How to Save Tax Dollars: Give the Homeless a House

Study suggests taxpayers could save as much as $20,000

Updated 10:40 AM PST, Tue, Oct 13, 2009

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What costs more: housing a homeless person or leaving them on the streets? United Way's answer might surprise you. According to the relief agency, Los Angeles taxpayers would save $20,000 a year in public services for every homeless person moved off the streets and into permanent housing.

The saving projection was one of the findings included in the Homeless Cost Study prepared by the United Way of Greater Los Angeles.

The qualitative study profiles four previously homeless people who now live in stable housing.

"With more people living on the streets of Los Angeles than any other city in the nation, we cannot continue to ignore the growing homeless issue, which is crowding our health and criminal justice systems and impacting the strength of our community," said Elise Buik, president and CEO of UWGLA.

Housing the Homeless Saves Money

Housing the Homeless Saves Money
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Housing the Homeless Saves Money

"We must change our attitudes toward the homeless, many of which are families and veterans, and move swiftly to impact the system so we can get them into life-changing environments," she said.

In its report, the relief agency profiled a 52-year-old white woman, a 58-year-old white man, a 32-year-old Latino man, and a 61-year-old African- American male. The study took into account five principal areas: substance abuse, physical health, mental health, criminal justice and housing.

Combining costs associated with these areas, the study found that the total cost to provide public services for two years was more than $80,000 greater than it would be with permanent housing with support services, representing a nearly 43 percent savings for taxpayers.

By investing in permanent housing for the homeless, Los Angeles would significantly increase taxpayer savings and dramatically reduce the homeless population, the study concludes.

"Numbers can only tell you so much," said Dr. Michael Cousineau of USC's Keck School of Medicine, the report's principal investigator. "By looking at the individual stories behind these numbers, we were able to understand the real social, financial and health factors impacting the homeless."

In order to raise funds and awareness of the problem, United Way is hosting its annual walk to end homelessness, HomeWalk, on Nov. 7. In the last two years, 8,000 people have walked, raising $1 million and helping more than 5,000 people to leave the streets.
 

First Published: Oct 13, 2009 8:44 AM PST

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