Program to Help the Homeless Gathers Momentum
Samantha Marshall
Crain’s New York Business
Ted Evanicki is basking in his newfound stability.
Suffering from depression and mild schizophrenia, the Vietnam veteran drifted for years between homeless shelters and halfway houses across the city until a room finally became available at Holland House, a 361-unit supportive housing residence near Times Square. Today, he’s taking his medicine, seeing his psychiatrist monthly and volunteering at a nearby mental health center.
“This place has given me a sense of independence and an incentive to keep my illness under control,” says Mr. Evanicki.
A cut above shelters
Inspired by many such success stories and by studies showing that supportive housing residences are far more cost-effective than traditional shelters, public authorities have been pouring money into constructing and staffing such centers. Almost 1,400 supportive housing units in dozens of buildings are scheduled for completion in New York City by this time next year.
Such facilities offer shelter for thousands of homeless families and provide on-site social services to help those living with drug addiction, AIDS, mental health disorders and other problems that can lead to homelessness. The residents contribute to the rent, paying a third of their income from benefit programs like disability. The government and nonprofit agencies pick up the rest.
The construction boom in supportive housing is the concrete realization of a major shift in thinking among government agencies: They have come to favor permanent supportive housing over emergency shelters that deal with the symptoms of homelessness but not the causes.
Funding for construction is coming from a variety of local, state and federal agencies, as well as private charities.
The biggest single source is a joint city and state program called the New York/New York Agreement to House Homeless Mentally Ill Individuals. Launched in April 1999, it has to date contributed approximately $230 million for the development of 2,300 housing units. Recently, the New York State Office of Mental Health announced it would pay for 900 units, at a cost of about $90 million.
A potentially major breakthrough in funding came earlier this month: The U.S. Department of Health and Human Services and several other federal agencies gave Project Renewal, the agency that runs Holland House, a $2.8 million grant for building supportive housing. It’s the first time these agencies have paid for such a project, and if it works out, they may become the source of future funds.
New funds could also help the cash-strapped Bloomberg administration. Its relatively moderate spending on programs to prevent homelessness has provoked criticism from advocates for the homeless, who note that the number of people living on the streets is still rising. With other sources more than filling the gap in city spending, the overall picture is one of increasing funding and rising construction levels.
“The movement toward ending homelessness has been markedly re-energized,” says Rosanne Haggerty, president of Common Ground Community, a nonprofit community development organization that is scheduled to open a 167-unit supportive housing residence in Chelsea in January.
By the numbers
In the past 12 months, 17 projects with a total of 737 units have been built across the city. Another 25 buildings with 1,360 units are slated for completion between next month and November of next year. Starting in early 2005, 55 additional developments with 3,000 units will be under way.
Nonprofit social service agencies turned low-cost housing developers–such as Common Ground, Community Access, and Housing and Services Inc.–are among the biggest builders. Most are under contract with the city, state or federal government.
Community Access, for example, has four large projects under construction, including a 65-unit building on DeKalb Street in Brooklyn that is expected to open on Jan. 1. The agency, which advertised the new building for one day, has about 900 applications for the units.
For government officials, the attractiveness of the new facilities is increasingly clear. It costs between $25,000 and $50,000 a year to house one person in a shelter, but only about $15,000 to subsidize a resident of supportive housing, according to a recent University of Pennsylvania study for the Corporation for Supportive Housing, a national nonprofit agency.
In the longer term, the government could save even more money on supportive housing as residents benefit from the rehabilitation and job training available on site. These services could help them move out of the social welfare system altogether.
Teresa Thompson, a recovered drug addict who is a resident of Community Access’ 67-unit building on Warren Street in Brooklyn, says she’s ready to begin planning a new and productive life.
A success story
Ms. Thompson was sleeping on chairs in a homeless shelter in Manhattan before she was diagnosed with breast cancer two and a half years ago. Following a mastectomy, she was fast-tracked into a studio apartment at the Warren Street location, which was completed in 2000.
Now that she’s in remission, Ms. Thompson is building up her savings, adding the cash she earns through occasional work as a seamstress to her disability income. She plans to move back to her hometown of New Bedford, Mass., and start a small business teaching sewing classes.
Such success stories rarely emerge from the city’s emergency shelters. Last year, the city government spent about $180 million on the temporary shelters. But the shelter system has created a population of long-term residents among the chronically homeless, and it has done little to prevent growing numbers of people from living on the streets.
Of course, the system is also coping with an alarming increase in the number of homeless families, brought about by the recession. As of July, there were 9,268 families staying in shelters each night on average, up from 8,168 in July 2002. All told, more than 38,000 people lived in emergency shelters this summer, up from 31,000 in 2002.
In response, the city is trying to make better use of limited resources by taking a more targeted approach to the problem. Last December, Mayor Michael Bloomberg announced an increase of about $43 million to the $30 million budget for supportive housing for youths and families.
Furthermore, a new rule requires developers of supportive housing to make half of all new vacancies available to the chronically homeless, who use up about half of the city’s temporary housing resources.
“Taking this more focused approach is a very smart move on the part of the administration,” says Maureen Friar, executive director of the Supportive Housing Network of New York.
Copyright 2003, Crain Communications, Inc