# Presentation: 701481

## The Dynamics and Costs of Homelessness:  Informing Public Policy with Data

- Ann V. Denton
- Advocates for Human Potential
- 512-282-1401

## Dynamics of Homelessness

- The picture of homelessness has become clearer in the past decade.  We know more about the numbers of people who are homeless; their service utilization histories; and the costs of providing shelter, services, and housing.

- Advocates for Human Potential

## Dynamics of Homelessness

- This presentation will provide an overview of the relevant research, with implications for policy and practice.

- Advocates for Human Potential

## Dynamics of Homelessness

- The ground-breaking research of Dennis Culhane has caused a revolution in public policy regarding homelessness.  It is Dr. Culhane’s work that led to the focus on ending chronic homelessness at the Federal level.
- The data slides used in this presentation were prepared by Dr. Culhane.

- Advocates for Human Potential

## Dynamics of Homelessness

- Basically, the findings of Dr. Culhane’s study demonstrate that:
- 80% of the people who enter the homelessness service delivery system (shelters, for example) receive one or two service events, exit homelessness, and do not return.  Labeled transitionally homeless.
- The remaining individuals are designated as episodically or chronically homeless.  They use more than half the resources in the homelessness service delivery system.
- Research is based on longitudinal data from NYC and Philadelphia.

- Advocates for Human Potential

## Cluster Distributions: Persons and Shelter Days Consumed (Single Adults in Philadelphia)

**Transitional:**
**1.19 stays**
**20.4 days**
**Episodic:**
**3.84 stays**
**72.8 days**
**Chronic:**
**1.53 stays**
**252.4 days**

- Advocates for Human Potential

## Dynamics of Homelessness

**Transitionally Homeless:  Prevention and Relocation Assistance**
**Episodically Homeless:  Low-demand Residences (Safe Havens), Harm Reduction, Transitional Housing, Residential Treatment**
**Chronically Homeless:  Permanent Supportive Housing**

- Advocates for Human Potential

## Dynamics of Homelessness

- If we have 20% of the population consuming 50% of the resources within Continuum of Care systems, how do we address this problem?
- Fortunately, we have research evidence showing that the provision of housing and supportive services helps prevent and end homelessness for people in this group.

- Advocates for Human Potential

## Dynamics of Homelessness

- Dennis Culhane conducted a study of costs of homelessness – before and after the provision of significant supportive housing resources – in New York City.
- Bottom line:  The provision of housing and supportive services is essentially equal to the costs of providing services to this group in the shelter system AND it ends homelessness one homeless person at a time!

- Advocates for Human Potential

## The Cost of Homelessness

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## NY/NY Savings: Per Housing Unit Per Year

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## Cost Savings #2

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##  NY/NY Housing: Costs and Savings

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## Summary of Findings

- Homeless mentally ill people are heavy service users (37% of last 2 years spent in institutional settings)
- Providing services for homeless mentally ill is expensive ($40,449 per person per year)
- Providing NY/NY housing for homeless mentally ill reduced costs by 30% ($12,145 in savings per person)
- 94% of supportive housing costs offset by service reductions

- Advocates for Human Potential

## Dynamics of Homelessness

**HUD should continue permanent housing set-aside and strengthen commitment by moving Supportive Housing renewals (as well as SPC) out of McKinney appropriation**
**HHS, States, and VA should fund services on a matching basis**
**Study replication needed in other geographic areas**

- Advocates for Human Potential