97-3283. VA Homeless Providers Grant and Per Diem Program Clarification of Per Diem Eligibility  

  • [Federal Register Volume 62, Number 28 (Tuesday, February 11, 1997)]
    [Rules and Regulations]
    [Pages 6121-6126]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-3283]
    
    
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    DEPARTMENT OF VETERANS AFFAIRS
    
    38 CFR Part 17
    
    RIN 2900-AH89
    
    
    VA Homeless Providers Grant and Per Diem Program Clarification of 
    Per Diem Eligibility
    
    AGENCY: Department of Veterans Affairs.
    
    ACTION: Final rule.
    
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    SUMMARY: This document amends the regulations implementing the VA 
    Homeless Providers Grant and Per Diem Program concerning per diem 
    assistance by: Establishing more detailed criteria for determining 
    which entities are eligible for obtaining per diem assistance; 
    establishing a priority for funding eligible entities: Clarifying the 
    requirements for continued receipt of per diem payments; and clarifying 
    the maximum amount payable for per diem assistance. This rule is 
    designed to ensure that the appropriate entities receive the 
    appropriate amount of per diem assistance under fair and objective 
    procedures.
    
    EFFECTIVE DATES: March 13, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Roger Casey, VA Homeless Providers 
    Grant and Per Diem Program, Mental Health Strategic Health Group 
    (116E), Department of Veterans Affairs, 810 Vermont Avenue, NW, 
    Washington, DC 20420; (202) 273-8442. (This is not a toll-free number.)
    
    SUPPLEMENTARY INFORMATION: In the Federal Register of July 16, 1996 (61 
    FR 37024), VA published a proposal to amend the regulations 
    implementing the VA Homeless Providers Grant and Per Diem Program. 
    Interested persons were invited to submit written comments on or before 
    September 16, 1996. No comments were received. The information 
    presented in the proposed rule document still provides a basis for this 
    final rule. Therefore, based on the rationale set forth in the proposed 
    rule document, we are adopting the provisions of the proposed rule as a 
    final rule with changes discussed below and with nonsubstantive 
    changes.
    
    Paperwork Reduction Act
    
        Information collection and recordkeeping requirements associated 
    with this final rule concerning VA Homeless Providers Grants (38 CFR 
    17.710-17.714) have been approved by OMB under the provisions of the 
    Paperwork Reduction Act (44 U.S.C. 3501-3520) and have been assigned 
    OMB Control Number 2900-0554. The regulations require that the 
    application for VA Homeless Providers Grants be submitted on VA forms 
    included in the application package. The corresponding form numbers are 
    included in the text of the rule.
        Information collection and recordkeeping requirements associated 
    with this final rule concerning the VA Homeless Providers Per Diem have 
    not been approved by OMB under the provisions of the Paperwork 
    Reduction Act. OMB has withheld approval pending review of any comments 
    received. VA intends to obtain OMB control numbers for the information 
    collection requirements concerning VA Homeless Providers Per Diem. Once 
    OMB approval is received, OMB control numbers will be announced by a 
    separate Federal Register document.
        VA is not authorized to impose a penalty on persons for failure to 
    comply with information collection requirements which do not display a 
    current OMB control number, if required.
    
    Regulatory Flexibility Act
    
        The Secretary hereby certifies that the provisions of the final 
    rule will not have a significant economic impact on a substantial 
    number of small entities as they are defined in the Regulatory 
    Flexibility Act (RFA), 5 U.S.C. 601-602. In all likelihood, only 
    similar entities that are small entities will participate in the 
    Homeless Providers Grant and Per Diem Program, therefore, pursuant to 5 
    U.S.C. 605(b), this final rule is exempt from the initial and final 
    regulatory flexibility analysis requirement of sections 603 and 604.
    
        The Catalog of Federal Domestic Assistance program number is 
    64.024.
    
    List of Subjects in 38 CFR Part 17
    
        Administrative practice and procedure, Alcohol abuse, Alcoholism, 
    Claims, Day care, Dental health, Drug abuse, Foreign relations, 
    Government contracts, Grant programs-health, Grant programs-veterans, 
    Health care, Health facilities, Health professions, Health records, 
    Homeless, Medical and dental schools, Medical devices, Medical 
    research, Mental health programs, Nursing homes, Philippines, Reporting 
    and record-keeping requirements, Scholarships and fellowships, Travel 
    and transportation expenses, Veterans.
    
        Approved: January 31, 1997.
    Jesse Brown,
    Secretary of Veterans Affairs.
    
        For the reasons set forth in the preamble, 38 CFR part 17 is 
    amended as set forth below:
    
    PART 17--MEDICAL
    
        1. The authority citation for part 17 continues to read as follows:
    
        Authority: 38 U.S.C. 501, 1721, unless otherwise noted.
    
    
    Sec. 17.700  [Amended]
    
        2. In Sec. 17.700, paragraph (a) is amended by removing 
    ``17.715(a)'' and adding, in its place, ``17.716''.
        3. Sections 17.710 through 17.719 are revised to read as follows:
    
    
    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
    
    [[Page 6122]]
    
    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 (VA Forms 10-
    0362G, 10-0362H);
        (3) Documentation on eligibility to receive assistance under this 
    part (VA Form 10-0362J);
        (4) Documentation on matching funds committed to the projects (VA 
    Forms 10-0362N, 10-0362M);
        (5) Documentation on operating budget and cost sharing (VA Form 10-
    0362P);
        (6) Documentation on supportive services committed to the project 
    (VA Form 10-0362o);
        (7) Documentation on site control and appropriate zoning, and on 
    the boundaries of the area or community proposed to be served (VA Form 
    10-0362Q);
        (8) Applicants who are States must submit any comments or 
    recommendations by appropriate State (and areawide) clearinghouses 
    pursuant to E.O. 12372 (3 CFR, 1982 Comp., p. 197) (Standard Form SF 
    424); and
        (9) Reasonable assurances with respect to receipt of assistance 
    under this part that (VA Form 10-0362K):
        (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 nonveterans; 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 time frames 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 VA 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.
    
    (Paperwork requirements were approved by the Office of Management 
    and Budget under control number 2900-0554.)
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    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) Forms, time, and adequacy. Applications must be filed in the 
    form prescribed by VA in the application process and within the time 
    established in the Notice of Funding Availability (NOFA).
        (2) Application 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 (e.g., new 
    programs or new components of existing programs).
        (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 in paragraphs (c)(1) through (c)(8) of this section. 
    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 (VA Forms 10-0362A, 10-
    0362D);.
        (2) Targeting to persons on streets and in shelters--150 points (VA 
    Form 10-0362C);
        (3) Ability of the applicants to develop and operate a project--200 
    points (VA Form 10-0362E);
        (4) Need for the type of project proposed in the area to be 
    served--150 points (VA Form 10-0362B);
        (5) Innovative quality of the proposal--50 points (VA Forms 10-
    0362A, 10-0362D);
        (6) Leveraging--50 points (VA Form 10-0362F);
        (7) Cost-effectiveness--100 points (VA Form 10-0362A); and
        (8) Coordination with other programs--200 points (VA Form 10-0362D-
    1).
        (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 to 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 individuals 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
    
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    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. Ratings 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 in the specified area or 
    community. Ratings will be made based on the extent to which applicants 
    demonstrate:
        (i) Substantial unmet needs, particularly among the target 
    population 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 
    criteria 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. 
    Higher points will be given to those applicants who can demonstrate 
    that:
        (i) 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;
        (ii) 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.
    
    (Paperwork requirements were approved by the Office of Management 
    and Budget under control number 2900-0554.)
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    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 from VA.
        (b) Ties between applicants. In the event of a tie between 
    applicants, VA will use the selecting 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.
    
    (Paperwork requirements were approved by the Office of Management 
    and Budget under control number 2900-0554.)
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    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 matching requirements 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
    
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    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 renovation, 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 building's 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 time frame 
    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 of this part 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.
    
    (Paperwork requirements were approved by the Office of Management 
    and Budget under control number 2900-0554.)
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    Sec. 17.714  Environmental review requirements.
    
        (a) General. 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 (NEPA) 
    (42 U.S.C. 4321, et seq.) 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 applications 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 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 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;
    
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        (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.
    
    (Paperwork requirements were approved by the Office of Management 
    and Budget under control number 2900-0554.)
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    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 an entity meeting the requirements of the regulations of this 
    part under the heading ``VA Homeless Providers Grant and Per Diem 
    Program,'' including the specific criteria of Sec. 17.716 of this part, 
    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. 17.716 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. 17.716 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. 17.716 of this part).
        (c) Selection of per diem applicants. In awarding per diem 
    assistance, applications from grant recipients and nongrant recipients 
    will be reviewed and ranked separately. Funds will first be awarded to 
    grant recipients who request such assistance. If funds are still 
    available for nongrant recipients, VA will announce funding through a 
    Notice of Funding Availability (NOFA) process as described in 
    Sec. 17.708 of this part. VA will not award per diem payments when 
    doing so would decrease funding to those entities already receiving 
    such payments. For both grant recipients and non-grant recipients, 
    eligibility will be determined by the criteria described in Sec. 17.716 
    of this part, and applications will be ranked according to scores 
    achieved on the portions of the application described in 
    Sec. 17.716(b)(4) of this part. Applicants must score a minimum of 500 
    points on these portions to be eligible for per diem. Those 
    applications that meet the eligibility criteria will be conditionally 
    selected for per diem assistance. Funds will be allocated to the 
    highest-ranked, conditionally selected applicants in descending order 
    until funds are expended. Payments will be contingent upon meeting the 
    requirements of a site inspection conducted by VA pursuant to 
    Sec. 17.721 of this part.
        (d) Continued receipt of per diem assistance. (1) Continued receipt 
    of per diem assistance for both grant recipients and nongrant 
    recipients will be contingent upon maintaining the program for which 
    per diem is provided so that it would score at least the required 
    minimum 500 points as described in Sec. 17.716(b)(4) of this part on 
    the application. VA will ensure compliance by conducting inspections as 
    described in Sec. 17.721 of this part.
        (2) Where the recipient fails to comply with paragraph (d)(1) of 
    this section, VA will issue a notice of the Department's intent to 
    discontinue per diem payments. The recipient will then have 30 days to 
    submit documentation demonstrating why payments should not be 
    terminated. After review of any such documentation, VA will issue a 
    final decision on termination of per diem payment.
        (3) Continued payment is subject to availability of funds. When 
    necessary due to funding limitations, VA will, in proportion to the 
    decrease in funding available, decrease the per diem payment for each 
    authorized veteran.
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    Sec. 17.716  Eligibility to receive per diem payments.
    
        An entity must be formally recognized by VA as eligible to receive 
    per diem payments under this section before per diem payments can be 
    made for the care of homeless veterans, except that per diem payments 
    may be made on behalf of a veteran up to three days prior to this 
    recognition.
        (a) A grant recipient will be eligible if it receives the minimum 
    score as described in paragraph (b)(4) of this section.
        (b) A nongrant recipient will be eligible if it is an entity 
    eligible to receive a grant, which for the purposes of this section 
    means:
        (1) At least 75 percent of persons who are receiving supportive 
    services or supportive housing from the entity are veterans who may be 
    included in computation of the amount of aid payable from VA;
        (2) The supportive services or supportive housing program for which 
    per diem payments is requested was established after November 10, 1992;
        (3) The entity is a public or nonprofit private entity; and
        (4) The entity score at least 500 cumulative points on the 
    following sections of the Grant/Per Diem application: Quality (1); 
    Targeting (2); Ability (3); Description of Need (4); and Coordination 
    with Other Programs (8). These sections correspond to the selection 
    criteria of Sec. 17.711(c) of this part.
        (c) For grant recipients, only those programs that provide 
    supportive services or supportive housing (or the portions thereof) 
    created with grant funds will be considered for per diem assistance. 
    For nongrant recipients, only those portions of the supportive services 
    or supportive housing described in the application will be considered 
    for per diem assistance.
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    Sec. 17.717  Request for recognition of eligibility.
    
        (a) Requests for recognition of eligibility may be addressed to the 
    VA Homeless Providers Grant and Per Diem Programs, Mental Health 
    Strategic Healthcare Group (116E), U.S. Department of Veterans Affairs, 
    810 Vermont Avenue NW, Washington, DC 20420.
        (b) For nongrant recipients, the receipt of application for per 
    diem will constitute the request for recognition of eligibility. Grant 
    recipients seeking per diem assistance will indicate this request on 
    the application. Grant recipients are not required to complete a 
    separate application for per diem assistance. VA will review those 
    portions of the grant application that pertain to per diem. Those 
    entities already receiving a grant must submit a request for 
    recognition to initiate the scoring of their application for per diem 
    payments.
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    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
    
    [[Page 6126]]
    
    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 of this part are also 
    applicable to applications for aid on behalf of any veterans cared for 
    in a new annex, branch or enlarged, expanded or relocated facility.
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    Sec. 17.719  Amount of aid payable.
    
        The per diem amount payable for supportive housing is the current 
    VA State Home Program per diem rate for domiciliary care as set forth 
    in 38 U.S.C. 1741. 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, up to $17.60 
    per day. These rates will be paid provided, however, the per diem 
    amount for supportive housing or supportive services (not provided in 
    conjunction with supportive housing) does not exceed one-half of the 
    cost to the per diem recipient of providing the services. Also, 
    provided further, per diem payment of supportive housing and supportive 
    services may be lessened because of budget restriction as described in 
    Sec. 17.715(d)(3) of this part. Per diem payments may not be paid for a 
    veteran for both supportive housing and supportive services (not in 
    conjunction with supportive housing).
    
    (Authority: 38 U.S.C. 501, 7721, note)
    
    
    Sec. 17.720  [Amended]
    
        (4) In Sec. 17.720, paragraphs (a) introductory text, (a)(1) , and 
    (a)(2) are amended by removing ``17.715(a)'' and adding, in their 
    place, ``17.716''.
    
    [FR Doc. 97-3283 Filed 2-10-97; 8:45 am]
    BILLING CODE 8320-01-P
    
    
    

Document Information

Effective Date:
3/13/1997
Published:
02/11/1997
Department:
Veterans Affairs Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-3283
Dates:
March 13, 1997.
Pages:
6121-6126 (6 pages)
RINs:
2900-AH89: Homeless Providers Grant and Per Diem Program, Clarification of Per Diem Eligibility
RIN Links:
https://www.federalregister.gov/regulations/2900-AH89/homeless-providers-grant-and-per-diem-program-clarification-of-per-diem-eligibility
PDF File:
97-3283.pdf
CFR: (18)
38 CFR 17.716(b)(4)
38 CFR 17.711(c)
38 CFR 17.715(d)(3)
38 CFR 17.700
38 CFR 17.708
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