Limitations, impediments and challenges affecting the development of Supportive Housing
Financial feasibility Some projects fail to materialize because of a real or perceived lack of government program funds, charitable grants, bank loans or a combination of such funding to pay for the cost of creating and operating financially viable supportive housing. Other organizations, however, have accessed diverse mix and match funding for highly visible community demonstrations for special population groups. Early directions for financing of housing and support services in the community included financing sources, such as
housing cooperative programs, mixed income
housing associations,
community development block grants, loans for accessibility programs,
tax exempt bonds,
trust funds, housing subsidies, and low interest loans. The housing communities and institutes in the US, as early as the early 1980s, included Institute for Community Economics, McAuley Institute, Women's Institute for Housing and Economic Development,
Habitat for Humanity, the Housing Technical Assistance Project of the ARCs, Local Support Corporation (LISC),
University of Vermont (Center for Community Change through Housing and Support), Creative Management Associates,
Enterprise Foundation, and National Housing Coalition. The
US Department of Housing and Urban Development regularly makes available free information on housing financing and developments in the US through their website, including "Research Works" (in 2011, also on sustainability and green initiatives) and "US Housing Market Conditions". Specific technical resources are available to providers and researchers such as on Section 8 or housing vouchers (portable vouchers).
Government policies and plans Where traditional solutions—institutions, charitable organizations or other methods—are recognized as inadequate solutions for the situation, national, regional and local officials have come to believe that homelessness is a problem that can and should be solved by other means. In some areas, this produced a movement to find alternative solutions rather than continuing to fund the traditional solutions, including shelter system, jails, asylums and hospitals. In addition to homelessness, the movement today is to downsize or close psychiatric centers (e.g.,
Olmstead initiative). In the US, hundreds of city governments have produced "10-year plans" that provide for supportive housing to end chronic homelessness because the
Bush administration began pushing for creation of the plans in 2003. The goal: put the homeless people with complex situations and needs into permanent or transitional "supportive" housing with counseling services that help them get healthy lifestyles of their own choosing. The evidence shows supportive housing may be a viable solution: the number of street people in cities across the United States has plummeted for the first time since the 1980s. In 2005–2006, Miami, Florida reported a 20% decline in homeless populations and dozens of other US cities reported similar census results: San Francisco, CA (30%), Portland, OR (20%), Dallas, TX (28%), New York, NY (13%). Guided by research,
Congress has taken several steps to encourage the development of permanent supportive housing. Beginning in the late 1990s,
appropriations bills have increased funding for the
United States Department of Housing and Urban Development's homeless assistance programs and targeted at least 30 percent of funding to permanent supportive housing. Congress has also provided funding to ensure that permanent supportive housing funded by one of the United States Department of Housing and Urban Development programs (Shelter Plus Care) would be renewed non-competitively, helping to ensure that chronically homeless people could remain in their housing. The 2009 legislative mandate from the
Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act created bipartisan political support to adopt a collaborative approach to end homelessness. From this effort spawned the
United States Interagency Council on Homelessness's Opening Doors Strategic Plan to Prevent and End Homelessness in 2010. With a focus on permanent supportive housing as a means of ending chronic homelessness, the plan outlines an interagency effort aligning mainstream housing, health, education, and human services.
Lack of expertise in development and operations One impediment to the development of additional housing stock where it is otherwise needed, permissible and feasible is the lack of real estate acquisition, development & financing expertise in the government agencies and non-profit (non-governmental) organizations interested in serving those who need and want supportive housing. The
United States Department of Housing and Urban Development is trying to bridge that information and knowledge gap with the availability of regular reports on market and housing conditions throughout the nation, and statistics on all kinds of housing developments (e.g., home ownership, multifamily structures). In addition, there is a widening affordability gap in housing, especially with the lowest income households. Experts point to several factors contributing to this gap: erosion in the housing stock, high housing prices, a drop in real wages, a decline in middle wage jobs, increases in transportation costs, expensive development requirements, regulatory constraints, and insufficient housing assistance funds to meet the needs. == Economic impact on society ==