Implementation of the Tribal HUD-VA Supportive Housing Program, 63822-63830 [2015-26748]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 80, Number 203 (Wednesday, October 21, 2015)]
[Notices]
[Pages 63822-63830]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-26748]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR 5889-N-01]


Implementation of the Tribal 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 sets forth the policies and procedures for the 
administration of a supportive housing and rental demonstration program 
called the Tribal HUD-VA Supportive Housing program (Tribal HUD-VASH). 
The program will provide rental assistance and supportive services to 
Native American veterans who are Homeless or At Risk of Homelessness 
living on or near a reservation or other Indian areas. HUD is making 
available $4 million in grant funding to Indian tribes and tribally 
designated housing entities (TDHEs) to fund this rental assistance and 
associated administrative fees. Indian tribes and TDHEs participating 
in this program must partner with the Department of Veterans Affairs 
(VA) to provide healthcare assistance to eligible Native American 
veterans.

DATES: Effective date: October 21, 2015.

FOR FURTHER INFORMATION CONTACT: Randall Akers, Office of Native 
American Programs, Office of Public and Indian Housing, Department of 
Housing and Urban Development, 451 7th Street SW., Room 4126, 
Washington, DC 20410, telephone number (202) 402-7914. (This is not a 
toll-free number.)

SUPPLEMENTARY INFORMATION:

I. Background
II. Definitions
III. Program Requirements
IV. Allocation of Assistance
V. Application for Tribal HUD-VASH Program
VI. Tribal HUD-VASH Program Requirements, Waivers, and Alternative 
Requirements
VII. Environmental Impact

I. Background

    Since Fiscal Year (FY) 2008, the Housing Choice Voucher (HCV) 
program 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 (42 U.S.C. 1437f(o)(19)). The 
initiative, known as the HUD-VA Supportive Housing (HUD-VASH) program, 
was initially authorized by the Consolidated Appropriations Act, 2008 
(Pub. L. 110-161, approved December 26, 2007).
    The HUD-VASH program combines HCV rental assistance for Homeless 
veterans with Case Management and clinical services provided by or 
through the VA through Veterans Administration Medical Centers (VAMC). 
Historically, this program has not reached Native American veterans in 
tribal communities due to legal impediments preventing tribes and TDHEs 
from participating in the HUD-VASH program.
    In the Consolidated and Further Continuing Appropriations Act, 2015 
(Pub. L. 113-235, approved December 16, 2014) (``2015 Appropriations 
Act''), Congress authorized funding for a demonstration program in 
order to expand the HUD-VASH program into Indian Country. The 2015 
Appropriations Act directed HUD to coordinate with Indian tribes, 
TDHEs, and other appropriate tribal organizations on the design of this 
program, and to ensure the effective delivery of housing assistance and 
supportive services to Native American veterans who are Homeless or At 
Risk of Homelessness. It also authorized HUD to make appropriate 
adjustments to the HUD-VASH model, and to waive or specify alternative 
requirements (except for requirements related to fair housing, 
nondiscrimination, labor standards, and the environment) for any 
provision of any statute or regulation that it administers if it finds 
that they are necessary for the effective delivery and administration 
of rental assistance under the program.
    On January 26, 2015, HUD sent a ``Dear Tribal Leader'' letter to 
tribal leaders, tribal organizations, and TDHE directors soliciting 
comments on a Tribal HUD-VASH demonstration program (Tribal HUD-VASH). 
HUD also held a national listening session at the National American 
Indian Housing Council's Legislative Conference held on February 2, 
2015, followed by regional listening sessions held at each of the six 
Office of Native American Programs (ONAP) field offices. HUD also 
received a number of comments

[[Page 63823]]

from tribes through letters and emails. Generally, the comments were 
supportive of the program. The comments offered suggestions of how the 
program should be structured to address aspects such as rent and 
geographic distribution. HUD considered these comments when developing 
this Notice.

II. Definitions

    Case Management--For purposes of Tribal HUD VASH, Case Management 
is a specialized component of healthcare management, requiring highly 
skilled, trained professionals. Case Management emphasizes a 
collaborative process that assesses, advocates, plans, implements, 
coordinates, monitors, and evaluates health care options and services 
so that they meet the needs of the individual patient.
    Community Based Outpatient Clinic (CBOC)--A Community Based 
Outpatient Clinic (CBOC) is a VA-operated clinic or a VA-funded or 
reimbursed health care facility or site that is geographically distinct 
or separate from the parent medical facility.
    Fair Market Rent (FMR)--Fair Market Rent means the rent, as 
established by HUD, for units of varying sizes (by number of bedrooms), 
that must be paid in the market area to rent privately owned, existing, 
decent, safe and sanitary rental housing of modest (non-luxury) nature 
with suitable amenities.
    Homeless and At Risk of Homelessness--For purposes of Tribal HUD-
VASH, HUD is adopting the definitions of ``Homeless'' in Section 103(a) 
of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)) and 
``At Risk of Homelessness'' in Section 401(1) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11360(1)). However, the income 
provision at 42 U.S.C. 11360(1)(A) does not apply to the Tribal HUD-
VASH program. Instead, HUD is adopting the low-income eligibility 
requirements in Section 4(14) of NAHASDA. Accordingly, a veteran will 
be eligible for this program if he or she otherwise meets the 
definition of ``Homeless'' or ``At Risk of Homelessness'', and is a 
low-income Indian, as defined in NAHASDA (i.e. has an income that is no 
more than 80 percent of area median income for the Indian area as 
determined by HUD).\1\
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    \1\ Wherever the phrase ``Homeless veteran'' appears in this 
Notice, it will also include veterans who are At Risk of 
Homelessness unless explicitly stated otherwise.
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    Project-Based Rental Assistance (PBRA)--Rental housing assistance 
tied to a specific housing unit or units. The housing assistance stays 
with the unit or units and any household living in the unit must meet 
program requirements. If the household moves out of the subsidized 
unit, they no longer receive rental housing assistance.
    Tenant-Based Rental Assistance (TBRA)--Rental housing assistance 
tied to a specific household. The eligible applicant selects and rents 
a unit (whether private or TDHE-owned) that meets program requirements, 
and the tribe or TDHE makes rent subsidy payments on behalf of the 
household. The assistance stays with the household; if the household 
moves to a different unit that meets program qualifications, the tribe 
or TDHE makes rental payments to the owner of the new unit on the 
household's behalf.

III. General Program Requirements

    HUD is establishing the program requirements of Tribal HUD-VASH 
with the publication of this Notice. In accordance with the 2015 
Appropriations Act, this Notice also makes appropriate adjustments to 
program requirements through the issuance of statutory and regulatory 
waivers that HUD has deemed necessary for the effective delivery and 
administration of rental assistance under the program. Generally, 
rental assistance under this program will be subject to all 
requirements of NAHASDA that are applicable to rental assistance funded 
under the Indian Housing Block Grant (IHBG) program. This includes the 
NAHASDA statute (25 U.S.C. 4101 et seq.), all IHBG program regulations 
in 24 CFR part 1000, and all other Federal laws and regulations 
applicable to the IHBG program. To the extent that program requirements 
in this Notice differ from any provision in NAHASDA and 24 CFR part 
1000, and any other statute or regulation that HUD administers, the 
terms of this Notice will govern.
    Housing assistance under this program will be made available by 
grants to tribes and TDHEs that are eligible to receive IHBG funding 
under NAHASDA. Tribes will be able to request Tenant-Based and/or 
Project-Based Rental Assistance by the number of bedrooms in a rental 
unit. Grants will be awarded based on the number rental units (Tenant-
Based and Project-Based Rental Assistance) approved by HUD. Grants will 
include an additional amount for administrative costs, which will be 
described in more detail later in this notice. Grant funding will be 
awarded based on 12 months of funding. Participating tribes/TDHEs will 
draw down funds from the HUD Line of Credit Control System (LOCCS) on a 
monthly basis to cover rental assistance payments.
    Eligible Homeless veterans will receive case management services 
through the Department of Veterans Affairs. A tribe/TDHE should work 
with the local VAMC to determine how Case Management will be delivered 
to Native American veterans. VA may provide these services directly 
through the local VAMC, or through a Community-Based Outpatient Clinic 
(CBOC). Alternatively, the VA may engage in a contractual relationship 
with a tribal healthcare provider or the Indian Health Service (IHS) 
for service delivery. A tribe/TDHE may partner with VA to provide 
office space within the tribal area for the VA caseworker to operate. 
Additionally, VA, in coordination with the tribe/TDHE may partner with 
IHS to provide space for VA case management activities at an IHS 
facility. Native American veterans participating in this program will 
be housed based on a Housing First approach, where Homeless veterans 
are provided housing assistance and then offered the supportive 
services that may be needed to foster long-term stability and prevent a 
return to Homelessness. This approach assumes that supportive services 
are more effective when the individual or household is housed, and the 
daily stress of being Homeless is relieved. Key components of the 
Housing First model include a simple application process for 
participating veterans, a harm reduction approach from VA, and no 
conditions of tenancy beyond those included in the lease and the 
requirements in this Notice. Housing First specifically does not 
require sobriety or testing for substance abuse to obtain or sustain 
tenancy, and thus must not be required in the lease. More information 
on Housing First is available at: https://usich.gov/usich_resources/fact_sheets/the_housing_first_checklist_a_practical_tool_for_assessing_housing_first_in.

IV. Allocation of Assistance

    The 2015 Appropriations Act authorizes HUD to set aside an amount 
from the HUD-VASH program for a tribal demonstration program. HUD has 
set aside $4 million for this purpose, which HUD anticipates will 
provide sufficient grant funding to support approximately 600 rental 
housing units and associated administrative fees for Tribal HUD-VASH.
    Pursuant to the 2015 Appropriations Act, awards under this program 
must be based on need, administrative capacity, and other factors that 
HUD specifies in this Notice after coordination with the VA. The method 
of allocating assistance under this program was developed

[[Page 63824]]

through a collaborative effort among VA and HUD's Offices of Public and 
Indian Housing, Policy Development and Research, and Community Planning 
and Development. HUD also considered all comments and suggestions made 
by Indian tribes during the tribal consultation process. Responding to 
tribal comments, HUD explored the possibility of allocating funding 
through a tribal competition. However, HUD determined the best method 
for allocation under this demonstration program was to follow, as 
closely as possible, the existing parameters for the standard HUD-VASH 
program. HUD is open to reconsidering a competitive process at a later 
date, if additional funding is received for a Tribal HUD-VASH program. 
To identify potential Tribal HUD-VASH sites, HUD used a combination of 
VA data and data from the American Community Survey (ACS). First, HUD 
and VA identified VAMCs serving high populations of Homeless Native 
American veterans. To ensure geographic distribution, HUD selected the 
top two VAMCs with the highest Homeless Native American population in 
each of the six ONAP regions. HUD then identified the tribes within 
these VAMC ``catchment'' or operating areas. Using VA data showing the 
number of Native American veterans by tribal areas, HUD then 
prioritized tribes based on the presence of the greatest number of 
veterans and cross referenced this list with ACS data. In some 
instances, tribes with large populations of Native American veterans 
were outside of the VAMC catchment area. When this occurred, HUD added 
the tribe (and local VAMC) for consideration in that ONAP region. VA 
has allocated funding for the equivalent of up to 30 professional, 
full-time Tribal HUD-VASH case managers, which may be used to directly 
hire VA staff or enter into a contractual relationship with a tribe or 
IHS facility. Each case manager has the capacity to serve between 15-25 
Native American veterans. Case managers will be assigned to VAMCs based 
on the overall level of need and capacity in each ONAP region.
    Tribes/TDHEs selected in each ONAP region will be invited to apply 
for Tribal HUD-VASH shortly after publication of this Notice. To 
receive a grant, tribes/TDHES will be required to submit a Tribal HUD-
VASH application, described below in Section V of this Notice. If a 
tribe or TDHE declines to participate or does not need its full 
allocation, HUD will invite the next highest tribe within an ONAP 
region ranked by need and capacity. A tribe/TDHE that participates in 
the Tribal HUD-VASH program must partner with its VAMC.
    In general, tribes will be awarded grants equal to an amount that 
can fund rental assistance payments for between 15-25 rental housing 
units, which is equal to the capacity of one Tribal HUD-VASH case 
manager. If there are other tribes in the area with eligible veterans 
who can be served by the same case manager, the tribe invited to apply 
may either sub-grant to another entity or directly serve Tribal HUD-
VASH recipients from the other tribe. Should the tribe sub-grant to 
another entity, HUD strongly encourages the tribe invited to ensure 
that the sub-grantee has sufficient capacity and is in good standing 
with HUD. The lead tribe would only be eligible for one grant award, 
not to exceed 25 units of assistance. If there are situations where a 
tribe/TDHE has a need to serve fewer than 15 Native American veterans, 
and VA determines there is the capacity within its existing HUD VASH 
staff to assist Native American veterans, the tribe/TDHE may be awarded 
fewer than 15 units of assistance.
    The grant award will be based on the number of units requested by a 
tribe/THDE, the rents established by the tribe, and a per-unit 
administrative fee. Once an allocation has been awarded, a tribe/TDHE 
may provide assistance to additional Native American veterans if there 
are funds remaining from the initial grant, and the VA is able to 
provide Case Management support at no additional cost.

V. Application and Submission Information

A. Application Receipt Deadline

    Applicants should submit electronic applications to: 
tribalHUDVASH@hud.gov. Electronic applications must be received by 
11:59:59 p.m. Eastern Time on the date the application is due. Specific 
application due date information will be included in the invitation 
letter. Alternatively, applicants may mail one original and one copy of 
their application to Randy Akers, Office of Native American Programs, 
Department of Housing and Urban Development, 451 7th St. SW., Room 
4126, Washington, DC 20410. Mailed applications must be postmarked no 
later than the date the application is due. Hand-carried or faxed 
applications will not be accepted.

B. Eligible Applicants

    Eligible applicants are Indian tribes as defined in section 4(13) 
of NAHASDA or TDHEs authorized by one or more tribes pursuant to 
section 4(22) of NAHASDA and 24 CFR 1000.206 and invited by HUD to 
apply for Tribal HUD-VASH per the allocation method described under 
Section IV of this notice.

C. Content of Application, Forms, and Required Elements

    The applicant must submit all forms required in this section, along 
with other information listed below.
    1. Contact Information: Tribe/TDHE and point of contact; mailing 
address; phone number; and email address; including name, title, and 
signature of person authorized to submit the application.
    2. Other Identifying Information: Employer/taxpayer identification 
number (EIN/TIN) and organizational DUNS number.
    1. System for Award Management (SAM): Evidence of registration with 
SAM.
    2. Units of Assistance Requested: Provide the estimated total 
number of rental housing units that the Indian tribe or TDHE plans to 
provide to Native American veterans with assistance under this program, 
and whether the assistance will be Tenant-Based Rental Assistance, 
Project-Based Rental Assistance, or a combination of both. Provide a 
table detailing the estimated number of units requested by the number 
of bedrooms and the corresponding rent, as well as a written 
justification for the rent structure (see Section VI. H. Rent). If the 
applicant seeks both Tenant-Based and Project-Based Assistance, provide 
separate tables. Fair Market Rents can be found at www.huduser.org/portal/datasets/fmr.html.

[[Page 63825]]



                                            Rental Assistance Requested by Number of Bedrooms: (total number)
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                  0-BR                         1-BR            2-BR            3-BR            4-BR            5-BR            6-BR           Total #
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                                          Type of Assistance: (Tenant-Based or Project-Based Rental Assistance)
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                                                      Estimated Rent for Area by Number of Bedrooms
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0-BR                                                1-BR            2-BR            3-BR            4-BR            5-BR            6-BR         Total $
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    3. Tenant-Based Rental Assistance vs. Project-Based Rental 
Assistance
    In the Tribal HUD-VASH application, the tribe/TDHE must determine 
if the rental housing assistance provided under the program will be 
Tenant-Based Rental Assistance and/or Project-Based Rental Assistance. 
After receiving the grant, a tribe/TDHE may make a determination to 
convert from one type of rental assistance to the other for any 
unutilized grant funds. If the switch is from Tenant-Based to Project-
Based Rental Assistance, then the tribe/TDHE must comply with paragraph 
C.5.b below, and submit the Project-Based Rental Assistance information 
requested below in paragraph C.6 for HUD approval prior to the actual 
switch.
    a. Tenant-Based Rental Assistance: A tribe/THDE may apply for a 
grant under this program to provide Tenant-Based Rental Assistance to 
Native American veterans. The tribe/TDHE will either assist the Native 
American veteran in locating privately- owned housing and enter into a 
contract with the owner of the housing, or provide housing in a unit 
that is owned or operated by the tribe/TDHE. Tenant-Based Rental 
Assistance will be subject to requirements further described in this 
Notice.
    b. Project-Based Rental Assistance: A tribe/THDE may apply for a 
grant under this program to provide Project-Based Rental Assistance to 
Native American veterans. To be considered for Project-Based Rental 
Assistance, a tribe/TDHE's IHBG LOCCS balance cannot exceed three times 
its most current FY grant, unless the tribe received an IHBG that was 
less than $75,000 in that year.
    The tribe/TDHE will provide a monthly rental assistance payment for 
a specific housing unit in which an eligible Native American veteran 
will reside. The housing unit will be specifically designated as a unit 
that is available for Native American veterans eligible under this 
program. Project-Based Rental Assistance may be provided to privately 
owned housing with a contract with the owner of the housing, or a unit 
that is owned or operated by the tribe/TDHE. Project-Based Rental 
Assistance will be subject to requirements further described in this 
Notice.
    6. Project-Based Rental Assistance Submission: If requesting funds 
for Project-Based Rental Assistance, also provide the following 
information:
    a. The number of units and the type of structure to which the 
assistance units will be attached.
    b. The ownership of the project and evidence of site control.
    c. If a tribe/TDHE proposes to use its grant to provide rental 
assistance payments for rental housing units not yet constructed or 
rehabilitated, provide:
    i. A project timeline, including the length of time the Tribal HUD-
VASH assistance would not be used while waiting for the units to be 
completed (projects with timeframes longer than 2 years until 
completion will not be approved);
    ii. A detailed budget for the project including all sources and 
uses of funding; and
    iii. Evidence showing experience of the tribe/TDHE in developing 
new housing.
    7. Tribal Resolution: If an application is submitted by a TDHE on 
behalf of an Indian tribe(s), a tribal resolution(s) must be submitted 
authorizing the TDHE to submit the application under this program.
    8. Mitigation Plan: Per the 2015 Appropriations Act, HUD must 
consider administrative capacity before making awards. HUD will examine 
a range of capacity indicators, including outstanding financial audits; 
unresolved HUD monitoring findings, OIG findings or audit findings; 
high unexpended grant balances; and overall administrative capacity to 
administer a new program. If the invitation requires an applicant to 
submit a mitigation plan as a precondition to receiving an award due to 
capacity concerns identified by HUD, the applicant must submit the 
mitigation plan with the application. The mitigation plan must be 
approved by HUD before funds will be awarded.
    9. Disclosure of Lobbying Activities (SFLLL): This form must be 
submitted by State-recognized Indian tribes and TDHEs established only 
under state law.
    10. Code of Conduct: If the applicant's Code of Conduct (code) is 
not listed on HUD's Web site at https://www.hud.gov/offices/adm/grants/codeofconduct/cconduct.cfm or if the information on the Web site has 
changed, a copy of the code must be submitted with the application.
    11. Community Involvement: The applicant is encouraged to involve 
the community in developing and implementing the Tribal HUD-VASH 
program. Please include a description of actions taken to allow for 
citizen participation.

D. Application Review Procedures

    HUD will review each application and will respond to each 
application within 30 days of receipt. Upon HUD's approval of the 
application, a Tribal HUD-VASH grant will be awarded to a tribe/TDHE. 
HUD will issue a grant agreement to be signed by the tribe/TDHE, and 
will disburse funds through the HUD LOCCS system.

VI. Tribal HUD-VASH Program Requirements, Waivers, and Alternative 
Requirements

    The 2015 Appropriations Act requires tribes and TDHEs that receive 
funding under Tribal HUD-VASH to administer the program in accordance 
with NAHASDA and the IHBG regulations at 24 CFR part 1000, except as 
modified in this Notice. The program requirements for the HCV program 
found at 24 CFR part 982 and the project-based voucher (PBV) program 
requirements found at 24 CFR part 983 do not apply unless specifically 
made applicable in this Notice. The following notices also do not apply 
to Tribal HUD-VASH: PIH 2015-11, PIH 2014-23, PIH 2011-50 PIH-2010-40, 
and 77 FR 17086.
    In addition, the 2015 Appropriations Act authorizes HUD, in 
coordination with the VA, to waive, or specify alternative requirements 
for, any provision of any statute or regulation

[[Page 63826]]

(except for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment), that HUD administers in 
connection with the use of these funds, upon a finding by HUD that any 
such waivers or alternative requirements are necessary for the 
effective delivery and administration of assistance under this program. 
This section of the Notice sets forth requirements for Tribal HUD-VASH 
that replace or augment those in NAHASDA, and that HUD determined are 
necessary for the effective delivery and administration of Tribal HUD-
VASH. These waivers or alternative requirements are exceptions to the 
existing IHBG program requirements, which would otherwise govern the 
provision of Tribal HUD-VASH assistance.

A. Native American Veteran Selection and Referral

    Native American veterans first will be screened by the VA in 
accordance with VA screening procedures and by applying the eligibility 
criteria in paragraph B., below. Native American veterans determined by 
the VA to be eligible for the program will be referred to the tribe/
TDHE for additional screening based on the eligibility requirements 
also listed in paragraph B., below. Native American veterans determined 
eligible for assistance under this program will then be provided with 
rental assistance. A tribe/TDHE may not provide rental assistance under 
this program unless it receives a referral from the VA and the referred 
Native American veteran meets the eligibility criteria for housing 
assistance as described in paragraph B., below.

B. Native American Veteran Eligibility

    1. VA Screening: The VA determines the initial eligibility of 
Native American veterans in the Tribal HUD-VASH program. VA screens for 
the following program eligibility requirements:
    a. Eligible for VA health care (based on factors such as length of 
time in active duty, service, and type of discharge as noted on the 
Native American veteran's Certificate of Release or Discharge from 
Active Duty (DD-214)). More information on veteran status and VA 
eligibility health care eligibility criteria can be found at https://www.va.gov/about_va/ (Benefits, ``Applying for Benefits'').
    b. A determination of Homeless or At Risk of Homelessness in 
accordance with this Notice.
    c. A clinical need for Case Management services (a disabling 
physical or mental condition, or substance use that contributes 
significantly to the Native American veteran's housing status), as 
determined by VA.
    d. The Native American veteran's agreement to participate in VA 
Case Management.
    2. VA will prioritize eligible Native American veterans based on 
their level of need for Case Management. Those veterans with the 
greatest need for Case Management will be the first to be referred to a 
participating tribe/TDHE for rental assistance.
    3. For the purposes of this program, eligibility status for housing 
does not extend to a deceased veteran's family.
    4. Tribe/TDHE Screening: The tribe/TDHE must accept all VA 
referrals of Native American veterans and their families from its VA 
partner and screen for the following eligibility requirements:
    a. A determination that the veteran is ``Indian'' as defined in 
section 4(10) of NAHASDA.
    b. A determination that the Native American veteran is income-
eligible. To be eligible, a veteran household's annual income must be 
no more than 80 percent of area median income for the Indian area. 
Tribes/TDHEs will be subject to the same definition of ``annual 
income'' as in 24 CFR 1000.10. Tribes may follow their existing IHBG 
policies on calculating income in compliance with 24 CFR 1000.10, or 
they may establish new policies specific to the Tribal HUD-VASH 
program. Native American veterans may qualify for assistance under this 
program if they meet the income eligibility requirements in this Notice 
at the time they enter the Tribal HUD-VASH program. HUD is adopting the 
definitions of Homeless and At Risk of Homelessness that are in the 
McKinney-Vento Act, but the income requirements of McKinney-Vento do 
not apply to this program.
    Tribes and TDHEs may not provide assistance under this program to 
any over-income Native American veteran that would otherwise be deemed 
eligible under the over-income or essential family categories in 
Sections 201(b)(2) and (3) of NAHASDA, unless the household met the 
income requirements at the time that they entered the program. To 
ensure that those Homeless and At Risk of Homeless Native American 
veterans with the greatest housing need will be first served by this 
program, HUD has found it necessary to waive of Sections 201(b) (2) and 
(3) of NAHASDA, and regulations at 24 CFR 1000.104-1000.110, to limit 
eligibility to Native American veterans whose income is no more than 80 
percent of area median income for the Indian area.
    c. A determination that the veteran is not registered as a lifetime 
sex offender. HUD is establishing the following alternative 
requirements to section 207(b) of NAHASDA, and 24 CFR 1000.120 relating 
to tenant selection. HUD is applying the screening requirements similar 
to 24 CFR 982.553(a)(2) relating to registered lifetime sex offenders. 
Tribes/TDHEs are required to establish written standards that prohibit 
admission if the veteran or any member of the household is subject to a 
lifetime registration requirement (Tier III offense) under any State 
sex offender registration program. As part of the eligibility screening 
process, a tribe/TDHE must perform a background check to see if the 
referred veteran or any household member is subject to a lifetime sex 
offender registration requirement in the State where the housing is 
located and in other States where the household members are known to 
have resided. If a household member other than the Homeless or At Risk 
of Homelessness veteran (which would result in denial of admission for 
the household) is subject to lifetime registration under a State sex 
offender registration, the remaining household members may be served if 
the veteran agrees to remove the sex offender from its household 
composition. This requirement is necessary to ensure consistent policy 
across HUD-VASH programs relating to providing assistance to registered 
sex-offenders.
    5. Written documentation of all referrals and eligibility screening 
must be maintained in the veteran's file by the tribe/TDHE.

C. Awarding Housing Assistance to an Eligible Veteran

    Once the tribe/TDHE performs all the activities listed above and 
the Native American veteran is deemed eligible, the tribe must offer 
rental housing assistance provided by this program to the participant. 
Tenant-Based Rental Assistance must be provided with an initial search 
term of 120 days from the date such assistance is offered. Project-
Based Rental Assistance must be offered in the form of the next 
available project-based unit.
    To ensure consistency with the standard HUD-VASH program and to 
serve the maximum number of Native American veterans in need of housing 
stability, tribes/TDHEs will not be allowed to deny assistance to an 
otherwise eligible Native American veteran who has been referred by the 
case manager on any grounds other than preferences based on tribal 
membership in accordance with the tribe/TDHE's written admissions and 
occupancy

[[Page 63827]]

policies. Where a tribe/TDHE has adopted a tribal preference policy on 
admissions and occupancy that provides that the tribe/TDHE will provide 
assistance to a tribal member before members of other Indian tribes, 
the tribe/TDHE may prioritize assistance under this program to tribal 
members. If a tribe/TDHE has remaining grant funds after serving its 
tribal members veterans, it must serve other referred Native American 
veterans that are members of other Indian tribes until all grant funds 
under this program have been fully spent, and may not refuse to provide 
such assistance. Tribes/TDHEs may adopt a tribal preference policy 
specifically for this program. Tribes/TDHEs may not deny admission to a 
referred and eligible Native American veteran because of any factors or 
reasons, other than tribal preference, such as criminal history (aside 
from sex offender status) or substance abuse.

D. Record Keeping at Initial Occupancy

    In addition to maintaining records of referral and eligibility 
determination as required in paragraph B.5. above, a tribe/TDHE must 
also collect, keep on file, and report, additional household 
demographic, personal (including social security numbers), and rental 
information using a HUD-50058 form revised for the Tribal HUD-VASH 
program. This information also is required to be reported through an 
electronic reporting system as prescribed by HUD.
    At initial occupancy, tribes/TDHEs will need to collect Social 
Security numbers (SSNs) for Homeless or At Risk of Homelessness 
veterans and their household members. This information must be 
maintained in the veteran's physical file. An original document issued 
by a federal, state, or tribal government agency, which contains the 
name of the individual and the SSN of the individual along with other 
identifying information, is acceptable in accordance with the standards 
in 24 CFR 5.216(g). In the case of the Homeless or At Risk of 
Homelessness veteran, the tribe/TDHE 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 tribe/TDHE-required documentation. Please note 
that veterans are also issued photo identification cards by the VA. If 
such identification is required by the tribe/TDHE, these cards must be 
accepted by the tribe/TDHE in lieu of another type of government-issued 
photo identification.

E. Case Management

    As part of the VA Case Management duties, the veteran's case 
manager will assist the veteran in locating appropriate housing for the 
veteran. VA responsibilities for Case Management also include (1) 
providing appropriate treatment, referrals, and supportive services to 
the veteran prior to tribe/TDHE issuance of rental assistance; (2) 
identifying the social service and medical concerns of the veteran and 
providing, or ensuring the provision of, regular ongoing Case 
Management, outpatient health services, crisis intervention, and other 
supportive services as needed throughout the veteran's participation 
period; and (3) maintaining records and providing information for 
evaluation purposes, as required by HUD and the VA.
    As a condition of receiving rental assistance under this program, 
an eligible veteran must agree to receive the Case Management services 
noted above. If a Tribal HUD-VASH case manager determines that a 
veteran fails to participate without good cause in Case Management, the 
participant's rental assistance may be terminated. However, a 
determination by the case manager that the participant veteran no 
longer requires Case Management is not grounds for termination of 
assistance.

F. Local Housing Codes and Quality Standards

    Once a unit is located or ready to be occupied by a veteran, the 
tribe/TDHE must make a determination that the unit meets applicable 
local housing codes and quality standards in accordance with section 
207(a)(2) of NAHASDA.

G. Ineligible Housing

    Under the 2015 Appropriations Act, assistance under this program is 
limited to Native American veterans that are Homeless or At Risk of 
Homelessness living on or near a reservation or other Indian areas. 
Accordingly, tribes/TDHEs participating in this program must house 
Native American veterans either on or near reservations, or within 
NAHASDA-authorized Indian areas, with the exception of units developed 
to house Homeless veterans on the grounds of a VA facility.
    Assistance under this program may not be provided to Native 
American veterans who will be residing in a housing unit that qualifies 
as Formula Current Assisted Stock under the IHBG program.

H. Rent

    Due to the limited availability of housing stock on or near 
reservations or in NAHASDA Indian Areas that is not developed, or has 
been otherwise assisted, with NAHASDA funding, HUD has found it 
necessary to establish alterative requirements regarding the maximum 
rent for a unit assisted under NAHASDA. These alternative requirements 
affect sections 203(a) of NAHASDA, and regulations at 24 CFR 1000.124, 
and 1000.130, which limit the maximum rent that can be charged to 30 
percent of a household's adjusted monthly income. The alternative 
requirement allows a tribe/TDHE to determine rents by bedroom size 
based on the local FMR, market conditions and/or unit operating costs. 
Tribes/TDHEs must submit a justification as to how rent is determined 
in their program application. For both, housing units owned or operated 
by the tribe/TDHE, and privately owned units, rents may not exceed 110 
percent of FMR. If a tribe/TDHE deems it necessary to charge more than 
110 percent of FMR (or to place a veteran in a privately-owned unit 
with a rent that exceeds 110 percent of FMR), it must obtain HUD's 
prior approval to do so. For example, a tribe/TDHE may find it 
necessary to request such approval in order to address a request for a 
reasonable accommodation or in instances where rental market conditions 
render it difficult to find rent at 110 percent of FMR. HUD encourages 
tribes/TDHEs to establish rents at a level that is less than 110 
percent of the FMR, particularly in housing that is owned or operated 
by the tribe/TDHE, to allow more Native American veterans to receive 
assistance. These alternative requirements do not apply to any other 
HUD-assisted housing that may be subject to other rent restrictions.

I. Tenant Rent Contribution Payment

    Eligible Native American veterans and their families will be 
required to make a monthly tenant rent contribution payment that is no 
more than 30 percent of their monthly adjusted income (as defined in 
NAHASDA and implementing regulations). The tribe/TDHE will pay the 
difference between the rent and the tenant rent contribution payment. 
Consistent with 24 CFR 1000.132, the tribe/TDHE may determine if 
utilities are included in the rent for the unit. The tribe/TDHE may 
also make this determination when negotiating rental assistance payment 
contracts with private -owners of housing. Tribes/TDHEs may establish a 
tenant rent contribution payment

[[Page 63828]]

amount for a Native American veteran that is less than 30 percent of 
monthly adjusted income. IHBG funds may be used to cover any additional 
costs related to housing Native American veterans and their families 
under this program.

J. Rental Assistance Payment Contract

    A tribe/TDHE must enter into a contract with the owner of the 
privately-owned rental housing units in which the Native American 
veteran will reside. The contract will govern rental assistance 
provided under this program to the owner by the tribe/TDHE. Specific 
terms and conditions will be required. HUD is currently developing 
additional guidance on the required contract contents.

K. Program Income

    HUD has found it necessary to establish alternative requirements to 
section 104(a) of NAHASDA, and 24 CFR 1000.62-1000.64, relating to 
program income received by the tribe/TDHE under this program to ensure 
program funds continue to be used to provide affordable housing to low-
income Native American families. Amounts paid to the tribe/TDHE to 
cover the rental assistance payment of Native American veterans and 
their families in tribe/TDHE-owned or operated housing; tenant rent 
contribution payments collected under this program; and any other 
income earned from the disbursement of grant funds, including income 
earned on funds received from such payments; will be considered program 
income, and must be spent on affordable housing activities, which will 
be subject to the requirements of NAHASDA and any other applicable 
Federal law. Notwithstanding Section 104(a) of NAHASDA, and 24 CFR 
1000.62-1000.64, such income may not be spent on housing-related 
activities, as that term is defined in 24 CFR 1000.10. HUD strongly 
encourages tribes/TDHEs to use this program income to further provide 
affordable housing assistance to Homeless or At Risk of Homelessness 
Native American veterans eligible under this program first, before 
providing assistance to other low-income Native American families. 
Additionally, all such amounts must be tracked and reported in the 
Federal Financial Report (SF-425) to ensure compliance with this 
requirement.

L. Affordability Periods and Binding Commitments

    To ensure the maximum level of affordability and participation in 
this demonstration program, HUD has found it necessary to establish 
alternative requirements to section 205(a)(2) of NAHASDA and 24 CFR 
1000.141 and 1000.142 relating to minimum affordability periods based 
on the useful life of properties. The alternative requirement will 
affect Project-Based Rental Assistance (both privately owned or 
tribally owned or operated) provided under this program. Tribes/TDHEs 
must ensure that such properties are subject to binding commitments 
that ensure that the units will remain affordable and available to low-
income Native American veterans and their families for a minimum period 
of 15 years from the time of initial lease-up. Binding commitments must 
run with the land and remain in place regardless of transfer of 
ownership, except in the circumstances described in Section 
205(a)(2)(A) and (B) of NAHASDA. If a tribe/TDHE no longer has a need 
to house Homeless or At Risk of Homelessness Native American veterans 
before the affordability period has ended due to changed circumstances, 
a tribe/TDHE must request HUD's prior approval to house low-income 
Indian families in such units. HUD will approve such requests if the 
tribe/TDHE can demonstrate that there are no Native American eligible 
Homeless veterans that are eligible to occupy these units.

M. Environmental Review

    In accordance with the environmental requirements in 24 CFR 
1000.20, the tribe/TDHE may not enter into a project-based rental 
assistance contract or lease before completion of an environmental 
review and either HUD approval of a Request for Release of Funds under 
24 CFR part 58 or HUD approval of the property under 24 CFR part 50. 
However, in accordance with 24 CFR 50.19(b)(11) and 24 CFR 58.35(b)(1), 
tenant-based rental assistance is excluded from environmental review.

N. Administrative Fee and Reserve Accounts

    HUD has found it necessary to establish alternative requirements to 
section 101(h) of NAHASDA, and 24 CFR 1000.236-1000.239 to ensure that 
administrative fees received under this program can pay for, and are 
limited to, administrative and planning expenses related to this 
program. Tribes/TDHEs participating in the program will receive a flat 
administrative fee of $1,020 per unit, for a 12-month period, which can 
also be used for start-up funding. These funds will be included as part 
of the grant issued under this program.
    A tribe/TDHE may use up to this amount for eligible administrative 
and planning expenses related only to this Tribal HUD-VASH program. 
These funds may not be used to pay for administrative and planning 
expenses related to the tribe/TDHE's IHBG program or any other program. 
If, after covering all administrative Tribal HUD-VASH expenses, there 
is a residual administrative fee amount, these funds may be used to 
provide additional rental assistance to Native American veterans and 
their families under Tribal HUD-VASH.
    Eligible administrative expenses include but are not limited to: 
(1) Eligibility determinations; (2) intake and briefings; (3) owner 
outreach efforts; (4) unit inspections; (5) rent negotiations; (6) 
annual and interim reexaminations; (7) tenant fraud investigations and 
hearings; (8) processing subsequent moves; (9) the costs associated 
with making rental assistance payments to owners; and (10) complying 
with reporting requirements.
    HUD is waiving section 202(9) of NAHASDA and 24 CFR 1000.239 
relating to reserve accounts established to accumulate amounts for 
administration and planning. Given the need to ensure the timely 
expenditure of funds under this program, and the limited scope of this 
demonstration program, tribes/TDHEs may not draw down funds under this 
program and deposit them in a reserve account to accumulate amounts for 
administration and planning.

O. Interim and Annual Reexaminations

    HUD is establishing alternative requirements to 24 CFR 1000.128(b) 
relating to income reexamination requirements. HUD has found it 
necessary to require interim reexaminations if a Native American 
veteran's household income decreases so that the rental assistance 
payment may increase to cover the cost of rent. Further, if the program 
is given renewal authority, it will be necessary to conduct annual 
reexaminations to capture annual fluctuations in income and rent as 
well as track demographic data necessary for the reporting requirements 
of the program.
    Tribes/TDHEs must conduct an interim reexamination if the Native 
American veteran's income decreases between annual certifications. If 
there have been any changes in income, rent, or household composition 
they must be reported using the relevant sections of the HUD-50058 
Form. A paper copy of this information must be kept in the veteran's 
file and be transmitted electronically to HUD at the time of the 
interim reexamination.
    In the event of renewal funding for the program, the tribes/TDHEs 
must

[[Page 63829]]

conduct an annual reexamination of the Native American veteran and the 
household's income to determine rental assistance payments and tenant 
rent contribution payments. Annual reexaminations must also collect and 
update household demographic, personal and rental information reported 
on the Tribal Family Report (HUD-50058 form). A paper copy of this 
information must be kept in the veteran's file and an electronic 
version of this information must be sent to HUD. Rental information 
reported during the annual recertification will be used to calculate 
renewal funding.
    If, upon annual reexamination, a Native American veteran or his/her 
household is determined to be over-income, the tribe can continue to 
serve the Native American veteran/household and not have it count 
towards its 10 percent over-income cap under 24 CFR 1000.110(c). If the 
Native American veteran/household's adjusted rent contribution payment, 
based on the income increase, is equal to the rent for the unit, then 
the Tribal HUD-VASH rental assistance is no longer needed and this 
assistance must be used on the next eligible Native American veteran. 
In this instance, the over-income Native American veteran can continue 
to receive Case Management services from the VA for as long as the VA 
deems the care necessary.

P. Reporting Requirements

    As required by Congress, tribes/TDHEs must submit demographic and 
financial information generated by the Tribal HUD VASH program. Grant 
funds received under this program must be reported annually in a tribe/
TDHE's Indian Housing Plan and Annual Performance Report. Information 
on grant funds and program income received under this program also must 
be reported quarterly on the Federal Financial Report (SF-425). Tribes 
and TDHEs must fill out relevant demographic and rental information on 
the HUD Form 50058, and keep a physical record of this form. 
Additionally tribes/TDHEs will be required to transmit data from this 
form electronically on a monthly, quarterly, or annual basis via a 
method provided by HUD. HUD encourages tribes to make effective use of 
evidence in identifying or selecting the practices and strategies for 
implementing HUD VASH. All tribes and TDHEs must agree to cooperate in 
HUD-funded research and evaluation studies.

Q. Turnover of Tribal HUD-VASH Assistance

    In accordance with the 2015 Appropriations Act, if the Tribal HUD-
VASH rental assistance is no longer needed by a Native American 
veteran, this assistance must be issued to other eligible Native 
American veterans as identified by a case manager and as described 
further in this Notice.

R. Termination of Assistance to Native American Veterans

    Participating tribes and TDHEs must comply with requirements of 
section 207 of NAHASDA on termination of assistance. In addition, 
before determining whether to terminate assistance, tribes and TDHEs 
must contact the case manager to determine if ongoing Case Management 
services could mitigate the conditions that are leading to a potential 
termination. Participating tribes and TDHEs are subject to Section 504 
of the Rehabilitation Act and HUD's regulation at 24 CFR part 8, which 
would include providing reasonable accommodations to individuals with 
disabilities throughout the termination process.

S. Renewal Funding

    HUD anticipates that grants under this program will be subject to 
renewal on an annual basis. However, renewal is subject to the 
availability of future appropriations. Tribal HUD-VASH funding will be 
renewed on an annual basis based on the amount of rental assistance 
payments reported electronically using the HUD-50058 form. When 
calculating the annual grant award, HUD may subtract any funds from the 
previous year's grant that were not used for administrative costs or 
rental assistance payments. If funding is not available, tribes/TDHEs 
should use their best efforts to allocate IHBG funds to support 
Homeless or At Risk of Homelessness Native American veterans and their 
families that are currently being assisted through Tribal HUD-VASH.

T. Investment of Grant Funds

    HUD is waiving section 204(b) of NAHASDA and 24 CFR 1000.58 
relating to the investment of grant funds. Given the need to ensure the 
timely expenditure of funds under this program, and the limited scope 
of this demonstration program, tribes/TDHEs may not draw down funds 
under this program to invest in securities or other obligations.

U. Reduction and Termination of HUD-VASH Grant Funds, Appeal of HUD 
Determinations, and Reallocation of Grant Funds

    Because of the urgent housing needs of Native American veterans and 
their families, the relatively limited amount of funding under this 
program, the limited scope of this demonstration program, and the need 
to ensure the timely expenditure of funding, HUD finds it necessary for 
the effective delivery and administration of assistance under this 
program to waive Title IV of NAHASDA, and all implementing regulations 
at 24 CFR part 1000 as they relate to termination, reduction and 
limitation of assistance, and reallocation of such assistance to other 
tribes/TDHEs under this program. HUD is establishing alternative 
requirements to Title IV of NAHASDA, and relevant implementing 
regulations 24 CFR part 1000.
    To ensure compliance with program requirements, HUD will conduct 
remote and on-site monitoring, as appropriate. After HUD has provided 
sufficient warning and time to cure, HUD may find it necessary to 
terminate, reduce, or limit the availability of the grant to a tribe/
TDHE for poor performance or substantial noncompliance with program 
requirements. Poor performance, as determined by HUD may include 
actions outside of the tribe/TDHE's responsibility such as lack of 
adequate referrals or poor quality of supportive services provided by a 
contracted case management entity, or other reasons. Poor performance 
also includes an inadequate voucher utilization rate by the tribe or 
TDHE. Substantial noncompliance with program requirements is 
noncompliance that HUD determines: (1) Has a material effect on the 
tribe/TDHE's Tribal HUD-VASH program; (2) represents a material pattern 
or practice of activities constituting willful noncompliance with 
program requirements, even if a single instance of noncompliance would 
not be substantial; or (3) places the tribe/TDHE's Tribal HUD-VASH 
program at substantial risk of fraud, waste, or abuse. HUD may also 
terminate or reduce grant funds in situations where a tribe/TDHE is not 
carrying out activities due to a lack of Homeless Native veterans who 
need housing, or the recipient's failure to comply with its mitigation 
plan.
    If HUD determines that a tribe/TDHE lacks Homeless Native veterans 
who need housing, is performing poorly, or is in substantial 
noncompliance with program requirements, HUD will provide written 
notice to the tribe/

[[Page 63830]]

TDHE informing it of HUD's decision to terminate, reduce, or limit the 
availability of the grant. If the tribe/TDHE disagrees with HUD's 
determination, it may appeal that decision in writing to HUD within 30 
days of receipt of HUD's written notice. In such appeal, the tribe/TDHE 
must demonstrate to HUD's satisfaction good cause to maintain its grant 
under this program, including and, as applicable, demonstrate how it 
will cure its noncompliance or improve its poor performance, within a 
time period deemed acceptable by HUD. In situations where HUD 
determines a tribe/TDHE is not carrying out activities due to a lack of 
Homeless Native veterans, the tribe/TDHE must demonstrate to HUD's 
satisfaction the level of Homeless Native veteran housing need 
corresponds to the assistance the tribe/TDHE is currently receiving. If 
HUD denies the tribe/TDHE's appeal, the tribe/TDHE will have 30 days 
from the date of receipt of HUD's written notice of denial to submit a 
written request for reconsideration to HUD setting forth justification 
for reconsideration. HUD will reconsider the tribe/TDHE's submission 
and either affirm or reverse its initial decision in writing, and will 
set forth HUD's reasons for the decision. If HUD affirms its initial 
decision on reconsideration, HUD's decision will constitute final 
agency action.
    If, after receiving notice informing it of HUD's decision to 
terminate, reduce, or limit the availability of assistance, the tribe/
TDHE fails to submit a timely appeal or request for reconsideration, 
fails to demonstrate to HUD's satisfaction good cause to maintain its 
grant funds under this program, or fails to cure its noncompliance or 
poor performance within the time specified by HUD, HUD is authorized to 
terminate, reduce, or limit the availability of the tribe/TDHE's grant 
funds under this program. HUD may use its discretion to reallocate the 
grant funds resulting from such reduction or termination, to any other 
tribe/TDHE that is in compliance with program requirements and is not 
deemed to be a poor performer, and that still has a need to house 
Homeless Native veterans. Grant funds may be reallocated among tribe/
TDHEs within the same ONAP region, or among tribes/TDHEs in different 
ONAP regions, based on administrative capacity, the utilization of 
previously awarded Tribal HUD-VASH assistance, and current geographic 
need as determined by the VA and HUD.
    To the extent that any provision of Title VI of NAHASDA or any 
implementing regulation at 24 CFR part 1000 conflicts with the appeal 
process described above including, but not limited to, the opportunity 
for an administrative hearing, the provisions of this Notice will 
apply.

V. Nondiscrimination Requirements

    Tribes/TDHEs shall be subject to all nondiscrimination requirements 
that are applicable under NAHASDA and the IHBG regulations at 24 CFR 
part 1000 and in particular 24 CFR 1000.12

W. Electronic Submission Requirement

    HUD is waiving the requirement to submit applications for grant 
funding through www.grants.gov, as required in 24 CFR 5.1005. 
Considering the statutory deadline to publish this Notice and begin the 
process of awarding funding, and the limited amount of available funds 
under this program, HUD has determined that allowing the submission of 
paper applications will be less burdensome, and will allow HUD to make 
awards in a timelier manner. Electronic applications may still be 
submitted to the inbox described in this Notice.

VII. Environmental Impact

    A Finding of No Significant Impact with respect to the environment 
has been made in accordance with HUD regulations at 24 CFR part 50, 
which implement section 102(2)(C) of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant 
Impact is available for public inspection during regular business hours 
in the Regulations Division, Office of General Counsel, Department of 
Housing and Urban Development, 451 7th Street SW., Room 10276, 
Washington, DC 20410-0500. Due to security measures at the HUD 
Headquarters building, please schedule an appointment to review the 
Finding by calling the Regulations Division at (202) 402-3055 (this is 
not a toll-free number). Individuals with speech or hearing impairments 
may access this number via TTY by calling the Federal Relay Service at 
(800) 877-8339.

    Dated: October 15, 2015.
Lourdes Castro Ramirez,
Principal Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2015-26748 Filed 10-20-15; 8:45 am]
BILLING CODE 4210-67-P