[Code of Federal Regulations]
[Title 38, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR61.67]

[Page 946-947]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 61--VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM--Table of Contents
 
Sec. 61.67  Recovery provisions.

    (a) If after 3 years from the date of award of a capital grant, the 
grant recipient has withdrawn from the VA Homeless Providers Grant and 
Per Diem Program (Program); does not establish the project for which the 
grant was made; or has established the project for which the grant was 
made but has not had final inspection, VA would be entitled to recover 
from the grant recipient all of the grant amounts provided for the 
project.
    (b) Where the grant recipient is not subject to recovery under 
paragraph (a) of this section, VA will seek recovery of the grant amount 
on a prorated basis where the grant recipient ceases to provide services 
for which the grant was made or withdraws from the Program prior to the 
expiration of the applicable period of operation, which period shall 
begin on the date of final inspection for which the grant was made. The 
amount to be recaptured equals the total amount of the grant, multiplied 
by the fraction resulting from using the number of years the recipient 
was not operational as the numerator, and using the number of years of 
operation required under the following chart as the denominator.

------------------------------------------------------------------------
                                                               Years of
            Grant amount  (dollars in thousands)              operation
------------------------------------------------------------------------
0-250......................................................            7
251-500....................................................            8
501-750....................................................            9
751-1,000..................................................           10
1,001-1,250................................................           11
1,251-1,500................................................           12
1,501-1,750................................................           13
1,751-2,000................................................           14
2,001-2,250................................................           15
2,251-2,500................................................           16
2,501-2,750................................................           17
2,751-3,000................................................           18
Over 3,000.................................................           20
------------------------------------------------------------------------


    Example A: Grantee A is awarded a grant and does not bring the 
project to operational status within 3 years from the time of award. 
Grantee A may be subject to full recapture of the grant award.
    Example B: Grantee B is awarded a grant in the amount of $300,000 
and brings the project to operational status within 3 years from the 
time of award. Grantee B then provides services to homeless veterans for 
a period of 6 years from the date the program was operationalized, but 
now decides to close the program. As the original award was $300,000 and 
as a condition of receiving the grant funds Grantee B agreed to provide 
services for 8 years. Therefore, Grantee B would be subject to the 
prorated recapture of the grant award for the 2-year period not served 
or in this case 1/4 of the original grant would be subject to recapture.
    Example C: Grantee C is awarded a grant in the amount of $400,000, 
becomes operational within 1 year of the date of the grant award and 
ceases operation 1 year later, 2 years after the date of the grant 
award. After the expiration of the 3-year period beginning on the date 
of the grant award, Grantee C would be subject to prorated recapture for 
the 7 years it did not provide service of the required 8 years of 
operation. The amount subject to recapture would thus be 7/8 x $400,000 
or $350,000.

    (c) VA will seek to recover from the recipient of per diem, a 
special needs grant, or a technical assistance grant

[[Page 947]]

any funds that are not used in accordance with the requirements of this 
part.
    (d) Before VA would take action to recover funds, VA will issue to 
the recipient a notice of intent to recover funds. The recipient will 
then have 30 days to submit documentation demonstrating why funds should 
not be recovered. After review of any such documentation, VA will issue 
a decision regarding whether action will be taken to recover funds.

(Authority: 38 U.S.C. 501, 2002, 2011, 2012, 2061, 2064, 7721 note)