Donations Diverted: City Faces Scrutiny Over Borden Avenue Veterans Residence

Timothy Pena • October 26, 2025

Despite millions in federal funding and steady community support, veterans at Borden Avenue report missing donations, a closed kitchen, and retaliation for speaking out.

New York, NY -- The Borden Avenue Veterans Residence (BAVR) in Long Island City has long been billed as New York City’s only federally funded transitional program for homeless veterans. Yet recent controversies show that while community generosity flows in, those donations are often diverted, restricted, or never reach the veterans they were intended for.
The issue came to light again this year as Council Member Robert Holden, chair of the City Council’s Committee on Veterans, recounted how donations he and the Vietnam Veterans of America Chapter 32 had collected—valued at nearly $10,000 in coats, gloves, socks, and jackets—were delivered to the shelter. But while the goods were allowed in, the donors themselves were told they could not distribute them unless they signed disclaimers, which functioned like non-disclosure agreements (NDAs). The VVA veterans refused, saying it was insulting to require secrecy just to hand out socks, and they were prevented from entering.

Holden signed the NDA himself, gaining entry but effectively silencing himself from disclosing any abuses or unsafe conditions he may have observed inside. For veterans and advocates, this decision was not just accommodation but complicity—especially since Holden had already been made aware of problems at Borden Avenue long before the January 2025 hearing where he raised his objections.

“This is disturbing,” Holden said at that hearing. “DHS is circling the wagons.” Despite the remarks, he has not followed up with subpoenas, oversight hearings, or action. Veterans who appealed to him for help have fallen on deaf ears. This is an issue has infected the entirety of the Committee on Veterans. And with Holden now at the end of his term limits on the City Council, it is doubtful that little will be accomplished before he leaves office.

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Donations denied and diverted



According to a federal lawsuit filed against the Department of Homeless Services (DHS) and its nonprofit contractor, the Institute for Community Living (ICL), donations at Borden Avenue are frequently pilfered by staff or rerouted to other shelters. Current residents report that they have personally seen expensive shoes, winter coats, and other high-quality items stored in the facility but never distributed to those living there. Instead, veterans are left with little more than the clothes on their backs and must beg caseworkers for basic items like socks or t-shirts.


Barriers extend beyond disclaimers. Outside organizations are generally prohibited from entering Borden Avenue. One major donation event intended for Borden Avenue veterans was instead relocated to ICL’s Nevins Street Housing in Brooklyn. The main donor, unwilling to see veterans denied entirely, arranged transportation for Borden Avenue residents to attend the event in another borough—a workaround that underscored the City’s refusal to allow community groups direct access to veterans on site.


Even when food donations are made, residents say they never see the results. Community for a Cause, a Queens nonprofit, has delivered food for Borden Avenue in past years. But because the facility’s kitchen is rented out for use as a culinary school, it is doubtful that the food was ever prepared for residents. At least, instead of the cold green beans and rice they are usually served, the veterans report being served the same limited meals the other shelters receive year-round through DHS contracts.

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Fear of retaliation


Veterans say speaking up comes with consequences. Residents describe a climate of fear in which those who complain about missing donations, unsafe conditions, or lack of services risk retaliation from staff. Retaliation has included delays in HUD/VASH housing processing, violent confrontations, and transfers to less stable shelters. The use of NDAs against donors has reinforced that atmosphere of secrecy, sending the message that transparency is a liability rather than a requirement.

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A violation of federal standards


Advocates argue that these restrictions are not simply bureaucratic mishaps but violations of federal law. The U.S. Department of Veterans Affairs’ Grant & Per Diem (GPD) program, which provides nearly $4 million annually to DHS for Borden Avenue, requires facilities to foster community engagement as part of transitional services. That means volunteers, donors, and local organizations should be welcomed, not blocked. By barring outside groups, denying residents the use of a functioning kitchen, withholding donated items, and creating a climate of intimidation, DHS and ICL are undermining one of the program’s core mandates.

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Fear of retaliation


Veterans say speaking up comes with consequences. Residents describe a climate of fear in which those who complain about missing donations, unsafe conditions, or lack of services risk retaliation from staff. Retaliation has included delays in HUD/VASH housing processing, violent confrontations, and transfers to less stable shelters. The use of NDAs against donors has reinforced that atmosphere of secrecy, sending the message that transparency is a liability rather than a requirement.

________________________________________

A violation of federal standards


Advocates argue that these restrictions are not simply bureaucratic mishaps but violations of federal law. The U.S. Department of Veterans Affairs’ Grant & Per Diem (GPD) program, which provides nearly $4 million annually to DHS for Borden Avenue, requires facilities to foster community engagement as part of transitional services. That means volunteers, donors, and local organizations should be welcomed, not blocked. By barring outside groups, denying residents the use of a functioning kitchen, withholding donated items, and creating a climate of intimidation, DHS and ICL are undermining one of the program’s core mandates.

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No veterans on the Council


The lack of oversight is compounded by a lack of representation. Holden himself is not a veteran, and there are no veterans currently serving on the New York City Council. Critics say this leaves the body charged with veterans’ affairs blind to the lived experiences of those it is supposed to represent. Without veterans in positions of authority, policy is shaped by individuals who do not fully understand the impact of secrecy, neglect, and retaliation on those who served.

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Another winter looms


As another winter begins, community groups are once again preparing to collect coats, food, and supplies for Borden Avenue. But with DHS’s restrictions still in place, there is no guarantee that veterans will actually receive them. The pattern of diversion, intimidation, and silence threatens to repeat itself, leaving veterans out in the cold while donations and federal dollars flow elsewhere.


Veterans and advocates insist the City Council must act. They want hearings, subpoenas, and accountability for how donations—and millions in taxpayer and federal dollars—are being managed. Without that intervention, the city’s only veteran-specific shelter will remain a place where community generosity is wasted, federal mandates are ignored, and those who speak up are punished.


Printable pdf: donations_20251026

Timothy Pena is a service-connected disabled Navy veteran living with PTSD and has chronicled his transition into the New York City while also advocating for better treatment of other veterans in transition. He has written extensively about his experiences with mental health and suicide ideation, homelessness, and the judicial system. Because of his mental health struggles, Pena often relies on ChatGPT for his writing but maintains all his opinions are his.