Rental and Utility Assistance for Certain Low-Income Veteran Families, 45074-45077 [2019-18521]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 84, Number 167 (Wednesday, August 28, 2019)]
[Rules and Regulations]
[Pages 45074-45077]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-18521]


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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: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending its 
regulations that govern the Supportive Services for Veteran Families 
(SSVF) Program. This final rule will 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: This final rule is effective September 27, 2019.

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.)

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register on May 17, 2019, VA published a proposed rule, which proposed 
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.). 84 FR 22407. VA provided a 30-
day comment period, which ended on June 17, 2019. We received 9 
comments on the proposed rule.
    Section 2044 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 extends 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.
    One commenter was in favor of the proposed rule stating that by 
allowing for shallow, flat subsidies linked to fair market residential 
rental rates, families served by rapid rehousing programs will be able 
to further stabilize in housing and, ultimately, achieve greater self-
sufficiency. The commenter added that the communities in which these 
families reside will benefit from the residual socio-economic value of 
a reduced demand for emergency services, improved physical and mental 
well-being for participating households, greater neighborhood 
stability, and similarly improved educational outcomes for affected 
youth. As such, the proposed rule will not only fulfill our moral 
imperative to our fellow citizens, but will pay for itself as a result 
of reduced demand on local community systems. Another commenter stated 
that this was a great rule. We make no changes based on these comments.
    Another commenter was also in support of the proposed rule stating 
that this is a highly valuable program, to the extent that it provides 
additional, and longer, housing assistance, especially for low income 
veterans and their families in high cost areas. The commenter stated 
that there are numerous instances in the San Francisco Bay Area of 
veterans needing housing assistance, because the San Francisco Bay 
Area, with its limited land space, and hi-tech industries, has some of 
the highest housing costs in the country. The commenter added that the 
result is that low income veterans will have difficulty finding and 
maintaining payments for housing. VA agrees that the proposed changes 
provide additional and longer housing assistance for low income 
veterans and their families in high cost areas, such as the San 
Francisco Bay Area. We are not making any changes based on this 
comment.
    Another commenter supportive of the proposed rule stated that by 
giving veterans rental assistance, we are allowing them more breathing 
room in terms of becoming financially stable. The commenter added that 
VA should also provide veterans with extra money every month so that 
they can purchase food and pay for utilities. The commenter also stated 
that if the government cannot come up with this extra money for food 
allowance, then the government must at least provide them with 
discounts when veterans go grocery shopping. VA agrees that it is 
important for some veterans to receive assistance to pay for food and 
utilities. Under Sec.  62.34 grantees may provide services that are 
necessary for maintaining independent living in permanent housing and 
housing stability. Such services include rental and utility assistance. 
For ongoing support, SSVF works with participants to get mainstream 
benefits assistance, for example linking participants to Supplemental 
Nutrition Assistance Program (SNAP), commonly known as food stamps, to 
address food needs. In emergent situations, SSVF grantees can

[[Page 45075]]

make purchases of food for grantees under Sec.  62.34(e)(1). We are not 
making any changes based on this comment.
    A commenter stated that the proposed rule would potentially enhance 
SSVFs innovative model of public-private partnership. However, the 
commenter added that the rule could be strengthened by requiring or 
effectively encouraging beneficiaries to also engage in alternatively-
funded, complimentary VA and/or Continuum of Care (CoC) local or 
telehealth services that are likely to improve the veteran's future 
capacity to maintain housing stability. The commenter recommended that 
beneficiaries of expanded federal assistance under the proposed rule, 
in collaboration with SSVF personnel, be required to identify and 
actively engage in whole health or related services to strengthen 
relationships with family, friends and social supports, and/or increase 
opportunities to pursue, obtain and maintain employment throughout the 
period of assistance. As such, veteran families themselves would be 
more actively represented in the partnership throughout their period of 
participation.
    The commenter also suggested that defining expectations, 
recommendations and/or commitments around the unique circumstances, 
goals and priorities of each unique veteran family, including the 
ability of SSVF personnel to issue time-limited waivers as appropriate 
based on veteran circumstances and/or local conditions, can contribute 
to greater integration, collaboration, modernization, and cost 
efficiencies in our commitment to ending veteran homelessness.
    We agree that SSVF should be provided in conjunction with VA health 
care to eligible veterans to address all of the veteran's needs. As 
such, VA provides eligible veterans a whole health approach to health 
care that addresses not only the veteran's health care needs, but also 
identifies the aspects of the veteran's life that are affecting their 
health, then work with a team to establish strategies to address them 
as needed. This approach includes assisting homeless veterans obtain 
and retain permanent housing. Also, eligible veterans may receive 
health care in locations that are convenient for the veteran, which 
includes care in the community as well as telehealth services. 
Providing accessible care to veterans allows for better management of a 
veteran's health care needs.
    Furthermore, SSVF requires that grantees provide case management 
services in accordance with 38 CFR 62.31. Such case management includes 
linkages with appropriate agencies and service providers in the area or 
community to help participants obtain needed supportive services. SSVF 
is uniquely positioned in that it can provide case management services 
to each family member, even non-veterans, to develop a service plan 
tailored to meet the needs of each family. The case management services 
are extensive and in addition to facilitating access to health care 
include delivering or facilitating access to legal services, 
transportation, benefits, employment, child care, and a host of other 
services. Accordingly, it is not necessary to make any changes based on 
this comment.
    Another commenter inquired whether the Continuum of Care and SSVF 
grantees can agree to set different rates, up to the 35 percent cap, 
for different subpopulations of veterans and suggested that they be 
able to set different rates. The commenter included two examples. 
First, can a higher rental subsidy, expressed as a percent of the Fair 
Market Rent (FMR), be offered to extremely low-income households 
compared to very-low income households? In addition, can higher subsidy 
rates be offered to those with disabilities who are on a fixed income? 
The Continuum of Care and the SSVF grantees can recommend setting 
differing rates for different sub-populations. This flexibility affords 
the best level of assistance to those veterans with greater need. We 
make no changes based on this comment.
    This same commenter also stated that at the time of recertification 
(after two years), if the household is still eligible for the shallow 
subsidy, it would be useful if the subsidy were reset at the new Fair 
Market Rent level published for that location and that year rather than 
the original Fair Market Rent level from a year or two prior. VA agrees 
with the commenter, and if the household is retained in SSVF and 
provided another period of shallow subsidy, the new period would be 
based on the Fair Market Rent in effect at the time of recertification. 
We are not making any changes based on this comment.
    Another commenter asked whether, if a household seeks other SSVF 
services while enrolled in the shallow subsidy program, they would also 
only be required to get re-certified after the two-year period 
described in the proposed rule for other types of financial assistance, 
or would participants still need to get re-certified every three months 
for other (non-shallow subsidy) financial assistance? The two-year 
recertification period would apply to all SSVF services and benefits, 
including other types of financial assistance. The only exception would 
be for rental assistance, other than the shallow subsidy, as a 
household cannot receive both the shallow subsidy and other forms of 
rental assistance described in Sec.  62.34(a)(1). Should the household 
receive a Housing Choice voucher, or any similar form of subsidy 
designed to make the housing unit affordable for very-low income 
residents, including rental units with a significant underlying subsidy 
such as those found in Housing and Urban Development (HUD) supported 
Public Housing, the shallow subsidy would be discontinued. See Sec.  
62.34(a)(6). We are not making any changes based on this comment.
    Two commenters were in support of the proposed rule, but suggested 
that VA add Contra Costa County to the list of CoCs that will receive 
enhanced rental assistance funding with the proposed amendment. The 
commenters stated that there is a clear and serious need for this 
assistance in Contra Costa County: The HUD-published Fair Market Rate 
(FMR) in Contra Costa is $2,126 for a 2-bedroom unit, which is 
identical to Alameda and Berkeley's FMR of $2,126 up from $1,295 only 
ten years ago. According to the commenters, this massive rise in rental 
costs has put a strain on the county's low-income residents, including 
its homeless and at-risk veteran population. Residents are considered 
severely burdened by living costs if they pay more than 50 percent of 
their income on housing. In Contra Costa County, 25.8 percent, or one 
out of every four residents, pay more than half of their entire income 
on rent (U.S. Census Bureau). With a very low 4.8 percent vacancy rate, 
Contra Costa has one of the highest FMRs, lowest vacancy rates, and 
most severely housing-burdened populations of any county in California. 
These commenters contend that increased rental assistance for service 
providers in Contra Costa would make a huge impact in the fight to 
alleviate this housing crisis for veterans and their families. The 
commenters added that recent data shows that there is a growing number 
of veterans in this community that would benefit from this assistance. 
Contra Costa's 2019 Point in Time (PIT) Count revealed a 14 percent 
increase in the number of homeless veterans compared to the previous 
year. The commenters explained that expanding the proposed rule to 
include Contra Costa County would make a difference in the lives of 
hundreds of at-risk veterans in the coming years.
    These comments are beyond the scope of the final rule. 
Nevertheless, VA understands the commenters' concerns, and it is VA's 
intention to review the list of potential shallow subsidy locations and 
publish the list of

[[Page 45076]]

counties in the Federal Register as required by the regulation soon 
after it becomes final and annually thereafter.
    Another commenter suggested that VA remove the subsidy level cap of 
35 percent of the FMR. The commenter stated that they understand the 
importance of differentiating this subsidy from the rental supports 
provided by the U.S. Department of Housing and Urban Development-VA 
Supportive Housing (HUD-VASH) Program. However, there are eligibility 
requirements for HUD Housing Choice Vouchers that exclude a substantial 
number of homeless veterans in need of long-term rental assistance. The 
commenter added that many homeless veterans fall well below 30 percent 
Area Median Income. With the FMR as high as $2,126 in Alameda County 
and $3,170 in San Francisco County for a 2-bedroom unit, even with a 35 
percent subsidy exceptionally few homeless veterans will be able to 
afford the $1,381-$2,060 remaining for the rental unit. This amendment 
would enable SSVF grantees to provide a subsidy program for veterans 
who do not otherwise qualify for HUD-VASH. VA acknowledges the 
commenter's concern and will now allow States and communities to offer 
State and local housing subsidy funds to participants in order to 
increase the level of subsidy up to the rent paid. We are amending 
Sec.  62.34(a)(6) to allow State and local rental subsidies to be 
combined with SSVF rental assistance described at Sec.  62.34(a). 
However, Federal subsidies still cannot be accepted by the participant 
who is receiving a subsidy under section 62.34. In instances where a 
higher level of federal rental assistance is required, the use of HUD 
housing vouchers, or other forms of subsidized housing, including other 
available rental subsidies should be considered. We are amending Sec.  
62.34(a)(6) to now state that rental assistance payments cannot be 
provided on behalf of participants for the same period of time and for 
the same cost types that are being provided through another Federal 
housing subsidy program; however, State and local funds may be combined 
as long as the total subsidy does not exceed the rent.
    Based on the rationale set forth in the Supplementary Information 
to the proposed rule and in this final rule, VA is adopting the 
proposed rule as final with one change as explained above.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as revised by this 
rule, represents 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 are authorized. All 
existing or subsequent VA guidance must be read to conform with this 
rule if possible. If not possible, such guidance is superseded by this 
rule.

Paperwork Reduction Act

    This rule contains 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 will 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 Orders 12866, 13563 and 13771

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
The Office of Information and Regulatory Affairs has determined that 
this rule 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.

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 will have no such effect on State, local, and 
tribal governments, or on the private sector.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

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 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 August 23, 2019, for publication.

    Dated: August 23, 2019.
Michael P. Shores,
Director, 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 amends 38 CFR part 62 as follows:

PART 62--SUPPORTIVE SERVICES FOR VETERAN FAMILIES PROGRAM

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

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


[[Page 45077]]



0
2. Amend Sec.  62.34 by revising paragraph (a)(6) and adding paragraph 
(a)(8) to read as follows:


Sec.  62.34   Other supportive services.

* * * * *
    (a) * * *
    (6) Rental assistance payments cannot be provided on behalf of 
participants for the same period of time and for the same cost types 
that are being provided through another Federal housing subsidy 
program; however, such payments may be provided even though the 
participant is receiving State and local housing subsidy funds as long 
as the total subsidy received (including payments under this section) 
does not exceed the rent.
* * * * *
    (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. 2019-18521 Filed 8-27-19; 8:45 am]
 BILLING CODE 8320-01-P