Additional Controls Are Needed to Improve the Reliability of Grant and Per Diem Program Data

Date Issued: 9/18/2024

Report Number: 23-02610-226

Topics:  Clinical Care Services Operations

Report to the Oversight Committee on the State of Transitional Housing for Veterans in New York City

Prepared by: Timothy Pena

February 28, 2025

Introduction

Homelessness remains a significant issue among veterans in New York City, despite federal and state efforts to provide transitional housing and supportive services. The Grant and Per Diem (GPD) program, a federally funded initiative, is intended to provide temporary housing and essential services to homeless veterans. However, systemic inefficiencies, funding gaps, and a lack of interagency coordination have resulted in prolonged homelessness and inadequate living conditions for many veterans.

This report outlines the current challenges in veteran transitional housing, examines existing GPD eligibility and operational criteria, and provides recommendations for improving the housing and service structure to ensure veterans receive the support they deserve.

Current Challenges

1. Overcrowded and Unsafe Facilities
2. Facilities such as the Borden Avenue Veterans’ Residence (BAVR) suffer from overcrowding, violence, and inadequate access to medical and mental health services.
3. Veterans report substandard living conditions, including lack of nutritious food and poor sanitation.
4. A lack of security and supervision has led to an increase in overdoses and medical emergencies.
5. Lack of Coordination Among Agencies
6. The NYC Department of Veterans’ Services (NYCDVS), the Department of Homeless Services (DHS), and the VA do not effectively coordinate their efforts.
7. Veterans face long delays in processing HUD-VASH and CityFHEPS vouchers, which extend their stay in transitional housing and prevent movement into permanent housing.
8. Insufficient Case Management and Support Services
9. The shortage of case managers leads to inadequate assistance in obtaining permanent housing and accessing benefits.
10. Veterans experience difficulty in securing employment, enrolling in education, and receiving substance abuse treatment.
11. Misclassification of Transitional Housing Programs
12. Despite being federally recognized as a transitional housing program, NYC agencies refuse to categorize GPD programs as such, limiting the supportive services available to veterans.
13. This misclassification results in veterans being discharged from shelters without follow-up care or assistance in securing stable housing.

GPD Program Overview and Eligibility

The GPD program is a VA-funded initiative providing transitional housing and supportive services to veterans experiencing homelessness.

1. Eligibility Requirements:
2. Veterans must have served in the U.S. military and been discharged under conditions other than dishonorable.
3. Must be homeless as defined by the McKinney-Vento Homeless Assistance Act.
4. Must require transitional housing and support to obtain permanent housing.
5. Some programs prioritize veterans with mental health issues, substance use disorders, or other special needs.
6. Types of Grants and Services:
7. Transitional Housing Grants – Provide funding for temporary housing with supportive services.
8. Per Diem Grants – Reimburse grantees for the cost of care provided to veterans.
9. Special Needs Grants – Address the needs of specific populations such as elderly or disabled veterans.
10. Case Management Grants – Help veterans transition from homelessness to permanent housing.

Recommendations for Improvement

1. Improve Interagency Collaboration
2. Establish a centralized case management system to track veteran progress across NYCDVS, DHS, and VA services.
3. Implement a standardized process for expedited approval of HUD-VASH and CityFHEPS vouchers.
4. Expand Housing and Funding Options
5. Allow veterans to access CityFHEPS vouchers independently to secure permanent housing more quickly.
6. Permit case managers in CityFHEPS programs to process HUD-VASH vouchers, streamlining housing access.
7. Create stipend work programs for shelter residents to perform maintenance and repairs on transitional housing facilities.
8. Allow apartment managers to combine vouchers for veteran roommates to increase housing options.
9. Enhance Case Management and Support Services
10. Increase funding for case management positions to ensure all veterans receive personalized housing assistance.
11. Establish specialized teams to assist with documentation and application processing to reduce bureaucratic delays.
12. Provide comprehensive mental health and substance abuse services tailored to veterans’ unique needs.
13. Ensure Safe and Dignified Housing Conditions
14. Mandate regular inspections of GPD-funded facilities to ensure compliance with safety and hygiene standards.
15. Enforce policies that provide a drug-free and secure environment within transitional housing.
16. Require reporting and accountability measures for deaths and medical emergencies occurring in transitional housing.
17. Address Misclassification of Transitional Housing Programs
18. Require NYCDVS and DHS to recognize GPD programs as transitional housing and provide corresponding services.
19. Implement follow-up care for veterans discharged from shelters to ensure continued access to services and housing assistance.

Conclusion New York City’s veteran homeless population continues to suffer due to administrative inefficiencies, lack of coordination, and inadequate funding. By implementing the recommended reforms, the city can better serve its veteran community, ensuring they receive the necessary support to transition into stable housing and lead dignified lives. The oversight committee must take urgent action to address these challenges and hold agencies accountable for their role in supporting those who have served our country.

Report on the Criteria for the Grant and Per Diem (GPD) Program and the Responsibility of the Department of Homeless Services (DHS) in Facilitating Compliance

Introduction

The Grant and Per Diem (GPD) Program, administered by the U.S. Department of Veterans Affairs (VA), is designed to support homeless veterans by providing transitional housing and supportive services. This program funds state, local, tribal governments, and nonprofit organizations to develop and operate housing and service centers for veterans experiencing homelessness​.

In New York City, the Department of Homeless Services (DHS) plays a critical role in facilitating the implementation and compliance of the GPD program. However, systemic inefficiencies and lack of coordination between DHS, VA, and other agencies have resulted in delays and failures in meeting the program’s objectives​. This report outlines the eligibility criteria for the GPD program and discusses the responsibilities of DHS in ensuring effective program execution.

I. Eligibility Criteria for the GPD Program

To qualify for the GPD program, veterans must meet specific requirements to ensure that the most vulnerable populations receive assistance. These requirements include:

1. Veteran Status

• Applicants must have served in the U.S. military and received a discharge other than dishonorable.
• Veterans from the Army, Navy, Air Force, Marines, and Coast Guard, including some Reserves and National Guard members, are eligible​.

2. Homelessness Definition

• Veterans must be experiencing homelessness as defined by the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302(a)).
• This includes those living on the streets, in shelters, abandoned buildings, vehicles, or other places not meant for human habitation​.

3. Need for Transitional Housing and Support Services

• The veteran must require temporary housing and supportive services to transition to permanent housing.
• Services provided include mental health counseling, substance abuse treatment, and case management​.

4. Program Participation Requirements

• Veterans must agree to participate in the supportive services provided.
• While sobriety is not a prerequisite, participation in mental health or substance abuse treatment is encouraged​.

5. Special Considerations

• Certain populations receive priority for services, including:
• Women veterans
• Frail elderly veterans
• Veterans with minor dependents
• Chronically mentally ill veterans
• Terminally ill veterans​.

II. Responsibility of the Department of Homeless Services (DHS)

DHS, in collaboration with the VA and NYC Department of Veterans Services (DVS), is responsible for ensuring proper facilitation, coordination, and compliance with the GPD program’s criteria. Despite receiving millions in funding, the program suffers from bureaucratic inefficiencies, leaving veterans in dangerous and unstable conditions​​.

1. Coordination with VA and Other Agencies

• DHS must work with the VA, NYC Department of Veterans Services (DVS), and HUD to streamline processes for housing placements.
• Lack of coordination results in delays in HUD-VASH voucher processing, leaving veterans stuck in shelters​.

2. Accountability for GPD Facilities

• DHS must ensure that GPD-funded facilities provide safe and supportive environments for veterans.
• Reports indicate that Borden Avenue Veterans’ Residence (BAVR), a central GPD facility in NYC, suffers from overcrowding, violence, and lack of staff support, highlighting DHS’s failure in oversight​​.

3. Oversight of Funding and Resource Allocation

• DHS is responsible for disbursing funds effectively to ensure veterans receive the services outlined in the GPD program.
• Despite an annual budget of $275 million, inconsistent data tracking and mismanagement prevent veterans from securing permanent housing​.

4. Expanding Housing Options

• DHS must support alternative housing solutions, such as:
• Transition-In-Place (TIP), allowing veterans to remain in stable housing after completing the program​.
• Expanding low-demand housing options for veterans who struggle with traditional settings​.

5. Ensuring Access to Supportive Services

• DHS should ensure that veterans have access to case managers, medical care, employment services, and mental health support​.
• Reports show that many veterans in NYC shelters lack access to nutritious food, medical care, and proper case management, failing the program’s intent​.

III. Recommendations for DHS to Improve GPD Implementation

To better fulfill its responsibilities and meet the criteria for the GPD program, DHS must adopt urgent reforms:

1. Improve Inter-Agency Coordination

• DHS, DVS, and VA must create a centralized system for tracking veterans' progress and reducing bureaucratic delays in voucher processing.

1. Increase Accountability and Oversight

• Establish independent monitoring teams to inspect GPD-funded facilities and ensure they meet safety, health, and service standards.
• Implement performance audits to track funding allocation and program effectiveness.

1. Expand Housing Solutions

• Increase investment in permanent supportive housing and Transition-In-Place (TIP) programs to reduce veteran homelessness.

1. Enhance Case Management and Support Services

• Hire more case managers to provide one-on-one support for veterans navigating the complex housing and benefits system.
• Strengthen access to mental health services, substance abuse treatment, and employment assistance.

1. Improve Conditions in GPD Facilities

• Ensure that GPD-funded shelters provide safe, clean, and supportive environments.
• Establish minimum standards for nutrition, medical care, and staff-to-resident ratios in all GPD shelters.

Conclusion

The Grant and Per Diem (GPD) program is a vital lifeline for homeless veterans, yet DHS’s failure to effectively implement and oversee the program has left many veterans in unsafe and unstable conditions. By improving coordination, accountability, and service delivery, DHS can ensure that veterans receive the housing and support they are entitled to. Immediate action is needed to prevent further delays, mismanagement, and neglect that continue to put veterans' lives at risk​​.

This report highlights the urgent need for DHS reforms to meet the criteria and intent of the GPD program. Without meaningful change, New York City’s homeless veterans will continue to suffer in a system that fails to support them.