Supportive Services for Veterans Families, 62482-62486 [2021-24496]

Agencies

• DEPARTMENT OF VETERANS AFFAIRS

[Federal Register Volume 86, Number 215 (Wednesday, November 10, 2021)]
[Rules and Regulations]
[Pages 62482-62486]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24496]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 62

RIN 2900-AR15


Supportive Services for Veterans Families

AGENCY: Department of Veterans Affairs

ACTION: Interim 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 interim final rule will provide a more effective 
subsidy to veterans in high-cost rental markets; increase the cap on 
General Housing Assistance to reflect increased costs; and extend the 
ability of SSVF grantees to provide emergency housing for the most 
vulnerable, unsheltered veterans and their families.

DATES: 
    Effective date: This interim final rule is effective November 10, 
2021.
    Comment date: Comments must be received on or before January 10, 
2022.

ADDRESSES: Comments may be submitted through www.Regulations.gov. 
Comments should indicate that they are submitted in response to ``RIN 
2900-AR15--Supportive Services for Veterans Families.'' Comments 
received will be available at regulations.gov for public viewing, 
inspection or copies.

FOR FURTHER INFORMATION CONTACT: John Kuhn, National Director, 
Supportive Services for Veteran Families. 810 Vermont Avenue NW, 
Washington, DC 20420. (202) 632-8596 (this is not a toll-free telephone 
number).

SUPPLEMENTARY INFORMATION: VA is amending its regulations that govern 
the Supportive Services for Veteran Families (SSVF) Program under 
section 2044 of title 38 United States Code (U.S.C.), which requires 
the Secretary to provide financial assistance to eligible entities, 
approved under that section, to provide and coordinate the provision of 
supportive services for very low-income veteran families occupying 
permanent housing.
    VA implements the SSVF Program in 38 CFR part 62. Through the SSVF 
Program, VA awards supportive services grants to private non-profit 
organizations or consumer cooperatives to provide or coordinate the 
provision of supportive services to very low-income veteran families 
who are residing in permanent housing and are at risk of becoming 
homeless. We note that, for the purposes of this section, permanent 
housing means community-based housing without a designated length of 
stay where an individual or family has a lease in accord with State and 
Federal law that is renewable and terminable only for cause. Examples 
of permanent housing include, but are not limited to, a house or 
apartment with a month-to-month or annual lease term or home ownership. 
A very low-income veteran family will be considered to be occupying 
permanent housing if the very low-income veteran family: Is residing in 
permanent housing and is at risk of becoming homeless but for the 
grantee's assistance; is lacking a fixed, regular, and adequate 
nighttime residence, is at risk of remaining in that state if they do 
not receive the grantee's assistance, and is scheduled to become 
residents of permanent housing within 90 days; or meets one of the 
conditions listed above after exiting permanent housing within the 
previous 90 days to seek other housing that is responsive to their 
needs and preferences.
    Part 62 of 38 CFR details how the program is administered, to 
include the types of services, the application and scoring process, and 
other requirements and limitations associated with the program. This 
rulemaking amends 38 CFR 62.34, which establishes other supportive 
services that grantees may provide, which are necessary for maintaining 
independent living in permanent housing and housing stability. 
Specifically, this rulemaking will provide a more effective subsidy to 
veterans in high-cost rental markets; increase the cap on General 
Housing Assistance to reflect increased costs; and extend the ability 
of SSVF grantees to provide emergency housing for the most vulnerable, 
unsheltered veterans and their families.
    Most critically, this rulemaking amends 38 CFR 62.34(a)(8) to 
provide a more effective subsidy to veterans in high-cost rental 
markets. A more effective subsidy is considered urgent and time 
sensitive as it will significantly improve the level of rental support 
available to homeless and at-risk Veterans. These Veterans currently 
face substantial risks of eviction and potential homelessness which 
constitutes a serious and imminent risk to their health. These risks 
are now prevalent and, with the end of eviction moratoriums, cannot be 
forestalled. Delays in issuing this interim rule will delay a 
potentially life-saving intervention.

38 CFR 62.34(a)(8)

    A shallow subsidy offered recurring rental assistance at a fixed 
rate for a longer period in comparison to Rapid Rehousing. The 
expectation was that this sustained support would expand housing 
options and increase the Veteran households' ability to meet other 
costly living expenses. As a result, the SSVF Program Office embarked 
on an initiative in October 2019 to offer the Shallow Subsidy service 
in select communities.
    The provision of shallow subsidy funds was implemented under 38 CFR 
62.34(a)(8). VA is amending the fifth sentence of 38 CFR 62.34(a)(8) to 
provide a more effective subsidy to veterans in high-cost rental 
markets. We are also reorganizing current Sec.  62.34(a)(8) for 
clarity, without changing the meaning of such section.

[[Page 62483]]

    Paragraph (a) establishes the types of rental assistance that may 
be provided, such as payment of rent, penalties, or fees, to help the 
participant remain in permanent housing or obtain permanent housing. 
Paragraph (a)(8) currently states, in part, that 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 existing paragraph further 
states that the maximum amount of rental subsidy is 35 percent of the 
applicable Fair Market Rent (FMR) published by Housing and Urban 
Development (HUD).
    First, we are increasing the subsidy from 35 percent to 50 percent 
in Sec.  62.34(a)(8). We have received strong feedback from the 
community that increasing the Shallow Subsidy rate up to a maximum of 
50 percent is necessary to provide meaningful assistance to the very 
low and extremely low-income Veteran households eligible for SSVF 
services. The housing affordability gap for these households is too 
wide to be bridged with a 35 percent subsidy. The National Low Income 
Housing Coalition (``The Gap: A Shortage of Affordable Rental Homes'', 
https://reports.nlihc.org/gap/about) reports that 70 percent of all 
extremely low-income families pay more than half their income on rent 
(HUD defines affordable housing as paying no more than 30 percent of 
income on housing costs) due to the acute shortage of affordable 
housing. Increasing the subsidy to a maximum of 50 percent will bring 
more private sector housing units into the range of housing 
affordability for SSVF participants. Grantees will have the option of 
setting a subsidy rate of less than 50 percent, as 50 percent will be 
the maximum for the rental subsidy, on the condition that the subsidy 
rate set by the grantee is sufficient to sustain housing up to the 50 
percent level. As these subsidies only support rent (utilities for 
instance are not supported through this subsidy), and can be set at a 
rate of no more than 50 percent of the rent, the overall subsidy is 
still less than half of the veteran's housing costs. The term shallow 
subsidy is consistent with this approach as the veteran will still be 
responsible for most of the housing costs. This change is expected to 
promote housing stability, which is central to SSVF's mission, and will 
support VA's goal of ending homelessness among Veterans.
    We are also amending the basis for the rental subsidy for eligible 
participant families to be a maximum of 50 percent of the reasonable 
rent as defined in Sec.  62.34(a)(4). VA defines rent reasonableness in 
Sec.  62.34(a)(4) to mean the total rent charged for a unit must be 
reasonable in relation to the rents being charged during the same time 
period for comparable units in the private unassisted market and must 
not be in excess of rents being charged by the property owner during 
the same time period for comparable non-luxury unassisted units.
    The reasons for this change are several. First, VA has received 
feedback from SSVF grantees in California stating that using the FMR 
reduces the amount of subsidies payable to participants because HUD's 
FMR rental rates consistently lag behind the true rental rates in the 
market, resulting in a subsidy of less than the intended 35 percent of 
the rental rates in the market. HUD sets the FMR at the 40th percentile 
of gross rents for typical, non-substandard rental units occupied by 
recent movers in a local housing market, meaning 60 percent of units 
will have rental costs that exceed the FMR. Furthermore, HUD counts 
households who moved in within the past 15 to 22 months as recent 
movers for purposes of determining the FMR. This results in rates that 
do not include the impact of recent rental inflation. Together, these 
policies set the FMR at below market rates.
    In responding to the COVID-19 health emergency, SSVF obtained a 
modification under section 301 of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5141) to employ a 
reasonable rent standard instead of the FMR. On March 31, 2020, HUD, 
also responding to the COVID-19 health emergency, issued a waiver of 
the Continuum of Care (CoC) program regulations at 24 CFR 578.49(b)(2) 
which prohibit CoC program recipients from using CoC funds to lease 
units above the FMR. In implementing the waiver of the FMR restriction, 
CoC program recipients were still required to ensure that units leased 
with CoC funds meet the CoC program's rent reasonableness standard. HUD 
explained that its waiver of FMR restriction will ``assist recipients 
in locating additional units to house individuals and families 
experiencing homelessness and reduce the spread and harm of COVID-19.''
    VA agrees with the SSVF grantees and believes that using a 
reasonable rent would more accurately represent the rental rates by 
providing a real time measure of rent for comparable units within the 
same rental market. VA also believes that the reasonable rent standard 
should continue to apply after the COVID-19 public health emergency. In 
addition, SSVF already uses rent reasonableness for purposes of 
determining rental assistance paid by grantees to its participants 
under Sec.  62.34(a)(4) and proposes to apply that definition to Sec.  
62.34(a)(8) to support internal consistency and reduce administrative 
errors and burdens as this allows grantees to have a single standard 
for determining allowable rental assistance.

38 CFR 62.34(e)(2)

    VA is amending 38 CFR 62.34(e)(2) in order to increase the cap on 
general housing stability assistance. Paragraph (e) establishes the 
general housing stability assistance. Paragraph (e)(2) currently states 
that a grantee may pay directly to a third party (and not to a 
participant), in an amount not to exceed $1,500 per participant during 
any 2-year period, beginning on the date that the grantee first submits 
a payment to a third party for certain types of expenses. The current 
cap of $1,500 was set with the publication of Sec.  62.34(e)(2) on 
February 24, 2015. See 80 FR 9611. Due to inflation, the value of that 
cap has eroded with time.
    The Consumer Price Index for all Urban Consumers (CPI-U) is a 
measure of the average change over time in the prices paid by urban 
consumers for a variety of goods and services. It provides indexes for 
various geographic areas and price data for food, clothing, shelter, 
fuels, transportation, medical care, drugs, and other goods and 
services that people buy for day-to-day living. General housing 
stability assistance funds can be provided for some of the goods and 
services measured by the CPI-U such as uniforms, tools, kitchen 
utensils, and bedding. The CPI-U is a useful indicator of the 
increasing annual costs of these items. Between 2015 and 2021 the 
cumulative CPI-U, not corrected for compounding, was 14.4 percent. 
Assuming an annual CPI of 3 percent for 2022, and including a modest 
effect for compounding interest, we are increasing the $1,500 cap to 
$1,800 so that the purchasing power of the $1,500 cap set on February 
24, 2015 is restored. Additionally, there will be an automatic 
adjustment to this cap so that it increases annually based on the CPI-
U.

38 CFR 62.34(f)

    Currently, 38 CFR 62.34(f)(2) states that placement for a veteran 
and his or her spouse with dependent(s) in emergency housing may not 
exceed 45 days. We are amending 38 CFR 62.34(f)(2) to provide 
additional assistance to vulnerable, unsheltered homeless veteran 
families. We note that, for the purpose of this part, veteran

[[Page 62484]]

family means a veteran who is a single person or a family in which the 
head of household, or the spouse of the head of household, is a 
veteran, as defined in 38 CFR 62.2.
    Through the SSVF program, VA is seeking to engage unsheltered 
veterans who typically have higher barriers to permanent housing 
placement. VA finds that in some high rental markets, particularly when 
working with high barrier households, 45 days was insufficient time to 
complete a permanent housing placement. To that end, we are increasing 
the current 45-day limit, stated in Sec.  62.34(f)(2), to 60 days. This 
increase will provide additional time in emergency housing to the most 
vulnerable veteran population of unsheltered veterans and their 
families.

Administrative Procedure Act

    The Administrative Procedure Act (APA), codified at 5 U.S.C. 553, 
generally requires that agencies publish substantive rules in the 
Federal Register for notice and comment. These notice and comment 
requirements generally do not apply to ``a matter relating to agency 
management or personnel or to public property, loans, grants, benefits 
or contracts.'' 5 U.S.C. 553(a)(2). However, 38 U.S.C. 501(d) requires 
that VA comply with the notice and comment requirements in 5 U.S.C. 553 
for matters relating to loans, grants, or benefits, notwithstanding 
section 553(a)(2). Thus, as this rulemaking relates to the SSVF, VA is 
required to comply with the notice and comment requirements of 5 U.S.C. 
553.
    However, pursuant to section 553(b)(B) of the APA, general notice 
and the opportunity for public comment are not required with respect to 
a rulemaking when an ``agency for good cause finds (and incorporates 
the finding and a brief statement of reasons therefor in the rules 
issued) that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.''
    In addition, section 553(d) of the APA requires a 30-day delayed 
effective date following publication of a rule, except for ``(1) a 
substantive rule which grants or recognizes an exemption or relieves a 
restriction; (2) interpretative rules and statements of policy; or (3) 
as otherwise provided by the agency for good cause found and published 
with the rule.''
    In accordance with 5 U.S.C. 553(b)(B) and (d)(3), the Secretary has 
concluded that there is good cause to publish this rule without prior 
opportunity for public comment and to publish this rule with an 
immediate effective date to address the needs of service members and 
veterans who are homeless or at imminent risk of homelessness. Delay in 
the implementation of this rule would be impracticable and contrary to 
the public interest. More than 7 million adults currently live in 
households that are behind on rent payments. As of August 30, 2021, 
roughly 3.6 million individuals in the U.S. said they are ``very 
likely'' or ``somewhat likely'' to face eviction in the next two 
months, according to the U.S. Census Bureau's Household Pulse Survey. 
(https://www.census.gov/data/tables/2021/demo/hhp/hhp36.html). As seven 
percent of the population are veterans, this could mean nearly half a 
million veterans and their family members face eviction with tens of 
thousands becoming homeless. Earlier Centers for Disease Control and 
Prevention (CDC) eviction moratoriums established to ameliorate this 
risk are no longer in effect. The results for those facing eviction and 
potential homelessness include serious and imminent risks to their 
health. The CDC reports, homelessness is closely connected to declines 
in physical and mental health; homeless persons experience high rates 
of health problems such as HIV infection, alcohol and drug abuse, 
mental illness, tuberculosis, and other conditions (https://www.cdc.gov/phlp/publications/topic/resources/resources-homelessness.html). Additionally, the CDC reports, ``people 
experiencing homelessness are disproportionately affected by COVID-
19.'' ``Homeless services are often provided in congregate (group) 
settings, which could make the spread of infection easier. Because many 
people experiencing homelessness are older adults or have underlying 
medical conditions, they may also be at increased risk for severe 
illness from COVID-19.'' (https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/homelessness.html). These risks are now 
prevalent and, with the end of eviction moratoriums, cannot be 
forestalled. Delays in issuing this interim rule will delay a 
potentially life-saving intervention.
    On September 4, 2020, the CDC and the Department of Health and 
Human Services (HHS) published an Order under Section 361 of the Public 
Health Service Act to temporarily halt residential evictions to prevent 
the further spread of COVID-19. 85 FR 55292. This Order was effective 
from September 4, 2020, through December 31, 2020, and was extended 
until July 31, 2021. 86 FR 34010. On August 3, 2021, CDC issued a 
subsequent, more narrowly tailored eviction order to temporarily halt 
evictions in United States counties experiencing substantial or high 
rates of community transmission of COVID-19. 86 FR 43244. The order was 
then challenged in the DC district court, which vacated the order on a 
nationwide basis, but stayed its judgment pending appeal. The Supreme 
Court then vacated the district court's stay, effectively ending the 
moratorium order. See Ala. Ass'n of Realtors v. Dep't of Health and 
Human Servs., 594 U.S. (2021).
    The Secretary's decision to increase the subsidy in Sec.  
62.64(a)(8) from 35% to 50% requires immediate effect to ensure rental 
supports are immediately available to very low-income veterans at-risk 
of becoming homeless, particularly given that the COVID-19 pandemic, 
with its sustained adverse economic consequences, may have reduced or 
limited their personal resources.
    The U.S. Department of Treasury's Emergency Rental Assistance 
Program (EARP) primarily pays rental arrears; financial assistance for 
prospective rent payments is limited. Unlike the rental subsidy 
proposed by this regulation, ERAP would not make rent more affordable. 
The increased subsidy would be provided in addition to the ERAP funds. 
Other state and local resources to assist veterans with rent, outside 
those that are federally supported such as ERAP, are very limited and 
not available or insufficient in most areas of the country. Many 
veterans and grantees report it has been difficult to access these 
resources. By making rent affordable, the rental subsidy proposed by 
this regulation allows veteran families to sustain their housing, 
giving landlords less cause to proceed with evictions.
    Furthermore, widespread reports of soaring rental prices (``Rent 
Prices Are Soaring as Americans Flock Back to Cities'' Washington Post, 
July 10, 2021) will leave many veteran families at-risk even if rent 
arrears stemming from the COVID-19 induced economic crisis have been 
paid by programs such as SSVF or ERAP. The low-income families served 
by SSVF will need the elevated levels of support to address the growing 
gap between their income and rental costs. The risk of becoming 
homeless will become particularly acute for many low-income families 
now that the CDC eviction moratorium is no longer in effect. Although 
eviction moratoriums remain in effect in a few states and 
municipalities, these policy responses are temporary and do not provide 
a permanent solution for protecting the vast majority of at-risk 
veterans who continue to face eviction

[[Page 62485]]

and potential homelessness. Furthermore, eviction moratoriums do not 
address the underlying issue of rent affordability that will continue 
to place these veteran households at risk once these moratoriums end.
    SSVF has used the modification obtained under 42 U.S.C. 5141 for 
COVID-19 to increase the resources available through the rental subsidy 
that is made available in Sec.  62.34(a)(8). This has allowed SSVF to 
use ``rent reasonableness'' as the basis for the rental subsidy, rather 
than the FMR. While this effect only modestly increases the level of 
rental subsidy, it remains an important change and needs to continue 
even once the public health emergency ends.
    For these reasons, the Secretary has concluded that ordinary notice 
and comment procedures would be impracticable and contrary to the 
public interest as delay will have significant negative health 
consequences to homeless and at-risk veterans and is accordingly 
issuing this rule as an interim final rule. However, the Secretary will 
consider and address comments that are received within 60 days after 
the date that this interim final rule is published in the Federal 
Register and address them in a subsequent Federal Register document 
announcing a final rule incorporating any changes made in response to 
the public comments.

Paperwork Reduction Act

    This interim final 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 interim final 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. This interim final rule will only impact those entities 
that choose to participate in the SSVF Program. Small entity applicants 
will not be affected to a greater extent than large entity applicants. 
Small entities must elect to participate, and it is considered a 
benefit to those who choose to apply. Therefore, pursuant to 5 U.S.C. 
605(b), the initial and final regulatory flexibility analysis 
requirements of 5 U.S.C. 603 and 604 do not apply.

Executive Orders 12866 and 13563

    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. 
The Office of Information and Regulatory Affairs has determined that 
this rule is an economically significant regulatory action under 
Executive Order 12866. VA has determined that there are costs and 
transfers associated with the provisions of this rulemaking. The costs 
for Sec.  62.34(a)(8) are estimated to be between a lower bound of 
$204.2M in FY2022 and $895M over a five-year period (FY2022-FY2026) and 
an upper bound of $291.8M in FY2022 and $1.65B over a five-year period. 
The costs for 62.34(e)(2) are estimated to be $720,000 in FY2022 and 
$3.8M over a five-year period.
    The full Regulatory Impact Analysis associated with this rulemaking 
can be found as a supporting document at www.regulations.gov.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in 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 interim final rule will 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.

Congressional Review Act

    The Office of Information and Regulatory Affairs in the Office of 
Management and Budget has determined that this regulatory action is a 
major rule under Subtitle E of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (also known as the Congressional 
Review Act), 5 U.S.C. 801-808, because it may result in an annual 
effect on the economy of $100 million or more. 5 U.S.C. 804(2). In 
accordance with 5 U.S.C. 801(a)(1), VA will submit to the Comptroller 
General and to Congress a copy of this Regulation and the Regulatory 
Impact Analysis (RIA) associated with the Regulation. However, for the 
reasons explained above, VA has found that there is good cause to 
publish this rule with an immediate effective date, pursuant to 5 
U.S.C. 808(2).

List of Subjects in 38 CFR Part 62

    Administrative practice and procedure, Day care, Disability 
benefits, Government contracts, Grant programs--health, Grants--housing 
and community development, Grant programs--veterans, Health care, 
Homeless, Housing, Indian--lands, Individuals with disabilities, Low 
and moderate income housing, Manpower training program, Medicaid, 
Medicare, 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

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on August 26, 2021, 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.

Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.

    For the reasons set forth in the preamble, we are amending 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.

0
2. Amend Sec.  62.34 by revising paragraphs (a)(8), (e)(2) introductory 
text, and (f)(2) 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 as follows:

[[Page 62486]]

    (i) For a 2-year period without recertification.
    (ii) 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.
    (iii) The maximum amount of this rental subsidy is 50 percent of 
reasonable rent as defined by paragraph (a)(4) of this section. 
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.
    (iv) Grantees must provide a letter of support from their local CoC 
to the Supportive Services for Veteran Families (SSVF) Program Office 
when requesting VA approval of this subsidy. The SSVF Program Office 
must approve all subsidy requests before the subsidy is used.
    (v) Very low-income veteran 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 
paragraph (a)(1) of this section.
    (vi) Extremely low-income veteran families may receive this subsidy 
for up to a 2-year period before recertification following receipt of 
rental assistance under paragraph (a)(1) of this section.
    (vii) For any month, the total rental payments provided to a family 
under this paragraph (a)(8) 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.
    (viii) 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) of this section and this subsidy, may continue to 
receive rental payments under this section, but would require 
recertification at that time and once every two years.
* * * * *
    (e) * * *
    (2) A grantee may pay directly to a third party (and not to a 
participant), in an amount not to exceed $1,800, per participant during 
any 2-year period, beginning on the date that the grantee first submits 
a payment to a third party. This cap will be adjusted annually based on 
the Consumer Price Index for all Urban Consumers (CPI-U). This amount 
is for the following types of expenses:
* * * * *
    (f) * * *
    (2) Placement for a veteran and his or her spouse with dependent(s) 
may not exceed 60 days.
* * * * *
[FR Doc. 2021-24496 Filed 11-9-21; 8:45 am]
BILLING CODE 8320-01-P