VA Homeless Providers Grant and Per Diem Program Clarification of Per Diem Eligibility

DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 17

RIN 2900-AH89

VA Homeless Providers Grant and Per Diem Program Clarification of

Per Diem Eligibility

AGENCY: Department of Veterans Affairs.

ACTION: Final rule.

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SUMMARY: This document amends the regulations implementing the VA

Homeless Providers Grant and Per Diem Program concerning per diem

assistance by: Establishing more detailed criteria for determining

which entities are eligible for obtaining per diem assistance;

establishing a priority for funding eligible entities: Clarifying the

requirements for continued receipt of per diem payments; and clarifying

the maximum amount payable for per diem assistance. This rule is

designed to ensure that the appropriate entities receive the

appropriate amount of per diem assistance under fair and objective

procedures.

EFFECTIVE DATES: March 13, 1997.

FOR FURTHER INFORMATION CONTACT: Roger Casey, VA Homeless Providers

Grant and Per Diem Program, Mental Health Strategic Health Group

(116E), Department of Veterans Affairs, 810 Vermont Avenue, NW,

Washington, DC 20420; (202) 273-8442. (This is not a toll-free number.)

SUPPLEMENTARY INFORMATION: In the Federal Register of July 16, 1996 (61

FR 37024), VA published a proposal to amend the regulations

implementing the VA Homeless Providers Grant and Per Diem Program.

Interested persons were invited to submit written comments on or before

September 16, 1996. No comments were received. The information

presented in the proposed rule document still provides a basis for this

final rule. Therefore, based on the rationale set forth in the proposed

rule document, we are adopting the provisions of the proposed rule as a

final rule with changes discussed below and with nonsubstantive

changes.

Paperwork Reduction Act

Information collection and recordkeeping requirements associated

with this final rule concerning VA Homeless Providers Grants (38 CFR

17.710-17.714) have been approved by OMB under the provisions of the

Paperwork Reduction Act (44 U.S.C. 3501-3520) and have been assigned

OMB Control Number 2900-0554. The regulations require that the

application for VA Homeless Providers Grants be submitted on VA forms

included in the application package. The corresponding form numbers are

included in the text of the rule.

Information collection and recordkeeping requirements associated

with this final rule concerning the VA Homeless Providers Per Diem have

not been approved by OMB under the provisions of the Paperwork

Reduction Act. OMB has withheld approval pending review of any comments

received. VA intends to obtain OMB control numbers for the information

collection requirements concerning VA Homeless Providers Per Diem. Once

OMB approval is received, OMB control numbers will be announced by a

separate Federal Register document.

VA is not authorized to impose a penalty on persons for failure to

comply with information collection requirements which do not display a

current OMB control number, if required.

Regulatory Flexibility Act

The Secretary hereby certifies that the provisions of the final

rule will not have a significant economic impact on a substantial

number of small entities as they are defined in the Regulatory

Flexibility Act (RFA), 5 U.S.C. 601-602. In all likelihood, only

similar entities that are small entities will participate in the

Homeless Providers Grant and Per Diem Program, therefore, pursuant to 5

U.S.C. 605(b), this final rule is exempt from the initial and final

regulatory flexibility analysis requirement of sections 603 and 604.

The Catalog of Federal Domestic Assistance program number is

64.024.

List of Subjects in 38 CFR Part 17

Administrative practice and procedure, Alcohol abuse, Alcoholism,

Claims, Day care, Dental health, Drug abuse, Foreign relations,

Government contracts, Grant programs-health, Grant programs-veterans,

Health care, Health facilities, Health professions, Health records,

Homeless, Medical and dental schools, Medical devices, Medical

research, Mental health programs, Nursing homes, Philippines, Reporting

and record-keeping requirements, Scholarships and fellowships, Travel

and transportation expenses, Veterans.

Approved: January 31, 1997.

Jesse Brown,

Secretary of Veterans Affairs.

For the reasons set forth in the preamble, 38 CFR part 17 is

amended as set forth below:

PART 17--MEDICAL

1. The authority citation for part 17 continues to read as follows:

Authority: 38 U.S.C. 501, 1721, unless otherwise noted.

Sec. 17.700 [Amended]

2. In Sec. 17.700, paragraph (a) is amended by removing

``17.715(a)'' and adding, in its place, ``17.716''.

3. Sections 17.710 through 17.719 are revised to read as follows:

Sec. 17.710 Application requirements.

(a) General. Applications for grants must be submitted in the form

prescribed by VA in the application package, must meet the requirements

of this part, and must be submitted within the time period established

by VA in the notice of fund availability under

[[Page 6122]]

Sec. 17.708 of this part. The application packet includes exhibits to

be prepared and submitted as part of the application process,

including:

(1) Justification for the project by addressing items listed in

Sec. 17.711(c) of this part;

(2) Site description, design, and cost estimates (VA Forms 10-

0362G, 10-0362H);

(3) Documentation on eligibility to receive assistance under this

part (VA Form 10-0362J);

(4) Documentation on matching funds committed to the projects (VA

Forms 10-0362N, 10-0362M);

(5) Documentation on operating budget and cost sharing (VA Form 10-

0362P);

(6) Documentation on supportive services committed to the project

(VA Form 10-0362o);

(7) Documentation on site control and appropriate zoning, and on

the boundaries of the area or community proposed to be served (VA Form

10-0362Q);

(8) Applicants who are States must submit any comments or

recommendations by appropriate State (and areawide) clearinghouses

pursuant to E.O. 12372 (3 CFR, 1982 Comp., p. 197) (Standard Form SF

424); and

(9) Reasonable assurances with respect to receipt of assistance

under this part that (VA Form 10-0362K):

(i) The project will be used principally to furnish to veterans the

level of care for which such application is made; that not more than 25

percent of participants at any one time will be nonveterans; and that

such services will meet standards prescribed by VA;

(ii) Title to such site or van will vest solely in the applicant;

(iii) Each recipient will keep those records and submit those

reports as VA may reasonably require, within the time frames required;

and give VA, upon demand, access to the records upon which such

information is based; and

(iv) Adequate financial support will be available for the purchase

of the van or completion of the project, and for its maintenance,

repair and operation.

(b) Pre-award expenditures. Costs incurred for a project after the

date VA notifies an applicant that the project is feasible for VA

participation are allowable costs if the application is approved and

the grant is awarded. These pre-award expenditures include

architectural and engineering fees. Such notification occurs when VA

requests information for the second submission portion of the

application.

(Paperwork requirements were approved by the Office of Management

and Budget under control number 2900-0554.)

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.711 Rating criteria for applications.

(a) General. Applications will be assigned a rating score and

placed in ranked order, based upon the criteria listed in paragraphs

(b) through (d) of this section.

(b) Threshold review. Applicants will undergo a threshold review

prior to rating and ranking, to ensure they meet the following:

(1) Forms, time, and adequacy. Applications must be filed in the

form prescribed by VA in the application process and within the time

established in the Notice of Funding Availability (NOFA).

(2) Application eligibility. The applicant and project sponsor, if

relevant, must be eligible to apply for the specific program.

(3) Eligible population to be served. The population proposed to be

served must be homeless veterans and meet other eligibility

requirements of the specific program.

(4) Eligible activities. The activities for which assistance is

requested must be eligible for funding under this part (e.g., new

programs or new components of existing programs).

(5) Outstanding audit findings. No organization that receives

assistance may have an outstanding obligation to VA that is in arrears

or for which a payment schedule has not been agreed to, or whose

response to an audit is overdue or unsatisfactory.

(c) Rating and ranking of first submission. Applicants that pass

the threshold review will then be rated using the eight selection

criteria listed in paragraphs (c)(1) through (c)(8) of this section.

Applicants must receive at least 600 points (out of a possible 1,200)

and must receive points under criteria 1, 2, 3, 4, and 8. Applicants

that are applying as an innovative supportive housing project must

achieve points under the innovative quality of the proposal criterion.

(1) Quality of the project--300 points (VA Forms 10-0362A, 10-

0362D);.

(2) Targeting to persons on streets and in shelters--150 points (VA

Form 10-0362C);

(3) Ability of the applicants to develop and operate a project--200

points (VA Form 10-0362E);

(4) Need for the type of project proposed in the area to be

served--150 points (VA Form 10-0362B);

(5) Innovative quality of the proposal--50 points (VA Forms 10-

0362A, 10-0362D);

(6) Leveraging--50 points (VA Form 10-0362F);

(7) Cost-effectiveness--100 points (VA Form 10-0362A); and

(8) Coordination with other programs--200 points (VA Form 10-0362D-

1).

(d) Selection criteria--(1) Quality of the project. VA will award

up to 300 points based on the extent to which the application presents

a clear, well-conceived and thorough plan for assisting homeless

veterans to achieve residential stability, increased skills and/or

income, and more influence over decisions that affect their lives.

Higher ratings will be assigned to those applications that clearly

describe:

(i) How program participants will achieve residential stability,

including how available supportive services will help participants

reach this goal;

(ii) How program participants will increase their skill level and/

or income, including how available supportive services will help

participants reach this goal;

(iii) How program participants will be involved in making project

decisions that affect their lives, including how they will be involved

in selecting supportive services, establishing individuals goals and

developing plans to achieve these goals so that they achieve greater

self-determination;

(iv) How permanent affordable housing will be identified and made

available to participants upon leaving the transitional housing, and

how participants will be provided necessary follow-up services to help

them achieve stability in the permanent housing;

(v) How the service needs of participants will be assessed on an

ongoing basis;

(vi) How the proposed housing, if any, will be managed and

operated;

(vii) How participants will be assisted in assimilating into the

community through access to neighborhood facilities, activities and

services;

(viii) How and when the progress of participants toward meeting

their individual goals will be monitored and evaluated;

(ix) How and when the effectiveness of the overall project in

achieving its goals will be evaluated and how program modifications

will be made based on those evaluations; and

(x) How the proposed project will be implemented in a timely

fashion.

(2) Targeting to persons on streets and in shelters. VA will award

up to 150 points based on:

(i) The extent to which the project will serve homeless veterans

living in places not ordinarily meant for human habitation (e.g.,

streets, parks, abandoned buildings, automobiles, under bridges, in

transportation

[[Page 6123]]

facilities) and those who reside in emergency shelters; and

(ii) The likelihood that proposed plans for outreach and selection

of participants will result in these populations being served.

(3) Ability of applicant to develop and operate a project. VA will

award up to 200 points based on the extent to which those who will be

involved in carrying out the project have experience in activities

similar to those proposed in the application. Ratings will be assigned

based on the extent to which the application demonstrates experience in

the following areas:

(i) Engaging the participation of homeless veterans living in

places not ordinarily meant for human habitation and in emergency

shelters;

(ii) Assessing the housing and relevant supportive service needs of

homeless veterans;

(iii) Accessing housing and relevant supportive service resources;

(iv) If applicable, contracting for and/or overseeing the

rehabilitation or construction of housing;

(v) If applicable, administering a rental assistance program;

(vi) Providing supportive services for homeless veterans;

(vii) Monitoring and evaluating the progress of persons toward

meeting their individual goals; and

(viii) Evaluating the overall effectiveness of a program and using

evaluation results to make program improvements.

(4) Need. VA will award up to 150 points based on the applicant's

demonstrated understanding of the needs of the specific homeless

veteran population proposed to be served in the specified area or

community. Ratings will be made based on the extent to which applicants

demonstrate:

(i) Substantial unmet needs, particularly among the target

population living in places not ordinarily meant for human habitation

(e.g., streets) and in emergency shelters, based on reliable data from

surveys of homeless populations, a Comprehensive Housing Affordability

Strategy (CHAS), or other reports or data gathering mechanisms that

directly support claims made;

(ii) An understanding of the homeless population to be served and

its unmet housing and supportive service needs.

(5) Innovative quality of the proposal. Applicants who have

indicated in their application that they are applying under the

innovative supportive housing component must receive points under this

criteria to be eligible for award. VA will award up to 50 points based

on the innovative quality of the proposal, when compared to other

applications and projects; in terms of:

(i) Helping homeless veterans or homeless veterans with

disabilities to be served to reach residential stability, increase

their skill level and/or income and increase the influence they have

over decisions that affect their lives; and

(ii) A clear link between the innovation(s) and its proposed

effect(s); and

(iii) Its ability to be used as a model for other projects.

(6) Leveraging. VA will award up to 50 points based on the extent

to which resources from other public and private sources, including

cash and the value of third party contributions, have been committed to

support the project at the time of application. Note: Any applicant who

wishes to receive points under this criterion must submit documentation

of leveraged resources which meets the requirements stated in the

application. This is optional; applicants who cannot, or choose not to,

provide firm documentation of resources as part of the application will

forego any points for leveraging.

(7) Cost-effectiveness. VA will award up to 100 points for cost-

effectiveness. Projects will be rated based on the cost and number of

new supportive housing beds made available or the cost, amount and

types of supportive services made available, when compared to other

transitional housing and supportive services projects, and when

adjusted for high-cost areas. Cost-effectiveness may include using

excess government properties (local, State, Federal), as well as

demonstrating site control at the time of application.

(8) 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 programs

relevant to the local community. Applicants are required to demonstrate

that they have coordinated with the VA medical care facility of

jurisdiction and VA Regional Offices of jurisdiction in their area.

Higher points will be given to those applicants who can demonstrate

that:

(i) They are part of an ongoing community-wide planning process

which is designed to share information on available resources and

reduce duplication among programs that serve homeless veterans;

(ii) They have consulted directly with other providers regarding

coordination of services for project participants. VA will award up to

50 points of the 200 points for this criterion based on the extent to

which commitments to provide supportive services are available at the

time of application. Applicants who wish to receive points under this

optional criterion must submit documentation of supportive service

resources.

(Paperwork requirements were approved by the Office of Management

and Budget under control number 2900-0554.)

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.712 Selecting applications.

(a) General. The highest-ranked applications will be conditionally

selected in accordance with their ranked order, as determined under

Sec. 17.711 of this part. Each will be requested, as necessary, to

provide additional project information, as described in Sec. 17.713 of

this part as a prerequisite to a grant from VA.

(b) Ties between applicants. In the event of a tie between

applicants, VA will use the selecting criterion in Sec. 17.711(d)(4) of

this part, need for the type of project proposed in the area to be

served, to determine which application should be selected for potential

funding.

(c) Procedural error. If an application would have been selected

but for a procedural error committed by VA, VA will select that

application for potential funding when sufficient funds become

available if there is no material change in the information that

resulted in its selection. A new application will not be required for

this purpose.

(Paperwork requirements were approved by the Office of Management

and Budget under control number 2900-0554.)

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.713 Obtaining additional information and awarding grants.

(a) Additional information. Applicants who have been conditionally

selected will be requested by VA to submit additional project

information, as described in the second submission of the application,

which may include:

(1) Documentation to show that the project is feasible.

(2) Documentation showing the sources of funding for the project

and firm financing commitments for the matching requirements described

in Sec. 17.706 of this part.

(3) Documentation showing site control, as described in Sec. 17.731

of this part.

(4) Information necessary for VA to ensure compliance with the

provisions

[[Page 6124]]

of the National Environmental Policy Act of 1969 (42 U.S.C. 4321, et

seq.), as described in Sec. 17.714 of this part.

(5) A site survey performed by a licensed land surveyor. A

description of the site shall be submitted noting the general

characteristics of the site. This should include soil reports and

specifications, easements, main roadway approaches, surrounding land

uses, availability of electricity, water and sewer lines, and

orientation. The description should also include a map locating the

existing and/or new buildings, major roads, and public services in the

geographic area. Additional site plans should show all site work

including property lines, existing and new topography, building

locations, utility data, and proposed grades, roads, parking areas,

walks, landscaping, and site amenities.

(6) Design development (35 percent) drawings.

(i) The applicant shall provide to VA one set of sepias and two

sets of prints, rolled individually per set, to expedite the review

process. The drawing shall indicate the designation of all spaces, size

of the areas and rooms, and indicate in outline the fixed and moveable

equipment and furniture. The drawings shall be drawn at \1/8\'' or \1/

4\'' scale. Bedroom and toilet layouts, showing clearances and Uniform

Federal Accessibility Standards requirements, should be shown at \1/

4\'' scale. The total floor and room areas shall be shown in the

drawings. The drawings shall include:

(A) A plan of any proposed demolition work;

(B) A plan of each floor. For renovation, the existing conditions

and extent of new work should be clearly delineated;

(C) Elevations;

(D) Sections and typical details;

(E) Roof plan;

(F) Fire protection plans; and

(G) Technical engineering plans, including structural, mechanical,

plumbing, and electrical drawings.

(ii) If the project involves acquisition, remodeling, or

renovation, the applicant should include the current as-built site

plan, floor plans and building sections which show the present status

of the building and a description of the building's current use and

type of construction.

(7) Design development outline specifications. The applicant shall

provide eight copies of outline specifications which shall include a

general description of the project, site, architectural, structural,

electrical and mechanical systems such as elevators, air conditioning,

heating, plumbing, lighting, power, and interior finishes (floor

coverings, acoustical material, and wall and ceiling finishes).

(8) Design development cost estimates. The applicant shall provide

three copies of cost estimates showing the estimated cost of the

buildings or structures to be acquired or constructed in the project.

Cost estimates should list the cost of construction, contract

contingency, fixed equipment not included in the contract, movable

equipment, architect's fees and construction supervision and

inspection.

(9) A design development conference. After VA reviews design

development documents, a design development conference may be

recommended in order to provide applicants and their architects an

opportunity to learn VA procedures and requirements for the project and

to discuss VA review comments.

(10) Such other documentation as specified by VA in writing to the

applicant that confirms or clarifies information provided in the

application.

(b) Receipt of additional information. The required additional

information must be received in acceptable form within the time frame

established by VA in a notice of fund availability published in the

Federal Register. VA reserves the right to remove any proposed project

from further consideration for grant assistance if the required

additional project information is not received in acceptable form by

the established deadline.

(c) Grant award. Following receipt of the additional information in

acceptable form (and, where applicable, provided that the environmental

review described in Sec. 17.714 of this part indicates that the

proposed project is environmentally acceptable to VA), to the extent

funds are available VA will approve the application and send a grant

agreement for execution to the applicant.

(Paperwork requirements were approved by the Office of Management

and Budget under control number 2900-0554.)

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.714 Environmental review requirements.

(a) General. Project selection is subject to completion of an

environmental review of the proposed site, and the project may be

modified or the site rejected as a result of that review. The

environmental effects must be assessed in accordance with the

requirements of the National Environmental Policy Act of 1969 (NEPA)

(42 U.S.C. 4321, et seq.) as implemented pursuant to the Council on

Environmental Quality's applicable regulations (40 CFR parts 1500-1508)

and VA's applicable implementing regulations (38 CFR part 26).

(b) Responsibility for review. (1) VA will perform the

environmental review, in accordance with part 26 of this title, for

conditionally selected applications received directly from private

nonprofit organizations and governmental entities with special or

limited purpose powers. VA is not permitted to approve such

applications prior to its completion of this review. Because of time

constraints, any applications subject to environmental review by VA

that requires an Environmental Impact Statement (EIS) (generally, an

application that VA determines would result in a major Federal action

significantly affecting the quality of the human environment in

accordance with the environmental assessment procedures at 38 CFR part

26) will not be eligible for assistance under this part.

(2) Applicants that are States, metropolitan cities, urban

counties, Indian tribes, or other governmental entities with general

purpose powers shall include environmental documentation for the

project submitting information establishing a Categorical Exclusion

(CE), a proposed Environmental Assessment (EA), or a proposed

Environmental Impact Statement (EIS). The environmental documentation

will require approval by VA before final award of a construction or

acquisition grant under this part. (See 38 CFR 26.6 for compliance

requirements.) If the proposed actions involving construction or

acquisition do not individually or cumulatively have a significant

effect on the human environment, the applicant shall submit a letter

noting a CE. If construction outside the walls of an existing structure

will involve more than 75,000 gross square feet (GSF), the application

shall include an EA to determine if an EIS is necessary for compliance

with section 102(2)(c) of the National Environmental Policy Act 1969.

When the application submission requires an EA, the State shall briefly

describe the possible beneficial and/or harmful effect which the

project may have on the following impact categories:

(i) Transportation;

(ii) Air quality;

(iii) Noise;

(iv) Solid waste;

(v) Utilities;

(vi) Geology (soils/hydrology/flood plains);

(vii) Water quality;

(viii) Land use;

(ix) Vegetation, wildlife, aquatic, and ecology/wetlands;

(x) Economic activities;

[[Page 6125]]

(xi) Cultural resources;

(xii) Aesthetics;

(xiii) Residential population;

(xiv) Community services and facilities;

(xv) Community plans and projects; and

(xvi) Other.

(3) If an adverse environmental impact is anticipated, the action

to be taken to minimize the impact should be explained in the EA. An

entity covered by this section that believes that it does not have the

legal capacity to carry out the responsibilities required by 38 CFR

part 26 should contact the VA Homeless Providers Grant and Per Diem

Program, Mental Health and Behavioral Sciences Service (111C), U.S.

Department of Veterans Affairs, 810 Vermont Avenue NW., Washington, DC

20420, for further instructions. Determinations of legal capacity will

be made on a case-by-case basis.

(Paperwork requirements were approved by the Office of Management

and Budget under control number 2900-0554.)

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.715 Aid for supportive services and supportive housing.

(a) Per diem payments. Aid in the form of per diem payments may be

paid to an entity meeting the requirements of the regulations of this

part under the heading ``VA Homeless Providers Grant and Per Diem

Program,'' including the specific criteria of Sec. 17.716 of this part,

if:

(1) VA referred the homeless veteran to a recipient of a grant

under this part (or entity eligible for such a grant as described in

Sec. 17.716 of this part); or

(2) VA authorized the provision of supportive services or

supportive housing for the homeless veteran.

(b) In-kind assistance. In lieu of per diem payments under this

section, VA may, with approval of the grant recipient (or entity

eligible for such a grant as described in Sec. 17.716 of this part),

provide in-kind assistance through the services of VA employees and the

use of other VA resources, to a grant recipient (or entity eligible for

such a grant as described in Sec. 17.716 of this part).

(c) Selection of per diem applicants. In awarding per diem

assistance, applications from grant recipients and nongrant recipients

will be reviewed and ranked separately. Funds will first be awarded to

grant recipients who request such assistance. If funds are still

available for nongrant recipients, VA will announce funding through a

Notice of Funding Availability (NOFA) process as described in

Sec. 17.708 of this part. VA will not award per diem payments when

doing so would decrease funding to those entities already receiving

such payments. For both grant recipients and non-grant recipients,

eligibility will be determined by the criteria described in Sec. 17.716

of this part, and applications will be ranked according to scores

achieved on the portions of the application described in

Sec. 17.716(b)(4) of this part. Applicants must score a minimum of 500

points on these portions to be eligible for per diem. Those

applications that meet the eligibility criteria will be conditionally

selected for per diem assistance. Funds will be allocated to the

highest-ranked, conditionally selected applicants in descending order

until funds are expended. Payments will be contingent upon meeting the

requirements of a site inspection conducted by VA pursuant to

Sec. 17.721 of this part.

(d) Continued receipt of per diem assistance. (1) Continued receipt

of per diem assistance for both grant recipients and nongrant

recipients will be contingent upon maintaining the program for which

per diem is provided so that it would score at least the required

minimum 500 points as described in Sec. 17.716(b)(4) of this part on

the application. VA will ensure compliance by conducting inspections as

described in Sec. 17.721 of this part.

(2) Where the recipient fails to comply with paragraph (d)(1) of

this section, VA will issue a notice of the Department's intent to

discontinue per diem payments. The recipient will then have 30 days to

submit documentation demonstrating why payments should not be

terminated. After review of any such documentation, VA will issue a

final decision on termination of per diem payment.

(3) Continued payment is subject to availability of funds. When

necessary due to funding limitations, VA will, in proportion to the

decrease in funding available, decrease the per diem payment for each

authorized veteran.

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.716 Eligibility to receive per diem payments.

An entity must be formally recognized by VA as eligible to receive

per diem payments under this section before per diem payments can be

made for the care of homeless veterans, except that per diem payments

may be made on behalf of a veteran up to three days prior to this

recognition.

(a) A grant recipient will be eligible if it receives the minimum

score as described in paragraph (b)(4) of this section.

(b) A nongrant recipient will be eligible if it is an entity

eligible to receive a grant, which for the purposes of this section

means:

(1) At least 75 percent of persons who are receiving supportive

services or supportive housing from the entity are veterans who may be

included in computation of the amount of aid payable from VA;

(2) The supportive services or supportive housing program for which

per diem payments is requested was established after November 10, 1992;

(3) The entity is a public or nonprofit private entity; and

(4) The entity score at least 500 cumulative points on the

following sections of the Grant/Per Diem application: Quality (1);

Targeting (2); Ability (3); Description of Need (4); and Coordination

with Other Programs (8). These sections correspond to the selection

criteria of Sec. 17.711(c) of this part.

(c) For grant recipients, only those programs that provide

supportive services or supportive housing (or the portions thereof)

created with grant funds will be considered for per diem assistance.

For nongrant recipients, only those portions of the supportive services

or supportive housing described in the application will be considered

for per diem assistance.

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.717 Request for recognition of eligibility.

(a) Requests for recognition of eligibility may be addressed to the

VA Homeless Providers Grant and Per Diem Programs, Mental Health

Strategic Healthcare Group (116E), U.S. Department of Veterans Affairs,

810 Vermont Avenue NW, Washington, DC 20420.

(b) For nongrant recipients, the receipt of application for per

diem will constitute the request for recognition of eligibility. Grant

recipients seeking per diem assistance will indicate this request on

the application. Grant recipients are not required to complete a

separate application for per diem assistance. VA will review those

portions of the grant application that pertain to per diem. Those

entities already receiving a grant must submit a request for

recognition to initiate the scoring of their application for per diem

payments.

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.718 Approval of annexes and new facilities.

Separate applications for recognition must be filed for any annex,

branch, enlargement, expansion, or relocation of the site of service

provision of an eligible entity's facility which is not on

[[Page 6126]]

the same or contiguous grounds on which the parent facility is located.

When an eligible entity establishes sites which have not been inspected

and approved by VA, a request for separate approval of such sites must

be made. The prohibitions in Sec. 17.720 of this part are also

applicable to applications for aid on behalf of any veterans cared for

in a new annex, branch or enlarged, expanded or relocated facility.

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.719 Amount of aid payable.

The per diem amount payable for supportive housing is the current

VA State Home Program per diem rate for domiciliary care as set forth

in 38 U.S.C. 1741. The per diem amount payable for supportive services,

not provided in conjunction with supportive housing, is $1.10 for each

half-hour during which supportive services are provided, up to $17.60

per day. These rates will be paid provided, however, the per diem

amount for supportive housing or supportive services (not provided in

conjunction with supportive housing) does not exceed one-half of the

cost to the per diem recipient of providing the services. Also,

provided further, per diem payment of supportive housing and supportive

services may be lessened because of budget restriction as described in

Sec. 17.715(d)(3) of this part. Per diem payments may not be paid for a

veteran for both supportive housing and supportive services (not in

conjunction with supportive housing).

(Authority: 38 U.S.C. 501, 7721, note)

Sec. 17.720 [Amended]

(4) In Sec. 17.720, paragraphs (a) introductory text, (a)(1) , and

(a)(2) are amended by removing ``17.715(a)'' and adding, in their

place, ``17.716''.

[FR Doc. 97-3283 Filed 2-10-97; 8:45 am]

BILLING CODE 8320-01-P