Section 8 Housing Choice Vouchers: Revised Implementation of the HUD-VA Supportive Housing Program, 17086-17090 [2012-7081]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 77, Number 57 (Friday, March 23, 2012)]
[Notices]
[Pages 17086-17090]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-7081]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-5596-N-01]


Section 8 Housing Choice Vouchers: Revised Implementation of the 
HUD-VA Supportive Housing Program

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Notice.

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SUMMARY: This notice establishes the policies and procedures for the 
administration of tenant-based Section 8 Housing Choice Voucher (HCV) 
rental assistance under the HUD-Veterans Affairs Supportive Housing 
(HUD-VASH) program administered by public housing agencies (PHAs) that 
partner with local Department of Veterans Affairs (VA) medical 
facilities. This notice provides new and clarifying guidance regarding 
certain types of verification documentation, addition of family members 
after the veteran is a participant in the HCV program, termination of 
assistance, portability moves within the same catchment area where both 
PHAs have received HUD-VASH vouchers, portability moves when case 
management is no longer required, reallocation of HUD-VASH vouchers, 
and Housing Quality Standards (HQS) initial inspections.

DATES: Effective date: March 23, 2012.

FOR FURTHER INFORMATION CONTACT: Michael S. Dennis, Director, Office of 
Housing Voucher Programs, Office of Public Housing and Vouchers 
Programs, Office of Public and Indian Housing, Department of Housing 
and Urban Development, 451 7th Street SW., Room 4216, Washington, DC 
20410-8000, telephone number 202-708-0477 (this is not a toll-free 
number). Individuals with speech or hearing impairments may access this 
number through TTY by calling the toll-free Federal Relay Service at 
800-877-8339.

SUPPLEMENTARY INFORMATION:

I. Background
II. Special Rules for the HUD-VASH Voucher Program
    a. Family Eligibility and Selection

[[Page 17087]]

    b. Termination of Assistance
    c. Income Eligibility
    d. Initial Term of the HCV
    e. Initial Lease Term
    f. Ineligible Housing
    g. Mobility and Portability of HUD-VASH Vouchers
    h. Case Management Requirements
    i. Turnover of HUD-VASH Vouchers
    j. Moving-to-Work (MTW) Agencies
    k. Project-Based Assistance
    l. Section Eight Management Assessment Program (SEMAP)
    m. Reallocation of HUD-VASH Vouchers
    n. HQS Initial Inspection
III. Reporting Requirements

I. Background

    Since Fiscal Year (FY) 2008, HCV program funding has provided 
rental assistance under a supportive housing program for homeless 
veterans authorized by section 8(o)(19) of the United States Housing 
Act of 1937 (1937 Act) (42 U.S.C. 1437f(o)(19)). The initiative, known 
as the HUD-VASH program, was initially authorized by Division K, Title 
II, of the Consolidated Appropriations Act, 2008 (Pub. L. 110-161, 
approved December 26, 2007) (``2008 Appropriation Act'') (see proviso 
(7) under the heading ``Tenant-Based Rental Assistance''). Each annual 
HUD appropriation since FY 2008 has continued to authorize this 
program.\1\ The HUD-VASH program combines HCV rental assistance for 
homeless veterans with case management and clinical services provided 
by the VA through its community medical centers. Since implementation 
of the program, ongoing VA case management, health, and other 
supportive services have been made available to homeless veterans at 
more than 300 VA Medical Center (VAMC) supportive services sites and 
Community-Based Outpatient Clinics (CBOCs) across the nation. The HUD-
VASH program is a key component of reducing homelessness among veterans 
outlined in the Administration's Federal Strategy to Prevent and End 
Homelessness.
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    \1\ Omnibus Appropriations Act, 2009, (Pub. L. 111-8, approved 
March 11, 2009); Consolidated Appropriations Act, 2010 (Pub. L. 111-
117, approved December 16, 2009); the Department of Defense and 
Full-Year Continuing Appropriations Act, 2011 (Pub. L. 112-10, 
approved April 15, 2011); and Consolidated and Further Continuing 
Appropriations Act, 2012 (Pub. L. 112-55, approved November 18, 
2011).
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    The appropriation acts funding the HUD-VASH program provide that 
HUD is not required to distribute assistance competitively. Rather, 
these acts require that HUD-VASH funding be distributed to PHAs that 
partner with eligible VAMCs, or other entities as designated by the VA 
Secretary, and based on the geographical need for such assistance, as 
identified by the VA Secretary. The appropriation acts also provide 
that funding be distributed based on PHA administrative performance, 
and other factors as specified by the Secretary of Housing and Urban 
Development (HUD Secretary) in consultation with the VA Secretary.
    Based on this language, the allocation for HUD-VASH vouchers has 
been a collaborative, data-driven effort conducted by HUD's Offices of 
Community Planning and Development (CPD) and Public and Indian Housing 
(PIH), and the VA. The process relies primarily on three sets of data: 
(1) HUD's point-in-time data submitted by Continuums of Care; (2) VAMC 
data on contacts with homeless veterans; and (3) performance data from 
local PHAs and VAMCs. As noted, the VA, in consultation with HUD, has 
identified more than 300 VAMCs and CBOCs willing to participate in the 
program since 2008. There is at least one site in each of the 50 
states, the District of Columbia, Puerto Rico, and Guam.
    HUD, in consultation with the VA, and in consideration of a PHA's 
administrative performance, identified eligible PHAs located in the 
jurisdiction of the VAMCs or CBOCs and invited them to apply for HUD-
VASH vouchers. The number of HUD-VASH vouchers awarded to each PHA was 
determined by HUD and the VA. Currently, between 25 and 35 rental 
vouchers have been awarded for each professional, full-time HUD-VASH 
case manager in the local VA facility. A PHA that participates in the 
HUD-VASH program must partner with its VAMC or CBOC. Additional 
information on program requirements and procedures may be found on 
HUD's Web site at www.HUD.gov.

II. Special Rules for the HUD-VASH Voucher Program

    This section of the notice sets forth the design features of the 
HUD-VASH vouchers, including the eligibility of families, portability, 
case management, and the turnover of these vouchers. This notice 
replaces and revises the special rules published by HUD in a Federal 
Register notice on May 6, 2008 (73 FR 25026). The appropriations acts 
funding the HUD-VASH program authorize the HUD Secretary, in 
consultation with the VA Secretary, to waive, or specify alternative 
requirements for, any provision of any statute or regulation that the 
HUD Secretary administers in connection with the use of these funds 
(except for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment), upon a finding by the Secretary 
that any such waivers or alternative requirements are necessary for the 
effective delivery and administration of such voucher assistance. 
Assistance made available for this program must, however, continue to 
remain available for homeless veterans upon turnover.
    This notice outlines the waivers or alternative requirements 
determined by the HUD Secretary to be necessary for the effective 
delivery and administration of the HUD-VASH program. These waivers or 
alternative requirements are exceptions to the normal HCV requirements, 
which would otherwise govern the provision of HUD-VASH assistance. In 
addition, a PHA may request additional statutory or regulatory waivers 
that it determines are necessary for the effective delivery and 
administration of the program. These requests may be submitted to the 
HUD Secretary for review and decision through the HUD Assistant 
Secretary for Public and Indian Housing.
    HUD-VASH vouchers under this part are administered in accordance 
with the HCV tenant-based rental assistance regulations set forth at 24 
CFR part 982. In the HCV program, the PHA pays monthly rental subsidies 
so that eligible families can afford decent, safe, and sanitary 
housing. HUD provides housing assistance funds to the PHA and funds the 
PHA to administer the program.
    Under the HCV tenant-based program, families select and rent units 
that meet program housing quality standards (HQS). If the PHA approves 
a family's unit and tenancy, the PHA contracts with the owner to make 
rent subsidy payments (housing assistance payments) (HAP) directly to 
the owner on behalf of the family, on a monthly basis. The family 
enters into a lease with the owner and pays its share of the rent to 
the owner in accordance with the lease. The HAP contract between the 
PHA and the owner covers only a single unit and a specific assisted 
family. If the family moves out of the leased unit, the HAP contract 
with the owner terminates. The family may generally move to another 
unit with continued assistance, so long as the family is complying with 
program requirements.
    Unless expressly herein, all regulatory requirements and HUD 
directives regarding the HCV tenant-based program are applicable to 
HUD-VASH vouchers, including the use of all HUD-required contracts and 
other forms. The PHA's local discretionary policies adopted in the 
PHA's written administrative plan apply to HUD-VASH vouchers, unless 
such local policy conflicts with the requirements of the HUD-VASH 
vouchers outlined herein.

[[Page 17088]]

    PHAs are required to maintain records that allow for the easy 
identification of families receiving HUD-VASH vouchers. PHAs must 
identify these families in the Public and Indian Housing Information 
Center (PIC). This recordkeeping will help ensure, in accordance with 
appropriations renewal language, that HUD-VASH vouchers that are in use 
will remain available for homeless veterans upon turnover.
    The alternative requirements established in this notice apply to 
all PHAs that administer HUD-VASH vouchers, including those that have 
not received an allocation of HUD-VASH vouchers, but which administer 
them as a receiving PHA under the portability feature of the HCV 
program.
    This notice does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this 
notice is categorically excluded from environmental review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321).

a. Family Eligibility and Selection

    HUD-VASH-eligible families are homeless veterans and their 
families. The appropriations acts funding the HUD-VASH program 
authorize the HUD Secretary, in consultation with the VA Secretary, to 
waive, or specify alternative requirements for, any provision of any 
statute or regulation that the HUD Secretary administers in connection 
with the use of funds made upon a finding by the HUD Secretary that 
such waivers or alternatives are necessary for the effective 
administration and delivery of voucher assistance (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment). The December 17, 2007, Explanatory 
Statement for the 2008 Appropriation Act states, ``The Appropriations 
Committees expect that these vouchers will be made available to all 
homeless veterans, including recently returning veterans'' (153 Cong. 
Rec. H16514 (daily ed., Dec. 17, 2007)).
    Section 8(o)(19) of the 1937 Act, which requires homeless veterans 
to have chronic mental illnesses or chronic substance-use disorders 
with required treatment of these disorders, as a condition of receipt 
of HUD-VASH assistance, is waived.
    VA HUD-VASH case managers will refer HUD-VASH-eligible families to 
the PHA for the issuance of vouchers. The PHA must accept referrals 
from their VA partner. Written documentation of these referrals must be 
maintained in the tenant file by the PHA. Therefore, the PHA will not 
have the authority to maintain a waiting list or apply local 
preferences for HUD-VASH vouchers. Accordingly, section 8(o)(6)(A) of 
the 1937 Act (42 U.S.C. 1437f(o)(6)(A)), in regard to preferences, is 
waived to provide for the effective administration of the program. In 
addition, 24 CFR 982.202, 982.204, and 982.207, relating to applicant 
selection from the waiting list and local preferences, are also waived. 
Sections 982.203, 982.205, and 982.206 regarding special admissions, 
cross-listing of the waiting list, and opening and closing the waiting 
list do not apply to the HUD-VASH program.
    VA HUD-VASH case managers will screen all families in accordance 
with VA screening criteria. By agreeing to administer the HUD-VASH 
program, the PHA is relinquishing its authority to determine the 
eligibility of families in accordance with regular HCV program rules 
and PHA policies. Specifically, under the HUD-VASH program, PHAs will 
not have the authority to screen any potentially eligible family 
members or deny assistance for any grounds permitted under 24 CFR 
982.552 (broad denial for violations of HCV program requirements) and 
982.553 (specific denial for criminals and alcohol abusers), with one 
exception: PHAs will still be required to prohibit admission if any 
member of the household is subject to a lifetime registration 
requirement under a state sex offender registration program. However, 
unless the family member that is subject to lifetime registration under 
a state sex offender registration program is the homeless veteran 
(which would result in denial of admission for the family), the 
remaining family members may be served if the family agrees to remove 
the sex offender from its family composition. Accordingly, the 
Department is exercising its authority to waive 42 U.S.C. 1437d(s); 42 
U.S.C. 13661(a), (b), and (c); and 24 CFR 982.552 and 982.553 in regard 
to denial of admission, with the exception of Sec.  982.553(a)(2)(i), 
which requires denial of admission to certain registered sex offenders.
    When adding a family member after the HUD-VASH family has been 
admitted to the program, the rules of Sec.  982.551(h)(2) apply. Other 
than the birth, adoption, or court-awarded custody of a child, the PHA 
must approve additional family members and may apply its regular 
screening criteria in doing so.
    In regard to verifying Social Security numbers (SSNs) for homeless 
veterans and their family members, an original document issued by a 
federal or state government agency, which contains the name of the 
individual and the SSN of the individual along with other identifying 
information of the individual, is acceptable in accordance with 24 CFR 
part 5.216(g). In the case of the homeless veteran, the PHA must accept 
the Certificate of Release or Discharge from Active Duty (DD-214) or 
the VA-verified Application for Health Benefits (10-10EZ) as 
verification of SSN and cannot require the veteran to provide a SSN 
card. These documents must also be accepted for proof-of-age purposes 
in lieu of birth certificates or other PHA-required documentation. 
Please note that veterans are also issued photo identification cards by 
the VA. If such identification is required by the PHA, these cards must 
be accepted by the PHA in lieu of another type of government-issued 
photo identification. These cards may also be used to verify SSNs and 
date of birth.
    Civil rights requirements cannot be waived. The HUD-VASH program is 
administered in accordance with applicable Fair Housing requirements. 
These include applicable authorities under 24 CFR 5.105(a) and 24 CFR 
982.53 including, but not limited to, the Fair Housing Act, Section 504 
of the Rehabilitation Act of 1973, Title VI of the Civil Rights Act of 
1964, the Americans with Disabilities Act, and the Age Discrimination 
Act. These requirements prohibit discrimination on the basis of race, 
color, religion, sex, familial status, national origin, age, or 
disability.
    When HUD-VASH recipients include veterans with disabilities or 
family members with disabilities, HUD's reasonable accommodation 
standards requirements apply. These standards require PHAs to make a 
reasonable adjustment to rules, policies, practices, and procedures 
when it may be necessary in order to enable an applicant or resident 
with a disability to have an equal opportunity to use and enjoy a 
dwelling, the common areas of a dwelling, or participate in or access a 
recipient's programs and activities. These standards extends to various 
aspects of program implementation, including, for example, denial or 
termination of assistance, initial search term of the HCV, initial 
lease term, and informal reviews and hearings.

[[Page 17089]]

b. Termination of Assistance

    HUD has not established any alternative requirements for 
termination of assistance for HUD-VASH participants. However, prior to 
terminating HUD-VASH participants, HUD strongly encourages PHAs to 
exercise their discretion under 24 CFR 982.552(c)(2) and consider all 
relevant circumstances of the specific case, including granting 
reasonable accommodations for persons with disabilities in accordance 
with 24 CFR part 8, as well as including the role of the case manager 
and the impact that ongoing case management services can have on 
mitigating the conditions that led to the potential termination, prior 
to determining whether to terminate assistance. In addition, a HUD-VASH 
participant family must not be terminated after admission, for a 
circumstance or activity that occurred before admission and was known 
to the PHA, but could not be considered at the time of admission due to 
the HUD-VASH Operating Requirements. The PHA can terminate the family's 
assistance only for program violations that occur after the family's 
admission to the voucher program.

c. Income Eligibility

    The PHA must determine income eligibility for HUD-VASH families in 
accordance with 24 CFR 982.201. Income-targeting requirements of 
section 16(b) of the 1937 Act, as well as 24 CFR 982.201(b)(2), do not 
apply for HUD-VASH families so that participating PHAs can effectively 
serve the eligible population specified in the various appropriations 
acts; that is, homeless veterans, who may be at a variety of income 
levels, including low-income. The PHA may, however, choose to include 
the admission of extremely low-income HUD-VASH families in its income 
targeting numbers for the fiscal year in which these families are 
admitted. In conformance with normal program rules, PHAs may not deny 
admission to a family with zero income and must consider hardship 
circumstances before charging a minimum rent in accordance with 24 CFR 
5.630(b).

d. Initial Term of the HCV

    Recognizing the challenges that HUD-VASH participants may face with 
their housing search, HUD-VASH vouchers must have an initial search 
term of at least 120 days. Therefore, Sec.  982.303(a), which states 
that the initial search term must be at least 60 days, shall not apply, 
since the initial term must be at least 120 days. Any extensions, 
suspensions, and progress reports will remain under the policies in the 
PHA's administrative plan, but will apply after the minimum 120-day 
initial search term.

e. Initial Lease Term

    Under the HCV program, voucher participants must enter into an 
initial lease with the owner for one year, unless a shorter term would 
improve housing opportunities for the tenant and the shorter term is a 
prevailing market practice. To provide a greater range of housing 
opportunities for HUD-VASH voucher holders, initial leases may be less 
than 12 months; therefore, both section 8(o)(7)(A) of the 1937 Act (42 
U.S.C. 1437f(o)(7)(A)) and 24 CFR 982.309(a)(2)(ii) are waived.

f. Ineligible Housing

    HUD-VASH families will be permitted to live on the grounds of a VA 
facility in units developed to house homeless veterans. Therefore, 24 
CFR 982.352(a)(5), which prohibits units on the physical grounds of a 
medical, mental, or similar public or private institution, is waived 
for that purpose only.

g. Mobility and Portability of HUD-VASH Vouchers

    An eligible family that is issued a HUD-VASH voucher must receive 
case management services provided by the partnering VAMC or CBOC. 
Therefore, special mobility and portability procedures must be 
established. HUD-VASH participant families may reside only in those 
jurisdictional areas that are accessible to case management services as 
determined by VA HUD-VASH case managers at the partnering VAMC or CBOC. 
Since the case managers will be identifying homeless veterans eligible 
to participate in the HUD-VASH program, section 8(r)(1)(B)(i) of the 
1937 Act (42 U.S.C. 1437f(r)(1(B)(i)), which restricts portability in 
cases where the family did not reside in the jurisdiction of the PHA at 
the time of application for HCV assistance, and 24 CFR 982.353(a), (b), 
and (c), which affects where a family can lease a unit with HCV 
assistance, do not apply. HUD may publish public housing notices from 
time to time to further explain portability requirements under the HUD-
VASH program.
1. Portability Moves Within Same Catchment Area (or Area of Operation) 
Where Case Management Is Provided by the Initial PHA's Partnering VAMC 
or CBOC
    If the family initially leases up, or moves, under portability 
provisions, but the initial PHA's partnering VAMC or CBOC will still be 
able to provide the necessary case management services due to the 
family's proximity to the partnering VAMC or CBOC, the receiving PHA 
must process the move in accordance with the portability procedures of 
24 CFR 982.355. However, since the initial PHA must maintain records on 
all HUD-VASH families receiving case management services from its 
partnering VAMC or CBOC, receiving PHAs without a HUD-VASH program must 
bill the initial PHA. Therefore, 24 CFR 982.355(d), which gives the 
receiving PHA the option to absorb the family into its own HCV program 
or bill the initial PHA, is not applicable.
2. Portability Moves Within Same Catchment Area Where Both PHAs Have 
Received HUD-VASH Vouchers
    The receiving PHA may bill the initial PHA or absorb the family 
into its own HUD-VASH program if the VAMC or CBOC providing the initial 
case management agrees to the absorption by the receiving PHA and the 
transfer of case management. The absorption will also entail the 
availability of a HUD-VASH voucher and case management provision by the 
receiving PHA's partnering VAMC or CBOC.
3. Portability Moves Where Receiving PHA Is Beyond Catchment Area
    If a family wants to move to another jurisdiction where it will not 
be possible for the initial PHA's partnering VAMC or CBOC to provide 
case management services, the VAMC must first determine that the HUD-
VASH family could be served by another VAMC or CBOC that is 
participating in this program, and the receiving PHA must have a HUD-
VASH voucher available for this family. In these cases, the families 
must be absorbed by the receiving PHA either as a new admission (upon 
initial participation in the HUD-VASH program) or as a portability 
move-in (after an initial leasing in the initial PHA's jurisdiction). 
Upon absorption, the initial PHA's HUD-VASH voucher will be available 
to lease to a new HUD-VASH-eligible family, as determined by the 
partnering VAMC or CBOC, and the absorbed family will count toward the 
number of HUD-VASH slots awarded to the receiving PHA.
    When the receiving PHA completes the form HUD-50058 under the 
scenarios above, the action type that must be recorded on line 2a is 
``1'' for a new admission (a family that is new to the HCV program) or 
``4'' for a portability move-in (a family that was previously leased up 
in the jurisdiction of the initial PHA). Whether the family

[[Page 17090]]

is a new admission or a portability move-in, in section 12 of the HUD-
50058 form, line 12d is always marked ``Y.'' In cases of portability 
where families move out of the catchment area of the initial PHA, line 
12e must be 0, since the family must be absorbed, and line 12f must be 
left blank.
4. Portability Moves When Case Management Is No Longer Required
    If the family no longer requires case management, there are no 
portability restrictions. Normal portability rules apply. When 
completing the HUD-50058, the family will continue to be coded ``VASH'' 
on line 2n unless the initial PHA issues the family a regular voucher, 
in which case the code will no longer apply.

h. Case Management Requirements

    The VAMC or CBOC's responsibilities include: (1) The screening of 
homeless veterans to determine whether they meet the HUD-VASH program 
participation criteria established by the VA national office; (2) 
referrals of homeless veterans to the PHA; (3) providing appropriate 
treatment and supportive services to potential HUD-VASH program 
participants, if needed, prior to PHA issuance of rental vouchers; (4) 
providing housing search assistance to HUD-VASH participants with 
rental vouchers; (5) identifying the social service and medical needs 
of HUD-VASH participants and providing, or ensuring the provision of, 
regular ongoing case management, outpatient health services, 
hospitalization, and other supportive services as needed throughout the 
veterans' participation period; and (6) maintaining records and 
providing information for evaluation purposes, as required by HUD and 
the VA.
    As a condition of receiving HCV rental assistance, a HUD-VASH-
eligible family must receive the case management services noted above 
from the VAMC or CBOC. Therefore, a HUD-VASH participant family's HCV 
assistance must be terminated for failure to participate, without good 
cause, in case management as verified by the VAMC or CBOC. However, a 
VAMC or CBOC determination that the participant family no longer 
requires case management is not grounds for termination of assistance. 
In such a case, at its option, the PHA may offer the family continued 
HCV assistance through one of its regular vouchers, to free up the HUD-
VASH voucher for another eligible family referred by the VAMC or CBOC. 
If the PHA has no voucher to offer, the family will retain its HUD-VASH 
voucher until such time as the PHA has an available voucher for the 
family. If the family no longer requires case management, there are no 
portability restrictions. Normal portability rules apply.

i. Turnover of HUD-VASH Vouchers

    In accordance with the appropriations acts cited herein, upon 
turnover, HUD-VASH vouchers must be issued to eligible families as 
identified by the VAMC or CBOC, as noted above.

j. Moving-to-Work (MTW) Agencies

    HUD-VASH vouchers must be administered in accordance with this 
notice and are not eligible for fungibility under a PHA's MTW 
agreements. HUD-VASH vouchers must be reported on separately from 
vouchers under the agency's MTW Agreement.

k. Project-Based Assistance

    Although HUD-VASH vouchers are tenant-based rental assistance, HUD 
will consider, on a case-by-case basis, requests from the PHA (with the 
support of the applicable Director of the VAMC or Veterans Integrated 
Service Network (VISN)) to project-base these vouchers in accordance 
with 24 CFR part 983. Public housing notices will be issued from time 
to time to address this issue.

l. Section Eight Management Assessment Program (SEMAP)

    Since the leasing of HUD-VASH vouchers will be dependent on 
referrals from the VAMC or CBOC, the unit months and budget authority 
associated with these vouchers will not be included in the SEMAP 
leasing indicator. Therefore, 24 CFR 985.3(n)(1)(i) and (ii) are 
waived. However, utilization of these vouchers will be monitored 
separately through HUD systems.

m. Reallocation of HUD-VASH Vouchers

    Under the appropriation acts cited herein, Congress has directed VA 
and HUD to allocate HUD-VASH vouchers based on geographical need for 
such assistance. In recognition that there may be changes and shifts in 
the population of homeless veterans over time, it may become necessary 
for HUD to reallocate HUD-VASH vouchers between PHAs regardless of the 
jurisdictional boundaries of the PHAs, in order to better address the 
current need of homeless veterans. In addition, HUD may reallocate 
vouchers due to poor performance by the PHA and/or the VAMC in serving 
this population, as evidenced by a lack of adequate referrals or 
inadequate voucher utilization rates after sufficient warning and cure 
time has been provided by HUD and/or the VA. Therefore, HUD-VASH 
vouchers may be reallocated among PHAs within the same state or between 
PHAs in different states based on the utilization of previously awarded 
HUD-VASH vouchers and current geographic need as determined by the VA 
and HUD.

n. HQS Initial Inspections

    To expedite the leasing process, PHAs may pre-inspect available 
units that veterans may be interested in leasing, in order to maintain 
a pool of eligible units. If a HUD-VASH family selects a unit that 
passed a HQS inspection (without intervening occupancy) within 45 days 
of the date of the Request for Tenancy Approval (form HUD-52517), the 
unit may be approved, provided that it meets all other conditions under 
24 CFR Section 982.305. However, the veteran must be free to select 
his/her unit and cannot be steered to these units.

III. Reporting Requirements

    A new code (VASH) was established for use on line 2n of the Family 
Report (form HUD-50058), which indicates whether the family 
participates in ``other special programs.'' The information collection 
requested on HUD-50058 has been approved by the Office of Management 
and Budget (OMB) and given OMB control number 2577-0083. No person is 
required to respond to, nor shall any person be subject to a penalty 
for failure to comply with a collection of information subject to the 
requirements of the Paperwork Reduction Act (PRA), unless that 
collection displays a currently valid OMB control number. This code 
must remain on the HUD-50058 for the duration of the HUD-VASH family's 
participation in the program. In addition, PHA that administers the 
HUD-VASH voucher on behalf of the family (regardless of whether the PHA 
has received an allocation of HUD-VASH vouchers) must enter and 
maintain this code on the HUD-50058.
    Data will also be captured in the Voucher Management System on 
monthly leasing and expenditures.
    For any additional systems reporting requirements that may be 
established, HUD will provide further guidance.

    Dated: March 16, 2012.
Shaun Donovan,
Secretary.
[FR Doc. 2012-7081 Filed 3-22-12; 8:45 am]
BILLING CODE 4210-67-P