New York City Is Losing Its Only Veterans Affairs Transitional Program for Homeless Veterans

Timothy Pena • September 13, 2026

Borden Avenue may remain open, but DHS reportedly rejected a VA offer to preserve 40 federally funded transitional beds for homeless veterans.


New York City's Borden Avenue Veterans’ Residence may remain open, but the federal veterans program operating within it is disappearing.


According to information provided to Veterans Justice Project, the U.S. Department of Veterans Affairs offered to continue funding 40 Grant and Per Diem transitional beds in New York City, a substantial reduction from the 154 GPD beds currently authorized at Borden Avenue. The New York City Department of Homeless Services reportedly declined the offer.


If no other provider assumes the program, the result is effectively 154 VA transitional beds reduced to zero.

The reported 40-bed offer and DHS decision have not yet been independently confirmed through publicly released correspondence. Veterans Justice Project is calling on DHS and the VA to release the documents explaining the decision.


The distinction between GPD and an ordinary shelter bed is important. Grant and Per Diem is a transitional program, designed to provide temporary housing while connecting homeless veterans with the larger VA system. Depending upon individual need and eligibility, that can include VA healthcare and mental-health treatment, HUD-VASH permanent housing, education and employment resources, disability benefits and other veterans programs.


Borden Avenue itself does not necessarily close when GPD ends. The Long Island City facility can continue operating as a DHS shelter. What disappears is the federally supported transitional pathway intended specifically for veterans.


The decision follows years of allegations involving violence, drugs, overdoses, assaults, inadequate food, poor transportation and questionable oversight at Borden Avenue. NYPD records obtained through FOIL documented approximately 1,365 emergency-service events associated with the address between August 2024 and December 2025, while separate records documented dozens of arrests over a period exceeding three years.

Veterans Justice Project has also questioned Borden's use of a MICA—Mentally Ill/Chemically Addicted—model, arguing that New York City's only GPD program became centered on mental-health or substance-use diagnoses rather than simply providing transitional housing to homeless veterans. Women veterans, veterans with families and veterans who did not fit that model have lacked an equivalent GPD transitional option and can instead be routed through the City's general shelter system.


The financial structure raises additional questions. The historical VA GPD rate associated with Borden was approximately $68.64 per veteran per day, while published City figures have placed a standard non-emergency DHS single-adult shelter bed at approximately $136 per day. The rates represent different funding structures, but the comparison raises an obvious question: why reject federal assistance for veteran transitional housing while continuing to pay to shelter veterans elsewhere?


A forthcoming Veterans Justice Project report will also examine ICL's financial relationship with Borden Avenue, including approximately $2.22 million budgeted for counseling and a Mental Health Services Adjustment, compared with roughly $539,000 for food and only $32,000 for client transportation. The report will examine whether the financial structure creates incentives to provide behavioral-health services within the DHS/ICL network rather than transporting eligible veterans to the VA system.


The reported reduction to 40 beds could have provided an opportunity to rebuild GPD as a smaller, safer and more accountable transitional program. Instead, New York City may soon have none. Borden Avenue can remain a shelter. The veterans will remain.


What disappears is the VA transitional program intended to help them leave homelessness behind.


For more information on Borden Avenue, click HERE.


GPD Program to End printable pdf (2 pages)

Timothy Pena is a service-connected disabled Navy veteran for PTSD and has written about his experiences with mental health, homelessness, and the judicial system. Pena initially visited NYC to collaborate on a documentary for veteran suicide but decided to stay after realizing he would rather be homeless in NYC than dead in Phoenix.