38 C.F.R. § 61.30
(a) General. VA may provide per diem funds to offset operating costs for a program of supportive housing or services. VA may provide:
(c) Per diem only applicants. PDO awards to entities eligible to receive a capital grant must provide supportive housing or services to the homeless veteran population within 180 days after the date on the notification of award letter, or VA will terminate the PDO payments.
(Authority: 38 U.S.C. 501, 2012)