Can BHBH Program funds be used to cover administrative or indirect costs? If so, how do we calculate indirect costs?

Subtopic: Budget/Allowable Use

Administrative costs are allowable in Track 2, and are limited to 10 percent of the total start-up infrastructure funding request. Track 1 indirect costs are limited to 10 percent of modified direct costs. For more information on allowable BHBH Program activities and preparing the budget, see Attachment C and Attachment E.

Indirect costs are defined as “general management costs necessary for the general operation of the agency, such as accounting, budgeting, payroll preparation, personnel services, purchasing, legal fees, and centralized data processing” (RFA page 22). The indirect rate is calculated based on the program costs and excludes the pass-through funding categories (rental assistance, participant assistance funds, and landlord outreach and mitigation funds). For example, if your county has $1,000,000 planned for the Rental Assistance program and $900,000 is to be spent on direct funding to a property owner, then the indirect rate would be calculated based on 10 percent of the remaining $100,000, or $10,000:

($1,000,000–$900,000) × 0.10 = $10,000

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