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Federal Register / Vol. 86, No. 184 / Monday, September 27, 2021 / Rules and Regulations VASH PBV set-aside award. The PHA
and owner may agree to amend a PBV
HAP contract to re-designate a regular PBV unit as a unit specifically designated for HUDVASH families, so long as the PHA first consults with the VAMC or DSP. Additionally, the PHA
and owner may agree to amend a PBV
HAP contract to re-designate a unit specifically designated for HUDVASH
families as a regular PBV unit, so long as the unit is not funded through a HUDVASH PBV set-aside award and is eligible for a regular PBV for instance, the unit is not on the grounds of a medical facility and the unit is eligible under the PHAs program and project caps.
PBV project selection for HUDVASH
must follow all regular project selection regulations.

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l. Section Eight Management Assessment Program SEMAP
HUDVASH vouchers will remain excluded from the SEMAP leasing indicator. Therefore, 24 CFR
985.3n1i and ii are still waived.
During a HUDVASH PHAs calendar year, the prorated budget authority available for HUDVASH vouchers and the units associated with that budget authority will be excluded from the denominators for both units leased, and dollars expended.
m. Reallocation of HUDVASH
Vouchers Under the Appropriation Acts, Congress has directed VA and HUD to collaboratively allocate HUDVASH
vouchers based on current geographical need for such assistance. In recognition that there may be changes and shifts in the population of homeless veterans over time, it may become necessary for the VA and HUD to jointly reallocate HUDVASH vouchers to better address the current needs of the homeless veteran population. This reallocation may be done in one of two ways. If there is continued need at the VAMC or DSP, HUDVASH vouchers may be voluntarily moved between PHAs administering HUDVASH programs within the same VAMC or DSP
catchment area. Alternatively, if it has been determined that a VAMC or DSP
no longer has sufficient need and will not be able to utilize their available HUDVASH vouchers, HUD and VA
may choose to jointly recapture HUD
VASH vouchers from the VAMC or DSP
and any partnering PHAs. Recaptured vouchers, and any associated funding, will be reallocated through a national allocation process, to areas with current need. HUD will issue additional PHA
guidance on both HUDVASH voucher
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voluntary moves within a VAMC or DSP
and the HUDVASH recapture processes.
n. HQS Inspections To expedite the leasing process for tenant-based HUDVASH, PHAs may pre-inspect available units that veterans may be interested in leasing to maintain a pool of eligible units. If a HUDVASH
family selects a unit that passed a HQS
inspection without intervening occupancy within 45 days of the date of the Request for Tenancy Approval form HUD52517, the unit may be approved as long as it meets all other conditions under 24 CFR 982.305. As required by 24 CFR 982.353e, a PHA
is prohibited from directly or indirectly reducing the familys opportunity to select among all available units. All regulatory requirements pertaining to HQS found at 24 CFR 982.401 apply to HUDVASH.
o. Exception Payment Standards Many housing markets with a high need for HUDVASH are very competitive with a shortage of affordable rental units. In addition, landlords may be reluctant to rent to homeless individuals due to poor credit history or other issues. To assist HUD
VASH participants in finding affordable housing, especially in competitive markets, HUD is waiving 24 CFR
982.503a3 to allow a PHA to establish a HUDVASH exception payment standard. Without this waiver, a PHA is required to establish a single payment standard amount for each unit size. Additionally, 982.503biii is waived so that PHAs may go up to, but no higher than 120 percent of the published metropolitan area-wide FMRs or Small Area FMRs based on which FMRs the PHA is applying specifically for HUDVASH families. A PHA that wants to establish a HUDVASH
exception payment standard over 120
percent must still request a waiver from HUD through the regular waiver process outlined in notice PIH 201816, or any successor notices. Exception payment standards implemented by the PHA
under this Section also apply in determining rents for PBV projects with units exclusively made available to HUDVASH families see 24 CFR
983.301.

following special housing types for tenant-based HUDVASH assistance, regardless of whether these types are permitted in their administrative plan for other families: single room occupancy SRO; congregate housing;
group home; shared housing; and cooperative housing. Regulations for these housing types can be found at 24
CFR part 982, subpart M.
Consistent with the regulations, HUDVASH PBV can never be applied to shared housing.
III. Reporting Requirements The VASH code was established for use on line 2n of the Family Report form HUD50058 or 2p of the MTW
50058, to indicate if the family participates in a special program. The information collection requested on both Family Reports has been approved by the Office of Management and Budget OMB and given OMB control number 25770083. No person is required to respond to, nor shall any person be subject to a penalty for failure to comply with a collection of information subject to the requirements of the Paperwork Reduction Act PRA, unless that collection displays a currently valid OMB control number.
This code must remain on the HUD
50058 and MTW 50058 for the duration of the HUDVASH familys participation in the program. The PHA
that administers the HUDVASH
voucher on behalf of the family regardless of whether the PHA has received an allocation of HUDVASH
vouchers must enter and maintain this code on the HUD50058 or MTW 50058.
Data will also be captured in the Voucher Management System VMS on monthly leasing and expenditures for HUDVASH vouchers.
For any additional systems reporting requirements that may be established, HUD will provide further guidance.
Dominique Blom, General Deputy Assistant Secretary for Public and Indian Housing.
FR Doc. 202120734 Filed 92421; 8:45 am BILLING CODE 421067P

p. Special Housing Types Special housing types can be particularly useful to HUDVASH
clients, as it can increase the availability of housing, and for some veterans, can be a better housing environment than a single-family unit. As such, PHAs must permit HUDVASH clients to use the
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