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Ending Chronic Homelessness Saves Taxpayers Money
By: Tim Houchen July 28, 2017 |
Chronic Homelessness
According to federal definition as prescribed by the U.S. Dept. of Housing and Urban Development (HUD), ln order to be considered chronically homeless, a person must have a disability and have been living in a place not meant for human habitation, in an emergency shelter, or a safe haven for the last 12 months continuously or on at least four occasions in the last three years where those occasions cumulatively total at least 12 months.
Chronic homelessness refers to people who have chronic and complex health conditions including mental illnesses, substance use disorders, and medical conditions who experience long-term homelessness and can be found sleeping on the street or in shelters. Without stable housing, they cycle in and out of emergency departments, inpatient hospital stays, psychiatric centers, detoxification programs, and jails, resulting in high public costs and poor health outcomes for individuals including premature death.
According to federal definition as prescribed by the U.S. Dept. of Housing and Urban Development (HUD), ln order to be considered chronically homeless, a person must have a disability and have been living in a place not meant for human habitation, in an emergency shelter, or a safe haven for the last 12 months continuously or on at least four occasions in the last three years where those occasions cumulatively total at least 12 months.
Chronic homelessness refers to people who have chronic and complex health conditions including mental illnesses, substance use disorders, and medical conditions who experience long-term homelessness and can be found sleeping on the street or in shelters. Without stable housing, they cycle in and out of emergency departments, inpatient hospital stays, psychiatric centers, detoxification programs, and jails, resulting in high public costs and poor health outcomes for individuals including premature death.
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Permanent Supportive Housing (PSH)
Fortunately, there is a proven solution to end chronic homelessness: permanent supportive housing. Permanent supportive housing pairs affordable housing with case management and supportive services and has been shown to not only help people experiencing chronic homelessness to achieve longterm housing stability, but also improve their health and well-being. Investments in PSH have decreased chronic homelessness by 30% since 2007. |
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PSH Reduces Spending
Numerous studies, many conducted recently, have sought to document the costs and benefits of supportive housing in the U.S. iv The majority have documented how PSH reduces the use of publicly funded crisis services, including jails, hospitalizations, and emergency departments.
Numerous studies, many conducted recently, have sought to document the costs and benefits of supportive housing in the U.S. iv The majority have documented how PSH reduces the use of publicly funded crisis services, including jails, hospitalizations, and emergency departments.
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A chronically homeless person costs the tax payer an average of $35,578 per year. Costs on average are reduced by 49.5% when they are placed in supportive housing. Supportive housing costs on average $12,800, making the net savings roughly $4,800 per year |
Investment Needed from Congress
Congress will need to invest in permanent supportive housing to drive progress while reducing tax payers’ spending. Congress should provide at least the $2.487 billion in the House bill for HUD’s Homeless Assistance Grants in FY 2017.
Congress will need to invest in permanent supportive housing to drive progress while reducing tax payers’ spending. Congress should provide at least the $2.487 billion in the House bill for HUD’s Homeless Assistance Grants in FY 2017.
UNIVERSITY OF CALIFORNIA, IRVINE COST STUDY OF HOMELESSNESS
IN ORANGE COUNTY, CA 2017
This is a collaborative study among Orange County United Way, Jamboree, and the University of California, Irvine, with the support of the Association of California Cities - Orange County (ACC-OC), 2-1-1 of Orange County, and the Hospital Association of Southern California.
Homelessness imposes considerable economic costs on the communities in which it exists. There have been a number of cost studies across other major localities in the U.S., and in California in particular, but no such cost study has been completed for Orange County. The study is based on data collected from five main sources: the County of Orange, the municipalities within the county, Orange County hospitals (via the Hospital Association of Southern California and Cal Optima), a sample of non-governmental agencies addressing homelessness and individuals experiencing homelessness themselves.
When looking at health service utilization alone, the estimated average annual cost among those homeless who are housed ($26,158) is half the annual cost incurred by those on the street or in emergency shelters ($51,855), with the disparity even greater between those in PSH ($43,184) and the chronically street homeless ($98,199).
Key Finding: Whatever the service or housing category the costs of homelessness declines when the homeless are housed. This holds for both the non-chronically and the chronically homeless.
Key Finding: Homelessness is caused primarily by lack of sufficient income or job loss combined with high costs of housing in Orange County. Other factors, like family dysfunction, health, and substance abuse, increase one’s vulnerability to homelessness in such a context.
You can view the entire UCI cost study on homelessness or download it for free here,
You can also access thousands of pages of useful information for furthering your advocacy for the homeless at our Homeless Documents Library.
IN ORANGE COUNTY, CA 2017
This is a collaborative study among Orange County United Way, Jamboree, and the University of California, Irvine, with the support of the Association of California Cities - Orange County (ACC-OC), 2-1-1 of Orange County, and the Hospital Association of Southern California.
Homelessness imposes considerable economic costs on the communities in which it exists. There have been a number of cost studies across other major localities in the U.S., and in California in particular, but no such cost study has been completed for Orange County. The study is based on data collected from five main sources: the County of Orange, the municipalities within the county, Orange County hospitals (via the Hospital Association of Southern California and Cal Optima), a sample of non-governmental agencies addressing homelessness and individuals experiencing homelessness themselves.
When looking at health service utilization alone, the estimated average annual cost among those homeless who are housed ($26,158) is half the annual cost incurred by those on the street or in emergency shelters ($51,855), with the disparity even greater between those in PSH ($43,184) and the chronically street homeless ($98,199).
Key Finding: Whatever the service or housing category the costs of homelessness declines when the homeless are housed. This holds for both the non-chronically and the chronically homeless.
Key Finding: Homelessness is caused primarily by lack of sufficient income or job loss combined with high costs of housing in Orange County. Other factors, like family dysfunction, health, and substance abuse, increase one’s vulnerability to homelessness in such a context.
You can view the entire UCI cost study on homelessness or download it for free here,
You can also access thousands of pages of useful information for furthering your advocacy for the homeless at our Homeless Documents Library.
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