The issue of homelessness has grown into a significant crisis nationwide in recent years. However, a new study conducted by the University of Notre Dame demonstrates the effectiveness of homelessness prevention efforts.
The state of California, for instance, has experienced such a severe homelessness problem that mayors of major cities have declared a state of emergency. In response, California leaders have invested billions of dollars into homelessness programs, including those focused on prevention.
However, questions have arisen regarding the effectiveness of prevention programs, even from organizations dedicated to addressing homelessness. One of the challenges is targeting assistance to those with the greatest risk of becoming homeless.
To evaluate the impact of providing financial assistance to individuals and families at risk of losing their housing, researchers at Notre Dame conducted a randomized controlled trial. This trial assessed the effect of emergency financial assistance (EFA) on participants in the Santa Clara County Homelessness Prevention System, which is co-led by the nonprofit organization Destination: Home, dedicated to ending homelessness in Silicon Valley.
The study, recently published in the Review of Economics and Statistics, found that individuals offered EFA were 81% less likely to become homeless within six months of enrollment, and 73% less likely within 12 months.
The study included individuals and families who were at imminent risk of eviction or homelessness and were provided with EFA between July 2019 and December 2020. The average household received nearly $2,000 in financial assistance, which was allocated based on vulnerability to homelessness through a randomized system developed by LEO and Destination: Home. This temporary assistance covered expenses such as rent, utilities, and other housing-related costs.
While providing shelter to those already homeless is a common approach to combating homelessness, the researchers argued that once individuals or families become homeless, they face additional challenges in finding permanent housing, basic necessities, and healthcare. They are also more likely to be involved in the criminal justice system and experience frequent hospital visits. The study from LEO suggests that a preventive approach, focusing on individuals on the verge of homelessness, can also be effective.
The researchers stated, “Our estimates suggest that the benefits of homelessness prevention outweigh the costs.” They estimated that communities receive $2.47 in benefits for every net dollar spent on emergency financial assistance.
David Phillips, a research professor at Notre Dame’s Wilson Sheehan Lab for Economic Opportunities (LEO), emphasized that while homelessness prevention programs do not solve all the problems associated with visible forms of homelessness, such as health and substance abuse issues, they do provide effective assistance to individuals in need.
Phillips said, “Each homeless person is unique, with their own reasons for being in that situation, but they require help at the moment they need it, before everything falls apart.”
LEO’s mission is to fight poverty by helping service providers apply scientific evaluation methods to better understand and share effective poverty interventions. James Sullivan, a professor of economics and co-founder of LEO, stated, “This evidence helps shape the decisions of those on the front lines fighting homelessness and poverty.”
Jennifer Loving, CEO of Destination: Home, highlighted the implications of the LEO study both locally and nationally. She expressed that the study could inspire other jurisdictions to establish their own homelessness prevention systems using this research, as well as serve as justification for policymakers to allocate funding.
The Santa Clara County Homelessness Prevention System relies on partnerships to provide at-risk families and individuals with financial assistance, as well as case management, legal assistance, financial counseling, and dispute resolution with landlords. Destination: Home, one of the lead organizations, secures funding from federal, county, and city governments, as well as private foundations, to coordinate the efforts of a network of 19 nonprofit partners.
More information:
David C. Phillips et al, Do Homelessness Prevention Programs Prevent Homelessness? Evidence from a Randomized Controlled Trial, Review of Economics and Statistics (2023). DOI: 10.1162/rest_a_01344
Provided by University of Notre Dame
Citation:
“Targeted prevention helps stop homelessness before it starts” (2023, July 13) retrieved 13 July 2023 from https://phys.org/news/2023-07-homelessness.html
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