Frequently Asked Questions
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Is the restrictive covenant different for rehabilitation vs. new construction?
The required covenant is 20 years for rehabilitation and 30 years for new construction or acquisition of a property.
Can IST infrastructure funds be used to renovate master lease units for an IST population, and utilize supportive services provided by the housing subcontractor?
IST infrastructure funding is meant for purchasing, building, or renovating facilities. If no infrastructure is needed, funding from a Diversion or CBR service contract with
Are grantees required to always keep facility beds full?
Grantees do not have to keep facility beds full but can only invoice DSH for days that beds are occupied by a diversion or CBR
Can the grantee sub-contract with a service provider?
A grantee may subcontract with a service provider if the grantee contracts with DSH for diversion or CBR services.
Can a grantee contract with a builder who owns the property?
Grantees may partner with builders. If the builder maintains ownership of the building, they must agree to the restricted covenant with DSH.
Is there any flexibility in the 20 and 30-year covenants?
The 20-year covenant for rehabilitation and 30-year covenant for new properties cannot be waived or altered by the applicant. In the event that the service