Cost-Benefit Studies on Supportive Housing

Supportive Housing and Its Impact on the Public Health Crisis of Homelessness

San Francisco, California’s Health, Housing, and Integrated Services Network (HHISN) serves two of the region’s supportive housing programs, which are the subject of this research. This interim report points to successes for the 253 tenants studied, and the resulting cost savings for the community.

• Well over one-third of residents came directly off the streets, with the remainder from shelter and transitional living facilities.
• Over 95% of residents struggle with mental illness, chemical addictions, or most commonly, both.
• Within 12 months of moving into supportive housing:
  • emergency room use fell 58%, for a projected public savings of $53,507 per person.
  • use of hospital inpatient beds fell by 57%, with another 20% decline in the second year,
  • the cost associate with residential mental health care dropped by $10, 807, and was virtually eliminated after 24 months
• 81% of residents remain in supportive housing for at least one year
• On-site medical, mental health, and other support services were used in favor of costly public and emergency services by over 2/3 of residents.

  Source: Tony Proscio, Corporation for Supportive Housing, 2000. www.csh.org/html/supportiveimpactfinal.pdf

The New York/New York Agreement Cost Study: The Impact of Supportive Housing on Services Use for Homeless Mentally Ill Individuals

The 1990 New York/New York Agreement to House Homeless Mentally Ill Individuals created and continues to maintain 3,615 units of affordable housing supported with clinical and social services. 4,679 homeless people with psychiatric disabilities were tracked while in this housing.

• A homeless mentally ill person in New York City uses an average $40,449 in publicly funded services per year. This drops to $28,304 after one year in supportive housing.
• Shelter use decreased by over 60% for a savings in shelter costs of $3,779 per housing unit built
• 95% of the costs of building, operating, and providing services in supportive housing units is cancelled out by the savings in publicly funded services.
• The average annual public savings per individual in NY/NY Housing was $12,145.

  Source: Cultrane, Metraux, and Hadley, Corporation for Supportive Housing, May 2001. www.csh.org/html/NYNYSummary.pdf

Financial Implications of Public Interventions on Behalf of a Chronically Homeless Family

Using actual experiences from real homeless individuals, the outcomes, costs and savings associated with a typical homeless family can be assessed. By tracing the story of a woman and her three children as they maneuver the system on their own and with the help of supportive housing, we can clearly see the costs, savings, and changes in outcome.

• Overall, supportive housing results in a 51% cost reduction to the public sector.
• Hospital and medical bills fall significantly over 8 years, from $281,200 to $38,200
• The slight rise in child care costs is attributable to the mother’s use of quality on-site child care. This $7,700 investment contributes to improved academic development and a savings of $42,100 previously used for the children for special education and Title One funds.
• One of the most promising outcomes and biggest savings is in out of home placement for the children, which drops from $99,700 to nothing at all.
• Case management costs drop by $30,300

  Source: Ellen Hart-Shegos, Family Housing Fund, December 2000 www.fhfund.org/_dnld/reports/f_implications.pdf

Costs of Serving Homeless People in Nine Cities Chart Book Report

Source: The Lewin Group, November 2004. www.rwjf.org/files/newsroom/cshLewinPdf.pdf