Indirect Cost Overview

In addition to regular Homelessness Resolution Program (HRP) program delivery costs, HRP grant funds may be used for Indirect Costs, per the following:

Colorado Division of Housing HRP Indirect Cost Policy

HRP grant funds may be used to pay indirect costs per 2 CFR part 200; subpart E. Indirect costs may be allocated to each eligible activity under 24 CFR 576.101 through 24 CFR 576.108, so long as that allocation is consistent with 2 CFR part 200, subpart E. The indirect costs charged to an activity subject to an expenditure limit under 24 CFR 576.100 must be added to the direct costs charged for that activity when determining the costs subject to the expenditure limit.

Approval

Subrecipients must receive approval from the DOH HRP grant manager before requesting reimbursement for indirect costs. DOH must ensure that indirect allocations align with a federally negotiated indirect rate or that the Subrecipient’s indirect allocation plan to account for the 15% de minimum rate aligns with HUD guidance.

Required Action for Compliance

Complete this Indirect Costs Allocation form to request the 15% de minimus cost rate. Your grant manager will notify you when your proposal is approved and will be filed with your grant agreement.

Technical Assistance

Please refer to the HUD Indirect Costs Toolkit for detailed information on compliance, eligibility, and calculating Indirect Costs against Modified Total Direct Costs (MTDC). This Toolkit has been developed to assist recipients and subrecipients in better understanding indirect costs and how they can be calculated and charged. Recipients can use this Toolkit to allocate and seek reimbursement for indirect costs for all HRP program grants.

Notes: Pages 15-18 of the Toolkit provide example tables of MTDC Inclusions and Exclusions that can be helpful with preparing Indirect Cost Proposals. Pay close attention to what is excluded from the MTDC.

An initial overview is provided on page 15 (and summarized below), with specific Inclusions and Exclusions for each HRP activity (Emergency Shelter, Street Outreach, Homeless Prevention, Rapid Rehousing, HMIS) included in subsequent pages in the Toolkit.

Basis of Modified Total Direct Costs for de Minimus Rate (2 CFR 200.68)

Included:

• All direct salaries and wages, applicable fringe benefits, materials and supplies, and services
• Subawards and subcontracts up to the first $25,000 of each subaward and subcontract

Excluded:

• Equipment
• Capital expenditures
• Rental and financial assistance costs
• Participant support costs
• Portion of subawards above $25,000