REPORT TO THE NEW YORK CITY COUNCIL

Committee on Veterans (2026)

Part 4 — Financial Analysis and Public Accountability


Key Findings

  • The Borden Avenue Veterans' Residence represents a significant investment of taxpayer resources through federal and municipal funding.
  • The Institute for Community Living (ICL), the operator of Borden Avenue, reported approximately $214 million in annual revenue, while operating New York City's only federally funded VA Grant and Per Diem (GPD) transitional housing program.
  • The FY2024 Borden Avenue budget identifies significant spending for facility operations, security, maintenance, administration, and behavioral health services.
  • Contracted security accounted for approximately $1.08 million, exceeding several categories directly associated with veteran transition services.
  • The FY2024 budget identified:
  • $539,473 for food
  • $32,379 for client transportation
  • $0 for recreation
  • $0 for client stipends
  • $0 identified for kitchen personnel
  • CEO Joann (Jody) Rudin's reported annual salary of approximately $515,814 is nearly equivalent to the entire yearly food budget allocated for veterans residing at Borden Avenue.
  • Emergency-response activity creates additional taxpayer costs beyond the facility's operating budget, involving police, EMS, hospitals, courts, and correctional systems.

 

Financial Priorities and the Purpose of the GPD Program

The Department of Veterans Affairs Grant and Per Diem Program was created as a transitional housing model, not simply an emergency shelter system. The purpose of the program is to provide homeless veterans with the services necessary to transition into permanent housing through case management, healthcare coordination, employment assistance, transportation, independent living preparation, and community reintegration.

Financial accountability must therefore be measured not only by whether funds were spent, but whether spending priorities directly support successful veteran outcomes.

The FY2024 Department of Homeless Services budget documents for Borden Avenue identify millions of dollars supporting operations, including personnel, maintenance, administration, counseling, contracted services, and behavioral health adjustments. These expenses reflect the substantial cost of operating a large congregate facility serving veterans with complex needs.

However, when compared to the stated goals of the GPD program, the allocation of resources raises concerns regarding the balance between maintaining the facility and preparing veterans for independent living.

 

Institute for Community Living Financial Profile

The Borden Avenue Veterans' Residence is operated by the Institute for Community Living, one of New York's largest nonprofit behavioral health organizations.

Public financial records identify ICL as a nonprofit organization with approximately $214 million in annual revenue, more than $211 million in expenses, and substantial organizational assets. CEO Joann (Jody) Rudin received reported compensation that included approximately $515,814 in salary and additional compensation bringing total compensation above $556,000.

The report compares this figure with Borden Avenue's FY2024 food budget of $539,473, noting that the CEO's yearly salary is approximately equal to the entire annual food allocation for hundreds of veterans residing at the facility.

This comparison is presented alongside veteran concerns regarding nutritional quality, limited transportation availability, and limited access to the full range of Veterans Affairs resources intended under the GPD program.

 

Security Costs and Community Impact

A major financial issue identified in the report involves the relationship between security spending and emergency-response costs.

The FY2024 budget allocated approximately $1,088,422 for contracted security. Despite this investment, emergency-response records reviewed for the report identified approximately 1,365 emergency calls between August 2024 and December 2025. These incidents included ambulance responses, emotionally disturbed person calls, violent EDP incidents, assaults, overdoses, injuries, disputes, and other emergencies.

The financial impact extends beyond the Borden Avenue operating budget. Each emergency response requires additional taxpayer-funded resources, including:

  • NYPD officers
  • FDNY Emergency Medical Services
  • Emergency room treatment
  • Psychiatric evaluations
  • Court personnel
  • Prosecutors and public defenders
  • Correctional resources

The cumulative impact represents millions of dollars in additional public expenditures that are not reflected in the facility's annual budget.

 

Successful Transitions and Long-Term Costs

The effectiveness of a GPD program is ultimately measured by whether veterans successfully transition into permanent housing and avoid returning to homelessness.

The report identifies concerns regarding Borden Avenue's reported approximately 60% successful exit rate, compared with other GPD models such as Phoenix's MANA House, which reported successful exits approaching 90%.

Approximately 20% of Borden Avenue participants reportedly leave without a clearly identified successful outcome, creating concerns that veterans may cycle back into homelessness, emergency shelters, hospitals, or the criminal justice system.

The VA Office of Inspector General has previously emphasized that accurate exit data is essential because unsuccessful transitions increase the risk of veterans returning to homelessness and prevent agencies from properly measuring program effectiveness.

 

Conclusion

The financial review of Borden Avenue demonstrates that evaluating the program requires examining both direct operating expenses and the broader costs placed upon the community.

A successful transitional housing program should reduce long-term taxpayer costs by preparing veterans for independence, improving access to healthcare, supporting employment, and creating stable permanent housing outcomes.

The report concludes that continued oversight of financial priorities, emergency-response costs, and successful housing outcomes is necessary to determine whether New York City's only federally funded VA Grant and Per Diem program is meeting its intended purpose.