Ability Housing

The cost to the community of the homeless and those adults with disabilities is significant. By providing a foundation for many of those in need, the community can reduce the financial impact, while improving blighted communities and a solid home life for families. Unfortunately, it is expected that the need will continue to grow considering the current economic conditions, with families being the fastest growing segment.

19% of the homeless in 2008 were children under age 18.

According to the Department of Children and Families, “The local homeless coalitions expect the number of homeless to increase based on demands for services and other housing and economic trends. These include:

• The downturn in the national economy;
• Florida’s growing number of filings for foreclosure;
• Increasing numbers of applicants for cash assistance, food stamps and other benefits;
• Rise in demand for local food and feeding programs by as much as 30% over last year;
• Declining revenues for local and state government human service and housing programs.”

“Long term solutions to effectively reduce or end homelessness will depend on ensuring that each individual or family has the financial ability to find and maintain housing that they can afford.” (Homeless Conditions in Florida 2008)

The Department of Children and Families reports 37.7% of homeless persons interviewed during the 2008 annual count reported employment/financial issues as the primary cause of their homelessness. (There were a reported 59,036 homeless Floridians in 2008; 32,752 were interviewed; 12,346 reported employment/financial issues as the primary cause of their homelessness.)

These families require an affordable place to live and support services to stabilize the family. Studies indicate that families that are re-housed quickly typically require less and shorter-term support services.

The Cost of the Chronicly Homeless

In addition to the other positive impacts, ability housing also helps those homeless persons that are classified as chronic. These are individuals that have been homeless for an extended period of time and frequently have mental health and/or substance use disorders. The Journal of the American Medical Association (JAMA) reports that mortality rates among this population are “three or more times that of the general population.” Remaining homeless increases the likelihood these individuals will use public services, at a high cost.

• JAMA further reports “the provision of housing reduces hospital visits, admissions, and duration of hospital stays among homeless individuals”.
• “Chronically homeless individuals with severe alcohol problems often have multiple medical and psychiatric problems and use costly health and criminal justice services at high rates.” Providing supportive housing “showed total cost rate reduction of 53%.”
• Another JAMA study reports “offering housing and case management to a population of homeless adults with chronic mental illnesses resulted in fewer hospital days and emergency department visits” with a 29% reduction in hospitalizations and a 24% reduction in emergency department visits.”
• Supportive housing resulted in a “net savings of $3,822 per housed person per month, after accounting for the housing program costs” and a preliminary report showed two-thirds of the study participants remained housed after one year.

The State of Florida Supreme Court report “Transforming Florida’s Mental Health System” demonstrates the cost to the criminal justice system of inadequate community based care and affordable housing. “On any given day in Florida, there are approximately 16,000 prison inmates, 15,000 local jail detainees, and 40,000 individuals under correctional supervision in the community who experience serious mental illness (SMI). Annually, as many as 125,000 people with mental illnesses requiring immediate treatment are arrested and booked into Florida jails. The vast majority of these individuals are charged with minor misdemeanor and low level felony offenses that are a direct result of their psychiatric illnesses. People with SMI who come in contact with the criminal justice system are typically poor, uninsured, homeless, members of minority groups, and experience co-occurring substance use disorders. Approximately 25% of the homeless population in Florida has an SMI and over 50 percent of these individuals have spent time in a jail or prison.”

“To put this in a more acute perspective, the State of Florida currently spends roughly a quarter of a billion dollars annually to treat roughly 1,700 individuals under forensic commitment; most of whom are receiving services to restore competency so that they can stand trial on criminal charges.”

While the report focuses on changes needed to the mental health care system, affordable housing was recognized as an integral aspect of the solution. Among the report’s recommendations is a Housing Initiative to “develop and enhance housing resources that are linked to appropriate levels of mental health supports and services.”

Adults With Disabilities

According to the Agency for Person With Disabilities, the cost savings of community-based services are:

• Savings vs. a group home – $20,000 per person per year
• Savings vs. a nursing home – $60,000 to $70,000 per person per year
• Savings vs. state hospital – $100,000+ per person per year

To demonstrate the cost effectiveness of Ability Housing’s programs, were each of the residents of the CASA program to receive services in a group home rather than supported living services in a CASA home, the state would have spent approximately $5 million more in Medicaid expenditures since 1999.

In addition to the community, Ability Housing’s programs positively impact each resident. According to the Agency for Persons with Disabilities, personal outcomes are 50% better when support services are provided in the community, in a home of one’s own, rather than when provided in a nursing home or other facility-setting.