The Business Case for a Housing Based Approach

The Business Case for a Housing Based Approach to Reduce Homelessness Region of Waterloo November 22 nd 2007 Steve Pomeroy Focus Consulting Inc

Making business case increasingly important A prosperous nation like Canada should not have homeless on the streets It costs more to do nothing than to design and implement a purposeful transitional and supportive housing initiative targeted to people experiencing homelessness Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 2

Similarly in Region’s Affordable Housing Strategy Sound economic impacts: • Region of Waterloo (1, 014 units) per capita output exceeds Ottawa (950) or Toronto (2, 912) • For every $1 invested by the Region of Waterloo: $10 invested from other sources • PV on new property tax revenues will exceed total $11 million initial investment • AHS Units help to maintain an overall Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 healthy rental market in Waterloo Region 3

What are the default costs of homelessness Early childhood education effects Future labour market effects Temporary use of emergency shelters High usage of emergency and institutional systems by people experiencing persistent homelessness - at significant costs Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 4

Research Literature Researchers (Culhane, Burt and others) highlight the following cost impacts: A relatively small number of people experiencing persistent homelessness consume a disproportionately large volume of resources. There are significant negative impacts on the health, welfare, and educational situations of people experiencing homelessness. Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 5

Research Literature Stable housing for people experiencing homelessness generated cost savings in a range of support services areas. Stable housing increases the likelihood of employment and thereby both increased income and reduced dependency on government income support. People experiencing homelessness with complex health needs impose a greater cost burden on support services compared to people with similar needs who are housed. Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 6

Key issues Utilization rates and frequency (compared to non–homeless) Type of institutional and emergency services used Cost of these services Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 7

Cost per day: Housing vs. Emergency and Institutional Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 8

Does Million Dollar Murray live in Waterloo? 10 YEARS OF HOMELESSNESS ON AND OFF STREETS Service Type Frequency Emergency shelter 6 x 60 days+ Police pickup 13 Ambulance callout 5 Hospital emergency 7 Lockup 2 Court appearance 2 Psych hospital 13 x 90 days (ave) Focus Consulting Inc STABILIZED IN SUPPORTIVE HOUSING FOR 1 YEAR Last year after placement in supportive housing: no police callouts, no ambulance transports, no days in emergency shelter no admittance to emergency or psychiatric wards Region of Waterloo Nov 22 nd 2007 9

With apoligies to Mastercard 10 years on and off streets: $560, 000 1 year in supportive housing: $22, 630 Improved quality of life: Priceless Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 10

Policy Implications Supportive and residential programs (housing first) are an effective investment Sunk costs in system. Few savings, but opportunities for improving use of existing resources and redirecting new investment to community S&T (and Permanent Housing) Inter-sectoral silos – who saves who pays? Focus on prevention and diversion – a housing stability and housing first approach Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 11

Thank You Focus Consulting Inc Region of Waterloo Nov 22 nd 2007 12