10.          STREETS TO HOMES INITIATIVE FOR ADDRESSING HOMELESSNESS

 

INITIATIVES « DE LA RUe ŕ un logement » POUR ATTÉNUER LE PROBLČME DES SANS‑ABRI

 

 

COMMITTEE RECOMMENDATION as amended

That Council approve the following:

 

Whereas homelessness is a serious concern that City Council wishes to address;

 

And whereas it has been demonstrated that housing and support services are a necessary part of a solution to the homeless situation;

 

And whereas the New York Model has demonstrated that understanding and having the ability to identify the cost implications in addition to the social impacts of the homelessness issue is a key component of a homelessness strategy;

 

And whereas the New York Model effectively builds a business case that demonstrates the return on investment of providing housing and housing support services to achieve the outcome of moving homeless individuals to homes;

 

            And whereas it would be helpful in finding lasting solutions to this important issue, to have a clear understanding of the costs to the social safety net of a homeless person in Ottawa;

 

Therefore be it resolved that staff complete a business case similar to the New York Model for the City of Ottawa, that analyzes the current costs of municipal services provided to the homeless population in Ottawa versus costs associated with properly funded supportive housing options and that identifies where we can maximize the value of the current community investments to directly contribute to the achievement of the objectives of a housing first strategy and that staff provide a progress report back to the Community and Protective Services Committee by fall 2007.

 

 

Recommandation du Comité TELLE QUE MODIFIÉE

 

Que le Conseil approuve ce qui suit :

 

Attendu que la question des sans-abri constitue une grave préoccupation, que la Ville souhaite résoudre;

 

Attendu qu’il a été démontré que le logement et les services de soutien connexes constituent un élément incontournable de la solution au problčme des sans-abri;

 

Attendu que le modčle de New York a montré que la compréhension et la capacité de déterminer l’impact financier en plus des coűts sociaux du phénomčne des sans-abri constituent un élément clé d’une stratégie ŕ cet égard;

 

Attendu que le modčle de New York permet de démontrer le rendement de l’investissement consenti pour fournir des logements et des services de soutien connexes afin de procurer un logement aux sans-abri;

 

Attendu qu’il serait utile, afin de trouver des solutions durables ŕ cette importante question, de connaître clairement le coűt d’une personne sans abri pour le filet de sécurité sociale ŕ Ottawa;

 

Il est résolu que le personnel procédera ŕ une analyse semblable au modčle de New York pour la ville d’Ottawa, que cette analyse évaluera le coűt des services municipaux fournis actuellement aux sans-abri d’Ottawa par rapport aux coűts inhérents ŕ des services de logement convenablement financés; qu’elle déterminera les moyens d’optimiser les investissements publics afin de contribuer directement ŕ l’atteinte des objectifs d’une stratégie donnant la priorité au logement; et que le personnel soumettra un rapport provisoire au Comité des services communautaires et de protection d’ici ŕ l’automne 2007.

 

 

 

 

 

 

DOCUMENTATION

 

1.                  Deputy City Manager, report dated 1 February 2007 (ACS2007-CPS-HOU-0004).

2.                  “Hope for the homeless” article from The Ottawa Citizen, 11 December 2006.

3.                  Extract of Draft Minute, 15 February 2007 will be distributed prior to Council.

 


Report to/Rapport au :

 

Community and Protective Services Committee

Comité des services communautaires et de protection

 

01 February 2007 / le 01 février 2007

 

Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint,

Community and Protective Services/Services communautaires et de protection 

 

Contact Person/Personne ressource : Russell Mawby, Director

Housing/Logement

(613) 580-2424 x, 44162

 

City-Wide/ Portée générale

Ref N°: ACS2007-CPS-HOU-0004

 

 

SUBJECT:

STREETS TO HOMES INITIATIVE FOR ADDRESSING HOMELESSNESS

 

 

OBJET :

INITIATIVES « DE LA RUe ŕ un logement » POUR ATTÉNUER LE PROBLČME DES SANS‑ABRI

 

 

REPORT RECOMMENDATION

 

That the Community and Protective Services Committee receive this report for information.

 

RECOMMANDATION DU RAPPORT

 

Que le comité des services communautaires et de protection reçoive le présent rapport ŕ titre d'information.

 

EXECUTIVE SUMMARY

 

 

Over the last few years, there has been increasing evidence of the effectiveness of a ‘housing first’ approach to homeless services.  In some places this has been called a ‘streets to homes’ approach.  The basic premise is simply that placing homeless individuals and families in long term housing increases the opportunities for and sustainability of support services. 

 

There is a commitment in the Ottawa community of stakeholders in homeless services to a ‘housing first’ approach, whether it is moving directly from the street or moving as quickly as possible from emergency shelters.  In other words, no one wants homeless individuals and clients to wait until employment, sheltered workshops, etc, is in place before placing in housing.  However, it is acknowledged that certain supports have to be readily available immediately, especially for those with serious mental illnesses and/or addiction issues. 

 

The available information indicates there are 2,000 individuals on the waiting list for supportive housing in Ottawa.  Current supportive housing programs cost from $13,000 to $18,000 per person.  However, a detailed analysis would need to be undertaken to determine what range and types of supportive housing models would be needed, what savings potentially might be achieved elsewhere in the system, and who would pay for what.

 

The City of Ottawa has ensured that a continuum of supports for homeless and those at risk is already in place in Ottawa.  However, appropriate funding is not available.  To achieve significant progress on ending homelessness, we need leadership, funding and partnerships with senior levels of government, and community involvement from business groups, faith groups and volunteers from the general public.

 

 

RÉSUMÉ

Depuis quelques années, on constate de plus en plus l’efficacité d’une solution axée sur le logement en premier lieu pour les services aux sans‑abri. C’est ce qu’on a appelé en certains milieux l’initiative « de la rue ŕ un logement ». C’est que, tout simplement, si les personnes et les familles sans‑abri sont placées dans des logements pour une longue durée, il est plus facile de leur fournir constamment des services de soutien.

Les intervenants dans les services aux sans‑abri ŕ Ottawa sont déterminés ŕ adopter une telle solution, qu’il s’agisse de leur faire quitter la rue directement ou de les sortir le plus rapidement possible des refuges. Autrement dit, personne ne veut que les personnes et les clients sans‑abri attendent d’obtenir un emploi ou du travail dans un atelier protégé avant d’ętre logé. Il faut toutefois que certaines mesures de soutien leur soient facilement disponibles immédiatement, surtout dans le cas des personnes qui souffrent de graves maladies mentales ou qui ont des problčmes de toxicomanie.

Selon les renseignements disponibles, il y a 2 000 personnes qui figurent sur la liste d’attente pour obtenir un logement en milieu de soutien ŕ Ottawa. Les programmes actuels de logement en milieu de soutien coűtent de 13 000 $ ŕ 18 000 $ par personne. Il faudrait toutefois faire une analyse détaillée pour déterminer quel éventail et quels types de logements en milieu de soutien seraient nécessaires, les économies qui pourraient peut‑ętre ętre réalisées ailleurs dans le systčme, et qui paierait pour cela.

La Ville d’Ottawa a déjŕ mis en place tout un ensemble de mesures de soutien pour les sans‑abri et les personnes ŕ risque. Toutefois, elle ne dispose pas des fonds nécessaires. Pour en arriver éventuellement ŕ atténuer le problčme des sans‑abri, nous devons compter sur l’initiative, les fonds et la collaboration des niveaux supérieurs de gouvernement, et sur la participation du milieu comme le monde des affaires, les groupes religieux et les bénévoles en général.

BACKGROUND

 

Over the last few years, there has been increasing evidence of the effectiveness of a ‘housing first’ approach to homeless services.  In some places this has been called a ‘streets to homes’ approach.  The basic premise is simply that placing homeless individuals and families in long term housing increases the opportunities for and sustainability of support services.  These are most commonly mental health services, often combined with addiction services and always including basic life management skills.  The earlier clients move back into housing, whether from the streets or from the shelters, the more effective the intervention.

 

A 2003 study of the homeless in Ottawa concluded that, while the main cause of homelessness was poverty combined with lack of affordable housing, many people remained in or cycled in and out of homelessness because of the lack of supports to both find and maintain appropriate, long term housing.

 

In 2005, the National Secretariat on Homelessness commissioned a study on the relative costs of housing homeless people in four Canadian cities – Toronto, Vancouver, Halifax and Montreal. 

 

The executive summary of the study report, titled “: “The Cost of Homelessness:  Analysis of Alternate Responses in Four Canadian Cities” is attached.

 

Costs per year for existing responses, averaged across the four cities were:

 

·        Institutional responses (prison/detention and psychiatric hospitals): $66,000 to $120,000;

·        Emergency shelters (cross section of youth, men’s women’s, family and victims of violence): $13,000 to $42,000;

·        Supportive and transitional housing: $13,000 to $18,000; and

·       
Affordable housing without supports (singles and family): $5,000 to $8,000.

 

 


This study did not look at the costs of other services used by homeless people, and there has been limited exploration of those costs in Canada.  The executive summary of this study is attached at the end of this report.

 

The first Ottawa Community Action Plan to Prevent and End Homelessness in 1999 recognized the need to focus on housing as a solution to homelessness, not just on better management of homelessness by expanding and enhancing emergency services.  This means that the community committed to advocating for, planning and developing safe, affordable housing with supports as needed.  The subsequent updates of the Community Action Plan (2002 and 2005) reflected a community focus on reducing the need for shelters by concentrating on housing loss prevention, housing search and stabilization, and ultimately increasing the availability of permanent affordable housing with any necessary supports. 

 

Since 2001, programs and services have been developed to reflect this changed focus.  Some examples of housing initiatives:

o       152 units of new transitional supportive housing have been built since 2001, focused on youth, women and people with medical or mental health needs.

o       410 units of low-income affordable housing were developed under the Canada/Ontario Affordable Housing Program and/or Action Ottawa since 2004.  Funding for another 176 units is available for 2007.  Funding for at least 100 more units is expected for 2008.  However, this is significantly below the target of 500 units per year established in the Long Range Financial Plan in 2004.

o       Ottawa is the only city in Ontario that has used the AHP funding to build new supportive housing – 66 units since 2004.

 

Some examples of successful, effective support services:

o       Homeless people in shelters are given priority access to rent-geared-to-income social housing.  About 530 people were housed under this priority in 2006, however, dedicated support services are lacking, and this policy and process is being reviewed in 2007.

o       Housing search and stabilization workers are located in each emergency shelter to help people find housing.

o       Options Bytown has tenant support resource centres in 13 social housing buildings.  Five of these centres operate with federal homelessness funding due to end in March 2007.  The other workers will be redeployed to accommodate as many needs as possible.

o       2006, there were 57 individuals moved directly from the streets to housing with the assistance of outreach workers and housing search agencies that the City funds.

o       The community-based Housing Loss Prevention Network assisted 2,486 households during difficulties in maintaining their housing in 2006. 80% retained their housing and did not become homeless.


 

The homelessness Community Capacity Building (CCB) Steering Committee is monitoring the implementation of the Community Action Plan recommendations.  The Committee is concerned about the apparent lack of community capacity to develop supportive housing, especially when the 12-member Supportive Housing Network reports 2,000 individuals on their waiting lists.  The Committee has also identified the lack of resources needed to move individuals directly from the street to appropriate housing, ‘housing first’.

 

There is a plan being developed for the CCB Leadership Table to be a strong voice to advocate for partnerships, policy and funding to develop the necessary housing and supports.  This Table is comprised of representatives from the United Way, Community Foundation, the City of Ottawa and several community leaders.  They will have a plan of action over the next year to engage decision makers to address these issues.  This will include not only government but business leaders, faith groups and the non-profit sector. 

 

 

DISCUSSION

 

There is a commitment in the Ottawa community of stakeholders in homeless services to a ‘housing first’ approach, whether it is moving directly from the street or moving as quickly as possible from emergency shelters.  In other words, no one wants homeless individuals and clients to wait until employment, sheltered workshops, etc, isare  in place before placing in housing.  However, it is acknowledged that certain supports have to be readily available immediately, especially for those with serious mental illnesses and/or addiction issues.

 

Ottawa Services

 

In addition to the services identified above, the City of Ottawa is one of six pilot sites participating in Hostels to Homes, a two year pilot project with the Ministry of Community and Social Services to reduce the use of emergency shelter services.  The province is allowing the City flexibility in administering existing funding to support 45 individuals in leaving the shelters and establishing themselves in long term housing. The Ottawa Mission is taking the lead for the men’s shelters, working with community housing, health and employment services to help these clients achieve sustainable employment with reduced demand on social assistance. 

 

We are fortunate in Ottawa to have the Canadian Mental Health Association branch that operates a Housing Outreach service.  The outreach workers engage homeless individuals with serious mental health issues at drop-ins, on the streets and in emergency shelters to help them obtain the appropriate community housing of their choice.  Support services are then put in place.


 

Examples of Successful Streets to Homes Programs outside of Ottawa

 

The success of these limited initiatives has led the City with community stakeholders and through the homelessness Community Capacity Building Steering Committee to explore options that are used in other cities.  A preliminary search has identified the following examples.

 

1)  New York/New York Agreements to House the Homeless Mentally Ill

 

The New York/New York agreements (1990, 1999, 2005) to end chronic homelessness among the mentally ill partnered various levels of government with non-profit service providers.  The agreements included significant cash investments to fund capital projects and ongoing service levels. 

 

A homeless mentally ill person in NYC uses an average of $40,499 of publicly funded services over the course of a year.  Once placed into a service-enriched supportive housing unit, a homeless mentally ill individual reduces his or her use of publicly funded services by an average of $12,145 per year.

 

NY/NY I (1990):

·        Initial capital investment of $200 million, and $65.8 million annually for 3,600 community-based permanent housing units for homeless mentally ill.

·        The program was designed to place people with severe mental illness into one of two types of housing: community based residence models (clinical model integrating housing and on-site service delivery; participation mandated through the housing agreement) or supportive housing (single, independent units with community based or site based services and supports).

·        As well as supports, tenants were given housing allowances, supplemental security income payments by the state, and other direct payment by the state.

 

NY/NY II (1999): 

·        The agreement between the State and New York City provided housing and community-based services to more than 2,300 homeless mentally ill persons, $100 million from State and City to provide support services for 1,500 new units of supportive housing.

 

NY/NY III (2005):

·        The agreement between the State and New York City committed $1 billion in funding for 9,000 new units over 10 years for the chronically homeless population. 

·        Annual operating costs for the units will be $156 million.  In addition to $1 billion funding  the federal government has also contributed funding for these units.


 

The first two agreements targeted single adults with mental illness and history of homelessness, and the third agreement includes units for homeless individuals with substance abuse issues, mental illness, HIV/AIDS, youth, and families with heads of households who are disabled.

 

2)  City of Toronto Emergency Homeless Pilot Project

 

In 2002, The City of Toronto used federal funding (SCPI) to house 125 homeless people being evicted from the “Tent City” site.  The funding provided rent supplements for units in the private rental market as well as intensive supports, and as a result, 88% of Tent City residents (125 people) were stably housed for at least 6 months. 

 

3)  City of Toronto Streets to Homes Strategy

 

Subsequent to the Tent City pilot program, the City of Toronto implemented a “Streets to Homes” strategy using SCPI funding to assist homeless people to find and stay in permanent housing.  Since February 2005, about 780 people have been housed in a variety of rooming houses, private apartments and social housing.  The program includes dedicated follow up and support services that are intended to help people stay in their homes. 

 

4) City of Vancouver Homeless Outreach Project

 

This project began in 2005 to get the homeless off the street, one by one.  Two outreach workers go out on the street near dawn, engage one of the hardest-to-serve homeless, get them registered for welfare assistance and into his/her own housing by noon.  There are no resources in place immediately and yet 80% of these clients are still in housing, even with mental health issues, addictions and trauma of many kinds.  There is no funding for an organized support system.  If clients really cannot stay in housing without it, then these outreach workers find what they can.  The goal is simply to take the ‘worst’ off the street, the people who have remained outside for years, slowly deteriorating physically and mentally.

 

5)      Project Homeless Connect

 

This project for assisting individuals off the streets into housing has been initiated in Tempe, San Francisco, San Diego.  The outreach teams are comprised of street outreach workers, police, fire officials, business, churches and non- profit agencies.  A holistic support system is in place to work with the clients.

 

CONCLUSIONS

 

In general, the experience in Ottawa matches the lessons learned elsewhere:

·         Housing alone is not enough.  The support services that help people stay in their communities and in their homes are a necessary part of the solution.

·         Housing costs money.  New York is investing over $1.3 billion to build or acquire new housing, plus over $250 million a year to provide dedicated support services.  Since 2004, Ottawa has received a total of $22 million from the Federal and Provincial governments to build new affordable housing, but there has not been an increase in permanent funding for supportive housing services since 1993.

·         Senior levels of government need to be committed to the solutions with long-term, sustainable funding.  In the case of New York/New York agreements, sources noted that executive leadership at the state level was required to compel various agencies to work together for the multi-jurisdictional purpose of developing permanent supportive housing for the homeless with severe mental illness. 

·         Coordination between governments, and within governments, is an important part of the solution.  For example, the Ministry of Municipal Affairs and Housing funds capital supportive housing units and the Ministry of Community and Social Services fund the supports to the units.  A coordinated response would involve representatives from the Ministry of Housing to work with communities to develop local plans to meet the need for supportive housing.

 

The New York Model has demonstrated that understanding and having the ability to identify the cost implications in addition to the social impacts of the homelessness issue is a key component of a homelessness strategy.  The New York Model effectively builds a business case that demonstrates the return on investment of providing housing and housing support services to achieve the outcome of moving homeless individuals to homes.  The business case demonstrates the long-term reduction in the cost of publicly funded services when the interventions are focused on housing the homeless versus servicing the homeless on the street.

 

The City of Ottawa has developed a number of innovative approaches to addressing the homelessness issue within the existing funding and policy framework.  In order to complete a business case similar to the New York Model for the City of Ottawa, staff would need to analyze the current costs of municipal services provided to the homeless population in Ottawa versus costs associated with supportive housing options for the 2,000 individuals currently on waiting lists, in shelters, and rooming houses.  The business case will allow the City to identify the specific areas where we can maximize the value of the current community investments that will directly contribute to the achievement of the objectives of a housing first strategy.   Likewise, research needs to be conducted to ascertain what funds can be expected from other levels of government in support of the housing first implementation plan. 

 

Staff recognize the need for leadership on this issue to move forward.  Understanding the current costs of homelessness in Ottawa and the current needs of homeless individuals in our community to move from homelessness to homes will assist the newly formed Community Capacity Building leadership table to be a strong voice to advocate for intergovernmental partnerships, policy changes and adequate funding.

 

 

 

 

CONSULTATION

 

The Housing Branch recently consulted with members of the Community Capacity Building Steering Committee and service managers in Toronto and Vancouver.

 

 

FINANCIAL IMPLICATIONS

 

There are no financial implications associated with this report.

 

 

SUPPORTING DOCUMENTATION

 

Document 1: “The Cost of Homelessness: Analysis of Alternative Responses in Four Canadian Cities” Prepared by Steve Pomeroy for the National Secretariat on Homelessness, March 2005

 

DISPOSITION

 

Housing Branch will continue to provide information as requested.

 


 

                                                                                                                        Document 1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Cost of Homelessness:  Analysis of Alternate Responses in Four Canadian Cities

Executive Summary

 

 


Prepared for

National Secretariat on Homelessness

Prepared by

Steve Pomeroy

Focus Consulting Inc.

 

Final Report March 2005

 

 


 

 

Executive Summary

While the homeless population is diverse, both Canadian and US research have documented the phenomenon under which a relatively small number of chronic homeless individuals consume a disproportionate volume of resources, primarily in the institutional and emergency parts of the system.  In many cases, these individuals suffer from mental health and substance abuse and require ongoing treatment and supports in order to live in the community.  Supportive housing, with levels of supports designed and funded in accordance with the particular needs of target populations can be effective in enabling such individuals to live in a community setting.

 

At the same time a much larger population of individuals, including youth, recent immigrants adult singles and families, experience periods of difficulty related primarily to economic circumstances.  A mismatch between earning capacity, income and the cost of housing result in situations where such households are either “at risk”, or experience a period of homelessness due to rental arrears and eviction. These homeless individuals, or in some cases families, also tend to consume resources, largely in the emergency system – shelters and hospitals as well as in the criminal justice system, especially pre-sentencing lockup/detention facilities as well as corrections facilities.

 

This report updates two separate analyses undertaken in 1998 and 1999 in Toronto and Vancouver respectively to develop current estimates of the relative cost of addressing homelessness across a range of responses.  It also expands on the earlier analysis by adding data for two other cities, Montreal and Halifax.

 

The primary research question examined is the relative cost of addressing homelessness through institutional and emergency response systems, such as psychiatric hospitals and treatment centres and emergency hostels and shelters compared to purposefully designed community based supportive and affordable housing.

 

The current analysis involves first a brief literature review to determine the extent to which other research has measured and documented relative costs and benefits of institutional/emergency versus supportive housing options.  Subsequently, cost estimates were developed for a cross section of responses to homelessness, based on current practices and case studies of existing service providers in Vancouver, Toronto, Montreal and Halifax.


 

Overview of Literature Review

A recent comprehensive literature review completed in Australia (AHURI, 2003) documents a number of research findings that clearly quantify reductions in costs associated with hospital admissions, use of emergency outpatient services, reduced incarceration and lower use of emergency shelters when secure housing and appropriate support services are made available to homeless individuals.  This research evidence covers a spectrum of client types including those with mental illness, substance abuse, youth and veterans.

An additional literature review, which is predominantly Canadian, tends to focus more particularly on mental health research, similarly quantifies positive outcomes and reduced expenditures for supportive housing relative to hospital and institutional costs.

 

In particular, the City of Toronto shelter audit and the assessment of the Toronto Tent City emergency pilot point to some critical barriers and constraints in the homeless system.  The backlog of extended stays in the Toronto shelter system is a reflection of insufficient capacity in the transitional and supportive parts of the system through which shelter users should ideally transition.  While the Tent City pilot demonstrates that even long term homeless victims can be successfully housed, and more significantly can retain their housing with some limited ongoing supports, the level of rental assistance that facilitated this outcome is not normally available under existing programs.  In the absence of an emergency situation and politicized process to adjust program rules and funding levels, this pilot could not be replicated.  Specifically the levels of rental allowances available are insufficient to cover the costs of accessing existing accommodations, which is a prerequisite to securing appropriate housing. 

 

Methodology Used in Costing Analysis

The analysis of cost used two approaches.  The first approach examined a cross section of existing institutional, emergency and supportive housing in each city.  Costs were extracted from recent financial statements or obtained directly from operators. 

 

One issue in using the costs of existing service providers is that they typically operate in premises that are either owned outright by the operator, or were funded and receive ongoing subsidies based on historic building costs that are no longer realistic.  Accordingly a second step in the costing process involved the development of cost estimates assuming the premises were built at today’s costs. 

 

The new developments are assumed to carry ongoing subsidies to fully amortize the capital cost of this new development (based on assumption that any rent payments used to support operating and mortgage financing derive from income assistance and are thus an indirect additional public cost).  

 

In both cases, support service costs are added to the property operating and debt servicing costs to determine total ongoing cost estimates.  These current costs are then compared against a range of institutional and emergency operations.  Comparisons are on a per day and annualized basis. 

 

Highlights from the Costing Analysis – Existing Facilities  

·      Overall costs tend to be significantly higher for institutional responses than is the case for community/residentially based options – even when a fairly high level of service is provided in the later.  Institutional uses often incur daily costs well in excess of $200/day and depending on facility and city reaches as high as $600/day.

·      Emergency services also tend to involve higher costs than the community/residentially based options.  On a daily basis costs to operate emergency shelters – providing a bed, three meals and minimal supports, are in the order of $25-$110.  The low end reflecting only overnight dormitory style accommodation; the high end including 24/7 service and a higher degree of support services.  Again these vary across cities, facilities and across client groups.  They are lower for singles than families, although if determined on a per person basis this later variation would be much narrower (the high end reflects mainly meal allowances for a 4 person household living in a motel).

·      The cost estimates for transitional and supportive housing suggest a wide range mainly due to the very diverse range of client types.  However, even at the high end (roughly $60 per day) these are lower than institutional and emergency costs.

On an annualized basis costs in existing responses, averaged across the four cities are:

·      Institutional responses (prison/detention and psychiatric hospitals): $66,000 to $120,000;

·      Emergency shelters (cross section of youth, men’s women’s, family and victims of violence): $13,000 to $42,000;

·      Supportive and transitional housing: $13,000 to $18,000; and

·     
Affordable housing without supports (singles and family): $5,000 to $8,000.

Highlights from the Costing Analysis – New Residential Developments  

When estimates are developed for new construction costs and these are combined with current support costs across a range of support levels from no supports to fairly intense, the costs of supportive housing options remain significantly lower than costs of institutional and emergency services for comparable sub-populations of homeless individuals and families (costs for institutional and emergency options reflect current costs – no attempt was made to develop parallel cost estimates for new development of such facilities).   

·      With these updated costs, supportive housing with a high level of support, including 24 hours/7 days per week staffing involves just over two-thirds (70%) of the cost of institutional tertiary care.

·       Supportive and transitional housing such as that provided by organizations like the John Howard Society and Elizabeth Fry, as well as groups homes for individuals at risk of homelessness involve costs up to one-tenth (6%) those for incarceration of provincial corrections facilities.

·      The cost of supportive or permanent housing with minimal supports is roughly 30% to 73% that of the cost of operating emergency shelters.  Savings for emergency shelters is most significant where families can be diverted quickly into residential options, rather than occupying shelters or motels.  

Relative Cost of Institutional /Emergency Response and Comparable Supportive Options (average across cities)

 

Option A (Inst/Emergency)

 

Option B (Supportive) *

Cost Comparison

(B/A)

A-1 Psychiatric Hospital or Treatment Centre

B-1 Shared Dwelling/High Support

70%

A-2 Detention Centre/Lock-up

B-2 Shared Dwelling/Light Support

6%

A-3 Singles Emergency Shelters

B-3  SRO Unit/Light Support

73%

A-4 Family Emergency Shelters

B-4 Family 3 Bed T/H - Light Support

30%

* (Support levels “Light” and “High” defined in section 3)

 

These costs reflect total costs to government and assume that in most cases program clients will also receive income assistance benefits – the shelter component of these benefits is included in the supportive housing costs (amortized and included in annual estimate).  In cases where tenants are successful in moving into the labour force, either part time or full time, subsidy costs may be reduced and governments will generate revenues from taxes.  This analysis does not include any such ancillary revenue impacts.  As such costs of supportive housing used in this report may be over stated and represent a conservative “worst-case” cost to government.


 

In addition to the expenditure impacts reported here, various evaluations documented in the literature review also reported improved non financial outcomes in terms of improved quality of life and increase individual or family satisfaction with community based responses compared to former institutional experience.

 

What does this mean for future policy and program initiatives?

This analysis has identified cost comparison in existing and new facilities where a large portion of the costs are fixed, not marginal.  The real estate operating costs are incurred regardless of whether units or beds are occupied or vacant, and there is no saving when facilities are occupied below capacity.  In the case of support costs, these are, to a large degree, driven by case-loads of support workers, but even here a relatively standard number of staff and associated overhead costs are usually retained, so again costs do not decline with lower case loads.

 

Where the cost advantage of the supportive and affordable housing options become meaningful is in addressing future demand, which will inevitably increase as populations continue to expand.  Directing new investment to the lower cost (and arguably more effective) supportive option is likely to be more cost efficient than investing in new prisons, psychiatric hospitals and emergency shelters.

To the extent that the supportive options help to divert or accept clients of existing institutional and emergency options, the existing capacities can be used more effectively and large capital investments minimized (or reallocated to supportive community based options). 

 

Focusing more specifically on emergency shelters that are specifically intended to address homelessness, it is evident from this analysis that investment in long-term supportive options, and potentially in affordable independent living, is a better form of investment than directing limited funds to build more emergency shelters.

 

A critical issue in achieving these outcomes is that current resources are consumed by existing facilities, and these are operated and funded in different jurisdictions and by different departmental budgets.  New funding to implementing these options is required.  However in securing new funding, or reallocating from potential efficiencies there is an interdepartmental and intergovernmental constraint. 

 

Health and social service ministries and agencies are key players in designing and funding support services. Meanwhile housing funders and providers, especially non-profit community based organizations have valuable expertise in operating and managing the necessary residential properties to which support services can be attached and integrated.  Increased cross-sectoral collaboration and capital planning will be required to implement a complete and well functioning continuum.


Need to insert Citizen article