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VA Homeless Providers Grant and Per Diem Program rule (2021)

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The VA Homeless Providers Grant and Per Diem Program rule is a significant rule issued by the Department of Veterans Affairs (VA) effective July 26, 2021, that revised the VA Grant and Per Diem program to make it easier for recipients— organizations who assist veterans experiencing homelessness— to use the funds more flexibly and efficiently, per the Veterans Benefits, Health Care, and Information Technology Act of 2006. [1][2]

HIGHLIGHTS
  • Name: VA Homeless Providers Grant and Per Diem Program
  • Action: Final rule
  • Type of significant rule: Other significant rule

    • Timeline

    The following timeline details key rulemaking activity:

    Background

    The Veterans Benefits, Health Care, and Information Technology Act of 2006 codified the VA's Grant and Per Diem program, which is the VA's largest transitional housing program for veterans experiencing homelessness. The program funds community-based organizations that provide holistic support for veterans seeking permanent housing. The program aims to increase the skill sets of veterans experiencing homelessness that they see increased financial and, eventually, residential stability. This rule gives grant recipients more flexibility with the funding to meet the needs of veterans experiencing homelessness.[3]

    Summary of the rule

    The following is a summary of the rule from the rule's entry in the Federal Register:

    “ The Department of Veterans Affairs (VA) is amending its regulations concerning the VA Homeless Providers Grant and Per Diem (GPD) Program. These amendments provide GPD with increased flexibility to: Respond to the changing needs of homeless veterans; repurpose existing and future funds more efficiently; and allow recipients the ability to add, modify, or eliminate components of funded programs. This rule updates these regulations to better serve our homeless veteran population and the recipients who serve them.[1][4] ”

    Summary of provisions

    The following is a summary of the provisions from the rule's entry in the Federal Register:[1]

    “ PART 61—VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM

    1. The authority citation for part 61 continues to read as follows:

    Authority:

    38 U.S.C. 501, 2001, 2002, 2011, 2012, 2061, and 2064.

    § 61.1

    [Amended]

    2. In § 61.1 amend paragraph (2)(i) of the definition of “Supportive housing” by removing the phrase “within a period that is not less than 90 days and does not exceed” and adding in its place “as soon as possible but no later than”.

    3. Add § 61.5 to subpart A to read as follows:

    § 61.5

    Implementation of VA Limits on Payments due to Funding Restrictions.

    (a) Continuing payments.

    Once a grant agreement is awarded by VA, payments will continue for the time frame specified in the federal award, subject to the availability of funds, as long as the recipient continues to provide the supportive services and housing

    described in its grant application, meets VA's Homeless Providers Grant and Per Diem (GPD) Program performance goals, and meets the applicable requirements of this part.

    (b) Factors.

    (1) In cases of limited availability of funding during the time frame specified in the federal award, VA may terminate the payment of per diem payments to recipients after weighing the following factors:

    (i) Non-duplication of ongoing services and equitable distribution of grant agreements across geographic regions, including rural communities and tribal lands;

    (ii) Receipt by recipient of any capital investment from VA or any other source; and

    (iii) Recipient's demonstrated compliance with GPD performance goals.

    (2) Notwithstanding paragraph (b)(1) of this section, when an awarded grant agreement is terminated during the time frame specified in the federal award due to no fault by the recipient, VA shall refrain from applying the recapture provisions of 38 CFR 61.67.

    4. Revise § 61.33 to read as follows:

    § 61.33

    Payment of per diem.

    (a) General.

    VA will pay per diem to recipients that provide a bed day of care:

    (1) For a homeless veteran:

    (i) Who VA referred to the recipient; or

    (ii) For whom VA authorized the provision of supportive housing or supportive service;

    (2) For providers of both supportive housing and services. When the referral or authorization of the homeless veteran will not result in the project exceeding the total number of bed days of care or total obligated funding as indicated in the grant agreement and funding action document; or

    (3) For service centers. When the total hours of service or total obligated funding as indicated in the grant agreement and funding action document.

    (b) VA Review.

    VA may at any time review the provision of supportive housing and services to individual veterans by the provider to ensure the care provided continues to be needed and appropriate.

    (c) Rate of payments for individual veterans.

    The rate of per diem for each veteran in supportive housing will 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).

    (d) Rate of payments for service centers.

    The per diem amount for service centers shall be 1–8 of the lesser of the amount in paragraph (c)(1) or (c)(2) of this section, per hour, not to exceed eight (8) hours in any day.

    (e) Reimbursements.

    Per diem may be paid retroactively for services provided not more than three (3) days before VA approval is given or where, through no fault of the recipient, per diem payments should have been made but were not made.

    (f) Payments for absent veterans.

    VA will pay per diem up to a maximum of seventy-two (72) consecutive hours for the scheduled or unscheduled absence of a veteran, or, in the case of an in-patient hospitalization, will pay per diem up to a maximum of seven (7) days.

    (g) Veterans receiving supportive housing and services.

    For circumstances where a veteran is receiving supportive housing and supportive services from the same per diem recipient, VA will not pay a per diem for the supportive services.

    (h) Reporting other sources of income.

    At the time of receipt of a federal award from VA, a per diem recipient must report to VA all other sources of income for the project for which per diem was awarded. The report provides a basis for adjustments to the per diem payment under paragraph (c)(1) of this section.

    5. Amend § 61.61 by revising paragraph (a) to read as follows:

    § 61.61

    Agreement and funding actions.

    (a) Agreement.

    When VA selects an applicant for grant or per diem award under this part, VA will incorporate the requirements of this part into an agreement to be executed by VA and the applicant. VA makes the final decision on applicant selection. VA may negotiate with an applicant regarding the details of the agreement and funding, as necessary. VA will enforce the agreement through such action as may be appropriate, including temporarily withholding cash payments pending correction of a deficiency. Appropriate actions include actions in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards under 2 CFR part 200.

    6. Amend § 61.80 by revising paragraph (c) to read as follows:

    § 61.80

    General operation requirements for supportive housing and service centers.

    (c) VA will provide performance goals to recipients in its initial federal award and update annually thereafter:

    (1) Each recipient must conduct an ongoing assessment of the supportive housing and services needed by their residents and the availability of housing and services to meet this need. Recipients are expected to make adjustments to meet resident needs.

    (2) The recipient will provide to the VA GPD Liaison evidence of its ongoing assessment of the plan described in the grant application. The assessment must show how it is using the plan to meet the GPD performance goals.

    (3) The VA GPD Liaison will provide the GPD performance information to recipients. VA will incorporate this assessment information into the annual inspection report.

    (i) The VA GPD Liaison will review the quarterly assessment with the recipient no later than (30) days after the end of each of the following quarters:

    (A) Quarter 1 (October–December) assessment completed not later than January 30;

    (B) Quarter 2 (January–March) assessment completed not later than April 30;

    (C) Quarter 3 (April–June) assessment completed not later than July 30; and,

    (D) Quarter 4 (July–September) assessment completed not later than October 30.

    (ii) A valid assessment must include the following:

    (A) A comparison of actual accomplishments to established GPD performance goals for the reporting period addressing quantifiable as well as non-quantifiable goals. Examples include, but are not limited to, a description of grant agreement-related activities, such as: Hiring and training personnel, community orientation/awareness activities, programmatic activities, or job development; and

    (B) Identification of administrative and programmatic problems, which may affect performance and proposed solutions.

    (iii) Recipients and VA GPD Liaisons must include a summary of the quarterly assessment in their administrative records. These quarterly assessments will be used to provide a

    cumulative assessment for the entire calendar year.

    (iv) The recipient must immediately inform the VA GPD Liaison of any significant developments affecting its ability to accomplish the work. VA GPD Liaisons will provide necessary technical assistance.

    (v) If, after reviewing a recipient's assessment, VA determines that it falls more than five percent below any performance goal, then VA may require the recipient to create and follow a performance improvement plan (PIP) as outlined in 38 CFR 61.80(c)(vi).

    (vi) Performance Improvement Plan (PIP): If VA determines that a recipient deviates more than five percent from established GPD performance goals for any two (2) consecutive quarters as defined in 38 CFR 61.80(c)(3)(A)(i) through (iv), the recipient will submit a PIP to the VA GPD Liaison sixty (60) calendar days after VA makes its determination.

    (A) The PIP must identify the activity which falls below the measure. The PIP must describe the reason(s) why the recipient did not meet the performance measure(s) and provide specific proposed corrective action(s) and a timetable for accomplishment of the corrective action. The plan may include the recipient's intent to propose modifying the grant agreement. The recipient will submit the PIP to the VA GPD Liaison.

    (B) The VA GPD Liaison will forward the PIP to the VA National GPD Program Office. The VA National GPD Program Office will review the PIP and notify the recipient in writing whether the PIP is approved or disapproved. If disapproved, the VA GPD Liaison will make suggestions for improving the proposed PIP, and the recipient may resubmit the PIP to the VA National GPD Program Office.

    (vii) If the recipient is not compliant after the PIP, then VA may impose any combination of the following enforcement actions by award revision:

    (A) Withhold placements;

    (B) Withhold payment;

    (C) Suspend payment; and

    (D) Terminate the grant agreement, as outlined in this part or other applicable federal statutes and regulations.[4]

    		”

    Significant impact

    See also: Significant regulatory action

    Executive Order 12866, issued by President Bill Clinton (D) in 1993, directed the Office of Management and Budget (OMB) to determine which agency rules qualify as significant rules and thus are subject to OMB review.

    Significant rules have had or might have a large impact on the economy, environment, public health, or state or local governments. These actions may also conflict with other rules or presidential priorities. Executive Order 12866 further defined an economically significant rule as a significant rule with an associated economic impact of $100 million or more. Executive Order 14094, issued by President Joe Biden (D) on April 6, 2023, made changes to Executive Order 12866, including referring to economically significant rules as section 3(f)(1) significant rules and raising the monetary threshold for economic significance to $200 million or more.[1]


    The text of the VA Homeless Providers Grant and Per Diem Program rule states that OMB deemed this rule significant, but not economically significant:

    “ The Office of Information and Regulatory Affairs has determined that this rule is a significant regulatory action under Executive Order 12866.[4] ”

    Text of the rule

    The full text of the rule is available below:[1]

    See also

    External links

    Footnotes

    1. ↑ 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 Federal Register, "VA Homeless Providers Grant and Per Diem Program," December 13, 2023.
    2. ↑ Gov Info, "Public Law 109 - 461 - Veterans Benefits, Health Care, and Information Technology Act of 2006," December 13, 2023.
    3. ↑ Department of Veterans Affairs, "US Department of Veterans Affairs (VA) Grant & Per Diem (GPD) Program," December 13, 2023.
    4. ↑ 4.0 4.1 4.2 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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