City Announces Creation of 9,000 Housing Units for Homeless

NEW YORK — The City and State of New York have come up with a $1 billion plan to finance and develop 9,000 new units of supportive housing in New York City. Supportive housing is subsidized permanent housing with social services for the homeless. The plan was announced by Governor George Pataki and Mayor Michael Bloomberg on Nov. 7.

“Too many chronically homeless people move in and out of shelters, emergency rooms, detox centers—all of our service systems—at great expense to taxpayers and without lasting benefit to the quality of their lives,” said Sharon E. Carpinello, Commissioner of the State Office of Mental Health.

Carpinello believes that supportive housing stops this vicious cycle by reducing homelessness, reducing reliance on expensive emergency services, and increasing stability, health and mental health among the chronically homeless.

Professor Dennis Culhane of the University of Pennsylvania found in a 2002 study that by offering supportive housing units to clients with mental illness and some history of homelessness, the previous two New York/New York agreements produced cost reductions that came close to paying for the housing and services.

The state and the city will share capital costs during the 10-year agreement. The agreement, known as the “New York/New York III pact” will produce nearly twice the number of units that was generated by the first and second New York/New York agreements combined.

Whereas the first two agreements produced units solely for single adults with mental illness and some history of homelessness, the new pact targets a broader range of clients to better reflect the population of chronically homeless people on city streets and in shelters today. New York/New York III includes units for clients with substance abuse disorders, HIV/AIDS, and mental illness. Also included for the first time are families with disabled heads of households and young people aging out of foster care and residential treatment.

“Our goal is nothing short of ending chronic homelessness through proven, cost-effective solutions like prevention and supportive housing—and we're taking a giant step in that direction today,” said Mayor Bloomberg at a press conference announcing the new pact.

The pact affirms the city's commitment to building housing for chronically homeless individuals and families, and reducing the shelter and street homeless populations by two-thirds in five years.

Mayor Bloomberg committed to funding and developing 12,000 units of supportive housing along with State, Federal and private partners in June 2004 when he announced the administration's plan to end chronic homelessness.

Approximately 16 percent of single homeless adults are chronic, or long-term, shelter residents, meaning they've spent at least two of the last four years in shelter. Chronically homeless single adults use roughly 50 percent of shelter bed nights.