Homeless in Worcester

By Cindy Phillips

National Facts

Approx. 3.5 million individuals experience homelessness each year.1

Of these numbers, 40% are families with children.2

Massachusetts Facts

Families with children are among the fastest-growing segment of the homeless population.3

Today, there are over 10,500 homeless families with over 20,000 homeless children in the Commonwealth.4 This is more than a 100% increase since 1990.

Nationally, 41% of the homeless are families with children, up from 34% in 2000.5

Massachusetts Facts, con’t.

The Family Shelter System There are currently over 85 family shelters in the

Commonwealth. Twenty years ago, there were two family shelters that housed families for two to three months. Now, due to the crisis of affordable housing, shelters and motels are full to capacity every night, and the average stay is six to nine months.6

In July 2003, there were, on average, 1,652 families per night in the Massachusetts Department of Transitional Assistance (DTA) family shelter system. In July 1990, there were 653.

Massachusetts Facts, con’t.

Today, up to 500 of these families live in motel rooms; over 1,100 families are in congregate, scattered site and transitional family shelters.7

Of these families, 51% of children are school aged (between 6 and 18 year).

To qualify for Emergency Assistance (EA), or shelter, through DTA, a family’s income must be at or below 100% of the federal poverty level. For a family of three, this is $15,260 annually.

The average length of stay for families in the MA shelter system was 184 days in fy03. At an estimated daily rate of $100, the state spends $18,400 per family.

Massachusetts Facts, con’t.

Families Living in Motels In the early 1990s, the Commonwealth sheltered families in motels,

but ended the practice in 1995 because it did not work. In 1999, as the number of homeless families increased, the state once again began to use motels as shelter.

Because shelters are overflowing, families are often placed in motels miles from their home communities. Between 400 and 500 families, including over 800 children, live in roadside motels because there is not enough shelter space.

Living in a motel severs connections with schools, jobs, religious organizations, doctors, and community supports at a time when those connections can be so important for continued stability. Many motels lack kitchen facilities (including refrigerators, stoves and microwaves) and, while located on busy highways, lack access to public transportation and safe places for children to play. With little public transportation, parents cannot get to work and children cannot get to school.

Massachusetts Facts, con’t.

The Effects on Children8

Homeless children are sick more often, are more likely to suffer from cardiac disease, neurological disorders and asthma than housed children.

They experience four times the rate of developmental delays and twice the rate of learning disabilities as housed children. Schooling and educational development may be disrupted for homeless children; they are twice as likely to repeat a grade.

Higher rates of mental and emotional problems develop in homeless children than other children.

Massachusetts Facts, con’t.

Why Are Families Homeless? Two factors are largely responsible for the rise in family

homelessness over the past twenty years: Rising high cost of housing Incomes that don’t keep up

Thousands of families in the Commonwealth are unable to afford safe and decent rental housing. Wages have failed to keep pace with rental costs, rental costs have increased faster than costs of other basic needs, affordable housing is being lost to homeownership and market-rate rentals, and little affordable housing is being built.9 As a result, families are being forced to choose between paying for housing and food, child care, health care and education. Being poor means living an illness, an accident or a paycheck away from becoming homeless.10

Massachusetts Facts, con’t.

Poverty and Skyrocketing Housing Costs The potential for homelessness is astounding. Consider that:

Families with incomes below $21,000 in 1997 experienced no increase in income between 1985 and 1995, while rents adjusted for inflation rose by 42%.11 In fact, households at or below the 50th percentile of income have seen wages decrease, after adjusting for inflation. Those at lower incomes have seen the greatest losses while those at the highest income levels have seen increases.12

The future of job growth does not appear promising for many workers in this country. It is estimated that 46% of the jobs with the most growth between 1994 and 2005 pay less than $16,000 a year. Moreover, 74% of these jobs pay below a living wage ($32,185 for a family of four).13

Nearly 25% of Americans would be late on mortgages, rent or other bills if a single paycheck were delayed.14

For every ten households with extremely low incomes (less than 30% of the area median income), there are now only four available housing units they can afford.15

Massachusetts Facts, con’t.

Massachusetts is the least affordable state in the nation for renters. In Boston, renters must earn $27.29/hr.16 On average, renters in the state must earn $22.40/hr to afford a two-bedroom apartment. Making minimum wage, a parent would have to work 133 hours a week (19

hours a day) to afford an apartment in Massachusetts. Two parents would each have to work almost 70 hours a week.

A mother working full time at a minimum wage job earns $14,256 annually ($6.75/yr).

The average annual income for families coming off welfare is $17,000. The real wage needed for a woman with two children to live unsubsidized in

Boston, and to meet their adequate basic needs, is $51,28417

Over 75% of families in emergency shelters have exited the shelter system for permanent housing with a housing subsidy, including Section 8 vouchers or units within public housing.18 But now HUD has frozen Section 8s across the country (possibly until 2005). Families cannot move beyond shelter in this housing market, in this economy.

Massachusetts Facts, con’t.

The State Is Spending Less on Housing and Nothing on Homelessness Prevention

Prevention19

In April 2002, the rental arrearage program at DTA, proven to have worked to prevent homelessness, was eliminated due to budget cuts.

In this program, the average rental arrearage payment was $1,249 per case, compared to an estimated average shelter cost per case of $14,670. (Rental arrearage cases cost $13,421 less, on average, than a shelter case.)

DTA’s analysis of the program found that “arrearage families rarely entered an emergency shelter within a year of receiving a back rent payment.” In fact, of 704 families receiving a back rent payment in January 2001, only 3.4% (24 families) entered a shelter within a year of the payment.”

We know prevention works, so why don’t we invest in it?

Massachusetts Facts, con’t.

Housing Total DHCD spending 1989 through 2004 (in millions)20

Fiscal Year State Operating Funds State Capital Total

1989 $208 $202 $4101993 $174 $ 33 $2071998 $132 $ 80 $2122003 $ 96 $101 $197

This is a 52% reduction in spending on housing since 1989.

Worcester Facts

According to a Worcester, MA housing market study commissioned by the city and conducted by RKG Associates in 2002, there is a shortfall of nearly 6,000 units of affordable housing for low income families in Worcester. The lack of affordable housing in conjunction with the restricted availability of funding for housing assistance and homelessness prevention programs has resulted in an increase in homelessness regionally. It has also nearly doubled the average length of stay of our shelter guests in the past four years (increasing from 6 to 11 nights).

Community Based Organizations

Massachusetts Coalition for the Homeless – www.mahomeless.org

Central Massachusetts Housing Alliance – www.cmhaonline.org

Friendly House Many others exist in Worcester and

the surrounding areas to help counter the growing homeless problem.

State and Local Government Agencies

Massachusetts Executive Office of Health & Human Services – www.mass.gov

Worcester Community Action Council, Inc. – www.wcac.net

Cooperation

The many state, local and private agencies work hand-in-hand in an attempt to offer solutions to the growing homelessness population.

There are existing programs in place that provide income assistance, shelter, food, clothing, job training, child care subsidies, etc. Unfortunately, the primary obstacle is the rising cost of housing.

Success of Efforts Put Forth

As evidenced by the numerous reports generated over the last decade, the number of people experiencing homelessness is not decreasing. Rather, it is a problem that is dramatically becoming more and more pronounced. The efforts of the local and state agencies are not unnoticed; however, the rapidly rising cost of housing forces many into this situation at a faster pace than the agencies can offer help.

Suggested Reforms

The rising cost of decent housing is the primary concern in efforts to help reduce the number of homeless in Worcester and Massachusetts. Until provisions are in place that reinstate the removed rent control laws, the most likely outcome is even higher rental rates and even more homeless.

References

1 – National Alliance to End Homelessness. Why is Homelessness an Important Issue?. http://www.endhomelessness.org/back/NatlFacts.pdf

2 – Abby’s House. The Interconnected Causes of Homelessness. http://www.abbyshouse.org/about_issues/

3 – National Coalition for the Homeless. (2003).4 – Marble, Melinda and Donna Haig Friedman. (2003).

Operation Home Run: Bringing Home the Commonwealth’s Neediest Families.

5 – Conference of Mayors. (2003).

References, continued

6 – Clayton-Matthews, A. and R. Wilson. (2003). Ending Family Homelessness paper commissioned by the One Family Campaign. Newton MA.

7 – Department of Transitional Assistance data. and Governor’s Commission for Homeless Services Coordination. (November 2003). Housing the Homeless: A More Effective Approach.

8 – The Better Homes Fund. (1999). America’s New Outcasts, Homeless Children. Newton MA.

9 – National Low Income Housing Coalition. (2003). Out of Reach 2003.

10 – National Coalition for the Homeless. (September 2002). “Why Are People Homeless?”

11 – Citizens’ Housing and Planning Association. (1999). Housing Guidebook for Massachusetts: A Comprehensive Guide to State and Federal Housing Programs and Resources.

References, continued

12 – Economic Policy Institute. (2004). “Economic Snapshots.”13 – National Coalition for the Homeless. (September 2002).

“Why Are People Homeless?”14 – USA Today. (August 12, 2003). “Homelessness Grows as

More Live Check-to-Check.” citing a 2003 poll by Automatic Data Processing.

15 – HUD Office of Policy Development and Research. (2001). A Report on Worst Case Housing Needs in 1999.

16 – National Low Income Housing Coalition. (2003). Out of Reach 2003.

17 – Pearce, Diana and Jennifer Brooks. (2003). The Self-Sufficiency Standard for Massachusetts. Women’s Educational and Industrial Union, Massachusetts Family Economic Self Sufficiency Project (MassFESS).

References, continued

18 – Department of Transitional Assistance data. and Governor’s Commission for Homeless Services Coordination. (November 2003). Housing the Homeless: A More Effective Approach.

19 – Department of Transitional Assistance. (April 2003). “Do Rental Arrearage Payments Alleviate Homelessness?”

20 – Citizens’ Housing and Planning Association.