M21-12, Table of Contents, Specially Adapted Housing Grant Processing Procedures, Loan

Department of Veterans Affairs, M26-12, Revised

Table of Contents

Specially Adapted Housing Grant Processing Procedures, Loan Guaranty Operations for Regional Offices

Chapter 1: Specially Adapted Housing Application/Eligibility

Overview...... 1-1

1.VA Form 26-4555...... 1-2

2.Methods of Submitting Application...... 1-3

3.Grant Programs and Eligibility Requirements...... 1-4

.4.Governing Law...... 1-7

5.Rating Decisions...... 1-8

6.VA Fiduciary/Financial Incompetency...... 1-10

7.Outreach to Veterans Not Yet Rated...... 1-12

Chapter 2: Pre-Grant Approval: Initial Interview

Overview...... 2-1

1.General Information about the Initial Interview...... 2-2

2.Preparation for the Initial Interview...... 2-5

3.Completing the Initial Interview...... 2-6

4.Documenting the Initial Interview and Follow Up...... 2-10

Chapter 3: Pre-Grant Approval: Feasibility and Suitability

Overview...... 3-1

1.General Information about Feasibility and Suitability...... 3-2

2.Medical Feasibility...... 3-4

3.Financial Feasibility...... 3-5

4.Property Suitability...... 3-9

5.Determinations of Non-Feasibility...... 3-12

Chapter 4: Getting to Conditional Approval

Overview...... 4-1

1.What is Conditional Approval?...... 4-2

2.Disability Requirements...... 4-3

3.Feasibility and Suitability Requirements...... 4-4

4.Use and Dollar Limitations...... 4-5

5.Conditional Approval and Preconstruction Costs...... 4-6

Continued on next page

Table of Contents, Continued

Chapter 5: Getting to Final Approval

Overview...... 5-1

1.Ownership...... 5-2

2.Veterans Mortgage Life Insurance (VMLI)...... 5-5

3.Proposed Adaptations and Waivers...... 5-8

4.Bids and Waivers...... 5-10

5.Contracts...... 5-13

6.Plans and Specifications...... 5-15

7.Cost Analysis...... 5-23

8.Required Documents for Other Situations...... 5-27

9.Regional Loan Center (RLC) Requirements for Grant Disapproval...... 5-30

Chapter 6: SAH Agent’s Responsibility during Construction and Handling Disputes/Complaints

Overview...... 6-1

1.Project Management Responsibilities...... 6-2

2.Change Orders...... 6-4

3.Dispute Resolution...... 6-6

Chapter 7: The Compliance Inspection and Review of Compliance Inspection Reports

Overview...... 7-1

1.Compliance Inspections and Compliance Inspection Reports, VA Form 26-18397-2

2.Compliance Inspector Qualifications...... 7-3

3.Inspection Schedules...... 7-5

4.Assigning the VA Compliance Inspector...... 7-6

5.Requirements of the Compliance Inspection...... 7-8

6.Reviewing VA Form 26-1839, Compliance Inspection Report...... 7-10

7.Handling Non-Compliant Inspections...... 7-11

Chapter 8: Escrows, Escrow Agents, and the Authorization of Funds

Overview...... 8-1

1.Escrow and When Escrow is Required...... 8-2

2.Selection of the Escrow Agent...... 8-4

3.Responsibilities of the Escrow Agent...... 8-6

4.Authorization to Disburse Funds When VA is Not the Escrow Agent...... 8-8

5.Processing Procedures When VA is the Escrow Agent...... 8-10

Chapter 9: Supplemental Grants

Overview...... 9-1

1.General Information on Supplemental Grants...... 9-2

2.Approving a Supplemental Grant...... 9-3

3.Impact of Supplemental Funds on the Disbursement Schedule ...... 9-4

Continued on next page

Table of Contents, Continued

Chapter 10: SAH Agent Final Field Review

Overview...... 10-1

1.General Information about the SAH Agent Final Field Review...... 10-2

2.Final Field Review Requirements...... 10-3

3.Following up with the Veteran, Builder and Compliance Inspector...... 10-4

Chapter 11: Final Accounting

Overview...... 11-1

1.Process for Final Accounting...... 11-2

2.Obtaining the Supporting Documentation and Providing Required Exhibits to

Close the File...... 11-3

3.Requirements for Closing Final Accounting ...... 11-4

Chapter 12: Death Cases

Overview...... 12-1

1.General Information about Death Cases...... 12-2

2.Next of Kin Notification...... 12-3

3.Processing Death Cases when there is Conditional Approval and Outstanding

Expenses are Claimed...... 12-4

4.Processing Death Cases with an Approved Grant and Before Construction Has

Begun...... 12-7

5.Processing Death Cases with an Approved Grant and After Construction Has

Begun...... 12-9

Appendix A: Specially Adapted Housing (SAH) Minimum Property Requirements and Recommended Adaptations

Overview...... A-1

1.General Information about SAHMinimum Property Requirements...... A-2

2.SAH Minimum Property Requirements: Ingress and Egress Requirements....A-5

3. SAH Minimum Property Requirements: Primary Bathroom Requirements....A-9

4. SAH Minimum Property Requirements: Primary Bedroom/Sleeping Area

Requirements...... A-11

5.Minimum Property Requirements for Condominiums and Townhouses...... A-12

6.General Information about SAH Recommended Adaptations...... A-14

7.SAH Recommended Adaptations...... A-18

8.Special Equipment...... A-23

9.Recommended Adaptations for Burn Injuries and Respiratory Related Injuries..A-24

Continued on next page

Table of Contents, Continued

Appendix B: Recommended Adaptations for Special Housing Adaptation (SHA) Grants

Overview...... B-1

1.General Information about SHA Recommended Adaptations...... B-2

2.Recommended Adaptations for Blindness in Both Eyes with a 20/200 Visual

Acuity or Less...... B-4

3.Recommended Adaptations for Loss, or Loss of Use, of Both Hands...... B-7

4.Recommended Adaptations for Burn Injuries and Respiratory Related Injuries..B-8

5.Recommended Adaptations for Secondary Disabilities...... B-9

Appendix C: Specially Adapted Housing (SAH) Plan Types and Grant Calculations

Overview...... C-1

1.General Information About SAH Plan Types...... C-2

2.Plan 1: Description and Calculations...... C-3

3.Plan 2: Description and Calculations...... C-5

4.Plan 3: Description and Calculations...... C-7

5.Plan 4: Description and Calculations...... C-10

Appendix D: Special Housing Adaptations (SHA) Plan Types and Grant Calculations

Overview...... D-1

1.General Information About SHA Plan Types...... D-2

2.Plan 1: Description and Calculations...... D-3

3.Plan 2: Description and Calculations...... D-4

4.Plan 3: Description and Calculations...... D-6

5.Plan 4: Description and Calculations...... D-7

6.Plan 5: Description and Calculations...... D-9

Appendix E: Temporary Residence Adaptations (TRA) Grant

Overview...... E-1

1.TRA Grant...... E-2

Appendix F: Timeliness Requirements

Overview...... F-1

Appendix G: References

Overview...... G-1

1.United States Code (statute)...... G-2

2.Code of Federal Regulations (regulations)...... G-3