[Federal Register Volume 87, Number 146 (Monday, August 1, 2022)]
[Proposed Rules]
[Pages 46909-46916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16370]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 61

RIN 2900-AR35


VA Homeless Providers Grant and Per Diem Program

AGENCY: Department of Veterans Affairs.

ACTION: Proposed rule.

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SUMMARY: The Department of Veterans Affairs (VA) is proposing to amend 
its regulations that govern its Homeless Providers Grant and Per Diem 
Program. This proposed rule would implement the Johnny Isakson and 
David P. Roe, M.D. Veterans Health Care and Benefits Improvement Act of 
2020 by amending the allowable rate of per diem VA provides to grant 
recipients and eligible entities for homeless veterans and establishing 
a new rate for homeless veterans who care for a minor dependent by 
adding an additional per diem amount for each minor dependent. This 
proposed rule would also make technical corrections and update outdated 
terminology and cross-references.

DATES: Comments must be received on or before September 30, 2022.

ADDRESSES: Comments may be submitted through www.Regulations.gov. 
Comments should indicate that they are submitted in response to [``RIN 
2900-AR35--VA Homeless Providers Grant and Per Diem Program.''] 
Comments received will be available at regulations.gov for public 
viewing, inspection or copies.

FOR FURTHER INFORMATION CONTACT: Chelsea Watson, Director, Grant/Per 
Diem Program, (673/GPD), VA National Grant and Per Diem Program Office, 
810 Vermont Ave. NW, Washington, DC 20420. [email protected] (813) 979-
3570. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: On January 5, 2021, section 4204 of the 
Johnny Isakson and David P. Roe, M.D. Veterans Health Care and Benefits 
Improvement Act of 2020, Public Law 116-315 (the Act), amended VA's 
authority for the VA Homeless Providers Grant and Per Diem (GPD) 
Program in 38 United States Code (U.S.C.) 2012. The GPD Program 
provides grants to recipients and eligible entities to provide 
transitional housing with supportive services for veterans experiencing 
homelessness as they transition to permanent housing. The purpose of 
the GPD Program is to promote the development and provision of 
supportive housing or supportive services with the goal of helping 
homeless veterans achieve residential stability, increase their skill 
levels and income, and obtain greater self-determination. Section 2012 
establishes the parameters for the rate of per diem payments VA will 
provide to a grant recipient or eligible entity for services furnished 
to homeless veterans. VA implements section 2012 in regulation in 38 
Code of Federal Regulations (CFR) part 61.
    The Act amended the parameters in which VA can adjust the per diem 
amount and established an additional amount of per diem for veterans 
with minor dependents. Therefore, we propose to amend 38 CFR part 61 to 
reflect these statutory changes. We also

[[Page 46910]]

propose to make technical edits to part 61 and eliminate outdated 
terminology and cross-references.

Substantive Amendments

    As noted above, VA is proposing several substantive changes to part 
61 to implement the Act.

Section 61.1 Definitions

    Section 61.1 of 38 CFR provides the definitions for the GPD 
Program. In this rulemaking, we propose to add a definition to the list 
of definitions in Sec.  61.1. The Act amended section 2012 to revise 
subsection (a)(2)(A)(iii) to establish an additional amount available 
to a recipient of a grant or eligible entity for services to homeless 
veterans when the eligible veteran has care of a minor dependent. We 
would, therefore, propose to add a definition of minor dependent to 
clearly state who VA considers a minor dependent for purposes of this 
additional per diem amount.
    VA conducted a review of many States and Federal agencies to 
determine how it should define the term minor dependent; however, we 
found that the States and Federal agencies have varying definitions of 
minor dependent. We also found that some Federal agencies, such as VA, 
do not define the term minor dependent, but instead define the term 
child. Section 101(4) of title 38, U.S.C., defines the term child for 
VA's purposes generally as a person who is unmarried and is (1) under 
the age of eighteen years; (2) who, before attaining the age of 
eighteen years, became permanently incapable of self-support; or (3) 
who, after attaining the age of eighteen years and until completion of 
education or training (but not after attaining the age of twenty-three 
years), is pursuing a course of instruction at an approved educational 
institution. The definition also includes a detailed description of the 
required familial relationship to the veteran.
    For the purposes of the definition of minor dependent for the GPD 
program, we propose to adopt VA's definition of child in section 101(4) 
with minor changes. We would define minor dependent as someone who is 
unmarried, is identified by the veteran as a family member when 
presenting for GPD services, and is either under the age of 23 years 
old or is 23 years old or older and became permanently incapable of 
self-support before reaching the age of 23. We would exclude 
emancipated children, as they have taken the affirmative step to 
establish their independence, meaning they are no longer dependents. 
Instead of utilizing the detailed and nuanced description of the 
relationship between the minor dependent and the veteran that is in 
section 101(4), for the purposes of the GPD program, we would permit 
the veteran to identify the minor dependent as a family member. This is 
consistent with how we administer other grant programs, such as the 
Supportive Services for Veteran Families Grant Program. It is also 
important because it would allow for flexibility for this population of 
veterans who may not have traditional family structures. In addition, 
instead of distinguishing between the age of 18 and up to 23 years old 
based upon completion of educational training, we would permit all 
individuals to be minor dependents up to 23 years old. Doing so would 
make it easier for veterans and their minor dependents so that no 
verification of educational training would be required.

Section 61.33 Payment of Per Diem

    The Act amended section 2012 by adjusting the parameters under 
which VA can pay grant recipients and eligible entities. Section 
2012(a)(2), as amended, continues to provide that the rate for such per 
diem payments shall be the daily cost of care estimated by the grant 
recipient or eligible entity, as adjusted by VA, excluding other 
sources of income. The Act revised section 2012(a)(2)(A) by adding an 
additional amount for services provided to a homeless veteran caring 
for a minor dependent (as discussed above). The Act also revised 
section 2012(a)(2)(B) to provide that any adjustment may not result in 
a rate that is lower than the rate in effect under this paragraph as in 
effect immediately preceding the date of enactment of the Navy SEAL 
Bill Mulder Act of 2020 (Title IV of the Act, which had a date of 
enactment of January 5, 2021) and may not result in a rate that exceeds 
the rate that is 115 percent of the rate authorized for State homes for 
domiciliary care under 38 U.S.C. 1741(a)(1)(A). The Act also added a 
new item in section 2012(a)(2)(B)(i)(II)(bb) that provided that the 
rate may be determined based on locality.
    In this rulemaking, we propose to amend 38 CFR 61.33, regarding 
payment of per diem, to be consistent with the Act. Current Sec.  
61.33(c) provides the rate of per diem payment for each veteran in 
supportive housing shall be the lesser of: (1) the daily cost of care 
estimated by the per diem recipient minus other sources of payments to 
the per diem recipient for furnishing services to homeless veterans 
that the per diem recipient certifies to be correct (other sources 
include payments and grants from other departments and agencies of the 
United States, from departments of local and State governments, from 
private entities or organizations, and from program participants); or 
(2) the current VA State home program per diem rate for domiciliary 
care, as set by the Secretary under 38 U.S.C. 1741(a)(1). We, 
therefore, propose to amend paragraph (c) to align with the statutory 
changes made by the Act.
    We would amend paragraph (c)(2) to state the maximum allowable rate 
is the rate as adjusted by the Secretary under 38 U.S.C. 
2012(a)(2)(B)(i)(II)(aa) and made available on the program's website. 
Referencing the statutory citation will direct the public to the 
criteria, and if there is a change to the statutory language in the 
future, VA would not necessarily need to amend its regulations to be in 
alignment with the new changes. Rather, VA would maintain seamless 
compliance with evolving statutory authorities by implementing the 
necessary changes regarding the rate through Notices of Funding 
Opportunities (NOFO), grant agreements, and the program website. We 
note that the maximum rates are currently posted on the GPD Program's 
website which will not reflect rates that are lower than $49.91 
(https://www.va.gov/HOMELESS/GPD_ProviderRate.asp), and we propose to 
continue to provide the rates on such a public-facing VA website.
    The Act also established a new subsection (e) in section 2012 that 
allows reimbursement of certain fees charged to a recipient of a grant 
under section 2011, 2013, or 2061, or a recipient of per diem payments 
under section 2012 of title 38 for the use of the homeless management 
information system (HMIS) described in section 402(f) of the McKinney 
Vento Homeless Assistance Act (42 U.S.C. 11360a(f)) in amounts the 
Secretary determines reasonable, and if the Secretary determines that 
the grant or per diem payment recipient is unable to obtain information 
contained in such system through other means and at no cost to the 
recipient. However, the GPD program historically considered these fees 
to be allowable costs that could be calculated as part of the indirect 
or direct cost of the grant, as applicable; per diem recipients can 
continue to include the costs of accessing HMIS into the cost of care 
calculations as usual, and if HMIS costs result in a rate that exceeds 
the cap, those costs can be accommodated. Therefore, we would continue 
to include these costs in the per diem payments, and we do not believe 
it necessary to amend the regulations accordingly. Nevertheless,

[[Page 46911]]

VA understands the importance of HMIS participation and would continue 
to emphasize its importance to the fullest extent through other means, 
such as through NOFOs, grant agreements, the case management program, 
and other communication tools.
    We note that VA published a final rule on June 25, 2021, 86 FR 
33518, that inadvertently removed an exception to the rate of payment 
for individual veterans, in what was previously in the introductory 
sentence in 38 CFR 61.33(b) and in paragraph (b)(3). The omitted 
language should have been included in the introductory sentence of 
current paragraph (c) and as paragraph (c)(3). We propose to correct 
this omission. We would amend the introductory sentence of paragraph 
(c) to now add an exception under paragraph (c)(3). We are also 
proposing to add a new paragraph (c)(3) to restate the exception that 
was omitted in the prior final rule with no edits to the language aside 
from correcting the citation from paragraph (b)(1) to reference 
paragraph (c)(1). Paragraph (c)(3) would state for a veteran who is 
placed in housing that will become permanent housing for that veteran 
upon termination of supportive housing services, the rate of payment 
shall be the lesser of 150 percent of the current VA State home program 
per diem rate for domiciliary care, as set by the Secretary under 38 
U.S.C. 1741(a)(1) or the daily cost of care estimated pursuant to 
paragraph (c)(1) of this section.
    As previously noted, the Act added a new item in section 
2012(a)(2)(B)(i)(II)(bb) that provided that the rate may be determined 
based on locality. VA is not exercising this authority at this time.
    In this rulemaking we also propose to add a new paragraph (d) to 
address the rate of payment for a veteran who has care of one or more 
minor dependents. The Act established that, for purposes of calculating 
the rate for per diem payments, in the case of a homeless veteran who 
has care of a minor dependent while receiving services from the grant 
recipient or eligible entity, the daily cost of care of the homeless 
veteran shall be the sum of the daily cost of care of the homeless 
veteran plus, for each such minor dependent, an amount that equals 50 
percent of such daily cost of care. See 38 U.S.C. 2012(a)(2)(A)(iii). 
For clarity and consistency with our current regulatory structure, VA 
believes it would be more appropriate to create a separate paragraph 
for the additional rate for veterans who have minor dependents when 
implementing this provision.
    The rate would be calculated by determining the rate of the 
individual veteran pursuant to paragraph (c) and then adding 50 percent 
of that rate for each minor dependent. Instead of specifically stating 
that we would add 50 percent of the rate for each minor dependent, we 
would cite to the statutory authority at 38 U.S.C. 2012(a)(2)(A)(iii). 
Referencing the statutory authority could allow for VA to quickly make 
any changes to the rate structure were Congress to make any future 
amendments to how the rate should be calculated. In addition, we would 
state that the additional rate would be made available on the GPD 
Program's website. Proposed paragraph (d) would also require that the 
veteran be receiving services from the grant recipient or eligible 
entity, consistent with the Act, and would require the minor dependent 
to occupy a bed on the same day for which a veteran-care rate is paid. 
This would be consistent with the language in section 
2012(a)(2)(A)(iii).

Technical Edits

    In addition to the substantive changes discussed above, VA also 
proposes a number of technical or grammatical amendments to part 61.

Notice of Funding Opportunity

    We propose to make technical edits throughout part 61 to replace 
the term Notice of Fund Availability or NOFA with Notice of Funding 
Opportunity. We would be making these edits to mirror the term as it is 
used in other sections of the CFR, specifically 2 CFR 200.204, which 
governs Notices of Funding Opportunity for discretionary grants and 
cooperative agreements. These edits would not change the meaning of the 
definition as stated in Sec.  61.1. For this reason, we propose to 
amend Sec. Sec.  61.1, 61.3, 61.11, 61.12, 61.14, 61.15, 61.18, 61.31, 
61.32, 61.41, 61.51, 61.52, 61.54, and 61.92.

Capitalization of the Term State

    Part 61 of 38 CFR does not consistently capitalize the term State 
as it applies to one of the 50 States, Commonwealths, or territories of 
the United States. As such, we propose to capitalize the term State by 
amending Sec. Sec.  61.1, the definitions of public entity and State, 
61.11(b)(6), 61.13(d)(10), (f), and (g), 61.15(a)(6) and (a)(7), 
61.31(b)(4), 61.51(b)(6), 61.53(c)(6), 61.61(e), 61.62(c), 61.80(a) and 
(b)(4), 61.92(d)(7), (f), and (g).

Section 61.1 Definitions

    We propose to remove the term area or community from the list of 
definitions in Sec.  61.1. VA defines the term area or community as a 
political subdivision or contiguous political subdivisions (such as a 
precinct, ward, borough, city, county, State, Congressional district, 
etc.) with a separately identifiable population of homeless veterans. 
We propose to remove the definition of area or community because VA no 
longer relies on the area or community as the term is currently 
defined. Instead, VA relies on the VA medical facility areas, which are 
stated in the NOFOs.
    We propose to remove the term fixed site from the list of 
definitions in Sec.  61.1. VA defines the term fixed site to mean a 
physical structure that under normal conditions is not capable of 
readily being moved from one location to another location. VA believes 
that this term can rely on the common dictionary definition of the term 
and does not see that any additional clarification is provided by this 
regulatory definition.
    We propose to make a technical correction to the definition of 
homeless in Sec.  61.1 by correcting the statutory citation at the end 
of the definition. In the current definition, we define homeless to 
have the meaning given that term in section 103 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11302(a)). To correct the citation, 
we propose to add subsections (b) and (d) after the citation to section 
11302(a) to now state 42 U.S.C. 11302(a), (b), and (d). This correction 
is made to include relevant clarifications from the law about the 
definition of homeless. No other edits to the meaning of this paragraph 
would be intended by this change.
    As previously stated in this rulemaking, we propose to amend the 
term Notice of Fund Availability to now state Notice of Funding 
Opportunity. In addition, we also propose to clarify that Notices of 
Funding Opportunities are published on the Office of Management and 
Budget (OMB)-designated website (as required by 2 CFR 200.204 and OMB's 
Management Procedures Memorandum No. 2021-01). We propose to make this 
edit because grant opportunities generally are no longer published in 
the Federal Register, but rather they are posted on the Grants.gov 
website. We would not specify the website address in case the website 
changes again in the future. No other edits to the meaning of this 
paragraph would be intended by this change.
    We propose to remove the definition of the term rehabilitation in 
the list of definitions in Sec.  61.1. VA defines the term 
rehabilitation to mean the improvement or repair of an existing 
structure but excludes minor or routine

[[Page 46912]]

repairs. This definition is no longer indicative of what rehabilitation 
means for GPD grants. The term rehabilitation can have a variety of 
meanings, which would depend on the scope of a particular funding 
opportunity. As such, we would omit the definition in the regulation 
and continue to define rehabilitation in the NOFO, as needed.
    We propose to remove the definition of the term total project cost 
from the list of definitions in Sec.  61.1. VA defines the term total 
project cost to mean the sum of all costs incurred by a recipient for 
the acquisition, rehabilitation, and new construction of a facility, or 
van(s), identified in a grant application. VA believes that this 
definition of the term is no longer broadly applicable to GPD projects 
because the types of projects have expanded beyond capital projects. 
Furthermore, Federal-wide cost principles for grants adequately define 
what constitutes total costs in 2 CFR 200.402. Therefore, additional 
clarification would not be provided by the current definition.

Section 61.12 Capital Grant Application Packages--Threshold 
Requirements

    Section 61.12 establishes the threshold requirements that must be 
met for the capital grants program. Paragraph (e) states that the 
application must demonstrate compliance with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 
U.S.C. 4601-4655). However, because the timeline between application 
and award is usually several months, the actual property that will be 
acquired is typically not determined until after the capital grant has 
been awarded. As a result, compliance with the URA would occur after VA 
awards a capital grant at the time the grantee demonstrates site 
control before receiving capital grant payments. Therefore, VA believes 
that this compliance requirement would be best placed under site 
control in Sec.  61.17. This proposed amendment would not change 
current practice. We, therefore, propose to remove paragraph (e) from 
Sec.  61.12 and redesignate current paragraphs (f) through (i) as new 
paragraphs (e) through (h), respectively. We would also add a new 
paragraph (b) to Sec.  61.17 to state the site must be in compliance 
with the Uniform Relocation Assistance and Real Property Acquisition 
Policies Act of 1970 (URA) (42 U.S.C. 4601-4655). No changes in the 
meaning of this paragraph would be made by this change. We would also 
redesignate current paragraphs Sec.  61.17(b) and (c) as new paragraphs 
(c) and (d), respectively.

Section 61.13 Capital Grant Application Packages--Rating Criteria

    Section 61.13 establishes the rating criteria for the capital 
grant. Paragraph (g) contains the rating criterion addressing 
coordination with other programs. Paragraph (g) states that VA will 
award up to 200 points based on the extent to which applicants 
demonstrate that they have coordinated with Federal, State, local, 
private and other entities serving homeless persons in the planning and 
operation of the project; it then lists examples of such entities. In 
addition, it states that applicants are required to demonstrate that 
they have coordinated with the VA medical care facility of jurisdiction 
and/or VA Regional Office of jurisdiction in their area. We propose to 
remove the reference to the VA Regional Office of jurisdiction in their 
area because the GPD program is coordinated by the Veterans Health 
Administration via the VA medical facilities and not VA Regional 
Offices. Therefore, we propose to state that applicants are required to 
demonstrate that they have coordinated with the VA medical facility of 
jurisdiction.
    Paragraph (g) also specifies that 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 above which is designed 
to share information on available resources and reduce duplication 
among programs that serve homeless veterans; (2) they have consulted 
directly with the closest VA Medical Center and other providers within 
the framework described above regarding coordination of services for 
project participants; and (3) they have coordinated with the closest VA 
Medical Center their plan to assure access to health care, case 
management, and other care services. We propose to remove these 
specific criteria because that information is not useful in reviewing, 
scoring, and selecting high-quality applications. We believe that the 
portion of paragraph (g) we propose to remain in the rule would 
continue to hold applicants accountable for coordinating with other 
programs but would provide the necessary flexibility for VA reviewers 
to score those applications based on the type and quality of 
coordination that will result in the best services for veterans even as 
changes to how communities are organized may arise. We also would make 
a minor grammatical edit for clarity by adding a comma after 
``private'' in the list of entities serving homeless persons.

Section 61.15 Capital Grants--Obtaining Additional Information and 
Awarding Capital Grants

    Section 61.15 establishes the procedures for obtaining additional 
information for the capital grants, as necessary, and for awarding such 
grants. Paragraph (a)(4) requires that the applicant submit 
documentation establishing compliance with the National Historic 
Preservation Act (NHPA) (16 U.S.C. 470). However, this citation is no 
longer correct as the provisions of the NHPA were moved by Public Law 
113-287 (December 19, 2014). The correct statutory citation is 54 
U.S.C. 300101 et seq. Part 106 of the NHPA (54 U.S.C. 306108) requires 
Federal agencies to take into account the effects of an undertaking on 
historic properties. Regulations implementing part 106 (36 CFR part 
800) provide how Federal agencies meet this statutory responsibility. 
We propose to amend paragraph (a)(4) with the current NHPA citation and 
to state that the applicant may be asked to submit documentation 
establishing compliance with 36 CFR part 800, the regulations 
implementing section 106 of the NHPA (54 U.S.C. 306108). No other 
change to the meaning of this paragraph would be intended by this 
change.
    Paragraph (a)(5) requires the applicant to submit information 
necessary for VA to ensure compliance both with Uniform Federal 
Accessibility Standards (UFAS) and the Americans with Disabilities Act 
(ADA) Accessibility Guidelines. In 1968, VA was a major advocate for 
The Architectural Barriers Act, Public Law 90-480, which ensured that 
buildings financed with Federal funds were so designed and constructed 
as to be accessible to everyone. This law required all construction, 
renovation, or leasing with Federal funds meet Uniform Federal 
Accessibility Standards (UFAS). These standards brought all Federal 
agencies under a common accessibility guideline for the first time. The 
Americans with Disabilities Act (ADA) of 1990 set accessibility 
requirements for State and local government, as well as private sector 
projects, similar to the requirements set for Federal projects through 
the Architectural Barriers Act. Today, VA follows U.S. General Services 
Administration and other standard-setting agencies in replacing UFAS 
with the Architectural Barriers Act Accessibility Standard (ABAAS) for

[[Page 46913]]

Federal facilities. As such, we propose to amend paragraph (a)(5) to 
now state that the applicant must ensure compliance both with 
Architectural Barriers Act Accessibility Standards and the Americans 
with Disabilities Act Accessibility Guidelines. This is not a 
substantive change for applicants, and no other change to the meaning 
of this paragraph would be intended by this change.
    Paragraph (a)(8) requires the applicant, as necessary, to ensure 
compliance with the provisions of the National Environmental Policy Act 
(NEPA) (42 U.S.C. 4321 et seq.) and its implementing regulations (40 
CFR parts 1500-1508). As required by NEPA, VA established agency-
specific procedures to implement the requirements of NEPA at 38 CFR 
part 26. We propose to amend paragraph (a)(8) to also reference VA's 
implementing regulations and to direct the reader to the NEPA 
requirements specific to VA. Therefore, we propose to amend paragraph 
(a)(8) to state that the applicant, as necessary, must submit 
information necessary for VA to ensure compliance with the NEPA, the 
generally applicable regulations implementing NEPA (40 CFR parts 1500-
1508), and VA's agency-specific regulations implementing NEPA (38 CFR 
part 26). No other change to the meaning of this paragraph would be 
intended by this change.

Section 61.80 General Operation Requirements for Supportive Housing and 
Service Centers

    We propose to revise paragraph (a) of Sec.  61.80 to be consistent 
with 38 U.S.C. 2011(b)(5)(B). Paragraph (a) of Sec.  61.80 does not 
contain the statutory phrase ``or such other comparable fire and safety 
requirements as the Secretary may specify'' and only references the 
Life Safety Code of the National Fire Protection Association. Including 
the statutory language in the regulation would more closely follow the 
language of the statute and would continue to ensure the safety of 
veterans who reside in supportive housing or who receive support from 
service centers. No other edits to the meaning of this paragraph would 
be intended by this change.

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

    Section 61.92 establishes the application and rating criteria for 
grants for case management services. We propose to make a technical 
edit to Sec.  61.92(b) to correct a typographical error. Paragraph (b) 
states that 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. This 
paragraph should have referenced paragraphs (c) through (g) of this 
section, not paragraphs (c) through (f), and we propose to make this 
edit. As previously stated, we would also revise the term Notice of 
Fund Availability (NOFA) to now state Notice of Funding Opportunity, 
where it appears in this section. No other edits to the meaning of this 
section would be intended by this change.
    As stated, paragraphs (c) through (g) list the rating criteria for 
applicants. Paragraph (g) provides the criteria addressing coordination 
with other programs and states 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 or persons at risk for homelessness in the planning 
and operation of the case management services project; it then lists 
examples of such entities. In addition, it states that applicants are 
required to demonstrate that they have coordinated with the VA medical 
care facility of jurisdiction or VA Regional Office of jurisdiction in 
their area. We propose to remove the reference to the VA Regional 
Office of jurisdiction in their area because the GPD program is 
coordinated by the Veterans Health Administration via the VA medical 
facilities and not VA Reginal Offices. Therefore, we propose to state 
that applicants are required to demonstrate that they have coordinated 
with the VA medical facility of jurisdiction.
    Paragraph (g) further specifies that 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. We propose to remove these specific criteria 
because, as previously stated in this rulemaking, this information is 
not useful in reviewing, scoring, and selecting high-quality 
applications. We believe that the portion of paragraph (g) we propose 
to retain in the rule would continue to hold applicants accountable for 
coordinating with other programs but would provide the necessary 
flexibility for VA reviewers to score those applications based on the 
type and quality of coordination that will result in the best services 
for veterans even as changes to how communities are organized may 
arise.
    We also make other minor grammatical edits for clarity, such as in 
section 61.32, removing a comma and adding the word ``the''.
    In addition, Sec.  61.92 currently contains an incomplete Office of 
Management and Budget (OMB) information collection control number. The 
information collection in this regulation has been approved by OMB and 
has been assigned OMB control number 2900-0554. We propose to update 
Sec.  61.92 to correctly reflect OMB's control number.

Executive Orders 12866 and 13563

    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. 
The Office of Information and Regulatory Affairs has determined that 
this proposed rule is not a significant regulatory action under 
Executive Order 12866. The Regulatory Impact Analysis associated with 
this rulemaking can be found as a supporting document at 
www.regulations.gov.

Regulatory Flexibility Act

    The Secretary hereby certifies that this proposed rule would 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). The provisions associated with this rulemaking do not 
involve costs to small entities because the GPD Program provides 
Federal awards (e.g., grant money) to small entities. Although the 
small entities must apply for Federal

[[Page 46914]]

awards, there are no out-of-pocket expenses (e.g., no filing fees) 
created by this rulemaking. Therefore, pursuant to 5 U.S.C. 605(b), the 
initial and final regulatory flexibility analysis requirements of 5 
U.S.C. 603 and 604 do not apply.

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

Paperwork Reduction Act

    This proposed rule would amend 38 CFR 61.11, 61.12, 61.15, 61.31, 
61.41, 61.51, 61.80, and 61.92, which contain provisions constituting 
collections of information under the provisions of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501-3521). However, no new or 
proposed revised collections of information are associated with this 
proposed rule. The information collection requirements for Sec. Sec.  
61.11, 61.12, 61.15, 61.31, 61.41, 61.51, 61.80, and 61.92 are 
currently approved by the Office of Management and Budget (OMB) and 
have been assigned OMB control number 2900-0554. However, in earlier 
rulemakings, VA did not update Sec.  61.92 to correctly reflect OMB 
control number 2900-0554. As noted above, we propose to correct this 
omission through this rulemaking by updating the reference in Sec.  
61.92 to OMB control number 2900-0554.

Assistance Listing

    The Assistance Listing number and title for the program affected by 
this document is 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

    Denis McDonough, Secretary of Veterans Affairs, approved this 
document on July 13, 2022, 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.

Consuela Benjamin,
Regulations Development Coordinator, Office of Regulation Policy & 
Management, Office of General Counsel, Department of Veterans Affairs.

    For the reasons stated in the preamble, the Department of Veterans 
Affairs proposes to amend 38 CFR part 61 as set forth below:

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, 
and 2064.

0
2. Amend Sec.  61.1 by:
0
a. Removing the definitions of Area or community and Fixed site.
0
b. Revising the definition of Homeless.
0
c. Adding a definition for Minor dependent in alphabetical order.
0
d. Removing the definition of Notice of Fund Availability (NOFA) and 
adding a definition for Notice of Funding Opportunity in alphabetical 
order.
0
e. In paragraph (1) of the definition of Public entity, removing the 
term ``state law'' and adding in its place ``State law''.
0
f. Removing the definition of Rehabilitation.
0
g. In the definition of State, removing the terms ``state'' and 
``states'' and adding in their place the terms ``State'' and ``States'' 
wherever they appear.
0
h. Removing the definition of Total project cost.
    The revisions and additions read as follow:


Sec.  61.1   Definitions.

* * * * *
    Homeless has the meaning given that term in section 103 of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a), (b), and 
(d)).
    Minor dependent means someone who is unmarried, is not an 
emancipated minor, is identified by the veteran as a family member when 
presenting for GPD services, and:
    (1) Is under age 23; or
    (2) Is age 23 or over and became permanently incapable of self-
support before the age of 23.
* * * * *
    Notice of Funding Opportunity means a notice published on the 
Office of Management and Budget-designated government-wide website 
announcing the availability of Federal funding in accordance with Sec.  
61.3.
* * * * *
0
3. Amend Sec.  61.3 by revising the section heading and introductory 
text to read as follows:


Sec.  61.3   Notice of Funding Opportunity.

    When funds are made available for a grant or per diem award under 
this part, VA will publish a Notice of Funding Opportunity in the 
Office of Management and Budget-designated government-wide website and 
the program's website. The notice will:
* * * * *


Sec.  61.11   [Amended]

0
4. Amend Sec.  61.11 by:
0
a. In paragraph (a), removing the term ``Notice of Fund Availability'' 
and adding in its place the term ``Notice of Funding Opportunity''.
0
b. In paragraph (b)(6), removing the term ``state'' and adding in its 
place the term ``State'' wherever it appears.


Sec.  61.12   [Amended]

0
5. Amend Sec.  61.12 by:
0
a. In paragraphs (a)(2) and (4), removing the term ``Notice of Fund 
Availability'' and adding in its place the term ``Notice of Funding 
Opportunity''.
0
b. Removing paragraph (e) and redesignating paragraphs (f) through (i) 
as paragraphs (e) through (h), respectively.
0
6. Amend Sec.  61.13 by:
0
a. In paragraphs (d)(10) and (f), removing the term ``state'' and 
adding in its place the term ``State''.
0
b. Revising paragraph (g).
    The revision reads as follows.


Sec.  61.13   Capital grant application packages--rating criteria.

* * * * *
    (g) Coordination with other programs. VA will award up to 200 
points based on the extent to which applicants demonstrate that they 
have coordinated with Federal, State, local, private, and other 
entities serving homeless persons in the planning and operation of the 
project. Such entities may include shelter transitional housing, 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 homeless veterans in 
the local community. Applicants are required to demonstrate that they 
have coordinated with the VA medical facility of jurisdiction.
* * * * *

[[Page 46915]]

Sec.  61.14   [Amended]

0
7. Amend Sec.  61.14 by, in paragraph (a), removing the term ``NOFA'' 
and adding in its place the term ``Notice of Funding Opportunity''.


Sec.  61.15   [Amended]

0
8. Amend Sec.  61.15 by:
0
a. In paragraph (a)(4), removing ``the National Historic Preservation 
Act (16 U.S.C. 470)'' and adding in its place ``36 CFR part 800, the 
regulations implementing section 106 of the National Historic 
Preservation Act (54 U.S.C. 306108)''.
0
b. In paragraph (a)(5), removing ``Uniform Federal Accessibility 
Standards (UFAS)'' and adding in its place ``Architectural Barriers Act 
Accessibility Standards (ABAAS)''.
0
c. In paragraphs (a)(6) and (7), removing the term ``state'' and adding 
in its place the term ``State''.
0
d. In paragraph (a)(8), removing ``provisions of the National 
Environmental Policy Act (42 U.S.C. 4321 et seq.)'' and adding in its 
place ``the National Environmental Policy Act (NEPA) (42 U.S.C. 4321 et 
seq.), the generally applicable regulations implementing the NEPA (40 
CFR parts 1500 through 1508), and VA's regulations implementing the 
NEPA (38 CFR part 26)''.
0
e. In paragraph (b), removing the term ``Notice of Fund Availability'' 
and adding in its place the term ``Notice of Funding Opportunity''.
0
9. Amend Sec.  61.17 by redesignating paragraphs (b) and (c) as 
paragraphs (c) and (d) and adding a new paragraph (b) to read as 
follows.


Sec.  61.17   Site control for capital grants.

* * * * *
    (b) The site must be in compliance with the Uniform Relocation 
Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 
U.S.C. 4601-4655).
* * * * *


Sec.  61.18   [Amended]

0
10. Amend Sec.  61.18, in paragraph (a), by removing the term ``NOFA'' 
and adding in its place the term ``Notice of Funding Opportunity''.


Sec.  61.31   [Amended]

0
11. Amend Sec.  61.31 by:
0
a. In paragraph (b), removing the term ``Notice of Fund Availability'' 
and adding in its place the term ``Notice of Funding Opportunity''.
0
b. In paragraph (b)(4), removing the term ``state'' and add in its 
place the term ``State'' wherever it appears.
0
12. Amend Sec.  61.32 by revising paragraph (a) to read as follows.


Sec.  61.32   Per diem application packages--rating criteria.

    (a) Conditional selection. Application packages for per diem only 
(i.e., from non-capital grant applicants) in response to a Notice of 
Funding Opportunity will be reviewed and grouped in categories 
according to the funding priorities set forth in the Notice of Funding 
Opportunity, if any. Such applications will then be ranked within their 
respective funding category according to scores achieved only if the 
applicant scores at least 750 cumulative points out of a possible 1000 
from each of the following paragraphs: (b), (c), (d), (e), (f), and (g) 
of Sec.  61.13. The highest-ranked applications for which funding is 
available, within the highest funding priority category if applicable, 
will be conditionally selected for eligibility to receive per diem 
payments or special need payment in accordance with their ranked order. 
If funding priorities have been established and funds are still 
available after selection of those applicants in the highest priority 
group, VA will continue to conditionally select applicants in lower 
priority categories in accordance with the selection method set forth 
in this paragraph subject to available funding. Conditional selectees 
will be subsequently awarded per diem if they otherwise meet the 
requirements of this part, including passing the inspection required by 
Sec.  61.80.
* * * * *
0
13. Amend Sec.  61.33 by:
0
a. Revising paragraphs (c) introductory text and (c)(2).
0
b. Adding paragraph (c)(3).
0
c. Redesignating paragraphs (d) through (h) as paragraphs (e) through 
(i) and adding a new paragraph (d).
    The revisions and additions read as follows:


Sec.  61.33   Payment of per diem.

* * * * *
    (c) Rate of payments for individual veterans. Except as provided in 
paragraph (c)(3) of this section, the rate of per diem for each veteran 
in supportive housing shall be the lesser of:
* * * * *
    (2) The maximum allowable rate as adjusted by the Secretary under 
38 U.S.C. 2012(a)(2)(B)(i)(II)(aa) and made available on the program's 
website.
    (3) For a veteran who is placed in housing that will become 
permanent housing for that veteran upon termination of supportive 
housing services, the rate of payment shall be the lesser of 150 
percent of the current VA state home program per diem rate for 
domiciliary care, as set by the Secretary under 38 U.S.C. 1741(a)(1), 
or the daily cost of care estimated pursuant to paragraph (c)(1) of 
this section.
    (d) Rate of payment for a veteran who has care of a minor 
dependent. The per diem rate for a veteran who has care of a minor 
dependent while such veteran is receiving services from a grant 
recipient or eligible entity will be the sum of the rate in paragraph 
(c) of this section and an additional amount for each minor dependent 
as determined pursuant to 38 U.S.C. 2012(a)(2)(A)(iii) and made 
available on the program's website. Such additional amount will only be 
added when the minor dependent is occupying a bed on the same day that 
a veteran-care rate is charged to the grant.
* * * * *


Sec.  61.41   [Amended]

0
14. Amend Sec.  61.41, in paragraph (a), by removing the term ``Notice 
of Fund Availability'' and adding in its place the term ``Notice of 
Funding Opportunity''.


Sec.  61.51   [Amended]

0
15. Amend Sec.  61.51 by:
0
a. In paragraph (a), removing the term ``Notice of Fund Availability'' 
and adding in its place the term ``Notice of Funding Opportunity''.
0
b. In paragraph (b)(6), removing the term ``state'' and adding in its 
place the term ``State'' wherever it appears.


Sec.  61.52   [Amended]

0
16. Amend Sec.  61.52, in paragraph (a), by removing the term ``Notice 
of Fund Availability'' and adding in its place the term ``Notice of 
Funding Opportunity''.


Sec.  61.53   [Amended]

0
17. Amend Sec.  61.53 by, in paragraph (c)(6), removing the term 
``state'' and adding in its place the term ``State''.


Sec.  61.54   [Amended]

0
18. Amend Sec.  61.54 by:
0
a. In paragraph (a), removing the term ``NOFA'' and adding in its place 
the term ``Notice of Funding Opportunity''.
0
b. In paragraph (d), removing the term ``Notice of Fund Availability'' 
and adding in its place the term ``Notice of Funding Opportunity''.


Sec.  61.61   [Amended]

0
19. Amend Sec.  61.61, in paragraph (e), by removing the term ``state'' 
and adding in its place the term ``State''.


Sec.  61.62   [Amended]

0
20. Amend Sec.  61.62 by, in paragraph (c), removing the term ``state'' 
and adding in its place the term ``State''.
0
21. Amend Sec.  61.80 by:
0
a. Revising paragraph (a).

[[Page 46916]]

0
b. In paragraph (b)(4), removing the term ``state'' and adding in its 
place the term ``State''.
    The revision reads as follows.


Sec.  61.80   General operation requirements for supportive housing and 
service centers.

    (a) Supportive housing and service centers for which assistance is 
provided under this part must comply with the requirements of the 
current edition of the Life Safety Code of the National Fire Protection 
Association or such other comparable fire and safety requirements as 
the Secretary may specify and all applicable State and local housing 
codes, licensing requirements, fire and safety requirements, and any 
other requirements in the jurisdiction in which the project is located 
regarding the condition of the structure and the operation of the 
supportive housing or service centers. Note: All facilities are to be 
protected throughout by an approved automatic sprinkler system unless a 
facility is specifically exempted under the Life Safety Code or under 
other comparable fire and safety requirements as the Secretary may 
specify.
* * * * *
0
22. Amend Sec.  61.92 by:
0
a. In paragraph (a) introductory text, removing the phrase ``Notice of 
Fund Availability (NOFA) in the Federal Register'' and adding in its 
place ``Notice of Funding Opportunity on the Office of Management and 
Budget-designated government-wide website''.
0
b. In paragraphs (a)(1) and (3), removing the term ``NOFA'' wherever it 
appears and adding in its place ``Notice of Funding Opportunity''.
0
c. In paragraph (b), removing the phrase ``paragraphs (c) through (f)'' 
and adding in its place ``paragraphs (c) through (g)''.
0
d. In paragraphs (d)(7) and (f), removing the term ``state'' and adding 
in its place the term ``State'' wherever it appears.
0
e. Revising paragraph (g).
0
f. Revising the parenthetical at the end of the section.
    The revisions read as follows:


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

* * * * *
    (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 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.

(Approved by the Office of Management and Budget under control 
number 2900-0554.)

[FR Doc. 2022-16370 Filed 7-29-22; 8:45 am]
BILLING CODE 8320-01-P