Supportive Services for Veteran Families Program, 68975-68989 [2010-28407]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 75, Number 217 (Wednesday, November 10, 2010)]
[Rules and Regulations]
[Pages 68975-68989]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-28407]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 62

RIN 2900-AN53


Supportive Services for Veteran Families Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending its 
regulations to establish the Supportive Services for Veteran Families 
Program (SSVF Program). These amendments implement the provisions of 
section 604 of the Veterans' Mental Health and Other Care Improvements 
Act of 2008 (Act). The purpose of the SSVF Program is to provide 
supportive services grants to private non-profit organizations and 
consumer cooperatives who will coordinate or provide supportive 
services to very low-income veteran families who are residing in 
permanent housing, are homeless and scheduled to become residents of 
permanent housing within a specified time period, or after exiting 
permanent housing, are seeking other housing that is responsive to such 
very low-income veteran family's needs and preferences. The new SSVF 
Program is within the continuum of VA's homeless services programs.

DATES: This final rule is effective December 10, 2010.

FOR FURTHER INFORMATION CONTACT: John Kuhn, National Center for 
Homelessness Among Veterans, Supportive Services for Veteran Families 
Program Office, 4100 Chester Avenue, Suite 200, Philadelphia, PA 19104, 
(877) 737-0111 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register (75 FR 24514) on May 5, 2010, VA proposed to establish a new 
38 CFR part 62 consisting of regulations captioned ``SUPPORTIVE 
SERVICES FOR VETERAN FAMILIES PROGRAM'' (referred to below as the 
proposed rule). This document adopts as a final rule, with changes 
discussed below, the proposed rule. This final rule establishes 
regulations concerning the SSVF Program and is necessary to implement 
section 604 of the Act, which is codified at 38 U.S.C. 2044.
    VA provided a 30-day comment period that ended on June 4, 2010. VA 
received four submissions during this comment period on the proposed 
rule. One submission consisted of an inquiry about the timing for the 
award of supportive services grants, but did not contain any 
substantive comments on the proposed rule. The subject matter of the 
other submissions can be grouped into several categories, and we have 
organized our discussion of the comments accordingly.

Selecting Applicants To Receive Supportive Services Grants

    Two commenters provided recommendations regarding the scoring 
criteria used to rate applicants fulfilling the threshold requirements. 
Proposed Sec.  62.22 described the scoring criteria VA would use to 
score applicants fulfilling the threshold requirements.
    One commenter recommended that proposed Sec.  62.22(b)(2), the 
scoring criterion regarding the applicant's outreach and screening 
plan, include an examination of the thoroughness of coverage by using 
available data to estimate the total number of veterans who could be 
eligible for participation over the course of a year, and then to 
determine the percentage of veterans in the applicant's area or 
community that will be contacted through outreach and screening.
    We agree that the estimated number of participants and percentage 
of very low-income veterans served in an area or community should be 
considered when scoring the supportive services grant application; 
however, we think this can be better addressed through the scoring 
criterion relating to the need for program (Sec.  62.22(b)(1)) rather 
than the scoring criterion relating to the outreach and screening plan 
(Sec.  62.22(b)(2)). Section 62.20(a)(3) of the proposed rule stated 
that a complete supportive services grant application would include 
``an estimate with supporting documentation of the number of very

[[Page 68976]]

low-income veteran families occupying permanent housing who will be 
provided supportive services by the applicant and a description of the 
area or community where such very low-income veteran families are 
located.'' We added in Sec.  62.20(a)(3) that the description of the 
area or community must include ``an estimate of the total number of 
very low-income veteran families occupying permanent housing in such 
area or community.'' In accordance with Sec.  62.22(b)(1)(i), points 
will be awarded to an applicant who has shown ``a need amongst very 
low-income veteran families occupying permanent housing in the area or 
community where the program will be based.'' To determine need, the 
applicant's response to the information requested in Sec.  62.20(a)(3) 
will be evaluated.
    One commenter stated that the proposed rule did not include a 
scoring criterion that would award points to proposals that work with 
harder to serve populations of chronically homeless veterans. The 
commenter recommended awarding additional points to applicants serving 
chronically homeless veterans.
    We agree that applicants should be rewarded for targeting those 
very low-income veteran families most in need of supportive services. 
Therefore, we have amended the scoring criterion in Sec.  
62.22(b)(2)(i) to include a reference to the identification and 
assistance of those ``most in need of supportive services.'' We decline 
to make further changes based on this comment because Sec.  62.22(b)(6) 
allows points to be awarded to applicants that meet VA's requirements, 
goals and objectives of the SSVF Program as identified in the 
regulations and the Notice of Fund Availability. In the event that VA 
wishes to target certain populations, such as chronically homeless 
veterans, VA can highlight this in the Notice of Fund Availability and 
award points to applicants meeting the stated goal. In accordance with 
Sec.  62.40(d) of the rule, VA may also include priorities for funding 
to meet the statutory mandates of the Act and VA goals for the SSVF 
Program in the Notice of Fund Availability.
    One commenter recommended that specific goals should be included in 
the scoring criterion regarding an applicant's ``clear, realistic, and 
measurable goals'' set forth in proposed Sec.  62.22(c)(1). To more 
clearly specify the types of goals the applicant will receive points 
for describing, we have changed the criterion in Sec.  62.22(c)(1) to 
describe ``clear, realistic, and measurable goals that reflect the 
Supportive Services for Veteran Families Program's aim of reducing and 
preventing homelessness among very low-income veteran families.''

Selecting Applicants To Receive Supportive Services Grants

    Consistent with the Act (38 U.S.C. 2044(a)(4)), proposed Sec.  
62.23(d)(1) provided that VA would prefer applicants that provide, or 
coordinate the provision of, supportive services for very low-income 
veteran families transitioning from homelessness to permanent housing. 
One commenter stated that this preference is ``extremely important'' in 
order to ``promote the efficiency of this program at reducing 
homelessness.'' Because this preference is already included in Sec.  
62.23(d)(1) of the rule, no change is necessary based upon this 
comment.

Scoring Criteria for Grantees Applying for Renewal of Supportive 
Services Grants

    Proposed Sec.  62.24 described the scoring criteria VA would use to 
score grantees applying for renewal of a supportive services grant. 
Proposed Sec.  62.24(a) provided that up to 55 points would be awarded 
``based on the success of the grantee's program'' and listed certain 
criteria that would be used to determine the success of the grantee's 
program. One commenter recommended that ``[s]coring criteria should 
include success at reaching and serving veterans who are at greatest 
risk of homelessness or already homeless; and at reducing the number of 
homeless veterans in the service area.'' We agree with the comment, and 
add as Sec.  62.24(a)(iv) and Sec.  62.24(a)(v) of the rule the 
following scoring criteria: ``The grantee prevented homelessness among 
very low-income veteran families occupying permanent housing that were 
most at risk of homelessness;'' and, ``The grantee's program reduced 
homelessness among very low-income veteran families occupying permanent 
housing in the area or community served by the grantee.''

Cost Sharing Requirement

    Pursuant to proposed Sec.  62.26, grantees would be required to 
match a minimum of 10 percent of the amount of VA-provided supportive 
services grant funds with cash resources or third party in-kind 
contributions from non-VA sources. Under proposed Sec.  62.22(d)(3), an 
applicant would be awarded points if the applicant exceeded the minimum 
cost sharing requirement up to a certain percentage as set forth in the 
Notice of Fund Availability. The cost sharing requirement was included 
in the proposed rule to demonstrate the applicant's commitment to the 
SSVF Program and ensure continuity of program operations and assistance 
to participants.
    One commenter recommended removing the higher point threshold for 
the match in proposed Sec.  62.22(d)(3) and including a waiver process 
that could allow communities suffering budgetary hardship to avoid the 
match requirement. Another commenter supported the matching 
requirement, however, this commenter indicated that it was an entity 
that received no government funding for its existing veteran 
homelessness programs.
    We agree that some eligible entities may find the match requirement 
to be so burdensome that the eligible entity will decide not to apply 
for the supportive services grant or will incur a large administrative 
burden to justify in-kind consideration valuing 10 percent of the 
supportive services grant request. Because VA's goals for the cost 
sharing requirement can be met through other means during the 
supportive services grant application scoring process, imposing a 
formal percentage requirement is unnecessary. For example, it is likely 
that applicants that would have provided a match would also score well 
in the categories of financial capability and plan (see Sec.  62.22(d)) 
and community linkages (see Sec.  62.22(e)). Therefore, we have 
eliminated all references to the cost sharing requirement.

Supportive Service: Direct Provision of Case Management and Other 
Services

    Proposed Sec.  62.31 described a listing of baseline tasks that 
would fall within the supportive service of ``case management.'' One 
commenter recommended that case management should be defined to include 
the services listed under ``housing counseling'' in proposed Sec.  
62.33(i). The commenter was under the impression that under the 
proposed rule, grantees could only provide referrals for housing 
counseling, but could not directly provide housing counseling services 
to participants.
    We agree that housing counseling will be a critical part of a 
grantee's supportive services program and recognize that a grantee may 
wish to provide this service directly to participants, rather than 
through a referral. We have changed the introduction to Sec.  62.33 to 
clarify that grantees may elect to directly provide to participants the 
public benefits listed in Sec.  62.33(c) through Sec.  62.33(i), which 
include housing counseling. Alternatively, grantees may elect to 
provide a referral for participants to

[[Page 68977]]

obtain these public benefits through another entity. Section 62.33 of 
the rule gives the grantee the flexibility to determine which of 
certain listed public benefits, including housing counseling, the 
grantee will provide and which will be accomplished through referrals. 
Housing counseling remains in Sec.  62.33 to be consistent with our 
interpretation of the supportive services structure outlined in the Act 
(38 U.S.C. 2044(b)(1)(D)).
    As discussed above, we have changed the introduction to Sec.  62.33 
to clarify that grantees may elect to directly provide to participants 
the public benefits listed in Sec.  62.33(c) through Sec.  62.33(i). As 
stated in the proposed rule, although grantees may be able to directly 
provide many necessary supportive services, in some situations it would 
be more efficient for grantees to provide a referral for participants 
to obtain services provided by another Federal, State, or local agency 
or an eligible entity in the area or community served by the grantee. 
The proposed rule specified that health care services and daily living 
services could be accomplished through referrals; therefore, the final 
rule clarifies that these supportive services listed in Sec.  62.33(a) 
and Sec.  62.33(b) cannot be provided directly to participants.

Supportive Service: Assistance in Obtaining and Coordinating Other 
Public Benefits

    One commenter provided recommendations relating to the 
transportation and child care provisions in proposed Sec.  62.33. 
Proposed Sec.  62.33 described the supportive service of assistance in 
obtaining and coordinating other public benefits.
    Proposed Sec.  62.33(d) authorized the grantee to provide temporary 
transportation services to participants if the grantee determined that 
such assistance was necessary. Specifically, Sec.  62.33(d) described 
the provision of tokens, vouchers, or other appropriate instruments for 
use on public transportation as the preferred method of providing 
transportation services, but also would allow the cost of vehicle 
leases to be included in a supportive services grant application if an 
applicant determines that public transportation options are not 
sufficient within the area or community to be served. The commenter 
stated that ``in more rural settings[,] excluding car repair could be 
prohibitive for program participants.''
    We agree with the comment. We have added Sec.  62.33(d)(3), which 
authorizes grantees to provide assistance to a participant needing car 
repairs or maintenance in an amount not to exceed $1,000 during a 3-
year period. Any payments for car repairs or maintenance must be 
required to operate the vehicle, be reasonable, be paid directly to the 
third party repairing the car, and directly allow the participant to 
remain in permanent housing or obtain permanent housing. The $1,000 cap 
per participant is included so that payments for car repairs and 
maintenance do not consume a disproportionate amount of supportive 
services grant funds.
    One commenter recommended removing the requirement in Sec.  
62.33(h) that a facility providing child care services pursuant to 
payments from the grantee be State-licensed because ``home run daycare 
and other alternatives might be just as sufficient in many 
communities.''
    For safety reasons, we do not think that all licensing standards 
regarding child care providers should be removed; however, we agree 
that it would be beneficial to broaden the entities that would qualify 
as eligible child care providers. Accordingly, a definition of eligible 
child care provider is included in Sec.  62.2 of the rule that is 
consistent with the broader definition used by the Department of Health 
and Human Services (HHS) for their Child Care and Development Block 
grant (42 U.S.C. 9859(2)). Recipients of supportive services grant 
funds for child care may also be recipients of funds under HHS grant 
programs, so it will be helpful to use a definition consistent with 
that used by HHS. The broader HHS definition includes child care 
providers that are ``licensed, regulated, registered, or otherwise 
legally operating, under state and local law,'' which, in some 
jurisdictions, may include home run daycares.
    The commenter also requested that VA consider removing the 2-month 
per calendar year limit on child care services payments by grantees 
under Sec.  62.33(h) to allow grantees to determine and prioritize need 
within their jurisdiction. Although we agree that it is important to 
allow grantees to use some discretion in determining how supportive 
services grant funds should be expended, we also believe it is 
necessary to limit the duration of child care service expenditures in 
order to prevent child care services from consuming a disproportionate 
amount of supportive services grant funds. However, in response to the 
comment, we agree that 2 months may not be long enough to identify and 
obtain other assistance; hence, we have extended the time limitation in 
Sec.  62.33(h)(2)(i) from 2 months during a calendar year to 4 months 
in any 12-month period beginning on the date that the grantee first 
pays for child care assistance. ``Calendar year'' is changed to ``12-
month period'' to more accurately reflect VA's intention for the 
limitation, which is that the assistance be both short-term and 
temporary, not that it only be provided for a short time during a 
particular calendar year.

Other Supportive Services

    Two commenters recommended that a longer time period be authorized 
for rental assistance. Proposed Sec.  62.34(a) authorized the payment 
of rental assistance on behalf of a participant for a maximum of 4 
months during a 3-year period, with no more than 2 months of assistance 
in any calendar year. One commenter explained that some grantees may 
provide more shallow subsidies to participants for a longer period of 
time if need be. Another commenter recommended flexibility in the area 
of rental subsidies and reliance on outcome measures to provide 
incentives to grantees to avoid overspending on rental assistance.
    We agree with the suggestion to authorize a longer period of rental 
assistance, with the expectation that grantees will exercise discretion 
and only provide the amount of rental assistance that is necessary for 
a participant to obtain or remain in permanent housing. Hence, we have 
extended the amount of time a participant can receive rental assistance 
to 8 months during a 3-year period, with no more than 5 months of 
assistance during any 12-month period. ``Calendar year'' is changed to 
``12-month period'' to more accurately reflect VA's intention for the 
limitation, which is that the assistance be both short-term and 
temporary, not that it only be provided for a short time during a 
particular calendar year. We have similarly changed the ``calendar 
year'' limitation in Sec.  62.34(b)(1) on temporary financial 
assistance for utility-fee payment assistance to a ``12-month period.''
    One commenter suggested that the duration limitation on the 
provision of rental assistance could be mitigated by increasing the 
funding flexibility of other VA programs. We do not respond to these 
comments in this notice as they are beyond the scope of this 
rulemaking.
    Section 62.34(e) authorizes a grantee to purchase emergency 
supplies for a participant on a temporary basis. Section 62.2 defines 
``emergency supplies'' as ``items necessary for a participant's life or 
safety that are provided in order to address the participant's 
emergency situation.'' One commenter recommended providing a more 
detailed definition of emergency supplies, and specifying their allowed

[[Page 68978]]

use. The commenter explained, ``Leaving it as broad as it is currently 
stated leaves room for potential abuse and waste of limited program 
dollars.''
    We have not further defined emergency supplies or prescribed their 
allowed use based on the comment. Instead of providing an itemized list 
of acceptable items in the rule, we expect this to be determined by 
grantees on a case-by-case basis in accordance with the parameters 
provided in Sec.  62.2, which are that the items be ``necessary for a 
participant's life or safety'' and provided ``on a temporary basis in 
order to address [an] emergency situation.'' However, we share the 
commenter's concern about potential abuse of limited program dollars; 
therefore, to ensure that a disproportionate amount of funds are not 
spent on emergency supplies, we added a cap of $500 per participant 
during a 3-year period in Sec.  62.34(e)(1).
    This same commenter recommended imposing a budgetary cap for all 
services paid for by a grantee under Sec.  62.33. We decline to make 
any changes based on this comment aside from the $500 cap per 
participant for emergency services as discussed above. Through the 
programmatic oversight provisions and reporting requirements, and the 
enforcement provisions in Sec.  62.80, VA expects to be able to 
identify and address any inappropriate activities of the grantee.
    This commenter also recommended that, ``There should be language 
instituted in the Final Rule to prevent any grantee paying monies back 
to themselves for activities that could not be viewed as direct 
services to the client.'' We interpret this comment as recommending 
that grantees be prohibited from providing rental assistance on behalf 
of a participant if the grantee is also the participant's landlord.
    We made no changes based on this comment. Including such a change 
would unnecessarily penalize grantees who also serve as owners or 
managers of units occupied by very low-income veteran families. If the 
payment of supportive services grant funds to a grantee on behalf of a 
participant for rental assistance would be appropriate, reasonable, and 
meets the requirements set forth in the rule, a grantee should be able 
to make such a payment on behalf of a participant. Through the 
programmatic oversight provisions and reporting requirements, and the 
enforcement provisions in Sec.  62.80, VA expects to be able to 
identify and address any inappropriate activities of the grantee.
    The proposed rule included a condition that grantees providing 
temporary financial assistance would be required to help the 
participant develop a reasonable plan to address the participant's 
ability to pay for the item for which assistance is being provided 
(i.e. child care, rent, utilities, utilities or security deposits, and 
moving costs) and assist the participant to implement such plan. One 
commenter explained that ``[t]he experience of effective prevention/re-
housing programs indicates that this provision is important but needs 
to go further,'' stating that ``[t]he rule should allow and encourage 
grantees to continue to work to provide social services to the 
veterans, to not only make a plan but also to implement it, through 
coordination with employment services, benefits and other help that is 
offered by the VA and other providers.''
    We agree. In Sec. Sec.  62.33(h)(2)(iv) and 62.34, where a plan is 
required, we have added the following additional requirement: 
``Grantees must assist the participant to implement such plan by 
providing any necessary assistance or helping the participant to obtain 
any necessary public or private benefits or services.''
    Another commenter supported the idea of plans to address 
participants' housing stability, but stated that ``the grantee cannot 
be held accountable for ensuring that 100% of the veterans served by 
their SSVF project will carry out their case management plans * * *'' 
VA will consider the factors included in Sec.  62.25 when determining 
whether to renew supportive services grants. None of these factors 
contains a requirement for a ``100%'' success rate for implementation 
of plans prepared to address participants' housing stability. 
Therefore, we make no changes based on this comment.

General Operational Requirements

    One commenter stated that the proposed rule did not require 
grantees to execute an agreement with a participant or provide a 
summary of the grantee's supportive services grant program to a 
participant. The commenter recommended that, ``A simple one-two page 
participant agreement providing an overview of the program and the 
benefits of program participation should be included for all program 
participants to ensure they are aware of the rules and restrictions of 
the program as well as the eligible uses of funds.''
    We agree. Providing potential participants with information on the 
grantee's supportive services grant program and any requirements 
necessary to receive supportive services would be beneficial to the 
participant. Therefore, a requirement for grantees to notify 
participants of basic information about the grantee's supportive 
services program and any conditions for the receipt of supportive 
services is added to Sec.  62.36(c)(1).

Program Changes

    One commenter recommended that the rule also require grantees to 
notify VA of changes to key personnel during the grant term. We agree. 
Proposed Sec.  62.60 identified certain program changes about which the 
grantee would be required to notify VA. Section 62.60 is intended to 
help VA maintain oversight over the quality of the supportive services 
provided by grantees and prevent misuse of grant funds. Changes in key 
personnel may directly impact a grantee's supportive services grant 
program. Accordingly, we have added Sec.  62.60(c), which requires 
grantees to inform VA in writing of key personnel changes within 30 
days of the change. For similar reasons, Sec.  62.60(c) also requires 
grantees to notify VA if the grantee changes its address.

Financial Management and Administrative Costs

    Proposed Sec.  62.70 required grantees to comply with certain 
Office of Management and Budget (OMB) requirements and certain VA 
standards for financial management for grants and agreements. One 
commenter recommended simplifying this section. We agree, and therefore 
a streamlined version of this section is included in the rule. In 
addition, to be more specific, rather than referring to the 
``applicable requirements of the appropriate OMB Circulars for Cost 
Principles,'' Sec.  62.70(b) of the rule specifies that grantees must 
comply with the requirements set forth in OMB Circular A-110, Subpart 
C, Section 21, codified at 2 CFR 215.21; 38 CFR 49.21.

Paperwork Reduction Act

    OMB assigns a control number for each collection of information it 
approves. Except for emergency approvals under 44 U.S.C. 3507(j), VA 
may not conduct or sponsor, and a person is not required to respond to, 
a collection of information unless it displays a currently valid OMB 
control number.
    In the proposed rule, we stated that proposed Sec. Sec.  62.20, 
62.36(c), 62.60, and 62.71 contain collection of information provisions 
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3521), and 
that we had requested public comment on those provisions in the notice 
published in the Federal Register on May 5, 2010 (75 FR 24523-24524).

[[Page 68979]]

    We did not receive any comments on the proposed collection of 
information which is pending at OMB for approval.

Executive Order 12866

    Executive Order 12866 directs agencies to assess all costs and 
benefits of available regulatory alternatives and, when regulation is 
necessary, to select regulatory approaches that maximize net benefits 
(including potential economic, environmental, public health and safety, 
and other advantages; distributive impacts; and equity). The Executive 
Order classifies a ``significant regulatory action,'' requiring review 
by OMB unless OMB waives such a review, as any regulatory action that 
is likely to result in a rule that may: (1) Have an annual effect on 
the economy of $100 million or more, or adversely affect in a material 
way the economy, a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local, or 
tribal governments or communities; (2) create a serious inconsistency 
or otherwise interfere with an action planned or taken by another 
agency; (3) materially alter the budgetary impact of entitlements, 
grants, user fees or loan programs or the rights and obligations of 
recipients thereof; or (4) raise novel legal or policy issues arising 
out of legal mandates, the President's priorities, or the principles 
set forth in the Executive Order.
    The economic, interagency, budgetary, legal, and policy 
implications of this rule have been examined and it has been determined 
to be a significant regulatory action under Executive Order 12866 
because it may result in a rule that raises novel legal or policy 
issues arising out of legal mandates, the President's priorities, or 
the principles set forth in the Executive Order.

Regulatory Flexibility Act

    The Secretary hereby certifies that 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, 5 U.S.C. 601 et 
seq. This final rule would only impact those entities that choose to 
participate in the SSVF Program. Small entity applicants will not be 
affected to a greater extent than large entity applicants. Small 
entities must elect to participate, and it is considered a benefit to 
those who choose to apply. To the extent this final rule would have any 
impact on small entities, it would not have an impact on a substantial 
number of small entities. 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.

Unfunded Mandates

    The Unfunded Mandates Reform Act requires, at 2 U.S.C. 1532, that 
agencies prepare an assessment of anticipated costs and benefits before 
issuing any rule that may result in an expenditure by State, local, or 
tribal governments, in the aggregate, or by the private sector of $100 
million or more (adjusted annually for inflation) in any one year. This 
final rule would have no such effect on State, local, or tribal 
governments, or on the private sector.

Catalog of Federal Domestic Assistance Program

    There is no Catalog of Federal Domestic Assistance program number 
and title for the program in this final rule.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. John R. 
Gingrich, Chief of Staff, Department of Veterans Affairs, approved this 
document on September 10, 2010, for publication.

List of Subjects in 38 CFR Part 62

    Administrative practice and procedure, Day care, Disability 
benefits, Government contracts, Grant programs--health, Grant 
programs--social services, Grant programs--transportation, Grant 
programs--veterans, Grants--housing and community development, Health 
care, Homeless, Housing, Housing assistance payments, Indians--lands, 
Individuals with disabilities, Low and moderate income housing, 
Manpower training program, Medicare, Medicaid, Public assistance 
programs, Public housing, Relocation assistance, Rent subsidies, 
Reporting and recordkeeping requirements, Rural areas, Social security, 
Supplemental security income (SSI), Travel and transportation expenses, 
Unemployment compensation, Veterans.

    Dated: November 5, 2010.
William F. Russo,
Director, Regulations Management, Office of General Counsel, Department 
of Veterans Affairs.

0
For the reasons stated in the preamble, VA amends 38 CFR chapter I by 
adding part 62 to read as follows:

PART 62--SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM

Sec.
62.1 Purpose.
62.2 Definitions.
62.10 Supportive services grants--general.
62.11 Participants--occupying permanent housing.
62.20 Applications for supportive services grants.
62.21 Threshold requirements prior to scoring supportive services 
grant applicants.
62.22 Scoring criteria for supportive services grant applicants.
62.23 Selecting applicants to receive supportive services grants.
62.24 Scoring criteria for grantees applying for renewal of 
supportive services grants.
62.25 Selecting grantees for renewal of supportive services grants.
62.30 Supportive service: Outreach services.
62.31 Supportive service: Case management services.
62.32 Supportive service: Assistance in obtaining VA benefits.
62.33 Supportive service: Assistance in obtaining and coordinating 
other public benefits.
62.34 Other supportive services.
62.35 Limitations on and continuations of the provision of 
supportive services to certain participants.
62.36 General operation requirements.
62.37 Fee prohibition.
62.40 Notice of Fund Availability.
62.50 Supportive services grant agreements.
62.51 Payments under the supportive services grant.
62.60 Program or budget changes and corrective action plans.
62.61 Procedural error.
62.62 Religious organizations.
62.63 Visits to monitor operations and compliance.
62.70 Financial management and administrative costs.
62.71 Grantee reporting requirements.
62.72 Recordkeeping.
62.73 Technical assistance.
62.80 Withholding, suspension, deobligation, termination, and 
recovery of funds by VA.
62.81 Supportive services grant closeout procedures.

(Authority: 38 U.S.C. 501, 2044, and as noted in specific sections)

Sec.  62.1  Purpose.

    This part implements the Supportive Services for Veteran Families 
Program, which provides supportive services grants to eligible entities 
to facilitate the provision of supportive services to very low-income 
veteran families who are occupying permanent housing.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.2  Definitions.

    For purposes of this part and any Notice of Fund Availability 
issued under this part:

[[Page 68980]]

    Applicant means an eligible entity that submits an application for 
a supportive services grant announced in a Notice of Fund Availability.
    Area or community means a political subdivision or contiguous 
political subdivisions (such as a precinct, ward, borough, city, 
county, State, Congressional district or tribal reservation) with an 
identifiable population of very low-income veteran families.
    Consumer cooperative has the meaning given such term in section 202 
of the Housing Act of 1959 (12 U.S.C. 1701q).
    Date of completion means the earliest of the following dates:
    (1) The date on which all required work is completed;
    (2) The date specified in the supportive services grant agreement, 
or any supplement or amendment thereto; or
    (3) The effective date of a supportive services grant termination 
under Sec.  62.80(c).
    Disallowed costs means costs charged by a grantee that VA 
determines to be unallowable based on applicable Federal cost 
principles, or based on this part or the supportive services grant 
agreement.
    Eligible child care provider means a provider of child care 
services for compensation, including a provider of care for a school-
age child during non-school hours, that--
    (1) Is licensed, regulated, registered, or otherwise legally 
operating, under state and local law; and
    (2) Satisfies the state and local requirements, applicable to the 
child care services the provider provides.
    Eligible entity means a:
    (1) Private non-profit organization, or
    (2) Consumer cooperative.
    Emergency supplies means items necessary for a participant's life 
or safety that are provided to the participant by a grantee on a 
temporary basis in order to address the participant's emergency 
situation.
    Grantee means an eligible entity that is awarded a supportive 
services grant under this part.
    Homeless has the meaning given that term in section 103 of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302).
    Notice of Fund Availability means a Notice of Fund Availability 
published in the Federal Register in accordance with Sec.  62.40.
    Occupying permanent housing means meeting any of the conditions set 
forth in Sec.  62.11(a).
    Participant means a very low-income veteran family occupying 
permanent housing who is receiving supportive services from a grantee.
    Permanent housing means community-based housing without a 
designated length of stay. Examples of permanent housing include, but 
are not limited to, a house or apartment with a month-to-month or 
annual lease term or home ownership.
    Private non-profit organization means any of the following:
    (1) An incorporated private institution or foundation that:
    (i) Has no part of the net earnings that inure to the benefit of 
any member, founder, contributor, or individual;
    (ii) Has a governing board that is responsible for the operation of 
the supportive services provided under this part; and
    (iii) Is approved by VA as to financial responsibility.
    (2) A for-profit limited partnership, the sole general partner of 
which is an organization meeting the requirements of paragraphs (1)(i), 
(ii) and (iii) of this definition.
    (3) A corporation wholly owned and controlled by an organization 
meeting the requirements of paragraphs (1)(i), (ii), and (iii) of this 
definition.
    (4) A tribally designated housing entity (as defined in section 4 
of the Native American Housing Assistance and Self-Determination Act of 
1996 (25 U.S.C. 4103)).
    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 the United States Housing Act of 
1937.
    Subcontractor means any third party contractor, of any tier, 
working directly for an eligible entity.
    Supportive services means any of the following provided to address 
the needs of a participant:
    (1) Outreach services as specified under Sec.  62.30.
    (2) Case management services as specified under Sec.  62.31.
    (3) Assisting participants in obtaining VA benefits as specified 
under Sec.  62.32.
    (4) Assisting participants in obtaining and coordinating other 
public benefits as specified under Sec.  62.33.
    (5) Other services as specified under Sec.  62.34.
    Supportive services grant means a grant awarded under this part.
    Supportive services grant agreement means the agreement executed 
between VA and a grantee as specified under Sec.  62.50.
    Suspension means an action by VA that temporarily withdraws VA 
funding under a supportive services grant, pending corrective action by 
the grantee or pending a decision to terminate the supportive services 
grant by VA. Suspension of a supportive services grant is a separate 
action from suspension under VA regulations implementing Executive 
Orders 12549 and 12689, ``Debarment and Suspension.''
    VA means the Department of Veterans Affairs.
    Very low-income veteran family means a veteran family whose annual 
income, as determined in accordance with 24 CFR 5.609, does not exceed 
50 percent of the median income for an area or community, as will be 
adjusted by VA based on family size and as may be adjusted and 
announced by VA in the Notice of Fund Availability based on residency 
within an area with unusually high or low construction costs, fair 
market rents (as determined under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f)), or family incomes. Unless VA 
announces otherwise in the Notice of Fund Availability, the median 
income for an area or community will be determined using the income 
limits most recently published by the Department of Housing and Urban 
Development for programs under section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f).
    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 family means a veteran who is a single person or a family 
in which the head of household, or the spouse of the head of household, 
is a veteran.
    Withholding means that payment of a supportive services grant will 
not be paid until such time as VA determines that the grantee provides 
sufficiently adequate documentation and/or actions to correct a 
deficiency for the supportive services grant. Costs for supportive 
services provided by grantees under the supportive services grant from 
the date of the withholding letter would be reimbursed only if the 
grantee is able to submit the documentation or actions that the 
deficiency has been corrected to the satisfaction of VA.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.10  Supportive services grants--general.

    (a) VA provides supportive services grants to eligible entities as 
described in this part.
    (b) Grantees must use at least 90 percent of supportive services 
grant

[[Page 68981]]

funds to provide and coordinate the provision of supportive services to 
very low-income veteran families who are occupying permanent housing.
    (c) Grantees may use up to 10 percent of supportive services grant 
funds for administrative costs identified in Sec.  62.70.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.11  Participants--occupying permanent housing.

    (a) Occupying permanent housing. A very low-income veteran family 
will be considered to be occupying permanent housing if the very low-
income veteran family:
    (1) Is residing in permanent housing;
    (2) Is homeless and scheduled to become a resident of permanent 
housing within 90 days pending the location or development of housing 
suitable for permanent housing; or
    (3) Has exited permanent housing within the previous 90 days to 
seek other housing that is responsive to the very low-income veteran 
family's needs and preferences.

    Note to paragraph (a):  For limitations on and continuations of 
the provision of supportive services to participants classified 
under paragraphs (a)(2) and (a)(3) of this section, see Sec.  62.35.

    (b) Changes to a participant's classification for occupying 
permanent housing. If a participant's classification for occupying 
permanent housing changes while the participant is receiving supportive 
services from a grantee, the participant may be reclassified under the 
categories set forth in paragraph (a) of this section.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.20  Applications for supportive services grants.

    (a) To apply for a supportive services grant, an applicant must 
submit to VA a complete supportive services grant application package, 
as described in the Notice of Fund Availability. A complete supportive 
services grant application package includes the following:
    (1) A description of the supportive services to be provided by the 
applicant and the identified need for such supportive services among 
very low-income veteran families;
    (2) A description of the characteristics of very low-income veteran 
families occupying permanent housing who will be provided supportive 
services by the applicant;
    (3) An estimate with supporting documentation of the number of very 
low-income veteran families occupying permanent housing who will be 
provided supportive services by the applicant and a description of the 
area or community where such very low-income veteran families are 
located, including an estimate of the total number of very low-income 
veteran families occupying permanent housing in such area or community;
    (4) Documentation evidencing the experience of the applicant and 
any identified subcontractors in providing supportive services to very 
low-income veteran families and very low-income families;
    (5) Documentation relating to the applicant's ability to coordinate 
with any identified subcontractors;
    (6) Documentation of the managerial capacity of the applicant to:
    (i) Coordinate the provision of supportive services with the 
provision of permanent housing by the applicant or by other 
organizations;
    (ii) Assess continuously the needs of participants for supportive 
services;
    (iii) Coordinate the provision of supportive services with services 
provided by VA;
    (iv) Customize supportive services to the needs of participants;
    (v) Continuously seek new sources of assistance to ensure the long-
term provision of supportive services to very low-income veteran 
families occupying permanent housing;
    (vi) Comply with and implement the requirements of this part 
throughout the term of the supportive services grant; and
    (7) Any additional information as deemed appropriate by VA.
    (b) Grantees may submit an application for renewal of a supportive 
services grant if the grantee's program will remain substantially the 
same. To apply for renewal of a supportive services grant, a grantee 
must submit to VA a complete supportive services grant renewal 
application package, as described in the Notice of Fund Availability.
    (c) VA may request in writing that an applicant or grantee, as 
applicable, submit other information or documentation relevant to the 
supportive services grant application.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.21  Threshold requirements prior to scoring supportive 
services grant applicants.

    VA will only score applicants that meet the following threshold 
requirements:
    (a) The application is filed within the time period established in 
the Notice of Fund Availability, and any additional information or 
documentation requested by VA under Sec.  62.20(c) is provided within 
the time frame established by VA;
    (b) The application is completed in all parts;
    (c) The applicant is an eligible entity;
    (d) The activities for which the supportive services grant is 
requested are eligible for funding under this part;
    (e) The applicant's proposed participants are eligible to receive 
supportive services under this part;
    (f) The applicant agrees to comply with the requirements of this 
part;
    (g) The applicant does not have an outstanding obligation to the 
Federal government that is in arrears and does not have an overdue or 
unsatisfactory response to an audit; and
    (h) The applicant is not in default by failing to meet the 
requirements for any previous Federal assistance.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.22  Scoring criteria for supportive services grant applicants.

    VA will use the following criteria to score applicants who are 
applying for a supportive services grant:
    (a) VA will award up to 35 points based on the background, 
qualifications, experience, and past performance, of the applicant, and 
any subcontractors identified by the applicant in the supportive 
services grant application, as demonstrated by the following:
    (1) Background and organizational history. (i) Applicant's, and any 
identified subcontractors', background and organizational history are 
relevant to the program.
    (ii) Applicant, and any identified subcontractors, maintain 
organizational structures with clear lines of reporting and defined 
responsibilities.
    (iii) Applicant, and any identified subcontractors, have a history 
of complying with agreements and not defaulting on financial 
obligations.
    (2) Staff qualifications. (i) Applicant's staff, and any identified 
subcontractors' staff, have experience working with very low-income 
families.
    (ii) Applicant's staff, and any identified subcontractors' staff, 
have experience administering programs similar to the Supportive 
Services for Veteran Families Program.
    (3) Organizational qualifications and past performance. (i) 
Applicant, and any identified subcontractors, have organizational 
experience providing supportive services to very low-income families.
    (ii) Applicant, and any identified subcontractors, have 
organizational experience coordinating services for very low-income 
families among multiple organizations, Federal, State, local and tribal 
governmental entities.

[[Page 68982]]

    (iii) Applicant, and any identified subcontractors, have 
organizational experience administering a program similar in type and 
scale to the Supportive Services for Veteran Families Program to very 
low-income families.
    (4) Experience working with veterans. (i) Applicant's staff, and 
any identified subcontractors' staff, have experience working with 
veterans.
    (ii) Applicant, and any identified subcontractors, have 
organizational experience providing supportive services to veterans.
    (iii) Applicant, and any identified subcontractors, have 
organizational experience coordinating services for veterans among 
multiple organizations, Federal, State, local and tribal governmental 
entities.
    (b) VA will award up to 25 points based on the applicant's program 
concept and supportive services plan, as demonstrated by the following:
    (1) Need for program. (i) Applicant has shown a need amongst very 
low-income veteran families occupying permanent housing in the area or 
community where the program will be based.
    (ii) Applicant understands the unique needs for supportive services 
of very low-income veteran families.
    (2) Outreach and screening plan. (i) Applicant has a feasible 
outreach and referral plan to identify and assist very low-income 
veteran families occupying permanent housing that may be eligible for 
supportive services and are most in need of supportive services.
    (ii) Applicant has a plan to process and receive participant 
referrals.
    (iii) Applicant has a plan to assess and accommodate the needs of 
incoming participants.
    (3) Program concept. (i) Applicant's program concept, size, scope, 
and staffing plan are feasible.
    (ii) Applicant's program is designed to meet the needs of very low-
income veteran families occupying permanent housing.
    (4) Program implementation timeline. (i) Applicant's program will 
be implemented in a timely manner and supportive services will be 
delivered to participants as quickly as possible and within a specified 
timeline.
    (ii) Applicant has a hiring plan in place to meet the applicant's 
program timeline or has existing staff to meet such timeline.
    (5) Collaboration and communication with VA. Applicant has a plan 
to coordinate outreach and services with local VA facilities.
    (6) Ability to meet VA's requirements, goals and objectives for the 
Supportive Services for Veteran Families Program. Applicant is 
committed to ensuring that its program meets VA's requirements, goals 
and objectives for the Supportive Services for Veteran Families Program 
as identified in this part and the Notice of Fund Availability.
    (7) Capacity to undertake program. Applicant has sufficient 
capacity, including staff resources, to undertake the program.
    (c) VA will award up to 15 points based on the applicant's quality 
assurance and evaluation plan, as demonstrated by the following:
    (1) Program evaluation. (i) Applicant has created clear, realistic, 
and measurable goals that reflect the Supportive Services for Veteran 
Families Program's aim of reducing and preventing homelessness among 
very low-income veteran families against which the applicant's program 
performance can be evaluated.
    (ii) Applicant plans to continually assess the program.
    (2) Monitoring. (i) Applicant has adequate controls in place to 
regularly monitor the program, including any subcontractors, for 
compliance with all applicable laws, regulations, and guidelines.
    (ii) Applicant has adequate financial and operational controls in 
place to ensure the proper use of supportive services grant funds.
    (iii) Applicant has a plan for ensuring that the applicant's staff 
and any subcontractors are appropriately trained and stays informed of 
industry trends and the requirements of this part.
    (3) Remediation. Applicant has a plan to establish a system to 
remediate non-compliant aspects of the program if and when they are 
identified.
    (4) Management and reporting. Applicant's program management team 
has the capability and a system in place to provide to VA timely and 
accurate reports at the frequency set by VA.
    (d) VA will award up to 15 points based on the applicant's 
financial capability and plan, as demonstrated by the following:
    (1) Organizational finances. Applicant, and any identified 
subcontractors, are financially stable.
    (2) Financial feasibility of program. (i) Applicant has a realistic 
plan for obtaining all funding required to operate the program for the 
time period of the supportive services grant.
    (ii) Applicant's program is cost-effective and can be effectively 
implemented on-budget.
    (e) VA will award up to 10 points based on the applicant's area or 
community linkages and relations, as demonstrated by the following:
    (1) Area or community linkages. Applicant has a plan for developing 
or has existing linkages with Federal (including VA), State, local, and 
tribal government agencies, and private entities for the purposes of 
providing additional services to participants.
    (2) Past working relationships. Applicant (or applicant's staff), 
and any identified subcontractors (or subcontractors' staff), have 
fostered successful working relationships and linkages with public and 
private organizations providing services to veterans or very low-income 
families in need of services similar to the supportive services.
    (3) Local presence and knowledge. (i) Applicant has a presence in 
the area or community to be served by the applicant.
    (ii) Applicant understands the dynamics of the area or community to 
be served by the applicant.
    (4) Integration of linkages and program concept. Applicant's 
linkages to the area or community to be served by the applicant enhance 
the effectiveness of the applicant's program.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.23  Selecting applicants to receive supportive services 
grants.

    VA will use the following process to select applicants to receive 
supportive services grants:
    (a) VA will score all applicants that meet the threshold 
requirements set forth in Sec.  62.21 using the scoring criteria set 
forth in Sec.  62.22.
    (b) VA will group applicants within the applicable funding 
priorities if funding priorities are set forth in the Notice of Fund 
Availability.
    (c) VA will rank those applicants who receive at least the minimum 
amount of total points and points per category set forth in the Notice 
of Fund Availability, within their respective funding priority group, 
if any. The applicants will be ranked in order from highest to lowest 
scores, within their respective funding priority group, if any.
    (d) VA will use the applicant's ranking as the primary basis for 
selection for funding. However, VA will also use the following 
considerations to select applicants for funding:
    (1) VA will give preference to applicants that provide, or 
coordinate the provision of, supportive services for very low-income 
veteran families transitioning from homelessness to permanent housing; 
and
    (2) To the extent practicable, VA will ensure that supportive 
services grants are equitably distributed across geographic regions, 
including rural communities and tribal lands.

[[Page 68983]]

    (e) Subject to paragraph (d) of this section, VA will fund the 
highest-ranked applicants for which funding is available, within the 
highest funding priority group, if any. If funding priorities have been 
established, to the extent funding is available and subject to 
paragraph (d) of this section, VA will select applicants in the next 
highest funding priority group based on their rank within that group.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.24  Scoring criteria for grantees applying for renewal of 
supportive services grants.

    VA will use the following criteria to score grantees applying for 
renewal of a supportive services grant:
    (a) VA will award up to 55 points based on the success of the 
grantee's program, as demonstrated by the following:
    (1) Participants made progress in achieving housing stability.
    (2) Participants were satisfied with the supportive services 
provided by the grantee.
    (3) The grantee implemented the program and delivered supportive 
services to participants in a timely manner.
    (4) The grantee prevented homelessness among very low-income 
veteran families occupying permanent housing that were most at risk of 
homelessness.
    (5) The grantee's program reduced homelessness among very low-
income veteran families occupying permanent housing in the area or 
community served by the grantee.
    (b) VA will award up to 30 points based on the cost-effectiveness 
of the grantee's program, as demonstrated by the following:
    (1) The cost per participant household was reasonable.
    (2) The grantee's program was effectively implemented on-budget.
    (c) VA will award up to 15 points based on the extent to which the 
grantee's program complies with Supportive Services for Veteran 
Families Program goals and requirements, as demonstrated by the 
following:
    (1) The grantee's program was administered in accordance with VA's 
goals for the Supportive Services for Veteran Families Program.
    (2) The grantee's program was administered in accordance with all 
applicable laws, regulations, and guidelines.
    (3) The grantee's program was administered in accordance with the 
grantee's supportive services grant agreement.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.25  Selecting grantees for renewal of supportive services 
grants.

    VA will use the following process to select grantees applying for 
renewal of supportive services grants:
    (a) So long as the grantee continues to meet the threshold 
requirements set forth in Sec.  62.21, VA will score the grantee using 
the scoring criteria set forth in Sec.  62.24.
    (b) VA will rank those grantees who receive at least the minimum 
amount of total points and points per category set forth in the Notice 
of Fund Availability. The grantees will be ranked in order from highest 
to lowest scores.
    (c) VA will use the grantee's ranking as the basis for selection 
for funding. VA will fund the highest-ranked grantees for which funding 
is available.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.30  Supportive service: Outreach services.

    (a) Grantees must provide outreach services and use their best 
efforts to ensure that hard-to-reach very low-income veteran families 
occupying permanent housing are found, engaged, and provided supportive 
services.
    (b) Outreach services must include active liaison with local VA 
facilities, State, local, tribal (if any), and private agencies and 
organizations providing supportive services to very low-income veteran 
families in the area or community to be served by the grantee.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.31  Supportive service: Case management services.

    Grantees must provide case management services that include, at a 
minimum:
    (a) Performing a careful assessment of participant functions and 
developing and monitoring case plans in coordination with a formal 
assessment of supportive services needed, including necessary follow-up 
activities, to ensure that the participant's needs are adequately 
addressed;
    (b) Establishing linkages with appropriate agencies and service 
providers in the area or community to help participants obtain needed 
supportive services;
    (c) Providing referrals to participants and related activities 
(such as scheduling appointments for participants) to help participants 
obtain needed supportive services, such as medical, social, and 
educational assistance or other supportive services to address 
participants' identified needs and goals;
    (d) Deciding how resources are allocated to participants on the 
basis of need; and
    (e) Educating participants on issues, including, but not limited 
to, supportive services availability and participant rights.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.32  Supportive service: Assistance in obtaining VA benefits.

    (a) Grantees must assist participants in obtaining any benefits 
from VA for which the participants are eligible. Such benefits include, 
but are not limited to:
    (1) Vocational and rehabilitation counseling;
    (2) Employment and training service;
    (3) Educational assistance; and
    (4) Health care services.
    (b) Grantees are not permitted to represent participants before VA 
with respect to a claim for VA benefits unless they are recognized for 
that purpose pursuant to 38 U.S.C. 5902. Employees and members of 
grantees are not permitted to provide such representation unless the 
individual providing representation is accredited pursuant to 38 U.S.C. 
chapter 59.

(Authority: 38 U.S.C. 501, 2044)

Sec.  62.33  Supportive service: Assistance in obtaining and 
coordinating other public benefits.

    Grantees must assist participants to obtain and coordinate the 
provision of other public benefits, including at a minimum those listed 
in paragraphs (a) through (i) below, that are being provided by 
Federal, State, local, or tribal agencies, or any eligible entity in 
the area or community served by the grantee by referring the 
participant to and coordinating with such entity. If a public benefit 
is not being provided by Federal, State, local, or tribal agencies, or 
any eligible entity in the area or community, the grantee is not 
required to obtain, coordinate, or provide such public benefit. 
Grantees may also elect to provide directly to participants the public 
benefits identified in paragraphs (c) through (i) below. When grantees 
directly provide such benefits, the grantees must comply with the same 
requirements as a third party provider of such benefits.
    (a) Health care services, which include:
    (1) Health insurance; and
    (2) Referral to a governmental or eligible entity that provides any 
of the following services:
    (i) Hospital care, nursing home care, out-patient care, mental 
health care, preventive care, habilitative and rehabilitative care, 
case management, respite care, and home care;

[[Page 68984]]

    (ii) The training of any very low-income veteran family member in 
the care of any very low-income veteran family member; and
    (iii) The provision of pharmaceuticals, supplies, equipment, 
devices, appliances, and assistive technology.
    (b) Daily living services, which may consist of the referral of a 
participant, as appropriate, to an entity that provides services 
relating to the functions or tasks for self-care usually performed in 
the normal course of a day, including, but not limited to, eating, 
bathing, grooming, dressing, and home management activities.
    (c) Personal financial planning services, which include, at a 
minimum, providing recommendations regarding day-to-day finances and 
achieving long-term budgeting and financial goals.
    (d) Transportation services.
    (1) The grantee may provide temporary transportation services 
directly to participants if the grantee determines such assistance is 
necessary; however, the preferred method of direct provision of 
transportation services is the provision of tokens, vouchers, or other 
appropriate instruments so that participants may use available public 
transportation options.
    (2) If public transportation options are not sufficient within an 
area or community, costs related to the lease of vehicle(s) may be 
included in a supportive services grant application if the applicant or 
grantee, as applicable, agrees that:
    (i) The vehicle(s) will be safe, accessible, and equipped to meet 
the needs of the participants;
    (ii) The vehicle(s) will be maintained in accordance with the 
manufacturer's recommendations; and
    (iii) All transportation personnel (employees and subcontractors) 
will be trained in managing any special needs of participants and 
handling emergency situations.
    (3) The grantee may make payments on behalf of a participant 
needing car repairs or maintenance required to operate the vehicle if 
the payment will allow the participant to remain in permanent housing 
or obtain permanent housing, subject to the following:
    (i) Payments for car repairs or maintenance on behalf of the 
participant may not exceed $1,000 during a 3-year period, such period 
beginning on the date the grantee first pays for any car repairs or 
maintenance on behalf of the participant.
    (ii) Payments for car repairs or maintenance must be reasonable and 
must be paid by the grantee directly to the third party that repairs or 
maintains the car.
    (iii) Grantees may require participants to share in the cost of car 
repairs or maintenance as a condition of receiving assistance with car 
repairs or maintenance.
    (e) Income support services, which may consist of providing 
assistance in obtaining other Federal, State, tribal and local 
assistance, in the form of, but not limited to, mental health benefits, 
employment counseling, medical assistance, veterans' benefits, and 
income support assistance.
    (f) Fiduciary and representative payee services, which may consist 
of acting on behalf of a pa