[Federal Register Volume 59, Number 104 (Wednesday, June 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-13051]
[[Page Unknown]]
[Federal Register: June 1, 1994]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 17
RIN 2900-AG91
VA Homeless Providers Grant and Per Diem Program
AGENCY: Department of Veterans Affairs.
ACTION: Interim final rule with request for comments.
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SUMMARY: The Homeless Veterans Comprehensive Service Programs Act of
1992 authorizes the Department of Veterans Affairs to assist public or
nonprofit private entities in establishing new programs to furnish
supportive services and supportive housing for homeless veterans
through grants. The Act authorizes VA to provide per diem payments, or
in-kind assistance in lieu of per diem payments, to eligible entities
that established programs after November 10, 1992 that provide
supportive services or supportive housing for homeless veterans, or
service centers providing supportive services. This rule contains
criteria and requirements relating to the awarding of grants and
relating to per diem payments. Accordingly, this rule is necessary so
that grants can be awarded and per diem payments can be made.
DATES: Effective date is June 1, 1994. Comments must be received on or
before August 1, 1994.
ADDRESSES: All comments concerning this interim final rule should be
addressed to the Secretary of Veterans Affairs, 810 Vermont Avenue NW.,
Washington, DC 20420. All written comments will be available for public
inspection in room 170, Veterans Service Unit, at the above address
between the hours of 8 a.m. and 4:30 p.m., Monday through Friday
(except holidays) until August 10, 1994.
FOR FURTHER INFORMATION CONTACT: Lynn Bailey, Program Manager, VA
Homeless Providers Grant and Per Diem Program; Mental Health and
Behavioral Sciences Service (111C), U.S. Department of Veterans
Affairs, 810 Vermont Avenue NW., Washington, DC 20420; (202) 535-7311
(this is not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document sets forth a final interim rule to implement
provisions of the ``Homeless Veterans Comprehensive Service Programs
Act of 1992'' (Act).
Statistics indicate that on any given night, as many as 250,000
veterans are living on the streets or in shelters, and perhaps twice
this number of veterans experience homelessness at some point during
the course of a year. Many other veterans are considered ``near
homeless'' or ``at risk'' because they are poor, suffer from various
infirmities; or have no real home of their own, and live on a temporary
basis with friends or relatives or in cheap hotels, often in
substandard or overcrowded conditions. The vast majority of homeless
veterans are single; about two percent of all homeless veterans are
female. About 40 percent of homeless veterans suffer from severe mental
illness and (with considerable overlap) about half have alcohol or
other drug abuse problems.
The Act authorizes the Department of Veterans Affairs (VA) to
assist public or nonprofit private entities in establishing new
programs to furnish supportive services or supportive housing for
homeless veterans, or to establish service centers meeting the
requirements described in Sec. 17.724(k) of this part through grants of
up to 65 percent of the cost of acquiring, renovating, altering or
constructing facilities, and of the cost of purchasing vans. It also
authorizes VA to provide per diem payments, or in-kind assistance in
lieu of per diem payments, to eligible entities that established
programs after November 10, 1992 that provide supportive services or
supportive housing for homeless veterans, or function as service
centers.
This interim rule contains criteria and requirements relating to
the awarding of grants and contains criteria and requirements relating
to per diem payments. Portions of these criteria and requirements
restate statutory language. However, insofar as they establish
regulatory material beyond the statutory language the regulatory
material is designed to provide a mechanism for awarding grants and for
allowing per diem payments to be made. The rule also sets forth the
rates for services furnished to a homeless veteran. These rates are
consistent with the amounts for similar services allowed under ``Aid to
States for Care of Veterans in State Homes'' program (See 38 U.S.C.
1741).
In developing the criteria and requirements for inclusion in this
rule, section 3(b) of the Act requires VA to consult with organizations
with experience in the area of providing services to homeless veterans.
On September 16, 1993 over 250 letters soliciting input into drafting
rules for the program were mailed to known organizations that provide
services to homeless veterans, national offices of veteran's service
organizations, State and local departments of veterans affairs, and
program coordinators of all centrally-funded VA homeless programs. The
letter also sought additional names for the mailing list. As additional
names were provided, copies of the September 16, 1993 letter were
mailed to them.
On December 17, 1993 a meeting was held in Washington, DC with
individuals and organizations with experience in providing services to
homeless persons, including veteran service organizations and private
nonprofit organizations. The purpose of the meeting was to discuss the
draft rule. Changes resulting from that meeting included improving nine
definitions; minor wording modifications to 12 paragraphs that
clarified the meaning of the paragraphs; deletion of paragraphs on
technical assistance, funding minimums, recovery periods, a requirement
for ``adequate'' supportive services, and a requirement for due process
when recipients terminate assistance to veterans; and changes to
paragraphs on use of grant funds for permanent housing or operating
leases, construction standards, requirements for environmental review,
deobligation of funds, site control, insurance on vans, fees and/or
rents charged to veterans in funded programs, and matching fund
requirements.
Executive Order 12866
This rule has been reviewed as a ``significant regulatory action''
under E.O. 12866 by the Office of Management and Budget .
Administrative Procedure Act
Pursuant to 5 U.S.C. 553, VA has found good cause to dispense with
prior notice and comment on this interim final rule and to dispense
with a 30-day delay of its effective date in light of the critical need
to provide housing and other essentials to homeless veterans. Comments
have been solicited for 60 days after publication of this document. VA
may modify the rule in response to comments if appropriate.
Regulatory Flexibility Act
Because no notice of proposed rulemaking was required in connection
with the adoption of this interim final rule, no regulatory flexibility
analysis is required under the Regulatory Flexibility Act (5 U.S.C. 601
et seq.).
The Catalog of Federal Domestic Assistance program number is
64.024.
List of Subjects in 38 CFR Part 17
Community action programs, Community development, Homeless
veterans, Government contracts, Grant programs--health, Grant
programs--homeless veterans, Grant programs--housing and community
development, Grant programs--social programs, Grant programs--
transportation, Health, Health care, Health facilities, Housing,
Intergovernmental relations, Low and moderate income housing, Manpower
training programs, Mental health centers, Mental health programs, Motor
carriers, Motor vehicles, Public housing, Rent subsidies, Supportive
housing, Supportive services, Veterans, Vocational education,
Vocational rehabilitation, Work incentive programs.
Approved: May 12, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
For the reasons set out in the preamble, 38 CFR Part 17 is amended
as set forth below:
PART 17--MEDICAL
1. The authority citation for part 17 is revised to read as
follows:
Authority: 38 U.S.C. 501, 38 U.S.C. 7721 note, unless otherwise
noted.
2. Part 17 is amended by adding Secs. 17.700 through 17.731 and an
undesignated center heading preceding 17.700 to read as follows:
VA Homeless Providers Grant and Per Diem Program
Sec.
17.700 Purpose and scope.
17.701 Definitions.
17.702 Types and uses of assistance.
17.703 Grants for acquisition and rehabilitation.
17.704 Grants for new construction.
17.705 Grants for procurement of vans.
17.706 Matching requirements.
17.707 Limitations on use of assistance.
17.708 Notice of fund availability.
17.709 Grant award process.
17.710 Application requirements.
17.711 Ranking criteria for applications.
17.712 Selecting applications.
17.713 Obtaining additional information and awarding grants.
17.714 Environmental review requirements.
17.715 Aid for supportive services and supportive housing.
17.716 Eligibility to receive payments.
17.717 Requesting recognition.
17.718 Approval of annexes and new facilities.
17.719 Amount of aid payable.
17.720 Approval of eligibility.
17.721 Inspections.
17.722 Prerequisite for payment of aid.
17.723 Audit of recipients of aid.
17.724 General operation.
17.725 Outreach activities.
17.726 Resident rent.
17.727 Grant agreement.
17.728 Program changes.
17.729 Obligation and deobligation of funds.
17.730 Displacement, relocation, and acquisition.
17.731 Site control.
VA Homeless Providers Grant and Per Diem Program
Sec. 17.700 Purpose and scope.
(a) General. The VA Homeless Providers Grant and Per Diem Program
is authorized by sections 3 and 4 of Pub. L. 102-590, the Homeless
Veterans Comprehensive Service Programs Act of 1992. The VA Homeless
Providers Grant and Per Diem Program is designed to assist eligible
entities in establishing new programs to furnish outreach,
rehabilitative services, vocational counseling and training, and
transitional housing assistance to homeless veterans. Section 3 of the
Act provides for grants to eligible entities of up to 65 percent of the
estimated cost to construct, expand, remodel or alter existing
buildings; to acquire facilities for use as service centers,
transitional housing or other facilities to serve homeless veterans; or
to procure vans to provide transportation for and support outreach to
homeless veterans. A grant may not be used to support operational
costs. In addition, Sec. 4 of Pub. L. 102-590 authorizes VA to provide
to a recipient of a grant under Sec. 3 (or entity eligible for such a
grant as described in Sec. 17.715(a) of this part) per diem payments
for homeless veterans whom VA has referred to that entity; or for whom
VA has authorized the provision of services. In lieu of per diem
payments, VA may provide in-kind assistance through services of VA
employees and the use of other VA resources. This program does not
provide for funding to construct, expand, remodel or acquire buildings
located on VA-owned property, nor does it provide for funding to
expand, remodel or acquire unutilized or underutilized VA structures
made available to homeless providers under Title V of the Stewart B.
McKinney Homeless Assistance Act.
(b) Components. (1) Grants may be used for the three components
described in Sec. 17.702:
(2) Grant recipients or eligible entities may apply for per diem
payments or receive in-kind assistance through VA as described in
Sec. 17.715.
(3) Applicants may apply for a grant for more than one component
described in Sec. 17.702 and/or per diem payments.
Sec. 17.701 Definitions.
As used in this part:
Capital lease means a lease that satisfies one of the following
criteria:
(1) The lease transfers ownership to the lessee at the expiration
of the lease term.
(2) The lessor bears no risk.
(3) The term of the lease exceeds 75 percent of the economic life
of the asset.
(4) The lease contains a bargain purchase option.
(5) The present value of lease payments is equal to or greater than
90 percent of the fair market value of the asset.
Eligible entity means a public or nonprofit private entity with the
capacity to effectively administer a grant under this section; which
has demonstrated that adequate financial support will be available to
carry out the project for which the grant is sought consistent with the
plans, specifications and schedule submitted by the applicant; and
which has agreed to, and has demonstrated the capacity to, meet the
applicable criteria and requirements of the grant program.
Expansion of an existing building means an addition to an existing
structure that does not increase the floor area by more than 100
percent.
Federally recognized Indian tribal government includes the
governing body or a governmental agency of any Indian tribe, band,
nation, or other organized group or community (including any Native
village as defined in section 3 of the Alaska Native Claims Settlement
Act, 85 Stat 688) certified by the Secretary of the Interior as
eligible for the special programs and services provided by him through
the Bureau of Indian Affairs.
Homeless or homeless individual (1) includes:
(i) An individual who lacks a fixed, regular and adequate nighttime
residence; and
(ii) An individual who has a primary nighttime residence that is--
(A) A supervised publicly or privately operated shelter designed to
provide temporary living accommodations (including welfare hotels,
congregate shelters, and transitional housing for the mentally ill);
(B) An institution that provides a temporary residence for persons
intended to be institutionalized; or
(C) A public or private place not designed for, or ordinarily used
as, a regular sleeping accommodation for human beings.
(2) The term ``homeless'' or ``homeless individual'' does not
include any individual imprisoned or otherwise detained pursuant to an
Act of the Congress or a State law. An individual on probation, parole
or under electronic custody is not considered ``imprisoned or otherwise
detained''.
New construction means the building of a structure where none
existed or an addition to an existing structure that increases the
floor area by more than 100 percent.
New program/new component of an existing program means a proposed
program of supportive services, or a proposed addition of supportive
services to an existing program, which services are not currently being
provided by the entity proposing it, and for which there is a
demonstrated need in the community served by that entity.
Nonprofit organization means a private organization, no part of the
net earnings of which may inure to the benefit of any member, founder,
contributor, or individual. The organization must:
(1) Have a voluntary board;
(2) Have a functioning accounting system that is operated in
accordance with generally accepted accounting principles, or designate
an entity that will maintain a functioning accounting system for the
organization in accordance with generally accepted accounting
principles; and
(3) Practice nondiscrimination in the provision of supportive
housing and supportive services assistance.
Operating costs means expenses incurred in operating supportive
housing, supportive services or service centers with respect to:
(1) Administration (including staff salaries; costs associated with
accounting for the use of grant funds, preparing reports for submission
to VA and obtaining program audits; and similar costs related to
administering the grant after the award), maintenance, repair and
security for the supportive housing;
(2) Van or building rent (except under capital leases), utilities,
insurance, fuel, furnishings, and equipment;
(3) Conducting on-going assessments of supportive services provided
for and needed by participants and the availability of such services;
(4) Relocation assistance under Sec. 17.730 of this part, including
payments and services; and
(5) Other costs associated with operating the supportive housing.
Outpatient health services means outpatient health care, outpatient
mental health services, outpatient alcohol and/or substance abuse
services, and case management.
Participant means a person who receives services provided at sites
funded with assistance provided under this part.
Project means a structure or structures (or portion of such
structure or structures) acquired, rehabilitated, or constructed with
assistance provided under this part. A project may be used to provide
supportive housing or supportive services in single room occupancy
dwelling units which may or may not contain bathrooms or kitchen
facilities and are appropriate for use as supportive housing.
Recipient means any governmental or nonprofit entity that receives
assistance under this part.
Rehabilitation means the improvement or repair of an existing
structure. Rehabilitation does not include minor or routine repairs.
Secretary means the Secretary of Veterans Affairs.
Seriously mentally ill means having a severe and persistent mental
or emotional impairment that seriously limits a person's ability to
live independently. This may include an impairment related to substance
(alcohol and/or drug) abuse.
Service center means a project which provides the supportive
services specified at Sec. 17.724(k) to homeless veterans for a minimum
of 40 hours per week over a minimum of five days per week as well as on
an as-needed, unscheduled basis.
Single room occupancy (SRO) housing means a unit for occupancy by
one person, which need not but may contain food preparation or sanitary
facilities, or both.
Sponsor means a public or nonprofit organization which owns or
leases dwelling units in buildings acquired and/or renovated with funds
from this grant program, and which makes such units available to
eligible homeless veterans.
State means any of the several States of the United States, the
District of Columbia, the Commonwealth of Puerto Rico, any territory or
possession of the United States, or any agency or instrumentality of a
State exclusive of local governments. The term does not include any
public and Indian housing agency under United States Housing Act of
1937.
Supportive housing means housing in conjunction with which
supportive services are provided for homeless veterans where:
(1) The housing is safe and sanitary and meets any applicable State
and local housing codes and licensing requirements in the jurisdiction
in which the housing is located, and the requirements of this part; and
(2) The housing is:
(i) Transitional housing; or
(ii) Is, or is a part of, a particularly innovative project for, or
alternative method of, meeting the immediate and long-term needs of
homeless veterans.
Supportive services (1) Means services, which may be designed by
the recipient or program participants, that
(i) address the special needs of homeless veterans to be served by
the project, and
(ii) provide appropriate services or assist such persons in
obtaining appropriate services.
(2) Supportive services include:
(i) Outreach activities;
(ii) Providing food, nutritional counseling, counseling, health
care, mental health treatment, alcohol and other substance abuse
services, case management services;
(iii) Establishing and operating child care services for dependents
of homeless veterans;
(iv) Providing supervision and security arrangements necessary for
the protection of residents of supportive housing and for homeless
veterans using the housing or services;
(v) Providing assistance in obtaining permanent housing;
(vi) Providing education, employment counseling, job training,
establishing and operating an employment assistance program;
(vii) Providing assistance in obtaining other Federal, State and
local assistance available for such residents including mental health
benefits, employment counseling, veterans' benefits, medical
assistance, and income support assistance such as Supplemental Security
Income benefits, Aid to Families with Dependent Children, General
Assistance, Food Stamps, etc.; and
(viii) Providing housing assistance, legal assistance, advocacy,
transportation, and other services essential for achieving and
maintaining independent living.
(ix) Inpatient acute hospital care does not qualify as a supportive
service.
Transitional housing means housing that will facilitate the
movement of homeless veterans and their dependents to permanent housing
within 24 months, or within a longer period as described in
Sec. 17.724(i) of this part.
Unit of general local government means a county, municipality,
city, town, township, local public authority (including any public and
Indian housing agency under the United States Housing Act of 1937),
school district, special district, intrastate district, council of
governments (whether or not incorporated as a nonprofit corporation
under state law), any other regional or interstate government entity,
or any agency or instrumentality of a local government.
Veteran means a person who served in the active military, naval, or
air service, and who was discharged or released therefrom under
conditions other than dishonorable.
Veteran with disabilities means a veteran with a physical, mental,
or emotional impairment which is expected to be of long-continued and
indefinite duration; substantially impedes his or her ability to live
independently; and is of such a nature that such ability could be
improved by more suitable housing conditions. This may include a
disability related to substance (alcohol and/or drug) abuse. A veteran
may be considered to have a disability regardless of whether VA has or
has not awarded compensation or a pension for the disability.
Sec. 17.702 Types and uses of assistance.
(a) Grant assistance. Grant assistance is available to:
(1) Construct structures to establish new supportive housing
facilities, new facilities to provide supportive services, or to
establish service centers;
(2) Acquire, expand and remodel/alter structures to establish new
supportive housing facilities, new facilities to provide supportive
services, or to establish service centers; and
(3) Procure vans to provide transportation for the purpose of
providing supportive services to homeless veterans.
(4) Applicants may apply for more than one type of assistance.
(b) Limitation on non-veteran participants. Up to 25 percent of
services available in projects funded through this grant program may be
provided to participants who are not receiving those services as
veterans.
(c) Structures used for multiple purposes. Structures funded
through this grant program that are used to provide supportive housing,
supportive services, or used as service centers may also be used for
other purposes, except that assistance under this part will be
available only in proportion to the use of the structure for supportive
housing, supportive services, or as a service center.
(d) Maximum amount of grant. The amount of a grant under this part
may not exceed 65 percent of the cost of acquisition, rehabilitation,
acquisition and rehabilitation, construction or procurement.
Sec. 17.703 Grants for acquisition and rehabilitation.
(a) Use. VA will grant funds to recipients to:
(1) Pay a portion of the cost of the acquisition of real property
selected by the recipients for use in the provision of supportive
housing or supportive services, or to establish service centers,
including the repayment of any outstanding debt on a loan made to
purchase property that has not been used previously for supportive
housing, supportive services, or service centers; and
(2) Pay a portion of the cost of rehabilitation of structures,
including cost-effective energy measures, selected by the recipients to
provide supportive housing or supportive services or to establish
service centers.
(b) If grant funds are proposed to be used for acquisition or
rehabilitation, the applicant must demonstrate that the costs
associated with acquisition or rehabilitation are less than the costs
associated with new construction.
Sec. 17.704 Grants for new construction.
(a) Use. VA will grant funds to recipients to pay a portion of the
cost of new construction, including cost-effective energy measures and
the cost of land associated with that construction, for use in the
provision of supportive housing or supportive services, or for service
centers. If grant funds are proposed to be used for new construction,
the applicant must demonstrate that the costs associated with new
construction are less than the costs associated with rehabilitation of
an existing building, or that there is a lack of available appropriate
units that could be rehabilitated at a cost less than new construction.
The applicant must also demonstrate that new construction is less
costly than acquisition of an existing building. For purposes of this
cost comparison, costs associated with rehabilitation or new
construction may include the cost of real property acquisition.
(b) Demolition plan. The cost of demolition of a building cannot be
included in the cost of construction unless the proposed construction
is in the same location as the building to be demolished or unless the
demolition is inextricably linked to the design of the construction
project. If the applicant believes that this cost may be included in
the cost of the construction project, a demolition plan should be
submitted which includes the extent and cost of existing site features
to be removed, stored, or relocated.
Sec. 17.705 Grants for procurement of vans.
(a) Use. VA will grant funds to recipients to pay a portion of the
cost of procuring vans to provide transportation for and support
outreach to homeless veterans.
(b) Insurance. Recipients of grants to procure vans who are
nonprofit entities must insure vans to the same extent they would
insure a van bought with their own funds.
(c) Amount. The estimated total costs of purchasing the van may
include the purchase price, sales taxes, and title and licensing fees.
Sec. 17.706 Matching requirements.
(a) General. The recipient must, from sources other than grant
funds received under this part, match the funds provided by VA to cover
the percentage of the total cost of the acquisition, rehabilitation,
construction or procurement not funded by the grant. This matching
share shall constitute at least 35 percent of the total cost.
(b) Maintenance of effort. State or local government funds used in
the matching contribution are subject to the maintenance of effort
requirements described at Sec. 17.707(a) of this part.
Sec. 17.707 Limitations on use of assistance.
(a) Maintenance of effort. No assistance provided under this part
may be used to replace Federal, State or local funds previously used,
or designated for use, to assist homeless veterans.
(b) Primarily religious organizations. VA will provide assistance
to a recipient that is a primarily religious organization if the
organization agrees to provide housing and supportive services in a
manner that is free from religious influences and the organization
complies with the following principles:
(1) It will not discriminate against any employee or applicant for
employment on the basis of religion and will not limit employment or
give preference in employment to persons on the basis of religion;
(2) It will not discriminate against any person applying for
housing or supportive services on the basis of religion and will not
limit such housing or services or give preference to persons on the
basis of religion;
(3) It will provide no religious instruction or counseling, conduct
no religious worship or services, engage in no religious proselytizing,
and exert no other religious influence in the provision of housing and
supportive services.
Sec. 17.708 Notice of fund availability (NOFA).
When funds are made available for assistance, VA will publish a
notice of fund availability in the Federal Register. The notice will:
(a) Give the location for obtaining application packages, which
will provide specific application requirements and guidance;
(b) Specify the date, time, and place for submitting completed
applications; and
(c) State the amount and status of funding available under the
notice.
Sec. 17.709 Grant award process.
General. The grant award process for assistance under this part
consists of the following:
(1) Reviewing applications for eligibility for assistance;
(2) Rating applications (see Sec. 17.711 of this part);
(3) Selecting applications conditionally (see Sec. 17.712 of this
part);
(4) Obtaining additional information and awarding grants (see
Sec. 17.713 of this part).
Sec. 17.710 Application requirements.
(a) General. Applications for grants must be submitted in the form
prescribed by VA in the application package, must meet the requirements
of this part, and must be submitted within the time period established
by VA in the notice of fund availability under Sec. 17.708 of this
part. The application packet includes exhibits to be prepared and
submitted as part of the application process, including:
(1) Justification for the project by addressing items listed in
Sec. 17.711(c) of this part;
(2) Site description, design, and cost estimates;
(3) Documentation on eligibility to receive assistance under this
part;
(4) Documentation on matching funds committed to the project;
(5) Documentation on operating budget and cost sharing;
(6) Documentation on supportive services committed to the project;
(7) Documentation on site control and appropriate zoning;
(8) Applicants who are States must submit any comments or
recommendations by appropriate State (and areawide) clearinghouses
pursuant to E.O. 12372;
(9) Reasonable assurances with respect to receipt of assistance
under this part that:
(i) The project will be used principally to furnish to veterans the
level of care for which such application is made; that not more than 25
percent of participants at any one time will be non-veterans; and that
such services will meet standards prescribed by VA;
(ii) Title to such site or van will vest solely in the applicant;
(iii) Each recipient will keep those records and submit those
reports as VA may reasonably require, within the timeframes required;
and give VA, upon demand, access to the records upon which such
information is based; and
(iv) Adequate financial support will be available for the purchase
of the van or completion of the project, and for its maintenance,
repair and operation.
(b) Pre-award expenditures. Costs incurred for a project after the
date the Department of Veterans Affairs notifies an applicant that the
project is feasible for VA participation are allowable costs if the
application is approved and the grant is awarded. These pre-award
expenditures include architectural and engineering fees. Such
notification occurs when VA requests information for the second
submission portion of the application.
Sec. 17.711 Rating criteria for applications.
(a) General. Applications will be assigned a rating score and
placed in ranked order, based upon the criteria listed in paragraphs
(b) through (d) of this section.
(b) Threshold review. Applicants will undergo a threshold review
prior to rating and ranking, to ensure they meet the following:
(1) Form, time and adequacy. Applications must be filed in the form
prescribed by VA in the application process and within the time
established in the NOFA.
(2) Applicant eligibility. The applicant and project sponsor, if
relevant, must be eligible to apply for the specific program.
(3) Eligible population to be served. The population proposed to be
served must be homeless veterans and meet other eligibility
requirements of the specific program.
(4) Eligible activities. The activities for which assistance is
requested must be eligible for funding under this part.
(5) Outstanding audit findings. No organization that receives
assistance may have an outstanding obligation to VA that is in arrears
or for which a payment schedule has not been agreed to, or whose
response to an audit is overdue or unsatisfactory.
(c) Rating and ranking of first submission. Applicants that pass
the threshold review will then be rated using the eight selection
criteria listed below. Applicants must receive at least 600 points (out
of a possible 1,200) and must receive points under criteria 1, 2, 3, 4,
and 8. Applicants that are applying as an innovative supportive housing
project must achieve points under the ``innovative quality of the
proposal'' criterion.
(1) Quality of the project--300 points
(2) Targeting to persons on streets and in shelters--150 points
(3) Ability of the applicant to develop and operate a project--200
points
(4) Need for the type of project proposed in the area to be served--150
points
(5) Innovative quality of the proposal--50 points
(6) Leveraging--50 points
(7) Cost effectiveness--100 points
(8) Coordination with other programs--200 points
(d) Selection criteria--(1) Quality of the project. VA will award
up to 300 points based on the extent to which the application presents
a clear, well-conceived and thorough plan for assisting homeless
veterans achieve residential stability, increased skills and/or income,
and more influence over decisions that affect their lives. Higher
ratings will be assigned to those applications that clearly describe:
(i) How program participants will achieve residential stability,
including how available supportive services will help participants
reach this goal;
(ii) How program participants will increase their skill level and/
or income, including how available supportive services will help
participants reach this goal;
(iii) How program participants will be involved in making project
decisions that affect their lives, including how they will be involved
in selecting supportive services, establishing individual goals and
developing plans to achieve these goals so that they achieve greater
self determination;
(iv) How permanent affordable housing will be identified and made
available to participants upon leaving the transitional housing, and
how participants will be provided necessary follow-up services to help
them achieve stability in the permanent housing;
(v) How the service needs of participants will be assessed on an
ongoing basis;
(vi) How the proposed housing, if any, will be managed and
operated;
(vii) How participants will be assisted in assimilating into the
community through access to neighborhood facilities, activities and
services;
(viii) How and when the progress of participants toward meeting
their individual goals will be monitored and evaluated;
(ix) How and when the effectiveness of the overall project in
achieving its goals will be evaluated and how program modifications
will be made based on those evaluations; and
(x) How the proposed project will be implemented in a timely
fashion.
(2) Targeting to persons on streets and in shelters. VA will award
up to 150 points based on:
(i) The extent to which the project will serve homeless veterans
living in places not ordinarily meant for human habitation (e.g.,
streets, parks, abandoned buildings, automobiles, under bridges, in
transportation facilities) and those who reside in emergency shelters;
and
(ii) The likelihood that proposed plans for outreach and selection
of participants will result in these populations being served.
(3) Ability of applicant to develop and operate a project. VA will
award up to 200 points based on the extent to which those who will be
involved in carrying out the project have experience in activities
similar to those proposed in the application. Rating will be assigned
based on the extent to which the application demonstrates experience in
the following areas:
(i) Engaging the participation of homeless veterans living in
places not ordinarily meant for human habitation and in emergency
shelters;
(ii) Assessing the housing and relevant supportive service needs of
homeless veterans;
(iii) Accessing housing and relevant supportive service resources;
(iv) If applicable, contracting for and/or overseeing the
rehabilitation or construction of housing;
(v) If applicable, administering a rental assistance program;
(vi) Providing supportive services for homeless veterans;
(vii) Monitoring and evaluating the progress of persons toward
meeting their individual goals; and
(viii) Evaluating the overall effectiveness of a program and using
evaluation results to make program improvements.
(4) Need. VA will award up to 150 points based on the applicant's
demonstrated understanding of the needs of the specific homeless
veteran population proposed to be served. Ratings will be made based on
the extent to which applicants demonstrate:
(i) Substantial unmet needs, particularly among the target
population who are living in places not ordinarily meant for human
habitation (e.g., streets) and in emergency shelters, based on reliable
data from surveys of homeless populations, a Comprehensive Housing
Affordability Strategy (CHAS), or other reports or data gathering
mechanisms that directly support claims made;
(ii) An understanding of the homeless population to be served and
its unmet housing and supportive service needs.
(5) Innovative quality of the proposal. Applicants who have
indicated in their application that they are applying under the
innovative supportive housing component must receive points under this
criterion to be eligible for award. VA will award up to 50 points based
on the innovative quality of the proposal, when compared to other
applications and projects, in terms of:
(i) Helping homeless veterans or homeless veterans with
disabilities to be served to reach residential stability, increase
their skill level and/or income and increase the influence they have
over decisions that affect their lives; and
(ii) A clear link between the innovation(s) and its proposed
effect(s); and
(iii) Its ability to be used as a model for other projects.
(6) Leveraging. VA will award up to 50 points based on the extent
to which resources from other public and private sources, including
cash and the value of third party contributions, have been committed to
support the project at the time of application.
(Note: Any applicant who wishes to receive points under this
criterion must submit documentation of leveraged resources which
meets the requirements stated in the application. This is optional;
applicants who cannot, or choose not to, provide firm documentation
of resources as part of the application will forego any points for
leveraging.)
(7) Cost effectiveness. VA will award up to 100 points for cost
effectiveness. Projects will be rated based on the cost and number of
new supportive housing beds made available or the cost, amount and
types of supportive services made available, when compared to other
transitional housing and supportive services projects, and when
adjusted for high cost areas. Cost effectiveness may include using
excess government properties (local, State, Federal), as well as
demonstrating site control at the time of application.
(8) Coordination with other programs. VA will award up to 200
points based on the extent to which applicants demonstrate that they
have coordinated with Federal, State, local, private and other entities
serving homeless persons in the planning and operation of the project.
Such entities may include shelter, transitional housing, health care,
or social service providers; providers funded through Federal
initiatives; local planning coalitions or provider associations; or
other programs relevant to the local community. Applicants are required
to demonstrate that they have coordinated with the VA medical care
facility of jurisdiction and VA Regional Offices of jurisdiction in
their area.
(i) Higher points will be given to those applicants that can
demonstrate that:
(A) They are part of an ongoing community-wide planning process
which is designed to share information on available resources and
reduce duplication among programs that serve homeless veterans;
(B) They have consulted directly with other providers regarding
coordination of services for project participants. VA will award up to
50 points of the 200 points for this criterion based on the extent to
which commitments to provide supportive services are available at the
time of application. Applicants who wish to receive points under this
optional criterion must submit documentation of supportive service
resources.
Sec. 17.712 Selecting applications.
(a) General. The highest-ranked applications will be conditionally
selected in accordance with their ranked order, as determined under
Sec. 17.711 of this part. Each will be requested, as necessary, to
provide additional project information, as described in Sec. 17.713 of
this part, as a prerequisite to a grant award from VA.
(b) Ties between applicants. In the event of a tie between
applicants, VA will use the selection criterion in Sec. 17.711(d)(4) of
this part, need for the type of project proposed in the area to be
served, to determine which application should be selected for potential
funding.
(c) Procedural error. If an application would have been selected
but for a procedural error committed by VA, VA will select that
application for potential funding when sufficient funds become
available if there is no material change in the information that
resulted in its selection. A new application will not be required for
this purpose.
Sec. 17.713 Obtaining additional information and awarding grants.
(a) Additional information. Applicants who have been conditionally
selected will be requested by VA to submit additional project
information, as described in the second submission of the application,
which may include:
(1) Documentation to show that the project is feasible;
(2) Documentation showing the sources of funding for the project
and firm financing commitments for the match described in Sec. 17.706
of this part;
(3) Documentation showing site control, as described in Sec. 17.731
of this part;
(4) Information necessary for VA to ensure compliance with the
provisions of the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.), as described in Sec. 17.714 of this part;
(5) A site survey performed by a licensed land surveyor. A
description of the site shall be submitted noting the general
characteristics of the site. This should include soil reports and
specifications, easements, main roadway approaches, surrounding land
uses, availability of electricity, water and sewer lines, and
orientation. The description should also include a map locating the
existing and/or new buildings, major roads, and public services in the
geographic area. Additional site plans should show all site work
including property lines, existing and new topography, building
locations, utility data, and proposed grades, roads, parking areas,
walks, landscaping, and site amenities.
(6) Design development (35 percent) drawings. (i) The applicant
shall provide to VA one set of sepias and two sets of prints, rolled
individually per set, to expedite the review process. The drawing shall
indicate the designation of all spaces, size of the areas and rooms and
indicate in outline the fixed and moveable equipment and furniture. The
drawings shall be drawn at \1/8\'' or \1/4\'' scale. Bedroom and toilet
layouts, showing clearances and Uniform Federal Accessibility Standards
requirements, should be shown at \1/4\'' scale. The total floor and
room areas shall be shown in the drawings. The drawings shall include:
(A) A plan of any proposed demolition work;
(B) A plan of each floor. For renovations, the existing conditions
and extent of new work should be clearly delineated;
(C) Elevations;
(D) Sections and typical details;
(E) Roof plan;
(F) Fire protection plans; and
(G) Technical engineering plans, including structural, mechanical,
plumbing, and electrical drawings.
(ii) If the project involves acquisition, remodeling, or
renovation, the applicant should include the current as-built site
plan, floor plans and building sections which show the present status
of the building and a description of the buildings current use and type
of construction.
(7) Design development outline specifications. The applicant shall
provide eight copies of outline specifications which shall include a
general description of the project, site, architectural, structural,
electrical and mechanical systems such as elevators, air conditioning,
heating, plumbing, lighting, power, and interior finishes (floor
coverings, acoustical material, and wall and ceiling finishes).
(8) Design development cost estimates. The applicant shall provide
three copies of cost estimates showing the estimated cost of the
buildings or structures to be acquired or constructed in the project.
Cost estimates should list the cost of construction, contract
contingency, fixed equipment not included in the contract, movable
equipment, architect's fees and construction supervision and
inspection.
(9) A design development conference. After VA reviews design
development documents, a design development conference may be
recommended in order to provide applicants and their architects an
opportunity to learn VA procedures and requirements for the project and
to discuss VA review comments.
(10) Such other documentation as specified by VA in writing to the
applicant, that confirms or clarifies information provided in the
application.
(b) Receipt of additional information. The required additional
information must be received in acceptable form within the timeframe
established by VA in a notice of fund availability published in the
Federal Register. VA reserves the right to remove any proposed project
from further consideration for grant assistance if the required
additional project information is not received in acceptable form by
the established deadline.
(c) Grant award. Following receipt of the additional information in
acceptable form (and, where applicable, provided that the environmental
review described in Sec. 17.714 indicates that the proposed project is
environmentally acceptable to VA), to the extent funds are available VA
will approve the application and send a grant agreement for execution
to the applicant.
Sec. 17.714 Environmental review requirements.
(a) Generally. Project selection is subject to completion of an
environmental review of the proposed site, and the project may be
modified or the site rejected as a result of that review. The
environmental effects must be assessed in accordance with the
requirements of the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et. seq.) (NEPA) as implemented pursuant to the Council on
Environmental Quality's applicable regulations (40 CFR parts 1500-1508)
and VA's applicable implementing regulations (38 CFR part 26).
(b) Responsibility for review. (1) VA will perform the
environmental review, in accordance with part 26 of this title, for
conditionally selected applications received directly from private
nonprofit organizations and governmental entities with special or
limited purpose powers. VA is not permitted to approve such
applications prior to its completion of this review. Because of time
constraints, any application subject to environmental review by VA that
requires an Environmental Impact Statement (EIS) (generally, an
application that VA determines would result in a major Federal action
significantly affecting the quality of the human environment in
accordance with the environmental assessment procedures at (38 CFR part
26) will not be eligible for assistance under this part.
(2) Applicants that are States, metropolitan cities, urban
counties, Indian tribes, or other governmental entities with general
purpose powers shall include environmental documentation for the
project by submitting information establishing a Categorical Exclusion
(CE), a proposed Environmental Assessment (EA), or a proposed
Environmental Impact Statement (EIS). The environmental documentation
will require approval by VA before final award of a construction or
acquisition grant under this part. (See 38 CFR 26.6 for compliance
requirements.) If the proposed actions involving construction or
acquisition do not individually or cumulatively have a significant
effect on the human environment, the applicant shall submit a letter
noting a CE. If construction outside the walls of an existing structure
will involve more than 75,000 gross square feet (GSF), the application
shall include an EA to determine if an EIS is necessary for compliance
with section 102(2)(c) of the National Environmental Policy Act of
1969. When the application submission requires an EA, the State shall
briefly describe the possible beneficial and/or harmful effect which
the project may have on the following impact categories:
(i) Transportation;
(ii) Air quality;
(iii) Noise;
(iv) Solid waste;
(v) Utilities;
(vi) Geology (soils/hydrology/flood plains);
(vii) Water quality;
(viii) Land use;
(ix) Vegetation, wildlife, aquatic, and ecology/wetlands;
(x) Economic activities;
(xi) Cultural resources;
(xii) Aesthetics;
(xiii) Residential population;
(xiv) Community services and facilities;
(xv) Community plans and projects; and
(xvi) Other.
(3) If an adverse environmental impact is anticipated, the action
to be taken to minimize the impact should be explained in the EA. An
entity covered by this section that believes that it does not have the
legal capacity to carry out the responsibilities required by 38 CFR
Part 26 should contact the VA Homeless Providers Grant and Per Diem
Program, Mental Health and Behavioral Sciences Service (111C), U.S.
Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC
20420, for further instructions. Determinations of legal capacity will
be made on a case-by-case basis.
Sec. 17.715 Aid for supportive services and supportive housing.
(a) Per diem payments. Aid in the form of per diem payments may be
paid to a recipient of a grant under this part, or to an entity
eligible for such a grant, that after November 10, 1992 establishes a
program for providing supportive services or supportive housing to
homeless veterans, or a service center, if:
(1) VA referred the homeless veteran to a recipient of a grant
under this part (or entity eligible for such a grant as described in
Sec. 17.715(a) of this part); or
(2) VA authorized the provision of supportive services or
supportive housing for the homeless veteran.
(b) In-kind assistance. In lieu of per diem payments under this
section, VA may, with approval of the grant recipient (or entity
eligible for such a grant as described in Sec. 17.715(a) of this part),
provide in-kind assistance through the services of VA employees and the
use of other VA resources, to a grant recipient (or entity eligible for
such a grant as described in Sec. 17.715(a) of this part).
Sec. 17.716 Eligibility to receive payments.
An entity must be formally recognized by VA as eligible to receive
payments under this section before payments can be made for the care of
homeless veterans, except that payments may be made on behalf of a
veteran up to three days prior to this recognition. An entity may be
recognized if:
(a) It is an entity receiving a grant, or eligible to receive a
grant under this part,
(b) At least 75 percent of persons who are receiving supportive
services or supportive housing from the entity are veterans who may be
included in the computation of the amount of aid payable from the
Department of Veterans Affairs, and
(c) The supportive services or supportive housing program for which
per diem payments is requested was established after November 10, 1992.
Sec. 17.717 Requesting recognition.
Requests for recognition of eligibility may be addressed to the VA
Homeless Providers Grant and Per Diem Program; Mental Health and
Behavioral Sciences Service (111C), U.S. Department of Veterans
Affairs, 810 Vermont Avenue NW., Washington, DC 20420.
Sec. 17.718 Approval of annexes and new facilities.
Separate applications for recognition must be filed for any annex,
branch, enlargement, expansion, or relocation of the site of service
provision of an eligible entity's facility which is not on the same or
contiguous grounds on which the parent facility is located. When an
eligible entity establishes sites which have not been inspected and
approved by VA, a request for separate approval of such sites must be
made. The prohibitions in Sec. 17.720 are also applicable to
applications for aid on behalf of any veteran cared for in a new annex,
branch or enlarged, expanded or relocated facility.
Sec. 17.719 Amount of aid payable.
(a) Maximum amount payable. The amount of per diem payments made
under paragraphs (1) and (2) of this section for services rendered to a
veteran shall not exceed one-half of the cost to the grant recipient
(or entity eligible for such a grant as described in Sec. 17.715(a) of
this part) of providing such services.
(1) The maximum per diem amount payable for supportive housing is
$30.00.
(2) The per diem amount payable for supportive services not
provided in conjunction with supportive housing is $1.10 for each half
hour during which supportive services are provided. The maximum per
diem amount payable for supportive services not in conjunction with
supportive housing is $17.60 per day.
(b) Limitation on per diem payments. Per diem payments may be paid
for a veteran under paragraph (a)(1) or (a)(2) of this section, but not
under both paragraphs (a)(1) and (a)(2).
(c) Limitation on duration of per diem payments. VA must
periodically review and approve, or terminate approval for, continued
per diem payments for each veteran. Such review shall occur at least
once every three months.
Sec. 17.720 Approval of eligibility.
(a) Eligibility determinations. A grant recipient (or entity
eligible for such a grant as described in Sec. 17.715(a) of this part)
will receive per diem payments or in-kind assistance from VA only for
the care of veterans whose separate eligibility has been determined by
VA, and only where VA has referred the veteran under Sec. 17.715(a)(1)
or has authorized the provision of supportive housing or supportive
services under Sec. 17.715(a)(2) of this part. A veteran does not have
to be eligible for VA medical care in order for the Department to make
per diem payments for that veteran.
(1) VA shall determine the eligibility of each veteran referred to
a grant recipient (or entity eligible for such a grant as described in
Sec. 17.715(a) of this part) prior to making such referral.
(2) To obtain such determination for veterans not referred by VA,
the grant recipient (or entity eligible for such a grant as described
in Sec. 17.715(a) of this part) will complete a VA application for
medical benefits for each veteran and submit it to the VA medical care
facility office of jurisdiction for determination of eligibility.
(b) Retroactive payments. Per diem payments may be paid
retroactively for services provided not more than three days before VA
approval is given where VA authorized the provision of services
pursuant to Sec. 17.715(a)(2).
Sec. 17.721 Inspections.
The Secretary may inspect any facility of an entity eligible for
per diem payments under this section at such times as are deemed
necessary. Such inspections shall be concerned with the physical plant;
records relating to admissions, discharges and occupancy; fiscal
records; and all other areas of interest necessary to a determination
of compliance with applicable laws and regulations relating to the
payment of Federal aid. The authority to inspect carries with it no
authority over the management or control of any entity eligible for per
diem payments under this section.
Sec. 17.722 Prerequisite for payment of aid.
No aid may be paid to eligible entities unless they meet the
requirement and standards described in Secs. 17.724 through 17.726 of
this part.
Sec. 17.723 Audit of recipients of aid.
(a) State and local government entities. State, local and Indian
tribal governments that receive $25,000 or more in assistance under
this part shall have an audit made in accordance with the requirements
of 38 CFR part 41.
(b) Nonprofit entities. Nonprofit entities receiving assistance
under this part shall be subject to the audit requirements contained in
OMB Circular A-133.
Sec. 17.724 General operation.
(a) State and local requirements. Each recipient of assistance
under this part must provide housing or services that are in compliance
with all applicable State and local housing codes, licensing
requirements, fire and safety requirements, and any other requirements
in the jurisdiction in which the project is located regarding the
condition of the structure and the operation of the housing or
services.
(b) Habitability standards. Except for such variations as are
proposed by the recipient that would not affect compliance with
paragraph (a) of this section and are approved by VA, supportive
housing must meet the following requirements:
(1) Structure and materials. The structures must be structurally
sound so as not to pose any threat to the health and safety of the
occupants and so as to protect the residents from the elements.
(2) Access. Entry and exit locations to the structure must be
capable of being utilized without unauthorized use of other private
properties, and must provide alternate means of egress in case of fire.
Buildings constructed or altered with Federal assistance must also be
accessible to the disabled, as required by Sec. 502 of the Americans
with Disabilities Act, referred to as the Architectural Barriers Act.
Waiver of the standards of the Architectural Barriers Act requires
approval of the Administrator of the General Services Administration.
(i) The Architectural Barriers Act requires that Federal and
Federally-assisted buildings, the intended use for which either will
require that such building be accessible to the public, or may result
in the employment or residence therein of physically handicapped
persons, be accessible to the disabled. This requirement applies to
buildings to be constructed or altered by or on behalf of the United
States, and to buildings to be leased in whole or in part by the United
States (42 U.S.C. 4151).
(ii) Accessibility guidelines for buildings and facilities are set
forth in 36 CFR part 1191.
(3) Space and security. Each resident must be afforded appropriate
space and security for themselves and their belongings. Each resident
must be provided an acceptable place to sleep that is in compliance
with local codes and regulations.
(4) Interior air quality. Every room or space must be provided with
natural or mechanical ventilation. Structures must be free of
pollutants in the air at levels that threaten the health of residents.
(5) Water supply. The water supply must be free from contamination.
(6) Sanitary facilities. Residents must have access to sufficient
sanitary facilities that are in proper operating condition, may be used
in privacy, and are adequate for personal cleanliness and the disposal
of human waste.
(7) Thermal environment. The housing must have adequate heating
and/or cooling facilities in proper operating condition.
(8) Illumination and electricity. The housing must have adequate
natural or artificial illumination to permit normal indoor activities
and to support the health and safety of residents. Sufficient
electrical sources must be provided to permit use of essential
electrical appliances while assuring safety from fire.
(9) Food preparation and refuse disposal. All food preparation
areas must contain suitable space and equipment to store, prepare, and
serve food in a sanitary manner.
(10) Sanitary condition. The housing and any equipment must be
maintained in a sanitary manner.
(c) Meals. Each recipient of assistance under this part who
provides supportive housing for homeless veterans with disabilities
must provide meals or meal preparation facilities for residents.
(d) Ongoing assessment of supportive services. Each recipient of
assistance under this part must conduct an ongoing assessment of the
supportive services required by the residents of the project and the
availability of such services, and make adjustments as appropriate.
(e) Residential supervision. Each recipient of assistance under
this part must provide residential supervision necessary to facilitate
the adequate provision of supportive services to the residents of the
housing throughout the term of the commitment to operate supportive
housing. Residential supervision may include the employment or
volunteer services of a full- or part-time residential supervisor with
sufficient knowledge to provide or to supervise the provision of
supportive services to the residents.
(f) Participation of homeless veterans. (1) Each recipient of
assistance under this part must provide for the consultation and
participation of not less than one homeless veteran or formerly
homeless veteran on the board of directors or an equivalent
policymaking entity of the recipient, to the extent that such entity
considers and makes policies and decisions regarding any project,
supportive services, or assistance provided under this part. This
requirement may be waived if an applicant, despite a good faith effort
to comply, is unable to meet it and presents a plan, subject to VA
approval, to otherwise consult with homeless or formerly homeless
veterans in considering and making such policies and decisions.
(2) Each recipient of assistance under this part must, to the
maximum extent practicable, involve homeless veterans and families,
through employment, volunteer services, or otherwise, in constructing,
rehabilitating, maintaining, and operating the project and in providing
supportive services for the project. Programs that do not involve
homeless or formerly homeless veterans in such capacities may become
ineligible to receive per diem payments. This requirement is waived if
a recipient is unable to meet it and presents an explanation for VA
approval
(g) Accounting systems. Each recipient shall establish procedures
for fiscal control and fund accounting to ensure proper disbursement
and accounting of assistance received under this part.
(h) Confidentiality. (1) Each recipient that provides family
violence prevention or treatment services must develop and implement
procedures to ensure:
(i) The confidentiality of records pertaining to any individual
provided services; and
(ii) That the address or location of any project assisted will not
be made public by the recipient and its staff, except with written
authorization of the person or persons responsible for the operation of
the project.
(2) Each recipient of assistance under this part must maintain the
confidentiality of records kept on homeless veterans receiving
services.
(i) Limitation of stay in transitional housing. A homeless veteran
may remain in transitional housing for a period longer than 24 months,
if permanent housing for the veteran has not been located or if the
veteran requires additional time to prepare for independent living.
However, VA may discontinue assistance for a transitional housing
project if more than half of the homeless veterans remain in that
project longer than 24 months.
(j) Outpatient health services. VA may disapprove use of outpatient
health services provided through the recipient if VA determines that
such services are of unacceptable quality. VA will not pay per diems
for veterans who receive services from providers who VA has found to be
of unacceptable quality.
(k) Service center requirements. A service center for homeless
veterans shall provide services to homeless veterans for a minimum of
40 hours per week over a minimum of five days per week, as well as on
an as-needed, unscheduled basis. In addition:
(1) Space in a service center shall be made available as mutually
agreeable for use by VA staff and other appropriate agencies and
organizations to assist homeless veterans;
(2) A service center shall be equipped to provide, or assist in
providing, health care, mental health services, hygiene facilities,
benefits and employment counseling, meals, and transportation
assistance;
(3) A service center shall provide other services as VA determines
necessary based on the need for services otherwise not available in the
geographic area;
(4) A service center may be equipped and staffed to provide, or to
assist in providing, job training and job placement services (including
job readiness, job counseling, and literacy and skills training), as
well as any outreach and case management services that may be necessary
to meet the requirements of this paragraph.
Sec. 17.725 Outreach activities.
Recipients must use their best efforts to ensure that eligible
hard-to-reach persons are served in the facility funded under this
part. Recipients are expected to make sustained efforts to engage
eligible persons so that they may be brought into the program. Outreach
should be directed primarily toward eligible persons who have a
nighttime residence that is an emergency shelter or a public or private
place not designed for, or ordinarily used as, a regular sleeping
accommodation for human beings (e.g., persons living in cars, streets
and parks).
Sec. 17.726 Resident rent.
(a) Calculation of resident rent. Each resident of supportive
housing may be required to pay as rent an amount determined by the
recipient which may not exceed the highest of:
(1) 30 percent of the resident's monthly adjusted income
(adjustment factors include the number of relatives in the family
residing with the veteran, medical expenses, and child care expenses);
(2) 10 percent of his or her family's monthly income; or
(3) If the family is receiving payments for welfare assistance from
a public agency and a part of the payments, adjusted in accordance with
the family's actual housing costs, is specifically designated by the
agency to meet the family's housing costs, the portion of the payments
that is designated.
(b) Use of rent. Resident rent may be used in the operation of the
project or may be reserved, in whole or in part, to assist residents of
transitional housing in moving to permanent housing.
(c) Fees. In addition to resident rent, recipients may charge
residents reasonable fees for services not paid with VA per diem funds
or provided to the service provider by in-kind assistance through the
services of VA employees and the use of other VA resources.
Sec. 17.727 Grant agreement.
(a) General. The duty to provide supportive housing or supportive
services, or to establish a service center in accordance with the
requirements of this part will be incorporated in a grant agreement
executed by VA and the recipient.
(b) Enforcement. VA will enforce the obligations in the grant
agreement through such action as may be appropriate, including
repayment of funds that have already been disbursed to the recipient.
Sec. 17.728 Program changes.
(a) VA approval. (1) A recipient may not make any significant
changes to an approved program without prior VA approval. Significant
changes include, but are not limited to, a change in the recipient, a
change in the project site, additions or deletions in the types of
activities listed in Sec. 17.702 of this part approved for the program,
certain shifts of funds from one approved type of activity to another,
and a change in the category of participants to be served.
(i) Recipients of grants exceeding $100,000 for nonconstruction
projects who are State or local governments must receive prior VA
approval for cumulative transfers among direct cost categories which
exceed or are expected to exceed ten percent of the current total
approved budget.
(ii) Recipients of grants for projects involving both construction
and nonconstruction who are State or local governments must receive
prior VA approval for any budget revision which would transfer funds
between nonconstruction and construction categories.
(iii) Recipients of grants exceeding $100,000 who are nonprofit
entities must receive prior VA approval for cumulative transfers among
direct cost categories or programs, functions and activities which
exceed or are expected to exceed ten percent of the total budget as
last approved by VA.
(2) Approval for changes is contingent upon the application ranking
remaining high enough after the approved change to have been
competitively selected for funding in the year the application was
selected.
(b) Documentation of other changes. Any changes to an approved
program that do not require prior VA approval must be fully documented
in the recipient's records.
Sec. 17.729 Obligation and deobligation of funds.
(a) Obligation of funds. When VA and the applicant execute a grant
agreement, funds are obligated to cover the amount of the approved
assistance under Secs. 17.702 through 17.707 of this part. The
recipient will be expected to carry out the supportive housing or
supportive services activities as proposed in the application.
(b) Increases. After the initial obligation of funds, VA will not
make revisions to increase the amount obligated.
(c) Deobligation. (1) VA may deobligate all or parts of grants
awarded under this part:
(i) If the actual total cost of acquisition, rehabilitation,
acquisition and rehabilitation, or new construction of facilities, or
the cost of procurement of a van, is less than the total cost
anticipated in the application, or
(ii) Where a recipient materially fails to comply with the terms
and conditions of an award under this part.
(2) The grant agreement may set forth in detail other circumstances
under which funds may be deobligated, and other sanctions may be
imposed. Such sanctions may include, among other remedies: temporarily
withholding cash payments pending correction of a deficiency, denying
the use of grant or matching funds for all or part of the cost of an
activity not in compliance, wholly or partly suspending an award, and
withholding further awards to the recipient.
(3) Where a recipient has no control over causes for delays in
implementing a project, any delays due to causes beyond a recipient's
control may, with VA approval, suspend the running of any period in
which the recipient must implement a program or risk deobligation of
funds or other VA remedies.
(4) VA may:
(i) Readvertise in a notice of fund availability under Sec. 17.708
of this part, the availability of funds awarded that were deobligated
in the same fiscal year as obligated; or
(ii) Award funds deobligated in the same fiscal year as obligated
to applications previously submitted in response to the most recently
published notice of fund availability, and in accordance with
Secs. 17.708 through 17.714 of this part; or
(iii) If legally authorized, award amounts deobligated in a fiscal
year later than the fiscal year in which they were obligated to
applications previously submitted in response to the most recently
published notice of fund availability, and in accordance with
Secs. 17.708 through 17.714 of this part.
Sec. 17.730 Displacement, relocation, and acquisition.
(a) Minimizing displacement. Consistent with other goals and
objectives of this part, recipients must take all reasonable steps to
minimize the displacement of persons (families, individuals,
businesses, nonprofit organizations, and farms) as a result of
supportive housing, supportive services, or service centers assisted
under this part. These requirements apply to all interests in real
property acquired for project purposes regardless of Federal
participation in the purchases.
(b) Relocation assistance for displaced persons. A displaced person
must be provided relocation assistance at the levels described in, and
in accordance with, the requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42
U.S.C. 4601-4655).
(c) Certification. The recipient must certify that it will comply
with the URA, and must ensure such compliance notwithstanding any third
party's contractual obligation to the recipient to comply with these
provisions.
(d) Cost of relocation assistance. The cost of required relocation
assistance is not an eligible project cost, in that such costs are
operational costs. Such costs must be paid for with local public funds
or funds available from other sources.
(e) Definition of initiation of negotiations. For purposes of
determining the formula for computing the replacement housing
assistance to be provided to a residential tenant displaced as a direct
result of privately undertaken rehabilitation, demolition, or
acquisition of the real property, the term ``initiation of
negotiations'' means the execution of the agreement between the
recipient and VA, or selection of the project site, if later.
Sec. 17.731 Site control.
(a) Site control. (1) Where grant funds will be used for
acquisition, rehabilitation, or new construction to provide supportive
housing or supportive services, or to establish service centers, except
where an applicant will provide services at sites not operated by the
applicant, an applicant must demonstrate site control (e.g., through a
deed, capital lease, executed contract of sale) before VA will execute
a grant agreement.
(2) If such site control is not demonstrated within one year after
initial notification of the award of assistance under this part, the
grant will be deobligated as provided in paragraph (c) of this section.
(b) Site change. (1) A recipient may obtain ownership or control of
a suitable site different from the one specified in its application.
Retention of an assistance award is subject to the new site's meeting
all requirements for suitable sites under this part.
(2) If the acquisition, rehabilitation, acquisition and
rehabilitation, or new construction costs of the substitute site are
greater than the amount of the grant awarded for the site specified in
the application, the recipient must provide for all additional costs.
If the recipient is unable to demonstrate to VA that it is able to
provide for the difference in costs, VA may deobligate the award of
assistance.
(c) Failure to obtain site control within one year. VA will
deobligate any award for assistance under this part or pursue other
remedies described in Sec. 17.729(c) of this part if the recipient is
not in control of a suitable site before the expiration of one year
after initial notification of an award.
[FR Doc. 94-13051 Filed 5-31-94; 8:45 am]
BILLING CODE 8320-01-P
