9/25/2016

Grant and Per Diem Program: FAQ's - Homeless Veterans

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Grant and Per Diem Program : FAQ's

What is the difference between grants and per diem under this program?

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Answers
1. What is the difference between grants and per diem under this program?

Grants can be used for acquisition, renovation, or construction of a building that will
provide services for homeless Veterans. Grants can be considered capital funds. Per
Diem is paid by VA to help organizations defray operational costs. Most grant
awardees request per diem funding. Those entities that are not grant awardees need
to apply for per diem under a separate Notice of Fund Availability (NOFA). This is
sometimes referred to as the Per Diem Only NOFA.

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Grant and Per Diem Program: FAQ's - Homeless Veterans

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VA Inspector General: 1-800-4888244

2. Who is eligible to apply for grants?

Veterans Crisis Line: 1-800-2738255 Press 1

Non-profit organizations, state and local government agencies as well as Indian

Tribal governments that wish to start new programs to provide supportive housing or
supportive services for homeless Veterans. In addition, 75% of clients served in the
program must be Veterans.

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3. What can a grant be used for?

Grant funds may provide up to 65% of the cost to acquire, renovate, or construct
facilities that will be used to provide supportive housing (up to 24 months) and/or
service centers (offering services such as case management, vocational
development, crisis intervention, counseling, etc.) for homeless Veterans; and to
purchase vans in support of these programs. Grants may not be used for operational
costs, including salaries.

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4. When is the application deadline?

Applications will be due on the date specified in the Notice of Fund Availability (NOFA)
published in the Federal Register. You can check Federal Register publications on
the Internet at
http://www.gpoaccess.gov/fr/browse.html or you may contact the
Grant and Per Diem Program at (toll-free) 1-877-332-0334.

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5. We are already a new homeless program, can we use grant funds to expand?

It depends. If the original program was created after November 10, 1992 and the
expansion took place after November 1999 then you would be eligible to use grant
funds to expand your program.

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6. What is my Catalog of Federal Domestic Assistance (CDFA) Number?

This number is preprinted on the Standard Form 424 in block 10. For the Grant and
Per Diem Program this number is 64-024.

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7. What do I have to do to apply as a non-profit organization?

In order to be considered a non-profit organization you must have a non-profit status

designation given by the IRS. You must be a non-profit at the time of application.

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8. What counts as matching funds for grants?

Matching funds must be cash or cash equivalents. In-kind donations that are part of
the project are acceptable, such as donated architect's time, donated building
materials, donated building, etc. However, in-kind matches must be related to the
specific categories of renovation, acquisition, or construction for which your
organization is applying.

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9. Where a building is being purchased with a mortgage, and the applicant has equity
in the building, can the equity be used as part of the matching funds?

Possibly. If the applicant proposes to use VA funds to complete the purchase of a

building, the applicant must ensure that the mortgage contract allows the mortgage
to be pre-paid (e.g., paid in full at the time VA provides payment of the grant award).

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10. Can the grant funds be used to lease a building?

No. The one exception is a capital lease which is defined in the regulations at 38
CFR section 61.1.

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11. Can the grant funds be used to renovate or expand leased buildings?

No, unless the property is under a capital lease.

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12. Can grant funds be used to renovate or expand buildings on VA medical center
grounds, or other buildings owned by the VA?

Yes, but the grant awardee must be an eligible entity. VA facilities are not eligible to
receive this grant.

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13. Can grant funds be used to acquire, construct, or renovate homes or apartments
that will ultimately be turned over to the Veteran?

No. Ownership of property funded by the grant must remain with the public or nonprofit private entity who is awarded a grant.

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14. Can grant funds be used to pay the salaries, operating costs, overhead, etc.?

No. These costs are covered under the Per Diem component of the program.

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15. Who is eligible to apply for Per Diem payments?

Priority in awarding Per Diem funds goes to recipients of Grants. Non-Grant

programs may qualify if they meet these criteria: (1) at least 75%of those receiving
supportive services are Veterans, (2) provide supportive housing or a homeless
service center.

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16. What portion of operating costs will Per Diem payments cover?

Funding for services in conjunction with supportive housing is limited to the daily cost
of providing the services, minus other sources of revenue, up to a predetermined
amount. At this time, the maximum amount payable under per diem is $43.32. The
maximum hourly per diem rate for a service center not in connection with supportive

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housing is 1/8 the daily cost of care not to exceed the current VA State Home rate for
domiciliary care. Payment for a veteran in a service center will not exceed 8 hours in
any day.

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17. How does our agency apply for Per Diem?

If you are a grant recipient, your program that was created with grant funds will be
considered for per diem. There is no need to reapply. Program staff will review the
relevant portions of the original grant proposal. If your agency never received a grant
for the particular component of the program you would like per diem for, you must
apply in response to a separate Per Diem Only NOFA that will be published in the
Federal Register.

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18. Can Veterans be charged rent?

Veterans in supportive housing may be asked to pay rent if it does not exceed 30% of
the Veteran's monthly-adjusted income. In addition, reasonable fees may be charged
for services not paid for with Per Diem funds.

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19. What hints can you give about applying?

There is a strong emphasis on creating working relationships with the local VA

medical center facilities as well as networking and collaborating with other
community based organizations, so as to minimize duplication of services. There is
also an emphasis on developing programs in underserved areas.

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