Summer Economics/ CS 2006

The History of Homelessness in America (Written by Tierney Morikawa)

Background Information

Picture found at: http://www.studentsagainsthunger.org/advocacy/advocacy.asp?id2=15797

Homelessness has existed in America for centuries, but it was not recognized as a national problem until just two decades ago. The truth is that homelessness became a national issue in the 1980’s because of the tremendous impact of the 1973 recession that led to an increase in unemployment and underemployment throughout the country. Approximately 40 million people lost their jobs, and new employment opportunities that arose after the recession did not offer employees financial stability. Many people, unable to pay their bills, became homeless, and others who were homeless prior to the recession only suffered more during times of reconstruction (1). Furthermore, as the National Alliance to End Homelessness stated, “mainstream social programs such as welfare, health care, subsidized housing, and substance abuse treatment—programs that provide long-term income and services support—started shifting responsibility for very poor people to this small and under-funded homeless assistance system. This left homeless assistance programs overburdened and unable to address prevention or move the masses of newly homeless people back into housing.” Therefore, the number of homeless Americans continued to rise, and has increased by about 100% in the last decade (2).

Researchers have had a difficult time calculating the exact number of homeless citizens each year, but they estimate that in the 1990s, there were about 700,000 homeless citizens each night and up to 2 million each year. In the last few years, that number has escalated even more. Today, as many as 3.5 million Americans (11% of the poor population) are homeless each year (3).

How has the federal government impacted homelessness in America?

In the mid 1980’s the federal government began to receive pressure from groups of people across the nation that wanted to see effective remedies for the homelessness problem. Thus, in order to deal with the issues at hand, Congress passed the Stewart B. McKinney Homeless Assistance Act, the first major piece of legislation to deal with homelessness. The act includes fifteen programs and works with over 3,700 agencies to deal with homelessness issues ranging from adequate work benefits and payment, to accessible health care, to emergency shelter and housing (4). However, despite the positive efforts made by the federal government to remedy the homelessness issue, the law has, unfortunately, had a negative impact on the homeless, as well. Many people refer to the negative impact of the law as the criminalization of America’s homeless.
A fact sheet on homelessness published by the National Alliance to End Homelessness states that “most people who experience homelessness (80%) are homeless for a short period of time, and usually need help finding housing or a rent subsidy.” Nevertheless, according to the organization’s research, a “portion of the homeless population (20%) is homeless for long periods of time or cycle in and out of homelessness” (5). This cycle that causes long-term homelessness is often caused by significant barriers to exit. Because many cities across the nation have established anti-lodging and anti-panhandling laws in order to discourage solicitation and loitering, numerous homeless have been jailed for breaking these laws. As a result, many of America’s homeless have criminal records. Therefore, when homeless go to seek employment or government assistance, officials see the blemishes on their records and automatically turn them away (6).

Less than a mile from the nation's capital, American citizens have made the street their home.
(Picture found at: http://www.icresource.com/WGNS/PHOTO/images/HomelessManonGrate-288.jpg)

Causes of Homelessness

Homelessness in America is primarily caused by one or more of the following:

(a) A lack of affordable housing
(b) A shortage in work opportunities that offer decent wages
(c) Drug or alcohol misuse
(d) Mental Illness
(e) Limited public and government assistance (7)

Nevertheless, of all the roots of homelessness in America, lack of affordable housing and low income are, by far, the leading causes. Year after year the price of housing in America significantly increases, yet the average wages remain relatively the same. Because of these conditions, many Americans have had difficulty paying their housing bills and other living expenses each year. As freelance journalist, Silja J.A. Talvi, wrote in an article entitled Homelessness Is a Serious Problem, “Low-income people are confronted with soaring housing costs and tight rental markets nationwide. A recent national survey from the National Low Income Housing Coalition revealed that nowhere in the U.S. can a minimum wage worker afford fair market rental costs for a modest two-bedroom housing unit. In order to afford the median fair market rent for a two-bedroom rental unit, a worker would have to earn $13.87 per hour, or 269 percent of the federal minimum wage. (In 2000, roughly 2.7 million Americans earned minimum wage which, on a federal level, has remained at $5.15 since 1997.) Simultaneously, the number of housing units affordable to low-income households has dropped, year by year. According to a 2001 HUD [Housing and Urban Development] report, 1.14 million affordable housing units were lost between 1997 and 1999.” Talvi also reported that since the terrorist attacks of September 11, 2001, there have been many layoffs nationwide in the retail, hotel, and air transportation industries—industries in which many low-income minorities work (8). Therefore, many Americans are having challenges, not only bringing in a reasonable income, but maintaining jobs as well. Even those who work overtime have found it difficult to cover their housing bills every month, let alone the remainder of their living expenses.
Moreover, the housing issue appears to worsen every year in America. In January 2006, Naomi Spencer wrote an article for the World Socialist Web Site entitled US living standards in 2005 continued downward trend. In the article, she talked about the attempts made by Americans to meet rising housing costs by taking out additional loans. Spencer said, “Harvard University’s Joint Center for Housing Studies, in its State of the Nation’s Housing report, found that net growth in second mortgage debt nearly doubled in 2005 to $178 billion. The Federal Reserve pegged total noncommercial mortgage debt at $641 billion by the end of the third quarter. The heavy use of housing mortgages to meet daily expenses puts homeowners at considerable risk of an avalanche of debt or foreclosure in the event of an unexpected medical expense or job loss. It also increases the possibility that when the housing market deflates, as many economists project will occur in 2006, homeowners will be locked into paying enormously high amounts for homes worth significantly less upon resale” (9). Thus, the rising price of homes has not only worsened the nation’s homelessness problem over the past two decades, but is, at present, continuing to threaten a copious number of American citizens. The housing issue has been, and continues to be, a major threat to both the destitute and the average American civilian.

Another leading cause of homelessness is drug addiction. It is estimated that 34 percent of the homeless population suffers from alcohol or chemical addiction, and director of Street Outreach Services, Kris Nyrop, says that “waiting lists for publicly subsidized drug treatment can be as long as a year-and-a-half in major urban cities” (10). The addiction in itself causes major problems for Americans, because addicts will often use their housing funds to purchase drugs rather than pay the rent. Consequently, when they are evicted from their homes, there are not enough drug treatment centers to meet the needs of the addicts. Those who are sent to treatment centers rather than jail are the fortunate ones, but the transition from both the treatment centers and jail to the streets is tremendously difficult. Some addicts successfully recover, but they, too, have barriers to housing and employment. Most employers do not want to hire people with criminal records, and many public housing units turn away people who have committed drug misdemeanors. Therefore, many former drug addicts have no choice but to return to the streets.

Sources:
(1) http://www.usm.maine.edu/~Isavage/UrbanGeographyProjects/Homeless/homelessness_in_the_us.htm

(2) http://www.endhomelessness.org/pub/tenyear/NAEH_10yrplan.pdf
(3) http://www.answers.com/topic/homelessness
(4) http://www.hud.gov/offices/cpd/homeless/rulesandregs/laws/
(5) http://www.endhomelessness.org/pub/tollkit/facts.pdf
(6) http://www.answers.com/topic/homelessness
(7) http://www.usm.maine.edu/~Isavage/UrbanGeographyProjects/Homeless/homelessness_in_the_us.htm

(8) “Homelessness Is a Serious Problem” by Silja J.A. Talvi. Poverty and the Homeless. Mary E. Williams, Ed. Current Controversies Series. Greenhaven Press, 2004. Opposing Viewpoints Resource Center. Thomson Gale. 30 June 2006 Document Number: X3010342207

(9) http://www.wsws.org/articles/2006/jan2006/hous-j16_prn.shtml

(10) “Homelessness Is a Serious Problem” by Silja J.A. Talvi. Poverty and the Homeless. Mary E. Williams, Ed. Current Controversies Series. Greenhaven Press, 2004. Opposing Viewpoints Resource Center. Thomson Gale. 30 June 2006 Document Number: X3010342207

What is the current situation regarding homelessness in America? (Written by Myrel Agbayani)

Picture found at: http://www.studentsagainsthunger.org/images/homeless_alley.jpg

Homelessness has increased in the past years and there are many factors economically, politically, socially and medically, that cause it to occur. Under the economic factors, there is the issue of a lack of affordable housing. The National Student Campaign Against Hunger and Homelessness stated, "According to the National Low Income Housing Coalition, families across the country would need to earn a 'housing wage' of $15.37 an hour, nearly three times the current minimum wage to afford a two-bedroom apartment at the average fair market rent. West Virginia has the least expensive rental state, but the wage of $8.78 an hour would be needed just to afford a two-bedroom apartment." Everyone in America is facing this housing problem. There are also the issues of low incomes and lack of affordable medical care that falls underneath the economic factors. The current minimum wage nationally is 27% less than it was in 1968, making it harder to live a standard life. For health care, a family could spend up to $8000 a year. These issues lead to the question of, what should be sacrificed, food, health care or housing?
Politically, there is a lack of government intervention. There are cuts in federal assistance for housing programs and social services and that is definitely not needed. The campaign also said, "Without a safety net to help, many of the lowest income people must choose between things like food, medical care, and housing to make ends meet." There has been many requests from the homeless for more emergency shelters (3). There is a very high lack of awareness of programs. Nationally, only 19% of respondents taking a survey created by the Los Angeles Mission could name an agency or program that provides rehabilitation or job training for the homeless. At least 56% of the respondents were able to recognize food and/or shelter for the homeless (2).
Due to mental illness, drug addiction, and alcoholism, poverty is a possibility and people are at a greater risk of becoming homeless. 25% of the homeless population suffers from some form of mental illness and because of the high cost of health insurance, homeless people have no access to proper care to treat their mental illness. Also, 20% of the homeless population has a drug and/or alcohol addiction, but without affordable medical care, there's no way to help them with their addictions (3).

- In the U.S., more than 3.5 million people experience homelessness each year.
- 35% of the homeless population are families with children, which is the fastest growing segment of the homeless population.
- 25% are U.S. military veterans.
- 25% are children under the age of 18 years.
- 30% have experienced domestic violence
- 20-25% suffer from mental illness
- In urban communities, people experience homelessness for an average of eight months.
- 22% are employed
- On average, people remain homeless for 6 months (4).

(compiled by the National Student Campaign Against Hunger and Homelessness)

More fact sheets on some states can be found here (5).

Twenty-four cities (Boston, Burlington, Cedar Rapids, Charleston, Charlotte, Chicago, Cleveland, Denver, Detroit, Los Angeles, Louisville, Miami, Nashville, Philadelphia, Phoenix, Portland, Providence, Salt Lake City, San Antonio, San Francisco, Santa Monica, Seattle, St. Paul and Trenton) took a "Hunger and Homelessness Survey" and compiled a list of their combined homelessness percentages.

- Requests for emergency shelter increased by an average of 6% with 71% of the cities registering an increase. Requests for shelter by homeless families alone increased by 5% with 63% of the cities reporting an increase.
- An average of 14% of the requests for emergency shelter by homeless people overall and 32% of the requests by homeless families alone are estimated to have gone unmet during the last year.
- In 88% of the cities, emergency shelters may have to turn away homeless families due to lack of resources; 79% may also have to turn away other homeless people
- People remain homeless an average of seven months and 87% of the cities stated that the length of time people were homeless increased during the last year
- 22% of homeless people in the cities are considered mentally ill; 30% are substance abusers; 15% are substance abusers; 15% are employed; 11% are veterans
- In 57% of the cities, families may have to break up in order to be sheltered. In 48% of the cities families may have to spend their daytime hours outside of the shelter they use at night.
- Requests for assisted housing by low-income families and individuals increased in 86% of the cities in the past year (1).

Sources:

(1) http://www.naeh.org/back/MayorsReport2005.pdf
(2) http://www.agrm.org/statistics/homerpt1.html
(3) http://www.nscahh.org/hunger.asp?id2=8802
(4) http://www.studentsagainsthunger.org/hunger.asp?id2=15770
(5) http://www.studentsagainsthunger.org/hunger.asp?id2=15771

(Pictures)
http://iws.punahou.edu/user/JStevens/project/bedshousing.JPG
http://iws.punahou.edu/user/JStevens/project/composition.JPG
http://iws.punahou.edu/user/JStevens/project/data.JPG
http://iws.punahou.edu/user/JStevens/project/cities.jpg
http://www.studentsagainsthunger.org/images/homeless_alley.jpg

What should be done about the national homelessness issue? (Written by Traci Aoki)


Picture found at: http://www.fanniemaefoundation.org/programs/hff/images/v4i5-homeless2.gif

According to the National Alliance to End Homelessness, about three million people in the U.S. experience homelessness each year (1). In order to fight this problem and finally bring an end to it, a number of steps must be taken.
First, we need to prevent homelessness before it happens. It seems as though the number of homeless individuals never goes down since as soon as people leave the homeless system, others enter and replace them. Mainstream programs need to place more emphasis on preventing people from losing their homes; only they have resources necessary to address housing, income, and service needs of the homeless and the potentially homeless. Such programs include Medicaid, Job Training for Disadvantaged Adults, Social Services, and Temporary Assistance for Needy Families (TANF) (1). Unfortunately, mainstream systems are in excessively high demand and are under-funded in comparison to their expected duties. The government must give more grants to them in order to prevent people from falling into homelessness. In addition, people at “immediate risk of homelessness” should be allowed access to the same services as actual homeless individuals. These people include those living in doubled up arrangements or motels, and people exiting metal health facilities, prisons, or addiction treatment programs. If this were allowed, these people would be eligible for services through HUD Kinney-Vento, an act designed to assist the homeless. As a result, they would have a smaller chance of actually becoming homeless (2).
Another important step in ending homelessness is moving homeless individuals into permanent housing as soon as possible. In order to do this, most homeless require assistance. Programs helping people get back into housing need to do more than just assist them in finding and securing permanent homes. They also need to allow them continued access to services such as credit counseling for at least a year after they get a home and should conduct follow-up visits to check up on them and prevent problems that could lead to eviction and cause them to become homeless once again. Obtaining permanent housing is a crucial step for those trying to get their lives back on track and improve their futures. Increased funding should be used to build more permanent housing, either from HUD McKinney-Vento funds, or through taxes (3).
Next, although in an ideal situation homeless individuals would be placed almost immediately into permanent housing, this is not a possibility. As a result, more funding is needed for Transitional and Supportive Housing. Transitional housing provides homeless with a temporary place to stay until they can find permanent housing. These shelters are especially necessary in areas where vacant permanent houses are scarce. Transition housing also gives shelter to people who are unable to make the “transition” to permanent homes quite yet as a result of problems such as mental illnesses or substance abuse. Furthermore, residents of transitional housing have access to services provided by the shelter with the intention of eventually getting them into permanent housing. These services include job training, education, and employment counseling. More federal grants need to be given to transitional housing to fund the services, as they are extremely important in training homeless individuals in skills they need to find and maintain employment (4)
Now, while many homeless individuals can benefit greatly from transitional shelters, others require more assistance. Supportive housing can help to provide this. Currently, it is estimated that there are 150,000 chronically homeless individuals in the U.S. These are people who live in the shelter system, and are unlikely to ever earn a significant amount of money because of disabilities they possess. Yet, studies show that permanent supportive housing, housing with the appropriate services, can help them immensely in getting their lives back together and improving their futures (5). Therefore, we must create enough supportive housing for this group. This is extremely important, as about fifty percent of homeless adults have alcohol problems, thirty three percent have drug addictions, and between twenty and twenty five percent have major mental illnesses (3). These people need help that supportive housing can provide. To end the homelessness of the chronically homeless population, about 150,000 units of permanent supportive housing has to be built. However, in order for the creation of this additional housing to occur, organizations would need to acquire an increased number of service providers and funds. As with regular permanent housing, money for additional permanent supportive housing could come from HUD McKinney-Vento funds, or from taxes. Now, taxpayers may complain about having to pay increased taxes to finance the construction of permanent supportive housing. However, if they look at the amount of money they could save in the future on such things as homeless services and Medicaid if these people become stabilized, they will realize that this plan could be beneficial to them as well.
Next, in order to discover the services most needed by the homeless population and find the best solutions, extensive research and data collection must be conducted. Information such as who is homeless, why and how they became homeless, and what mainstream assistance they receive must be gathered on a "city- or state-wide basis" (1). This allows "trends" to be discovered and can help to identify the main factors that lead to homelessness. It also tells service providers if they need to update certain services such as rent assistance and child-care programs to meet current needs. Furthermore, the data collected helps answer important questions such as "What assistance is most effective in facilitating the re-housing of homeless people?" and "What mainstream services do families need after they are housed so they don't become homeless again?" (1). Research and data collection is essential in the fight to end homelessness.
One of the major problems preventing people from owning homes is the current scarcity of affordable houses accompanied by low wages. The supply of homes is unable to keep up with the demand and unfortunately, the shortage is increasing. Moreover, the number of households in need of housing support has increased as the cost of homes has also increased and wages have decreased. According to the National Low Income Housing Coalition, "there is no community in the nation in which a person working a minimum wage job can afford to rent a one-bedroom unit" (1). Yes, America is currently experiencing a strong economy. However, people with lower incomes are not benefiting nearly as much as those of higher incomes. Furthermore, what they do gain from America's economic growth is unable to keep up with the rising housing costs (4). Therefore, the government should increase the amount of affordable housing available to low-income individuals, as well as the grants given to housing programs.
To help the homeless get their lives back on track and get back into homes, the communities throughout the U.S. must work together. In some cities, it is against the law to reside or loiter on public property and people are prohibited from begging. Basically, it is illegal to be homeless. However, this does nothing to solve the problem. By arresting homeless individuals, all police are doing is giving them a criminal record (or adding to them) and thus making it even more difficult for them to secure jobs. Without employment, the people will never be able to afford housing and get out of the homeless system. Instead of arresting homeless people, police should help them by directing them or taking them to shelters where they can also receive food and services.
Finally, more funding needs to be granted to organizations providing services to homeless and low-income populations. As mentioned earlier, these services are essential in helping them to get their lives back together and improving their futures. Such services include job training so they can earn a living, substance abuse programs, and courses in money management. According to studies, only fifty percent of people who need substance abuse treatment receive it. These services are extremely important, and are crucial if an end to homelessness is ever hoped to be achieved. Therefore, the government must provide adequate funding for them so that they can help the homeless population as best as they can.
Individuals can help by donating money to organizations helping the homeless such as Beyond Shelter or Help USA. As I mentioned earlier, services essential to homeless individuals such as job training and rent assistance are highly under funded and any donations to them would be welcome. Extra money for the construction of affordable low-income housing is also needed. According to research, the types of assistance homeless adults felt they needed most were help in finding affordable housing, securing jobs, and paying for housing. Yet, most of the assistance they received were clothing, transportation, and help with public benefits. In fact, only about seven percent of homeless adults had help in finding homes (1). Now, donating items such as clothes and new toothbrushes to homeless shelters is still helpful to them and needed. However, what homeless service organizations need most and are not getting enough of is funding. Therefore, if you really want to help out in the fight against homelessness, donate money to increase the amount of services and affordable housing available to homeless individuals.

Beyond Shelter website: http://www.beyondshelter.org/home.html

Help USA website: http://www.helpusa.org/site/PageServer

Sources:
1) http://www.endhomelessness.org
2) http://www.hud.gov/offices/cpd/homeless/rulesandregs/laws/
3) http://www.hud.gov/homeless
4) http://www.nlihc.org
5) http://www.nationalhomeless.org/housing

What can be done about homelessness in America? (Written by Shaun Chang)

Realistically, what can be done about homelessness on a national level? This question has been posed time and time again with many proposed solutions. Unfortunately, in our day and age, many people believe there are more pressing subjects and matters to attend to; but here’s a list of small solutions that I’ve come up with.

1) We, as a nation need to start getting the homeless off the street and into shelters or homes.

2) The government could offer a stipend to the homeless community to help “get them back on their feet”

3) Many homeless are unable to get jobs simply because employers are uncomfortable with the concept of a homeless employee. An act could be passed that created equality for the homeless in job situations, or a union could be created that did something similar.

4) A good deal of the homeless community have addictions to either illicit substances or alcohol. Rehabilitation centers could be developed all over the nation along with the one’s we already have to help the homeless break these old habits.

5) Only $1.7 billion a year is spent on solving homelessness, this may sound like a lot, but in comparison to the $175+ billion spent on the military alone, the budget for homelessness is trivial. If we were to divert 0.01% of the military budget to help combat homelessness, that alone would double the funds.

What are the “powers at be” not doing?

The government is not paying enough attention to domestic problems we have. Our politicians are so focused on “the war abroad” that they are unable to attend to problems like homelessness. Even when Hurricane Katrina devastated New Orleans, our government did not intervene until much later in the crisis, and efforts made to prevent the disaster were apparently minimal. If our government cannot make the proper efforts to prevent something as cataclysmic as the flooding of an entire state, how are we to expect the government to make efforts toward solving homelessness?

What impact could we have to change the current situation?

Sadly none of us could do much more for the national homeless community than raise a couple thousand dollars for donation. Though it is indeed the thought that counts, $5,000 thrown at the national homeless problem does little more than a scratch. Our abilities to solve homelessness in Hawaii are much stronger. We could donate food, money, old clothes, backpacks and all kinds of useful items to local homeless shelters. We could also volunteer to erect new shelters that could house even more homeless. Another thing we could do is raise awareness to local businesses that the homeless are people too, and deserve to be employed as well. All of the efforts I’ve proposed could be done on a national level, but would have a much smaller impact. It would be more helpful if all of our efforts were focused on solving homelessness in Hawaii first, then we can play Bono and save the rest of the nation. For more information on what you can do to help homelessness in Hawaii read Tierney’s article on what can be done on a local level.

What does the future situation look like?

If the nation continues down the path its going, homelessness will be in the exact same place it’s at right now in 5 years, or even 10 years. However, if our government has an epiphany and decides to stop our wars abroad, this would free up a lot of government funds and allow some of it to be spent on domestic problems like homelessness. If our nation were to travel down this path, I can foresee bright skies in the future of our nation’s homeless.

Sources:

http://www.ucc.org/justice/witness/wfj051302.htm
http://www.guardian.co.uk/katrina/story/0,16441,1561909,00.html