Section 8 Housing Choice Vouchers: Revised Implementation of the HUD-Veterans Affairs Supportive Housing Program, 65769-65779 [2024-17957]

Agencies

• DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Federal Register Volume 89, Number 156 (Tuesday, August 13, 2024)]
[Rules and Regulations]
[Pages 65769-65779]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17957]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 982 and 983

[Docket No. FR-6476-N-01]


Section 8 Housing Choice Vouchers: Revised Implementation of the 
HUD-Veterans Affairs 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 tenant-based and project-based Section 8 Housing 
Choice Voucher (HCV) rental assistance under the Department of Housing 
and Urban Development-Veterans Affairs Supportive Housing (HUD-VASH) 
program administered by local public housing agencies (PHAs) that have 
partnered with local Veterans Affairs (VA) medical facilities or other 
entities as designated by the Secretary of the VA. This notice includes 
new waivers and program flexibilities as well as additional general 
guidance. This notice also incorporates updated policy based on further 
implementation of the Housing Opportunity Through Modernization Act of 
2016 (HOTMA).

DATES: Applicability date: August 13, 2024.

FOR FURTHER INFORMATION CONTACT: Ryan Jones, Director, Housing Voucher 
Management and Operations Division, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 4216, Washington, DC 20410, 
telephone number (202) 708-0477. (This is not a toll-free number.) HUD 
welcomes and is prepared to receive calls from individuals who are deaf 
or hard of hearing, as well as individuals with speech or communication 
disabilities. To learn more about how to

[[Page 65770]]

make an accessible telephone call, please visit: https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.

Table of Contents

I. Background
II. Special Rules for the HUD-VASH Voucher Program
    a. Family Eligibility, Selection, and Documentation
    b. Income and Asset Eligibility
    c. Initial Term of the HCV
    d. Initial Lease Term
    e. Eligible Housing
    f. Mobility and Portability of HUD-VASH Vouchers
    g. Case Management and Supportive Services
    h. Termination of Assistance
    i. Turnover of HUD-VASH Vouchers
    j. Moving to Work (MTW) Agencies
    k. HUD-VASH PBV
    l. Section Eight Management Assessment Program (SEMAP)
    m. Reallocation of HUD-VASH Vouchers
    n. Inspections
    o. Exception Payment Standards
    p. Special Housing Types
    q. Minimum Rents
III. Reporting Requirements

I. Background

A. Reasons for Changes and Process of Development

    Through the HUD-VASH program, HUD and VA increase access to 
affordable housing for homeless veterans and provide the support 
necessary to obtain and maintain permanent housing in the community. 
Since 2008, HCV program funding has provided rental assistance under a 
supportive housing program for homeless veterans authorized by section 
8(o)(19) of the United States Housing Act of 1937, 42 U.S.C. 
1437f(o)(19). The HUD-VASH program combines HUD HCV rental assistance 
for homeless veterans administered by PHAs with case management and 
supportive services provided through VA. VA may provide these services 
directly through VA medical facilities or through a DSP approved by the 
VA Secretary. PHAs may be approved to act as DSPs but only in a limited 
capacity to do initial intake and provide temporary case management of 
HUD-VASH veterans until they are referred to the VA medical facility or 
DSP that will provide ongoing services. For simplicity, this document 
will generally refer to the combination of VA and DSPs as ``VA''.
    Based on a review of existing permanent supportive housing (PSH) 
models, typical acuity levels of veterans in the program, and the 
availability of providers within VA medical facilities and in the 
community who can augment care provided by HUD-VASH case managers, the 
Secretaries of HUD and VA jointly determined that the appropriate 
caseload ratio in HUD-VASH is a weighted average of 25 veterans per 
case manager. It is important to note that actual caseload sizes can 
vary considerably, based primarily on the needs of the veterans being 
served. Veterans in HUD-VASH are weighted based on their stage in the 
program, with higher weightings applied to veterans in more intensive 
stages of the program, and lower weightings applied to those who have 
stabilized. These weightings and target caseload ratio ensure that all 
veterans in receipt of a HUD-VASH voucher are seen as needed by their 
case manager.
    The current HUD-VASH program was further authorized pursuant to 
Division K, Title II of The Consolidated Appropriations Act, 2008 (Pub. 
L. 110-161) (``2008 Appropriation Act'') enacted on December 26, 2007 
(see proviso (7) under the heading ``Tenant-Based Rental Assistance''). 
All Congressional Appropriations Acts since 2008 have continued to 
authorize this program. Therefore, the implementation requirements will 
remain in effect until the HUD-VASH program is no longer authorized by 
Congress or the authorization requirements change.
    The Appropriations Acts have required HUD to ``make such funding 
available, notwithstanding section 203 (competition provision) of this 
title, to PHAs that partner with eligible VA Medical Centers or other 
entities as designated by the Secretary of the VA, based on 
geographical need for such assistance as identified by the Secretary of 
the VA, PHA administrative performance, and other factors as specified 
by the Secretary of HUD in consultation with the Secretary of the 
Department of the VA.''
    Based on this language, the allocation of HUD-VASH vouchers has 
been a collaborative, data-driven effort conducted by HUD and the VA. 
The HUD-VASH allocation formula relies on several pieces of data which 
include HUD's point-in-time data submitted by Continuums of Care (CoC) 
and VA data on contacts with homeless veterans. PHA and VA performance 
is also taken into consideration.
    Additional information on program requirements and procedures may 
be found on the HUD-VASH website at https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/vash.

B. Summary of Changes

    The new flexibilities and requirements include: (1) new flexibility 
around verifying social security number (SSN) based on HOTMA updates 
(section II.a.); (2) new requirement for PHAs to serve veterans up to 
the low income limit (i.e., 80% area median income (AMI)) in the HUD-
VASH program (section II.b); (3) new requirement to exclude VA 
disability income to determine initial eligibility (section II.b); (4) 
new requirement for PHAs to accept self-certification of assets under 
$50,000 as established in HOTMA and allow self-certification of zero-
income (section II.b); (5) new authorization for PHAs to apply 
reasonable accommodation exception payment standards for HUD-VASH 
families without additional HUD approval (section II.o.); (6) new 
flexibility to allow noncompetitive selection of one or more PBV 
projects where all units in the project(s) are made exclusively 
available to HUD-VASH families on the site of a VA facility (section 
II.k.); new flexibility allowing admittance of zero-HAP families for 
HUD-VASH PBV (section II.k.); and (7) new flexibility to allow PHAs to 
set a lower minimum rent (including a minimum rent of $0) specifically 
for their HUD-VASH program (section II.q.).
    Updates made to existing requirements include: (1) updates to 
description and requirements for designated service providers (DSPs) 
and PHAs as DSPs (section II.a); (2) clarification on applicability of 
initial search term (section II.c); (3) explanation that HUD-VASH 
families are not be subject to rescreening when porting (section 
II.f.); (4) additional explanation regarding the application of HUD-
VASH waivers and flexibilities to HUD-VASH PBV (section II.k); (5) 
additional explanation of HUD-VASH PBV exceptions under HOTMA (section 
II.k.); (6) explanation that when a HUD-VASH family is eligible to move 
or required to move from its PBV unit, the family must be able to move 
with a HUD-VASH tenant-based voucher (section II.k.); (7) updated 
explanation of the HUD-VASH reallocation process through voluntary 
moves between PHAs and voucher recapture for future reallocation 
(section II.m.); and (8) update to allow pre-inspection of units up to 
90 days before the Request for Tenancy Approval (section II.n.).

II. Special Rules for the HUD-VASH Voucher Program

    This section sets forth the design features of the HUD-VASH 
program, including family eligibility and selection, income 
eligibility, portability, case management, and the turnover of these 
vouchers. This document replaces

[[Page 65771]]

the special rules published in the Federal Register on September 27, 
2021 (86 FR 53207). The FY 2008-2024 Appropriations Acts stated ``that 
the Secretary of HUD (in consultation with the Secretary of the VA) may 
waive, or specify alternative requirements for any provision of any 
statute or regulation that the Secretary of HUD administers in 
connection with the use of funds made available under this paragraph 
(except for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment) upon a finding by the Secretary 
that any such waivers or alternative requirements are necessary for the 
effective delivery and administration of such voucher assistance: 
Provided further, that assistance made available under this paragraph 
shall continue to remain available for homeless veterans upon 
turnover.''
    This notice outlines below the waivers or alternative requirements 
determined by the Secretary to be necessary for the effective delivery 
and administration of the HUD-VASH program. These waivers or 
alternative requirements are exceptions to the normal HCV requirements, 
which otherwise govern the provision of HUD-VASH assistance. In 
addition, a PHA may request additional good cause regulatory waivers. 
These requests may be submitted to the Secretary for review and 
decision through the Assistant Secretary for Public and Indian Housing 
(PIH) through the regular PIH waiver process.
    HUD-VASH vouchers under this part are administered in accordance 
with the tenant-based HCV and PBV program regulations set forth at 24 
Code of Federal Regulations (CFR) parts 982 and 983, respectively. In 
both programs, the PHA pays monthly rental subsidies so that eligible 
families can afford decent, safe, and sanitary housing. HUD provides 
housing assistance funds to the PHA, as well as funds for PHA 
administration of the program.
    Under the HCV program, families select and rent units that meet 
program housing quality standards (HQS). If the PHA approves a family's 
unit and tenancy, the PHA contracts with the property owner to make 
rent subsidy payments (housing assistance payments) directly to the 
owner on behalf of the family on a monthly basis. The family enters 
into a lease with the owner and pays its share of the rent to the owner 
in accordance with the lease. Under the HCV tenant-based voucher 
program, the housing assistance payments (HAP) contract between the PHA 
and the owner covers only a single unit and a specific assisted family. 
If the family moves out of the leased unit, the HAP contract with the 
owner terminates. The family may generally move to another unit with 
continued assistance so long as the family is complying with program 
requirements.
    Under the PBV program, families occupy units under a PBV HAP 
contract. Generally, there are multiple units under the PBV HAP 
contract. In many cases supportive services are provided on-site. All 
of the PBV requirements in 24 CFR part 983 apply except where waived as 
described below.
    Unless expressly noted below, all regulatory requirements and HUD 
directives regarding the HCV tenant-based voucher and PBV programs are 
applicable to HUD-VASH vouchers, including the use of all HUD-required 
contracts and other forms. The PHA's local discretionary policies 
adopted in the PHA's written administrative plan apply to HUD-VASH 
vouchers unless such local policy conflicts with the requirements of 
the HUD-VASH vouchers outlined below, in which case the requirements in 
this document supersede the administrative plan.
    PHAs are required to maintain records that allow for the easy 
identification of families receiving HUD-VASH vouchers. PHAs must 
identify these families in the Information Management System/PIH 
Information Center (IMS/PIC), or any successor system. This record-
keeping will help ensure that, in accordance with appropriations 
renewal language, HUD-VASH vouchers that are in use will remain 
available for homeless veterans upon turnover.
    The alternative requirements established in this Notice apply to 
all PHAs that administer HUD-VASH vouchers, including those that have 
not received an allocation of HUD-VASH vouchers, but administer these 
vouchers as a receiving PHA under the portability feature of the HCV 
program.
    A Finding of No Significant Impact (FONSI) with respect to the 
environment has been made in accordance with HUD regulations in 24 CFR 
part 50 that implement section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available for 
public inspection between the hours of 8 a.m. and 5 p.m. weekdays in 
the Regulations Division, Office of General Counsel, Room 10276, 
Department of Housing and Urban Development, 451 Seventh Street SW, 
Washington, DC 20410-0500. The FONSI is also available through the 
Federal eRulemaking Portal at https://www.regulations.gov.

A. Family Eligibility, Selection, and Documentation

    HUD-VASH eligible families are homeless veterans and their 
families. The Appropriations Acts have provided for statutory or 
regulatory waivers or alternative requirements upon a finding by the 
Secretary that such waivers or alternatives are necessary for the 
effective administration and delivery of voucher assistance (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment). The December 17, 2007, Explanatory 
Statement for the 2008 Appropriation Act provides, ``The Appropriations 
Committees expect that these vouchers will be made available to all 
homeless veterans, including recently returning veterans.'' (153 Cong. 
Rec. H16514 (daily ed., Dec. 17, 2007)).\1\ Section 8(o)(19) of the 
United States Housing Act of 1937 (USHA of 1937), which requires 
homeless veterans to have chronic mental illnesses or chronic substance 
use disorders with required treatment of these disorders as a condition 
of receipt of HUD-VASH assistance, is waived.
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    \1\ https://www.congress.gov/crec/2007/12/17/CREC-2007-12-17-pt3-PgH16381.pdf.
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    By agreeing to administer the HUD-VASH program, the PHA is 
relinquishing its authority to determine the eligibility of families in 
accordance with regular HCV program rules and PHA policies with the 
exceptions of income eligibility and lifetime sex offender status. 
Specifically, under the HUD-VASH program, PHAs will not have the 
authority to screen any potentially eligible family members or deny 
assistance for any grounds permitted under 24 CFR 982.552 (broad denial 
for violations of HCV program requirements) and 982.553 (specific 
denial for criminal activity and alcohol abusers), with one exception. 
PHAs will still be required to prohibit admission if any member of the 
household is subject to a lifetime registration requirement under a 
State sex offender registration program. However, unless the family 
member that is subject to lifetime registration under a State sex 
offender registration program is the homeless veteran (which would 
result in denial of admission for the family), the remaining family 
member(s) may be served if the family agrees to remove the sex offender 
from its family composition. Accordingly, HUD is exercising its 
authority to waive 42 U.S.C. 1437d(s), 42 U.S.C. 13661(a), (b), and 
(c), and 24 CFR 982.552 and 982.553 both in regard to denial of 
admission, with the exception of 982.553(a)(2)(i), which

[[Page 65772]]

requires denial of admission to certain registered sex offenders, and 
with the exceptions of 982.552(c)(2)(v) and 982.553(e), which contain 
the fair housing and equal opportunity provisions and protections for 
victims of domestic violence, dating violence, sexual assault, and 
stalking. These provisions also apply to PBV assistance.
    Eligibility determination and veteran selection is done by the VA, 
as described later in this section. HUD-VASH eligible families are 
referred to the partnering PHA for the issuance of a voucher or 
selection for a PBV unit. As stated above, the PHA must accept these 
referrals. Written documentation of these referrals must be maintained 
in the tenant file at the PHA.
    PHAs are not authorized to maintain a waiting list or apply local 
preferences for the HUD-VASH program. Instead, VA refers HUD-VASH 
eligible families to the PHA for the issuance of a HUD-VASH voucher or 
identification of a PBV unit that is exclusively made available to HUD-
VASH families. If a HUD-VASH-eligible family is referred and there is 
an available PBV unit that is not exclusively made available to HUD-
VASH families, the PHA may also offer to refer the family to the owner 
for occupancy of that unit if allowable under the selection policy 
applicable to that project, and the owner and PHA may amend the PBV HAP 
contract to designate the PBV unit as a HUD-VASH PBV unit. Accordingly, 
sections 8(o)(6)(A) and (B) and 8(o)(13)(J) of the USHA of 1937, 42 
U.S.C. 1437f(o)(6)(A) and (B) and (o)(13)(J), in regard to preferences, 
has been waived to provide for the effective administration of the 
program. In addition, provisions relating to applicant selection from 
the waiting list and local preferences of 24 CFR 982.202, 982.204, 
982.207, and 983.251 are also waived. Note that 24 CFR 983.251(a)(4), 
which disallows renting to relatives except when it may be necessary as 
a reasonable accommodation, is not waived. Note that 24 CFR 
982.202(b)(3) (Family characteristics), 24 CFR 982.202(d) (Admission 
policy), and 24 CFR 983.251(a)(3) (protections for survivors of 
domestic violence, dating violence, sexual assault, or stalking covered 
by part 5, subpart L apply to admission to the PBV program) continue to 
apply. 24 CFR 982.203, 982.205, and 982.206 regarding special 
admissions, cross-listing of the waiting list, and opening and closing 
the waiting list do not apply to the HUD-VASH program.
    The VA may approve a PHA with unleased HUD-VASH vouchers as a DSP 
for the purposes of veteran selection and intake. This PHA-specific DSP 
authority allows a PHA to issue a HUD-VASH voucher to a veteran without 
a referral from the VA. The PHA is responsible for determining, through 
processes agreed upon with the partnering VA medical facility, that the 
veteran meets the VA program participant requirements established by 
the VA national office. The determination of whether an individual 
qualifies as a veteran for the purposes of a HUD-VASH voucher is made 
by the VA medical facility. The PHA must refer the veteran to the VA 
for case management and must provide temporary case management (not to 
exceed 180 days) until the VA has completed intake of the veteran. At 
present, PHAs may not use HCV administrative fees for case management. 
Further guidance will be provided on the provision of case management 
by the PHA as the DSP.
    PHAs approved as DSPs under this authority must also ensure that 
while using unleased HUD-VASH vouchers, they maintain sufficient HUD-
VASH vouchers available to immediately issue a HUD-VASH voucher to 
veterans referred by the VA. Guidance on the requirements for a PHA to 
be approved and additional details on the application process are 
available on VA's HUD-VASH website at https://www.va.gov/HOMELESS/HUD-VASH_Designated-Service-Providers.asp and may be periodically updated.
    In regard to verifying SSN for homeless veterans and their family 
members, PHAs must follow the SSN verification hierarchy. PHAs must use 
available flexibilities in accordance with 24 CFR 5.216(g)(1)(iii) to 
accept self-certification of SSN and at least one third-party document, 
such as a bank statement, utility or cell phone bill, or benefit letter 
that contains the name of the individual in the absence of other 
documentation. For the homeless veteran, the third-party document could 
be the VA-issued photo ID or document with the veteran's name. If 
verifying an individual's SSN using this method, the PHA must document 
why the other SSN documentation was not available. In the case of the 
homeless veteran, the PHA must accept the Certificate of Release or 
Discharge from Active Duty (DD 214) or the VA-verified Application for 
Health Benefits (10-10EZ) as verification of SSN if these forms are 
available; however, these forms are not required to verify SSN. These 
documents must also be accepted for proof of age purposes. Please note 
that veterans are also issued photo identification cards by the VA and 
these cards must be accepted by the PHA in lieu of another type of 
government-issued photo identification.
    When adding a family member after the HUD-VASH family is admitted 
to the program, the rules of 24 CFR 982.551(h)(2) apply. Other than the 
birth, adoption or court-awarded custody of a child, the PHA must 
approve additional family members and may apply its regular screening 
criteria in doing so.
    Civil rights requirements cannot be waived. The HUD-VASH program is 
administered in accordance with applicable civil rights and fair 
housing requirements. These include applicable authorities under 24 CFR 
5.105(a) and 24 CFR 982.53 including, but not limited to, the Fair 
Housing Act, Section 504 of the Rehabilitation Act of 1973, Title VI of 
the Civil Rights Act of 1964, the Age Discrimination Act, the Americans 
with Disabilities Act, and HUD's Equal Access Rule.\2\
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    \2\ See 24 CFR 5.105(a); See also https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_rights_and_obligations.
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    When HUD-VASH applicants or recipients include veterans with 
disabilities or family members with disabilities, HUD's reasonable 
accommodation requirements apply. These standards require PHAs to make 
a reasonable adjustment to rules, policies, practices, and procedures 
when it may be necessary in order to enable an applicant or resident 
with a disability to have an equal opportunity to use and enjoy a 
dwelling, the common areas of a dwelling, or participate in or access a 
recipient's programs and activities. These standards extend to various 
aspects of program implementation, including, for example, denial or 
termination of assistance, initial search term of the HCV, initial 
lease term, and informal reviews and hearings. Under the PBV program, 
this also includes providing structural changes to a unit or public or 
common use area when they may be needed as a reasonable accommodation 
for an applicant or participant or their household members with a 
disability. Other obligations include, for example, effective 
communication with persons with disabilities, physical accessibility 
requirements, and overall nondiscrimination in the administration of 
the program.

B. Income and Asset Eligibility

    The PHA must determine income and asset eligibility for HUD-VASH 
families in accordance with 24 CFR 982.201 and 24 CFR 5.618. Income 
targeting requirements of section 16(b) of the USHA of 1937, as well as 
24 CFR 982.201(b)(2), do not apply for HUD-VASH families so that 
participating

[[Page 65773]]

PHAs can effectively serve the eligible population specified in the 
Appropriations Acts; that is, homeless veterans, who may be at a 
variety of income levels, including low-income. In addition, PHAs must 
serve all income eligible veterans, including low-income veterans (up 
to 80% AMI) in HUD-VASH. HUD is exercising its authority to waive 24 
CFR 982.201(b)(iii) to provide that, for HUD-VASH, low-income families 
are eligible for assistance and PHAs may not condition this eligibility 
based on ``additional eligibility criteria'' specified in its 
administrative plan.
    Under Section 3(b) of the USHA of 1937, the definition of income 
specifically excludes ``deferred disability benefits from the 
Department of Veterans Affairs that are received in a lump sum amount 
or in prospective monthly amounts'' and ``any expenses related to aid 
and attendance under section 1521 of title 38, United States Code, to 
veterans who are in need of regular aid and attendance.'' All other VA 
service-connected benefits are included in determining income 
eligibility for the HCV program. For a very small percentage of 
homeless veterans, the amount of VA service-connected benefits received 
due to the severity of their disabilities results in the veteran being 
over the low-income limit.
    In order to ensure that homeless veterans are not excluded from 
participation in the HUD-VASH program because of their VA service-
connected disability benefits, particularly with respect to the 
opportunity to reside in HUD-VASH PBV projects located on the site of a 
VA facility or where HUD-VASH supportive services are provided on-site 
at the project, HUD is exercising its waiver authority and establishing 
alternative requirements for purposes of determining income eligibility 
for HUD-VASH. For HUD-VASH applicants receiving VA service-connected 
disability benefits, HUD is waiving section 3(b) of the USHA of 1937, 
which applies for purposes of determinations of lower income family 
eligibility based on median income under the USHA of 1937, including 
Section 8 programs, as well as 24 CFR 5.609(a)(1), which provides that 
annual income includes all amounts not specifically excluded in 
paragraph (b) of Sec.  5.609.
    As an alternative requirement, the PHA must determine the 
applicant's annual income for purposes of income eligibility by 
excluding all VA service-connected benefits received by the HUD-VASH 
applicant in addition to the income exclusions listed under 24 CFR 
5.609(b). This special income exclusion only applies to the definition 
of annual income for purposes of determining income eligibility. If the 
HUD-VASH applicant now qualifies as a low-income family under this 
alternative requirement, the VA service-connected benefits (with the 
exception of the normally excluded deferred VA disability payments 
under 24 CFR 5.609(b)(16) and the payments related to aid and 
attendance under 24 CFR 5.609(b)(17)) must still be included as annual 
income when calculating the family's adjusted income under 24 CFR 
5.611. In other words, the VA service-connected disability benefits are 
excluded for purposes of determining income eligibility but included 
for purposes of calculating the total tenant payment (TTP), housing 
assistance payment, and family share.
    Because there needs to be a monthly housing assistance payment 
(HAP) in order to enter into a HAP contract on behalf of a tenant-based 
voucher family, the utilization of tenant-based HUD-VASH assistance by 
families determined income eligible under this waiver and alternative 
requirement will be limited to those areas where the family's (TTP) 
(see 24 CFR 5.628) is less than the applicable payment standard or 
exception payment standard (including any HUD-VASH specific exception 
payment standard established by the PHA in accordance with section II.o 
below). The family would also need to select a unit with a gross rent 
that is above the family TTP in order to lease a unit with the tenant-
based HUD-VASH voucher.
    Under the PBV program, the PHA may select an occupied unit to be 
included under a PBV HAP Contract only if the unit's occupants are 
eligible for assistance under 24 CFR 982.201 and the TTP for the family 
must be less than the gross rent for the unit, such that the unit will 
be eligible for a monthly HAP (24 CFR 983.52(c)). In addition, in 
selecting a family for an available PBV unit, the PHA must determine 
the TTP for the family is less than the gross rent, meaning that the 
unit will be eligible for a monthly HAP (24 CFR 983.251(a)(2)). 
However, under section II.k below, HUD is providing a waiver and 
alternative requirement where the PHA may opt to select an occupied 
unit or admit a family to a unit if such unit is made exclusively 
available to HUD-VASH families if the PBV project is either on the 
grounds of a VA facility or there are HUD-VASH supportive services 
provided on-site at the project. Please see section II.k regarding this 
PBV zero-HAP option for PHAs.
    The PHA may choose to include the admission of extremely low-income 
HUD-VASH families in its income targeting numbers for the fiscal year 
in which these families are admitted. In conformance with normal 
program rules, PHAs may not deny admission to a family with zero 
income. When the veteran family reports that they have zero income, the 
PHA must accept a self-certification of zero income from the family at 
admission and at reexamination without taking any additional steps to 
require that the family verify zero reported income. The self-
certification does not need to be notarized. The PHA must verify 
families' income in the Enterprise Income Verification (EIV) System 
within 120 days after admission.
    In determining compliance with the asset limitation at 24 CFR 5.618 
at admission, for the HUD-VASH program, PHAs must accept a self-
certification by the family that the family's total assets are equal to 
or less than $50,000, adjusted annually for inflation, and that the 
family does not have any present ownership interest in real property, 
without taking additional steps to verify the accuracy of the 
declaration. The PHA may accept a self-certification of net family 
assets at reexamination but must fully verify the family's assets every 
three years. For net family assets exceeding $50,000, adjusted annually 
for inflation, the PHA must fully verify the family's assets as 
required for all HCV families.
    PHAs must not enforce the asset limitation for HUD-VASH families at 
reexamination.

C. Initial Search Term of the Voucher

    Recognizing the challenges that HUD-VASH participants may face with 
their housing search, HUD-VASH vouchers must have an initial search 
term of at least 120 days. This applies to the search term at both 
initial issuance and moves with assistance. Therefore, 24 CFR 
982.303(a), which states that the initial search term must be at least 
60 days, shall not apply, since the initial term must be at least 120 
days. Any extensions, suspensions, and progress reports will remain 
under the policies in the PHA's administrative plan but will apply 
after the minimum 120-day initial search term. PHAs are encouraged to 
use flexibility allowing for needed extensions of search terms. 
Extensions may also be needed as a reasonable accommodation for a 
household with a member with a disability, such as for example, due to 
the difficulty in finding a unit that meets one's disability-related 
needs, e.g., physically accessible unit,

[[Page 65774]]

unit near accessible transportation, unit near medical or other 
facilities.

D. Initial Lease Term

    Under the HCV tenant-based voucher program, voucher participants 
must enter into an initial lease with the owner for at least one year, 
unless a shorter term would improve housing opportunities for the 
tenant and the shorter term is a prevailing market practice. To provide 
a greater range of housing opportunities for HUD-VASH voucher holders, 
initial leases may be less than 12 months; therefore, both section 
8(o)(7)(A) of the USHA of 1937, 42 U.S.C. 1437f(o)(7)(A), and 24 CFR 
982.309(a)(2)(ii) are waived to allow a term less than one year, 
without regard to the PHA independently determining that a shorter term 
would improve housing opportunities and that a shorter term is the 
prevailing market practice. Note that this waiver does not apply to 
PBVs.

E. Eligible Housing

    24 CFR 982.352(a)(5) and 983.52(a)(2) prohibit assistance for units 
on the physical grounds of a medical, mental, or similar public or 
private institution. HUD is waiving these prohibitions for the limited 
purpose of allowing assistance on the grounds of a VA facility for both 
HCV tenant-based vouchers for HUD-VASH families and all PBV units made 
exclusively available for HUD-VASH families.

F. Mobility and Portability of HUD-VASH Vouchers

    An eligible family issued a HUD-VASH voucher must receive required 
case management services provided by the partnering VA medical 
facility. Therefore, special mobility and portability procedures must 
be established. HUD-VASH participant families may reside only in those 
jurisdictional areas that are accessible to case management services as 
determined by the VA medical facility.
    Since the VA will be identifying homeless veterans eligible to 
participate in the HUD-VASH program, section 8(r)(1)(B)(i) of the USHA 
of 1937, 42 U.S.C. 1437f(r)(1)(B)(i), which restricts portability in 
cases where the family did not reside in the jurisdiction of the PHA at 
the time of application for HCV assistance, and 24 CFR 982.353(a), (b), 
and (c), which affects where a family can lease a unit with HCV 
assistance, do not apply. A family that moves under the portability 
procedures must not be subject to rescreening by the receiving PHA. HUD 
may publish PIH notices from time to time to further explain 
portability requirements under the HUD-VASH program. In all porting 
scenarios, with the exception of victims of domestic violence, dating 
violence, sexual assault, and stalking, the PHA must consult with the 
VA prior to approving the port.
1. Portability Moves Within Same Catchment Area (or Area of Operation) 
Where Case Management Is Provided by the Initial PHA's Partnering VA 
Medical Facility
    If the family initially leases up, or moves, under portability 
provisions, but the initial PHA's partnering VA medical facility will 
still be able to provide the necessary case management services due to 
the family's proximity to the partnering VA medical facility, the 
receiving PHA must process the move in accordance with the portability 
procedures of 24 CFR 982.355. However, since the initial PHA must 
maintain records on all HUD-VASH families receiving case management 
services from its partnering VA medical facility, receiving PHAs 
without a HUD-VASH program must bill the initial PHA. Therefore, 24 CFR 
982.355(d), which gives the receiving PHA the option to absorb the 
family into its own HCV program or bill the initial PHA, is not 
applicable.
2. Portability Moves Within Same Catchment Area Where Both PHAs Have 
Received HUD-VASH Vouchers
    The receiving PHA may bill the initial PHA or absorb the family 
into its own HUD-VASH program if the VA medical facility providing the 
initial case management agrees to the absorption by the receiving PHA 
and the transfer of case management. The absorption will also entail 
the availability of a HUD-VASH voucher and case management provision by 
the receiving PHA's partnering VA medical facility.
3. Portability Moves Where Receiving PHA Is Beyond VA Medical Facility 
Catchment Area
    If a family wants to move to another jurisdiction where it will not 
be possible for the initial PHA's partnering VA medical facility to 
provide case management services, the VA must first determine that the 
HUD-VASH family could be served by another VA medical facility that is 
participating in this program, and the receiving PHA must have a HUD-
VASH voucher available for this family. In these cases, the family must 
be absorbed by the receiving PHA either as a new admission (upon 
initial participation in the HUD-VASH program) or as a portability 
move-in (after an initial leasing in the initial PHA's jurisdiction). 
Upon absorption, the initial PHA's HUD-VASH voucher will be available 
to lease to a new HUD-VASH eligible family, as determined by the 
partnering VA medical facility, and the absorbed family will count 
toward the number of HUD-VASH slots awarded to the receiving PHA.
    When the receiving PHA completes the Family Report (HUD-50058 or 
HUD-50058 MTW) under the scenario described above, the action type that 
must be recorded on line 2a is ``1'' for a new admission (a family that 
is new to the HCV program) or ``4'' for a portability move-in (a family 
that was previously leased up in the jurisdiction of the initial PHA). 
Whether the family is a new admission or portability move-in, in 
section 12 of the HUD-50058, line 12d is always marked ``Y.'' In cases 
of portability where families move out of the catchment area of the 
initial PHA, 12e must be 0 since the family must be absorbed, and 12f 
must be left blank.
4. Portability Moves Where Receiving PHA Is Beyond Catchment Area for 
Victims of Domestic Violence, Dating Violence, Sexual Assault, and 
Stalking
    Veterans who request to port beyond the catchment area of the VA 
medical facility where they are receiving case management in order to 
protect the health or safety of a person who is or has been the victim 
of domestic violence, dating violence, sexual assault, or stalking, and 
who reasonably believes themselves to be threatened with imminent harm 
from further violence by remaining in the dwelling unit (or any family 
member has been the victim of a sexual assault that occurred on the 
premises during the 90-calendar-day period preceding the family's move 
or request to move), may port prior to receiving approval from the 
receiving VA medical facility but must notify the VA medical facility 
at the earliest time possible to ensure appropriate supports are 
provided to the veteran family. The initial PHA must follow its 
emergency transfer plan as described in 24 CFR 5.2005(e). Consistent 
with documentation requirements at 24 CFR 5.2005(e)(10) and 5.200, PHAs 
may require verbal self-certification or a written request from a 
participant seeking a move beyond the catchment area of the VA medical 
facility. A participant may provide a completed form HUD-5383 to 
satisfy a requirement to provide a written request.
    The verbal self-certification or written request must include 
either (a) a statement expressing that the participant reasonably 
believes that there is a threat of imminent harm from further violence 
if the participant were to remain in the same dwelling unit

[[Page 65775]]

assisted under the PHA; or (b) in the case of a participant who is a 
victim of sexual assault and is seeking a transfer on the basis that 
the sexual assault occurred on the premises during the 90-day period 
preceding the participant's request for the move, a statement that says 
this. The veteran escaping violence must be admitted to the VA medical 
facility caseload. For participants seeking a move beyond the catchment 
area of the VA medical facility while maintaining a HUD-VASH voucher, 
the participant must still port to a PHA that has a HUD-VASH program; 
if the receiving PHA does not have a HUD-VASH voucher available to 
lease, they may bill the initial PHA until a HUD-VASH voucher is 
available, at which point the porting veteran must be absorbed into the 
receiving PHA's program.
5. Portability Moves When Case Management Is No Longer Required
    If the family no longer requires case management, as determined by 
the VA medical facility, there are no portability restrictions. PHAs 
must follow the regulatory requirements for portability found at 24 CFR 
982.355. When completing the HUD-50058, the family will continue to be 
coded as ``VASH'' on line 2n unless the family has been moved to a 
regular voucher, in which case the code in 2n would be left blank.

G. Case Management and Supportive Services

    In general, the VA medical facility responsibilities include: (1) 
the screening of homeless veterans to determine whether they meet the 
HUD-VASH program participation criteria established by the VA national 
office; (2) assisting veterans with the PHA application and assisting 
the veteran family with obtaining needed PHA documentation to ensure 
rapid voucher issuance; (3) referrals of homeless veterans to the PHA; 
(4) providing case management and supportive services to potential HUD-
VASH program participants, as needed, prior to PHA issuance of rental 
vouchers; (5) providing housing search assistance to HUD-VASH 
participants with rental vouchers; (6) identifying the social service 
and medical needs of HUD-VASH participants and providing, or ensuring 
the provision of, regular ongoing case management, outpatient health 
services, hospitalization, and other supportive services, as needed, 
throughout this initiative; and (7) maintaining records and providing 
information for evaluation purposes, as required by HUD and the VA. In 
cases where a DSP (including a PHA approved as a DSP) is approved, the 
applicable responsibilities may be completed by the DSP.
    As a condition of HCV rental assistance, both tenant-based voucher 
and PBV, a HUD-VASH eligible veteran must receive the case management 
services noted above, as needed, directly from or arranged by the VA. 
The VA, in consultation with the veteran, is responsible for 
determining if case management is required and if the case management 
requirement is satisfied.
    If a veteran no longer requires case management, but maintains 
their HUD-VASH voucher assistance, the VA will maintain contact with 
the veteran family to provide support and planning assistance with the 
recertification and reinspection process. The VA will remain available 
to provide support to the veteran family, as needed.

H. Termination of Assistance

    There are two alternative requirements for termination of 
assistance for HUD-VASH participants. As detailed above, HUD-VASH 
voucher assistance is contingent upon participation in case management, 
when required by the VA. If the VA has determined that a veteran is not 
participating in required case management, without good cause, the PHA 
must terminate the family from the HUD-VASH program. However, the PHA 
may offer the family continued assistance through one of its regular 
vouchers or a PBV unit not exclusively made available for HUD-VASH.
    A VA determination that the veteran does not require or no longer 
requires case management is never grounds for termination of HCV 
assistance. In such case, and in consultation with the VA, the PHA may 
offer the family continued assistance through one of its regular 
vouchers, to free up the HUD-VASH voucher for another eligible family 
referred by the VA. The decision to transfer assistance to a regular 
voucher must consider veteran preference and must be communicated to 
the VA prior to occurring. If the PHA has no voucher to offer, the 
family will retain its HUD-VASH voucher, or PBV unit, until such time 
as the PHA has an available voucher (or PBV unit not exclusively made 
available for HUD-VASH) for the family. If the family no longer 
requires case management, there are no portability restrictions. Normal 
portability rules apply.
    Second, 24 CFR 982.552(b)(2) states that ``The PHA must terminate 
program assistance for a family evicted from housing assisted under the 
program for serious violation of the lease.'' HUD is waiving this 
provision, and establishing the alternative requirement that the PHA 
may terminate program assistance in these cases. Prior to terminating 
HUD-VASH participants, HUD strongly encourages PHAs to exercise their 
discretion under 24 CFR 982.552(c)(2) and consider all relevant 
circumstances of the specific case, as well as including the role of 
the case manager and the impact that ongoing case management services 
can have on mitigating the conditions that led to the potential 
termination, prior to determining whether to terminate assistance. PHAs 
also must grant reasonable accommodations for persons with disabilities 
in accordance with 24 CFR part 8. The PHA may not terminate assistance 
on the basis or as a direct result that a member of the participant 
family is or has been a victim of domestic violence, dating violence, 
sexual assault, or stalking. 24 CFR 5.2005(b). In addition, a HUD-VASH 
participant family must not be terminated after admission, for a 
circumstance or activity that occurred before admission and was known 
to the PHA but could not be considered at the time of admission due to 
the HUD-VASH Operating Requirements. The PHA can only terminate the 
family's assistance for program violations that occur after the 
family's admission to the voucher program.
    Generally, in the case of a family break-up, the HUD-VASH 
assistance must stay with the HUD-VASH veteran. However, in the case of 
domestic violence, dating violence, sexual assault, or stalking, in 
which the HUD-VASH veteran is the perpetrator, the victim must continue 
to be assisted. Upon termination of the perpetrator's HUD-VASH voucher 
due to the perpetrator's acts of domestic violence, dating violence, 
sexual assault, or stalking, the victim must be given a regular HCV if 
one is available, and the perpetrator's HUD-VASH voucher must be used 
to serve another eligible veteran family. If a regular HCV is not 
available for the victim, the perpetrator must be terminated from 
assistance, and the victim will continue to utilize the HUD-VASH 
voucher.

I. Turnover of HUD-VASH Vouchers

    In accordance with the Appropriations Acts, upon turnover, HUD-VASH 
vouchers must be issued to eligible veteran families as identified by 
the VA, as noted above.

J. MTW Agencies

    HUD-VASH vouchers may be administered in accordance with 
flexibilities approved under a PHA's

[[Page 65776]]

Standard MTW Agreement or MTW Operations Notice with approval from 
HUD's HCV office. Until such time that additional guidance is issued, 
MTW PHAs must submit a request through their local field office to 
operate HUD-VASH in accordance with approved MTW flexibilities. 
Requests will be approved provided the flexibilities do not conflict 
with the HUD-VASH program requirements or objectives. HUD-VASH vouchers 
are never eligible for MTW fungibility. However, MTW agencies may use 
their MTW funding for HUD-VASH vouchers. HUD-VASH vouchers must be 
reported in the IMS/PIC system, or any successor system, on either the 
regular HUD-50058 or HUD- 50058 MTW (or HUD-50058-MTW Expansion where 
appropriate) for vouchers under the agency's MTW Agreement.

K. HUD-VASH PBV

    Section 8(o)(13)(D) of the USHA of 1937 (42 U.S.C. 1437(o)(13)(D)) 
is waived for HUD-VASH vouchers so that all units exclusively made 
available to HUD-VASH families in a PBV project are exempted from the 
PBV income-mixing requirements (project cap). The project cap refers to 
the number of units in a project that may receive PBV assistance and is 
generally the higher of 25 units or 25 percent of units in the project. 
Units exclusively made available to HUD-VASH families are excluded from 
(do not count against) this PBV project cap. Additionally, HUD-VASH 
supportive services only need to be provided to all HUD-VASH families 
in the project, not all families receiving PBV assistance in the 
project. If a HUD-VASH family does not require or no longer requires 
case management, the unit continues to count as an excepted PBV unit 
for as long as the family resides in that unit.
    Likewise, HUD waives Section 8(o)(13)(B) of the USHA of 1937, 42 
U.S.C. 1437f(o)(13)(B) so that HUD-VASH units made available under a 
competitive PIH notice for HUD-VASH PBV units (``HUD-VASH PBV set-
aside'') are excluded from the PBV percentage limitation (program cap). 
This exclusion only applies to HUD-VASH PBV vouchers awarded through 
the HUD-VASH PBV set-aside notice. All other HUD-VASH vouchers that the 
PHA opts to project-base, are still subject to the PBV program cap. 
(Generally, a PHA may project-base up to 20% of its authorized HCV 
units. The PHA may also project-base an additional 10% of its 
authorized HCVs for units that meet the conditions of 24 CFR 
983.6(d)(1) or (d)(2) and any number of units that are excluded from 
the program cap pursuant to 24 CFR 983.58 and 983.59.)
    Pursuant to the HUD-VASH case management and termination 
requirements, a HUD-VASH family's PBV assistance must be terminated for 
failure to participate in case management when required by the VA If 
the PHA has a policy in place to allow the veteran to receive a regular 
(non-VASH) HCV or PBV unit instead of the family's assistance being 
terminated, the PHA may: substitute the family's unit on the PBV HAP 
contract for another unit if it is possible to do so in accordance with 
Sec.  983.207(a) and this notice (the PHA may, in conjunction with such 
substitution, add the original unit to the PBV HAP contract with a non-
VASH voucher if it is possible to do so in accordance with Sec.  
983.207(b)); remove the unit from the PBV HAP contract so the family 
may remain with tenant-based assistance, if the family and the owner 
agree to use the tenant-based voucher in the unit; or change the unit's 
status in the PBV HAP contract from a unit exclusively made available 
for HUD-VASH to a regular PBV unit, if doing so is allowable under 
program rules and this notice. If the PHA does not have a policy in 
place to allow the veteran to receive a regular (non-VASH) HCV or PBV 
unit instead of the family's assistance being terminated, then upon 
notification by the VA of the family's failure to participate in VA-
required case management, the PHA must provide the family a reasonable 
period of time (as established by the PHA) to vacate the unit. The PHA 
must terminate assistance to the family at the earlier of (1) the time 
the family vacates or (2) the expiration of the reasonable period of 
time given to vacate (the lease terminates at the same time as 
termination of assistance per 24 CFR 983.256(f)(3)(v)). If the family 
fails to vacate the unit within the established time, the owner may 
evict the family. If the owner does not evict the family, the PHA must 
remove the unit from the HAP contract or amend the HAP contract to 
substitute a different unit in the project if the project is partially 
assisted. If the PHA has a policy in place to allow the veteran to be 
moved onto a regular HCV or PBV unit, the owner may substitute a PBV 
unit not exclusively made available for HUD-VASH. A PHA may add the 
removed unit to the HAP contract after the ineligible family vacates 
the property. The PBV program requirements governing additions and 
substitutions at 24 CFR 983.207 apply, except that paragraph (c) 
governing additions and substitutions of occupied units does not apply 
to units exclusively made available to HUD-VASH families in most cases. 
Because only homeless veterans may be referred for occupancy of a HUD-
VASH PBV unit, only occupied units whose occupants are families already 
receiving tenant-based HUD-VASH assistance may be added to a PBV HAP 
contract as units exclusively made available to HUD-VASH families. 
Families who are not homeless cannot receive HUD-VASH assistance as a 
result of the family's unit being added to a PBV HAP contract. 
Therefore, the provisions of 24 CFR 983.207(a), (b)(3), and (c) are 
waived with respect to the option to add or substitute an occupied unit 
unless the unit is already occupied by a family receiving tenant-based 
HUD-VASH assistance.
    If a HUD-VASH family is eligible to move from its PBV unit pursuant 
to 24 CFR 983.261 and there is no HUD-VASH tenant-based voucher 
available at the time the family requests to move, the PHA may require 
a family that still requires case management to wait for a HUD-VASH 
tenant-based voucher for a period not to exceed 180 days. To effectuate 
this requirement, section 8(o)(13)(E)(ii) of the USHA of 1937, 42 
U.S.C. 1437f(o)(13)(E)(ii), and 24 CFR 983.261(c) are waived solely for 
the purpose of allowing the PHA to delay issuance of a voucher. If a 
HUD-VASH tenant-based voucher is still not available after that period 
of time, the family must be allowed to move using its HUD-VASH voucher 
as tenant-based assistance. Alternatively, the PHA may allow the family 
to move using its HUD-VASH voucher as tenant-based assistance without 
having to meet this 180-day waiting period. In either case, the PHA may 
either amend the PBV HAP contract to replace the assistance in the PBV 
unit with one of its regular vouchers if the unit is eligible for a 
regular PBV (for instance, so long as the unit is eligible under the 
PHA's program and project caps) or the PHA and owner may agree to 
temporarily remove the unit from the HAP contract. If a HUD-VASH 
veteran has been determined to no longer require case management, the 
PHA must allow the family to move with the first available tenant-based 
voucher if no HUD-VASH voucher is immediately available and cannot 
require the family to wait for a HUD-VASH voucher to become available.
    If the PHA determines that a HUD-VASH family is occupying a wrong-
size PBV unit or a PBV unit with accessibility features that the family 
does not require and the PBV unit is needed by a family that requires 
the accessibility features, the PHA must notify the family and the 
owner within

[[Page 65777]]

30 days of the PHA's determination in accordance with 24 CFR 
983.260(a)(2)(i). HUD applies an alternative requirement for HUD-VASH 
PBV units with respect to 24 CFR 983.260(b), however. Specifically, the 
PHA's offer of continued housing assistance (that must be made within 
60 days of the PHA's determination) must be in the form of either a 
HUD-VASH tenant-based voucher or another HUD-VASH PBV unit. If no HUD-
VASH assistance is available for the PHA to offer within 60 days of the 
PHA's determination, the PHA must remove the wrong-sized or accessible 
unit from the HAP contract to make HUD-VASH voucher assistance 
available to issue the family a tenant-based HUD-VASH voucher. 24 CFR 
983.206(b), which covers the required provision of tenant-based 
assistance requires that the family may elect to use its tenant-based 
assistance to remain in the same project when a PBV HAP contract 
terminates or expires, does not apply to families issued a HUD-VASH 
tenant-based voucher under this circumstance. The PHA may use another 
voucher to add the unit removed under this alternative requirement to 
the HAP contract after the family vacates the property, in accordance 
with 24 CFR 983.207(b).
    PHAs do not need authorization from HUD to use HUD-VASH vouchers as 
PBVs (though PHAs must comply with all standard PBV program 
requirements that are not waived in this notice in order to do so), per 
Section 8(o)(13)(O) of the USHA of 1937, 42 U.S.C. 1437f(o)(13)(O). 
However, PHAs must consult with the partnering VA medical facility to 
ensure approval of the project. PHAs and the partnering VA medical 
facility are expected to communicate regarding the PBV planning and 
development. PHAs may project-base HUD-VASH vouchers in projects 
alongside other PBV units (in accordance with all applicable PBV 
requirements) and may execute a single HAP contract covering both the 
HUD-VASH PBVs and the other PBVs. However, the contract rents may not 
be different based on whether the unit is a [verbar] HUD-VASH PBV unit 
or a non-HUD-VASH PBV unit. In determining the rent to owner for the 
PBV project, if the cap on the amount of rent to owner under 24 CFR 
983.301(b)(1) is lower for non-HUD-VASH units than it is for the HUD-
VASH units (e.g., the PHA has established a HUD-VASH exception payment 
standard under section II.o below and there is either no exception 
payment standard or a lower exception payment standard for the regular 
HCV program for the area in question), that lower cap is applicable 
when setting the rent to owner for the PBV units in the project, 
including the HUD-VASH units. In the description of units in Exhibit A 
of the HAP contract, PHAs must indicate the number of units that will 
be exclusively made available to HUD-VASH families. The PHA must refer 
only HUD-VASH families to PBV units exclusively made available to HUD-
VASH families and to PBV units funded through a HUD-VASH PBV set-aside 
award. The PHA and owner may agree to amend a PBV HAP contract to re-
designate a regular PBV unit as a unit specifically designated for HUD-
VASH families, so long as the PHA first consults with and obtains 
concurrence from the VA medical facility. Additionally, the PHA and 
owner may agree to amend a PBV HAP contract to re-designate a unit 
specifically designated for HUD-VASH families as a regular PBV unit, so 
long as the unit is not funded through a HUD-VASH PBV set-aside award 
and is eligible for a regular PBV (for instance the unit is eligible 
under the PHA's program and project caps). The PHA and owner may also 
agree to temporarily remove a unit from the HAP contract in cases where 
a HUD-VASH eligible veteran has been identified by the VA as 
appropriate for a HUD-VASH PBV unit, but the veteran is not income 
eligible to receive voucher assistance (even after applying the VA 
service-connected disability benefit exclusion waiver and alternative 
requirement under section II.b) or may not be selected for the PBV unit 
because the family's TTP exceeds the gross rent of the unit (i.e., 
there is no HAP). Although the family would not be a program 
participant in the housing portion of the HUD-VASH program in such a 
case, the family would still benefit from the project's location on the 
grounds of a VA facility or from the HUD-VASH supportive services on-
site at the project, while the HUD-VASH voucher would be available to 
assist another HUD-VASH family. The PHA and owner could agree to add a 
HUD-VASH voucher back onto the PBV HAP contract if the family' income 
subsequently decreased to the point that there would be a HAP or when 
the family vacates the unit.
    As discussed earlier in section II.b, a PHA may select an occupied 
unit to be included under a PBV HAP Contract only if the unit's 
occupants are eligible for assistance under 24 CFR 982.201 and the TTP 
for the family must be less than the gross rent for the unit, such that 
the unit will be eligible for a monthly HAP (24 CFR 983.52(c)). 
Furthermore, in selecting a family for an available PBV unit, the PHA 
must determine the TTP for the family is less than the gross rent, 
meaning that the unit will be eligible for a monthly HAP (24 CFR 
983.251((a)(2)). However, if the PBV project is either on the grounds 
of a VA facility or there are HUD-VASH supportive services provided on-
site at the project, the PHA may opt to select a unit occupied by a 
``zero-HAP'' HUD-VASH eligible family or admit a ``zero-HAP'' HUD-VASH 
family to a unit if such unit is made exclusively available to HUD-VASH 
families. Until such time that the HUD-VASH family's TTP falls below 
the gross rent, the family is responsible for paying the entire rent to 
owner (the total monthly rent payable by the family and the PHA to the 
owner under the lease for a contract unit), in addition to being 
responsible for paying all tenant-supplied utilities. During any period 
that the family's TTP falls below the gross rent, normal PBV 
requirements apply. To effectuate this zero-HAP family option and the 
alternative requirement, Section 8(o)(2)(C) of the USHA of 1937, 24 
CFR. 983.52(c), 24 CFR 983.251(a)(2), and 24 CFR 983.353(b)(1) are 
waived.
    Under normally applicable rules, units occupied by families whose 
incomes have increased during their tenancy resulting in the total 
tenant payment equaling the gross rent shall be removed from the HAP 
contract 180 days following the last housing assistance payment on 
behalf of the family (24 CFR 983.211, 24 CFR 983.258). These 
regulations do not apply to zero HAP families admitted to the PBV 
project under this waiver and alternative requirement because there is 
no last housing assistance payment that would trigger the unit removal 
date of 180 days. As an alternative requirement, PHAs have the option 
of removing the unit in which the zero HAP family resides from the HAP 
contract, but no earlier than 180 days from the start of the family PBV 
tenancy. If the PHA exercises this option, the family may not be 
required to move from the unit as a consequence and continues to 
receive the HUD-VASH supportive services. If the project is fully 
assisted the PHA may reinstate the unit removed to the HAP contract 
after the family either vacates the unit or their income decreases to 
the point that there would be a HAP. If the project is partially 
assisted, the PHA may substitute a different unit for the unit removed 
from the HAP contact when the first eligible substitute unit becomes 
available (in accordance with 24 CFR 983.207). Alternatively, the PHA 
may choose to simply leave the unit on

[[Page 65778]]

the HAP contract while the zero HAP family continues to reside there.
    PBV proposal and/or project selection for HUD-VASH must follow all 
regular proposal and/or project selection regulations, with the 
following exception. HUD is establishing an alternative requirement 
under 24 CFR 983.51(c) to permit noncompetitive selection of one or 
more PBV projects with units made exclusively available to HUD-VASH 
families on the site of a VA facility. Note that the method of project 
selection must comply with all other requirements under 24 CFR 983.51, 
including that the PHA must notify the public of its intent to 
noncompetitively select one or more projects for PBV assistance through 
its 5-Year Plan and to ensure any project selection is consistent with 
the PHA Administrative Plan.
    PHAs may consult with their partnering VA medical facility about 
the option for using PBVs in conjunction with the VA's Enhanced-Use 
Lease (EUL) Program. The EUL Program authorizes the VA to lease 
underutilized real estate under its jurisdiction or control to the 
private sector. Through this program, lessees can develop supportive 
housing for homeless veterans who will be provided an expanded range of 
services that would not otherwise be available on medical center 
campuses.

L. Section Eight Management Assessment Program (SEMAP)

    HUD-VASH vouchers remain excluded from the SEMAP leasing indicator. 
Therefore, 24 CFR 985.3(n)(1)(i) and (ii) are still waived. During a 
HUD-VASH PHA's calendar year, the prorated budget authority available 
for HUD-VASH vouchers and the units associated with that budget 
authority will be excluded from the denominators for both units leased 
and dollars expended.

M. Reallocation of HUD-VASH Vouchers

    HUD-VASH vouchers have been allocated based on geographic need at 
the time of each allocation. In recognition that there may be changes 
and shifts in the population of homeless veterans over time, it may 
become necessary for the VA and HUD to jointly reallocate HUD-VASH 
vouchers to better address the current needs of the homeless veteran 
population. This reallocation may be done in one of two ways. If there 
is continued need at the VA medical facility, HUD-VASH vouchers may be 
voluntarily moved between PHAs administering HUD-VASH programs within 
the same VA medical facility catchment area. Alternatively, if it has 
been determined that a VA medical facility no longer has sufficient 
need and will not be able to utilize their available HUD-VASH vouchers, 
HUD and VA may choose to jointly recapture HUD-VASH vouchers from the 
VA medical facility and any partnering PHA(s). Recaptured vouchers, and 
any associated funding, will be reallocated through a national 
allocation process, to areas with current need. PHAs must follow the 
process detailed in Notice PIH 2022-25: Voluntary Reallocation or 
Recapture of HUD-VASH or any superseding notice.

N. Inspections

    To expedite the leasing process for tenant-based HUD-VASH, PHAs may 
pre-inspect available units that veterans may be interested in leasing 
with a HUD-VASH tenant-based voucher in order to maintain a pool of 
eligible units. If a HUD-VASH family selects a unit that passed a HQS 
inspection (without intervening occupancy) within 90 days of the date 
of the Request for Tenancy Approval (form HUD-52517), the unit may be 
approved as long as it meets all other conditions under 24 CFR 982.305. 
As required by 24 CFR 982.353(e), a PHA is prohibited from directly or 
indirectly reducing the family's opportunity to select among all 
available units. All regulatory requirements pertaining to HQS found at 
24 CFR 5.703 apply to HUD-VASH.

O. Exception Payment Standards

    Many housing markets with a high need for HUD-VASH are very 
competitive with a shortage of affordable rental units. In addition, 
landlords may be reluctant to rent to individuals experiencing 
homelessness due to poor credit history or lack of recent rental 
history. To assist HUD-VASH participants in finding affordable housing, 
especially in competitive markets, HUD is waiving 24 CFR 982.503(a)(2) 
and (b) to allow a PHA to establish a separate HUD-VASH exception 
payment standard. Without this waiver, a PHA is required to establish a 
single payment standard amount for each unit size. Additionally, 24 CFR 
982.503(c) is waived so that PHAs may go up to, but no higher than 120 
percent of the published metropolitan area-wide Fair Market Rents 
(FMRs) or Small Area FMRs (based on the PHA's applicable FMR) 
specifically for their HUD-VASH program. A PHA that wants to establish 
a HUD-VASH exception payment standard over 120 percent, as allowed by 
24 CFR 982.503(d)(4), must still request approval from HUD through the 
process outlined in notice PIH 2018-16, or any successor notices. 
Exception payment standards implemented by the PHA under this Section 
also apply in determining rents under 24 CFR 983.301(b) for PBV 
projects only when the project is comprised solely of units exclusively 
made available to HUD-VASH families. This is because the contract rents 
established for the project may not be different based on whether the 
unit is a [verbar] HUD-VASH PBV unit or a non-HUD-VASH PBV unit. HUD-
VASH PHAs may also establish an exception payment standard up to 140 
percent of the published FMR or Small Area FMR (based on which FMR the 
PHA is applying) only to be applied if required as a reasonable 
accommodation in accordance with 24 CFR part 8 for a family that 
includes a person with a disability. Any unit approved under an 
exception payment standard must still meet the reasonable rent 
requirements found at Sec.  982.507. To allow this, HUD is waiving 
Section 8(o)(1)(D) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(1)(D)) and 24 CFR 982.503(d)(5). A PHA may use a payment 
standard that is greater than 140 percent of FMR as a reasonable 
accommodation for a person with a disability, but only with HUD 
approval.

P. Special Housing Types

    Special housing types can be particularly useful to HUD-VASH 
clients, as it can increase the availability of housing and, for some 
veterans, can be a better housing environment than a single-family 
unit. As such, PHAs must permit HUD-VASH clients to use the following 
special housing types for tenant-based HUD-VASH assistance, regardless 
of whether these types are permitted in their administrative plan for 
other families: single room occupancy (SRO); congregate housing; group 
home; shared housing; and cooperative housing. Regulations for these 
housing types can be found at 24 CFR 982 subpart M. Consistent with the 
regulations, HUD-VASH PBV can never be applied to shared housing.

Q. Minimum Rents

    PHAs must consider hardship circumstances before charging a minimum 
rent in accordance with 24 CFR 5.630(b). HUD-VASH veteran families may 
often require hardship exemptions of a PHA established minimum rent. 
For this reason, PHAs may choose to charge a lower minimum rent 
(including a minimum rent of $0) specifically for their HUD-VASH 
program regardless of the minimum rent policies established in their

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administrative plan for other HCV families.

III. Reporting Requirements

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

Dominique Blom,
General Deputy Assistant Secretary, Office of Public and Indian 
Housing.
[FR Doc. 2024-17957 Filed 8-12-24; 8:45 am]
BILLING CODE 4210-67-P