Likely stimulus boost for city's homeless

As part of the nation's economic-stimulus package, the Obama administration will double spending on homelessness, with the allotment to Philadelphia possibly increasing from $26 million to $38 million or more.

U.S. Housing and Urban Development Secretary Shaun Donovan said in a conference call with reporters yesterday the agency would boost its homeless budget from $1.6 billion to $3.1 billion - "a quantum leap forward" for prevention efforts.

Although HUD has yet to work out details and formulas for distributing the additional money, some homelessness experts here said the city could get an extra $12 million to $20 million.

However, the money can be spent only in one of two ways: on efforts to rapidly move families and individuals out of shelters and into permanent housing, and on programs to prevent them from becoming homeless in the first place.

The money "will make a huge difference," said Gloria Guard, president of the People's Emergency Center, a West Philadelphia nonprofit that operates a shelter and housing program for homeless families.

Under the guidelines, she said, families will be able to apply for money for such needs as security deposits for housing, relocation expenses, or payment of old utility bills.

"The end result will be that more families can move out of shelters and into apartments much more quickly than they can now," Guard said. The spending will have "an immediate impact on the shelter system because it will free up beds, making them available for others in crisis."

The new federal spending on homeless prevention comes at a time when Philadelphia is being forced to consider deep cuts in shelter spending because of the budget shortfall.

Like every other city department, the Office of Supportive Housing, which manages shelters and housing for the homeless, has had to come up with ways to slash the city-funded portion of its budget by 10, 20 or 30 percent.

Under those scenarios, Philadelphia would be forced to eliminate shelter beds for families and individuals, resulting in a severe reduction in capacity, advocates say. They add that shelters would become overburdened and more people, including families, could wind up on the streets.

Yesterday, Donovan said the additional $1.5 billion from the recovery plan was a "critical lifeline to those persons and families who, after a foreclosure or job loss, might otherwise be faced with homelessness."

The extra spending will be in addition to the $1.6 billion HUD announced yesterday in homelessness grants to cities.

Of the original $1.6 million in grants HUD announced, $26.4 million went to Philadelphia - a sum that covers about a quarter of the city's homelessness budget of $97 million. City funding accounts for a third of spending, and state money covers the rest.

Elsewhere in the Pennsylvania suburbs, Delaware County received about $3.5 million in federal aid for homelessness programs and shelters; Montgomery County about $2.3 million; Chester County about $1.3 million; and Bucks County, $705,934.

In New Jersey, Camden County and the city of Camden received a total of about $2.6 million; Burlington County, $549,605; Gloucester County, $225,371; and Salem County, $142,560.

Dennis Culhane, a homelessness expert and professor of social-welfare policy at the University of Pennsylvania, said the extra federal money would give Philadelphia "an incredible opportunity" to reshape its shelter system.

In an approach known as "housing first," people who enter shelters are rapidly turned around and rehoused, using the money for rent subsidies, relocation, or deposits.

"This is not going to be a mainstream antipoverty program," Culhane said, adding that the assistance had to be reserved for those facing a housing crisis, such as an eviction notice, or those entering shelters.

Culhane worked with Philadelphia to launch a rapid rehousing pilot program a year ago that has helped about 60 families. The concept has worked in cities such as Chicago, which has had a drop in emergency shelter capacity.

"This should enable us to be far more effective in helping people," Culhane said.