Capital Grants

38 C.F.R. Part ..., Subpart B
in effectEffective: 2024-07-01

38 C.F.R. § 61.10 Capital grants—general.

(a) Subject to the availability of appropriations provided for such purpose, VA will provide capital grants to public or nonprofit private entities so they can assist homeless veterans by helping to ensure the availability of supportive housing and service centers to furnish outreach, rehabilitative services, and vocational counseling and training. Specifically, VA provides capital grants for up to 65 percent of the cost to: (1) Construct structures and purchase the underlying land to establish new supportive housing facilities or service centers, or to expand existing supportive housing facilities or service centers; (2) Acquire structures to establish new supportive housing facilities or service centers, or to expand existing supportive housing facilities or service centers; (3) Renovate existing structures to establish new supportive housing facilities or service centers, or to expand existing supportive housing facilities or service centers; and (4) Procure a van in accordance with § 61.18, Capital grants for vans. (b) Capital grants may not be used for acquiring buildings located on VA-owned property. However, capital grants may be awarded for construction, expansion, or renovation of buildings located on VA-owned property.

38 C.F.R. § 61.11 Capital grants—application packages.

(a) General. To apply for a capital grant, an applicant must obtain from, complete, and submit to VA a capital grant application package within the time period established in the Notice of Fund Availability. (b) Content of application. The capital grant application package will require the following: (1) Site description, site design, and site cost estimates. (2) Documentation supporting: (i) Eligibility to receive a capital grant under this part; (ii) Matching funds committed to the project; (iii) A proposed operating budget and cost sharing; (iv) Supportive services committed to the project; (v) The applicant's authority to control the site and meet appropriate zoning laws; and (vi) The boundaries of the area or community that would be served. (3) If capital grant funds would be used for acquisition or rehabilitation, documentation demonstrating that the costs associated with acquisition or rehabilitation are less than the costs associated with new construction. (4) If capital grant funds would be used for new construction, documentation demonstrating that the costs associated with new construction are less than the costs associated with rehabilitation of an existing building, that there is a lack of available appropriate units that could be rehabilitated at a cost less than new construction, and that new construction is less costly than acquisition of an existing building (for purposes of this cost comparison, costs associated with rehabilitation or new construction may include the cost of real property acquisition). (5) If proposed construction includes demolition: (i) A demolition plan that describes the extent and cost of existing site features to be removed, stored, or relocated; and (ii) Information establishing that the proposed construction is either in the same location as the building to be demolished or that the demolition is inextricably linked to the design of the construction project. Without such information, the cost of demolition cannot be included in the cost of construction. (6) If the applicant is a state, comments or recommendations by appropriate state (and area wide) clearinghouses pursuant to E.O. 12372 (3 CFR, 1982 Comp., p. 197). (7) A statement from the applicant that all of the following are true: (i) The project will furnish to veterans the level of care for which such application is made, and services provided will meet the requirements of this part. (ii) The applicant will continue to operate the project until the expiration of the period during which VA could seek full recovery under § 61.67. (iii) Title to the site will vest solely in the applicant and the applicant will insure the site to the same extent they would insure a site bought with their own funds. (iv) Adequate financial support will be available for the completion of the project. (v) The applicant will keep records and submit reports as VA may reasonably require, within the time frames required, and, upon demand, allow VA access to the records upon which such information is based. (vi) The applicant will state that no more than 25 percent of the grant-awarded beds are occupied by non-veterans. (c) Multiple capital grant applications. Subject to § 61.12(i), applicants may apply for more than one capital grant.

38 C.F.R. § 61.12 Capital grant application packages—threshold requirements.

The following threshold requirements for a capital grant application must be met, or the application will be rejected before being rated under § 61.13: (a) The application package must meet all of the following criteria: (1) Be on the correct application form. (2) Be completed in all parts, including all information requested in the Notice of Fund Availability and application package. (3) Include a signed Application for Federal Assistance (SF 424) that contains the Employer Identification Number or Taxpayer Identification Number (EIN/TIN) that corresponds to the applicant's Internal Revenue Service (IRS) 501(c)(3) or (19) determination letter. All applicants must provide such an IRS determination letter, which includes their EIN/TIN. Applicants that apply under a group EIN/TIN must be identified by the parent EIN/TIN as a member or sub-unit of the parent EIN/TIN and provide supporting documentation. (4) Be submitted before the deadline established in the Notice of Fund Availability. (b) The applicant must be a public or nonprofit private entity at the time of application. (c) The activities for which assistance is requested must be eligible for funding under this part. (d) The applicant must demonstrate that adequate financial support will be available to carry out the project for which the capital grant is sought, consistent with the plans, specifications, and schedule submitted by the applicant. (e) 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). (f) The applicant must agree to comply with the requirements of this part and demonstrate the capacity to do so. (g) The applicant must not have an outstanding obligation to VA that is in arrears, or have an overdue or unsatisfactory response to an audit. (h) The applicant must not have been notified by VA as being in default. (i) The applicant, during the 5 years preceding the date of the application, must not have done any of the following: (1) Had more than two grants awarded under this part that remain in development; (2) Failed to establish two previous awarded grant projects under this part; or (3) Had a previous grant or per diem project awarded under this part terminated or transferred to another eligible entity for failure to comply with the terms and conditions of the award.

38 C.F.R. § 61.13 Capital grant application packages—rating criteria.

(a) General. Applicants that meet the threshold requirements in § 61.12 will be rated using the selection criteria listed in this section. To be eligible for a capital grant, an applicant must receive at least 750 points (out of a possible 1000) and must receive points under each of the following paragraphs (b), (c), (d), (e), (f), and (g) of this section. (b) Project plan. VA will award up to 300 points based on the demonstration and quality of the following: (1) The selection of the proposed housing in light of the population to be served. (2) The process used for deciding which veterans are appropriate for admission. (3) How, when, and by whom the progress of participants toward meeting their individual goals will be monitored, evaluated, and documented. (4) The role program participants will have in operating and maintaining the housing. (5) The responsibilities the applicant, sponsors, or contractors will have in operating and maintaining the housing. (6) The supportive services that will be provided and by whom to help participants achieve residential stability, increase skill level and/or income, and become involved in making life decisions that will increase self-determination. (7) The measurable objectives that will be used to determine success of the supportive services. (8) How the success of the program will be evaluated on an ongoing basis. (9) How the nutritional needs of veterans will be met. (10) How the agency will ensure a clean and sober environment. (11) How participants will be assisted in assimilating into the community through access to neighborhood facilities, activities, and services. (12) How the proposed project will be implemented in a timely fashion. (13) How permanent affordable housing will be identified and made known to participants upon leaving the supportive housing. (14) How participants will be provided necessary follow-up services. (15) The description of program policies regarding participant agreements, rent, and fees. (c) Outreach to persons on streets and in shelters. VA will award up to 100 points based on: (1) The agency's outreach plan to serve homeless veterans living in places not ordinarily meant for human habitation (e.g., streets, parks, abandoned buildings, automobiles, under bridges, in transportation facilities) and those who reside in emergency shelters; and (2) The likelihood that proposed plans for outreach and selection of participants will result in these populations being served. (d) Ability of applicant to develop and operate a project. VA will award up to 200 points based on the extent to which the application demonstrates the necessary staff and organizational experience to complete and operate the proposed project, based on the following: (1) Staffing plan for the project that reflects the appropriate professional staff, both administrative and clinical; (2) Experience of staff, if staff not yet hired, position descriptions and expectations of time to hire; (3) Amount of time each staff position is dedicated to the project, and in what capacity; (4) Applicant's previous experience assessing and providing for the housing needs of homeless veterans; (5) Applicant's previous experience assessing and providing supportive services for homeless veterans; (6) Applicant's previous experience assessing supportive service resources and entitlement benefits; (7) Applicant's previous experience with evaluating the progress of both individual participants and overall program effectiveness using quality and performance data to make changes; (8) Applicant's previous experience operating housing for homeless individuals; (9) Overall agency organizational overview (org. chart); and (10) Historical documentation of past performance both with VA and non-VA projects, including those from other Federal, state and local agencies and audits by private or public entities. (e) Need. VA will award up to 150 points based on the extent to which the applicant demonstrates: (1) Substantial unmet needs, particularly among the target population living in places not ordinarily meant for human habitation such as the streets, emergency shelters, based on reliable data from surveys of homeless populations or other reports or data gathering mechanisms that directly support claims made; and (2) An understanding of the homeless population to be served and its unmet housing and supportive service needs. (f) Completion confidence. VA will award up to 50 points based on the review panel's confidence that the applicant has effectively demonstrated the supportive housing or service center project will be completed as described in the application. VA may use historical program documents of past performance both VA and non-VA, including those from other Federal, state and local agencies as well as audits by private or public entities in determining confidence scores. (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 care facility of jurisdiction and/or VA Regional Office of jurisdiction in their area. 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.

38 C.F.R. § 61.14 Capital grants—selection of grantees.

(a) Applicants will first be grouped in categories according to the funding priorities set forth in the NOFA, if any. Applicants will then be ranked, within their respective funding category if applicable. The highest-ranked applications for which funding is available, within highest priority funding category if applicable, will be conditionally selected to receive a capital grant in accordance with their ranked order, as determined under § 61.13. 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. (b) In the event of a tie between applicants, VA will use the score from § 61.13(g) to determine the ranking. If the score from § 61.13(g) is also tied, VA will use the score from § 61.13(d) to determine the ranking. (c) VA may reject an application where the project is not cost effective based on the cost and number of new supportive housing beds made available—or based on the cost, amount, and types of supportive services made available—when compared to other supportive housing or services projects, and when adjusted for high cost areas. For those applications that VA believes not to be cost-effective VA will; (1) Reduce the award; or (2) Not select the application for funding. (d) VA may not reject an application solely on the basis that the entity proposes to use funding from other private or public sources, if the entity demonstrates that a private nonprofit organization will provide oversight and site control for the project. In this section “private nonprofit organization” means one of the following: (1) An incorporated private institution, organization, or foundation— (i) That has received, or has temporary clearance to receive, tax-exempt status under paragraph (2), (3), or (19) of section 501(c) of the Internal Revenue Code of 1986; (ii) For which no part of the net earnings of the institution, organization, or foundation inures to the benefit of any member, founder, or contributor of the institution, organization, or foundation; and (iii) That VA determines is financially responsible. (2) A for-profit limited partnership or limited liability company, the sole general partner or manager of which is an organization that is described by paragraph (d)(1) of this section. (3) A corporation wholly owned and controlled by an organization that is described by paragraph (d)(1) of this section. (e) In the case of a previously awarded project that can no longer provide services and or housing and the recipient agency has decided to withdraw or the project has been terminated for failure to comply with the terms and conditions of the award; VA may transfer a capital grant or non-capital grant to another eligible entity in the same geographical area without competition, in order to prevent a loss of capacity of services and housing to homeless veterans. The new entity must meet all of the requirements to which the original grantee was subject. In the case of a capital grant transfer the new grantee will only be entitled to the funding that remains from the original capital obligation and remains responsible for all commitments made by the original grantee.

38 C.F.R. § 61.15 Capital grants—obtaining additional information and awarding capital grants.

(a) Each applicant who has been conditionally selected for a capital grant will be requested by VA to submit additional documentation or information as necessary, including: (1) Any additional information necessary to show that the project is feasible, including a plan from an architect, contractor, or other building professional who provides estimated costs for the proposed design; (2) Documentation showing the sources of funding for the project and firm financing commitments for the matching requirements described in § 61.16; (3) Documentation establishing site control described in § 61.17; (4) Documentation establishing compliance with the National Historic Preservation Act (16 U.S.C. 470); (5) Information necessary for VA to ensure compliance both with Uniform Federal Accessibility Standards (UFAS) and the Americans with Disabilities Act Accessibility Guidelines; (6) Documentation establishing compliance with local and state zoning codes; (7) Documentation in the form of one set of design development (35 percent completion) drawings demonstrating compliance with local codes, state codes, and the current Life Safety Code of the National Fire Protection Association. (8) Information necessary for VA to ensure compliance with the provisions of the National Environmental Policy Act (42 U.S.C. 4321 et seq.); (9) A site survey performed by a licensed land surveyor; and (10) Such other documentation as specified by VA in writing or verbally to the applicant to confirm or clarify information provided in the application. (b) Items requested under paragraph (a) of this section must be received by VA in acceptable form within the time frame established in accordance with the Notice of Fund Availability. (c) Following receipt of the additional information in acceptable form, VA will execute an agreement and make payments to the grant recipient in accordance with § 61.61 and other applicable provisions of this part.

38 C.F.R. § 61.16 Matching funds for capital grants.

(a) VA cannot award a capital grant for more than 65 percent of the total allowable costs of the project. The grantee must provide funding (“matching funding”) for the remaining 35 percent of the total cost, using non-federal funds. VA requires that applicants provide documentation of all costs related to the project including those that are not allowable under the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards under 2 CFR part 200. Allowable costs means those related to the portion (percentage) of the property that would be used to provide supportive housing and services under this part. (b) Capital grants may include application costs, including site surveys, architectural, and engineering fees, but may not include relocation costs or developer's fees. (c) Documentation of matching funds. The matching funds described in paragraph (a) of this section must be documented as follows; no other format will be accepted as evidence of a firm commitment of matching funds: (1) Donations must be on the donor's letterhead, signed and dated. (2) The applicant's own cash must be committed on the applicant's letterhead, signed, and dated. (3) No conditions may be placed on the matching funds other than the organization's receipt of the capital grant. (4) Funds must be committed to the same activity as the capital grant application (i.e., acquisition, renovation, new construction, or a van), and must not relate to operating costs or services. (5) The value of matching funds must be for a cost that is included in the calculation of the total project cost, thereby decreasing the total expenditures of the grantee. (d) Van applications. The requirements of this section also apply to applications for a capital grant for a van under § 61.18.

38 C.F.R. § 61.17 Site control for capital grants.

(a) In order to receive a capital grant for supportive housing or a fixed site service center, an applicant must demonstrate site control. Site control must be demonstrated through a deed or an executed contract of sale, or a capital lease, which assigns control or ownership to the entity whose Federal employer or taxpayer identification number is on the Application for Federal Assistance (SF424), unless one of the following apply: (1) VA gives written permission for an alternate assignment. VA will permit alternate assignments except when: (i) The alternate assignment is to a for-profit entity which is neither controlled by the applicant or by the applicant's parent organization or the entity is controlled by the applicant's parent organization which is a for-profit entity; or (ii) VA has a reasonable concern that the assignment may provide an economic or monetary benefit to the assignee other than the benefit that would have inured to the applicant had the applicant not made the alternate assignment. (2) The site is in a building or on land owned by VA, and the applicant has an agreement with VA for site control. (b) A capital grant recipient may change the site to a new site meeting the requirements of this part subject to VA approval under § 61.62. However, the recipient is responsible for and must demonstrate ability to provide for any additional costs resulting from the change in site. (c) If site control is not demonstrated within 1 year after execution of an agreement under § 61.61, the grantee may request a reasonable extension from the VA national GPD office, or the grant may be terminated. VA will authorize an extension request if the grantee was not at fault for being unable to exercise site control and the lack of site control does not affect the grantee's ability to complete the project.

38 C.F.R. § 61.18 Capital grants for vans.

(a) General. A capital grant may be used to procure one or more vans, as stated in a NOFA, to provide transportation or outreach for the purpose of providing supportive services. The grant may cover the purchase price, sales taxes, and title and licensing fees. Title to the van must vest solely in the applicant, and the applicant must insure the van to the same extent they would insure a van bought with their own funds. (b) Who can apply for a van. VA will only award vans to applicants who currently have an operational grant under this part, or in conjunction with a new application. (c) Application packages for van(s). In order to receive a van, the application must demonstrate the following: (1) Clear need for the van(s); (2) Specific use of the van(s); (3) Frequency of use of the van(s); (4) Qualifications of the van driver(s); (5) Training of the van driver(s); (6) Type of van(s) to be obtained; and (7) Adequate financial support will be available for the completion of the project or for the purchase and maintenance, repair, and operation of the van(s). (d) Rating criteria. Applications will be scored using the selection criteria listed in this section. To be eligible for a van grant, an applicant must receive at least 80 points (out of a possible 100) of this section. (1) Need. VA will award up to 60 points based on the extent to which the applicant demonstrates a substantial unmet need for transportation due to: (i) Lack of alternative public transportation, (ii) Project location, (iii) Expired life use of current van, or (iv) Special disabled individual transportation. (2) Activity. VA will award up to 20 points based on the extent to which the applicant demonstrates: (i) Frequency of use, (ii) Type of use, and (iii) Type of van, e.g., whether there is a justification for a van with a wheelchair lift or other modifications. (3) Operator qualification. VA will award up to 20 points based on the extent to which the applicant demonstrates a job description for the van operator that details: (i) Requirements of the position, and (ii) Training that will be provided to the driver.

38 C.F.R. § 61.19 Transfer of capital grants.

In the case of a previously awarded project that can no longer provide services and/or housing and the recipient agency has decided to withdraw or the project has been terminated for failure to comply with the terms and conditions of the award, VA may transfer a capital grant or non-capital grant to another eligible entity in the same geographical area without competition, in order to prevent a loss of capacity of services and housing to homeless veterans. The new entity must meet all of the requirements to which the original grantee was subject. In the case of a capital grant transfer the new grantee will only be entitled to the funding that remains from the original capital obligation and remains responsible for all commitments made by the original grantee.

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