Source: https://www.federalregister.gov/documents/2010/05/05/2010-10372/supportive-services-for-veteran-families-program
Timestamp: 2016-12-06 10:37:48
Document Index: 382844341

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:: Supportive Services for Veteran Families Program
A Proposed Rule by the Veterans Affairs Department on 05/05/2010
24514-24534
2010-10372
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
62.35 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
https://www.federalregister.gov/d/2010-10372
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 toll-free 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.
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.
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.
In accordance with the Act (38 U.S.C. 2044(f)(2)), proposed § 62.2 defines the term “eligible entity” as a private non-profit organization or consumer cooperative, which in turn are separately defined in proposed § 62.2.
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 Start Printed Page 24516determined 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)).
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.
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 low-income 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 low-income 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 Start Printed Page 24517the 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.
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.
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.
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.
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 Start Printed Page 24518for 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.
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, cost-effectiveness, and compliance with VA goals and requirements.
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.
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.
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.
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).
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.
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 Start Printed Page 24519the 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.
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.
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.
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 Start Printed Page 24520reasonableness” 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.
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.
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.
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.
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 Start Printed Page 24521by 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.
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.
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.
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.
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.
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.
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 Start Printed Page 24522location 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.
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.
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.
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).
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 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.
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 Start Printed Page 24523amounts from grantees if final audits are completed after the date of completion.
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.
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.
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.Start Printed Page 24524
Description of likely respondents: entities receiving supportive services grants who desire to change their approved supportive services grant program.
§ 62.1 Purpose.
§ 62.2 Definitions.
Third party in-kind contributions means the value of non-cash contributions provided by non-Federal third parties. Third party in-kind Start Printed Page 24526contributions 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.
§ 62.10 Supportive services grants—general.
§ 62.11 Participants—occupying permanent housing.
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.
§ 62.20 Applications for supportive services grants.
§ 62.21 Threshold requirements prior to scoring supportive services grant applicants.
(e) The applicant's proposed participants are eligible to receive supportive services under this part;Start Printed Page 24527
§ 62.22 Scoring criteria for supportive services grant applicants.
(2) Past working relationships. Applicant (or applicant's staff), and any Start Printed Page 24528identified 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.
§ 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.
(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.
§ 62.30 Supportive service: outreach services.
§ 62.31 Supportive service: case management services.
(b) Establishing linkages with appropriate agencies and service providers in the area or community to help participants obtain needed supportive services;Start Printed Page 24529
§ 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.
(a) Rental assistance. Payment of rent, penalties or fees to help the participant Start Printed Page 24530remain in permanent housing or obtain permanent housing.
(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.Start Printed Page 24531
§ 62.35 Limitations on and continuations of the provision of supportive services to certain participants.
(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:
§ 62.36 General operation requirements.
§ 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.
§ 62.40 Notice of Fund Availability.
§ 62.50 Supportive services grant agreements.
(2) Comply with such other terms and conditions, including recordkeeping Start Printed Page 24532and 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
§ 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.
(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.Start Printed Page 24533
§ 62.63 Visits to monitor operations and compliance.
§ 62.70 Financial management and administrative costs.
(c) Grantees' financial management systems must comply with the requirements of § 49.21 of this part.
§ 62.71 Grantee reporting requirements.
§ 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.Start Printed Page 24534
§ 62.73 Technical assistance.
§ 62.80 Withholding, suspension, deobligation, termination, and recovery of funds by VA.
§ 62.81 Supportive services grant closeout procedures.