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The Department of Veterans Affairs (VA) is amending its regulations that govern the Supportive Services for Veteran Families (SSVF) Program.  This final rule will provide a more effective subsidy to veterans and their families in high-cost rental markets; increase the cap in General Housing Assistance to reflect increased costs; and extend the ability of SSVF grantees to provide emergency housing for the most vulnerable, unsheltered veterans and their families.

Statement of Need:

Public Law 110-387, extended by Public Law 114-228, created the authority to enact the Supportive Services for Veteran Families (SSVF) Program under 38 U.S.C. 2044. This Final Rule will enable grantees to augment available services for homeless veterans by enhancing availability of emergency housing assistance, updating the basis for rental subsidies, and increasing the cap on 62.34(e)(2).

Summary of the Legal Basis:

The Department of Veterans Affairs (VA) amends its regulations that govern the SSVF Program. This final rule will provide a more effective subsidy to Veterans in high-cost rental markets; increase the cap in General Housing Assistance to reflect increased costs; and extend the ability of SSVF grantees to provide emergency housing for the most vulnerable, unsheltered veterans and their families.

Alternatives:

One alternative approach would be to leave current regulations unchanged. This option was not pursued as the existing regulations do not factor in years of inflation that has eroded the value of the $1500 General Housing Stability cap. Further, limitations on Emergency Housing Assistance do not reflect current understanding that has shown that when currently homeless Veterans have the option to access temporary housing through hotels and motels, they are more likely to be engaged in services.

Successful engagement of homeless Veterans in services is critical if VA is to meet the Administration’s goal of ending homelessness among Veterans. The need to increase the subsidy in 62.64(a)(8) from 35 percent to 50 percent requires immediate effect to ensure rental supports are immediately available to very low-income Veterans at-risk of becoming homeless, particularly given that the COVID-19 pandemic, with its sustained adverse economic consequences, may have reduced or limited their personal resources. Finally, leaving the current 2-year rental subsidy as is, based on the fair market rent (FMR), would leave in place a system that inaccurately estimates rental costs and is inconsistent with the rent reasonableness standard applied elsewhere within 38 USC 2044.

Anticipated Costs and Benefits:

This rulemaking extends the ability of SSVF grantees to engage the most vulnerable, unsheltered Veterans; provides a more effective subsidy to Veterans in high-cost rental markets; and increases the cap in General Housing Assistance to reflect increased costs. Future, automatic increases in General Housing Assistance will ensure that it keeps pace with needs. VA has determined that there are costs and transfers associated with the provisions of this rulemaking. The total budgetary impact for this rulemaking is estimated to be $249 million in FY2022 and $1.3 billion from FY2022-FY2026.

Risks:

The rule impacts very low-income veterans who receive supportive services by assisting them in obtaining and maintaining permanent housing as well as the private non-profit organizations or consumer cooperatives who provide or coordinate such services.