The Business Case for a Housing Based Approach to Reduce Homelessness Region of Waterloo November 22nd 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 We would like the title of this slide to read “Making the business case is increasingly important” IBI Group in 2003 estimated that the total net annual societal costs of homelessness for urban Canada is $1.4 billion per year. This does not include the intangible costs or the value of “lost” contributions from people experiencing homelessness to their communities Focus Consulting Inc Region of Waterloo Nov 22nd 2007

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 healthy rental market in Waterloo Region We would like the title of the slide to read, “Region’s Affordable Housing Strategy (AHS)” The second bullet should be part of speaking notes: Units created under the AHS have helped stabilize and improve lives (i.e. not solely economic) Need to spell out PV Focus Consulting Inc Region of Waterloo Nov 22nd 2007

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 We would like the title to read, “Default costs of homelessness” Focus Consulting Inc Region of Waterloo Nov 22nd 2007

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 22nd 2007

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 22nd 2007

Key issues Utilization rates and frequency (compared to non–homeless) Type of institutional and emergency services used Cost of these services The group who reviewed the slides had difficulty understanding this one – particularly point number one which they felt needed further clarifications. Are these key issues or key areas/points? Focus Consulting Inc Region of Waterloo Nov 22nd 2007

Cost per day: Housing vs. Emergency and Institutional We would like the tile to read, “Cost per day: Emergency and Institutional vs. Housing” – to align with the order of the charts. People likes these charts. We would like to see the scale on the housing one be the same as the emergency/institutional one (i.e., $0 - $500 rather than $0-$150) to provide a better visual comparison. Focus Consulting Inc Region of Waterloo Nov 22nd 2007

Does Million Dollar Murray live in Waterloo? 10 years of homelessness on and off streets 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 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) Just to clarify Million Dollar Murray story is from the New Yorker (not the New York Times) and written by Malcolm Gladwell (who grew up in this area). We were curious about how you arrived at the frequencies above. Is Psych hospital accurate at 13X90 days or is that a typo? Focus Consulting Inc Region of Waterloo Nov 22nd 2007

With apoligies to Mastercard 10 years on and off streets: $560,000 1 year in supportive housing: $22,630 Improved quality of life: Priceless We would like to see apologies spelled correctly in the title. Focus Consulting Inc Region of Waterloo Nov 22nd 2007

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 Not sure what you mean in the first bullet by supportive and residential programs (what is the difference?). Felt the second two bullet points did not make sense i.e., sunk costs and inter-sectoral silos. Need to spell out S&T – don’t know what this means. Focus Consulting Inc Region of Waterloo Nov 22nd 2007

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