[Federal Register Volume 59, Number 188 (Thursday, September 29, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-24066]
[[Page Unknown]]
[Federal Register: September 29, 1994]
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DEPARTMENT OF VETERANS AFFAIRS
38 CFR Part 17
RIN 2900-AG82
Transitional Housing Loan Program
AGENCY: Veterans Health Administration.
ACTION: Final rule.
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SUMMARY: This document establishes application provisions and selection
criteria for loans to non-profit organizations for use in initial
startup costs for transitional housing for veterans who are in (or have
recently been in) a program for the treatment of substance abuse. This
new program is intended to increase the amount of transitional housing
available for such veterans who need a period of supportive housing to
encourage sobriety maintenance and reestablishment of social and
community relationships.
EFFECTIVE DATE: September 29, 1994.
FOR FURTHER INFORMATION CONTACT:
Christine Woods, Administrative Officer, Office of Deputy Associate
Director for Psychiatric Rehabilitation Services, at (804) 722-9961
x3628. (This is not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
In a document published in the Federal Register on August 1, 1994,
(59 F.R. 38947) the VA proposed to establish Transitional Housing Loan
Program regulations. Comments were solicited for a period of 30 days.
No comments were received. The rationale presented in the proposed rule
still provides the basis for this final rule. Therefore, based on the
rationale set forth in the proposed rule, the VA hereby adopts the
provisions of the proposed rule as a final rule without change.
E.O. 12866
This action is exempt from OMB review under E.O. 12866.
Regulatory Flexibility Act
The Secretary hereby certifies that the provisions of this final
rule would not have a significant economic impact on a substantial
number of small entities as they are defined in the Regulatory
Flexibility Act (RFA), 5 U.S.C. 601-612. The reason for this
certification is that in all likelihood, only similar entities that are
small entities would seek loans under this program. Therefore, pursuant
to 5 U.S.C. 605(b), this rule is exempt from the initial and final
regulatory flexibility analysis requirements of sections 603 and 604.
Administrative Procedure Act
Pursuant to 5 U.S.C. 553, the VA has found good cause for making
this final rule effective upon publication in light of the critical
need to provide transitional housing to veterans.
List of Subjects
Administrative practice and procedure, Alcohol abuse, Alcoholism,
Claims, Daycare, Dental health, Drug abuse, Foreign relations,
Government contracts, Grant programs--health, Grant programs--veteran,
Healthcare, Health facilities, Health professionals, Health records,
Loans, Medical and dental schools, Medical devices, Medical research,
Medical health programs, Nursing homes, Philippines, Reporting and
recordkeeping requirements, Scholarships and fellowships, Travel and
transportation expenses, Veterans, Veterans Affairs Department.
Approved: September 23, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
For the reasons set out in the preamble, 38 CFR part 17 is amended
as set out 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, unless otherwise
noted.
2. Part 17 is amended by adding Secs. 17.800 through 17.805 and an
undesignated center heading preceding section 17.800 to read as
follows:
Transitional Housing Loan Program
Sec. 17.800 Purpose.
The purpose of the Transitional Housing Loan Program regulations is
to establish application provisions and selection criteria for loans to
non-profit organizations for use in initial startup costs for
transitional housing for veterans who are in (or have recently been in)
a program for the treatment of substance abuse. This program is
intended to increase the amount of transitional housing available for
such veterans who need a period of supportive housing to encourage
sobriety maintenance and reestablishment of social and community
relationships.
Sec. 17.801 Definitions.
(a) Applicant: A non-profit organization making application for a
loan under this program.
(b) Non-profit organization: A secular or religious organization,
no part of the net earnings of which may inure to the benefit of any
member, founder, contributor, or individual. The organization must
include a voluntary board and must either maintain or designate an
entity to maintain an accounting system which is operated in accordance
with generally accepted accounting principles. If not named in, or
approved under Title 38 U.S.C. (United States Code), Section 5902, a
non-profit organization must provide VA with documentation which
demonstrates approval as a non-profit organization under Internal
Revenue Code, Section 501.c(3).
(c) Recipient: A non-profit organization which has received a loan
from VA under this program.
(d) Veteran: A person who served in the active military, naval, or
air service, and who was discharged or released therefrom under
conditions other than dishonorable.
(Authority: Sec. 8 of Pub. L. 102-54, 105 Stat 271, 38 U.S.C. 501)
Sec. 17.802 Application provisions.
(a) To obtain a loan under these Transitional Housing Loan Program
regulations, an application must be submitted by the applicant in the
form prescribed by VA in the application package. The completed
application package must be submitted to the Deputy Associate Director
for Psychiatric Rehabilitation Services, (302/111C), VA Medical Center,
100 Emancipation Drive, Hampton, VA 23667. An application package may
be obtained by writing to the proceeding address or telephoning (804)
722-9961 x3628. (This is not a toll-free number)
(b) The application package includes exhibits to be prepared and
submitted, including:
(1) Information concerning the applicant's income, assets,
liabilities and credit history,
(2) Information for VA to verify the applicant's financial
information,
(3) Identification of the official(s) authorized to make financial
transactions on behalf of the applicant,
(4) Information concerning:
(i) The history, purpose and composition of the applicant,
(ii) The applicant's involvement with recovering substance abusers,
including:
(A) Type of services provided,
(B) Number of persons served,
(C) Dates during which each type of service was provided,
(D) Names of at least two references of government or community
groups whom the organization has worked with in assisting substance
abusers,
(iii) The applicant's plan for the provision of transitional
housing to veterans including:
(A) Means of identifying and screening potential residents,
(B) Number of occupants intended to live in the residence for which
the loan assistance is requested,
(C) Residence operating policies addressing structure for
democratic self-government, expulsion policies for nonpayment, alcohol
or illegal drug use or disruptive behavior,
(D) Type of technical assistance available to residents in the
event of house management problems,
(E) Anticipated cost of maintaining the residence, including rent
and utilities,
(F) Anticipated charge, per veteran, for residing in the residence,
(G) Anticipated means of collecting rent and utilities payments
from residents,
(H) A description of the housing unit for which the loan is sought
to support, including location, type of neighborhood, brief floor plan
description, etc., and why this residence was selected for this
endeavor.
(iv) The applicant's plans for use of the loan proceeds.
(Authority: Sec. 8 of Pub. L. 102-54, 105 Stat. 271, 38 U.S.C. 501)
Sec. 17.803 Order of consideration.
Loan applications will be considered on a first-come-first-serve
basis, subject to availability of funds for loans and awards will be
made on a first-come-first-serve basis to applicants who meet the
criteria for receiving a loan. If no funds are available for loans,
applications will be retained in the order of receipt for consideration
as funds become available.
(Authority: Sec. 8 of Pub. L. 102-54, 105 Stat. 271, 38 U.S.C. 501)
Sec. 17.804 Loan approval criteria.
Upon consideration of the application package, loan approval will
be based on the following:
(a) Favorable financial history and status,
(1) A minimum of a two-year credit history,
(2) No open liens, judgments, and no unpaid collection accounts,
(3) No more than two instances where payments were ever delinquent
beyond 60 days,
(4) Net ratio: (monthly expenses divided by monthly cash flow) that
does not exceed 40%,
(5) Gross ratio: (total indebtedness divided by gross annual cash
flow) that does not exceed 35%,
(6) At least two favorable credit references,
(b) Demonstrated ability to successfully address the needs of
substance abusers as determined by a minimum of one year of successful
experience in providing services, such as, provision of housing,
vocational training, structured job seeking assistance, organized
relapse prevention services, or similar activity. Such experience would
involve at least twenty-five substance abusers, and would be experience
which could be verified by VA inquiries of government or community
groups with whom the applicant has worked in providing these services.
(c) An acceptable plan for operating a residence designed to meet
the conditions of a loan under this program, which will include:
(1) Measures to ensure that residents are eligible for residency,
i.e., are veterans, are in (or have recently been in) a program for the
treatment of substance abuse, are financially able to pay their share
of costs of maintaining the residence, and agree to abide by house
rules and rent/utilities payment provisions,
(2) Adequate rent/utilities collections to cover cost of
maintaining the residence,
(3) Policies that ensure democratic self-run government, including
expulsion policies, and
(4) Available technical assistance to residents in the event of
house management problems.
(d) Selection of a suitable housing unit for use as a transitional
residence in a neighborhood with no known illegal drug activity, and
with adequate living space for number of veterans planned for residence
(at least one large bedroom for every three veterans, at least one
bathroom for every four veterans, adequate common space for entire
household)
(e) Agreements, signed by an official authorized to bind the
recipient, which include:
(1) The loan payment schedule in accordance with the requirements
of Pub. L. 102-54, with the interest rate being the same as the rate
the VA is charged to borrow these funds from the U.S. Department of
Treasury and with a penalty of 4% of the amount due for each failure to
pay an installment by the date specified in the loan agreement
involved, and
(2) The applicant's intent to use proceeds of loan only to cover
initial startup costs associated with the residence, such as security
deposit, furnishings, household supplies, and any other initial startup
costs.
(Authority: Sec. 8 of Pub. L. 102-54, 105 Stat. 271, 38 U.S.C. 501)
Sec. 17.805 Additional terms of loans.
In the operation of each residence established with the assistance
of the loan, the recipient must agree to the following:
(a) The use of alcohol or any illegal drugs in the residence will
be prohibited;
(b) Any resident who violates the prohibition of alcohol or any
illegal drugs will be expelled from the residence;
(c) The cost of maintaining the residence, including fees for rent
and utilities, will be paid by residents;
(d) The residents will, through a majority vote of the residents,
otherwise establish policies governing the conditions of the residence,
including the manner in which applications for residence are approved;
(e) The residence will be operated solely as a residence for not
less than six veterans.
(Authority: Sec. 8 of Pub. L. 102-54, 105 Stat. 271, 38 U.S.C. 501)
[FR Doc. 94-24066 Filed 9-28-94; 8:45 am]
BILLING CODE 8320-01-M
