Dispelling the Myth: "it often seems that placing homeless people in shelters is the most inexpensive way to meet the basic needs of people experiencing homelessness; some may even believe that shelters are an ideal solution." WRONG

To contact us Click HERE
I've been butting up against a familiar situation for anyone who works with people experiencing homelessness; a low or fixed income person or family who was once homeless received some sort of income or assistance through SSDI or SSI, obtained housing because they were homeless and  as such received "priority" status for that housing, and now needs to find new housing for some reason (in my most recent case, the owner is selling the property for commercial development).

But the game rules have changed for them because the person(s) who need to find a place to go aren't considered "homeless" so have no priority attached to their status.  Because waiting lists are beyond ridiculously long, they won't see an option to move into an affordable unit until somewhere around 2015, and I'm not kidding, here.  I can also tell you that readers of this post in some cities will be wishing they lived here in order to take advantage of the short (relatively speaking, of course) wait times we're "enjoying" in the Nashville area.  I kid you not about this, either.  You can rest assured that even the most compassionate and understanding landlord will be unable to accommodate a request to wait years for the current resident to find another place.

Many of the folks who find themselves trapped in this conundrum will wind up homeless - again. And many in our communities will complain that they're tired of supporting those who are homeless.  And many charged with ending homelessness in those communities are now conditioned to ignore the fact that a human being is living without the most basic and necessary need a human can have, shelter, and quote the federal regs related to who qualifies - and who doesn't - as "homeless," using that rationale to deny the person from access to an affordable housing unit.

This is the "status quo" of homelessness and the housing situation as we know it today for a very large number of people and cities. My point in bringing this all to your attention is to also call attention to a couple of things related to this, the very first being a response (articulately crafted by the National Alliance to End Homelessness, [NAEH] - thank you so much guys!) to those who are "tired of supporting" those on trying to exist on the streets - please read the short but important piece below by the good folks at NAEH.

My second response is to my fellow direct service providers and the administrative team that leads the organization they are a part of.  I know that money is an issue for all of us. I know too that often our hands are tied and we are required to follow federal (as well as any state and local) regulations when we're working to provide options to those requesting our services.  But something else I know is that after we do this kind of work day in, day out, for years, we become immune, hardened, often cynical to the stories we hear from those who are desperate for housing.

Because we've had to deliver bad news so many times to those who had their hopes up when they first walked through the door, we've had to learn to turn off our emotional connection to the fact that we're dealing with human beings or risk our own health and sanity in the process. This slide down the callousness slope  is easier than one might think, unfortunately, and it's not that unusual, either.  It's a protective mechanism that kicks in when those charged with ending the misery of homelessness find out that more often than not they really can't do much for the person sitting across from them.  It's a terrible position to put otherwise compassionate humans into, because I can almost guarantee that when they first sat down at their desk and began their jobs, they came to the job committed and convinced that they would be able to make a difference. Very few people I know are working in this field "for the money" because frankly, most of us who're working are not much better off than the clientele we serve if we're solely reliant on the income we earn from our jobs.

My two points collide here, into a neat little piece of enlightenment.  Those complaining about the costs associated with getting folks off the street should join forces with those who are charged with finding affordable housing - as well as those who make the rules related to who gets affordable housing - and work together to put the money we're spending on homelessness in general to better use.   We've definitely got solutions and approaches that are far superior to the current style of "managing homelessness" so many cities and towns currently employ.

By combining forces and focusing our efforts, we all get what we need.  The truth is, it doesn't really matter to the folks who're eking out their existence on the streets what the motives are behind those who're trying to remove them from the bricks, it only matters where they are going when they are forced to "move along."  By collaborating and refocusing the priorities to the best use of our increasingly limited tax dollars, everyone - and especially those who are currently homeless - goes home happy at the end of the day. 

What more could we all ask for?

Cost of Homelessness

Homelessness can be surprisingly costly for taxpayers. Fortunately, socially-responsible, cost-effective solutions exist.

For many city officials, community leaders, and even direct service providers, it often seems that placing homeless people in shelters is the most inexpensive way to meet the basic needs of people experiencing homelessness; some may even believe that shelters are an ideal solution.
Research, however, has shown something surprisingly different.
The cost of homelessness can be quite high. Hospitalization, medical treatment, incarceration, police intervention, and emergency shelter expenses can add up quickly, making homelessness surprisingly expensive for municipalities and taxpayers.
Hospitalization and Medical Treatment
People experiencing homelessness are more likely to access the most costly health care services.

• According to a report in the New England Journal of Medicine, homeless people spent an average of four days longer per hospital visit than comparable non-homeless people. This extra cost, approximately $2,414 per hospitalization, is attributable to homelessness.
• A study of hospital admissions of homeless people in Hawaii revealed that 1,751 adults were responsible for 564 hospitalizations and $4 million in admission costs. Their rate of psychiatric hospitalization was over 100 times higher than their non-homeless cohort. The researchers conducting the study estimate that the excess cost for treating these homeless individuals was $3.5 million or about $2,000 per person.

Homelessness both causes and results from serious health care issues, including addiction, psychological disorders, HIV/AIDS, and a host of order ailments that require long-term, consistent care. Homelessness inhibits this care, as housing instability often detracts from regular medical attention, access to treatment, and recuperation. This inability to treat medical problems can aggravate these problems, making them both more dangerous and more costly.
As an example, physician and health care expert Michael Siegel found that the average cost to cure an alcohol-related illness is approximately $10,660. Another study found that the average cost to California hospitals of treating a substance abuser is about $8,360 for those in treatment, and $14,740 for those who are not.
Prisons and Jails
People who are homeless spend more time in jail or prison, which is tremendously costly to the state and locality. Often, time served is a result of laws specifically targeting the homeless population, including regulations against loitering, sleeping in cars, and begging.

• According to a University of Texas two-year survey of homeless individuals, each person cost the taxpayers $14,480 per year, primarily for overnight jail.
• A typical cost of a prison bed in a state or federal prison is $20,000 per year.

Emergency Shelter
Emergency shelter is a costly alternative to permanent housing. While it is sometimes necessary for short-term crises, too often it serves as long-term housing. The cost of an emergency shelter bed funded by HUD's Emergency Shelter Grants program is approximately $8,067 more than the average annual cost of a federal housing subsidy (Section 8 Housing Certificate). A recent HUD study found that the cost of providing emergency shelter to families is generally as much or more than the cost of placing them in transitional or permanent housing.
Cost Studies
Studies have shown that – in practice, and not just in theory – providing people experiencing chronic homelessness with permanent supportive housing saves taxpayers money.
Permanent supportive housing refers to permanent housing coupled with supportive services.

• A study recent study followed the progress of the Downtown Emergency Service Center (DESC) in Seattle, WA. All the residents at this Housing First-styled residence had severe alcohol problems and varying medical and mental health conditions. When taking into account all costs – including housing costs – the participants in the 1811 Eastlake program cost $2,449 less per person per month than those who were in conventional city shelters, as described in the article from the Journal of American Medical Association.
• A cost study of rural homelessness from Portland, ME found significant cost reductions when providing permanent supportive housing as opposed to serving the people while they remain homeless. The study specifically noted a 57 percent reduction in the cost of mental health services over a six-month period, partly due to a 79 percent drop in the cost of psychiatric hospitalization.
• A study from Los Angeles, CA – home to ten percent of the entire homeless population – found that placing four chronically homeless people into permanent supportive housing saved the city more than $80,000 per year.

For more information on the cost savings of permanent supportive housing, view our policy brief on chronic homelessness or visit our interactive tool on the subject.
While seemingly counterintuitive, these examples clearly demonstrate that a housing-based approach to homelessness is not only more cost-effective than a shelter-based approach, but more effective in the long term. By focusing our resources on ending homelessness, we can make real progress toward eradicating the social problem while helping the country's most vulnerable residents.
References

• Salit S.A., Kuhn E.M., Hartz A.J., Vu J.M., Mosso A.L. Hospitalization costs associated with homelessness in New York City. New England Journal of Medicine 1998; 338: 1734-1740.
• Martell J.V., Seitz R.S., Harada J.K., Kobayashi J., Sasaki V.K., Wong C. Hospitalization in an urban homeless population: the Honolulu Urban Homeless Project. Annals of Internal Medicine 1992; 116:299-303.
• Rosenheck, R., Bassuk, E., Salomon, A., Special Populations of Homeless Americans, Practical Lessons: The 1998 National Symposium on Homelessness Research, US Department of Housing and Urban Development, US Department of Health and Human Services, August, 1999.
• From the website of the National Law Center on Homelessness and Poverty, May 8, 2000.
• Diamond, Pamela and Steven B. Schneed, Lives in the Shadows: Some of the Costs and Consequences of a "Non-System" of Care. Hogg Foundation for Mental Health, University of Texas, Austin, TX, 1991. 6Slevin, Peter, Life After Prison: Lack of Services Has High Price. The Washington Post, April 24, 2000.
• Office of Policy Development and Research, U.S. Department of Housing and Urban Development, Evaluation of the Emergency Shelter Grants Program, Volume 1: Findings September 1994. p 91.
• Abt Assocaites, et al, Costs Associated With First-Time Homelessness For Families and Individuals, U.S. Department of Housing and Urban Development, March 23, 2010.