[Federal Register Volume 84, Number 123 (Wednesday, June 26, 2019)]
[Rules and Regulations]
[Pages 30026-30028]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13500]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 61

RIN 2900-AQ15


Case Management Services Grant Program

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: The Department of Veterans Affairs (VA) adopts as final, with 
no changes, an interim final rule amending its regulations that govern 
programs benefitting homeless veterans to implement a new statutory 
requirement. The statute requires VA 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 the interim final rule, 
which is now adopted as final, will be an essential part of VA's 
attempts to eliminate homelessness among the veteran population.

DATES: This final rule is effective June 26, 2019.

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. 
[email protected]. (877) 332-0334. (This is a toll-free number.)

SUPPLEMENTARY INFORMATION: In a document published in the Federal 
Register on June 5, 2018, VA published an interim final rule, which 
amended its regulations that govern programs benefitting homeless 
veterans. 83 FR 25915. VA provided a 60-day comment period, which ended 
on August 6, 2018. We received three comments on the interim final 
rule.
    The general authority for VA homeless grant and per diem program is 
38 United States Code (U.S.C.) 2011 and 2012. 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 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 final 
rule, adopts as final, an interim final rule that added 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 mirrors existing homeless grant per diem programs as much as 
possible for ease of administrating and running the new grant program.
    We received three comments. We received one comment in support of 
the rule. The commenter stated that the rule will help individuals who 
were previously homeless obtain the help and support they need to 
transition to permanent housing and assist in the referral of homeless 
individuals to health care and mental health services. The commenter 
further stated that the case manager ``could provide valuable support 
to veterans regarding education related to the tenant and financial 
responsibilities, healthy meal choices, transportation and other 
community resources.'' We are not making any edits based on this 
comment.
    One commenter was concerned with ``the prohibition against: `the 
use of grant funds 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 Veteran Families 
(SSVF)].' This prohibition is found in the proposed 38CFR61.90(a).'' 
The commenter requested clarification to the regulation to now state 
``that veterans in the HUD-VASH program but not receiving case 
management services therefrom (such as those veterans graduated off of 
those services) would in fact be eligible for the proposed case 
management services.''
    The interim final rule explains that, to maximize those served by 
this new program, these grants may not be used for veterans who are 
receiving case management services from permanent supportive housing 
programs (e.g., HUD-VASH program) or rapid re-housing/homeless 
prevention programs (e.g. SSVF). 83 FR at 25915. In other words, the 
new case management benefits cannot be provided concurrently with case 
management services provided under these other programs. This also 
prevents duplication of benefits.
    We believe that this particular concern centers around those 
veterans who have graduated from VA's Housing and Urban Development 
Veterans Administration Supportive Housing (HUD-VASH) Program and a 
perceived need to clarify their eligibility for case management 
services under this new program.
    HUD-VASH participants graduate when they no longer require, and 
hence participate in, case management services; however, for financial 
reasons they may continue to receive the HUD Section 8 Housing Choice 
Voucher. While exited from case management under this program, they are 
fully integrated within the larger VA system of care and/or the 
community. Consistent with VA HUD-VASH policy, while continuing to use 
their rental assistance Section 8 voucher, they must be given the 
opportunity to return to case management under the HUD-VASH program, if 
needed. Upon review, VHA may approve requests for readmission to case 
management services under the HUD-VASH program. So, we disagree with 
the commenter's underlying assumption that HUD-VASH participants who 
have graduated from case management are foreclosed from obtaining 
needed case management services and so should be eligible for them 
under this new program. A mechanism is already in place for graduates 
from the HUD-VASH program to request readmission to case management. If 
the request is not approved, they may seek these services under grants 
awarded under this new grant program. The bar on the receipt of 
duplicate case management services refers only to cases where case 
management services would be provided under both this new grant program 
and a permanent supportive housing program or rapid re-housing/homeless 
prevention program. For these reasons, we do not believe that further 
clarification in the regulation text is needed. We make no changes 
based on this comment.
    A commenter noted that prohibiting case management through 
Supportive Services for Veterans Families (SSVF) will prohibit 
temporary financial assistance through SSVF. As stated in Sec.  62.1, 
SSVF provides supportive services grants to eligible entities to 
facilitate the provision of supportive services to very low-income 
veteran families who are occupying permanent housing. In developing the

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programming for the case management services grant, it is our intent to 
provide time limited case management services which support permanent 
housing retention. The target population for these services are 
veterans who entered permanent housing from Grant and Per Diem (GPD) 
and Health Care for Homeless Veterans (HCHV) residential services who 
do not have case management support and elect to have such follow-up 
services. Ensuring that there is no duplication of services when such 
case management exists is a prudent use of federal funds to ensure that 
as many homeless veterans as possible can have access to such support. 
Again, the emphasis in the interim final rule reflected this intent by 
stating: ``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. (SSVF)).'' The rule 
does not prohibit temporary financial assistance and simply indicates 
that if a veteran is receiving case management from SSVF they should 
not also be receiving follow-up case management through the GPD case 
management grant. We are not making any changes based on this comment.
    Another commenter indicated that they thought that six months of 
services provided under the case management grant would not be 
sufficient and that veterans need longer than one year of support. We 
believe six months would be sufficient time for the case management 
services offered under this grant. It should be noted that veterans 
receiving case management services will have already received an 
episode of residential services through Grant and Per Diem transitional 
housing or Health Care for Homeless Veterans contract residential 
services prior to entering permanent housing. These programs include 
case management support. We are not making any changes based on this 
comment.
    Based on the rationale set forth in the Supplementary Information 
to the interim final rule and in this final rule, VA is adopting the 
interim final rule with no changes.

Effect of Rulemaking

    Title 38 of the Code of Federal Regulations, as confirmed by this 
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

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3507) requires that 
VA consider the impact of paperwork and other information collection 
burdens imposed on the public. Under 44 U.S.C. 3507(a), an agency may 
not collect or sponsor the collection of information, nor may it impose 
an information collection requirement unless it displays a currently 
valid Office of Management and Budget (OMB) control number. See also 5 
CFR 1320.8(b)(3)(vi).
    This final rule will impose the following new information 
collection requirements. Paragraph (a) of Sec.  61.92 requires that the 
applicant must meet the application requirements 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. The information is needed to establish 
eligibility for the case management services grant. As required by 44 
U.S.C. 3507(d), VA submitted these information collections to OMB for 
its review. OMB approved these new information collection requirements 
associated with the final rule and assigned OMB control number 2900-
0861.

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,'' which requires review by OMB, 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 the Executive Order.
    VA has examined the economic, interagency, budgetary, legal, and 
policy implications of this regulatory action and determined that the 
action is not 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 FYTD.
    This final rule is not an E.O. 13771 regulatory action because this 
final 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

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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 final rule will have no such effect on State, local, and tribal 
governments, or the private sector.

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a major rule, as defined by 5 U.S.C. 804(2).

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.

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.

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. Robert L. 
Wilkie, Secretary, Department of Veterans Affairs, approved this 
document on June 20, 2019, for publication.

    Dated: June 20, 2019.
Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of the Secretary, Department of Veterans Affairs.

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

0
Accordingly, the interim final rule amending 38 CFR part 61, which was 
published at 83 FR 25915 on June 5, 2018, is adopted as a final rule 
without changes.
[FR Doc. 2019-13500 Filed 6-25-19; 8:45 am]
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