[Federal Register Volume 86, Number 184 (Monday, September 27, 2021)]
[Rules and Regulations]
[Pages 53207-53213]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-20734]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

24 CFR Parts 982 and 983

[Docket No. FR-6243-N-01]


Section 8 Housing Choice Vouchers: Revised Implementation of the 
HUD-Veterans Affairs Supportive Housing Program

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing, HUD.

ACTION: Implementation guidance.

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SUMMARY: This document sets forth the policies and procedures for the 
administration of tenant-based and project-based Section 8 Housing 
Choice Voucher (HCV) rental assistance under the HUD-Veterans Affairs 
Supportive Housing (HUD-VASH) program administered by local public 
housing agencies (PHAs) that have partnered with local Veterans Affairs 
(VA) medical facilities or other entities as designated by the 
Secretary of the Department of Veteran Affairs. This document updates 
the definition for the term VA medical center (VAMC) to also include 
designated service providers (DSP). This document also includes new 
waivers and program flexibilities as well as additional general 
guidance.

DATES: The guidance is effective September 27, 2021.

FOR FURTHER INFORMATION CONTACT: Ryan Jones, Director, Housing Voucher 
Management and Operations Division, Department of Housing and Urban 
Development, 451 Seventh Street SW, Room 4216, Washington, DC 20410, 
telephone number 202 708-0477. (This is not a toll-free number.) 
Individuals with hearing or speech impediments may access this number 
via TTY by calling the Federal Relay during working hours at 800-877-
8339. (This is a toll-free number.)

SUPPLEMENTARY INFORMATION:
I. Background
II. Special Rules for the HUD-VASH Voucher Program
    a. Family Eligibility and Selection
    b. Income Eligibility
    c. Initial Term of the HCV
    d. Initial Lease Term
    e. Ineligible Housing
    f. Mobility and Portability of HUD-VASH Vouchers
    g. Case Management Requirements
    h. Termination of Assistance
    i. Turnover of HUD-VASH Vouchers
    j. MTW Agencies
    k. Project-Based Assistance
    l. Section Eight Management Assessment Program (SEMAP)
    m. Reallocation of HUD-VASH Vouchers
    n. HQS Inspections
    o. Exception Payment Standards
    p. Special Housing Types
    q. Maximum Family Share at Initial Occupancy
III. Reporting Requirements

I. Background

    Since 2008, HCV program funding has provided rental assistance 
under a supportive housing program for homeless veterans authorized by 
section 8(o)(19) of the United States Housing Act of 1937, 42 U.S.C. 
1437f(o)(19). The HUD-VASH program combines HUD HCV rental assistance 
for homeless veterans with case management and clinical services 
provided at VA Medical Centers, Community-Based Outpatient Clinics, or 
through a designated service provider (DSP) as approved by the VA 
Secretary (herein referred to generally as VAMC or DSP). Through the 
HUD-VASH program, HUD and VA increase access to affordable housing for 
homeless veterans and provide the support necessary to obtain and 
maintain permanent housing in the community.
    Based on a review of existing permanent supportive housing (PSH) 
models, typical acuity levels of veterans in the program, and the 
availability of providers within VAMCs and in the community who can 
augment care provided by HUD-VASH case managers, the Secretaries of HUD 
and VA jointly determined that the appropriate caseload ratio in HUD-
VASH is a weighted average of 25 veterans per case manager. However, 
actual caseload sizes can vary considerably, based primarily on the 
needs of the veterans being served. Veterans in HUD-VASH are weighted 
based on their stage in the program, with higher weightings applied to 
veterans in more intensive stages of the program, and lower weightings 
applied to those who have stabilized. These weightings and target 
caseload ratios ensure that all veterans in receipt of a HUD-VASH 
voucher are seen as needed by their case manager.
    The initiative known as the HUD-VASH program was authorized 
pursuant to Division K, Title II, of The Consolidated Appropriations 
Act, 2008 (Pub. L. 110-161) (``2008 Appropriation Act'') enacted on 
December 26, 2007 (see proviso (7) under the heading ``Tenant-Based 
Rental Assistance''). All Congressional Appropriations Acts since 2008 
have continued to authorize this program. Therefore, the implementation 
requirements will remain in effect until the HUD-VASH program is no 
longer authorized by Congress or the authorization requirements change.

[[Page 53208]]

    The Appropriations Acts have required HUD to ``make such funding 
available, notwithstanding section 204 (competition provision) of this 
title, to PHAs that partner with eligible VAMCs or other entities as 
designated by the Secretary of the Department of Veterans Affairs, 
based on geographical need for such assistance as identified by the 
Secretary of the Department of Veterans Affairs, PHA administrative 
performance, and other factors as specified by the Secretary of Housing 
and Urban Development in consultation with the Secretary of the 
Department of Veterans Affairs.''
    Based on this language, the allocation of HUD-VASH vouchers have 
been a collaborative, data-driven effort conducted by HUD and the VA. 
The HUD-VASH allocation formula relies on several pieces of data which 
include HUD's point-in-time data submitted by Continuums of Care and VA 
data on contacts with homeless veterans. PHA and VA performance is also 
taken into consideration.
    Additional information on program requirements and procedures may 
be found on the HUD-VASH website at HUD-VASH website.

II. Special Rules for the HUD-VASH Voucher Program

    This section sets forth the design features of the HUD-VASH 
program, including family eligibility, portability, case management, 
and the turnover of these vouchers. This document replaces the special 
rules published in the Federal Register on March 23, 2012 (77 FR 
17086). The FY2008-2021 Appropriations Acts stated ``that the Secretary 
of Housing and Urban Development (in consultation with the Secretary of 
the Department of Veterans Affairs) may waive, or specify alternative 
requirements for any provision of any statute or regulation that the 
Secretary of Housing and Urban Development administers in connection 
with the use of funds made available under this paragraph (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment) upon a finding by the Secretary that 
any such waivers or alternative requirements are necessary for the 
effective delivery and administration of such voucher assistance: 
Provided further, that assistance made available under this paragraph 
shall continue to remain available for homeless veterans upon 
turnover.''
    This document outlines below the waivers or alternative 
requirements determined by the Secretary to be necessary for the 
effective delivery and administration of the HUD-VASH program. These 
waivers or alternative requirements are exceptions to the normal HCV 
requirements, which otherwise govern the provision of HUD-VASH 
assistance. In addition, a PHA may request additional statutory or 
regulatory waivers that it determines are necessary for the effective 
delivery and administration of the program. These requests may be 
submitted to the Secretary for review and decision through the 
Assistant Secretary for Public and Indian Housing through the regular 
waiver process.
    HUD-VASH vouchers under this part are administered in accordance 
with the HCV tenant-based and project-based rental assistance 
regulations set forth at 24 CFR part 982 and 983, respectively. In both 
programs, the PHA pays monthly rental subsidies so that eligible 
families can afford decent, safe, and sanitary housing, secure from 
threats of danger, harm, or loss. HUD provides housing assistance funds 
to the PHA, as well as funds for PHA administration of the program.
    Under the HCV program, families select rent units that meet program 
housing quality standards (HQS). If the PHA approves a family's unit 
and tenancy, the PHA contracts with the property owner to make monthly 
subsidy payments (housing assistance payments) directly to the owner on 
behalf of the family . The family enters a lease with the owner and 
pays its share of the rent to the owner in accordance with the lease. 
Under the HCV tenant-based voucher (TBV) program, the housing 
assistance payments (HAP) contract between the PHA and the owner covers 
only a single unit and a specific assisted family. If the family moves 
out of the leased unit, the HAP contract with the owner terminates. The 
family may generally move to another unit with continued assistance so 
long as the family is complying with program requirements.
    Under the project-based voucher (PBV) program, families occupy 
units under a PBV HAP contract. Generally, there are multiple units 
under the PBV HAP contract. In many cases supportive services are 
provided on-site. All the PBV requirements in 24 CFR part 983 apply 
except where waived as described below.
    Unless expressly noted below, all regulatory requirements and HUD 
directives regarding the HCV TBV and PBV programs are applicable to 
HUD-VASH vouchers, including the use of all HUD-required contracts and 
other forms. The PHA's local discretionary policies adopted in the 
PHA's written administrative plan apply to HUD-VASH vouchers unless 
such local policy conflicts with the requirements of the HUD-VASH 
vouchers outlined below.
    PHAs are required to maintain records that allow for the easy 
identification of families receiving HUD-VASH vouchers. PHAs must 
identify these families in the Information Management System/Public and 
Indian Housing Information Center (IMS/PIC). This record-keeping will 
help ensure that, in accordance with appropriations renewal language, 
HUD-VASH vouchers that are in use will remain available for homeless 
veterans upon turnover.
    The alternative requirements established in this Notice apply to 
all PHAs that administer HUD-VASH vouchers, including those that have 
not received an allocation of HUD-VASH vouchers, but administer these 
vouchers as a receiving PHA under the portability feature of the HCV 
program.
    The new waivers and program flexibilities include: (1) New 
authorization allowing a PHA to act in the role of the VAMC or DSPs for 
the purposes of family selection in cases where the PHA has been 
previously approved for this authority (section II.a.); (2) new 
allowance for a PHA and owner to agree to amend a PBV HAP contract to 
re-designate a regular PBV unit as a unit specifically designated for 
HUD-VASH families (section II.k); (3) new authorization for PHAs to 
apply separate payment standards for HUD-VASH families without 
additional HUD approval (section II.o.); and (4) new requirement that 
PHAs must allow Special Housing Types for HUD-VASH (section II.p.).
    The updates made to existing requirements include: (1) Allowing 
PHAs to house HUD-VASH veterans referred by the VA in a project-based 
voucher unit without selecting from the PHA's waiting lists or applying 
local preferences (section II.a); (2) additional explanation regarding 
the process for portability moves for victims of domestic violence, 
dating violence, sexual assault, and stalking (section II.f); (3) 
additional details regarding case management requirements from the VAMC 
or DSP (section II.g); (4) explanation that, in the case of a family 
break-up, the HUD-VASH assistance must stay with the HUD-VASH veteran; 
however, in the case of domestic violence, dating violence, sexual 
assault, or stalking in which the HUD-VASH veteran is the perpetrator, 
the victim must continue to be assisted (section II.h.); (5) 
explanation that a Moving to Work (MTW) PHA can apply their approved 
MTW provisions to their HUD-VASH program with approval from HUD's 
Housing Choice Voucher

[[Page 53209]]

office (section II.j.); (6) explanation regarding the application of 
HUD-VASH waivers and flexibilities to HUD-VASH PBV (section II.k); (7) 
explanation of HUD-VASH PBV exceptions under the Housing Opportunities 
Through Modernization Act (HOTMA) (section II.k.); (8) explanation that 
when a HUD-VASH family is eligible to move from its PBV unit the family 
must be able to move with a HUD-VASH tenant-based voucher (section 
II.k.); and (9) additional explanation of the HUD-VASH reallocation 
process through voluntary moves between PHAs and voucher recapture for 
future reallocation (section II.m.).
    This document 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 
document is categorically excluded from environmental review under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321).

a. Family Eligibility and Selection

    HUD-VASH eligible families consist of homeless veterans and their 
families. The Appropriations Acts have provided for statutory or 
regulatory waivers or alternative requirements upon a finding by the 
Secretary that such waivers or alternatives are necessary for the 
effective administration and delivery of voucher assistance (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment). The December 17, 2007, Explanatory 
Statement for the 2008 Appropriation Act provides, ``The Appropriations 
Committees expect that these vouchers will be made available to all 
homeless veterans, including recently returning veterans.'' \1\ Section 
8(o)(19) of the United States Housing Act of 1937 (USHA of 1937), which 
requires homeless veterans to have chronic mental illnesses or chronic 
substance use disorders with required treatment of these disorders as a 
condition of receipt of HUD-VASH assistance, is waived.
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    \1\ See, 153 Cong. Rec. H16514 (daily ed., Dec. 17, 2007), 
https://www.congress.gov/crec/2007/12/17/CREC-2007-12-17-pt3-PgH16381.pdf.
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    By agreeing to administer the HUD-VASH program, the PHA is 
relinquishing its authority to determine the eligibility of families in 
accordance with regular HCV program rules and PHA policies with the 
exceptions of income eligibility and lifetime sex offender status. 
Specifically, under the HUD-VASH program, PHAs will not have the 
authority to screen any potentially eligible family members or deny 
assistance for any grounds permitted under 24 CFR 982.552 (broad denial 
for violations of HCV program requirements) and 982.553 (specific 
denial for criminal activity and alcohol abusers), with one exception. 
PHAs will still be required to prohibit admission if any member of the 
household is subject to a lifetime registration requirement under a 
state sex offender registration program. However, unless the family 
member that is subject to lifetime registration under a state sex 
offender registration program is the homeless veteran (which would 
result in denial of admission for the family), the remaining family 
member/s may be served if the family agrees to remove the sex offender 
from its family composition. Accordingly, HUD is exercising its 
authority to waive 42 U.S.C. 1437d(s); 42 U.S.C. 13661(a), (b), and 
(c); and 24 CFR 982.552 and 982.553 regarding the denial of admission, 
except for 982.553(a)(2)(i), which requires denial of admission to 
certain registered sex offenders. These provisions also apply to PBV 
assistance.
    Eligibility determination and veteran selection is done by the 
VAMC, DSP, or the PHA, as described later in this section. In the case 
of the VAMC or DSP, HUD-VASH eligible families are referred to the 
partnering PHA for the issuance of a voucher or selection for a PBV 
unit. As stated above, the PHA must accept these referrals, and written 
documentation of these referrals must be maintained in the tenant file 
at the PHA.
    PHAs are not authorized to maintain a waiting list or apply local 
preferences for the HUD-VASH program. Instead, VA case managers refer 
HUD-VASH eligible families to the PHA for the issuance of a HUD-VASH 
voucher or project-based assistance. If a HUD-VASH-eligible family is 
referred and there is an available PBV unit that is not exclusively 
made available to HUD-VASH families, the PHA may also offer to refer 
the family to the owner for occupancy of that unit if allowable under 
the selection policy applicable to that project, and the owner and PHA 
may amend the PBV HAP contract to designate the PBV unit as a HUD-VASH 
PBV unit. Accordingly, sections 8(o)(6)(A) and (B) and 8(o)(13)(J) of 
the USHA of 1937, 42 U.S.C. 1437f(o)(6)(A) and (B) and (o)(13)(J), 
regarding preferences, have been waived to provide for the effective 
administration of the program. In addition, 24 CFR 982.202, 982.204, 
982.207, and 983.251 relating to applicant selection from the waiting 
list and local preferences, are also waived. Section 983.251(a)(4), 
which disallows renting to relatives except when it may be necessary as 
a reasonable accommodation, is not waived. Note that 24 CFR 
982.202(b)(3) (Family characteristics); 24 CFR 982.202(d) (Admission 
policy); and 24 CFR 983.251(a)(3) (VAWA applies to admission to the 
project-based voucher program) continue to apply. Sections 982.203, 
982.205, and 982.206 regarding special admissions, cross-listing of the 
waiting list, and opening and closing the waiting list do not apply to 
the HUD-VASH program.
    The VA may approve a PHA with unleased HUD-VASH vouchers as a DSP 
for the purposes of veteran selection and intake. This DSP approval 
allows a PHA to issue a HUD-VASH voucher to a veteran without a 
referral from the VA. The PHA is responsible for determining the 
veteran is eligible for VA HUD-VASH case management. The PHA must refer 
the veteran to the VA for case management and must provide temporary 
case management until the VAMC has completed intake of the veteran. 
PHAs approved under this authority must ensure that while using 
unleased HUD-VASH vouchers, they maintain sufficient HUD-VASH vouchers 
available to immediately issue a HUD-VASH voucher to veterans referred 
by the VA. HUD and the VA will publish further guidance on the 
requirements for a PHA to be approved and additional details necessary 
for PHAs to implement this provision. Until such guidance is issued, 
PHAs may not be approved as DSPs.
    Regarding verifying Social Security Numbers (SSN) for homeless 
veterans and their family members, an original document issued by a 
federal or state government agency which contains the name of the 
individual and the SSN of the individual along with other unique 
identifying information of the individual is acceptable in accordance 
with 24 CFR 5.216(g). In the case of the homeless veteran, the PHA must 
accept the Certificate of Release or Discharge from Active Duty (DD-
214) or the VA-verified Application for Health Benefits (10-10EZ) as 
verification of SSN and cannot require the veteran to provide an SSN 
card. These documents must also be accepted for proof of age purposes 
in lieu of birth certificates or other PHA-required documentation. 
Please note that veterans are also issued photo identification cards by 
the VA. If such identification is required by the PHA, these cards must 
be accepted by the

[[Page 53210]]

PHA in lieu of another type of government-issued photo identification. 
These cards may also be used to verify SSNs and date of birth.
    When adding a family member after the HUD-VASH family is admitted 
to the program, the rules of Sec.  982.551(h)(2) apply. Other than the 
birth, adoption, or court-awarded custody of a child, the PHA must 
approve additional family members and may apply its regular screening 
criteria in doing so.
    *** Civil rights requirements cannot be waived. The HUD-VASH 
program is administered in accordance with applicable civil rights and 
fair housing requirements. These include applicable authorities under 
24 CFR 5.105(a) and 24 CFR 982.53 including, but not limited to, the 
Fair Housing Act, Section 504 of the Rehabilitation Act of 1973, Title 
VI of the Civil Rights Act of 1964, the Age Discrimination Act, the 
Americans with Disabilities Act, and HUD's Equal Access Rule.\2\
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    \2\ See 24 CFR 5.105(a); See also, U.S. Department of Housing 
and Urban Development, Fair Housing Rights and Obligations, https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_rights_and_obligations (last visited Sept. 17, 2021).
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    When HUD-VASH applicants or recipients include veterans with 
disabilities or family members with disabilities, HUD's reasonable 
accommodation requirements apply. These standards require PHAs to make 
a reasonable adjustment to rules, policies, practices, and procedures 
when it may be necessary to enable an applicant or resident with a 
disability to have an equal opportunity to use and enjoy a dwelling, 
the common areas of a dwelling, or participate in or access a 
recipient's programs and activities. These standards extend to various 
aspects of program implementation, including, for example, denial or 
termination of assistance, initial search term of the HCV, initial 
lease term, and informal reviews and hearings. In the case of project-
based assistance, this also includes providing structural changes to a 
unit or public or common use area when they may be needed as a 
reasonable accommodation for an applicant or participant or their 
household members with a disability. Other obligations include, for 
example, effective communication with persons with disabilities, 
physical accessibility requirements, and overall nondiscrimination in 
the administration of the program.*

b. Income Eligibility

    The PHA must determine income eligibility for HUD-VASH families in 
accordance with 24 CFR 982.201. Income targeting requirements of 
section 16(b) of the USHA of 1937, as well as 24 CFR 982.201(b)(2), do 
not apply for HUD-VASH families so that participating PHAs can 
effectively serve the eligible population specified in the 
Appropriations Acts; that is, homeless veterans, who may be at a 
variety of income levels, including low-income. The PHA may, however, 
choose to include the admission of extremely low-income HUD-VASH 
families in its income targeting numbers for the fiscal year in which 
these families are admitted. In conformance with normal program rules, 
PHAs may not deny admission to a family with zero income and must 
consider hardship circumstances before charging a minimum rent in 
accordance with 24 CFR 5.630(b).

c. Initial Search Term of the Voucher

    Recognizing the challenges that HUD-VASH participants may face with 
their housing search, HUD-VASH vouchers must have an initial search 
term of at least 120 days. Therefore, 24 CFR 982.303(a), which states 
that the initial search term must be at least 60 days, shall not apply, 
since the initial term must be at least 120 days. Any extensions, 
suspensions, and progress reports will remain under the policies in the 
PHA's administrative plan but will apply after the minimum 120-day 
initial search term. Extensions of search terms may also be needed as a 
reasonable accommodation for a household with a member with a 
disability, such as for example, due to the difficulty in finding a 
unit that meets one's disability-related needs, e.g., physically 
accessible unit, unit near accessible transportation, unit near medical 
or other facilities.

d. Initial Lease Term

    Under the HCV program, voucher participants must enter an initial 
lease with the owner for at least one year, unless a shorter term would 
improve housing opportunities for the tenant and the shorter term is a 
prevailing market practice. To provide a greater range of housing 
opportunities for HUD-VASH voucher holders, initial leases may be less 
than 12 months; therefore, both section 8(o)(7)(A) of the USHA of 1937, 
42 U.S.C. 1437f(o)(7)(A), and 24 CFR 982.309(a)(2)(ii) are waived. Note 
that this waiver does not apply to PBVs.

e. Ineligible Housing

    HUD-VASH families will be permitted to live on the grounds of a VA 
facility in units developed to house homeless veterans. This applies to 
both tenant-based assistance and PBV. Therefore, 24 CFR 982.352(a)(5) 
and 983.53(a)(2), which prohibit units on the physical grounds of a 
medical, mental, or similar public or private institution, are waived 
for that purpose only.

f. Mobility and Portability of HUD-VASH Vouchers

    An eligible family issued a HUD-VASH voucher must receive case 
management services provided by the partnering VAMC or DSP. Therefore, 
special mobility and portability procedures must be established. HUD-
VASH participant families may reside only in those jurisdictional areas 
that are accessible to case management services as determined by the 
VAMC or DSP. Since the VAMC or DSP will be identifying homeless 
veterans eligible to participate in the HUD-VASH program, section 
8(r)(1)(B)(i) of the USHA of 1937, 42 U.S.C. 1437f(r)(1(B)(i), which 
restricts portability in cases where the family did not reside in the 
jurisdiction of the PHA at the time of application for HCV assistance, 
and 24 CFR 982.353(a), (b), and (c), which affects where a family can 
lease a unit with HCV assistance, do not apply. HUD may publish PIH 
notices from time to time to further explain portability requirements 
under the HUD-VASH program.
(1) Portability Moves Within Same Catchment Area (or Area of Operation) 
Where Case Management Is Provided by the Initial PHA's Partnering VAMC 
or DSP
    If the family initially leases up, or moves, under portability 
provisions, but the initial PHA's partnering VAMC or DSP will still be 
able to provide the necessary case management services due to the 
family's proximity to the partnering VAMC or DSP, the receiving PHA 
must process the move in accordance with the portability procedures of 
24 CFR 982.355. However, since the initial PHA must maintain records on 
all HUD-VASH families receiving case management services from its 
partnering VAMC or DSP, receiving PHAs without a HUD-VASH program must 
bill the initial PHA. Therefore, 24 CFR 982.355(d), which gives the 
receiving PHA the option to absorb the family into its own HCV program 
or bill the initial PHA, is not applicable.
(2) Portability Moves Within Same Catchment Area Where Both PHAs Have 
Received HUD-VASH Vouchers
    The receiving PHA may bill the initial PHA or absorb the family 
into its own HUD-VASH program if the VAMC or DSP providing the initial 
case management agrees to the absorption by the receiving PHA and the 
transfer of

[[Page 53211]]

case management. The absorption will also entail the availability of a 
HUD-VASH voucher and case management provision by the receiving PHA's 
partnering VAMC or DSP.
(3) Portability Moves Where Receiving PHA Is Beyond Catchment Area
    If a family wants to move to another jurisdiction where it will not 
be possible for the initial PHA's partnering VAMC or DSP to provide 
case management services, the VAMC or DSP must first determine that the 
HUD-VASH family could be served by another VAMC or DSP that is 
participating in this program, and the receiving PHA must have a HUD-
VASH voucher available for this family. In these cases, the family must 
be absorbed by the receiving PHA either as a new admission (upon 
initial participation in the HUD-VASH program) or as a portability 
move-in (after an initial leasing in the initial PHA's jurisdiction). 
Upon absorption, the initial PHA's HUD-VASH voucher will be available 
to lease to a new HUD-VASH eligible family, as determined by the 
partnering VAMC or DSP, and the absorbed family will count toward the 
number of HUD-VASH slots awarded to the receiving PHA.
    When the receiving PHA completes the Family Report (HUD-50058) 
under the scenario described above, the action type that must be 
recorded on line 2a is ``1'' for a new admission (a family that is new 
to the HCV program) or ``4'' for a portability move-in (a family that 
was previously leased up in the jurisdiction of the initial PHA). 
Whether the family is a new admission or portability move-in, in 
section 12 of the HUD-50058, line 12d is always marked ``Y.'' In cases 
of portability where families move out of the catchment area of the 
initial PHA, 12e must be 0 since the family must be absorbed, and 12f 
must be left blank.
(4) Portability Moves Where Receiving PHA Is Beyond Catchment Area for 
Victims of Domestic Violence, Dating Violence, Sexual Assault, and 
Stalking
    Veterans who request to port beyond the catchment area of the VAMC 
or DSP where they are receiving case management to protect the health 
or safety of a person who is or has been the victim of domestic 
violence, dating violence, sexual assault, or stalking, and who 
reasonably believes him- or herself to be threatened with imminent harm 
from further violence by remaining in the dwelling unit (or any family 
member has been the victim of a sexual assault that occurred on the 
premises during the 90-calendar-day period preceding the family's move 
or request to move), may port prior to receiving approval from the 
receiving VAMC or DSP. The initial PHA must follow its emergency 
transfer plan as described in 24 CFR 5.2005(e). PHAs may require verbal 
self-certification or a written request from a participant seeking a 
move beyond the catchment area of the VAMC or DSP.
    The verbal self-certification or written request must include 
either, a statement expressing why the participant reasonably believes 
that there is a threat of imminent harm from further violence if the 
participant were to remain in the same dwelling unit assisted under the 
PHA; or a statement that the tenant was a sexual assault victim and 
that sexual assault occurred on the premises during the 90-day period 
preceding the participant's request for the move. The veteran escaping 
violence must be admitted to the VAMC or DSP's caseload. The 
participant must still port to a PHA that has a HUD-VASH program; if 
the receiving PHA does not have a HUD-VASH voucher available to lease, 
they may bill the initial PHA until a HUD-VASH voucher is available, at 
which point the porting veteran must be absorbed into the receiving 
PHA's program.
(5) Portability Moves when Case Management Is No Longer Required
    If the family no longer requires case management, as determined by 
the VAMC or DSP, there are no portability restrictions. PHAs must 
follow the regulatory requirements for portability found at 24 CFR 
982.355. When completing the HUD-50058, the family will continue to be 
coded ``VASH'' on line 2n unless the family has been moved to a regular 
voucher, in which case the code in 2n would be left blank.

g. Case Management Requirements

    The VAMC or DSP's responsibilities include: (1) The screening of 
homeless veterans to determine whether they meet the HUD-VASH program 
participation criteria established by the VA national office; (2) 
assisting veterans with the PHA application and assisting the veteran 
family with obtaining needed PHA documentation to ensure rapid voucher 
issuance; (3) referrals of homeless veterans to the PHA; (4) providing 
case management and supportive services to potential HUD-VASH program 
participants, as needed, prior to PHA issuance of rental vouchers; (5) 
providing housing search assistance to HUD-VASH participants with 
rental vouchers; (6) identifying the social service and medical needs 
of HUD-VASH participants and providing, or ensuring the provision of, 
regular ongoing case management, outpatient health services, 
hospitalization, and other supportive services, as needed, throughout 
this initiative; and (7) maintaining records and providing information 
for evaluation purposes, as required by HUD and the VA.
    As a condition of HCV rental assistance, both tenant-based 
assistance and PBV, a HUD-VASH eligible veteran must receive the case 
management services noted above, as needed, directly from or arranged 
by, the VAMC or DSP. The VAMC or DSP, in consultation with the veteran, 
is responsible for determining if case management is required and if 
the case management requirement is satisfied.
    If a veteran no longer requires case management, but maintains 
their HUD-VASH voucher assistance, the VAMC or DSP will maintain 
contact with the veteran family to provide support and planning 
assistance with the recertification and reinspection process. The VAMC 
or DSP case manager will remain available to provide support to the 
veteran family, as needed.

h. Termination of Assistance

    There are two alternative requirements for termination of 
assistance for HUD-VASH participants. As detailed above, HUD-VASH 
voucher assistance is contingent upon participation in case management, 
as required by the VAMC or DSP. If the VAMC or DSP has determined that 
a veteran is not participating in required case management, without 
good cause, the PHA must terminate the family from the HUD-VASH 
program. However, a VAMC or DSP determination that the veteran does not 
require or no longer requires case management is not grounds for 
termination of voucher or PBV assistance. In such case, and at its 
option, the PHA may offer the family continued assistance through one 
of its regular vouchers, to free up the HUD-VASH voucher for another 
eligible family referred by the VAMC or DSP. If the PHA has no voucher 
to offer, the family will retain its HUD-VASH voucher, or PBV unit, 
until such time as the PHA has an available voucher for the family. If 
the family no longer requires case management, there are no portability 
restrictions. Normal portability rules apply.
    Second, PHAs may terminate a family evicted from housing assisted 
under the program for a serious violation of the lease, but they are 
not required to do so. As such, the regulation at 24 CFR 982.552((b)(2) 
is amended to state, ``The PHA may terminate program assistance for a 
family evicted from housing assisted under the program for serious 
violation of the lease.'' Prior to terminating HUD-VASH participants,

[[Page 53212]]

HUD strongly encourages PHAs to exercise their discretion under 24 CFR 
982.552(c)(2) and consider all relevant circumstances of the specific 
case, as well as including the role of the case manager and the impact 
that ongoing case management services can have on mitigating the 
conditions that led to the potential termination, prior to determining 
whether to terminate assistance. PHAs also must grant reasonable 
accommodations for persons with disabilities in accordance with 24 CFR 
part 8. In addition, a HUD-VASH participant family must not be 
terminated after admission, for a circumstance or activity that 
occurred before admission and was known to the PHA but could not be 
considered at the time of admission due to the HUD-VASH Operating 
Requirements. The PHA can only terminate the family's assistance for 
program violations that occur after the family's admission to the 
voucher program.
    Generally, in the case of a family break-up, the HUD-VASH 
assistance must stay with the HUD-VASH veteran. However, in the case of 
domestic violence, dating violence, sexual assault, or stalking, in 
which the HUD-VASH veteran is the perpetrator, the victim must continue 
to be assisted. Upon termination of the perpetrator's HUD-VASH voucher 
due to the perpetrator's acts of domestic violence, dating violence, 
sexual assault, or stalking, the victim must be given a regular HCV if 
one is available, and the perpetrator's HUD-VASH voucher must be used 
to serve another eligible veteran family. If a regular HCV is not 
available for the victim, the perpetrator must be terminated from 
assistance, and the victim will continue to utilize the HUD-VASH 
voucher.

i. Turnover of HUD-VASH Vouchers

    In accordance with the Appropriations Acts, upon turnover, HUD-VASH 
vouchers must be issued to homeless veteran families as identified by 
the VAMC or DSP, as noted above.

j. Moving-to-Work (MTW) Agencies

    HUD-VASH vouchers may be administered in accordance with 
flexibilities approved under PHA's Standard MTW Agreement or MTW 
Operations Notice with approval from HUD's Housing Choice Voucher 
office. PHAs must submit a request through their local field office to 
operate HUD-VASH in accordance with approved MTW flexibilities. 
Requests will be approved provided the flexibilities to not conflict 
with the stated HUD-VASH program requirements. However, these vouchers 
are never eligible for MTW fungibility. HUD-VASH vouchers must be 
reported in the IMS/PIC system on either the regular HUD-50058 or HUD-
MTW 50058 for vouchers under the agency's MTW Agreement.

k. Project-Based Assistance

    Section 8(o)(13)(D) of the USHA of 1937 (42 U.S.C. 1437(o)(13)(D)), 
as amended by Section 106(a)(3) of the Housing Opportunities Through 
Modernization Act (HOTMA) (Pub. L. 114-201, 130 Stat. 782), is waived 
for HUD-VASH vouchers so that all units exclusively made available to 
HUD-VASH families in a PBV project are exempted from the PBV income-
mixing requirements (project cap). The project cap refers to the number 
of units in a project that may receive PBV assistance and is generally 
the higher of 25 units or 25 percent of units in the project. Units 
exclusively made available to HUD-VASH families are excluded from (do 
not count against) this PBV project cap. Additionally, HUD-VASH 
supportive services only need to be provided to all HUD-VASH families 
in the project, not all families receiving PBV assistance in the 
project. If a HUD-VASH family does not require or no longer requires 
case management, the unit continues to count as an excepted PBV unit 
for as long as the family resides in that unit. Likewise, Section 
8(o)(13)(B) of the USHA of 1937, 42 U.S.C. 1437f(o)(13)(B)), as amended 
by Section 106(a)(2) of HOTMA, is waived for HUD-VASH vouchers so that 
HUD-VASH units made available under a competitive PIH notice for HUD-
VASH PBV units, are exempt from the PBV program limitation. This 
exception only applies to HUD-VASH PBV vouchers awarded through the 
HUD-VASH PBV set-aside process. All other HUD-VASH vouchers that the 
PHA opts to project-base, are still subject to the PBV program 
limitation.
    Pursuant to the HUD-VASH case management and termination 
requirements, a HUD-VASH family's PBV assistance must be terminated for 
failure to participate in case management as required by the VAMC or 
DSP. Upon notification by the VAMC or DSP of the family's failure to 
participate, without good cause, in case management, the PHA must 
provide the family a reasonable time period (as established by the PHA) 
to vacate the unit. The PHA must terminate assistance to the family at 
the earlier of (1) the time the family vacates or (2) the expiration of 
the reasonable time period given to vacate (the lease terminates at the 
same time as termination of assistance per 24 CFR 983.256(f)(3)(v)). If 
the family fails to vacate the unit within the established time, the 
owner may evict the family. If the owner does not evict the family, the 
PHA must remove the unit from the HAP contract or amend the HAP 
contract to substitute a different unit in the project if the project 
is partially assisted. A PHA may add the removed unit to the HAP 
contract after the ineligible family vacates the property.
    If a HUD-VASH family is eligible to move from its PBV unit and 
there is no HUD-VASH tenant-based voucher available at the time the 
family requests to move, the PHA may require a family that still 
requires case management to wait for a HUD-VASH tenant-based voucher 
for a period not to exceed 180 days. If a HUD-VASH tenant-based voucher 
is still not available after that time period, the family must be 
allowed to move with its HUD-VASH voucher. Alternatively, the PHA may 
allow the family to move with its HUD-VASH voucher without having to 
meet this 180-day waiting period. In either case, the PHA may either 
replace the assistance in the PBV unit with one of its regular vouchers 
if the unit is eligible for a regular PBV (for instance, so long as the 
unit is not on the grounds of a medical facility and so long as the 
unit is eligible under the PHA's program and project caps) or the PHA 
and owner may agree to temporarily remove the unit from the HAP 
contract. If a HUD-VASH veteran has been determined to no longer 
require case management, the PHA must allow the family to move with the 
first available tenant-based voucher if no HUD-VASH voucher is 
immediately available and cannot require the family to wait for a HUD-
VASH voucher to become available.
    Under HOTMA, PHAs no longer need authorization from HUD to convert 
tenant-based HUD-VASH vouchers to project-based HUD-VASH vouchers. 
However, PHAs must consult with the partnering VAMC or DSP to ensure 
approval of the project. PHAs and the partnering VAMC or DSP are 
expected to communicate regarding the PBV planning and development. 
PHAs may project-base HUD-VASH vouchers in projects alongside other PBV 
units (the other PBV units must be attached in accordance with PBV 
requirements) and may execute a single HAP contract covering both the 
HUD-VASH PBVs and the other PBVs. In the description of units in 
Exhibit A of the HAP contract, PHAs must indicate the number of units 
that will be exclusively made available to HUD-VASH families. The PHA 
must refer only HUD-VASH families to PBV units exclusively made 
available to HUD-VASH families and to PBV units funded through a HUD-

[[Page 53213]]

VASH PBV set-aside award. The PHA and owner may agree to amend a PBV 
HAP contract to re-designate a regular PBV unit as a unit specifically 
designated for HUD-VASH families, so long as the PHA first consults 
with the VAMC or DSP. Additionally, the PHA and owner may agree to 
amend a PBV HAP contract to re-designate a unit specifically designated 
for HUD-VASH families as a regular PBV unit, so long as the unit is not 
funded through a HUD-VASH PBV set-aside award and is eligible for a 
regular PBV (for instance, the unit is not on the grounds of a medical 
facility and the unit is eligible under the PHA's program and project 
caps).
    PBV project selection for HUD-VASH must follow all regular project 
selection regulations.

l. Section Eight Management Assessment Program (SEMAP)

    HUD-VASH vouchers will remain excluded from the SEMAP leasing 
indicator. Therefore, 24 CFR 985.3(n)(1)(i) and (ii) are still waived. 
During a HUD-VASH PHA's calendar year, the prorated budget authority 
available for HUD-VASH vouchers and the units associated with that 
budget authority will be excluded from the denominators for both units 
leased, and dollars expended.

m. Reallocation of HUD-VASH Vouchers

    Under the Appropriation Acts, Congress has directed VA and HUD to 
collaboratively allocate HUD-VASH vouchers based on current 
geographical need for such assistance. In recognition that there may be 
changes and shifts in the population of homeless veterans over time, it 
may become necessary for the VA and HUD to jointly reallocate HUD-VASH 
vouchers to better address the current needs of the homeless veteran 
population. This reallocation may be done in one of two ways. If there 
is continued need at the VAMC or DSP, HUD-VASH vouchers may be 
voluntarily moved between PHAs administering HUD-VASH programs within 
the same VAMC or DSP catchment area. Alternatively, if it has been 
determined that a VAMC or DSP no longer has sufficient need and will 
not be able to utilize their available HUD-VASH vouchers, HUD and VA 
may choose to jointly recapture HUD-VASH vouchers from the VAMC or DSP 
and any partnering PHA(s). Recaptured vouchers, and any associated 
funding, will be reallocated through a national allocation process, to 
areas with current need. HUD will issue additional PHA guidance on both 
HUD-VASH voucher voluntary moves within a VAMC or DSP and the HUD-VASH 
recapture processes.

n. HQS Inspections

    To expedite the leasing process for tenant-based HUD-VASH, PHAs may 
pre-inspect available units that veterans may be interested in leasing 
to maintain a pool of eligible units. If a HUD-VASH family selects a 
unit that passed a HQS inspection (without intervening occupancy) 
within 45 days of the date of the Request for Tenancy Approval (form 
HUD-52517), the unit may be approved as long as it meets all other 
conditions under 24 CFR 982.305. As required by 24 CFR 982.353(e), a 
PHA is prohibited from directly or indirectly reducing the family's 
opportunity to select among all available units. All regulatory 
requirements pertaining to HQS found at 24 CFR 982.401 apply to HUD-
VASH.

o. Exception Payment Standards

    Many housing markets with a high need for HUD-VASH are very 
competitive with a shortage of affordable rental units. In addition, 
landlords may be reluctant to rent to homeless individuals due to poor 
credit history or other issues. To assist HUD-VASH participants in 
finding affordable housing, especially in competitive markets, HUD is 
waiving 24 CFR 982.503(a)(3) to allow a PHA to establish a HUD-VASH 
exception payment standard. Without this waiver, a PHA is required to 
establish a single payment standard amount for each unit size. 
Additionally, 982.503(b)(iii) is waived so that PHAs may go up to, but 
no higher than 120 percent of the published metropolitan area-wide FMRs 
or Small Area FMRs (based on which FMRs the PHA is applying) 
specifically for HUD-VASH families. A PHA that wants to establish a 
HUD-VASH exception payment standard over 120 percent must still request 
a waiver from HUD through the regular waiver process outlined in notice 
PIH 2018-16, or any successor notices. Exception payment standards 
implemented by the PHA under this Section also apply in determining 
rents for PBV projects with units exclusively made available to HUD-
VASH families (see 24 CFR 983.301).

p. Special Housing Types

    Special housing types can be particularly useful to HUD-VASH 
clients, as it can increase the availability of housing, and for some 
veterans, can be a better housing environment than a single-family 
unit. As such, PHAs must permit HUD-VASH clients to use the following 
special housing types for tenant-based HUD-VASH assistance, regardless 
of whether these types are permitted in their administrative plan for 
other families: single room occupancy (SRO); congregate housing; group 
home; shared housing; and cooperative housing. Regulations for these 
housing types can be found at 24 CFR part 982, subpart M.
    Consistent with the regulations, HUD-VASH PBV can never be applied 
to shared housing.

III. Reporting Requirements

    The VASH code was established for use on line 2n of the Family 
Report (form HUD-50058) or 2p of the MTW 50058, to indicate if the 
family participates in a special program. The information collection 
requested on both Family Reports has been approved by the Office of 
Management and Budget (OMB) and given OMB control number 2577-0083. No 
person is required to respond to, nor shall any person be subject to a 
penalty for failure to comply with a collection of information subject 
to the requirements of the Paperwork Reduction Act (PRA), unless that 
collection displays a currently valid OMB control number. This code 
must remain on the HUD-50058 and MTW 50058 for the duration of the HUD-
VASH family's participation in the program. The PHA that administers 
the HUD-VASH voucher on behalf of the family (regardless of whether the 
PHA has received an allocation of HUD-VASH vouchers) must enter and 
maintain this code on the HUD-50058 or MTW 50058.
    Data will also be captured in the Voucher Management System (VMS) 
on monthly leasing and expenditures for HUD-VASH vouchers.
    For any additional systems reporting requirements that may be 
established, HUD will provide further guidance.

Dominique Blom,
General Deputy Assistant Secretary for Public and Indian Housing.
[FR Doc. 2021-20734 Filed 9-24-21; 8:45 am]
BILLING CODE 4210-67-P