[Federal Register Volume 66, Number 44 (Tuesday, March 6, 2001)]
[Proposed Rules]
[Pages 13461-13463]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-5404]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AK01


Compensated Work Therapy/Transitional Residences Program

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: This document proposes to amend VA's medical regulations to 
establish provisions regarding housing under the Compensated Work 
Therapy/Transitional Residences program. These provisions are designed 
to ensure proper management, ensure reasonable payment rates for 
residents, and ensure that residents stay only for the time necessary 
to meet the intended goals.

DATES: Comments must be received by VA on or before May 7, 2001.

ADDRESSES: Mail or hand-deliver written comments to: Director, Office 
of Regulations Management (02D), Department of Veterans Affairs, 810 
Vermont Ave., NW., Room 1154, Washington, DC 20420; or fax comments to 
(202) 273-9289; or e-mail comments to [email protected]. 
Comments should indicate that they are submitted in response to ``RIN 
2900-AK01.'' All comments received will be available for public 
inspection in the Office of Regulations Management, Room 1158, between 
the hours of 8 a.m. and 4:30 p.m., Monday through Friday (except 
holidays).

FOR FURTHER INFORMATION CONTACT: Jamie Ploppert, Program Specialist, 
Office of Psychosocial Rehabilitation Services (116D), Veterans Health 
Administration, 757-722-9961, ext. 1123 (this is not a toll-free 
number).

SUPPLEMENTARY INFORMATION: This document proposes to amend VA's Medical 
regulations to establish provisions regarding housing under the 
Compensated Work Therapy/Transitional Residences program. This VA 
program is a psychosocial rehabilitation program of therapeutic work 
and transitional housing. This program is designed for veterans with

[[Page 13462]]

physical and/or mental disabilities. It utilizes normalized work and 
residential living environments, along with peer and professional 
support, to improve vocational, social, and independent living skills.
    Under the provisions of 38 U.S.C. 1772, VA must prescribe the 
qualifications for house managers, make provision for reasonable 
payment rates for residents, and establish limits on the length of stay 
for residents.

House Managers

    The proposed rule provides that house managers shall be selected by 
the local VA program coordinator and will be responsible for 
coordinating and supervising the day-to-day operation of the facility. 
The proposed rule also sets forth qualifications for house managers. 
These qualifications are designed to foster effective management of the 
residence. Further, consistent with specific authority in 38 U.S.C. 
1772(d), house managers would be exempt from the residence fee.

Resident Must Be in Program

    The proposed rule states that each resident, except for a house 
manager, must be in the Compensated Work Therapy/Transitional 
Residences program. This reflects statutory requirements in 38 U.S.C. 
1772.

Resident's Payment

    The proposed rule sets forth criteria for establishing the amount 
to be paid by residents. The fee is based on the cost of utilities, 
maintenance, furnishings, appliances, service equipment, all other 
operating costs, plus an additional 15 percent of such operating 
expenses. Our experience has demonstrated that this would approximately 
equal the amount to be expended. The additional 15 percent would cover 
unexpected costs.
    Further, we propose that the fee would be the same for each 
resident except that a resident shall not on average pay more than 30 
percent of their gross weekly earnings. This percentage is what low-
income subsidized housing uses in determining its rental fees. Further, 
our experience with the Compensated Work Therapy/Transitional 
Residences program has demonstrated that 30 percent of income would be 
adequate to cover housing expenses. The limitation of 30 percent also 
would help to ensure that residents have sufficient funds to meet their 
other living expenses as well as to help prepare for a successful 
transition to independent living.
    Also, to help ensure that there is money to cover operating 
expenses when due, the proposal states that a resident's fee must be 
paid bi-weekly in advance.
    The proposed rule also contains a mechanism for the transfer of 
funds from the medical center of jurisdiction if necessary for the 
residence to obtain fiscal solvency.

Resident's Length of Stay

    We propose that the length of stay in the housing be based on the 
individual needs of each veteran in consensus with his/her clinical 
treatment team. However, we also propose that the length of stay not 
exceed 12 months. We believe this period of time to be sufficient to 
address the veterans' psychosocial rehabilitative needs before their 
transition to independent living.

OMB Review

    This document has been reviewed by the Office of Management and 
Budget under Executive Order 12866.

Paperwork Reduction Act

    This document contains no provisions constituting a collection of 
information under the Paperwork Reduction Act (44 U.S.C. 3501-3520).

Regulatory Flexibility Act

    The Secretary hereby certifies that the adoption of this proposed 
rule would not have a significant economic impact on a substantial 
number of small entities as they are defined in the Regulatory 
Flexibility Act, 5 U.S.C. 601-612. This document affects individuals 
and does not affect small entities. Therefore, pursuant to 5 U.S.C. 
605(b), this proposed rule is exempt from the initial and final 
regulatory flexibility analysis requirement of sections 603 and 604.

List of Subjects in 38 CFR Part 17

    Administrative practice and procedure, Alcohol abuse, Alcoholism, 
Claims, Day care, Dental health, Drug abuse, Foreign relations, 
Government contracts, Grant programs-health, Government programs-
veterans, Health care, Health facilities, Health professions, Health 
records, Homeless, Incorporation by reference; Medical and dental 
schools, Medical devices, Medical research, Mental health programs, 
Nursing home care, Philippines, Reporting and recordkeeping 
requirements, Scholarships and fellowships, Travel and transportation 
expenses, Veterans.

    Approved: February 15, 2001.
Anthony J. Principi,
Acting Secretary of Veterans Affairs.
    For the reasons set forth in the preamble, 38 CFR part 17 is 
proposed to be amended to read as follows:

PART 17--MEDICAL

    1. The authority citation for part 17 continues to read as follows:

    Authority: 38 U.S.C. 501, 1721, unless otherwise noted.

    2. Redesignate Sec. 17.49 as new Sec. 17.48.
    3. Add a new Sec. 17.49 to read as follows:


Sec. 17.49  Compensated Work Therapy/Transitional Residences program.

    (a) This section sets forth requirements for persons residing in 
housing under the Compensated Work Therapy/Transitional Residences 
program.
    (b) House managers shall be responsible for coordinating and 
supervising the day-to-day operations of the facilities. Each house 
manager shall be appointed as a without-compensation employee. The 
local VA program coordinator shall select each house manager and may 
give preference to an individual who is a current or past resident of 
the facility or the program. A house manager must have the following 
qualifications:
    (1) A stable, responsible and caring demeanor;
    (2) Leadership qualities including the ability to motivate;
    (3) Effective communication skills including the ability to 
interact;
    (4) A willingness to accept feedback;
    (5) A willingness to follow a chain of command.
    (c) Each resident admitted to the Transitional Residence, except 
for a house manager, must also be in the Compensated Work Therapy 
program.
    (d) Each resident, except for a house manager, must bi-weekly, in 
advance, pay a fee to VA for living in the housing. The local VA 
program coordinator will establish the fee for each resident in 
accordance with the provisions of paragraph (d)(1) of this section.
    (1) The total amount of actual operating expenses of the residence 
(utilities, maintenance, furnishings, appliances, service equipment, 
all other operating costs) for the previous fiscal year plus 15 percent 
of that amount equals the total operating budget for the current fiscal 
year. The total operating budget is to be divided by the average number 
of beds occupied during the previous fiscal year and the resulting 
amount is the average yearly amount per bed. The bi-weekly fee shall 
equal to \1/26\ of the average yearly amount per bed, except that a 
resident shall not, on average, pay more than 30 percent of their gross 
CWT (Compensated Work Therapy) bi-weekly earnings. The VA program 
manager shall, bi-annually, conduct a review of the factors in this

[[Page 13463]]

paragraph for determining resident payments. If he or she determines 
that the payments are too high or too low by more than 5 percent of the 
total operating budget, he or she shall recalculate resident payments 
under the criteria set forth above, except that the calculations shall 
be based on the current fiscal year (actual amounts for the elapsed 
portion and projected amounts for the remainder).
    (2) If the revenues of a residence do not meet the expenses of the 
residence resulting in an inability to pay actual operating expenses, 
the medical center of jurisdiction shall provide the funds necessary to 
return the residence to fiscal solvency in accordance with the 
provisions of this section.
    (e) The length of stay in housing under the Compensated Work 
Therapy/Transitional Residences program is based on the individual 
needs of each resident, as determined by consensus of the resident and 
his/her VA Clinical Treatment team. However, the length of stay should 
not exceed 12 months.

(Authority: 38 U.S.C. 1772)

[FR Doc. 01-5404 Filed 3-5-01; 8:45 am]
BILLING CODE 8320-01-P