[Federal Register Volume 80, Number 233 (Friday, December 4, 2015)]
[Rules and Regulations]
[Pages 75791-75806]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30473]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 91 and 578

[Docket No. FR-5809-F-01]
RIN 2506-AC37


Homeless Emergency Assistance and Rapid Transition to Housing: 
Defining ``Chronically Homeless''

AGENCY: Office of the Assistant Secretary for Community Planning and 
Development, HUD.

ACTION: Final rule.

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SUMMARY: This final rule establishes the definition of ``chronically 
homeless'' that will be used in HUD's Continuum of Care Program, and in 
the Consolidated Submissions for Community Planning and Development 
Programs. This definition has been the subject of significant public 
comment which has guided HUD in establishing the definition of 
``chronically homeless'' that will be used in its homeless assistance 
programs. The final rule also establishes the necessary recordkeeping 
requirements that correspond to the definition of ``chronically 
homeless'' for the Continuum of Care Program. Historically, other 
programs within HUD, as well as other agencies such as the United 
States Interagency Council on Homelessness and the Department of 
Veteran Affairs, have adopted HUD's definition of chronically homeless 
and

[[Page 75792]]

may also choose to adopt the definition of ``chronically homeless'' 
included in this final rule, however, it is not required.

DATES: Effective Date: January 4, 2016.
    Compliance Dates: Continuum of Care recipients must comply with the 
regulations promulgated by this rule as of January 15, 2016. The 
Continuum of Care Program grant agreement provides that upon 
publication of a final rule for the Continuum of Care Program, that 
follows the July 31, 2012, interim rule, the final rule, not the prior 
interim rule, will govern the grant agreement. Continuum of Care 
Program recipients, therefore, must comply with the regulations 
promulgated by this rule for all program participants admitted after 
January 15, 2016. The regulations promulgated by this rule do not apply 
retroactively to program participants admitted to a Continuum of Care 
Program project prior to January 15, 2016.

FOR FURTHER INFORMATION CONTACT: Norm Suchar, Director, Office of 
Special Needs Assistance Programs, Office of Community Planning and 
Development, Department of Housing and Urban Development, 451 7th 
Street SW., Washington, DC 20410-7000; telephone number 202-708-4300 
(this is not a toll-free number). Hearing- and speech-impaired persons 
can access this number through TTY by calling the Federal Relay Service 
at 800-877-8339 (this is a toll-free number).

SUPPLEMENTARY INFORMATION: 

I. Executive Summary

Purpose and Legal Authority

    The purpose of this rule is to establish a final definition of the 
term ``chronically homeless'' that will be used in HUD's Continuum of 
Care Program (24 CFR part 578) and the Consolidated Submissions for 
Community Planning and Development Programs (24 CFR part 91). 
``Chronically homeless'' is defined in section 401(2) of the McKinney-
Vento Homeless Assistance Act, 42 U.S.C. 11360 (McKinney-Vento Act or 
Act), as an individual or family that is homeless and resides in a 
place not meant for human habitation, a safe haven, or in an emergency 
shelter, and has been homeless and residing in such a place for at 
least 1 year or on at least four separate occasions in the last 3 
years. The statutory definition also requires that the individual or 
family has a head of household with a diagnosable substance use 
disorder, serious mental illness, developmental disability, post-
traumatic stress disorder, cognitive impairments resulting from a brain 
injury, or chronic physical illness or disability.
    Following the statutory definition, HUD first proposed a regulatory 
definition of ``chronically homeless'' in a December 5, 2011, interim 
rule that established regulations for the Emergency Solutions Grants 
program and made conforming amendments to HUD's Consolidated Plan 
regulations (76 FR 75954). In response to concerns raised in public 
comments, HUD amended the definition of ``chronically homeless'' in the 
Continuum of Care Program interim rule, published July 31, 2012 (77 FR 
45422), and sought further public comment on the definition of 
``chronically homeless.'' At a convening held on May 30, 2012, HUD also 
solicited feedback from nationally recognized experts on a workable 
definition of ``chronically homeless,'' as described in the Rural 
Housing Stability Assistance Program proposed rule, published March 27, 
2013 (78 FR 18726). This final rule results from HUD's consideration of 
the public comments on the definition of ``chronically homeless'' and 
feedback from the convening of nationally recognized experts.

Summary of Major Provisions

    This rule provides a definition of ``chronically homeless'' in 24 
CFR 91.5, which applies to Consolidated Submissions for Community 
Planning and Development Programs, and in 24 CFR 578.3, which applies 
to the Continuum of Care Program. In addition, this rule amends 24 CFR 
578.103, which stipulates recordkeeping requirements for the Continuum 
of Care Program, to include requirements that recipients and 
subrecipients of Continuum of Care funds must follow in order to 
demonstrate that an individual or family has met the definition of 
``chronically homeless.''
    A ``chronically homeless'' individual is defined to mean a homeless 
individual with a disability who lives either in a place not meant for 
human habitation, a safe haven, or in an emergency shelter, or in an 
institutional care facility if the individual has been living in the 
facility for fewer than 90 days and had been living in a place not 
meant for human habitation, a safe haven, or in an emergency shelter 
immediately before entering the institutional care facility. In order 
to meet the ``chronically homeless'' definition, the individual also 
must have been living as described above continuously for at least 12 
months, or on at least four separate occasions in the last 3 years, 
where the combined occasions total a length of time of at least 12 
months. Each period separating the occasions must include at least 7 
nights of living in a situation other than a place not meant for human 
habitation, in an emergency shelter, or in a safe haven.
    Chronically homeless families are families with adult heads of 
household who meet the definition of a chronically homeless individual. 
If there is no adult in the family, the family would still be 
considered chronically homeless if a minor head of household meets all 
the criteria of a chronically homeless individual. A chronically 
homeless family includes those whose composition has fluctuated while 
the head of household has been homeless.
    Recipients and subrecipients of Continuum of Care Program funds are 
required to maintain and follow written intake procedures to ensure 
compliance with the ``chronically homeless'' definition. The procedures 
must establish the order of priority for obtaining evidence as third-
party documentation first, intake worker observations second, and 
certification from the individual seeking assistance third.

Benefits and Costs

    This final rule establishes a regulatory definition for the term 
``chronically homeless'' that meets the statutory definition of the 
term established in the McKinney-Vento Act and focuses on persons with 
the longest histories of homelessness, who often also have the highest 
need. This will ensure that funds are targeted to providing permanent 
supportive housing solutions for these individuals and families.
    This final definition of ``chronically homeless'' provides greater 
clarity than the statutory definition and HUD's previous proposed 
definitions so that recipients and subrecipients can benefit from 
understanding which homeless individuals and families can be considered 
``chronically homeless.'' This final definition will ensure that 
communities are consistently using the same criteria when considering 
whether a person is chronically homeless, and that HUD receives 
consistent and accurate information nationwide. Communities previously 
used various standards for the length of time to define an ``episode'' 
for a person to be considered chronically homeless, which made it 
difficult for HUD to compare data nationally and failed to ensure 
resources were going to those with the longest histories of 
homelessness.
    Although recordkeeping necessarily entails costs, and this rule 
establishes certain recordkeeping requirements for

[[Page 75793]]

the Continuum of Care Program, recipients of Continuum of Care Program-
funded permanent supportive housing projects that serve the chronically 
homeless have always been required to document the chronically homeless 
status of program participants. Failure to maintain appropriate 
documentation of a household's eligibility is the monitoring finding 
that most often requires recipients of HUD funds to repay grant funds. 
This rule establishes recordkeeping requirements to assist Continuum of 
Care Program recipients in appropriately and consistently documenting 
chronically homeless status, which will help to ensure that recipients 
are not required to repay grant funds due to inappropriately 
documenting eligibility for these projects.

II. Background--HEARTH Act

    The Homeless Emergency Assistance and Rapid Transition to Housing 
Act of 2009 (HEARTH Act), which was enacted on May 20, 2009, amended 
the McKinney-Vento Act and consolidates three separate homeless 
assistance programs administered by HUD under the McKinney-Vento Act 
into a single grant program, the Continuum of Care Program; revises the 
Emergency Shelter Grants Program and renames the program the Emergency 
Solutions Grants program; and creates the Rural Housing Stability 
Assistance Program to replace the Rural Homelessness Grant program. 
Commencing in 2010 with the publication of the proposed rule on the 
definition of ``homeless,'' HUD initiated the rulemaking process to 
establish the regulations for these new and revised programs. In this 
rule, HUD provides the final definition of ``chronically homeless'' 
that will apply to its homeless assistance programs, and makes this 
definition applicable, through amendments, to the regulations at 24 CFR 
part 91(Consolidated Submissions for Community Planning and Development 
Programs) and 24 CFR part 578 (Continuum of Care Program).

III. Prior Proposed Rules

    On December 5, 2011, at 76 FR 75954, HUD published an interim rule 
which established the regulations for the Emergency Solutions Grants 
program and made conforming amendments to HUD's Consolidated Plan 
regulations at 24 CFR part 91, which included a definition of 
``chronically homeless.'' HUD received 28 public comments on this 
definition of ``chronically homeless.'' The majority of the commenters 
raised concerns over HUD's clarification that ``an occasion'' must 
equal at least 15 days of living or residing in a place not meant for 
human habitation, in a safe haven, or in an emergency shelter. In 
response to these concerns, HUD included a definition of ``chronically 
homeless'' that omitted this clarification in the Continuum of Care 
Program interim rule, published July 31, 2012, in the Federal Register 
(77 FR 45422) and HUD sought further comment on the definition of 
``chronically homeless.'' At a convening held on May 30, 2012, HUD also 
solicited feedback from nationally recognized experts on a workable 
definition of ``chronically homeless'' which was described in the Rural 
Housing Stability Assistance Program proposed rule. After considering 
the 28 public comments submitted in response to the conforming 
amendments to the Consolidated Plan published with the Emergency 
Solutions Grants interim rule, the 42 comments submitted in response to 
the Continuum of Care Program interim rule, and the feedback solicited 
at the convening of nationally recognized experts, HUD determined to 
propose for public comment a revised definition of ``chronically 
homeless.''
    On March 27, 2013, HUD published a proposed rule at 78 FR 18726 
that would establish the regulations for the Rural Housing Stability 
Assistance Program. In addition to proposing the regulations that would 
govern this program, the Rural Housing Stability Assistance Program 
proposed rule submitted for public comment a further revised definition 
of ``chronically homeless.'' The public comment period for the 
definition of ``chronically homeless'' closed on May 28, 2013, and 
these public comments and HUD's responses to these comments are 
addressed later in this preamble.

IV. Overview of the Final Rule--Key Clarifications

    In the Rural Housing Stability Assistance Program proposed rule, 
HUD defined a chronically homeless person as follows:
    1. An individual who:
     Is homeless and lives in a place not meant for human 
habitation, a safe haven, or in an emergency shelter; and
     Has been homeless and living or residing in a place not 
meant for human habitation, a safe haven, or in an emergency shelter 
continuously for at least 1 year or on at least four separate occasions 
in the last 3 years, where the cumulative total of the four occasions 
is at least one year. Stays in institutions of 90 days or less will not 
constitute as a break in homelessness, but rather such stays are 
included in the cumulative total; and
     Can be diagnosed with one or more of the following 
conditions: Substance use disorder, serious mental illness, 
developmental disability (as defined in section 102 of the 
Developmental Disabilities Assistance Bill of Rights Act of 2000 (42 
U.S.C. 15002)), post-traumatic stress disorder, cognitive impairments 
resulting from brain injury, or chronic physical illness or disability;
    2. An individual who has been residing in an institutional care 
facility, including a jail, substance abuse or mental health treatment 
facility, hospital, or other similar facility for fewer than 90 days 
and met all of the criteria in paragraph (1), before entering that 
facility; or
    3. A family with an adult head of household (or if there is no 
adult in the family, a minor head of household) who meets all of the 
criteria in paragraph (1), including a family whose composition has 
fluctuated while the head of household has been homeless.
    After reviewing the public comments, which are discussed in Section 
IV of this preamble, and upon HUD's further consideration of concerns 
related to the proposed definition of ``chronically homeless,'' the 
following highlights the changes that are made by this final rule.
    The cumulative total of the length of homelessness spent living in 
a place not meant for human habitation, a safe haven, or in an 
emergency shelter must be at least 12 months. The final rule provides 
that a person must have been homeless and living in a place not meant 
for human habitation, a safe haven, or in an emergency shelter for a 
period of at least 12 months as opposed to ``one year.'' This includes 
a provision that where a person has experienced at least four occasions 
of homelessness living in a place not meant for human habitation, a 
safe haven, or in an emergency shelter over a period of 3 years, the 
cumulative total of the occasions must total at least 12 months as 
opposed to ``one year.'' While the requirement is essentially the same 
as that which was included in the Rural Housing Stability Assistance 
Program proposed rule, the change clarifies HUD's intent for less 
burdensome recordkeeping requirements, as discussed in Section IV of 
this preamble.
    Establishing a break in homelessness. The final rule provides that 
a break in homelessness spent living in a place not meant for human 
habitation, a safe haven, or in an emergency shelter is considered to 
be any period of 7 or more consecutive nights where an individual or 
family is not living or residing in such a place. Stays in an 
institutional care facility (e.g., a jail, substance abuse

[[Page 75794]]

or mental health treatment facility, hospital, or other similar 
facility) for fewer than 90 days and where the individual or family had 
been living in a place not meant for human habitation, a safe haven, or 
in an emergency shelter immediately before entering the institutional 
care facility will not constitute as a break.
    Establish clear recordkeeping requirements. The final rule provides 
recordkeeping requirements at 24 CFR part 578 to help recipients and 
subrecipients of Continuum of Care Program funds understand the 
evidence that must be kept in the program participant file in order to 
demonstrate that an individual or family met the definition of 
``chronically homeless'' at the point of entry into a program, when 
required. In general, the recordkeeping requirements establish HUD's 
preferred order of documentation; provide clarity about how the length 
of time of homelessness spent living in a place not meant for human 
habitation, a safe haven, or in an emergency shelter must be 
documented; and provide documentation standards for documenting 
disability.
    Technical and additional clarifying changes. In addition to the 
changes highlighted above, this final rule also includes technical and 
minor clarifying changes to certain proposed regulatory provisions. 
Several of these changes are in response to requests by commenters for 
clarification, and are further discussed in Section IV of this 
preamble. HUD's response to public comments identifies where the final 
rule makes these changes.

V. Discussion of the Public Comments

A. The Comments, Generally

    The public comment period on the definition of ``chronically 
homeless'' portion of the Rural Housing Stability Assistance Program 
proposed rule closed on May 28, 2013, and HUD received 177 public 
comments related to this definition. HUD also received 23 comments for 
the Rural Housing Stability Assistance Program proposed rule unrelated 
to the definition of ``chronically homeless'' and will respond to those 
comments in the final rule for the Rural Housing Stability Assistance 
Program. Regarding the public comments on the definition of 
``chronically homeless,'' HUD received comments from a variety of 
sources: Advocacy groups, service providers, case managers, State and 
local government agencies, nonprofit organizations, private companies, 
and private citizens.
    General concerns most frequently expressed by commenters about the 
proposed definition were: (1) The length of time an individual or 
family must be homeless and living in a place not meant for human 
habitation, a safe haven, or in an emergency shelter based on the 
proposed definition was too long and would require households to 
experience longer periods of homelessness in order to qualify as 
chronically homeless, and (2) documenting chronically homeless status 
based on the proposed definition would be too burdensome.
    Regarding the first concern, it is not HUD's intent to make an 
individual or family experience a longer period of homelessness. 
Rather, HUD's primary intent is to align the period of time of those 
experiencing occasional homelessness with that of those who are 
experiencing continuous homelessness. This will also ensure that 
individuals and families who already meet these criteria are 
prioritized for assistance, that recipients and subrecipients can 
demonstrate to HUD that they are complying with the requirements 
established by HUD, and that HUD is able to make its required reports 
to Congress. Where there are no persons within a Continuum of Care that 
meet the definition of ``chronically homeless,'' permanent supportive 
housing beds that are required through their grant agreement to serve 
this population may serve other vulnerable and eligible households. HUD 
will provide guidance to assist communities on which populations to 
prioritize when there are no persons that meet the definition of 
``chronically homeless'' established in this rule.
    Regarding the second concern, it is critical to note that 
recipients of Continuum of Care Program-funded permanent supportive 
housing projects with one or more beds that are required through a 
grant agreement to serve individuals and families experiencing chronic 
homelessness have always been required to document the chronically 
homeless status of program participants that will occupy those beds, at 
the point of program entry. Failure to maintain appropriate 
documentation of a household's eligibility is the monitoring finding 
that most often requires recipients of HUD funds to repay grant funds. 
HUD recognizes that not including recordkeeping requirements for 
documenting chronically homeless status in the regulatory text of the 
Rural Housing Stability Assistance Program proposed rule resulted in 
some confusion about HUD's expectations and resulted in a number of 
commenters raising concerns that recordkeeping requirements would be 
overly burdensome for those recipients. Therefore, this final rule 
includes, in the regulatory text, recordkeeping requirements to assist 
Continuum of Care Program recipients in appropriately documenting 
chronically homeless status that take into consideration that 
documenting the length of time homeless will be challenging. In 
addition, HUD notes that the revised Homeless Management Information 
System Data Standards published in May 2014 include data elements that 
are aligned with this definition in order to more easily allow for 
chronically homeless persons to be identified through the Continuum of 
Care's Homeless Management Information System.

B. The Definition of ``Chronically Homeless'' in 24 CFR Parts 91 and 
578

The Comments Generally
    Comment: Concern that the expert panel was mainly composed of 
researchers and not practitioners. Several commenters expressed 
disappointment that the expert panel hosted by HUD to develop the 
proposed definition of ``chronically homeless'' was composed mostly of 
researchers and not practitioners or technicians. These commenters 
recommended that HUD invite stakeholders responsible for service 
delivery to such discussions prior to final rulemaking.
    HUD Response: Although several of the experts that participated in 
the convening were researchers, HUD also included several 
practitioners. As stated in the summary of the convening, posted at 
www.hudexchange.info/rhsp, the group of experts included researchers, 
advocates, homeless services providers, and homelessness technical 
assistance providers, as well as Federal representatives from HUD, the 
United States Interagency Council on Homelessness, and the U.S. 
Department of Health and Human Services. In addition, by publishing the 
definition of ``chronically homeless'' one more time as a proposed 
definition, HUD provided a third opportunity for stakeholders 
responsible for service delivery and reporting to submit their comments 
on the proposed definition of ``chronically homeless.''
    Comment: Definition of ``chronically homeless'' should have been 
issued separately from the Rural Housing Stability Assistance Program 
proposed rule. A few commenters stated that in order to solicit the 
most comments on the definition of ``chronically homeless,'' requesting 
comments on the definition of ``chronically homeless''

[[Page 75795]]

should have been a separate notice from the Rural Housing Stability 
Assistance Program proposed rule since the definition will apply to all 
programs authorized by the statute.
    HUD Response: HUD's proposed rule on the Rural Housing Stability 
Assistance Program offered an opportunity to further solicit public 
comment on HUD's definition of ``chronically homeless.'' HUD first 
introduced the definition of ``chronically homeless'' as part of its 
``Emergency Solutions Grants program and Consolidated Plan Conforming 
Amendments interim rule,'' not as a stand-alone rule on defining 
chronically homeless. Although HUD did not solicit public comment on 
specific aspects of the definition of ``chronically homeless'' in its 
Continuum of Care Program rule, HUD did address the definition in that 
rule, and informed interested parties of its intent to solicit further 
public comment. As the commenters note, the definition of ``chronically 
homeless'' applies to all of HUD's homeless assistance programs. 
Soliciting comments on HUD's proposed definition in connection with 
solicitation of comments on the Emergency Solutions Grants program 
interim rule or on the Rural Housing Stability Assistance Program rule 
did not diminish the importance of this definition, but rather 
underscored the significant role that this definition will have in each 
of these programs, and underscores the value that HUD placed on 
receiving public comment on this definition. Although HUD did not issue 
the definition of ``chronically homeless'' as a stand-alone proposed 
rule, it is HUD's intent to issue a final rule solely on the 
definition.
    Comment: HUD needs to account for estimated hours and costs to 
service providers trying to meet requirements of the definition. A few 
commenters requested that HUD account for the total estimated hours and 
financial costs it would take service providers to complete the 
requirements of this rule.
    HUD Response: This final rule establishes the final definition of 
``chronically homeless'' by incorporating the definition into 24 CFR 
parts 91 and 578. HUD requires Continuum of Care Program recipients of 
permanent supportive housing that are required to serve persons 
experiencing chronic homelessness to determine and document that any 
individual or family assisted meets the definition of ``chronically 
homeless'' as defined in this final rule. Each recipient must obtain 
documentation of homeless status, disability, and the specific period 
of time the individual or head of household was living in an emergency 
shelter, safe haven, or place not meant for human habitation. The 
burden for collecting the required homeless status and disability 
information was considered in the burden estimates for the Continuum of 
Care Program interim rule (77 FR 45421). The public had the opportunity 
to provide comments on those estimates during the public comment 
period. In some instances, the documentation obtained under the 
existing burden of the Continuum of Care Program interim rule will 
already meet the standards for documenting the length of time an 
individual or head of household resided in a place not meant for human 
habitation, an emergency shelter, or a safe haven as required in this 
rule. In other instances, recipients and subrecipients may need to 
spend more time acquiring the documents necessary to show that an 
individual meets the timeframe necessary residing in a place not meant 
for human habitation, an emergency shelter, or a safe haven to qualify 
as ``chronically homeless.'' See Section VI, Information Collection 
Requirements, for more information about HUD's change to its existing 
recordkeeping and reporting requirements.
Comments Related to Data Collection and Reporting
    Comment: Problems in reporting such information in Homeless 
Management Information Systems. Several commenters expressed concerns 
about how to document and report chronically homeless status in their 
Homeless Management Information System. One commenter pointed to the 
variations across the country around how chronic homelessness is 
reported in the Homeless Management Information System and noted that 
Continuums of Care would not be able to uniformly and accurately 
document homelessness spent living in a place not meant for human 
habitation, a safe haven, or in an emergency shelter over a 3-year 
period in their Homeless Management Information Systems. Other 
commenters stated that many Homeless Management Information Systems are 
closed and do not share information with other Continuums of Care, 
which could create a problem in documenting chronically homeless status 
for homeless persons moving between Continuums of Care. Another 
commenter expressed concern that data entry personnel and case managers 
do not have the expertise to determine whether a person meets the 
criteria to be classified as chronically homeless, and concern about 
the time service providers would spend on data entry rather than on 
providing services. Further, the commenter requested that HUD improve 
the Homeless Management Information System and the data entry process 
and establish data elements to capture a person's chronically homeless 
status.
    HUD Response: HUD acknowledges that Homeless Management Information 
Systems across the country do not always collect data on chronically 
homeless status uniformly. HUD believes that the promulgation of its 
definition of ``chronically homeless'' will assist communities in 
collecting consistent data. HUD also included specific data elements in 
the 2014 Homeless Management Information System Data Standards to allow 
for uniform data collection on chronically homeless status. These data 
standards take into account that not all chronically homeless persons 
have a service interaction with the Continuum of Care's Homeless 
Management Information System and allow for history of homelessness to 
be documented based on the information provided by the program 
participant. It should also be noted that it is not HUD's expectation 
that the person entering data into the Homeless Management Information 
System also be responsible for determining program eligibility.
    Comment: Proposed definition impedes ability to compare data. Many 
commenters expressed concerns that the new definition of ``chronically 
homeless'' would impede their ability to compare current and future 
data with data from previous years. A few commenters stated that the 
new definition would hinder efforts to measure ``real'' progress in 
reducing the chronically homeless population, as data would not be 
comparable.
    HUD Response: HUD acknowledges that the change in the definition of 
``chronically homeless'' may mean that the number of persons 
experiencing chronic homelessness within a community may change as a 
result of the new definition. However, this more detailed definition is 
necessary in order to ensure that communities are consistently using 
the same criteria when considering whether a person is chronically 
homeless. A uniformly applied definition also serves to ensure that HUD 
has more consistent and accurate information. Previously, communities 
used various standards for the length of time to define an ``episode'' 
for a person to be considered chronically homeless, which made it 
difficult for HUD to compare data nationally. The definition of 
``chronically homeless'' in the final rule will ensure consistency in 
the data nationwide. HUD notes that this will

[[Page 75796]]

only affect the number of persons considered to be chronically homeless 
and not the Continuum of Care's total homeless count.
Comments Related to Community Strategies To Serve the Chronically 
Homeless, Including Eligibility for Housing Resources
    Comment: A narrow definition of ``chronically homeless'' will 
result in an increase in vacancies in units designated for the 
chronically homeless and individuals and families spending a longer 
time in a place not meant for human habitation. Several commenters 
expressed concerns that the more narrow definition of ``chronically 
homeless'' included in the proposed rule would result in an increase in 
vacant units otherwise dedicated to the chronically homeless. Several 
commenters suggested that they would have difficulty locating 
individuals or families who meet the criteria of the proposed 
definition.
    One commenter expressed concern that the proposed definition would 
affect local and State governments, in addition to homeless 
individuals, stating that the new definition would result in more 
people being on the street for longer periods of time resulting in the 
following: an increased demand for emergency shelters, a burden on 
local police services since more individuals would be in unstable 
situations, and a decrease in property values. The commenter suggested 
that HUD phase in the new definition over a few years by incrementally 
increasing the cumulative episode threshold in order to provide 
localities time to plan their budgets and give homeless individuals 
time to adjust their expectations.
    Another commenter requested guidance on what providers with 
dedicated permanent supportive housing beds should do if they are 
unable to locate persons that meet this definition.
    Several commenters recommended that HUD establish a ``tiering 
system'' where communities that are unable to identify people who meet 
requirements for ``chronically homeless'' may target permanent 
supportive housing for other vulnerable homeless persons. Similarly, 
other commenters recommended that HUD consider a prioritization policy 
for homeless individuals eligible for permanent supportive housing and 
remove the requirement that 100 percent of new permanent supportive 
housing units be designated for the chronically homeless.
    HUD Response: HUD recognizes that the definition of ``chronically 
homeless'' is not inclusive of all vulnerable homeless populations; 
however, HUD has intentionally focused the definition of ``chronically 
homeless'' on those persons with the longest histories of homelessness 
and with the highest need and believes that this is a reasonable 
implementation of the statutory requirements established in section 401 
of the McKinney-Vento Act. The definition is not intended to require 
individuals and families to have longer periods of homelessness before 
being served; rather, the definition allows for persons who already 
meet such criteria to be prioritized for Continuum of Care Program-
funded permanent supportive housing dedicated to persons experiencing 
chronic homelessness.
    In addition, HUD published guidance \1\ to clarify that, to the 
extent that there are no persons who meet the criteria of chronic 
homelessness included in this rule, Continuum of Care Program-funded 
dedicated permanent supportive housing providers are not required to 
keep a unit vacant. Instead, the recipient may house non-chronically 
homeless individuals or families who are eligible for permanent 
supportive housing generally and are encouraged to prioritize those 
homeless individuals or families who are the most vulnerable or at risk 
of becoming chronically homeless.
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    \1\ Notice CPD-14-012: Prioritizing Persons Experiencing Chronic 
Homelessness in Permanent Supportive Housing and Recordkeeping 
Requirements for Documenting Chronic Homeless Status. Available at: 
https://www.hudexchange.info/resource/3897/notice-cpd-14-012-prioritizing-persons-experiencing-chronic-homelessness-in-psh-and-recordkeeping-requirements/.
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    Comment: Definition does not target those with longest histories 
and most severe cases of homelessness. One commenter stated that the 
proposed definition of ``chronically homeless'' does not target those 
with the longest histories and most severe cases of homelessness, such 
as those with histories of homelessness that have four or more episodes 
in more than the past 3 years.
    HUD Response: HUD recognizes that there are individuals and 
families with long histories of homelessness that may not meet the 
definition of ``chronically homeless'' included in the final rule. For 
example, individuals and families who have been homeless and living in 
a place not meant for human habitation, a safe haven, or in an 
emergency shelter for 12 months or longer in the past 3 years but where 
there were fewer than four distinct occasions and the current occasion 
lasted less than 12 months would not be considered chronically 
homeless. However, because the statutory definition of ``chronically 
homeless'' requires at least four occasions over a 3-year time frame, 
the number of occasions necessary to be considered chronically homeless 
cannot be changed. Individuals or families who have longer histories of 
homelessness spent living a place not meant for human habitation, a 
safe haven, or in an emergency shelter and who have experienced at 
least four occasions in the last 3 years are considered chronically 
homeless so long as the adult head of household (or minor head of 
household where no adult is present) has a disability as required by 
the definition. However, an individual or family who has a history of 
homelessness spent living in a place not meant for human habitation, a 
safe haven, or in an emergency shelter where the period of homelessness 
has not totaled 12 months either continuously or over a period of at 
least four occasions in the past 3 years would not be considered 
chronically homeless. For this reason, HUD has provided flexibility 
around what constitutes an occasion of homelessness and how to document 
the period of homelessness while still maintaining a uniform standard 
to ensure consistency across the country. HUD encourages recipients of 
Continuum of Care Program-funded permanent supportive housing not 
dedicated to the chronically homeless to prioritize persons that are 
most at risk of becoming chronically homeless and who are the most 
vulnerable.
    Comment: Periods of homelessness do not automatically correlate to 
need. A commenter stated that those who have been homeless for shorter, 
sporadic periods of time that do not cumulatively total 365 days might 
be more physically and mentally prepared to use permanent supportive 
housing than those who have had longer episodes of homelessness. 
Similarly, one commenter stated that a longer length of time spent 
homeless does not necessarily indicate a higher level of need, and 
those who have been homeless for shorter periods might make better use 
of housing services.
    HUD Response: HUD has determined that the definition of 
``chronically homeless'' in section 401 of the McKinney-Vento Act 
should define those persons as chronically homeless that have had the 
longest histories of homelessness and highest need. The definition of 
``chronically homeless'' set forth in 24 CFR parts 91 and 578 
intentionally narrows the statutory definition to further ensure that 
limited resources targeted to this population are used to serve persons 
with the longest histories of homelessness and highest need. HUD 
acknowledges that there are

[[Page 75797]]

other factors that might also correlate to need, however, length of 
time residing in emergency shelters, safe havens, and places not meant 
for human habitation is one factor of need, and when combined with the 
statutory requirement that the head of household have a disabling 
condition, HUD has determined that it effectively defines those persons 
with the highest needs as chronically homeless. Therefore, the 
definition of ``chronically homeless'' included in this final rule 
maintains the requirement that was included in the Rural Housing 
Stability Assistance Program proposed rule, that the four or more 
separate occasions of homelessness living in a place not meant for 
human habitation, a safe haven, or in an emergency shelter must total 
12 months or include additional criteria related to vulnerability. HUD 
also recognizes that persons meeting the definition of ``chronically 
homeless'' included in the final rule may require a higher level of 
support in order to obtain and maintain housing. Not all permanent 
supportive housing is limited to serving persons that meet the 
definition of chronically homeless. HUD has encouraged Continuums of 
Care and recipients of Continuum of Care Program-funded permanent 
supportive housing to take other factors, such as vulnerability, into 
account when prioritizing households for permanent supportive housing.
    Comment: Require jurisdictions to produce a plan to specifically 
address dealing with chronic homelessness. A commenter stated that 
every region in the country should be required to have a plan that 
deals directly with the chronically homeless to show proof that they 
have worked on the issue through a statement with a local provider.
    HUD Response: Each Continuum of Care submits its plan for 
addressing chronic homelessness through the Continuum of Care 
Application submitted under each Notice of Funding Availability for the 
Continuum of Care Program. This requirement will continue to be 
addressed through the Continuum of Care Program Competition; therefore, 
no additional requirements have been added to the final rule. In 
addition, each Consolidated Plan jurisdiction is required to develop a 
homeless strategy and this strategy must address the needs of, and 
resources available to, chronically homeless persons. This requirement 
will continue to be addressed through the Consolidated Plan 
requirements at 24 CFR part 91.
Comments Related to the Definition
    Comment: Adhere to the definition of ``chronically homeless'' 
included in the conforming amendments to the Consolidated Plan 
published with the Emergency Solutions Grants program interim rule. 
Several commenters stated that they preferred the definition of 
``chronically homeless'' that was included in the conforming amendments 
to the Consolidated Plan published with the Emergency Solutions Grants 
program interim rule, which defined a homeless occasion as a period of 
at least 15 days.
    HUD Response: The majority of public comments received on the 
definition of ``chronically homeless'' that was included in the 
conforming amendments to the Consolidated Plan published with the 
Emergency Solutions Grants program interim rule related to the 
requirement that to be considered an ``occasion'' a period of 
homelessness had to be a period of at least 15 days. Several commenters 
stated that the period of 15 days to define an ``occasion'' was 
arbitrary and was not the ideal definition. Upon review of these 
comments, HUD concluded that the 15-day standard did not effectively 
target persons with the longest histories of homelessness and highest 
level of need. The definition in the conforming amendments to the 
Consolidated Plan published with the Emergency Solutions Grants interim 
rule would have allowed for an individual or family experiencing 
occasions of homelessness to be considered chronically homeless within 
a period of as few as 65 days, while persons experiencing homelessness 
without a break would have to be homeless and residing in a place not 
meant for human habitation, in a safe haven, or an emergency shelter 
for at least 1 year. Consistent with research,\2\ HUD has determined 
that requiring 1 year (12 months) of homelessness living in a place not 
meant for human habitation, a safe haven, or an emergency shelter will 
ensure that the definition focuses on those persons with the longest 
histories of such homelessness and highest needs. The definition 
included in this final rule allows for limited resources to be 
effectively targeted and does not adopt the definition originally 
published in 24 CFR part 91.
---------------------------------------------------------------------------

    \2\ Thomas Byrne and Dennis P. Culhane. ``Testing Alternative 
Definitions of Chronic Homelessness'' Psychiatric Services 66.5 
(2015). Available at: http://works.bepress.com/dennis_culhane/146.
---------------------------------------------------------------------------

    Comment: Use ``vulnerability index'' to measure chronic 
homelessness. Several commenters proposed alternative definitions for 
targeting the homeless population most in need of permanent supportive 
housing. Several commenters recommended that HUD replace the proposed 
definition of ``chronically homeless'' with ``homeless persons 
determined to be vulnerable through the application of a standardized 
vulnerability index tool'' that would be developed with stakeholders. 
These commenters also stated that homeless persons could be assigned 
spots on a community's ``vulnerability list'' so those most in need of 
services could be identified.
    HUD Response: HUD agrees that it is important to consider a 
person's vulnerability or the severity of a person's needs when 
determining housing placement; however, the statutory definition of 
``chronically homeless'' does not permit HUD to adopt the definition 
proposed by the commenters. HUD recognizes that individuals and 
families should be prioritized for permanent supportive housing under 
the Continuum of Care Program based on the severity of their needs. To 
this point, HUD has provided guidance to recipients of all Continuum of 
Care Program-funded permanent supportive housing encouraging Continuums 
of Care and permanent supportive housing providers to take other 
factors, such as vulnerability, into account when prioritizing 
households for permanent supportive housing.
    Comment: Allow communities to define ``chronically homeless'' 
locally. A commenter suggested that establishing a global definition of 
``chronically homeless'' has limitations and that communities should be 
encouraged to set their own ``prioritization benchmarks'' based on 
local conditions.
    Another commenter recommended that the term ``chronic'' is a 
medical term, and is not an appropriate term to measure severity of 
homelessness, and suggested that HUD allow local Continuums of Care to 
submit their own definitions based on people with serious health 
conditions who have experienced multiple and/or long episodes of 
homelessness.
    Finally, another commenter suggested that HUD provide rural 
communities the flexibility to determine what is meant by ``not meant 
for human habitation'' since many of these communities do not have 
condemnation procedures like those often used by urban areas.
    HUD Response: The definition of ``chronically homeless'' in section 
401 of the McKinney-Vento Act provides the basis for the definition of 
``chronically homeless'' set forth in 24 CFR parts 91 and 578. Although 
the Act does allow

[[Page 75798]]

HUD the discretion to allow communities to define certain terms such as 
``not meant for human habitation'' locally, HUD has determined that all 
Continuums of Care must use the same standard when determining whether 
or not an individual or family is chronically homeless. Using a 
universal standard will also allow HUD to track progress, nationally, 
on the goal of ending chronic homelessness.
    Comment: Include individuals and families who meet the McKinney-
Vento Homeless Assistance Education Act in the definition of 
chronically homeless. A commenter stated that individuals or families 
who meet the McKinney-Vento Homeless Education Act definition of 
``homeless'' should also be considered chronically homeless.
    HUD Response: The definition of ``chronically homeless'' included 
in this final rule reflects the statutory definition in section 401 of 
the Act. The statutory definition provides specific minimum criteria 
that an individual or family must meet in order to be defined as 
chronically homeless. Although HUD has the discretion to make the 
definition of ``chronically homeless'' more narrow in the final rule, 
the definition must include the minimum statutory requirements. 
Further, it is HUD's intention to ensure that the definition of 
``chronically homeless'' targets those persons with the longest 
histories of homelessness who have been living in a place not meant for 
human habitation, a safe haven, or in an emergency shelter. Therefore, 
HUD has chosen to not change the final rule to include all individuals 
and families who meet the definition in section 725(2) of the McKinney-
Vento Act. HUD recognizes that there are vulnerable populations who are 
not included in this definition of ``chronically homeless.'' The 
definition of ``chronically homeless'' is not intended to include all 
vulnerable populations.
    Comment: HUD should consider persons chronically at risk of 
homelessness the same as chronically homeless. A commenter suggested 
that HUD should treat ``chronically homeless'' and ``chronically at 
risk of homelessness'' as the same so that those who have not been able 
to maintain permanent supportive housing because of a loss of income 
due to a disability and inability to attain a permanent voucher are not 
penalized.
    HUD Response: HUD recognizes that there are vulnerable populations 
who are not included in this definition of ``chronically homeless''; 
however, defining chronically homeless more narrowly will allow limited 
resources to be prioritized for persons with the longest histories of 
homelessness and who are most likely to have the most severe service 
needs, which is consistent with the requirements established in section 
401 of the McKinney-Vento Act. The statute does not support defining 
persons who are ``at risk of homelessness'' (on a recurring basis or 
otherwise) as chronically homeless as these persons do not meet the 
definition of homeless or chronically homeless as set forth in the Act. 
HUD reminds stakeholders that individuals and families who meet the 
definition of at risk of homelessness might be eligible for 
homelessness prevention assistance under either the Continuum of Care 
Program, if the Continuum of Care is a High Performing Community, or 
the Emergency Solutions Grants program.
    Comment: Provide for different definitional criteria for 
``chronically homeless'' for youth and families with children. Several 
commenters suggested that the definition of ``chronically homeless'' 
should have different definitional criteria for families with children 
and youth than for adult individuals. One commenter suggested that 
there should be different cumulative time frames for individuals, 
families, and youth. Specifically, the commenter proposed, ``that the 
definition be changed so that a chronically homeless individual is 
defined as one who is homeless for at least 1 year or for a cumulative 
total of 180 days in the previous 3 years over multiple occasions, a 
chronically homeless family is defined as one that is currently 
homeless and has moved multiple times in the previous 12 months, where 
an adult and/or child family member is involved with more than one 
public service system, and a category is added for chronically homeless 
youth, who would be currently homeless individuals under the age of 25 
who have moved multiple times in the previous 6 months, and this 
pattern of housing instability can be expected to continue.''
    HUD Response: The single statutory definition of ``chronically 
homeless'' is inclusive of individuals, families with children, and 
unaccompanied youth and sets a minimum threshold that must be met for 
any person, regardless of age or household composition. HUD strived to 
reasonably implement the statutory definition by clarifying in the 
regulation that, for family households, only the head of household must 
meet the criteria for individuals who are defined as chronically 
homeless. The definition in the regulation also allows for changes to 
family composition over time. Beyond this clarification, creating a 
broader or less restrictive threshold for unaccompanied youth or 
families with children would undermine one of the goals of the 
``chronically homeless'' definition, which is to help ensure that 
resources are focused on individuals and families with the longest 
experiences of homelessness spent living in a place not meant for human 
habitation, a safe haven, or in an emergency shelter. In addition, a 
person's status as part of a family may change and a youth may become 
an adult during his or her time living in an emergency shelter, safe 
haven, or place not meant for human habitation. Therefore, a single 
definition helps ensure that an individual's status does not change 
depending on whether he or she is part of a family at the time of 
intake or turns 25. Therefore, in the final rule, HUD has maintained 
that the standard for qualifying as chronically homeless is the same 
for all individuals, families with children, and unaccompanied youth. 
Families with children and unaccompanied youth, like single adults, who 
do not meet the criteria of chronically homeless might still meet the 
definition of ``homeless'' and if they do they are eligible for 
assistance under the Continuum of Care Program and Emergency Solutions 
Grants program.
    Comment: Define family in the definition of ``chronically 
homeless.'' Several commenters sought clarification on how HUD defines 
``family'' for the purposes of defining ``chronically homeless.'' One 
commenter asked that HUD define the term ``family'' in a manner 
consistent with how it is defined in the Equal Access to Housing in HUD 
Program Regardless of Sexual Orientation or Gender Identity final rule. 
Another commenter expressed confusion over whether a chronically 
homeless family must have a child under the age of 18. Another 
commenter stated that the term family is ``misused to identify a 
demographic of a household and that the term ``household'' should be 
defined consistently with the proposed data standards.''
    HUD Response: The proposed definition of ``chronically homeless'' 
did not define the term ``family.'' The Equal Access to Housing in HUD 
Programs Regardless of Sexual Orientation or Gender Identity final rule 
provides the following definition of ``family'' in 24 CFR 5.403 which 
applies to programs authorized under the Act. The definition ``Family'' 
includes, but is not limited to, the following, regardless of actual or 
perceived sexual orientation, gender identity, or marital

[[Page 75799]]

status: (1) A single person, who may be an elderly person, displaced 
person, disabled person, near-elderly person, or any other single 
person; or, (2) A group of persons residing together, and such group 
includes, but is not limited to, a family with or without children, an 
elderly family, a near-elderly family, a disabled family, a displaced 
family, and remaining members of a tenant family.
    This definition of ``family'' applies in both the Emergency 
Solutions Grants and Continuum of Care Program rules. The McKinney-
Vento Act distinguishes individuals from families. Therefore, paragraph 
(1) of the definition of ``family'' under the Equal Access Rule is 
considered an individual for the purposes of the definition of 
``chronically homeless'' included in this final rule. This means that a 
chronically homeless family is any group of persons presenting for 
assistance together, where the head of household meets all of the 
criteria established in this final rule, regardless of marital status, 
actual or perceived sexual orientation, or gender identity, with or 
without children and irrespective of age or relationship. A child who 
is temporarily away from the home because of placement in foster care 
is considered a member of the family.
    Comment: Clarify that any family member who meets the criteria of 
chronically homeless can qualify the family as chronically homeless. A 
few commenters requested that any member of the family could make the 
entire family meet the definition of ``chronically homeless.'' A 
commenter recommended that HUD consider revising the definition of 
``chronically homeless'' specifically to allow for a minor child in a 
family to qualify the family household as chronically homeless. Another 
commenter recommended only that the children, instead of the adult head 
of household, be able to have one of the listed disabling conditions 
and qualify the family as chronically homeless because the barriers a 
disability presents to an individual are similar to the barriers faced 
by a parent of a child with a disability. Similarly, one commenter 
proposed adding language to clarify that the members of a family 
household all qualify as chronically homeless based on the head of 
household regardless of changes within the household composition.
    HUD Response: The statutory definition of ``chronically homeless'' 
dictates that the adult head of household (or minor head of household 
if there is no adult in the family) must meet the criteria set forth in 
the definition. Therefore, the final rule cannot be revised from the 
proposed rule to allow for any household member besides the head of 
household to qualify the family as chronically homeless; this includes 
experiencing the occasion(s) of homelessness and being diagnosed with 
the disabling condition.
    However, because it is the adult head of household who qualifies a 
family as chronically homeless, the whole family is considered 
chronically homeless even if the household composition changed during 
the course of the head of household's homelessness. Language stating 
this was included in the proposed definition of ``chronically 
homeless'' and remains in the final definition of ``chronically 
homeless.'' For example, if an adult head of household has a qualifying 
disability and has been homeless continuously for 12 months and has 
been accompanied by another family member for only part of that time 
frame, the whole household meets the definition of a chronically 
homeless family.
    Comment: Eliminate the requirement that to be chronically homeless 
an individual or family must experience four separate occasions of 
homelessness. Several commenters requested that HUD eliminate the 
requirement for four separate occasions of homelessness in favor of 
considering anyone that has been homeless for a cumulative total of 365 
days over the past 3 years to be considered chronically homeless. One 
commenter stated that occasions are ``too sloppy to define'' and the 
concept is of little value.
    HUD Response: HUD recognizes that the requirement for four or more 
separate occasions of homelessness over a 3-year period will not 
include individuals or families who have experienced only two occasions 
of homelessness over a 3-year period where the cumulative total is 12 
months or greater. However, the requirement of four or more occasions 
is statutory and included in the definition of ``chronically homeless'' 
in the McKinney-Vento Act and, therefore, cannot be changed without a 
change to the statute. For this reason, HUD has provided maximum 
flexibility within the statutory framework about what constitutes a 
break between occasions and how to document the period of homelessness. 
In addition, HUD notes, for those stakeholders who submitted this 
comment because of concerns about these individuals and families not 
being eligible for needed resources, that the Continuum of Care and 
Emergency Solutions Grants programs fund a variety of housing and 
services for individuals and families who are homeless, but do not meet 
the criteria of chronically homeless.
    Comment: Include a cumulative time frame for the four or more 
occasions but make that time frame less than 1 year. Many commenters 
disagreed with the proposed rule's cumulative length of time the four 
or more occasions must total in order for an individual or family to be 
considered chronically homeless. A few commenters proposed reducing the 
requirement from 1 year to 120 days. Several commenters suggested that 
the time frame should be reduced from 1 year to 6 months or 180 days. 
One commenter proposed that this 6-month time frame should apply to 
both occasional and consecutive periods of homelessness.
    HUD Response: The statutory definition of ``chronically homeless'' 
requires individuals and families who meet the definition through a 
continuous occasion to have been homeless and living or residing in a 
place not meant for human habitation, safe haven, or in an emergency 
shelter for at least 1 year. The statute set a different standard for 
persons who experience frequent occasions of homelessness, requiring at 
least four occasions over 3 years. The statute was silent on what 
qualified as an occasion of homelessness. HUD has determined that 
requiring four or more occasions to total at least 12 months would set 
a threshold of need comparable to the requirement for a continuous 
episode. This will help ensure that resources that are dedicated to 
serving chronically homeless persons are targeted to individuals and 
families with the longest experiences of homelessness regardless of 
whether they meet the threshold for chronic homelessness through a 
continuous occasion or through multiple occasions.
    Comment: For the cumulative time frame for four or more occasions, 
count the time in months as opposed to days. One commenter proposed 
that the definition be revised to count homeless occasions in terms of 
months and not days. Another commenter recommended that the actual 
number of days homeless need not be counted and a single encounter with 
a service provider on a single day in one month could count for 
homeless status for the entire month.
    HUD Response: The definition of ``chronically homeless'' included 
in the proposed rule did not specify how the time frame should be 
counted and instead just stated that the cumulative total of occasions 
must total at least 1 year. HUD agrees with the comment that changing 1 
year to 12 months helps provide clarification about how to count

[[Page 75800]]

an individual or family's time spent in places not meant for human 
habitation, in a safe haven or in an emergency shelter. Furthermore, 
since HUD did not include recordkeeping requirements in the proposed 
rule, it was not clear that HUD does not intend to make homeless 
service providers document every day of homelessness spent living in a 
place not meant for human habitation, a safe haven, or in an emergency 
shelter to equal 365 days, for either continuous or occasional 
homelessness. HUD agrees that counting in months instead of days is a 
more reasonable requirement for documentation purposes. In addition, 
HUD agrees with the comment that a single encounter with a homeless 
service provider on a single day within 1 month would be sufficient to 
count the individual or family as homeless for the entire month. HUD 
understands that there is not an Homeless Management Information System 
record for every interaction or for every day in which a person is 
homeless and did not want to create a recordkeeping requirement that 
was overly burdensome. This requirement has been clarified in the 
recordkeeping requirements; however, HUD has also added language 
stating that this does not apply if the provider has evidence of a 
break, defined as 7 or more consecutive nights not living in a safe 
haven or in an emergency shelter, or living in a place meant for human 
habitation, during that month. Again, this will help ensure that 
resources dedicated to persons experiencing chronic homelessness are 
targeted to individuals and families with the longest experiences of 
homelessness. When considering how to determine a break, HUD 
understands that people often find themselves with a place to stay for 
a couple of nights (hotel, with a friend, etc.), however, their primary 
nighttime residence is still a place not meant for human habitation, an 
emergency shelter, or a safe haven. HUD determined that up to 7 nights 
is a reasonable period of time for an individual or family to stay for 
a few nights in a place other than an emergency shelter, a safe haven, 
or in a place that is meant for human habitation without considering it 
a break in their total length of time homeless for purposes of 
determining chronically homeless status.
    Rule clarification. To clarify that, for documentation purposes, 
the cumulative length of time of occasions must total 12 months instead 
of 365 days, the language in paragraph (1)(ii) of the definition of 
``chronically homeless'' has been revised to provide that the homeless 
individual with a disability has been homeless and living as described 
continuously for at least 12 months or on at least 4 separate occasions 
in the last 3 years, as long as the combined occasions equal at least 
12 months and each break in homelessness separating the occasions 
included at least 7 consecutive nights of not living in a place not 
meant for human habitation. The definition further provides that stays 
in institutional care facilities for fewer than 90 days will generally 
not constitute as a break in homelessness, but rather such stays are 
included in the 12-month total.
    In addition, to clarify the recordkeeping requirements related to 
paragraph (1)(ii), Sec.  578.103(a)(4) has been revised to include 
language on how documenting a single encounter within 1 month is 
sufficient documentation to count the individual or family as homeless 
for the entire month.
    Comment: Give discretion to Continuums of Care to determine the 
length of the occasions of homelessness. Several commenters suggested 
that Continuums of Care should be provided with the flexibility to 
determine when an individual or family is chronically homeless and 
whether they have been homeless at least four times over the past 3 
years.
    HUD Response: In order to ensure that Continuums of Care nationwide 
are defining chronically homeless consistently for counting, 
eligibility, and reporting purposes, it is necessary to have one 
uniform definition of ``chronically homeless'' that applies nationwide. 
A uniform definition will allow for data from each community to be 
compared nationally, and that persons with the longest histories of 
homelessness who have been living in a place not meant for human 
habitation, a safe haven, or in an emergency shelter and with the most 
severe service needs are prioritized for assistance in permanent 
supportive housing. As more communities meet the Administration's goal 
of ending chronic homelessness, HUD will use the annual Continuum of 
Care Program Competition Notice of Funding Availability to reflect 
changes in priorities. However, the definition of ``chronically 
homeless'' will not change, as it is meant to encompass those homeless 
persons with the longest histories of living in places not meant for 
human habitation, in a safe haven, or in emergency shelters and who 
have the most severe service needs, and to the extent that there are 
persons that meet this criteria within a Continuum of Care they should 
always be counted and be prioritized for assistance.
    Comment: Need guidance on what constitutes as a break in 
homelessness. Many commenters requested guidance on what constitutes as 
a break in homelessness in order to distinguish between occasions. One 
commenter requested guidance on how to document such breaks in Homeless 
Management Information System. Another commenter suggested that 
temporary housing situations of less than 1 week not constitute as a 
break. Several commenters suggested that periods of ``couch surfing'' 
should not constitute as a break in homelessness.
    HUD Response: HUD agrees that in order to accurately document 
occasions of homelessness, it is necessary to understand and document 
the housing situation that ended the occasion; therefore, HUD has 
clarified in the recordkeeping requirements that a break in 
homelessness is any period of 7 or more consecutive nights where the 
individual or family is not residing in a safe haven, or in an 
emergency shelter or is residing in a place meant for human habitation. 
In addition, the final rule allows for stays in an institutional care 
facility where the individual has been residing for fewer than 90 days 
to not constitute as a break in homelessness either. HUD provided this 
clarification because of a comment provided through the comment process 
on the Continuum of Care Program interim rule recognizing that many 
hard-to-serve chronically homeless individuals and families have an 
opportunity to spend 1 or 2 nights on someone's couch, in a motel using 
all or most of the beneficiary's monthly Social Security Income or 
Social Security Disability Income check, in another location that 
allows them to briefly not sleep in a place not meant for human 
habitation, in an emergency shelter, or in a safe haven. HUD does not 
consider these periods of less than 7 nights a break in homelessness. 
Instead, these days would be counted towards a single occasion of 
homelessness living in a place not meant for human habitation, a safe 
haven, or in an emergency shelter. Only periods of 7 or more 
consecutive nights where the individual or family is not living in a 
place not meant for human habitation, in a safe haven, or in an 
emergency shelter would qualify as a break. Intake workers must follow 
the general recordkeeping standards of third-party evidence first, 
intake worker observation second, and self-certification of the head of 
household third, when documenting the break in homelessness.
    Rule Clarification: Section 578.3 of the final rule includes 
language in paragraph (1)(ii) of the definition of

[[Page 75801]]

``chronically homeless'' that clarifies that a break is considered to 
be 7 or more consecutive nights where the individual or family is not 
living in a place not meant for human habitation, in a safe haven or in 
an emergency shelter.
    Comment: Stays in living situations other than the streets, 
emergency shelters, or safe havens should be included in places an 
individual or family can reside and still meet the definition of 
``chronically homeless.'' Several commenters suggested that HUD 
consider expanding the definition to allow for individuals and families 
in certain living situations to be considered chronically homeless. 
Numerous commenters suggested that individuals and families who have 
been living in ``doubled up'' situations should qualify as being 
chronically homeless. One commenter stated that periods spent ``doubled 
up'' should be counted if the individual or family moves two or more 
times within 60 days. Another commenter suggested that in addition to 
periods of living in ``doubled up'' situations, the definition should 
also include those living in unsuitable housing for long periods of 
time, such as old mobile homes or cabins without electricity and 
sewage. Another commenter suggested that the definition include ``a 
person or family who does not have a permanent residence AND has moved 
two or more times in the past 60 days.''
    Several commenters asked HUD to consider stays in transitional 
housing towards a person's homeless history when determining an 
individual or family's chronically homeless status. The commenters had 
various suggestions about how such stays could be incorporated. One 
commenter suggested that stays of 90 days or less in transitional 
housing should not constitute as a break. Similarly, another commenter 
asked HUD to consider including transitional housing programs in the 
definition of ``institutional care facility,'' which would allow stays 
in transitional housing for 90 days or less to not constitute as a 
break in homelessness. Another commenter proposed that the definition 
be expanded so that persons who have been living in transitional 
housing, for any period of time, may also be considered chronically 
homeless. Finally, one commenter was concerned that excluding time in 
transitional housing would disadvantage homeless veterans who would 
otherwise be eligible for the HUD-Veterans Affairs Supportive Housing 
(HUD-VASH) program because many of those veterans are initially housed 
in transitional housing.
    HUD Response: HUD has interpreted the criteria in paragraphs (1) 
and (2) of the statutory definition by clarifying that short-term stays 
in institutional care facilities do not count as breaks in 
homelessness. HUD believes this clarification is supported by the 
widespread and longstanding recognition that persons experiencing 
chronic homelessness frequently cycle between short-term stays in 
institutional care facilities and emergency shelters, safe havens, and 
places not meant for human habitation. HUD also believes this 
widespread and longstanding recognition is implicit in paragraph (2) of 
the statutory definition, which allows certain individuals to qualify 
as chronically homeless even if they currently live in an institutional 
care facility, as opposed to an emergency shelter, safe haven, or place 
not meant for human habitation. There is nothing in the statutory 
definition to suggest that certain people should qualify as chronically 
homeless even if they are currently living in transitional housing or 
in ``doubled up'' locations as opposed to emergency shelters, safe 
havens, or places not meant for human habitation. Therefore, HUD has 
decided not to expand the qualifying residences beyond the places 
explicitly mentioned in paragraphs (1) and (2) of the statute.
    Regarding HUD-VASH, specifically, the U.S. Department of Veterans 
Affairs (VA) determines chronic homeless status at the initial intake 
to VA homeless services. Therefore, veterans who qualify as chronically 
homeless at initial intake will maintain that status throughout the 
episode of care, even if they are served in a VA program that is 
characterized as transitional housing immediately prior to entry into 
HUD-VASH.
    Comment: Clarification of how the word ``continuously'' is defined 
in the phrase ``continuously homeless for at least one year.'' A 
commenter asked how HUD is defining the word ``continuously'' in the 
phrase ``continuously homeless for at least one year'' in the 
definition of ``chronically homeless.''
    HUD Response: HUD has clarified that a break in homelessness is 
defined as 7 or more consecutive nights in a place that does not 
qualify as a place not meant for human habitation, a safe haven, or an 
emergency shelter and, therefore, does not consider it to be necessary 
to define the word ``continuously.''
    Comment: Clarification is needed on ``conditions'' versus 
``disability.'' Several commenters wrote about paragraph (1)(iii) in 
the proposed rule's definition of ``chronically homeless,'' which 
provides that a chronically homeless person is a person who can be 
diagnosed with one of the following conditions: ``substance use 
disorder, serious mental illness, developmental disability (as defined 
in section 102 of the Developmental Disabilities Assistance and Bill of 
Rights Act of 2000 (42 U.S.C. 15002)), post-traumatic stress disorder, 
cognitive impairments resulting from brain injury, or chronic physical 
illness or disability.''
    Commenters asked for clarification on what constitutes a 
``condition.'' Other commenters asked about the specific list of 
``conditions'' included in the definition. One commenter asked why the 
term ``serious mental illness'' is used instead of ``severe and 
persistent mental illness,'' while another commenter asked why ``post-
traumatic stress disorder'' was included here but not in the definition 
of ``disability'' included in the McKinney-Vento Act. Other commenters 
referenced the Homeless Management Information System Data Standards 
and recommended that they be consistent.
    Another commenter suggested that the language be revised to say 
that a chronically homeless person is a person who has been diagnosed 
with a condition as opposed to saying can be diagnosed, so that it is 
more definitive.
    Finally, one commenter said that the requirement to have a 
disability determination for each of the identified disabilities will 
cause an underreporting of disabilities, which will result in an 
underreporting of chronic homelessness.
    HUD Response: The language included in the proposed definition of 
``chronically homeless'' regarding the types of conditions a person 
must have in order to qualify as chronically homeless comes from the 
statute. HUD analyzed the list of conditions included in the statute in 
comparison with those included under the definition of ``homeless 
individual with a disability'' under the Act and determined that each 
of the ``conditions'' included under the statutory definition of 
``chronically homeless'' are also included under the definition of 
``homeless individual with a disability.'' Because an individual with 
one or more of the ``conditions'' included under the statutory 
definition of ``chronically homeless'' would qualify as a ``homeless 
individual with a disability'' under the Act, and because HUD wants to 
clarify that chronically homeless individuals and families are eligible 
for permanent supportive housing, which under the Continuum of Care 
Program interim rule means

[[Page 75802]]

``permanent housing in which supportive services are provided to assist 
homeless persons with a disability to live independently,'' HUD has 
replaced the list of ``conditions'' found in the proposed rule with the 
requirement that an individual must meet the definition of ``homeless 
individual with a disability'' in the Act. In addition, HUD has added 
to the Continuum of Care Program interim rule recordkeeping 
requirements for documenting the disability, and has created standards 
for collecting information on disability in the Homeless Management 
Information System Data Standards that are consistent with this 
definition.
    Regarding the comment related to the phrase ``can be diagnosed'' 
found in the proposed rule, HUD decided to replace the list of 
``conditions'' found in the proposed rule with the requirement that an 
individual must meet the definition of ``homeless individual with a 
disability'' in the Act. Therefore, the phrase ``can be diagnosed'' is 
not found in the final rule. It should be noted, however, that for the 
purposes of recordkeeping, the final rule permits evidence of a 
disability to be documented using an intake staff-recorded observation 
of disability that, no later than 45 days of the application for 
assistance, is confirmed and accompanied by evidence in 24 CFR 
578.103(a)(4)(i)(B)(1), (2), (3), or (5).
    Finally, regarding the last comment, there is no such ``requirement 
to have a disability determination for each of the identified 
disabilities.'' An adult head of household is only required to meet the 
definition of ``homeless individual with a disability'' as defined in 
section 401(9) of the McKinney-Vento Act in order to meet the 
definition of ``chronically homeless'' and the recipient is only 
required to keep on file evidence of the qualifying disabling condition 
as HUD has clarified in the recordkeeping requirements.
    Rule Clarification: To provide for a more uniform definition, this 
final rule revised the language in paragraph (3) of the definition of 
``chronically homeless'' to state that to be considered chronically 
homeless a family must have an adult head of household (or a minor head 
of household if no adult is present in the household) who meets the 
criteria of ``homeless individual with a disability'' as defined in 
section 401(9) of the McKinney-Vento Act.
    Comment: The definition of ``chronically homeless'' should include 
an income variable. A commenter recommended that HUD add an income 
variable as an indicator of chronic homelessness.
    HUD Response: HUD disagrees with this recommendation. The statute 
does not include an income variable for either the definition of 
``homeless'' or ``chronically homeless'' and HUD does not seek to 
expand either definition to include this component.
    Comment: Provide guidance on what is meant by ``institution.'' One 
commenter stated that HUD should provide clear guidance on what 
constitutes an ``institution.'' Other commenters suggested that HUD 
include foster care in the definition of an institution and clarify 
that temporary placement in child welfare systems and foster care 
should constitute as a break in homelessness.
    HUD Response: HUD acknowledges that clarification of institutional 
care facility is necessary, however, rather than establishing a fixed 
set of institutional care facilities in the final rule, HUD intends to 
issue guidance on the meaning of ``institutional care facility.''
    Comment: Consistently refer to stays in institutions that do not 
constitute as a break in homelessness for purposes of defining 
``chronically homeless'' as either ``90 days or less'' or ``fewer than 
90 days.'' One commenter stated that HUD should be consistent when 
referencing institutional stays because ``90 days or less'' in 
paragraph (1)(ii) of the definition is not the same as ``fewer than 90 
days'' in paragraph (2) of this definition.
    HUD Response: HUD agrees that the language around stays in an 
institution included in the proposed definition was inconsistent. The 
definition in this rule has been revised to clarify that an individual 
can be considered chronically homeless if they are residing in or have 
a history of residing in an institution for fewer than 90 days, where 
the individual or family resided in a place not meant for human 
habitation, in a safe haven, or in an emergency shelter immediately 
prior to entering the institution.
    Rule clarification: HUD has revised the definition of ``chronically 
homeless'' to state that a homeless individual with a disability may be 
considered to be chronically homeless if they live in an institutional 
care facility, as long as the individual has been living there for 
fewer than 90 days and had been living in a place not meant for human 
habitation, a safe haven, or an emergency shelter prior to entering the 
institutional care facility.
    Comment: Define residence in institutional care facility as present 
and not past residence. A commenter suggested that HUD change the 
wording in paragraph (2) of the definition from ``An individual who has 
been residing in an institutional care facility. . ..'' to ``An 
individual who is residing in an institutional care facility. . .''
    HUD Response: HUD disagrees that this rewording is necessary. The 
phrase ``has been residing in an institutional care facility'' 
encompasses both the recent past and the current living situation of 
the individual and describes persons who are currently living or 
residing in an institutional care facility and whose total current stay 
in that facility will be fewer than 90 days.
    Comment: Difficulty in documenting periods of homelessness. Many 
commenters expressed concern that it would be difficult to document or 
verify the time period of homelessness required in the proposed 
definition of ``chronically homeless.'' Some commenters stated that it 
would be difficult to verify where homeless individuals or families 
have slept if the individual or family had not had regular interaction 
with a homeless service provider. Other commenters stated that 
chronically homeless individuals and families would not be able to 
remember or provide documentation for the exact period of time during 
which they had been homeless. Several commenters suggested that self-
certification by the head of household of homeless status should be 
sufficient for documenting homeless status and history. Many commenters 
expressed concern that the requirement to track and verify cumulative 
lengths of homelessness would place an undue burden on homeless service 
providers, particularly in rural areas where there are fewer 
institutions or shelters. Commenters also requested that the final rule 
include specific guidance on how to document homeless status and 
history, particularly for persons that have been unsheltered. Finally, 
several commenters expressed concern that the definition would make 
counting chronically homeless persons in the Point-in-Time counts more 
difficult because enumerators will not have sufficient time to 
determine lengths of homelessness.
    HUD Response: After reviewing the public comments, HUD acknowledges 
the lack of recordkeeping requirements for chronically homeless status 
in the proposed rule caused confusion and concern and HUD agrees it 
must provide specific guidance on documentation requirements for 
projects that are required to serve the chronically homeless. For this 
reason, the final rule includes a section on recordkeeping 
requirements. When creating the recordkeeping requirements, HUD 
acknowledged many of the potential difficulties expressed by the

[[Page 75803]]

commenters might occur if the burden-of-proof is too high. Therefore, 
the language in the recordkeeping section will allow for the period of 
homelessness to be documented by a self-certification by the head of 
household seeking assistance on a limited basis. In rare instances 
where persons have been unsheltered and out of contact for long periods 
of time, the recordkeeping requirements provide that up to the full 
period of homelessness could be documented by a self-certification by 
the individual or head of household seeking assistance, however, this 
accommodation is limited to no more than 25 percent of all chronically 
homeless individuals and families assisted. HUD determined that 25 
percent was a reasonable limit for this accommodation as it is 
consistent with a previous policy used by HUD that limited the 
percentage of program participants in transitional housing funded 
through the Supportive Housing Program who could be assisted for longer 
than 2 years. Further, the recordkeeping section clarifies that 
homeless service providers are not required to verify every day of 
homelessness in a given month but instead, that a single encounter with 
a homeless service provider in a given month would be sufficient third-
party evidence that the individual or family has been homeless for the 
entire month, unless there is evidence that the individual or family 
had a break of at least 7 consecutive nights in their homeless occasion 
during that month (e.g., was housed with a friend or family member). 
HUD does not expect Continuums of Care to document a person's 
chronically homeless status when conducting the annual Point-in-Time 
count. HUD will provide clarification and guidance regarding how to 
enumerate persons experiencing chronic homelessness through notices and 
other guidance in advance of the Point-in-Time count.
    Rule clarification. To clarify the records HUD expects Continuum of 
Care Program recipients and subrecipients to maintain when they are 
required to serve chronically homeless individuals and families, HUD 
has revised Sec.  578.103(a)(4) to incorporate recordkeeping 
requirements for the definition of ``chronically homeless.'' In 
addition, as a result of incorporating a new paragraph (4) in Sec.  
578.103(a), the remainder of Sec.  578.103(a) has been reordered and 
HUD has amended Sec.  578.87(b)(4) to update the reference from Sec.  
578.103(a)(13) to Sec.  578.103(a)(14).
    Comment: If there is no penalty for lying there will be fraud. A 
commenter expressed concern that if there is no penalty for lying by 
the program participants about the length of time homeless, there is 
likely to be fraud.
    HUD Response: In general, HUD expects that all homeless service 
providers will exercise due diligence when documenting periods of 
homelessness. The final rule includes recordkeeping requirements that 
will require third-party documentation where it is available, but 
allows for self-certification by the head of household seeking 
assistance in certain instances.
    Rule clarification: To clarify that HUD expects Continuum of Care 
Program recipients and subrecipients documenting chronic homeless 
status to obtain third-party documentation whenever possible, HUD has 
established Sec.  578.103(a)(4) to incorporate recordkeeping 
requirements for the definition of ``chronically homeless'' and to 
provide that the order of priority for documenting chronically homeless 
status is third-party documentation first, intake worker observations 
second, and certification from the person seeking assistance third. In 
addition, HUD has clarified that, except for in limited circumstances, 
at least 9 months of the homeless occasion(s) must be documented with 
third-party documentation.

VI. Findings and Certifications

Regulatory Planning and Review

    This final rule establishes a regulatory definition for the term 
``chronically homeless.'' This rule focuses on persons with the longest 
histories of homelessness to ensure that funds are targeted to 
providing permanent supportive housing solutions for these individuals 
and families who are chronically homeless, consistent with the 
statutory definition of the term established in the McKinney-Vento Act. 
This definition will also ensure that communities are using the same 
criteria in determining whether a person is chronically homeless, and 
that HUD receives consistent and accurate information nationwide.
    This new definition will use existing recordkeeping requirements 
for the Continuum of Care Program to document the homeless status of 
program participants, but adds that such documentation covers a program 
participant's homelessness status over a specific time period--at least 
1 year or on at least 4 separate occasions in the last 3 years--to 
document the chronically homeless status of program participants. While 
in some instances additional program participant records will need to 
be obtained to identify an individual's ``chronically homeless'' 
status, the additional burden of obtaining these records will ensure 
that communities are appropriately targeting HUD funds to those with 
the greatest need.
    The Office of Management and Budget (OMB) reviewed this rule under 
Executive Order 12866, ``Regulatory Planning and Review.'' This rule 
was determined to be a ``significant regulatory action,'' as defined in 
section 3(f) of the order (although not an economically significant 
regulatory action under the order). The docket file is available for 
public inspection in the Regulations Division, Office of the General 
Counsel, 451 7th Street SW., Room 10276, Washington, DC 20410-0500. Due 
to security measures at the HUD Headquarters building, please schedule 
an appointment to review the docket file by calling the Regulations 
Division at 202-402-3055 (this is not a toll-free number). Individuals 
with speech or hearing impairments may access this number via TTY by 
calling the Federal Relay Service at 800-877-8339 (this is a toll-free 
number).

Information Collection Requirements

    The information collection requirements contained in this final 
rule have been submitted to OMB under the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501-3520) and assigned OMB control number 2506-0112. 
In accordance with the Paperwork Reduction Act, an agency may not 
conduct or sponsor, and a person is not required to respond to, a 
collection of information, unless the collection displays a currently 
valid OMB control number.

Environmental Impact

    This rule does not direct, provide for assistance or loan and 
mortgage insurance for, or otherwise govern or regulate, real property 
acquisition, disposition, leasing, rehabilitation, alteration, 
demolition, or new construction, or establish, revise, or provide for 
standards for construction or construction materials, manufactured 
housing, or occupancy. Accordingly, under 24 CFR 50.19(c)(1), this rule 
is categorically excluded from environmental review under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321).

Unfunded Mandates Reform Act

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
(UMRA) establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and on the private

[[Page 75804]]

sector. This rule does not impose a Federal mandate on any State, 
local, or tribal government, or on the private sector, within the 
meaning of UMRA.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.) generally 
requires an agency to conduct a regulatory flexibility analysis of any 
rule subject to notice and comment rulemaking requirements, unless the 
agency certifies that the rule will not have a significant economic 
impact on a substantial number of small entities. This rule solely 
addresses the definition of ``chronically homeless.'' The purpose of 
this rule is to determine the universe of individuals and families who 
qualify as ``chronically homeless'' under the McKinney-Vento Act. Given 
the narrow scope of this rule, HUD has determined that it would not 
have a significant economic impact on a substantial number of small 
entities.

Executive Order 13132, Federalism

    Executive Order 13132 (entitled ``Federalism'') prohibits an agency 
from publishing any rule that has federalism implications if the rule 
either imposes substantial direct compliance costs on State and local 
governments and is not required by statute or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive order. This final rule does not have 
federalism implications and does not impose substantial direct 
compliance costs on State and local governments nor preempt State law 
within the meaning of the Executive order.

List of Subjects

24 CFR Part 91

    Aged, Grant programs--housing and community development, Homeless, 
Individuals with disabilities, Low- and moderate-income housing, 
Reporting and recordkeeping requirements.

24 CFR Part 578

    Community development, Community facilities, Grant programs--
housing and community development, Grant program--social programs, 
Homeless, Reporting and recordkeeping requirements.

    Accordingly, for the reasons described in the preamble, parts 91 
and 578 of title 24 of the Code of Federal Regulations are amended as 
follows:

PART 91--CONSOLIDATED SUBMISSIONS FOR COMMUNITY PLANNING AND 
DEVELOPMENT PROGRAMS

0
1. The authority citation for 24 CFR part 91 continues to read as 
follows:

    Authority:  42 U.S.C. 3535(d), 3601-3619, 5301-5315, 11331-
11388, 12701-12711, 12741-12756, and 12901-12912.


0
2. In Sec.  91.5, the definition of ``Chronically homeless'' is revised 
to read as follows:


Sec.  91.5  Definitions.

* * * * *
    Chronically homeless means:
    (1) A ``homeless individual with a disability,'' as defined in 
section 401(9) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11360(9)), who:
    (i) Lives in a place not meant for human habitation, a safe haven, 
or in an emergency shelter; and
    (ii) Has been homeless and living as described in paragraph (1)(i) 
of this definition continuously for at least 12 months or on at least 4 
separate occasions in the last 3 years, as long as the combined 
occasions equal at least 12 months and each break in homelessness 
separating the occasions included at least 7 consecutive nights of not 
living as described in paragraph (1)(i). Stays in institutional care 
facilities for fewer than 90 days will not constitute as a break in 
homelessness, but rather such stays are included in the 12-month total, 
as long as the individual was living or residing in a place not meant 
for human habitation, a safe haven, or an emergency shelter immediately 
before entering the institutional care facility;
    (2) An individual who has been residing in an institutional care 
facility, including a jail, substance abuse or mental health treatment 
facility, hospital, or other similar facility, for fewer than 90 days 
and met all of the criteria in paragraph (1) of this definition, before 
entering that facility; or
    (3) A family with an adult head of household (or if there is no 
adult in the family, a minor head of household) who meets all of the 
criteria in paragraph (1) or (2) of this definition, including a family 
whose composition has fluctuated while the head of household has been 
homeless.
* * * * *

PART 578--CONTINUUM OF CARE PROGRAM

0
3. The authority citation for 24 CFR part 578 continues to read as 
follows:

    Authority:  42 U.S.C. 11371 et seq., 42 U.S.C. 3535(d).


0
4. In Sec.  578.3, the definition of ``Chronically homeless'' is 
revised to read as follows:


Sec.  578.3  Definitions.

* * * * *
    Chronically homeless means:
    (1) A ``homeless individual with a disability,'' as defined in 
section 401(9) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11360(9)), who:
    (i) Lives in a place not meant for human habitation, a safe haven, 
or in an emergency shelter; and
    (ii) Has been homeless and living as described in paragraph (1)(i) 
of this definition continuously for at least 12 months or on at least 4 
separate occasions in the last 3 years, as long as the combined 
occasions equal at least 12 months and each break in homelessness 
separating the occasions included at least 7 consecutive nights of not 
living as described in paragraph (1)(i). Stays in institutional care 
facilities for fewer than 90 days will not constitute as a break in 
homelessness, but rather such stays are included in the 12-month total, 
as long as the individual was living or residing in a place not meant 
for human habitation, a safe haven, or an emergency shelter immediately 
before entering the institutional care facility;
    (2) An individual who has been residing in an institutional care 
facility, including a jail, substance abuse or mental health treatment 
facility, hospital, or other similar facility, for fewer than 90 days 
and met all of the criteria in paragraph (1) of this definition, before 
entering that facility; or
    (3) A family with an adult head of household (or if there is no 
adult in the family, a minor head of household) who meets all of the 
criteria in paragraph (1) or (2) of this definition, including a family 
whose composition has fluctuated while the head of household has been 
homeless.
* * * * *


Sec.  578.87  [Amended]

0
5. In Sec.  578.87, paragraph (b)(4) is amended by removing the 
reference ``Sec.  578.103(a)(13)'' and adding in its place ``Sec.  
578.103(a)(14)''.

0
6. In Sec.  578.103, redesignate paragraphs (a)(4) through (17) as 
paragraphs (a)(5) through (18) and add paragraph (a)(4) to read as 
follows:


Sec.  578.103  Recordkeeping requirements.

    (a) * * *
    (4) Chronically homeless status. The recipient must maintain and 
follow

[[Page 75805]]

written intake procedures to ensure compliance with the chronically 
homeless definition in Sec.  578.3. The procedures must require 
documentation at intake of the evidence relied upon to establish and 
verify chronically homeless status. The procedures must establish the 
order of priority for obtaining evidence as third-party documentation 
first, intake worker observations second, and certification from the 
person seeking assistance third. Records contained in an HMIS, or 
comparable database used by victim service or legal service providers, 
are acceptable evidence of third-party documentation and intake worker 
observations if the HMIS, or comparable database, retains an auditable 
history of all entries, including the person who entered the data, the 
date of entry, and the change made, and if the HMIS prevents overrides 
or changes of the dates on which entries are made.
    (i) For paragraph (1) of the ``Chronically homeless'' definition in 
Sec.  578.3, evidence that the individual is a ``homeless individual 
with a disability'' as defined in section 401(9) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11360(9)) must include:
    (A) Evidence of homeless status as set forth in paragraph (a)(3) of 
this section; and
    (B) Evidence of a disability. In addition to the documentation 
required under paragraph (a)(4)(i)(A) of this section, the procedures 
must require documentation at intake of the evidence relied upon to 
establish and verify the disability of the person applying for homeless 
assistance. The recipient must keep these records for 5 years after the 
end of the grant term. Acceptable evidence of the disability includes:
    (1) Written verification of the disability from a professional 
licensed by the state to diagnose and treat the disability and his or 
her certification that the disability is expected to be long-continuing 
or of indefinite duration and substantially impedes the individual's 
ability to live independently;
    (2) Written verification from the Social Security Administration;
    (3) The receipt of a disability check (e.g., Social Security 
Disability Insurance check or Veteran Disability Compensation);
    (4) Intake staff-recorded observation of disability that, no later 
than 45 days from the application for assistance, is confirmed and 
accompanied by evidence in paragraph (a)(4)(i)(B)(1), (2), (3), or (5) 
of this section; or
    (5) Other documentation approved by HUD.
    (ii) For paragraph (1)(i) of the ``Chronically homeless'' 
definition in Sec.  578.3, evidence that the individual lives in a 
place not meant for human habitation, a safe haven, or an emergency 
shelter, which includes:
    (A) An HMIS record or record from a comparable database;
    (B) A written observation by an outreach worker of the conditions 
where the individual was living;
    (C) A written referral by another housing or service provider; or
    (D) Where evidence in paragraphs (a)(4)(ii)(A) through (C) of this 
section cannot be obtained, a certification by the individual seeking 
assistance, which must be accompanied by the intake worker's 
documentation of the living situation of the individual or family 
seeking assistance and the steps taken to obtain evidence in paragraphs 
(a)(4)(ii)(A) through (C).
    (iii) For paragraph (1)(ii) of the ``Chronically homeless'' 
definition in Sec.  578.3, evidence must include a combination of the 
evidence described in paragraphs (a)(4)(ii)(A) through (D) of this 
section, subject to the following conditions:
    (A) Third-party documentation of a single encounter with a homeless 
service provider on a single day within 1 month is sufficient to 
consider an individual as homeless and living or residing in a place 
not meant for human habitation, a safe haven, or an emergency shelter 
for the entire calendar month (e.g., an encounter on May 5, 2015, 
counts for May 1--May 31, 2015), unless there is evidence that there 
have been at least 7 consecutive nights not living or residing in a 
place not meant for human habitation, a safe haven, or an emergency 
shelter during that month (e.g., evidence in HMIS of a stay in 
transitional housing);
    (B) Each break in homelessness of at least 7 consecutive nights not 
living or residing in a place not meant for human habitation, a safe 
haven, or in an emergency shelter between separate occasions must be 
documented with the evidence described in paragraphs (a)(4)(ii)(A) 
through (D) of this section;
    (C) Evidence of stays in institutional care facilities fewer than 
90 days included in the total of at least 12 months of living or 
residing in a place not meant for human habitation, a safe haven, or an 
emergency shelter must include the evidence in paragraphs (a)(4)(iv)(A) 
through (B) of this section and evidence described in paragraphs 
(a)(4)(ii)(A) through (D) of this section that the individual was 
living or residing in a place not meant for human habitation, a safe 
haven, or an emergency shelter immediately prior to entering the 
institutional care facility; and
    (D) For at least 75 percent of the chronically homeless individuals 
and families assisted by a recipient in a project during an operating 
year, no more than 3 months of living or residing in a place not meant 
for human habitation, a safe haven, or an emergency shelter may be 
documented using the evidence in paragraph (a)(4)(ii)(D) of this 
section for each assisted chronically homeless individual or family. 
This limitation does not apply to documentation of breaks in 
homelessness between separate occasions, which may be documented 
entirely based on a self-report by the individual seeking assistance.
    (iv) If an individual qualifies as chronically homeless under 
paragraph (2) of the ``Chronically homeless'' definition in Sec.  578.3 
because he or she has been residing in an institutional care facility 
for fewer than 90 days and met all of the criteria in paragraph (1) of 
the definition, before entering that facility, evidence must include 
the following:
    (A) Discharge paperwork or a written or oral referral from a social 
worker, case manager, or other appropriate official of the 
institutional care facility stating the beginning and end dates of the 
time residing in the institutional care facility. All oral statements 
must be recorded by the intake worker; or
    (B) Where the evidence in paragraph (a)(4)(iv)(A) of this section 
is not obtainable, a written record of the intake worker's due 
diligence in attempting to obtain the evidence described in paragraph 
(a)(4)(iv)(A) and a certification by the individual seeking assistance 
that states that he or she is exiting or has just exited an 
institutional care facility where he or she resided for fewer than 90 
days; and
    (C) Evidence as set forth in paragraphs (a)(4)(i) through (iii) of 
this section that the individual met the criteria in paragraph (1) of 
the definition for ``Chronically homeless'' in Sec.  578.3, immediately 
prior to entry into the institutional care facility.
    (v) If a family qualifies as chronically homeless under paragraph 
(3) of the ``Chronically homeless'' definition in Sec.  578.3, evidence 
must include the evidence as set forth in paragraphs (a)(4)(i) through 
(iv) of this section that the adult head of household (or if there is 
no adult in the family, a minor head of household) met all of the 
criteria in paragraph (1) or (2) of the definition.
* * * * *


[[Page 75806]]


    Dated: November 13, 2015.
Harriet Tregoning,
Principal Deputy Assistant Secretary for Community Planning and 
Development.

    Dated: Approved on November 24, 2015.
Nani A. Coloretti,
Deputy Secretary.
[FR Doc. 2015-30473 Filed 12-3-15; 8:45 am]
 BILLING CODE 4210-67-P