Rental and Utility Assistance for Certain Low-Income Veteran Families, 22407-22409 [2019-10254]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 84, Number 96 (Friday, May 17, 2019)]
[Proposed Rules]
[Pages 22407-22409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-10254]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 62

RIN 2900-AQ40


Rental and Utility Assistance for Certain Low-Income Veteran 
Families

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) proposes to amend its 
regulations that govern the Supportive Services for Veteran Families 
(SSVF) Program. This proposed rule would enable grantees to augment 
available housing options for homeless veterans in high rent burden 
communities by increasing the rental assistance for up to two years 
before recertification. Conditions in some local housing markets such 
as low vacancy rates and higher costs have made it increasingly 
difficult to recruit landlords and help homeless veteran families find 
and sustain permanent housing. Providing enhanced rental assistance in 
these communities is necessary to help VA progress in its goal to end 
veteran homelessness.

DATES: Comments must be received on or before June 17, 2019.

ADDRESSES: Written comments may be submitted through https://www.Regulations.gov by mail or hand-delivery to: Director, Office of 
Regulation Policy and Management (00REG), Department of Veterans 
Affairs, 810 Vermont Ave. NW, Room 1064, Washington, DC 20420; or by 
fax to (202) 273-9026. (This is not a toll-free telephone number.) 
Comments should indicate that they are submitted in response to ``RIN 
2900AQ40--Rental and Utility Assistance for Certain Low-Income Veteran 
Families.'' Copies of comments received will be available for public 
inspection in the Office of Regulation Policy and Management, Room 
1064, between the hours of 8:00 a.m. and 4:30 p.m., Monday through 
Friday (except holidays). Please call (202) 461-4902 for an 
appointment. (This is not a toll-free telephone number.) In addition, 
during the comment period, comments may be viewed online through the 
Federal Docket Management System (FDMS) at https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: John Kuhn, Homeless Program Office, 
Supportive Services for Veteran Families Program Office, 810 Vermont 
Ave. NW, Washington, DC 20420; (202) 632-8596 (This is not a toll-free 
number.) [email protected].

SUPPLEMENTARY INFORMATION: VA proposes to revise its regulations that 
govern the Supportive Services for Veteran Families (SSVF) Program 
which is authorized under section 2044 of title 38 United States Code 
(U.S.C.). This section requires the Secretary to provide financial 
assistance to eligible entities, approved under this section to provide 
and coordinate the provision of supportive services for very low-income 
veteran families occupying permanent housing. VA implements the SSVF 
Program under the regulations in title 38 Code of Federal Regulations 
(CFR), Part 62. Through the SSVF Program, VA awards supportive services 
grants to private non-profit organizations or consumer cooperatives to 
provide and coordinate the provision of supportive services to very 
low-income veteran families who are occupying permanent housing. 
Pursuant to 38 CFR 62.11, there are three situations in which a very 
low-income veteran family is considered to be occupying permanent 
housing. The first possibility is if a family is residing in permanent 
housing at the risk of becoming homeless but for the grantee's 
assistance. The second possible situation is if a family is lacking a 
fixed, regular, and adequate nighttime residence; is at risk of 
remaining in that state if they do not receive grantee assistance; and 
is scheduled to become a resident of permanent housing within 90 days 
pending the location or development of housing suitable for permanent 
housing. Finally, if a family is lacking a fixed, regular, and adequate 
nighttime residence after exiting permanent housing within the previous 
90 days to seek other housing that is responsive to their needs and 
preferences, that very low-income family is considered to be occupying 
permanent housing. This rulemaking would extend the ability of SSVF 
grantees to provide rental assistance in areas where the limited 
availability of affordable housing makes it difficult to reduce a 
community's population of homeless veterans. Through the provision of 
these subsidies, the pool of available housing can be expanded as 
program participants have access to a broader rental market.

62.34 Other Supportive Services

    We propose to revise Sec.  62.34 to allow grantees to provide 
greater rental assistance to very low and extremely low-income 
participants. This revision would permit grantees to provide a new 
rental subsidy for up to two years at a time, without the need for 
recertification, for homeless veteran families residing in areas where 
VA has determined that the cost and limited availability of affordable 
housing necessitates this benefit to promote housing stability. We 
believe that extremely low-income veteran families subsisting on an 
income that does not exceed 30 percent of the median income (as defined 
in Sec.  62.2) face particularly high barriers to placement in or 
retention of permanent housing, and, therefore, should be eligible for 
a higher level of assistance relative to very-low income veteran 
families who subsist on an income that does not exceed 50 percent of 
the median income. Under this rule, VA would, therefore, provide 
different levels of rental subsidy assistance for these two groups by 
offering a longer duration of rental subsidy for extremely low-income 
households. Barriers to housing stability may be exacerbated by local 
economic conditions that severely restrict the availability of 
affordable housing. VA has received feedback from SSVF grantees stating 
that veteran families at lower levels of income are more difficult to 
reach and require more resources for the interventions authorized under 
this program to succeed, particularly in communities with a limited 
stock of affordable housing. Based on that feedback, we believe that 
the increased benefit authorized under the proposed rule would help 
ensure that grantees can be successful in supporting very

[[Page 22408]]

low and extremely low-income veteran families.
    Proposed paragraph Sec.  62.34(a)(1) would limit the payment of 
rental assistance to extremely low-income veteran families to 9 months 
in any 12-month period and to 12 months during a 2-year period, such 
period beginning on the date that the grantee first pays rent on behalf 
of the participant. The payments of rental assistance to very-low 
income veteran families are limited to 6 months in any 12-month period 
and to 10 months during a 2-year period. Proposed Sec.  62.34(a)(8) 
would allow for a rental subsidy exceeding the restrictions in Sec.  
62.34(a)(1) under certain conditions. This subsidy could be provided 
from the end of the participant's rental support under Sec.  
62.34(a)(1). The new subsidy would not exceed a period of 2 years 
before recertification. Then, if the veteran family qualifies for SSVF 
services after that 2-year period, the veteran family would again be 
eligible for all benefits described in Sec.  62.34. Because the new 
subsidy under Sec.  62.34(a)(8) would provide different periods and 
frequency of support than the rental assistance of Sec.  62.34(a)(1), 
the provisions of Sec.  62.34(a)(1) would not apply to assistance under 
the proposed regulation. However, payment of this subsidy by a grantee 
would otherwise conform to the rental assistance requirements set forth 
in Sec.  62.34(a)(2)-(7).
    The applicable counties in which the subsidy may be offered would 
be chosen based on the cost and availability of affordable housing for 
both individuals and families within that community. The maximum amount 
of the rental subsidy would be based on a percentage of the applicable 
Fair Market Rent (FMR) published by Housing and Urban Development 
(HUD). This subsidy level would be set at a level no higher than 35 
percent of the FMR. This maximum subsidy level is intended to provide a 
meaningful level of support, yet still differentiate it from rental 
supports provided by HUD-VASH where a Housing Choice Voucher can pay 
the entire rent. This level of subsidy was recommended in a scholarly 
article by Mary Cunningham, Josh Leopold, and Pamela Lee (``A Proposed 
Demonstration of a Flat Rental Subsidy for Very Low Income 
Households'').
    The amount of the subsidy for each county would be proposed by the 
SSVF grantees serving the targeted community with a letter of support 
from the Continuum of Care (CoC), as defined at 24 CFR 578.3, that is 
organizing homeless services for that community. Agreement between the 
grantees and the CoC regarding the subsidy amount would allow for a 
local determination of the optimal subsidy amount. As this proposed 
rule would represent a new approach to rental subsidies, these amounts 
must be reviewed and approved by the SSVF Program Office before going 
into effect. This would help ensure that these subsidy amounts meet the 
intent of the proposed rule.
    As the gap between housing costs and income is larger for those 
veteran households defined as extremely low income, their subsidy would 
be available for a longer period. Under this proposed rule, very low-
income families may receive this subsidy for a period of two years 
before recertification, minus the number of months in which the 
recipient received the rental assistance provided under Sec.  
62.34(a)(1). In addition, extremely low-income veteran families may 
receive this subsidy for up to a two-year period before recertification 
following receipt of the Sec.  62.34(a)(1) rental assistance. The 
duration of the subsidy for extremely low-income veteran families may 
be longer than for very-low income families because VA believes that 
extremely-low income veteran families would be in greater need for a 
subsidy. However, no family may receive an amount of subsidy greater 
than the total amount of rent that such family pays in a given month. 
The rental subsidy amount would not change for the veteran families in 
the second year of the 2-year period, even if the annual amount 
published changes.
    Under Sec.  62.36(a), grantees must recertify the participant's 
eligibility as a very low-income veteran family at least once every 3 
months. For this subsidy, we would only apply this recertification 
requirement to very-low and extremely-low income veteran families who 
are receiving this subsidy or a combination of the rental assistance in 
Sec.  62.34(a)(1) and rental subsidy of Sec.  62.34(a)(8) every two 
years. A more frequent recertification process for participants who 
receive this rental subsidy could reduce the time that the subsidy is 
available and make the commitment of up to a two-year period of rental 
subsidy meaningless. This would undermine the intent of this proposed 
rule, which would seek to expand available affordable housing stock by 
providing landlords with assurance of ongoing support for rental 
payments. Recertification every two years, however, would ensure the 
subsidy is provided to the veteran families who need it the most.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as revised by this 
rule, would represent VA's implementation of its legal authority on 
this subject. Other than future amendments to this rule or governing 
statutes, no contrary guidance or procedures would be authorized. All 
existing or subsequent VA guidance would be read to conform with this 
rule if possible. If not possible, such guidance would be superseded by 
this rule.

Paperwork Reduction Act

    This rule would contain no provisions constituting a collection of 
information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-
3521).

Regulatory Flexibility Act

    The Secretary hereby certifies that this 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-
612. Therefore, pursuant to 5 U.S.C. 605(b), this rulemaking is exempt 
from the initial and final regulatory flexibility analysis requirements 
of 5 U.S.C. 603 and 604.

Executive Order 12866, 13563 and 13771

    Executive Orders 12866 and 13563 direct agencies to assess the 
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 effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' requiring review by the Office of 
Management and Budget (OMB), unless OMB waives such 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 
taken or planned by another agency; (3) Materially alter the budgetary 
impact of entitlements, grants, user fees, or loan

[[Page 22409]]

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 this Executive 
Order.''
    OMB has determined that this is not a significant regulatory action 
under Executive Order 12866. VA's impact analysis can be found as a 
supporting document at https://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its impact analysis are available on VA's website 
at https://www.va.gov/orpm by following the link for ``VA Regulations 
Published from FY 2004 through FYTD.'' This rule is not an E.O. 13771 
regulatory action because this rule is not significant under E.O. 
12866.
    Executive Order 12866 also directs agencies to ``in most cases . . 
. include a comment period of not less than 60 days.'' This rulemaking 
proposes to amend regulations that govern the Supportive Services for 
Veteran Families (SSVF) Program. Providing a 30-day comment period will 
allow the Secretary to ensure the provisions of this proposed rule 
would provide greater rental assistance to very low and extremely low-
income participants within the SSVF Program sooner. Delays in expanding 
the rental assistance may mean continued or recurring homelessness for 
extremely low-income veterans, creating imminent risks to the health of 
the veteran and their family members. Moreover, we believe the SSVF 
Program is now a familiar benefit to the public and that providing less 
than 60 days would still be a sufficient period of time for the public 
to comment on this single aspect of the new SSVF Program. In sum, 
providing a 60-day public comment period instead of a 30-day public 
comment period would be against the public interest and the health and 
safety of eligible veterans. For the above reasons, the Secretary 
issues this rule with a 30-day public comment period. VA will consider 
and address comments that are received within 30 days of the date this 
proposed rule is published in the Federal Register.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995, 2 U.S.C. 1532, requires 
that agencies prepare an assessment of anticipated costs and benefits 
before issuing any rule that may result in the expenditure by State, 
local, and tribal governments, in the aggregate, or by the private 
sector, of $100 million or more (adjusted annually for inflation) in 
any one year. This rule would have no such effect on State, local, and 
tribal governments, or on the private sector.

Catalog of Federal Domestic Assistance Program

    The Catalog of Federal Domestic Assistance numbers and titles for 
the programs affected by this document are: 64.009, Veterans Medical 
Care Benefits, and 64.033, VA Supportive Services for Veteran Families 
Program.

List of Subjects in 38 CFR Part 62

    Administrative practice and procedure, Day care, Disability 
benefits, Government contracts, Grant programs--health, Grant 
programs--housing and community development, Grant programs--veterans, 
Heath care, Homeless, Housing, Indian--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.

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. Robert L. 
Wilkie, Secretary, Department of Veterans Affairs, approved this 
document on May 14, 2019, for publication.

    Dated: May 14, 2019.
Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

    For the reasons stated in the preamble, the Department of Veterans 
Affairs proposes to amend 38 CFR part 62 as follows:

PART 62--SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM

0
1. The authority citation for part 62 would continue to read as 
follows:

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

0
2. Amend Sec.  62.34 by adding paragraph (a)(8) to read as follows:


Sec.  62.34   Other supportive services.

* * * * *
    (a) * * *
    (8) Extremely low-income veteran families and very low-income 
veteran families who meet the criteria of Sec.  62.11 may be eligible 
to receive a rental subsidy for a 2-year period without 
recertification. The applicable counties will be published annually in 
the Federal Register. A family must live in one of these applicable 
counties to be eligible for this subsidy. The counties will be chosen 
based on the cost and availability of affordable housing for both 
individuals and families within that county. The maximum amount of this 
rental subsidy is 35 percent of the applicable Fair Market Rent (FMR) 
published by HUD. Grantees must collaborate with their local Continuum 
of Care (CoC) as defined at 24 CFR 578.3 to determine the proper 
subsidy amounts to be used by all grantees in each applicable county. 
Grantees must provide a letter of support from their local CoC to the 
SSVF Program Office when requesting VA approval of this subsidy. The 
SSVF Program Office must approve all subsidy requests before the 
subsidy is used. Very low-income veteran families may receive this 
subsidy for a period of two years before certification minus the number 
of months in which the recipient received the rental assistance 
provided under paragraph (a)(1) of this section. Extremely low-income 
veteran families may receive this subsidy for up to a 2-year period 
before recertification following receipt of the paragraph (a)(1) rental 
assistance. For any month, the total rental payments provided to a 
family under this paragraph cannot be more than the total amount of 
rent. Payment of this subsidy by a grantee must conform to the 
requirements set forth in paragraphs (a)(2) through (7) of this 
section. The rental subsidy amount will not change for the veteran 
family in the second year of the two-year period, even if the annual 
amount published changes. A veteran family will not need to be 
recertified as a very low-income veteran family as provided for by 
Sec.  62.36(a) during the initial two-year period. After an initial 
two-year period, a family receiving this subsidy, or a combination of 
the rental assistance under paragraph (a)(1) and this subsidy, may 
continue to receive rental payments under this section, but would 
require recertification at that time and once every two years.
* * * * *
[FR Doc. 2019-10254 Filed 5-16-19; 8:45 am]
BILLING CODE 8320-01-P