Exhibit G Exhibit G – Projects for Assistance in Transition from Homelessness (PATH) Contract Supplement for Federal Funds

1. Part 1: Purpose

a. This supplement is applicable to federally funded services by the Substance Abuse and Mental Health Services Administration (SAMHSA), Projects for Assistance in Transition from Homelessness (PATH) federal grant.

b. The Contractor shall reproduce this exhibit in any subcontracts that expend PATH funds. This exhibit may not be incorporated into subcontracts by reference but must appear in the subcontract.

c. The contractor is subject to the terms and conditions incorporated either directly or by reference in the following:

i. The restrictions on the expenditure of federal funds in appropriations acts to the extent those restrictions are pertinent to the award.

ii. 2 CFR 200 and 2 CFR 300 as applicable.

1. https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200?toc=1 and https://www.ecfr.gov/current/title-2/subtitle-B/chapter-III/part-300

iii. The HHS Grants Policy Statement

1. https://www.samhsa.gov/grants/grants-management/policies-regulations/hhs-grants-policy-statement

iv. SAMHSA Additional Directives

1. https://www.samhsa.gov/grants/grants-management/policies-regulations/additional-directives

v. Standard Terms and Conditions

1. https://www.samhsa.gov/grants/grants-management/notice-award-noa/standard-terms-conditions

vi. Notice of Funding Opportunity

1. [insert link for grant nofo]

2. Part 2: General Requirements

a. Program Income

i. Use of program income – Additive: Recipients will add program income to funds committed to the project to further eligible project objectives. Sub-recipients that are for-profit commercial organizations under the same award must use the deductive alternative and reduce their subaward by the amount of program income earned.

b. Financial Management Requirements

i. Grantees are to adhere to the financial management requirements set forth in 2 CFR Part 200, Subpart D (Post Federal Award Requirements), as adopted and supplemented by the Department of Health and Human Services at 2 CFR Part 300 to meet their financial management requirements.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D

c. Supplanting

i. “Supplement Not Supplant” grant funds may be used to supplement existing activities. Grant funds may not be used to supplant current funding of existing activities. “Supplant” is defined as replacing funding of a recipient’s existing program with funds from a federal grant.

d. Funding Limitations / Restrictions

i. Grantees are required to track funding of activities by providers and be prepared to submit these data to SAMHSA upon request.

ii. Grant funds may not be used, directly or indirectly, to purchase, prescribe, or provide marijuana or treatment using marijuana, nor may they support activities that violate federal controlled substance statutes. See, e.g., 2 CFR § 200.300(a) and 2 CFR § 300.300 (governing national policy and nondiscrimination requirements for federal awards); 21 U.S.C. 812(c)(10) and 841 (prohibiting the possession, manufacture, sale, purchase, or distribution of marijuana).

iii. No funding may be used to procure DATA waiver training by recipients or subrecipients of this funding. SAMHSA recipients must also comply with SAMHSA’s standard funding restrictions, which are included in Appendix G (Standard Funding Restrictions) in the Notice of Funding Opportunity.

iv. Grant funds may not be used to pay for promotional items including, but not limited to, clothing and commemorative items such as pens, mugs/cups, folders/folios, lanyards, and conference bags (See 2 CFR § 200.421(e)(3)).

v. Grant funds may not be used to make direct payments to individuals to enter treatment or continue to participate in prevention or treatment services (See 42 U.S.C. § 1320a-7b).

1. Note: A recipient or treatment or prevention provider may provide up to $30 non-cash incentive to individuals to participate in required data collection follow-up. This amount may be paid for participation in each required follow-up interview. For programs including contingency management as a component of the treatment program, clients may not receive contingencies totaling more than $75 per budget period. The contingency amounts are subject to change. Incentive plans must be approved in advance and be accompanied by a management and reconciliation plan.

vi. Salary Limitation: The Full-Year Continuing Appropriations and Extensions Act, 2025 (Public Law 119-4, March 15, 2025), and subsequent federal appropriations acts provide a salary rate limitation. The law limits the salary amount that may be awarded and charged to SAMHSA grants and cooperative agreements. Award funds may not be used to pay the salary of an individual at a rate in excess of Executive Level II, which is $228,000. This amount reflects an individual’s base salary exclusive of fringe and any income that an individual may be permitted to earn outside of the duties to your organization. This salary limitation also applies to subrecipients under a SAMHSA grant or cooperative agreement. Note that these or other salary limitations will apply in the following fiscal years, as required by law.

vii. Funds cannot be used to provide inpatient treatment or hospital-based detoxification services. Residential services are not considered to be inpatient or hospital-based services.

viii. Funds may not be used to pay for housing other than recovery housing, which includes application fees and security deposits.

ix. Participant support costs are unallowable (E.g., Vital records, work supplies, etc.).

x. Subrecipients and contractors are prohibited from using Federal funds, directly or indirectly, including through cost-sharing, matching funds, or subsequent reimbursement, to support "harm reduction" or "safe consumption" efforts that facilitate illegal drug use.

xi. Prohibited Supplies: Grant funds shall not be used for the purchase, distribution, or support of drug paraphernalia as defined by applicable law, including but not limited to:

1. Syringes, needles, or pipes;

2. Supplies for the injection, inhalation, or ingestion of illicit drugs;

a. Example: pipes or cylindrical objects intended to be used to smoke or inhale illegal scheduled substances.

3. Sterile water, saline, or ascorbic acid when intended to facilitate drug use; and

4. Fentanyl test strips or other substance test kits, including xylazine and medetomidine test strips, intended for use by people using drugs.

xii. Permissible Activities: Notwithstanding the above, funds may be used for evidence-based, legally permissible activities, including the provision of naloxone/nalmefene, fentanyl or other drug test strips, and referrals to treatment.

xiii. Failure to comply with these terms, or any SAMHSA/HHS regulations, may result in immediate suspension or termination of this award, withholding of future payments, and the mandatory recoupment of any misused funds.

e. Acknowledgment of Federal Funding

i. As required by HHS appropriations acts, all HHS recipients must acknowledge Federal funding when issuing statements, press releases, publications, requests for proposal, bid solicitations, and other documents, such as tool-kits, resource guides, websites, and presentations describing the projects or programs funded in whole or in part with HHS federal funds. The recipient must clearly state: 1) the percentage and dollar amount of the total costs of the program or project funded with federal money; and 2) the percentage and dollar amount of the total costs of the project or program funded by non-governmental sources.

3. Part 3: Standard Terms and Conditions

a. Reasonable Costs for Consideration

i. Recipients must exercise proper stewardship over Federal funds and ensure that costs charged to awards are allowable, allocable, reasonable, necessary, and consistently applied regardless of the source of funds according to “Reasonable Costs” consideration per 2 CFR § 200.404 and the “Factors affecting allowability of costs” per 2 CFR § 200.403. A cost is reasonable if, in its nature and amount, it does not exceed that which would be incurred by a prudent person under the circumstances prevailing at the time the decision was made to incur the cost.

b. Consistent Treatment of Costs

i. Recipients must treat costs consistently across all federal and non-federal grants, projects, and cost centers. Recipients may not direct-charge federal grants for costs typically considered indirect in nature unless done consistently. If a cost is included in the indirect cost rate, it may not also be charged as a direct cost. Examples of indirect costs include administrative salaries, rent, accounting fees, utilities, and office supplies. If typical indirect cost categories are included in the budget as direct costs, it is understood that your organization has developed a cost accounting system adequate to justify the direct charges and to avoid an unfair allocation of these costs to the federal government. All awards are subject to later review and audit in accordance with the requirements of 2 CFR § 200.334 (Retention requirements for records), 2 CFR § 200.339 (Remedies for noncompliance) , 2 CFR § 200.345 (Effects of closeout), and 2 CFR Part 200, Subpart F (Audit Requirements).

c. Compliance with Award Terms and Conditions

i. Failure to comply with the terms and conditions of this award may result in enforcement actions in accordance with 2 CFR § 200.339 (Remedies for noncompliance) and 2 CFR § 200.340 (Termination). This may include withholding payment, disallowance of costs, suspension and debarment, termination of this award, or denial of future funding.

d. Lobbying Restriction Reminder

i. Recipients of federal funds are not allowed to use federal funding to lobby federal, state, or local officials or their staff to receive additional funding or influence legislation. As a general matter, these lobbying restrictions preclude recipients from:

1. Spending federal funds to influence an officer or employee of any agency or Congressional member/staff regarding federal awards;

2. Failing to submit required certification and disclosure forms (i.e., SF-LLL);

3. Using grants funds provided to non-profit organizations or institutions of higher education to influence an election, contribute to a partisan organization, or influence enactment or modification of any pending federal or state legislation; or

4. Expending federal funds to influence federal, state, or local officials or legislation.

4. Part 4: PATH Grant Specific Requirements

a. Match Requirement

i. Awardees are required to contribute a non-federal match at 36%. The federal funds and the required match funds must be spent down concurrently. Funds can be matched through local public or non-federal contributions as cash, in-kind services, or a combination of both. Match funds must be used for allowable expenses for PATH-enrolled individuals and services.

b. PATH Specific Funding Limitations/Restrictions

i. Food costs are highly restricted. PATH allows up to $10/patient/day with prior approval from the BHA program manager and so long as food costs bear a logical relationship to the specific program and be reasonably necessary to accomplish specific program outcomes established in the grant award. Food expenditures cannot be justified merely because of a social purpose. If the Contractor should want to pursue food costs, the Contractor must consult with the BHA program manager on an appropriate tracking and documentation methodology. The Contractor must ensure that they are in compliance with SAMHSA regulations, adequately documented for necessity and does not exceed $10/patient/day.

ii. The basis for determining the allowability of costs charged to the grant is the PATH Program authorizing statutes and in the Cost Principles under 45 CFR 75.403. In particular, grant funds may not be expended:

1. to support emergency shelters or construction of housing facilities;

2. for inpatient psychiatric or substance abuse treatment costs; or

3. make direct payments to individuals to enter treatment or continue to participate in prevention or treatment services.

iii. All costs incurred prior to the award issue date and costs not consistent with the PATH authorizing statutes per 521 - 535 of the Public Health Service Act (42 USC 290cc-21 290cc- 35, as amended, including by P.L. 101-645, Title V, Subtitle B, and P.L. 114-255, as applicable, are not allowable under this award.

iv. PATH is subject to program income requirements under 45 CFR 75.307. Program income generated under the PATH program is additive (additional costs alternative) and must be used to further the program s objectives and is subject to the same award terms and conditions as PATH grant funds.

v. No more than 4 percent of the payment received under the PATH Formula Grant Program may be expended on administrative expenses. Grantees must track the costs in this category with records demonstrating that the 4 percent cap has not been exceeded.

vi. No more than 20 percent of the PATH Formula Grant may be expended on housing services as defined in the PATH Legislation. Grantees must track the costs in this category with records demonstrating that the 20 percent cap has not been exceeded. This includes:

1. minor renovation, expansion, and repair of housing;

2. planning of housing;

3. technical assistance in applying for housing assistance;

4. improving the coordination of housing services;

5. security deposits;

6. the costs associated with matching eligible homeless individuals with appropriate housing situations; and

7. One-time rental payments to prevent eviction. PATH grant funds may not be used to pay for rent or housing except as noted in (5) and (7) of this paragraph (for security deposits and one-time rental payments to prevent eviction).

c. Additional Requirements

i. The PATH grant is subject to the administrative requirements, cost principles, and audit requirements that govern Federal monies associated with this award, as applicable, in the Uniform Guidance 2 Code of Federal Regulations (CFR) Part 200 as codified by HHS at 45 CFR Part 75 (Electronic Code of Federal Regulations (eCFR)).

ii. Contractors carrying out PATH supported activities shall comply with the requirements of Section 532 of the Public Health Service Act (42 U.S.C. 290cc-32).

iii. Contractors carrying out PATH supported activities shall comply with the requirements of Section 533 of the Public Health Service Act (42 U.S.C. 290cc-33).