REPORT TO THE NEW YORK CITY COUNCIL

BORDEN AVENUE VETERANS TRANSITIONAL PROGRAM

REPORT TO THE NEW YORK CITY COUNCIL

Committee on Veterans Affairs


SUBJECT:


Systemic Failures, Civil Rights Violations, and Misuse of Federal Funds at the Borden Avenue Veterans’ Residence


SUBMITTED BY:


Timothy Pena
Navy Veteran
Founder, Veterans Justice Project
Author, A Tale of Two Transitional Programs


EXECUTIVE SUMMARY

This report documents systemic failures in the operation of the Borden Avenue Veterans’ Residence, a facility operated by the New York City Department of Homeless Services (DHS) in partnership with the Institute for Community Living (ICL), while receiving federal funding through the U.S. Department of Veterans Affairs Grant & Per Diem (GPD) Transitional Housing Program.

The findings establish that Borden Avenue is operating a VA GPD program inside a MICA (Mentally Ill / Chemical Abuse)–designated shelter, resulting in coerced disclosure of protected health information, discrimination against veterans without diagnoses, unsafe living conditions, obstruction of housing placement, and significant financial discrepancies. Oversight mechanisms at both the City and federal levels have failed to correct these conditions despite years of documented concerns.


I. BACKGROUND AND PURPOSE

The VA Grant & Per Diem program was established under Public Law 109-461 to provide temporary, supportive, transitional housing for VA-eligible veterans experiencing homelessness, with the explicit goal of rapid transition into permanent housing.

The GPD program is not a general homeless shelter and not a mental health treatment program. Participation does not require a mental health or substance use diagnosis, nor does it require disclosure of protected health information. Supportive services are intended to be voluntary, confidential, and housing-focused.

The New York City Council has a responsibility to ensure that:

  • City agencies comply with federal program requirements
  • Veterans are not subjected to unsafe or discriminatory conditions
  • Public funds are used for their intended purpose
  • Oversight mechanisms function effectively

This report evaluates whether the Borden Avenue Veterans’ Residence complies with those obligations.


II. MICA DESIGNATION AND DISCRIMINATORY PRACTICES

A. MICA Shelter Designation

Borden Avenue is designated by NYC DHS as a MICA shelter, intended for individuals diagnosed with serious mental illness and/or chemical abuse. This designation is fundamentally incompatible with the VA GPD program, which serves a broad population of veterans experiencing homelessness regardless of diagnosis.

B. Forced Disclosure of Protected Health Information

Veterans seeking enrollment or continuation in the GPD program at Borden Avenue are required—explicitly or implicitly—to disclose mental health diagnoses or substance use histories to non-medical DHS staff or contractors. This disclosure occurs outside a clinical setting and without lawful necessity.

These practices raise serious concerns under HIPAA privacy protections, informed consent standards, and the improper handling of protected health information by non-medical personnel.

C. Discrimination Against Veterans Without Diagnoses

Veterans without a mental health or substance use diagnosis are routinely:

  • Treated as ineligible or inappropriate for services
  • Denied meaningful access to housing assistance
  • Discouraged, transferred, or removed from participation

This constitutes discrimination based on health status and conflicts with federal disability and equal protection principles. The absence of a diagnosis is treated as a barrier rather than a neutral factor, effectively punishing veterans who do not meet MICA criteria.


III. SAFETY AND LIVING CONDITIONS

Veterans at Borden Avenue are housed in a congregate shelter environment characterized by:

  • Active drug trafficking
  • Co-housing with violent offenders and registered sex offenders
  • Open, gym-style showers with no privacy
  • Bathrooms routinely used for illicit activity
  • Areas lacking adequate security monitoring

Despite over $1 million annually spent on contracted security, incidents of assaults, overdoses, and deaths have been repeatedly documented. These conditions are inconsistent with a transitional housing program and exacerbate PTSD, TBI, and anxiety among veterans.


IV. FAILURE TO PROVIDE HOUSING-FOCUSED SERVICES

Housing placement is the primary statutory objective of the VA GPD program.

At Borden Avenue:

  • Housing meetings lack written materials, instruction, or follow-up
  • Internet and library access are limited or unavailable
  • Veterans are told housing is their personal responsibility without support
  • Removal from the GPD program results in loss of HUD-VASH eligibility, forcing veterans to restart the process

These practices constitute systemic obstruction of housing outcomes, contrary to federal program intent.


V. FINANCIAL FINDINGS AND DISCREPANCIES

A. GPD Funding Allocation

  • VA GPD rate: $68.64 per veteran per day
  • Funded capacity: 154 veterans
  • Average actual enrollment: approximately 116 veterans

This discrepancy results in nearly $1 million annually in unaccounted federal funds.

B. DHS Budget Concerns

Budget documents indicate:

  • Kitchen budgets without functioning kitchens
  • Food budgets that do not translate into meals for residents
  • Security expenditures far exceeding measurable outcomes
  • DHS budget summaries duplicated year after year despite changing enrollment

These findings warrant independent forensic financial review.


VI. FAILURE OF OVERSIGHT AND ACCOUNTABILITY

Despite longstanding documentation:

  • DHS continues to receive federal and City funding
  • VA liaisons have not enforced GPD compliance
  • No publicly disclosed VA OIG investigation exists
  • Veterans who file complaints or testify face retaliation or transfer

Oversight systems designed to protect veterans are not functioning effectively.


VII. POLICY CONTEXT: “PUNISHMENT CALLED CARE”

New York City has increasingly framed prolonged confinement of homeless veterans—particularly in MICA-designated shelters—as necessary “mental health stabilization.” In practice, this stabilization functions as containment rather than care.

Veterans experience:

  • Isolation in violent, secluded environments
  • Denial of transitional housing resources
  • Discipline and sanctions instead of support

Non-veteran caseworkers frequently justify withholding services under a philosophy described as “tough love.” This approach punishes veterans for trauma-related symptoms and has no basis in trauma-informed care.

A closed-loop system emerges in which veterans cannot leave shelters without services, yet services are withheld because veterans remain “unstable.” Financial incentives reward occupancy and length of stay rather than successful transitions.


VIII. IMPACT ON VETERANS

Veterans experience:

  • Repeated program resets
  • Loss of VA housing eligibility
  • Psychological harm from unsafe conditions
  • Prolonged homelessness despite federal funding intended to prevent it

Many veterans choose street homelessness over placement at Borden Avenue due to safety concerns.


IX. FINDINGS SUMMARY

The New York City Council should note that:

  1. A VA GPD program is operated inside a MICA-designated shelter
  2. Veterans are coerced into disclosing protected health information
  3. Veterans without diagnoses are discriminated against
  4. Living conditions are unsafe and destabilizing
  5. Housing placement is obstructed rather than facilitated
  6. Federal funds appear misaligned with services delivered
  7. Oversight mechanisms have failed at multiple levels


X. RECOMMENDATIONS TO THE NYC CITY COUNCIL

The Council should consider:

  1. Immediate oversight hearings with DHS, ICL, and VA representatives
  2. Independent forensic audit of GPD funds administered by DHS
  3. Civil rights review of MICA designation and disclosure practices
  4. Separation of VA GPD veterans from general DHS shelter populations
  5. Mandatory reporting of veteran housing outcomes
  6. Whistleblower protections for veterans and staff


XI. CONCLUSION

Borden Avenue is not operating as a transitional housing program consistent with the intent of Congress or the expectations of the public. The current structure endangers veterans, violates privacy and civil rights, undermines public trust, and exposes New York City to legal and financial risk.


Veterans deserve safe, dignified, housing-focused transitional care—not containment within a punitive shelter system.

 

Printable PDF: Report to the New York City Council / Borden Avenue