HHAP – Indirect Cost Rate

Submitted by Zulima Lundy
Santa Ana, Anaheim/Orange County CoC

I reached out to California Interagency Council on Homelessness (Cal ICH) to ask for guidance regarding the allowable indirect cost rate for the Homeless Housing, Assistance and Prevention (HHAP) Program grants. Sharing with you below is the answer provided by Cal ICH:

The HHAP program does not have an indirect cost rate, it does however have a grant administration cap at 7%, but this only applies to costs associated with administering the grant, reporting, etc.; it does not apply to “staff or other costs directly related to implementing activities funded by the program allocation”.

For HHAP, there is no statutory restriction as to how a subrecipient charges for their services. It is permissible to include Indirect costs in HHAP subrecipient budgets, but we recommend that they align with the limit set for Grant Administration of 7%. Ultimately though, it is up to the grantee’s discretion on whether to approve the indirect cost rate or not.