) Where an eligible individual has 

already acquired a suitably adapted 

housing unit, the Secretary will pay, up 

to the aggregate amount of assistance 

available for 2101(a) grants, the lesser 

of: 

(i) 50 percent of the eligible 

individual’s cost of acquiring such 

housing unit, or 

(ii) The full amount of the unpaid 

balance, if any, of the cost to the 

individual of the housing unit. 

(b) 2101(b) grant. (1) The 2101(b) 

grant provides monetary assistance for 

the purpose of acquiring specially 

adapted housing pursuant to one of the 

following plans: 

(i) Where an eligible individual elects 

to construct a dwelling on land to be 

acquired by the eligible individual or a 

member of the eligible individual’s 

family; 

(ii) Where an eligible individual elects 

to construct a dwelling on land already 

owned by the eligible individual or a 

member of the eligible individual’s 

family; 

(iii) Where an eligible individual 

elects to adapt a housing unit already 

owned by the eligible individual or a 

member of the eligible individual’s 

family; or 

(iv) Where an eligible individual 

elects to purchase a housing unit that is 

already adapted to the requirements of 

the eligible individual’s disability. 

(2) Regardless of the plan chosen 

pursuant to paragraph (b)(1) of this 

section, the Secretary will pay the lesser 

of: 

(i) The actual cost, or, in the case of 

an eligible individual acquiring a 

housing unit already adapted with 

special features, the fair market value, of 

the adaptations determined by the 

Secretary to be reasonably necessary, or 

(ii) The aggregate amount of 

assistance available for 2101(b) grants. 

(c) TRA grant. The TRA grant 

provides monetary assistance for the 

purpose of adapting a housing unit 

owned by a member of the eligible 

individual’s family, in which the 

eligible individual intends to reside 

temporarily. The Secretary will pay, up 

to the amounts specified at 38 U.S.C. 

2102A(b) for TRA grants, the actual cost 

of the adaptations. 

(d) Duplication of benefits. (1) If an 

individual is determined eligible for a 

2101(a) grant, he or she may not 

subsequently receive a 2101(b) grant. 

(2) If an individual is determined 

eligible for a 2101(b) grant, and becomes 

eligible for a 2101(a) grant, he or she 

may receive 2101(a) grants and TRA 

grants up to the aggregate amount of 

assistance available for 2101(a) grants. 

However, any 2101(b) or TRA grants 

received by the individual before he or 

she was determined eligible for the 

2101(a) grant will count towards the 

three grant limit in § 36.4403. 

(3) If the Secretary has provided 

assistance to an eligible individual 

under 38 U.S.C. 1717, the Secretary will 

not provide assistance under this 

subpart that would result in duplicate 

payments for the same adaptations. 

However, nothing in this subpart 

prohibits an eligible individual from 

utilizing the assistance authorized 

under 38 U.S.C. 1717 and 38 U.S.C. 


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chapter 21 simultaneously, provided 

that no duplicate payments result. 

(Authority: 38 U.S.C. 2102, 2102A, 2104) 

§ 36.4403 Subsequent use. 

An eligible individual may receive up 

to three grants of assistance under 38 

U.S.C. chapter 21, subject to the 

following limitations: 

(a) The aggregate amount of assistance 

available to an eligible individual for 

2101(a) grant and TRA grant usage will 

be limited to the aggregate amount of 

assistance available for 2101(a) grants; 

(b) The aggregate amount of assistance 

available to an eligible individual for 

2101(b) grant and TRA grant usage will 

be limited to the aggregate amount of 

assistance available for 2101(b) grants; 

(c) The TRA grant may only be 

obtained once and will be counted as 

one of the three grant usages; and 

(d) Funds from subsequent 2101(a) 

grant or 2101(b) grant usages may only 

pay for reimbursing specially adapted 

housing-related costs incurred on or 

after June 15, 2006 or the date on which 

the eligible individual is conditionally 

approved for subsequent assistance, 

whichever is later. 

(Authority: 38 U.S.C. 2102, 2102A) 

(The Office of Management and 

Budget has approved the information 

collection provisions in this section 

under control number 2900–0132.) 

§ 36.4404 Eligibility for assistance. 

(a) Disability requirements. (1) The 

2101(a) grant is available to individuals 

with permanent and total serviceconnected disability who have been 

rated as being entitled to compensation 

under 38 U.S.C. chapter 11 for any of 

the following conditions: 

(i) Loss, or loss of use, of both lower 

extremities so as to preclude locomotion 

without the aid of braces, crutches, 

canes, or a wheelchair; 

(ii) Blindness in both eyes having 

only light perception, plus loss or loss 

of use of one lower extremity; 

(iii) Loss, or loss of use, of one lower 

extremity, together with— 

(A) Residuals of organic disease or 

injury; or 

(B) The loss or loss of use of one 

upper extremity, which so affect the 

functions of balance or propulsion as to 

preclude locomotion without the aid of 

braces, crutches, canes, or a wheelchair; 

(iv) Loss, or loss of use, of both upper 

extremities so as to preclude use of the 

arms at or above the elbows; or 

(v) Any other injury identified as 

eligible for assistance under 38 U.S.C. 

§ 2101(a). 

(2) The 2101(b) grant is available to 

individuals with permanent and total 

service-connected disability who have 

been rated as being entitled to 

compensation under 38 U.S.C. chapter 

11 for any of the following conditions: 

(i) Blindness in both eyes with 5/200 

visual acuity or less; 

(ii) Anatomical loss, or loss of use, of 

both hands; or 

(iii) Any other injury identified as 

eligible for assistance under 38 U.S.C. 

§ 2101(b). 

(3) The TRA grant is available to 

individuals with permanent and total 

service-connected disability who have 

been rated as being entitled to 

compensation under 38 U.S.C. chapter 

11 for any of the conditions described 

under paragraph (a)(1) of this section for 

the 2101(a) grant or paragraph (a)(2) of 

this section for the 2101(b) grant. 

(b) Feasibility and suitability 

requirements. (1) In order for an 

individual to be eligible for 2101(a) 

grant assistance, the Secretary must 

determine that: 

(i) It is medically feasible for the 

individual to reside outside of an 

institutional setting; 

(ii) It is medically feasible for the 

individual to reside in the proposed 

housing unit and in the proposed 

locality; 

(iii) The nature and condition of the 

proposed housing unit are suitable for 

the individual’s residential living needs; 

and 

(iv) The cost of the proposed housing 

unit bears a proper relation to the 

individual’s present and anticipated 

income and expenses. 

(2) In order for an individual to be 

eligible for 2101(b) grant assistance, the 

Secretary must determine that: 

(i) The individual is residing in and 

reasonably intends to continue residing 

in a housing unit owned by the 

individual or a member of the 

individual’s family; or 

(ii) If the individual’s housing unit is 

to be constructed or purchased, the 

individual will be residing in and 

reasonably intends to continue residing 

in a housing unit owned by the 

individual or a member of the 

individual’s family. 

(Authority: 38 U.S.C. 501, 2101, 2102, 

2102A) 

§ 36.4405 Grant approval. 

(a) Conditional approval. (1) The 

Secretary may provide written 

notification to an eligible individual of 

conditional approval of a specially 

adapted housing grant if the Secretary 

has determined that: 

(i) Disability requirements have been 

satisfied pursuant to § 36.4404(a); 

(ii) Feasibility and suitability 

requirements have been satisfied 

pursuant to § 36.4404(b); and 

(iii) The eligible individual has not 

exceeded the usage or dollar limitations 

prescribed by §§ 36.4402(d) and 

36.4403. 

(2) Once conditional approval has 

been granted, the Secretary may 

authorize, in writing, an eligible 

individual to incur certain 

preconstruction costs pursuant to 

§ 36.4406. 

(b) Final approval. In order for an 

individual to obtain final approval for a 

specially adapted housing grant, the 

Secretary must determine that the 

following property requirements are 

met: 

(1) Proposed adaptations. The plans 

and specifications of the proposed 

adaptations demonstrate compliance 

with minimum property and design 

requirements of the specially adapted 

housing program. 

(2) Ownership. 

(i) In the case of 2101(a) grants, the 

eligible individual must have, or 

provide satisfactory evidence that he or 

she will acquire, an ownership interest 

in the housing unit. 

(ii) In the case of 2101(b) grants, the 

eligible individual or a member of the 

eligible individual’s family must have, 

or provide satisfactory evidence that he 

or she will acquire, an ownership 

interest in the housing unit. 

(iii) In the case of TRA grants: 

(A) A member of the eligible 

individual’s family must have, or 

provide satisfactory evidence that he or 

she will acquire, an ownership interest 

in the housing unit, and 

(B) The eligible individual and the 

member of the eligible individual’s 

family who has or acquires an 

ownership interest in the housing unit 

must sign a certification as to the 

likelihood of the eligible individual’s 

temporary occupancy of such residence. 

(iv) If the ownership interest in the 

housing unit is or will be vested in the 

eligible individual and another person, 

the Secretary will not for that reason 

reduce by percentage of ownership the 

amount of a specially adapted housing 

grant. However, to meet the ownership 

requirement for final approval of a 

specially adapted housing grant, the 

eligible individual’s ownership interest 

must be of sufficient quantum and 

quality, as determined by the Secretary, 

to ensure the eligible individual’s quiet 

enjoyment of the property. 

(3) Certifications. The eligible 

individual must certify, in such form as 

the Secretary will prescribe, that: 

(i) Neither the eligible individual, nor 

anyone authorized to act for the eligible 


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individual, will refuse to sell or rent, 

after receiving a bona fide offer, or 

refuse to negotiate for the sale or rental 

of, or otherwise make unavailable or 

deny the housing unit acquired by this 

benefit, to any person because of race, 

color, religion, sex, familial status, 

disability, or national origin; 

(ii) The eligible individual, and 

anyone authorized to act for the eligible 

individual, recognizes that any 

restrictive covenant on the housing unit 

relating to race, color, religion, sex, 

familial status, disability, or national 

origin is illegal and void, and any such 

covenant is specifically disclaimed; and 

(iii) The eligible individual, and 

anyone authorized to act for the eligible 

individual, understands that civil action 

for preventative relief may be brought 

by the Attorney General of the United 

States in any appropriate U.S. District 

Court against any person responsible for 

a violation of the applicable law. 

(4) Flood insurance. The eligible 

individual’s housing unit, if it is or 

becomes located in an area identified by 

the Federal Emergency Management 

Agency as having special flood hazards 

and in which flood insurance has been 

made available under the National 

Flood Insurance Act, as amended, must 

be covered by flood insurance. The 

amount of flood insurance must be at 

least equal to the lesser of the full 

insurable value of the housing unit or 

the maximum limit of coverage 

available for the particular type of 

housing unit under the National Flood 

Insurance Act, as amended. The 

Secretary will not approve any financial 

assistance for the acquisition or 

construction of a housing unit located in 

an area identified by the Federal 

Emergency Management Agency as 

having special flood hazards unless the 

community in which such area is 

situated is then participating in the 

National Flood Insurance Program 

(Authority: 38 U.S.C. 501, chapter 21, 42 

U.S.C. 4012a, 4106(a)) 

(5) Geographical limits. Any real 

property purchased, constructed, or 

adapted with the proceeds of a specially 

adapted housing grant must be located: 

(i) Within the United States, which, 

for purposes of 38 U.S.C. chapter 21, 

includes the several States, Territories, 

and possessions, including the District 

of Columbia, and the Commonwealths 

of Puerto Rico and the Northern 

Mariana Islands; or, 

(ii) If outside the United States, in a 

country or political subdivision which 

allows individuals to have or acquire a 

beneficial property interest, and in 

which the Secretary, in his or her 

discretion, has determined that it is 

reasonably practicable for the Secretary 

to provide assistance in acquiring 

specially adapted housing. 

(Authority: 38 U.S.C. 2101, 2101A, 2102A) 

(The Office of Management and 

Budget has approved the information 

collection provisions in this section 

under control numbers 2900–0031, 

2900–0132, and 2900–0300.) 

§ 36.4406 Reimbursement of costs and 

disbursement of grant funds. 

(a) After providing conditional 

approval of a specially adapted housing 

grant for an eligible individual pursuant 

to § 36.4405, the Secretary may 

authorize the incurrence, prior to 

obtaining final specially adapted 

housing grant approval, of 

preconstruction costs of the types and 

subject to the limits specified in this 

paragraph. 

(1) Preconstruction costs to be 

incurred may not exceed 20 percent of 

the eligible individual’s aggregate 

amount of assistance available, unless 

the individual is authorized by the 

Secretary in writing to incur specific 

preconstruction costs in excess of this 

20 percent limitation. Preconstruction 

costs may include the following items: 

(i) Architectural services employed 

for preparation of building plans and 

specifications. 

(ii) Land surveys. 

(iii) Attorneys’ and other legal fees. 

(iv) Other costs or fees necessary to 

plan for specially adapted housing grant 

use, as determined by the Secretary. 

(2) If the Secretary authorizes final 

approval, the Secretary will pay out of 

the specially adapted housing grant the 

preconstruction costs that the Secretary 

authorized in advance. If the specially 

adapted housing grant process is 

terminated prior to final approval, 

preconstruction costs incurred that the 

Secretary authorized in advance will be 

reimbursed to the eligible individual, or 

the eligible individual’s estate pursuant 

to paragraph(c) of this section, but will 

be deducted from the aggregate amount 

of assistance available and the 

reimbursement will constitute one of 

the three permitted grant usages (see 

§ 36.4403). 

(b) The Secretary will determine a 

method of disbursement that is 

appropriate and advisable in the interest 

of the eligible individual and the 

Government, and will pay the specially 

adapted housing grant accordingly. 

Disbursement of specially adapted 

housing grant proceeds generally will be 

made to third parties who have 

contracted with the veteran, to an 

escrow agent, or to the eligible 

individual’s lender, as the Secretary 

deems appropriate. If the Secretary 

determines that it is appropriate and 

advisable, the Secretary may disburse 

specially adapted housing grant funds 

directly to an eligible individual where 

the eligible individual has incurred 

authorized preconstruction or 

construction-related costs and paid for 

such authorized costs using personal 

funds. 

(c) Should an eligible individual die 

before the Secretary disburses the full 

specially adapted housing grant, the 

eligible individual’s estate must submit 

to the Secretary all requests for 

reimbursement within one year of the 

date the Loan Guaranty Service learns of 

the eligible individual’s death. Except 

where the Secretary determines that 

equity and good conscience require 

otherwise, the Secretary will not 

reimburse an eligible individual’s estate 

for a request that has not been received 

by the Department of Veterans Affairs 

within this timeframe. 

(Authority: 38 U.S.C. 2101(d)) 

§ 36.4407 Guaranteed and direct loans. 

(a) In any case where, in addition to 

using the benefits of 38 U.S.C. chapter 

21, the eligible individual will use his 

or her entitlement to the loan guaranty 

benefits of 38 U.S.C. chapter 37, the 

complete transaction must be in accord 

with applicable regulations found in 

this part. 

(b) In any case where, in addition to 

using the benefits of 38 U.S.C. chapter 

21, the eligible individual will use a 

direct loan under 38 U.S.C. 3711(i), the 

complete transaction must be in accord 

with the requirements of § 36.4503 and 

the loan must be secured by the same 

housing unit to be purchased, 

constructed, or adapted with the 

proceeds of the specially adapted 

housing grant. 

(c) In any case where, in addition to 

using the benefits of 38 U.S.C. chapter 

21, the eligible individual will use the 

Native American Direct Loan benefit 

under 38 U.S.C. chapter 37, subchapter 

V, the eligible individual’s ownership 

interest in the housing unit must 

comport with the requirements found in 

§§ 36.4501, 36.4512, and 36.4527 and in 

the tribal documents approved by the 

Secretary, which include, but may not 

be limited to, the Memorandum of 

Understanding, the residential lease of 

tribal-owned land, the tribal lending 

ordinances, and any relevant tribal 

resolutions. 

(Authority: 38 U.S.C. 2101(d), 3711(i), 3762) 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
56880 Federal Register / Vol. 75, No. 180 / Friday, September 17, 2010 / Rules and Regulations 

§ 36.4408 Submission of proof to the 

Secretary. 

The Secretary may, at any time, 

require submission of such proof of 

costs and other matters as the Secretary 

deems necessary. 

(Authority: 38 U.S.C. 501, 2101(d)) 

(The Office of Management and 

Budget has approved the information 

collection provisions in this section 

under control numbers 2900–0031 and 

2900–0300.) 

§ 36.4409 Delegations of authority. 

(a) Each employee of the Department 

of Veterans Affairs appointed to or 

lawfully filling any of the following 

positions is hereby delegated authority, 

within the limitations and conditions 

prescribed by law, to exercise the 

powers and functions of the Secretary 

with respect to assisting eligible 

individuals in acquiring specially 

adapted housing: 

(1) Under Secretary for Benefits. 

(2) Director, Loan Guaranty Service. 

(3) Deputy Director, Loan Guaranty 

Service. 

(4) Assistant Director, Loan Policy 

and Valuation. 

(5) Chief, Specially Adapted Housing, 

Loan Guaranty Service. 

(6) Director, VA Medical Center. 

(7) Director, VA Regional Office. 

(8) Loan Guaranty Officer. 

(9) Assistant Loan Guaranty Officer. 

(b) Nothing in this section will be 

construed to authorize the 

determination of basic eligibility or 

medical feasibility under § 36.4404(a), 

(b)(1)(i), or (b)(1)(ii) by any employee 

designated in this section, except as 

otherwise authorized. 

(Authority: 38 U.S.C. 501, 512, ch. 21) 

§ 36.4410 Supplementary administrative 

action. 

Subject to statutory limitations and 

conditions prescribed in title 38, U.S.C., 

the Secretary may take such action as 

may be necessary or appropriate to 

relieve undue prejudice to an eligible 

individual or a third party contracting 

or dealing with such eligible individual 

which might otherwise result. 

(Authority: 38 U.S.C. 501, 2101(d)) 

§ 36.4411 Annual adjustments to the 

aggregate amount of assistance available. 

(a) On October 1 of each year, the 

Secretary will increase the aggregate 

amounts of assistance available for 

grants authorized under 38 U.S.C. 

2101(a) and 2101(b). Such increase will 

be equal to the percentage by which the 

Turner Building Cost Index for the most 

recent calendar year exceeds that of the 

next preceding calendar year. 

(b) Notwithstanding paragraph (a) of 

this section, if the Turner Building Cost 

Index for the most recent full calendar 

year is equal to or less than the next 

preceding calendar year, the percentage 

increase will be zero. 

(c) No later than September 30 of each 

year, the Secretary will publish in the 

Federal Register the aggregate amounts 

of assistance available for the upcoming 

fiscal year. 

(Authority: 38 U.S.C. 2102(e)) 

[FR Doc. 2010–23277 Filed 9–16–10; 8:45 am] 

BILLING CODE 8320–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 9 and 721 

[EPA–HQ–OPPT–2008–0252; FRL–8835–5] 

RIN 2070–AB27 

Multi-Walled Carbon Nanotubes and 

Single-Walled Carbon Nanotubes; 

Significant New Use Rules 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: EPA is issuing significant new 

use rules (SNURs) under section 5(a)(2) 

of the Toxic Substances Control Act 

(TSCA) for two chemical substances 

which were the subject of 

Premanufacture Notices (PMNs). The 

two chemical substances are identified 

generically as multi-walled carbon 

nanotubes (MWCNT) (PMN P–08–177) 

and single-walled carbon nanotubes 

(SWCNT) (PMN P–08–328). This action 

requires persons who intend to 

manufacture, import, or process either 

of these two chemical substances for a 

use that is designated as a significant 

new use by this final rule to notify EPA 

at least 90 days before commencing that 

activity. EPA believes that this action is 

necessary because these chemical 

substances may be hazardous to human 

health and the environment. The 

required notification would provide 

EPA with the opportunity to evaluate 

the intended use and, if necessary, to 

prohibit or limit that activity before it 

occurs. 

DATES: This final rule is effective 

October 18, 2010. 

ADDRESSES: EPA has established a 

docket for this action under docket 

identification (ID) number EPA–HQ– 

OPPT–2008–0252. All documents in the 

docket are listed in the docket index 

available at http://www.regulations.gov. 

Although listed in the index, some 

information is not publicly available, 

e.g., Confidential Business Information 

(CBI) or other information whose 

disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, is not placed on 

the Internet and will be publicly 

available only in hard copy form. 

Publicly available docket materials are 

available in the electronic docket at 

http://www.regulations.gov, or, if only 

available in hard copy, at the OPPT 

Docket. The OPPT Docket is located in 

the EPA Docket Center (EPA/DC) at Rm. 

3334, EPA West Bldg., 1301 

Constitution Ave., NW., Washington, 

DC. The EPA/DC Public Reading Room 

hours of operation are 8:30 a.m. to 4:30 

p.m., Monday through Friday, excluding 

legal holidays. The telephone number of 

the EPA/DC Public Reading Room is 

(202) 566–1744, and the telephone 

number for the OPPT Docket is (202) 

566–0280. Docket visitors are required 

to show photographic identification, 

pass through a metal detector, and sign 

the EPA visitor log. All visitor bags are 

processed through an X-ray machine 

and subject to search. Visitors will be 

provided an EPA/DC badge that must be 

visible at all times in the building and 

returned upon departure. 

FOR FURTHER INFORMATION CONTACT: For 

technical information contact: Jim 

Alwood, Chemical Control Division 

(7405M), Office of Pollution Prevention 

and Toxics, Environmental Protection 

Agency, 1200 Pennsylvania Ave., NW., 

Washington, DC 20460–0001; telephone 

number: (202) 564–8974; e-mail address: 

alwood.jim@epa.gov. 

For general information contact: The 

TSCA-Hotline, ABVI-Goodwill, 422 

South Clinton Ave., Rochester, NY 

14620; telephone number: (202) 554– 

1404; e-mail address: TSCAHotline@epa.gov. 

SUPPLEMENTARY INFORMATION: 

I. Does this Action Apply to Me? 

You may be potentially affected by 

this action if you manufacture, import, 

process, or use either of the chemical 

substances contained in this final rule: 

Multi-walled carbon nanotubes 

(MWCNT) (PMN P–08–177) and singlewalled carbon nanotubes (SWCNT) 

(PMN P–08–328). Potentially affected 

entities may include, but are not limited 

to: 

• Manufacturers, importers, or 

processors of one or more subject 

chemical substances (NAICS codes 325 

and 324110), e.g., chemical 

manufacturing and petroleum refineries. 

This listing is not intended to be 

exhaustive, but rather provides a guide 

for readers regarding entities likely to be 

affected by this action. Other types of 


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