The combination of recent terrorist activity occurring in the United States and a slowing national economy is likely to have a substantial impact on low-income families and government spending priorities.  Increases in unemployment may mean that low-wage workers who left welfare for work; worked, but still received welfare; or worked, but never received welfare, will face loss of income and increased hardship.  Since housing costs comprise the largest proportion of a low-income household’s expenditures, the new economic environment may increase the number of families who are unable to make rent or mortgage payments, and who may potentially face homelessness.

Federal and state funding streams for homelessness prevention-related services are fairly fragmented and limited, making it difficult to address the problem in a comprehensive or rapid way.  For example, the Stuart B. McKinney Act programs, which serve as the umbrella for homelessness programs funded through the U.S. Department of Housing and Urban Development (HUD), include just one primary funding source eligible for homelessness prevention activities—the Emergency Shelter Grants (ESG) Program.  In fiscal 2001, HUD allocated $149.67 million to 366 eligible grantees in the ESG program.  However, eligible grantees must first apply for the funds and may allocate no more than 30 percent of their total ESG award to homelessness prevention. (U.S. Department of Housing and Urban Development, March 2001)     

 

In addition to ESG funds, states and localities may want to consider using Temporary Assistance for Needy Families (TANF) and/or TANF maintenance-of-effort (MOE) funds to provide short-term aid to families falling behind on rent, mortgage, or utilities payments.  Initiatives that address individuals’ poor credit and eviction histories, as well as landlord-tenant eviction mediation services may also reduce the incidence of homelessness.  To date at least 34 states provide housing-related benefits as part of their TANF programs to families meeting state-established emergency criteria. (Sard; April 3, 2001)  This Resources for Welfare Decisions describes publications and resources for preventing homelessness, as well as examples of state and local homelessness prevention initiatives.      

In addition to this resource, see the related WIN Issue Note: “Transitional Services for Homeless Families,” http://www.welfareinfo.org/homelesstransition.htm, and WIN Promising Practice: “Beyond Shelter,” http://www.welfareinfo.org/Beyondshelterincalifornia.htm.  Please also refer to the following web pages: Homelessness at http://www.welfareinfo.org/homeless.htm, Housing at http://www.welfareinfo.org/housing.htm, and Hard to Place at http://www.welfareinfo.org/hard.htm.

Publications and Electronic Resources

Emergency and Transitional Shelter Population: 2000, Census 2000 Special Reports, October 2001, by Annetta Smith and Denise Smith, U.S. Census Bureau.  This report provides data from the 2000 Census on people experiencing homelessness, challenges in counting the homeless, characteristics of the emergency and transitional shelter population, and more, (202) 512-0000. 

http://www.census.gov/prod/2001pubs/censr01-2.pdf.

Homeless Prevention in the Emergency Shelter Grants Program, March 2001, by the U.S. Department of Housing and Urban Development, Office of Community Planning and Development.  This paper describes the ESG Program, eligible program expenditures, and examples of such grantee activities as the provision of short-term financial assistance, tenant-landlord mediation services, and legal services to prevent eviction. http://www.hud.gov/offices/cpd/homeless/library/esg/esgprevention2.PDF.

Homelessness: Barriers to Using Mainstream Programs, July 2000, by the U.S. General Accounting Office.  This report explores why homeless people cannot always access or effectively use federal mainstream programs (i.e., Medicaid and food stamps) and how the federal government can improve homeless people’s access to, and use of, these programs, (202) 512-4800. http://www.gao.gov/new.items/rc00184.pdf

Homelessness: Recent Statistics and Targeted Federal Programs, October 29, 2001, by M. Anne Wolf, Congressional Research Service.  This paper presents findings from two studies released in December 1999 on the homeless.  It also describes more than a dozen targeted federal programs and activities created specifically to address the needs of homeless people.  It includes funding figures for these programs from fiscal 1997 through the fiscal 2002 Administration request, (301) 229-8229.  http://pennyhill.com/welfare/rl30442.html.

Homelessness in America: A Review of the Literature, January 2001, by Heidi Sommer, Institute for Governmental Studies, University of California-Berkeley.  This composite reviews research and analysis related to homeless counts/characteristics, causal theories of homelessness, potential responses to addressing homelessness, and more. http://www.igs.berkeley.edu:8880/events/homeless/NewHomelessnessBook1.pdf.

The Increasing Use of TANF and State Matching Funds to Provide Housing Assistance to Families Moving from Welfare to Work, February 2000, by Barbara Sard and Jeff Lubell, Center on Budget and Policy Priorities.  This report examines the shortage of affordable rental housing, state and local housing programs using TANF or MOE funds, and considerations in using such funds to provide housing subsidies, (202) 408-1080.  http://www.cbpp.org/2-17-00hous.pdf.

Using TANF Funds for Housing-Related Benefits to Prevent Homelessness, April 3, 2001, by Barbara Sard, Center on Budget and Policy Priorities.  This paper explains how states can use TANF funds to prevent or alleviate homelessness and the number of states providing such benefits, (202) 408-1080.  http://www.cbpp.org/4-3-01TANF.htm.

What Will it Take to End Homelessness? September 2001, by Martha Burt, Urban Institute.  This brief describes characteristics of homeless families, factors contributing to homelessness, and approaches states and communities can take to prevent homelessness (i.e., credit counseling, landlord mediation, housing trust funds, building/renovation incentives), (202) 833-7200. http://www.urban.org/housing/homeless/end_homelessness.html.

 

Resource Contacts

Center on Budget and Policy Priorities, Barbara Sard, (202) 408-1080 or http://www.cbpp.org/.

Housing First! Campaign for Affordable Housing for All New Yorkers, http://www.housingfirst.net/.

 

Institute for the Study of Homelessness and Poverty, Weingart Center, Paul Tepper, (213) 689-2281 or paul@weingart.org at http://weingart.org/institute/.

 

National Alliance to End Homelessness, Nan Roman, (202) 638-1526 or http://www.naeh.org/.

 

National Coalition for the Homeless, (202) 737-6444 or http://www.nationalhomeless.org/.

 

National Law Center on Homelessness and Poverty, Maria Foscarinis, (202) 638-2535 or

http://www.nlchp.org/.

 

Supportive Housing Network of New York, Maureen Friar, (212) 870-3303 or

http://www.shnny.org/.

 

U.S. Department of Health and Human Services, Homelessness Programs,

http://aspe.hhs.gov/progsys/homeless/inside.htm.

 

U.S. Department of Housing and Urban Development, Homelessness Programs, (202) 708-1112 or http://www.hud.gov/homeless/index.cfm.

 

Urban Institute, Martha Burt, (202) 833-7200 or http://www.urban.org/.

What States and Communities are Doing

Alaska: The state department of health and social services uses supportive service payments funded by TANF and MOE to ensure eligible recipients are in safe housing close to employment opportunities.  This typically entails helping with first and last month’s rent payments to secure housing, helping families who have already paid rent, but have an immediate need to change their housing situation and paying unmet costs caused by unanticipated loss of income.  The state also uses TANF to provide short-term housing services to families temporarily residing in domestic violence shelters.  These families are considered to be homeless and the shelter provides housing, counseling, and other services.  Contact Carolyn Spalding, Alaska Department of Health and Social Services, (907) 465-2340.

California: Beyond Shelter, a nonprofit organization based in Los Angeles, offers a variety of services to address and prevent homelessness.  Its “Housing First” program promotes early relocation to permanent housing by moving homeless families referred from 35 agencies into affordable rental housing in the neighborhood of their choice.  Case managers conduct in-depth needs assessments, match families with housing, and provide individualized, supportive social service up to 12 months following the move.  Beyond Shelter maintains relationships with the landlords to provide immediate crisis intervention and avoid a recurrence of homelessness.  The City and County of Los Angeles allocate Section 8 housing vouchers to Beyond Shelter each year for families in need of an ongoing housing subsidy.  Beyond Shelter also serves as the central coordinating agency for Los Angeles County’s Emergency Food and Shelter Program Rent Assistance Program which uses Federal Emergency Management Agency funds to pay the first month’s rent for homeless families with children or disabled homeless adults.  Beyond Shelter’s development affiliate, the Housing Development Corporation, develops, owns, and operates service-enriched affordable housing as well as develops family support and child care centers.  Contact Tanya Tull, Executive Director, (213) 252-0772.  See also http://www.beyondshelter.org/.

Connecticut: The state sponsors TANF MOE two separate state programs to prevent homelessness.  Connecticut’s Safety Net Program serves former TANF cash assistance families who have been sanctioned off of assistance.  Among its services, the program offers emergency payments to prevent eviction.  The state’s Transitionary Rental Assistance Program provides rental subsidies to former cash assistance recipients for up to one year after they leave assistance with earnings above the welfare payment standard, but below the federal poverty level.  Contact Kevin Loveland, Connecticut Department of Social Services, (860) 424-5031.

 

Iowa: The state’s Housing-Related Emergency Assistance program provides up to $500 per year to a family with a child under age 18 or expected to graduate high school or the equivalent by age 19.  The program is available statewide to homeless families and those at-risk of becoming homeless.  Benefits are provided only during one 30-day period in any 12 consecutive months.  Benefits are provided by vendor payment and include rent, house payments, utilities, purchase or repair of heating equipment, rent and utility deposits.  To qualify, a family’s income must be at or below 100 percent of the federal poverty level and assets cannot exceed $1,000.  The program is funded on a state fiscal year basis and uses 100 percent federal TANF funds.  Emergency Assistance is intended to be the program of last resort when no other sources of assistance are available.  Contact Mark Adams, Iowa Department of Human Services, (515) 281-6249.

 

Wisconsin:  The City of Wasau partners with area employers to create employer-assisted home ownership programs for their employees.  The city provides loans of $2,500 at two percent interest.  The interest is deferred for five years and then repaid over the following five years.  The employer provides an additional loan of $1,000, which is forgiven if the employee remains with the company for five years.  The employee must put up $500 of his/her own money for a total of $4,000 to cover down payment and closing costs.  Income eligibility is based on HUD guidelines.  Buyers who are not employed by one of the participating firms may still apply for the program, but must contribute $1,000 of their own money.  Contact Ann Werth, (715) 261-6680.    

 

WIN Staff Contact: (202) 628-5790 or welfinfo@welfareinfo.org

 

The Welfare Information Network is supported by grants from the Ford Foundation, the Annie E. Casey Foundation, the Charles Stewart Mott Foundation, the David and Lucile Packard Foundation, the Edna McConnell Clark Foundation, and the Administration for Children and Families, U.S. Department of Health and Human Services.