71658 Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 17 

RIN 2900–AO17 

Home Improvements and Structural 

Alterations (HISA) Benefits Program 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: This rulemaking adopts as 

final, without change, a proposed rule 

creating regulations for the Home 

Improvements and Structural 

Alterations (HISA) benefits program. 

Through the HISA benefits program, VA 

provides monetary benefits to disabled 

veterans for necessary home 

improvements and alterations. An 

increase in the HISA benefits limit was 

authorized by the Caregivers and 

Veterans Omnibus Health Services Act 

of 2010. This rulemaking codifies 

regulations governing the HISA benefits 

program and incorporates the increase 

in HISA benefits authorized by the 2010 

Act. 

DATES: Effective Date: This rule is 

effective January 2, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Shayla Mitchell, Program Analyst, 

Rehabilitation and Prosthetic Services 

(10P4R), Veterans Health 

Administration, Department of Veterans 

Affairs, 810 Vermont Avenue NW., 

Washington, DC 20420, (202) 461–0366 

(this is not a toll-free number). 

SUPPLEMENTARY INFORMATION: On 

November 20, 2013, VA published a 

proposed rule in the Federal Register 

(78 FR 69614) that would create 

regulations governing the HISA benefits 

program. VA invited the public to 

submit comments on the proposed 

rulemaking on or before January 21, 

2014. VA received comments from four 

members of the public. Based on the 

rationale in the proposed rule and in 

this document, VA is adopting the 

proposed rule, with no changes. 

Section 1717(a)(1) of title 38, United 

States Code, authorizes the Secretary of 

Veterans Affairs (Secretary) to furnish 

home health services as part of medical 

services provided to veterans. As a part 

of home health services, 38 U.S.C. 

1717(a)(2) authorizes VA to furnish 

improvements and structural alterations 

to the homes of disabled veterans ‘‘only 

as necessary to assure the continuation 

of treatment for the veteran’s disability 

or to provide access to the home or to 

essential lavatory and sanitary 

facilities.’’ Section 1717(d) extends 

these same benefits to certain 

servicemembers. 

VA proposed to establish regulations 

to govern the HISA benefits program 

and to codify an increase in HISA 

benefit limits enacted in the 2010 Act, 

Public Law 111–163. Additionally, VA 

proposed to streamline the application 

process; simplify, reduce, or eliminate 

administrative burdens on both VA and 

HISA beneficiaries; and generally 

improve the administration of the 

program. 

During the comment period, VA 

received four public comments. A 

consideration of these comments 

follows. 

One commenter recommended ‘‘more 

restrictions on contractors and vendors 

with more bids coming from the 

community.’’ VA believes the process 

we proposed is consistent with this 

recommendation because veterans will 

have complete control over the choice of 

contractors who complete the 

improvements or structural alterations 

to their homes. VA will no longer 

require bids from multiple contractors, 

nor will VA be involved in reviewing 

these bids as part of the application, 

under the new HISA application and 

approval procedures in §§ 17.3120 and 

17.3125. The commenter may have been 

making reference to geographic 

restrictions on contractors by 

recommending more bids from the 

community. This regulation puts no 

geographic restrictions on the 

contractors that a veteran can choose for 

a HISA project. The same commenter 

recommended that contractors provide 

‘‘more line items with actual costs 

listed.’’ VA will require an itemized 

estimate of costs for the improvement or 

structural alteration under 

§ 17.3120(a)(4). Because veterans have 

full control over the selection of their 

contractors, they may request additional 

details about the costs of a project as 

they wish. VA makes no changes to the 

regulation based on this comment. 

Another commenter recommended 

that HISA applications be evaluated by 

occupational therapists to determine 

whether lower-cost options to 

accommodate veterans’ needs have been 

evaluated, and to determine exactly 

what modifications are required to meet 

veterans’ needs. The commenter notes 

that occupational therapists are trained 

to determine whether certain structural 

adaptations are appropriate for a 

specific space and to assess adaptive 

equipment, home safety, and 

environmental modifications. VA 

believes that these regulations and HISA 

program policies are consistent with 

this recommendation. VA medical 

facilities employ occupational 

therapists, physical therapists, and 

kiniseiotherapists, as well as blind 

rehabilitation specialists, who evaluate 

veterans applying for HISA benefits. 

This evaluation typically occurs when a 

physician documents within the 

veteran’s prescription that there is a 

clinical need for that type of an 

evaluation. These evaluations are 

usually performed at the local VA 

medical facility, though some are 

performed in veterans’ homes, 

depending on individual veterans’ 

needs and the availability of certain 

therapeutic evaluation facilities at VA 

medical facilities. The same commenter 

expressed some concern over 

prosthetics program representatives 

inspecting HISA applicants’ homes, as 

in §§ 17.3120(b) and 17.3130(c)(1), 

because they do not have the same 

training and expertise as occupational 

therapists. This comment does not 

reflect VA’s procedures. Prosthetics 

representatives will only inspect 

veterans’ homes to ensure that the 

improvements or structural alterations 

proposed in a beneficiary’s application 

are feasible, or that they have been 

completed as described in the 

application so VA can approve the final 

grant payment. These inspections relate 

to administration of the grant and 

protecting grant funds. Prosthetics 

representatives will not be inspecting 

homes to make decisions about whether 

the improvements or structural 

adaptations will provide medical 

benefits to the veteran, because those 

determinations are made by VA’s 

clinical staff, such as physicians, 

kinesiotherapists, and occupational and 

physical therapists. VA makes no 

changes based on this comment. 

Two commenters disagreed with VA’s 

statement in the proposed rule that the 

HISA benefit is not a construction 

benefit and that VA does not have any 

responsibility for ensuring the structural 

integrity or code compliance of 

alterations. VA stated in the proposed 

rule that our inspections of HISA grant 

sites or construction under 

§§ 17.3120(b) and 17.3130(c)(1) should 

not be confused with, or interpreted as, 

code enforcement or structural integrity 

inspections. The commenters 

recommended that VA inform HISA 

beneficiaries about existing construction 

standards so beneficiaries can provide 

them to their contractors. Specifically, 

the commenters recommend referring 

beneficiaries to the accessibility 

guidelines in the Americans with 

Disabilities Act, to section 504 of the 

Rehabilitation Act, or recommends that 

VA give beneficiaries the Specially 

Adapted Housing grant construction 

manual. The Specially Adapted Housing 

(SAH) program is administered by the 


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Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations 71659 

Veterans Benefits Administration under 

38 U.S.C. 2101 through 2107 and is 

distinct from the HISA program. This 

recommendation reflects VA’s 

regulations and HISA policy, in part. 

VA prescribes the specific structural 

adaptations or improvements that 

veterans need before veterans apply for 

a HISA grant. That process ensures that 

the HISA grant provides veterans with 

resources that are suited to their 

abilities. When appropriate, prosthetics 

representatives may refer HISA 

beneficiaries and contractors to the SAH 

program minimum property 

requirements for construction projects, 

if the type of improvement or structural 

alteration being done with HISA grant 

funds calls for such guidance. Issues of 

code compliance and the structural 

soundness of construction, however, are 

different. VA does not have expertise in 

the building codes of each jurisdiction 

in which HISA benefits are used. 

Contractors performing the work on 

HISA grants must take responsibility for 

the structural soundness of the 

construction work they perform and for 

complying with their local building 

codes, and HISA grant funds may be 

used to ensure that structural alterations 

or improvements are sound and comply 

with building codes. We stress that VA’s 

inspections are for the administrative 

purposes of ensuring that an 

improvement or structural alteration 

detailed in an application may be 

completed at the property, or that a 

project has been completed and 

therefore VA should make a final 

payment. VA makes no changes to the 

regulation based on these comments. 

One commenter objected to the 

proposed payment process, stating that 

it would add more steps to the 

application process and increase the 

risk of fraud. The commenter stated that 

veterans would need to submit 

additional forms for advance payments, 

then submit additional forms for final 

payment, instead of VA paying a sum 

directly to the vendor. VA disagrees 

with the commenter’s characterization 

of the proposed rule. Requests for 

advance payments of HISA grant funds 

will be included in the same application 

that all veterans must submit to apply 

for a HISA grant under proposed 

§ 17.3120(a)(2), so there would be no 

additional paperwork required to 

request advance payments. Veterans are 

currently required to submit 

documentation to receive final 

payments, and will continue to be 

required to do so under § 17.3130(b); 

there is, therefore, no additional 

paperwork associated with that 

requirement. VA believes that the 

process we have proposed for veterans 

to request advance payments of HISA 

grant funds creates minimal additional 

burden for veterans, and that the 

benefits of making these funds available 

earlier in the process will outweigh any 

burden. The same commenter stated 

that the proposed rule is unclear on 

whether prepayments would be made to 

the veteran or the contractor. The 

commenter said that these prepayments 

would increase the risk of funds being 

lost or abused, apparently if the veteran 

receives the advanced funds, or would 

increase the risk of jeopardizing grant 

funds if a contractor is unreliable, 

apparently if the advance funds are paid 

directly to the contractor. The 

commenter believes these risks could 

lead to increased legal fees for VA if 

funds are abused, apparently to recover 

grant funds from veterans or contractors 

who have misused prepayments. VA 

disagrees that the process we have 

proposed for making prepayments 

creates significant increased risks of 

fraud or abuse. We do not agree that 

veterans cannot be trusted to receive 

funds directly as the HISA grant 

beneficiaries, nor do we believe that 

directly paying veterans creates any 

greater (or less) likelihood of misuse 

than directly paying the contractor or 

vendor who performs the work. VA 

acknowledged in the proposed rule that 

making advance payments could lead to 

abuse. The application form, VA Form 

10–0103, will require beneficiaries who 

request advance payments to commit to 

using advance funds specifically for the 

HISA project, and to submit a request 

for final payment upon completion the 

project. VA would have legal authority 

to take action against veterans in such 

cases. If a veteran who receives an 

advance payment of HISA funds pays a 

contractor to perform work, but the 

contractor fails to do so, VA will not 

take action against the veteran. With 

these safeguards, we think there is 

minimal risk of fraud, abuse, or 

increased fees related to legal actions 

over advance payments. The commenter 

recommended, apparently as an 

alternative to the advance payment 

process, that VA dedicate a prosthetics 

representative to each HISA grant to 

help veterans complete the application 

process instead. VA prosthetics 

representatives do review each HISA 

application and provide assistance to 

veterans as needed to complete the 

application process. VA makes no 

changes based on this comment. 

VA received several comments 

recommending that we increase the 

deadline for submitting a final payment 

request under § 17.3130(b) from 60 days 

to at least 90 days, with one commenter 

recommending 120 days. Based on our 

administration of the program, we 

believe that 60 days is sufficient time to 

complete a HISA grant project. By the 

time VA approves the HISA grant 

application or issues an advance 

payment, most of the project plan is 

already in place: the needed 

improvement or structural alteration 

must be prescribed and the contractor 

must be identified so the veteran could 

submit an itemized estimate of costs 

with their complete application under 

§ 17.3120. Most projects that use HISA 

grants should be able to be completed 

within 60 days of securing the 

information in the HISA grant 

application. There is no penalty if the 

project extends beyond 60 days, either; 

the regulation at § 17.3130(d) describes 

the process by which VA will remind 

veterans to submit a final payment 

request or request more time to 

complete the application. In this 

manner, VA has given veterans 

flexibility to complete a HISA project, 

while also providing a reasonable 

deadline for ensuring that the HISA 

program can be administered efficiently 

and that government funds distributed 

as advance payments are being used 

properly. VA makes no changes based 

on these comments, but makes on 

technical correction. The undesignated 

center heading and §§ 17.3100 through 

17.3130 are added following § 17.2000, 

and not following § 17.1008 as written 

in the proposed rule. 

Effect of Rulemaking 

Title 38 of the Code of Federal 

Regulations, as revised by this final 

rulemaking, represents VA’s 

implementation of its legal authority on 

this subject. Other than future 

amendments to this regulation or 

governing statutes, no contrary guidance 

or procedures are authorized. All 

existing or subsequent VA guidance 

must be read to conform with this 

rulemaking if possible or, if not 

possible, such guidance is superseded 

by this rulemaking. 

Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(44 U.S.C. 3507) requires that VA 

consider the impact of paperwork and 

other information collection burdens 

imposed on the public. Under 44 U.S.C. 

3507(a), an agency may not collect or 

sponsor the collection of information, 

nor may it impose an information 

collection requirement unless it 

displays a currently valid Office of 

Management and Budget (OMB) control 

number. See also 5 CFR 1320.8(b)(3)(vi). 


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This final rule will impose the 

following amended information 

collection requirements. HISA 

beneficiaries will be required to submit 

VA Form 10–0103 (which OMB 

previously approved and assigned OMB 

control number 2900–0188), a medical 

prescription, a statement from the 

homeowner (notarized, if the 

homeowner is not the beneficiary), an 

estimate of the costs for the 

improvement or structural alteration, 

and a color photograph of the 

unimproved site. As required by the 

Paperwork Reduction Act of 1995, VA 

has submitted these information 

collections to OMB for its review. OMB 

approved the amended information 

collection requirements associated with 

the final rule under existing OMB 

control number 2900–0188. 

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 not cause a significant economic 

impact on construction companies and 

their suppliers since only a small 

portion of the business of such entities 

concerns VA beneficiaries. Therefore, 

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

rulemaking is exempt from the initial 

and final regulatory flexibility analysis 

requirements of 5 U.S.C. sections 603 

and 604. 

Executive Orders 12866 and 13563 

Executive Orders 12866 and 13563 

direct agencies to assess the costs and 

benefits of available regulatory 

alternatives and, when regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, and other advantages; 

distributive impacts; and equity). 

Executive Order 13563 (Improving 

Regulation and Regulatory Review) 

emphasizes the importance of 

quantifying both costs and benefits, 

reducing costs, harmonizing rules, and 

promoting flexibility. Executive Order 

12866 (Regulatory Planning and 

Review) defines a ‘‘significant 

regulatory action,’’ requiring review by 

the Office of Management and Budget 

(OMB), unless OMB waives such 

review, as ‘‘any regulatory action that is 

likely to result in a rule that may: (1) 

Have an annual effect on the economy 

of $100 million or more or adversely 

affect in a material way the economy, a 

sector of the economy, productivity, 

competition, jobs, the environment, 

public health or safety, or State, local, 

or tribal governments or communities; 

(2) Create a serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency; (3) 

Materially alter the budgetary impact of 

entitlements, grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) Raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in this Executive 

Order.’’ 

The economic, interagency, 

budgetary, legal, and policy 

implications of this final rule have been 

examined, and it has been determined 

not to be a significant regulatory action 

under Executive Order 12866. VA’s 

impact analysis can be found as a 

supporting document at http://

www.regulations.gov, usually within 48 

hours after the rulemaking document is 

published. Additionally, a copy of the 

rulemaking and its impact analysis are 

available on VA’s Web site at http://

www.va.gov/orpm/, by following the 

link for ‘‘VA Regulations Published 

From FY 2004 Through Fiscal Year to 

Date.’’ 

Unfunded Mandates 

The Unfunded Mandates Reform Act 

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

agencies prepare an assessment of 

anticipated costs and benefits before 

issuing any rule that may result in the 

expenditure by State, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $100 million or more 

(adjusted annually for inflation) in any 

one year. This final rule will have no 

such effect on State, local, and tribal 

governments, or on the private sector. 

Catalog of Federal Domestic Assistance 

The Catalog of Federal Domestic 

Assistance program numbers and titles 

for this rule are as follows: 64.005, 

Grants to States for Construction of State 

Home Facilities; 64.007, Blind 

Rehabilitation Centers; 64.008, Veterans 

Domiciliary Care; 64.009, Veterans 

Medical Care Benefits; 64.010, Veterans 

Nursing Home Care; 64.014, Veterans 

State Domiciliary Care; 64.015, Veterans 

State Nursing Home Care; 64.018, 

Sharing Specialized Medical Resources; 

64.019, Veterans Rehabilitation Alcohol 

and Drug Dependence; 64.022, Veterans 

Home Based Primary Care; and 64.024, 

VA Homeless Providers Grant and Per 

Diem Program. 

Signing Authority 

The Secretary of Veterans Affairs, or 

designee, approved this document and 

authorized the undersigned to sign and 

submit the document to the Office of the 

Federal Register for publication 

electronically as an official document of 

the Department of Veterans Affairs. Jose 

D. Riojas, Chief of Staff, Department of 

Veterans Affairs, approved this 

document on November 24, 2014, for 

publication. 

List of Subjects in 38 CFR Part 17 

Administrative practice and 

procedure, Alcohol abuse, Alcoholism, 

Claims, Day care, Dental health, Drug 

abuse, Foreign relations, Government 

contracts, Grant programs-health, Grant 

programs-veterans, Health care, Health 

facilities, Health professions, Health 

records, Homeless, Medical and dental 

schools, Medical devices, Medical 

research, Mental health programs, 

Nursing homes, Philippines, Reporting 

and recordkeeping requirements, 

Scholarships and fellowships, Travel 

and transportation expenses, Veterans. 

Dated: November 26, 2014. 

William F. Russo, 

Acting Director, Office of Regulation Policy 

& Management, Office of the General Counsel, 

U.S. Department of Veterans Affairs. 

For the reasons set out in the 

preamble, VA amends 38 CFR part 17 as 

follows: 

PART 17—MEDICAL 

■ 1. The authority citation for part 17 

continues to read as follows: 

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

specific sections. 

■ 2. Add an undesignated center 

heading and §§ 17.3100 through 17.3130 

to read as follows: 

Home Improvements and Structural 

Alterations (HISA) Program 

Sec. 

17.3100 Purpose and scope. 

17.3101 Definitions. 

17.3102 Eligibility. 

17.3103–17.3104 [Reserved] 

17.3105 HISA benefit lifetime limits. 

17.3106–17.3119 [Reserved] 

17.3120 Application for HISA benefits. 

17.3121–17.3124 [Reserved] 

17.3125 Approving HISA benefits 

applications. 

17.3126 Disapproving HISA benefits 

applications. 

17.3127–17.3129 [Reserved] 

17.3130 HISA benefits payment procedures. 

Home Improvements and Structural 

Alterations (HISA) Program 

§ 17.3100 Purpose and scope. 

(a) Purpose. The purpose of 

§§ 17.3100 through 17.3130 is to 

implement the Home Improvements and 

Structural Alterations (HISA) program. 

The purpose of the HISA benefits 


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program is to provide eligible 

beneficiaries monetary benefits for 

improvements and structural alterations 

to their homes when such 

improvements and structural 

alterations: 

(1) Are necessary for the continuation 

of the provision of home health 

treatment of the beneficiary’s disability; 

or 

(2) Provide the beneficiary with 

access to the home or to essential 

lavatory and sanitary facilities. 

(b) Scope. 38 CFR 17.3100 through 

17.3130 apply only to the 

administration of the HISA benefits 

program, unless specifically provided 

otherwise. 

(Authority: 38 U.S.C. 501, 1717(a)(2)) 

§ 17.3101 Definitions. 

For the purposes of the HISA benefits 

program (§§ 17.3100 through 17.3130): 

Access to essential lavatory and 

sanitary facilities means having normal 

use of the standard structural 

components of those facilities. 

Access to the home means the ability 

of the beneficiary to enter and exit the 

home and to maneuver within the home 

to at least one bedroom and essential 

lavatory and sanitary facilities. 

Beneficiary means a veteran or 

servicemember who is awarded or who 

is eligible to receive HISA benefits. 

Essential lavatory and sanitary 

facilities means one bathroom equipped 

with a toilet and a shower or bath, one 

kitchen, and one laundry facility. 

HISA benefits means a monetary 

payment by VA to be used for 

improvements and structural alterations 

to the home of a beneficiary in 

accordance with §§ 17.3100 through 

17.3130. 

Home means the primary place where 

the beneficiary resides or, in the case of 

a servicemember, where the beneficiary 

intends to reside after discharge from 

service. 

Improvement or structural alteration 

means a modification to a home or to an 

existing feature or fixture of a home, 

including repairs to or replacement of 

previously improved or altered features 

or fixtures. 

Undergoing medical discharge means 

that a servicemember has been found 

unfit for duty due to a medical 

condition by their Service’s Physical 

Evaluation Board, and a date of medical 

discharge has been issued. 

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

§ 17.3102 Eligibility. 

The following individuals are eligible 

for HISA benefits: 

(a) A veteran who is eligible for 

medical services under 38 U.S.C. 

1710(a). 

(b) A servicemember who is 

undergoing medical discharge from the 

Armed Forces for a permanent disability 

that was incurred or aggravated in the 

line of duty in the active military, naval, 

or air service. A servicemember would 

be eligible for HISA benefits while 

hospitalized or receiving outpatient 

medical care, services, or treatment for 

such permanent disability. 

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

§§ 17.3103–17.3104 [Reserved] 

§ 17.3105 HISA benefit lifetime limits. 

(a) General. Except as provided in 

paragraph (e) of this section, a 

beneficiary’s HISA benefit is limited to 

the lifetime amount established in 

paragraph (b), (c), or (d) of this section, 

as applicable. A beneficiary may use 

HISA benefits to pay for more than one 

home alteration, until the beneficiary 

exhausts his or her lifetime benefit. 

HISA benefits approved by VA for use 

in a particular home alteration but 

unused by the beneficiary will remain 

available for future use. 

(b) HISA benefits for a serviceconnected disability, a disability treated 

‘‘as if’’ it were service connected, or for 

veterans with a service-connected 

disability rated 50 percent or more. (1) 

If a veteran: 

(i) Applies for HISA benefits to 

address a service-connected disability; 

(ii) Applies for HISA benefits to 

address a compensable disability treated 

‘‘as if’’ it is a service-connected 

disability and for which the veteran is 

entitled to medical services under 38 

U.S.C. 1710(a)(2)(C) (e.g., a disability 

acquired through treatment or 

vocational rehabilitation provided by 

VA); or 

(iii) Applies for HISA benefits to 

address a nonservice-connected 

disability, if the beneficiary has a 

service-connected disability rated at 

least 50 percent disabling; and 

(2) The veteran first applies for HISA 

benefits: 

(i) Before May 5, 2010, then the 

veteran’s lifetime HISA benefit limit is 

$4,100. 

(ii) On or after May 5, 2010, then the 

veteran’s lifetime HISA benefit limit is 

$6,800. 

(c) HISA benefits for any other 

disabilities. If a veteran who is eligible 

for medical services under 38 U.S.C. 

1710(a) applies for HISA benefits to 

address a disability that is not covered 

under paragraph (b) of this section, and 

the veteran first applies for HISA 

benefits: 

(1) Before May 5, 2010, then the 

veteran’s lifetime HISA benefit limit is 

$1,200; or 

(2) On or after May 5, 2010, then the 

veteran’s lifetime HISA benefit limit is 

$2,000. 

(d) Servicemembers. If a 

servicemember is eligible for HISA 

benefits under § 17.3102(b), and the 

servicemember first applies: 

(1) Before May 5, 2010, then the 

servicemember’s HISA benefit lifetime 

limit is $4,100; or 

(2) On or after May 5, 2010, then the 

servicemember’s HISA benefit lifetime 

limit is $6,800. 

(e) Increases to HISA benefit lifetime 

limit. (1) A veteran who received HISA 

benefits under paragraph (c) of this 

section, and who subsequently qualifies 

for HISA benefits under paragraph (b)(1) 

of this section on or after May 5, 2010, 

due to a new award of disability 

compensation based on service 

connection or an increased disability 

rating, may apply for the increased 

lifetime benefit amount under paragraph 

(b)(2)(ii) of this section. The increased 

amount that will be available is $6,800 

minus the amount of HISA benefits 

previously used by the beneficiary. 

(2) A veteran who previously received 

HISA benefits as a servicemember is not 

eligible for a new lifetime HISA benefit 

amount based on his or her attaining 

veteran status, but the veteran may file 

a HISA claim for any HISA benefit 

amounts not used prior to discharge. 

The veteran’s subsequent HISA award 

cannot exceed the applicable award 

amount under paragraphs (b), (c), or 

(e)(1) of this section, as applicable, 

minus the amount of HISA benefits 

awarded to the veteran while the 

veteran was a servicemember. 

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

§§ 17.3106–17.3119 [Reserved] 

§ 17.3120 Application for HISA benefits. 

(a) Application package. To apply for 

HISA benefits, the beneficiary must 

submit to VA a complete HISA benefits 

application package. A complete HISA 

benefits application package includes 

all of the following: 

(1) A prescription, which VA may 

obtain on the beneficiary’s behalf, 

written or approved by a VA physician 

that includes all of the following: 

(i) The beneficiary’s name, address, 

and telephone number. 

(ii) Identification of the prescribed 

improvement or structural alteration. 

(iii) The diagnosis and medical 

justification for the prescribed 

improvement or structural alteration. 

(2) A completed and signed VA Form 

10–0103, Veterans Application for 


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Assistance in Acquiring Home 

Improvement and Structural 

Alterations, including, if desired, a 

request for advance payment of HISA 

benefits. 

(3) A signed statement from the owner 

of the property authorizing the 

improvement or structural alteration to 

the property. The statement must be 

notarized if the beneficiary submitting 

the HISA benefits application is not the 

owner of the property. 

(4) A written itemized estimate of 

costs for labor, materials, permits, and 

inspections for the home improvement 

or structural alteration. 

(5) A color photograph of the 

unimproved area. 

(b) Pre-award inspection of site. The 

beneficiary must allow VA to inspect 

the site of the proposed improvement or 

structural alteration. VA will not 

approve a HISA application unless VA 

has either conducted a pre-award 

inspection or has determined that no 

such inspection is needed. No later than 

30 days after receiving a complete HISA 

benefits application, VA will conduct 

the inspection or determine that no 

inspection is required. 

(c) Incomplete applications. If VA 

receives an incomplete HISA benefits 

application, VA will notify the 

applicant of the missing documentation. 

If the missing documentation is not 

received by VA within 30 days after 

such notification, VA will close the 

application and notify the applicant that 

the application has been closed. The 

closure notice will indicate that the 

application may be re-opened by 

submitting the requested documentation 

and updating any outdated information 

from the original application. 

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

(The Office of Management and Budget has 

approved the information collection 

requirements in this section under control 

number 2900–0188.) 

§§ 17.3121–17.3124 [Reserved] 

§ 17.3125 Approving HISA benefits 

applications. 

(a) Approval of application. VA will 

approve the HISA benefits application 

if: 

(1) The application is consistent with 

§§ 17.3100 through 17.3130, and 

(2) VA determines that the proposed 

improvement or structural alteration is 

reasonably designed to address the 

needs of the beneficiary and is 

appropriate for the beneficiary’s home, 

based on documentation provided and/ 

or through a pre-award inspection of the 

home. 

(b) Notification of approval. No later 

than 30 days after a beneficiary submits 

a complete application, VA will notify 

the beneficiary whether an application 

is approved. The notification will: 

(1) State the total benefit amount 

authorized for the improvement or 

structural alteration. 

(2) State the amount of any advance 

payment, if requested by the 

beneficiary, and state that the advance 

payment must be used for the 

improvements or structural alterations 

detailed in the application. The 

notification will also remind 

beneficiaries receiving advance payment 

of the obligation to submit the request 

for final payment upon completion of 

the construction. 

(3) Provide the beneficiary with the 

notice of the right to appeal if they do 

not agree with VA’s decision regarding 

the award. 

(Authority: 38 U.S.C. 501, 1717, 7104) 

§ 17.3126 Disapproving HISA benefits 

applications. 

VA will disapprove a HISA benefits 

application if the complete HISA 

benefits application does not meet all of 

the criteria outlined in § 17.3125(a). 

Notification of the decision provided to 

the beneficiary will include the basis for 

the disapproval and notice to the 

beneficiary of his or her right to appeal. 

(Authority: 38 U.S.C. 501, 7104) 

§§ 17.3127–17.3129 [Reserved] 

§ 17.3130 HISA benefits payment 

procedures. 

(a) Advance payment. If the 

beneficiary has requested advance 

payment of HISA benefits in VA Form 

10–0103, as provided in § 17.3120(a)(2), 

VA will make an advance payment to 

the beneficiary equal to 50 percent of 

the total benefit authorized for the 

improvement or structural alteration. 

VA will make the advance payment no 

later than 30 days after the HISA 

benefits application is approved. The 

beneficiary may receive only one 

advance payment for each approved 

HISA benefits application. A beneficiary 

must use the advance payment only for 

the improvement or structural alteration 

described in the application and must 

submit a final payment request, as 

defined in paragraph (b) of this section, 

to document such use after the 

construction is finished. 

(b) Final payment request. No later 

than 60 days after the application is 

approved or, if VA approved an advance 

payment, no later than 60 days after the 

advance payment was made, the 

beneficiary must submit a complete 

final payment request to VA for 

payment. The complete final payment 

request must include: 

(1) A statement by the beneficiary that 

the improvement or structural 

alteration, as indicated in the 

application, was completed; 

(2) A color photograph of the 

completed work; and 

(3) Documentation of the itemized 

actual costs for material, labor, permits, 

and inspections. 

(c) VA action on final payment 

request. (1) Prior to approving and 

remitting the final payment, VA may 

inspect (within 30 days after receiving 

the final payment request) the 

beneficiary’s home to determine that the 

improvement or structural alteration 

was completed as indicated in the 

application. No payment will be made 

if the improvement or structural 

alteration has not been completed. 

(2) No later than 30 days after receipt 

of a complete final payment request, or, 

if VA conducts an inspection of the 

home under paragraph (c)(1) of this 

section, no later than 30 days after the 

inspection, VA will make a 

determination on the final payment 

request. If approved, VA will remit a 

final payment to the beneficiary equal to 

the lesser of: 

(i) The approved HISA benefit 

amount, less the amount of any advance 

payment, or 

(ii) The total actual cost of the 

improvement or structural alteration, 

less the amount of any advance 

payment. 

(3) If the total actual cost of the 

improvement or structural alteration is 

less than the amount paid to the 

beneficiary as an advance payment, the 

beneficiary will reimburse VA for the 

difference between the advance 

payment and the total actual costs. 

(4) After final payment is made on a 

HISA benefits application, the 

application file will be closed and no 

future HISA benefits will be furnished 

to the beneficiary for that application. If 

the total actual cost of the improvement 

or structural alteration is less than the 

approved HISA benefit, the balance of 

the approved amount will be credited to 

the beneficiary’s remaining HISA 

benefits lifetime balance. 

(d) Failure to submit a final payment 

request. (1) If an advance payment was 

made to the beneficiary, but the 

beneficiary fails to submit a final 

payment request in accordance with 

paragraph (b) of this section within 60 

days of the date of the advance 

payment, VA will send a notice to 

remind the beneficiary of the obligation 

to submit the final payment request. If 

the beneficiary fails to submit the final 

payment request or to provide a suitable 

update and explanation of delay within 

30 days of this notice, VA may take 


tkelley on DSK3SPTVN1PROD with RULES
Federal Register / Vol. 79, No. 232 / Wednesday, December 3, 2014 / Rules and Regulations 71663 

appropriate action to collect the amount 

of the advance payment from the 

beneficiary. 

(2) If an advance payment was not 

made to the beneficiary and the 

beneficiary does not submit a final 

payment request in accordance with 

paragraph (b) of this section within 60 

days of the date the application was 

approved, the application will be closed 

and no future HISA benefits will be 

furnished to the beneficiary for that 

application. Before closing the 

application, VA will send a notice to the 

beneficiary of the intent to close the file. 

If the beneficiary does not respond with 

a suitable update and explanation for 

the delay within 30 days, VA will close 

the file and provide a final notice of 

closure. The notice will include 

information about the right to appeal the 

decision. 

(e) Failure to make approved 

improvements or structural alterations. 

If an inspection conducted pursuant to 

paragraph (c)(1) of this section reveals 

that the improvement or structural 

alteration has not been completed as 

indicated in the final payment request, 

VA may take appropriate action to 

collect the amount of the advance 

payment from the beneficiary. VA will 

not seek to collect the amount of the 

advance payment from the beneficiary if 

the beneficiary provides documentation 

indicating that the project was not 

completed due to the fault of the 

contractor, including bankruptcy or 

misconduct of the contractor. 

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

(The Office of Management and Budget has 

approved the information collection 

requirement in this section under control 

number 2900–0188.) 

[FR Doc. 2014–28373 Filed 12–2–14; 8:45 am] 

BILLING CODE 8320–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 51, 52, and 97 

[EPA–HQ–OAR–2009–0491; FRL–9919–71– 

OAR] 

RIN 2060–AS40 

Rulemaking To Amend Dates in 

Federal Implementation Plans 

Addressing Interstate Transport of 

Ozone and Fine Particulate Matter 

AGENCY: Environmental Protection 

Agency. 

ACTION: Interim final rule with request 

for comment. 

SUMMARY: The Environmental Protection 

Agency (EPA) is amending the Code of 

Federal Regulations (CFR) to correctly 

reflect the compliance deadlines for the 

Cross-State Air Pollution Rule (CSAPR) 

as revised by the effect of the action of 

the United States Court of Appeals for 

the District of Columbia Circuit (D.C. 

Circuit or Court) granting the EPA’s 

motion to lift the previous stay of 

CSAPR and delay (toll) its deadlines by 

three years. With these ministerial 

amendments, the CFR text will correctly 

indicate that CSAPR’s Phase 1 

emissions budgets apply in 2015 and 

2016 and that CSAPR’s Phase 2 

emissions budgets and assurance 

provisions apply in 2017 and beyond. 

The ministerial amendments similarly 

correct dates in the CFR text related to 

specific activities required or permitted 

under CSAPR by regulated sources, the 

EPA, and states, as well as dates related 

to the sunsetting of the Clean Air 

Interstate Rule (CAIR) upon its 

replacement by CSAPR. The 

amendments are necessary to clarify the 

timing of requirements and elections 

under CSAPR as shown in the CFR text 

so that compliance can begin in an 

orderly manner on January 1, 2015, 

consistent with the Court’s order. The 

EPA is also taking comment on the 

amendments being made in this interim 

final rule and will consider whether to 

retain these revisions as promulgated or 

whether further revisions are necessary 

to make the CSAPR compliance 

deadlines consistent with the Court’s 

order. 

DATES: This final rule is effective on 

December 3, 2014. The EPA will 

consider comments on this interim final 

rule received on or before February 2, 

2015. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–HQ– 

OAR–2009–0491, by one of the 

following methods: 

• www.regulations.gov: Follow the 

online instructions for submitting 

comments. 

• Email: a-and-r-docket@epa.gov. 

• Fax: (202) 566–9744. 

• Mail: EPA Docket Center, Air and 

Radiation Docket, Mail Code 2822T, 

1200 Pennsylvania Avenue NW., 

Washington, DC 20460, Attn: Docket ID 

No. EPA–HQ–OAR–2009–0491. 

• Hand delivery: EPA Docket Center, 

William Jefferson Clinton Building 

West, Room 3334, 1301 Constitution 

Avenue NW., Washington, DC 20004, 

Attn: Docket ID No. EPA–HQ–OAR– 

2009–0491. Such deliveries are only 

accepted during the Docket’s normal 

hours of operation, and special 

arrangements should be made for 

deliveries of boxed information. 

Instructions: Direct your comments to 

Docket ID No. EPA–HQ–OAR–2009– 

0491. The EPA’s policy is that all 

comments received will be included in 

the public docket without change and 

may be made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit information that you 

consider to be CBI or otherwise 

protected through www.regulations.gov 

or email. The www.regulations.gov Web 

site is an ‘‘anonymous access’’ system, 

which means the EPA will not know 

your identity or contact information 

unless you provide it in the body of 

your comment. If you send an email 

comment directly to the EPA without 

going through www.regulations.gov your 

email address will be automatically 

captured and included as part of the 

comment that is placed in the public 

docket and made available on the 

Internet. If you submit an electronic 

comment, the EPA recommends that 

you include your name and other 

contact information in the body of your 

comment and with any disk or CD–ROM 

you submit. If the EPA cannot read your 

comment due to technical difficulties 

and cannot contact you for clarification, 

the EPA may not be able to consider 

your comment. Electronic files should 

avoid the use of special characters, any 

form of encryption, and be free of any 

defects or viruses. 

Docket: The EPA is including this 

action in Docket ID No. EPA–HQ–OAR– 

2009–0491, which is also the docket for 

the original CSAPR rulemaking and 

other related rulemakings. All 

documents in the docket are listed on 

the www.regulations.gov Web site. 

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 either electronically through 

www.regulations.gov or in hard copy at 

the Air and Radiation Docket, William 

Jefferson Clinton Building West, Room 

3334, 1301 Constitution Avenue NW., 

Washington, DC. The Public Reading 

Room is open from 8:30 a.m. to 4:30 

p.m., Monday through Friday, excluding 

legal holidays. The telephone number 

for the Public Reading Room is (202) 

566–1744, and the telephone number for 


tkelley on DSK3SPTVN1PROD with RULES