[Federal Register Volume 71, Number 131 (Monday, July 10, 2006)]
[Notices]
[Pages 38882-38883]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-10703]



[[Page 38882]]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES


Program Support Center; Use of Federal Real Property To Assist 
the Homeless

AGENCY: Program Support Center, HHS.

ACTION: Final notice.

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SUMMARY: Title V of the McKinney-Vento Homeless Assistance Act, 42 
U.S.C. 11411 (Title V) authorizes the Secretary of Health and Human 
Services (the Secretary) to make suitable Federal properties 
categorized as excess or surplus available to representatives of 
persons experiencing homelessness as a permissible use in the 
protection of public health. This notice finalizes a policy revision 
under Title V to include permanent supportive housing as an allowable 
use of surplus real property to assist persons experiencing 
homelessness. The purpose of this policy revision is to increase the 
supportive housing and service opportunities available to communities 
as they respond to homelessness, and is consistent with efforts within 
Federal, State, and local governments, and communities themselves, to 
end chronic homelessness. This final notice follows publication of a 
notice and request for comments on January 26, 2006.

DATES: Effective Date: September 1, 2006.

FOR FURTHER INFORMATION CONTACT: John G. Hicks, Chief, Space Management 
Branch, Division of Property Management, Administrative Operations 
Service, Program Support Center, Room 5B-17, Parklawn Building, 5600 
Fishers Lane, Rockville, Maryland 20857; telephone number (301) 443-
2265.

SUPPLEMENTARY INFORMATION:

I. Discussion of the Public Comments on the Proposed Policy Revision

    On January 26, 2006 (71 FR 4366), the U.S. Department of Health and 
Human Services (HHS) published a notice and request for comments that 
described a proposed policy revision under Title V to include permanent 
supportive housing as an allowable use of surplus real property to 
assist persons experiencing homelessness. The public comment period 
closed on February 28, 2006. HHS received comments from 16 respondents 
representing a variety of organizations and entities. Comments were 
received from: homeless service providers; homeless advocacy groups; a 
public housing authority; and Federal, State, and city government 
agencies.

II. General Comments About the Draft Notice

    All of the comments received expressed support for the proposed 
policy revision. Eight of the respondents expressed support for the 
policy revision with no further comment.
    Comment: Five of the respondents suggested that HHS should further 
revise the policy to allow all forms of non-supportive affordable 
permanent housing to be included as an eligible use under Title V.
    HHS Response: Title V of the McKinney Act directs HHS to include, 
as a permissible use in the protection of public health, the furnishing 
of surplus real property to assist homeless individuals and families. 
The Secretary exercises the authority to approve permanent supportive 
housing programs for Title V, consistent with HHS' mission to protect 
the public health. The provision of low-income housing (i.e. the 
Section 8 Housing Choice Voucher Program) is under the purview of the 
U.S. Department of Housing and Urban Development (HUD). HHS, as the 
nation's public health agency, does not operate low-income housing 
programs, and does not intend to duplicate already existing programs 
operated by HUD. The proposed policy revision is intended to reaffirm 
HHS' 1992 determination that the provision of low-income housing does 
not constitute an appropriate public health use of surplus real 
property under Title V. In contrast, we are proposing a permanent 
supportive housing program that is long-term, community-based, and 
linked to supportive services for homeless persons with disabilities.
    Comment: Three of the respondents recommended that the definition 
for permanent supportive housing should include the term 
``affordable.''
    HHS Response: HHS has modified the definition of permanent 
supportive housing to include the term affordable.
    Comment: Three of the respondents recommended that the term 
``disability'' should be explicitly defined.
    HHS Response: HHS has included a definition for disability in the 
final Notice.

III. Background

    The HHS Program Support Center (PSC) administers the Federal Real 
Property Assistance Program, the program that governs the transfer of 
surplus Federal real property for public health purposes under Title 
40, section 550 of the United States Code, ``Public Buildings, 
Property, and Works,'' and the transfer of excess and surplus Federal 
real property pursuant to Title V.
    Under Title V, a representative of persons experiencing 
homelessness may submit an application to the Secretary of HHS to 
acquire suitable excess or surplus Federal real property for use in the 
assistance of persons experiencing homelessness. In 1991, HHS, HUD, and 
the General Services Administration (GSA) jointly published a 
regulation implementing the provisions of Title V, codified at 45 CFR 
part 12a (the joint regulation). Title V authorizes the Secretary to 
make property in these categories available to representatives of 
persons experiencing homelessness, by lease or deed, as a public health 
use pursuant to subsections (a) to (d) of section 550 of Title 40, 
United States Code. In accordance with subsection (d) of Title 40, the 
Secretary may propose to sell or lease property assigned to the 
Secretary for use in the protection of the public health, including 
research. To implement both Title V and section 550 of Title 40, the 
Secretary determines whether an applicant's proposed program of 
utilization is an approvable public health program, and then recommends 
to the Administrator of GSA which excess and surplus real property is 
needed for that approved program in the protection of the public 
health. 40 U.S.C. 550(d); 45 CFR 12.3(a).
    Title V directs HHS to include, as a permissible use in the 
protection of public health, the furnishing of surplus real property to 
assist homeless individuals and families. Title V does not prescribe 
appropriate homeless assistance programs.
    HHS concluded in 1992 that long-term housing did not constitute an 
appropriate public health use of surplus real property under Title V. 
HHS subsequently adopted the HUD standard, limiting occupancy in Title 
V's transitional housing programs to 24 months. Until now, HHS has not 
considered whether the provision of long-term, community-based housing 
linked with supportive services for persons experiencing homelessness 
was a permissible public health use.
    The Secretary exercises the authority to approve permanent 
supportive housing programs for Title V, consistent with HHS' mission 
to protect the public health. There are several critical distinctions 
between the policy decision in 1992 regarding the use of surplus real 
property for low-income housing and the current policy revision to 
allow surplus real property to be used for permanent supportive 
housing. Low-income housing is defined as subsidized housing 
opportunities for individuals with low incomes. The provision of low-
income housing (i.e. the Section 8 Housing Choice Voucher Program) is

[[Page 38883]]

under the purview of HUD. HHS, as the nation's public health agency, 
does not operate low-income housing programs, and does not possess the 
experience or expertise to complement HUD's mission. The policy 
revision is intended to reaffirm HHS' 1992 determination that the 
provision of low-income housing does not constitute an appropriate 
public health use of surplus real property under Title V. In contrast, 
we are proposing a permanent supportive housing program that is long-
term, affordable, community-based, and linked to supportive services 
for homeless persons with disabilities.

IV. Policy Revision

    HHS has historically been involved in the provision of permanent 
supportive housing, such as through the Projects for Assistance in 
Transition from Homelessness (PATH) program that is operated in the 
Substance Abuse and Mental Health Services Administration (SAMHSA). 
Given HHS' history of involvement in the health service component of 
supportive housing programs, there is precedent to suggest that this 
would be an appropriate public health use of surplus real property 
under Title V.
    Permanent supportive housing is a service model that links housing 
and services together, without the 24-month time limit traditionally 
imposed by a transitional housing program. Initial research thus far 
suggests the effectiveness of permanent supportive housing for 
individuals with disabilities and those who are chronically homeless. 
In several studies, this model has been successful at achieving housing 
stability. For example, placement of homeless people with severe mental 
illness in permanent supportive housing is associated with reductions 
in subsequent use of shelters, hospitalizations, and incarcerations 
(Culhane et al., 2001). Early outcomes in a study of supportive housing 
with integrated services suggest that these services reduced the use of 
emergency health care rooms, psychiatric and detoxification programs as 
well as inpatient care (Corporation for Supportive Housing, 2000). 
Experimental studies comparing the relative impact of case management 
and housing resources suggest that long-term housing resources are 
distinctively effective in reducing homelessness (Rosenheck, 2003).
    The policy revision will allow property acquired through the Title 
V process to be utilized for the development of permanent supportive 
housing programs that provide permanent housing along with supportive 
services to homeless people in need of public health assistance and/or 
services (e.g., substance abuse, mental health, case management, 
medical care services, and disabled and frail elderly homeless 
services). This revision would not preclude communities from using 
surplus property to develop transitional housing programs, emergency 
shelter programs, or any other homeless assistance program currently 
approvable by HHS, but simply expands the options available under Title 
V.
    For the purpose of the Title V program, permanent supportive 
housing means long-term, affordable, community-based housing that is 
linked to appropriate supportive health and social services (e.g., 
substance abuse, mental health, case management, medical care services, 
and disabled and frail elderly services) that enable homeless 
individuals and homeless families with disabilities to maintain 
housing. Permanent means there is no time limit to residency, provided 
a tenant meets conditions of occupancy as established by the program. 
Affordable means that generally households or tenants pay no more than 
30 percent of the occupant's annual income on rent. Eligible 
populations for this program include homeless individuals with a 
disability, homeless families with a disabled family member (either 
parent or child), and homeless frail elderly populations. For the 
purposes of this program, a disability is defined as a diagnosable 
substance use disorder, serious mental illness, developmental 
disability, or chronic physical illness or disability, including the 
co-occurrence of two or more of these conditions. A disabling condition 
limits an individual's ability to work or perform one or more 
activities of daily living. This definition of disability was developed 
collaboratively by HHS, HUD, and the Department of Veterans Affairs for 
the Chronic Homelessness Initiative.
    The same evaluation criteria outlined in the joint regulation will 
continue to apply to all applications received for consideration under 
Title V, including those requesting property to be used for permanent 
supportive housing. Applicants must fully describe the proposed 
program, demonstrate how the services to be provided will address the 
needs of the homeless population to be served, and otherwise comply 
with the requirements of Title V and the joint regulation.
    Existing grantees or lessees interested in changing current 
programs to include permanent supportive housing are requested to 
provide a written expression of interest to the Division of Property 
Management, Administrative Operations Service, Program Support Center, 
Room 5B-17, Parklawn Building, 5600 Fishers Lane, Rockville, Maryland 
20857. Grantees and lessees will be required to submit an amended 
application.
    This policy revision will be instituted on the effective date of 
this final notice.

    Dated: June 7, 2006.
J. Philip VanLandingham,
Deputy Assistant Secretary for Program Support.
 [FR Doc. E6-10703 Filed 7-7-06; 8:45 am]
BILLING CODE 4510-03-P