A. Yes
B. No
C. Maybe
“Maybe” is correct. The cost of purchasing gift cards (including food vouchers to area grocery stores) in and of itself is not an eligible cost under the CoC Program. However, the costs of providing meals or groceries to program participants are eligible supportive service costs (
§ 578.53(e)). That being said, if the gift card is used by the program participant for eligible activities, and the recipient is able to document that it was used to pay for eligible costs, gift cards may be used to pay for the cost of those services. If the recipient or subrecipient is not able to ultimately determine and document that the program participant used the gift card to pay for eligible CoC Program costs, recipients or subrecipients may not be reimbursed with CoC grant funds for the purchase of gift cards. For instance, if a recipient provides a program participant with a $10 gift card for groceries and the program participant provides a receipt for $7 worth of food, the recipient can only seek reimbursement for $7 as documented by the receipt provided.