[Federal Register Volume 83, Number 108 (Tuesday, June 5, 2018)]
[Rules and Regulations]
[Pages 25915-25920]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12048]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AQ15


Case Management Services Grant Program

AGENCY: Department of Veterans Affairs.

ACTION: Interim final rule.

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SUMMARY: The Department of Veterans Affairs (VA) is amending its 
regulations that govern programs benefitting homeless veterans to 
implement a new statutory requirement to establish a new grant program 
that will provide case management services to improve the retention of 
housing by veterans who were previously homeless and are transitioning 
to permanent housing and to veterans who are at risk of becoming 
homeless. The grant program established by this interim final rule will 
be an essential part of VA's attempts to eliminate homelessness among 
the veteran population.

DATES: This final rule is effective June 5, 2018. Comments must be 
received on or before August 6, 2018.

ADDRESSES: Written comments may be submitted through http://www.Regulations.gov; by mail or hand-delivery to: Director, Regulation 
Policy and Management (00REG), Department of Veterans Affairs, 810 
Vermont Ave. NW, Room 1063B, Washington, DC 20420; or by fax to (202) 
273-9026. (This is not a toll-free telephone number.) Comments should 
indicate that they are submitted in response to ``RIN 2900-AQ15--Case 
Management Services Grant Program.'' Copies of comments received will 
be available for public inspection in the Office of Regulation Policy 
and Management, Room 1063B, between the hours of 8 a.m. and 4:30 p.m., 
Monday through Friday (except holidays). Please call (202) 461-4902 for 
an appointment. (This is not a toll-free telephone number.) In 
addition, during the comment period, comments may be viewed online 
through the Federal Docket Management System (FDMS) at http://www.Regulations.gov.

FOR FURTHER INFORMATION CONTACT: Jeffery Quarles, Director, Grant and 
Per Diem Program, (10NC1HM), VA National Grant and Per Diem Program 
Office, 10770 N 46th Street, Suite C-200, Tampa, FL 33617, (877) 332-
0334. (This is a toll-free number.)

SUPPLEMENTARY INFORMATION: In an effort to reduce homelessness in the 
veteran population, Congress has required VA to expand its benefits for 
homeless veterans by establishing a new grant program to provide funds 
to organizations within communities that will provide case management 
services to improve the retention of housing by veterans who were 
previously homeless and are transitioning to permanent housing and to 
veterans who are at risk of becoming homeless. See Public Law 114-315, 
sec. 712 (Dec. 16, 2016) (codified at 38 U.S.C. 2013). This interim 
final rule adds this new case management program to VA's Homeless 
Providers Grant and Per Diem Program regulations by adding a new 
subpart G to 38 CFR part 61 to accurately reflect these changes in law. 
The new case management program will mirror existing homeless grant per 
diem programs as much as possible for ease of administrating and 
running the new grant program.

61.90 Grant for Case Management Services--Program

    Paragraph (a) of Sec.  61.90 states that non-profit organizations 
and State, local, and tribal governments are eligible to apply for a 
grant to provide case management services. (For purposes of this 
program, the term ``tribal government'' means an entity described in 
paragraph (2) of the definition of public entity in 38 CFR 61.1.) To 
ensure that grant funding is used to provide case management services 
to as many veterans as possible, this same paragraph provides that case 
management services grant funds under this program ``may not be used 
for veterans who are receiving case management services from permanent 
supportive housing programs (e.g. Housing and Urban Development-VA 
Supportive Housing) or rapid re-housing/homeless prevention programs 
(e.g. Supportive Services for Veterans Families (SSVF)).'' Paragraph 
(b) identifies examples of case management services that grantees can 
provide using these grant funds. Such services include, but are not 
limited to, ``Making home visits by the case manager to monitor housing 
stability; Providing or coordinating educational activities related to 
meal planning, tenant responsibilities, the use of public 
transportation, community resources, financial management, and the 
development of natural supports; Making referrals to needed services, 
such as mental health, substance use disorder, medical, and employment 
services; and Participating in case conferencing with other service 
providers who are working with the veteran.'' Paragraph (c) sets a 6-
month time limit for veterans to receive case management services. 
However, VA may approve a request to extend services beyond the 6-month 
period if an organization submits a request to VA in writing and VA 
approves it before the 6-month time limit expires. Because in most 
circumstances case management services are provided to veterans after 
they have been in receipt of benefits under the Grant and Per Diem 
Program, VA believes that 6 months would, in most cases, be sufficient 
time for a veteran to have the necessary tools in place to retain 
permanent housing.

61.92 Grant for Case Management Services--Application and Rating 
Criteria

    For ease of administration and internal consistency between grant 
programs benefiting homeless veterans, VA will, to the extent 
applicable and appropriate, adopt standards for the

[[Page 25916]]

new case management services grant program from its existing capital 
grants program. VA has successfully used the application package 
requirements and rating criteria for the capital grants program found 
in in Sec. Sec.  61.12 and 61.13 for other grant programs. See 
Sec. Sec.  61.32 and 61.41, We, therefore, adopt these requirements and 
rating criteria as relevant and slightly modified to meet the needs of 
the case management services grant program, expecting their use will 
render equally successful results here. Specifically, an applicant must 
submit an application package for case management services grants, 
which must:
     Be on the correct application form.
     Be completed in all parts, including all information 
requested in the Notice of Fund Availability (NOFA).
     Include a signed Application for Federal Assistance (SF 
424) that contains the Employer Identification Number or Taxpayer 
Identification Number (EIN/TIN) that corresponds to the applicant's 
Internal Revenue Service (IRS) 501(c)(3) or (19) determination letter. 
Applicants that apply under a group EIN/TIN must be identified by the 
parent EIN/TIN as a member or sub-unit of the parent EIN/TIN and 
provide supporting documentation.
     Be received before the deadline specified by the NOFA.
    In addition, the applicant must be an eligible entity at the time 
of application; the activities for which funding is requested must be 
eligible for funding under this subpart; the applicant must submit an 
application and agree to comply with the requirements of this subpart 
and demonstrate the capacity to do so; the applicant must not have any 
outstanding obligation to VA that is in arrears, or have an overdue or 
unsatisfactory response to an audit; and, the applicant must not have 
been notified by VA as being in default. If the applicant does not meet 
any one of these requirements, the application will be rejected without 
further consideration.
    As to the rating criteria, the criteria in Sec.  61.13 have been 
adopted and modified for purposes of this more narrow program, as 
listed in full in the regulatory text. So, an applicant under this 
program must receive at least 750 points out of a possible 1000 in 
order to be considered eligible to receive a grant for case management 
services. Generally speaking, VA will grant points as follows: Up to 
400 points for project planning; up to 200 points for the applicant's 
ability to develop and operate a project; up to 150 points for the 
demonstration of a substantial unmet need for supportive services for 
formerly homeless veterans; up to 50 points based on the review panel's 
confidence that the applicant has effectively demonstrated that the 
grant can be completed as described in the application; and up to 200 
points for demonstrating the applicant has coordinated with Federal, 
state, local, private and other entities serving homeless persons or 
persons at risk for homelessness in the planning and operation of the 
case management services project.

61.94 Grant for Case Management Services--Selection of Grantees

    Section 61.94 describes the selection process for grants available 
under this subpart and sets out the priorities among applicants as 
established in the law. Public Law 114-315 mandates that VA give extra 
priority to organizations that voluntarily stop receiving amounts 
provided by the Secretary under sections 2012 and 2061 of title 38 and 
converts a facility that the organization used to provide transitional 
housing services into a facility that the organization uses to provide 
permanent housing that meets housing quality standards established 
under section 8(o)(8)(B) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(8)(B)). This extra priority is provided for in 
paragraph (a)(1) of Sec.  61.94. We would add that in order to obtain 
this extra priority, organizations must provide documentation showing 
that the permanent housing meets these housing quality standards. VA 
will thus award case management services grants first to applicants 
whose applications that meet the criteria of Sec.  61.94(a)(1). The 
Public Law also states that VA shall give priority to organizations 
that demonstrate a capability to provide case management services . . . 
particularly organizations that are successfully providing or have 
successfully provided transitional housing services using amounts 
provided by the Secretary under sections 2012 and 2061 of title 38. We 
are stating this priority in paragraph (a)(2). So, once all 
applications described in the ``extra priority'' paragraph are awarded 
a grant, VA will award grants to those who qualify for priority under 
paragraph (a)(2). Paragraph (a)(3) provides that VA may also consider 
applications from other organizations without a Grant and Per Diem 
grant that seek to provide time limited case management services ``to 
formerly homeless veterans who have exited VA transitional housing or 
other VA homeless residential treatment services to permanent 
housing.'' In order to permit VA to rank applications for these grants 
within each priority, paragraph (b) will state that within each of the 
three priorities in paragraph (a), an application with more points 
using the rating criteria in Sec.  61.92(b) will be given a higher 
priority for a grant award. Ranking applications within each priority 
would be needed if VA only has enough funds to award grants to some but 
not all applicants in one of the above priorities.

61.96 Grant for Case Management Services--Awards

    Section 61.96 describes the award and funding process for grants 
available under this subpart and identifies permissible uses for the 
grant funds. Paragraph (a) states that funding for grants for case 
management services will be offered from the Grant and Per Diem Program 
budget and will be annually limited by VA's funding availability and 
commitments to existing programs. VA's aim is to alert potential 
applicants that yearly funding for the program may vary, which will be 
stated in the NOFA. Because the available funding for the grants for 
case management services is limited, paragraph (b) identifies the 
limited authorized uses of grant funds for costs associated with 
administrating these grants. Specifically, case management services 
grant funds may be used for the following administrative purposes: 
Providing funding for case management staff; providing transportation 
for the case manager; providing cell phones and computers to facilitate 
home visits and other case management activities associated with the 
grant; and, providing office furniture for the use of the case 
management staff. For all grants awarded under this section, VA will 
incorporate into the grant agreements the agreement and funding actions 
described in Sec.  61.61, which currently apply to the Grant and Per 
Diem Program. This will help align operations for this new grant 
program with current Grant and Per Diem Program practices. Paragraph 
(c) therefore states that VA will execute an agreement and make 
payments to the grantee in accordance with the award and funding 
actions applicable to the Grant and Per Diem Program as described in 
Sec.  61.61.

61.98 Grant for Case Management Services--Requirements and Oversight

    Section 61.98 provides that VA will oversee grants to make certain 
that grantees operate their programs in accordance with the 
requirements of Sec. Sec.  61.90 through 61.98. VA's oversight 
responsibilities include reviewing and responding to requests from 
grantees for extensions to the otherwise applicable maximum 6-month 
time limit. Further,

[[Page 25917]]

this section states that grantees must also comply with the 
requirements of 38 CFR 61.65, 61.67(d), 61.67(e), and 61.80(c), (g), 
(h), (i), (n), (o), (p), and (q). Section 61.80 sets forth requirements 
for supportive housing and service centers for which assistance is 
provided under part 61. The assistance provided with case management 
services grants will not be for the construction, acquisition, 
renovation, or operation of supportive housing or service centers. We 
will thus not require grantees under this program to comply with those 
requirements in Sec.  61.80 pertaining to housing and service centers. 
For example, VA will not require the housing in which the veterans who 
obtain services under this program reside to comply with the Life 
Safety code and state and local housing codes, licensing requirements, 
fire and safety requirements, or any other State of local requirements 
as would be otherwise imposed under Sec.  61.80(a). We will also not 
require that supportive housing in which veterans who receive 
assistance under this program reside comply with the structural, space, 
and operational requirements in Sec.  61.80(b) through (f), (m), and 
(r). We will not require compliance under this program with the 
requirements for service centers in Sec.  61.80(k) and (l). Finally, we 
have addressed the requirements in Sec.  61.80(j) by providing that VA 
may disapprove use of services provided by the grantee if VA determines 
that such services are of unacceptable quality in which case grant 
funds may not be used to pay for such services. VA lacks the authority 
to manage private or public entities and can only select grantees and 
oversee compliance with the terms of grant agreements consistent with 
Sec. Sec.  61.90 through 61.98. VA similarly inspects and provides 
oversight to other Grant and Per Diem programs as a means to verify 
that grant funds and services are properly delivered by the grantee. As 
all transitional housing grants have some form of case management, we 
will apply the oversight requirements of 38 CFR part 61, subpart F, (in 
addition to those specifically listed above in Sec.  61.80) as 
applicable, to grantees in the case management services program.

Administrative Procedure Act

    In accordance with U.S.C. 553(b)(B) and (d)(3), the Secretary of 
Veterans Affairs has concluded that there is good cause to publish this 
rule without prior opportunity for public comment and to publish this 
rule with an immediate effective date. This final rule implements the 
mandates of section 712 of Public Law 114-315. Section 712 mandates 
that VA have regulations in place to implement this section no later 
than one year after the date of the enactment of the Public Law, which 
was December 16, 2017. One of VA's top priorities is the elimination of 
homelessness among the veteran population. This rule will, in support 
of this goal, provide veterans with case management services that will 
assist them in obtaining and maintaining permanent housing. This rule 
incorporates statutory requirements and complements the already 
existing Grant and Per Diem Program. The additional time associated 
with a public comment period would disadvantage and cause hardship to 
veterans who are in immediate or near-future need of the case 
management services available under this program (to avoid lapsing to a 
state of homelessness) and therefore would be contrary to the public 
interest. The Secretary finds that it is impracticable and contrary to 
the public interest to delay this rule for the purpose of soliciting 
advance public comment or to have a delayed effective date. For the 
above reason, the Secretary issues this rule as an interim final rule 
with an immediate effective date. VA will consider and address comments 
that are received within 60 days of the date this interim final rule is 
published in the Federal Register.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as revised by this 
interim final rule, represents VA's implementation of its legal 
authority on this subject. Other than future amendments to this 
regulation or governing statutes, no contrary guidance or procedures 
are authorized. All existing or subsequent VA guidance must be read to 
conform with this rule if possible or, if not possible, such guidance 
is superseded by this rule.

Paperwork Reduction Act

    This interim final rule includes a provision constituting a 
collection of information under the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501-3521) that requires approval by the Office of Management 
and Budget (OMB). Accordingly, under 44 U.S.C. 3507(d), VA has 
submitted a copy of this rulemaking to OMB for review.
    OMB assigns control numbers to collections of information it 
approves. VA may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. Section 61.92 contains a collection 
of information under the Paperwork Reduction Act of 1995. If OMB does 
not approve the collection of information as requested, VA will 
immediately remove the provision containing a collection of information 
or take such other action as is directed by OMB.
    Comments on the collection of information contained in this interim 
final rule should be submitted to the Office of Management and Budget, 
Attention: Desk Officer for the Department of Veterans Affairs, Office 
of Information and Regulatory Affairs, Washington, DC 20503, with 
copies sent by mail or hand delivery to the Director, Regulations 
Management (00REG), Department of Veterans Affairs, 810 Vermont Avenue 
NW, Room 1068, Washington, DC 20420; fax to (202) 273-9026; or through 
www.Regulations.gov. Comments should indicate that they are submitted 
in response to ``RIN 2900-AQ15 Case Management Services Grant 
Program.''
    OMB is required to make a decision concerning the collections of 
information contained in this interim final rule between 30 and 60 days 
after publication of this document in the Federal Register. Therefore, 
a comment to OMB is best assured of having its full effect if the 
comment is received within 30 days of publication. This does not affect 
the 60-day deadline for the public to comment on the interim final 
rule.
    VA considers comments by the public on proposed collections of 
information in--
     Evaluating whether the proposed collections of information 
are necessary for the proper performance of the functions of VA, 
including whether the information will have practical utility;
     Evaluating the accuracy of VA's estimate of the burden of 
the proposed collections of information, including the validity of the 
methodology and assumptions used;
     Enhancing the quality, usefulness, and clarity of the 
information to be collected; and
     Minimizing the burden of the collections of information on 
those who are to respond, including through the use of appropriate 
automated, electronic, mechanical, or other technological collection 
techniques or other forms of information technology, e.g., permitting 
electronic submission of responses.
    The collections of information contained in regulatory section 38 
CFR 61.92 are described immediately following this paragraph, under 
their respective titles.
    Title: Case Management Services Grant Program.
    Summary of collection of information: Paragraph (a) requires that 
the applicant must meet the application requirements

[[Page 25918]]

in this paragraph (a) or the application will be rejected and not 
considered further. Such documentation must be submitted to VA by the 
deadline established in the Notice of Fund Availability.
    Description of the need for information and use of information: The 
information is needed to establish eligibility for a case management 
services grant.
    Description of likely respondents: Non-profit organizations, State 
and local governments, or Tribal Indian governments who seek to receive 
a case management services grant.
    Estimated number of respondents per month/year: 100.
    Estimated frequency of responses per month/year: 1 time per year.
    Estimated average burden per response: 35 minutes.
    Estimated total annual reporting and recordkeeping burden: 58 
hours.

Regulatory Flexibility Act

    The Secretary hereby certifies that this final rule will not have a 
significant economic impact on a substantial number of small entities 
as they are defined in the Regulatory Flexibility Act, 5 U.S.C. 601-
612. This final rule will only impact those entities that choose to 
participate and apply for a grant. Small entity applicants will not be 
affected to a greater extent than large entity applicants. Small 
entities must elect to participate, and it is considered a benefit to 
those who choose to apply. To the extent this final rule will have any 
impact on small entities, it will not have an impact on a substantial 
number of small entities. VA estimates that possibly up to 150 
organizations will submit grant applications under this program and so 
be affected by this rule. The Secretary therefore certifies that the 
adoption of this final rule will not have a significant economic impact 
on a substantial number of small entities as they are defined in the 
Regulatory Flexibility Act, 5 U.S.C. 601-612. Therefore, pursuant to 5 
U.S.C. 605(b), this rulemaking is exempt from the initial and final 
regulatory flexibility analysis requirements of 5 U.S.C. 603 and 604.

Executive Orders 12866, 13563 and 13771

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, when 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, and other advantages; distributive impacts; 
and equity). Executive Order 13563 (Improving Regulation and Regulatory 
Review) emphasizes the importance of quantifying both costs and 
benefits, reducing costs, harmonizing rules, and promoting flexibility. 
Executive Order 12866 (Regulatory Planning and Review) defines a 
``significant regulatory action,'' requiring review by OMB, unless OMB 
waives such review, as any regulatory action that is likely to result 
in a rule that may: (1) Have an annual effect on the economy of $100 
million or more or adversely affect in a material way the economy, a 
sector of the economy, productivity, competition, jobs, the 
environment, public health or safety, or State, local, or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
this Executive Order. The economic, interagency, budgetary, legal, and 
policy implications of this regulatory action have been examined, and 
it has been determined not to be a significant regulatory action under 
Executive Order 12866. VA's impact analysis can be found as a 
supporting document at http://www.regulations.gov, usually within 48 
hours after the rulemaking document is published. Additionally, a copy 
of the rulemaking and its impact analysis are available on VA's website 
at http://www.va.gov/orpm/, by following the link for ``VA Regulations 
Published From FY 2004 Through Fiscal Year to Date.'' This rule is not 
an E.O. 13771 regulatory action because this rule is not significant 
under E.O. 12866.

Unfunded Mandates

    The Unfunded Mandates Reform Act of 1995 requires, at 2 U.S.C. 
1532, that agencies prepare an assessment of anticipated costs and 
benefits before issuing any rule that may result in the expenditure by 
State, local, and tribal governments, in the aggregate, or by the 
private sector, of $100 million or more (adjusted annually for 
inflation) in any one year. This interim final rule will have no such 
effect on State, local, and tribal governments, or the private sector.

Catalog of Federal Domestic Assistance

    The Catalog of Federal Domestic Assistance program number and title 
for this interim final rule are as follows: 64.024 VA Homeless 
Providers Grant and Per Diem Program.

Signing Authority

    The Secretary of Veterans Affairs, or designee, approved this 
document and authorized the undersigned to sign and submit the document 
to the Office of the Federal Register for publication electronically as 
an official document of the Department of Veterans Affairs. Jacquelyn 
Hayes-Byrd, Acting Chief of Staff, Department of Veterans Affairs, 
approved this document on May 31, 2018, for publication.

    Dated: May 31, 2018.
Consuela Benjamin,
Regulation Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

List of Subjects in 38 CFR Part 61

    Administrative practice and procedure, Alcohol abuse, Alcoholism, 
Day care, Dental health, Drug abuse, Government contracts, Grant 
programs--health, Grant programs-veterans, Health care, Health 
facilities, Health professions, Health records, Homeless, Mental health 
programs, Reporting and recordkeeping requirements, Travel and 
transportation expenses, Veterans.

    For the reasons set forth in the preamble, we are amending 38 CFR 
part 61 as follows:

PART 61--VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM

0
1. The authority citation for part 61 is revised to read as follows:

    Authority: 38 U.S.C. 501, 2001, 2002, 2011, 2012, 2013, 2061, 
2064.


0
2. Add subpart G to read as follows:
Subpart G--Case Management Services Grant Program
Sec.
61.90 Grant for case management services--program.
61.92 Grant for case management services--application and rating 
criteria.
61.94 Grant for case management services--selection of grantees.
61.96 Grant for case management services--awards.
61.98 Grant for case management services--requirements and 
oversight.


Sec.  61.90  Grant for case management services--program.

    (a) General. VA may award grants for case management services to 
non-profit organizations and State, local and tribal governments for 
the provision of case management services to improve the retention of 
housing by veterans who were previously homeless and are

[[Page 25919]]

transitioning to permanent housing and to veterans who are at risk of 
becoming homeless. (For purposes of this program, the term ``tribal 
government'' means an entity described in paragraph (2) of the 
definition of ``public entity'' in 38 CFR 61.1.) The goals of the grant 
program are: The maintenance of permanent housing by a veteran 
following discharge from homeless residential services, a reduction in 
recidivism, and an increase in exits to permanent housing. These grant 
funds may not be used for veterans who are receiving case management 
services from permanent supportive housing programs (e.g. Housing and 
Urban Development--VA Supportive Housing) or rapid re-housing/homeless 
prevention programs (e.g. Supportive Services for Veterans Families 
(SSVF)).
    (b) Case management services. Case management services include, but 
are not limited to, the following:
    (1) Making home visits by the case manager to monitor housing 
stability;
    (2) Providing or coordinating educational activities related to 
meal planning, tenant responsibilities, the use of public 
transportation, community resources, financial management, and the 
development of natural supports;
    (3) Making referrals to needed services, such as mental health, 
substance use disorder, medical, and employment services; and
    (4) Participating in case conferencing with other service providers 
who are working with the veteran.
    (c) Time limit. Case management services may be provided for a 
particular veteran for up to 6 months, unless VA receives and approves 
a written request for additional time before the 6-month time limit 
expires.


Sec.  61.92  Grant for case management services--application and rating 
criteria.

    (a) General requirements. When funds are available for grants for 
case management services authorized under Sec. Sec.  61.90 through 
61.98, VA will publish a Notice of Fund Availability (NOFA) in the 
Federal Register in accordance with Sec.  61.3. The applicant must meet 
all of the following requirements or the application will be rejected 
without further consideration:
    (1) The applicant must submit an application and comply with the 
application requirements identified in the NOFA, e.g., complete all 
parts of the correct form and include all information requested in the 
NOFA.
    (2) Include a signed Application for Federal Assistance (SF 424) 
that contains the applicant's Employer Identification Number or 
Taxpayer Identification Number (EIN/TIN). All non-profit applicants 
must provide their Internal Revenue Service 501(c)(3) or (19) 
determination letter, which includes the EIN/TIN contained in the 
application. Applicants that apply under a group EIN/TIN must be 
identified by the parent EIN/TIN as a member or sub-unit of the parent 
EIN/TIN and provide supporting documentation.
    (3) The application must be received before the deadline 
established in the NOFA.
    (4) The applicant must be a nonprofit organization or a State, 
local, or tribal government.
    (5) The activities for which assistance is requested must be 
eligible for funding under Sec. Sec.  61.90-61.98.
    (6) The applicant must agree to comply with the requirements of 
Sec. Sec.  61.90 through 61.98 and demonstrate the capacity to do so.
    (7) The applicant must not have an outstanding obligation to VA 
that is in arrears, or have an overdue or unsatisfactory response to an 
audit.
    (8) The applicant must not have been notified by VA as being in 
default.
    (b) Rating criteria. To be eligible for a case management grant, an 
applicant must receive at least 750 points (out of a possible 1000) and 
must receive points under paragraphs (c) through (f) of this section.
    (c) Project plan. VA will award up to 400 points based on the 
demonstration and quality of the following:
    (1) The process used for deciding which veterans are referred and 
accepted for case management services.
    (2) How, when, and by whom the progress of participants who are 
receiving case management services toward meeting their individual 
goals will be monitored, evaluated, and documented. This monitoring 
includes, but is not limited to, a description of how home visits would 
be provided and the general purpose and frequency anticipated of the 
home visits.
    (3) How the participant's system of natural supports would be 
assessed and developed.
    (4) How crisis intervention services will be coordinated, as 
needed, to promote the maintenance of permanent housing, access to 
medical care, mental health or substance use disorder treatment.
    (5) How the applicant will provide education to case management 
participants, as needed, in the areas of tenant rights and 
responsibilities, rental/lease agreements, landlords rights and 
responsibilities, and budgeting.
    (6) How case management services will be phased out.
    (d) Ability of the applicant to develop and operate a project. VA 
will award up to 200 points based on the extent to which the applicant 
demonstrates the necessary staff and organizational experience to 
develop and operate the proposed project, based on the following:
    (1) Staffing plan for the project that reflects the appropriate 
professional staff, both administrative and clinical;
    (2) Experience of staff, or if staff is not yet hired, position 
descriptions and expectations of time to hire;
    (3) Applicant's previous experience assessing and providing for the 
housing needs of formerly homeless veterans;
    (4) Applicant's previous experience in providing case management 
services to assist persons in maintaining permanent housing;
    (5) Applicant's previous experience in coordinating crisis 
intervention services, including medical, mental health, and substance 
use disorder services.
    (6) Applicant's experience in working with local landlords as part 
of providing housing support services.
    (7) Historical documentation of past performance both with VA and 
non-VA projects, including those from other Federal, state and local 
agencies, and audits by private or public entities.
    (e) Need. VA will award up to 150 points based on the extent to 
which the applicant demonstrates:
    (1) Substantial unmet need for formerly homeless veterans who have 
exited homeless transitional housing or residential services and are in 
need of time limited case management to maintain permanent housing. 
Demonstration of need must be based on reliable data from reports or 
other data gathering systems that directly support claims made; and
    (2) An understanding of the formerly homeless population to be 
served and its supportive service needs.
    (f) Completion confidence. VA will award up to 50 points based on 
the review panel's confidence that the applicant has effectively 
demonstrated the case management services project will be completed as 
described in the application. VA may use historical program documents 
demonstrating the applicant's past performance, including those from 
other Federal, state and local agencies, as well as audits by private 
or public entities in determining confidence scores.
    (g) Coordination with other programs. VA will award up to 200 
points based on the extent to which the applicant demonstrates that it 
has coordinated with Federal, state, local, private, and other entities 
serving homeless persons

[[Page 25920]]

or persons at risk for homelessness in the planning and operation of 
the case management services project. Such entities include, but are 
not limited to, shelters, transitional housing, Public Housing 
Authorities, health care or social service providers, providers funded 
through Federal initiatives, local planning coalitions or provider 
associations, or other program providers relevant to the needs of 
formerly homeless veterans in the local community. Applicants are 
required to demonstrate that they have coordinated with the VA medical 
facility of jurisdiction or VA regional office of jurisdiction in their 
area. VA will award up to 50 points of the 200 points based on the 
extent to which commitments to provide supportive services are 
documented at the time of application. Up to 150 points of the 200 
points will be given to the extent applicants demonstrate that:
    (1) They are part of an ongoing community-wide planning process 
within the framework described in this section, which is designed to 
share information on available resources and reduce duplication among 
programs that serve homeless veterans (e.g. Continuum of Care);
    (2) They have consulted directly with the closest VA medical 
facility and other providers within the framework described in this 
section regarding coordination of services for project participants; 
and
    (3) They have coordinated with the closest VA medical facility 
their plan to assure access to health care, case management, and other 
care services.

(Approved by the Office of Management and Budget under control 
number 2900-XXXX.)

Sec.  61.94  Grant for case management services--selection of grantees.

    (a) Award priority. Grants for case management services will be 
awarded in order of priority as follows:
    (1) VA will give extra priority to grants for case management 
services to applications from operational Grant and Per Diem funded 
organizations that have given up per diem or special need funding and 
converted their transitional housing to permanent housing. In order to 
obtain this extra priority, organizations must provide documentation 
showing that their permanent housing meets the quality housing 
standards established under section 8(o)(8)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(B)).
    (2) VA will give priority to applications from organizations that 
demonstrate a capability to provide case management services, 
particularly organizations that are successfully providing or have 
successfully provided transitional housing services using grants 
provided by VA under 38 U.S.C. 2012 and 2061.
    (3) Applications from other organizations without a Grant and Per 
Diem grant that seek to provide time limited case management to 
formerly homeless veterans who have exited VA transitional housing or 
other VA homeless residential treatment services to permanent housing.
    (b) Higher award priority. Within each of the three priorities in 
paragraph (a) of this section, an application with more points using 
the rating criteria in Sec.  61.92(b) will be given a higher priority 
for a grant award.


Sec.  61.96  Grant for case management services--awards.

    (a) Funding. Grants for case management services will be offered 
from the current Grant and Per Diem Program budget and will be limited 
annually by VA's funding availability and commitments to existing 
programs.
    (b) Use of grant funds for administrative costs. Grant funds may be 
used for the following administrative purposes
    (1) Case management staff;
    (2) Transportation for the case manager;
    (3) Cell phones and computers to facilitate home visits and other 
case management activities associated with the grant; and
    (4) Office furniture for the use of the case management staff.
    (c) Awards. VA will execute an agreement and make payments to the 
grantee in accordance with the award and funding actions applicable to 
the Grant and Per Diem Program as described in Sec.  61.61.


Sec.  61.98  Grant for case management services--requirements and 
oversight.

    VA will oversee grants for case management services to ensure that 
each grantee operates its program in accordance with Sec. Sec.  61.90 
through 61.98. VA's oversight responsibilities include reviewing and 
responding to requests from grantees for extensions to the otherwise 
applicable maximum 6-month time limit. Grantees must also comply with 
the requirements of 38 CFR 61.65; 61.67(d) and 61.67(e); and 61.80(c), 
(g), (h), (i), (n), (o), (p), and (q). VA may disapprove of case 
management services provided by the grantee if VA determines that they 
are of unacceptable quality in which case grant funds may not be used 
to pay for them.

[FR Doc. 2018-12048 Filed 6-4-18; 8:45 am]
BILLING CODE 8320-01-P