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Cost Effectiveness of Supportive Housing in Wake County, North Carolina

Date Published: February 26, 2008
Publisher: University of North Carolina - Chapel Hill School of Social Work
Author: Adam Walsh, Dean Duncan, Laurie Selz-Campbell, and Jennifer Vaughn
Region: North Carolina

The purpose of this project is to assess the cost effectiveness of permanent supportive housing in North Carolina. Permanent supportive housing is one strategy to provide affordable housing and case management services to homeless individuals efficiently and effectively. Many, if not all, of the individuals who live in permanent supportive housing suffer from serious mental illness (SMI) and also have a disability or history of substance abuse. As a homeless prevention strategy by the federal government, supportive housing was authorized as a demonstration project under the Stuart B. McKinney Homeless Assistance Act of 1987. It was designed to meet the needs of deinstitutionalized homeless persons, homeless individuals with a mental disability or other handicap, and homeless families and children. The legislative history suggests that a significant share of the funding goes to deinstitutionalized homeless persons and homeless persons with mental disabilities. In a permanent supportive housing environment, an affordable housing unit is made available to individuals who have needs for support services. Frequently these persons would not be able to afford housing or would be denied housing due to their background. In addition, case management services are provided to these individuals to assist them to live independently.


KEY QUOTE
The cost analysis indicates that overall costs have fallen from $377,141.66 in the two years before entry to $265,785.20, a decline of $111,356.46, or 29.53%. If the cost of social worker who is stationed at Lennox Chase is excluded, the service costs decline to $210,950.00, a decline of 44%.