Summary of Complaint

This report is submitted in accordance with federal whistleblower protection guidelines to notify the Office of Inspector General of serious, ongoing violations of federal Grant and Per Diem (GPD) program regulations by the New York City Department of Homeless Services (DHS) and its contracted nonprofit provider, the Institute for Community Living (ICL). These violations affect VA-eligible veterans enrolled in the GPD transitional housing program at the Borden Avenue Veterans Residence in Queens, New York.

Evidence indicates that DHS and ICL are:

• Failing to provide required transportation services for GPD-enrolled veterans to access VA medical and mental health care.
• Conditioning transportation assistance on arbitrary income thresholds in direct violation of federal law.
• Continuing to accept federal GPD funding while operating in clear noncompliance with 38 CFR § 61.80(f).
• Contributing to missed VA medical appointments, program expulsions, and harmful disruptions in treatment for veterans.

Details of the Violation

Under 38 CFR § 61.80 (f), GPD grantees must “assist each veteran in obtaining health care benefits, including providing or arranging transportation to medical appointments as needed.” Despite this federal mandate, Borden Avenue:

• Does not operate a shuttle van or any form of arranged or reimbursable transportation for medical care.

• Provides MetroCards only to residents reporting less than $100/month in income—an arbitrary threshold not supported by any VA policy or statute.

• Requires veterans with income exceeding $100/month—including VA disability compensation or Social Security—to pay out-of-pocket to access required VA appointments.

These actions have can lead directly to:

• Missed primary and mental health appointments.

• Gaps in medication and substance use recovery.

• Case management noncompliance and program termination.

• Loss of access to VA care due to missed appointments, compounded by the VA’s 2024 reversal of its 2014 No-Show Leniency Policy.

Supporting Context and Background

The Borden Avenue Veterans Residence is one of the largest GPD-funded transitional facilities in the country, housing over 200 veterans. Its operation is jointly funded by the VA’s GPD program and city contracts administered by DHS. DHS receives millions in federal pass-through dollars to deliver these services. Despite the federal funding structure, there is no evidence of expenditures toward compliant transportation infrastructure such as:

• A regularly scheduled shuttle vehicle or contracted ride service.
• Stipends or reimbursement for private transit.
• Scheduled transportation to VA Medical Centers or CBOCs.

Multiple veterans have attested to the lack of transportation access. Documentation further shows that case managers discipline or discharge veterans for failing to attend appointments and outside resources they have no physical means of reaching.

Oversight Failure and Lack of Accountability

The New York City Council has not held hearings, issued subpoenas, or conducted contract audits regarding GPD performance. This ongoing lack of oversight allows DHS and ICL to remain noncompliant while continuing to draw down VA funds.

To date, there has been:

• No enforcement of 38 CFR § 61.80(f) by local officials.
• No adjustment to income-restricted transportation policies.
• No federal investigation into possible misuse of funds allocated for transportation services.
  

Requested Action

As a veterans’ advocate, I am formally requesting the U.S. Department of Veterans Affairs Office of Inspector General to:

1.     Immediately investigate the Borden Avenue Veterans Residence’s compliance with GPD transportation requirements.

2.     Audit DHS and ICL financial records related to GPD transportation allocations.

3.     Determine whether federal GPD funds have been misused or diverted away from required services.

4.     Review disciplinary actions taken against veterans who missed medical appointments due to lack of transportation.

Enforce federal corrective measures or refer the case for prosecution if fraud or misuse is found.

Conclusion

This disclosure is made in good faith to report an abuse of public resources and to protect the rights and health of VA-eligible veterans entrusted to federally funded programs. The conduct described constitutes a breach of federal regulation, ethical duty, and public trust.

Veterans deserve lawful, timely access to the care they earned. Transportation is not optional—it is a federally mandated obligation.

Related Resources:

• 38 CFR § 61.80 – GPD Regulations Requiring Transportation
• VA GPD Program Overview
• ICL Transitional Housing
• NYC DHS Veterans Services
• Printable pdf - VAOIG Complaint - Transportation

Contact Information:
Timothy Pena
Veterans Advocate and Founder

Veterans Justice Project, LLC
tim.pena@outlook.com

(602) 663‑6456
New York, NY 10001