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729 October 2,19 89 INTRODUCI'ION Thousands of compassionate
Americans will march on Washington October 7th to draw attention to
the strategy that they believe will win the war on homelessness.
Their prescription: a massive increase in federal money to help
construct hous ing. Their slogan: "Housing NOW!"
The organizers are amply funded and confident of success. With
Hollywood stars and politicians flocking to their cause, and with
the AFLCIO, the Community for Creative Non-Violence, and the
Villers Foundation of Washington , D.C picking up the $1.5 million
tab, they hope to stage the media event of the year.
The marchers surely are well-meaning. But their strategy is badly
flawed.
Thus if their demands are met by Congress, the ironic result will
be a tragic defeat for homeless Americans. The reason is that the
homeless problem is not due to a lack of housing.
Ignoring the Cause. To be sure, a homeless person obviously needs a
home. But this facile observation overlooks the reason that the
homeless have no home. Simply dema nding more housing for the
homeless is like saying that a person with a fever can be cured
with a cold bath to bring down the temperature and ignoring the
infection causing the fever.
A massive new program of subsidized housing would do nothing to
help th e majority of the homeless because it would ignore the
disabilities preventing the homeless from taking advantage of
existing forms of housing assistance. It also would do little to
aid those few among the homeless who do owe their condition to
economic f a ctors. Special Interest Support. Those who would gain
most from a new federal house building program are not the
homeless, but construction companies and their employees. It should
come as no surprise that these powerful special interests, at fault
for pa rt of the homeless problem, self-servingly and cynically
support the march on Washington.
Recent studies provide accurate, new information about the size and
nature of the homelessness problem and- it is a very different
picture from that painted by many a dvocates for the
homeless.'First, the total number of America's homeless is .between
250,000 and 600,000; most are single men.
Second, the majority of homeless are severely impaired by either
mental illness, long-term drug and alcohol abuse, or a combination
of the two. Third a homeless person typically suffers frdm a lack
of education and, in more than half of all cases, has a criminal
record. And fourth the relatively small share of those homeless
because of economic factors are mor e likely to be victims of local
than of national policies.
Addressing the Source. What these statistics tell legislators is
clear: if lawmakers truly want to help the homeless they should
ignore the clamor for still more funding of wasteful, scandal-prone
housing production programs.
Instead, they should reallocate existing funds. to help communities
address homelessness at its source. This means moving quickly to
local care providers maximum discretion and flexibility in
addressing the needs of homeless r esidents Provide proper care for
the large number of mentally ill homeless by enforcing the
provisions of the 1963 Community Mental Health Centers Act Make the
homeless eligible .for special housing vouchers, to. be used to
meet their unique housing needs Encourage the states to propose to
.Washington innovative solutions to homelessness, and press the
White House to remove the federal red tape impeding such state
initiatives; and out of municipal rent control policies and the
streamlining.of construction regulations.
Jack Kemp, have announced their commitment to helping the homeless
through direct government action and by stimulating private
activity. In a speech last month in Hartford, Connecticut, for
example, Kemp announced plans to make more HUD-forecl osed
properties available for purchase by care providers for the
homeless. He also heralded a new public-private partnership between
HUD and the Robert Wood Johnson Foundation. This will award almost
$M'niillion~ixi'housing 'ksistance and special grants t o cities
that design comprehensive homeless programs emphasizing health and
transitional services Combine McKinney Act funds into a $746
million block grant, to give Make continued federal housing
assistance contingent on the phasing George Bush and his Ho u sing
and Urban Development (HUD) Secretary 2 While introducing such
initiatives, the Administration must resist being diverted by those
lawmakers and housing lobbyists who are using the homeless issue as
a cover for giving away yet more billions of dollar s to the
housing industry. The task for the Administration and the nation is
to eradicate the cause of homelessness, not merely to create new
programs that enrich special interests WHO ARE THE HOMELESS Perhaps
no aspect of homelessness has been as clouded b y myth and mystery
as the identity of the homeless themselves. As several activists
for the homeless now admit, this confusion is due largely to
efforts to portray a typical homeless person as someone who will be
sympathetic to middle America. The press a n d television coverage
of homelessness generally accepts this portrayal. A study of media
coverage published this March, for instance, finds that only 25
percent of the homeless featured in major print or broadcast
stories were identified as unemployed, an d only 7 percent were
identified as drug or alcohol abusers -figures significantly at
odds with major surveys.
The fact is, the homeless are not typical Americans.They have
special needs and usually chronic health problems. The only way to
craft an effecti ve national homeless policy is to start by
recognizing the scale of the problem and the characteristics of
those whom that policy is intended to benefit.
Among the key facts lawmakers need to understand 1) There are
between 250,000 and 600,000 homeless Am ericans as many as 6
million. Scientific studies put the real figure at a fraction of
these numbers. The first systematic nationwide study, undertaken by
the Department of Housing and Urban Development and released in
1984 estimated the number of homeless at between 250,000 and
300,000? Two years later, a report by the Nttional Bureau of
Economic Research found 343,000 to 363,000 homeless. The most
recent national study, released last I 2 Homeless activists claim
that there are at least 3 million homeless s ome 1 Gina Kolata,
Twins of the Streets: Homelessness and Addiction, The New Yo&
limes, May 22,1989 2 S. Robert Lichter and Linda S. Lichter, eds
The Viible Poor: Media Coverage of the Homeless Z9&%1989 Center
for Media and Public Mairs, March 1989 p. 6 3 Department of Housbg
and Urban Development, A Report to the Secretary on the Homeless
and Emergency Shelters (Washington, D.C Ofice of Policy Development
and Research, 1984 4 Richard B. Freeman, Permanent Homelessness in
America? Population Research and P o licy Review, 1987 3 year by
the Urban Institute, puts the count between 567,000 and 600,000 and
then cautions that this number probably overestimates the size of
the homeless pop~lation There is no statistical basis for any of
the seven-figure estimates o f homelessness so often reported by
the media. Activist Mitch Snyder of Washington,;D.C when pressed by
.Congress to validate his assertion that there are between two
million and three million homeless; confessed that these numbers
are in fact meaningless. When asked why he uses meaningless
numbers, Snyder told a congressional panel that he was trying to
satisfy your gnawing curiosity for a number 2) Between 80 percent
and 90 percent of single homeless adults are male 10 percent of
homeless households are f amilies with children.
Based on a review of 17 regional studies, the Interagency Council
on the Homeless, a task force composed of federal executive branch
departments and agency heads and chaired by HUD Secretary Kemp,
last year issued a profile of homele ss households, defined as
either a single homeless person or a homeless family (one or more
adults with children). The Council reports that, on average, males
comprise 80 percent or 90 percent of all homeless households in
shelters. This percentage is eve n higher when the homeless outside
shelters are included.
The proportion of the homeless who currently are married ranges
from 4 percent to 12 percent in the surveys, while roughly half
have never been married. More significant is the finding that the
prop ortion of never-married adults appears to be the same for
heads of families about 50 percent. This figure agrees with other
evidence suggesting that most homeless families are dysfunctional,
meaning that they have little or none of the interaction and mut u
al support typically provided by a family environment. It also
helps. to explain why, in. the words of one researcher, the
homeless are profoundly alone. Cut off from the ties with family
and friends that most Americans take for granted, the homeless gene
rally face challenges far greater than simply finding permanent
physical shelter.
Families in Shelters. The impression that many more than 10 percent
of homeless households are families with children is almost surely
due,..in.part 5 Martha R. Burt and Barb ara E. Cohen, Feeding the
Homeless: Does the Ptqnated Meals hvision Help Washington, D.C The
Urban Institute, 1988), prepared for the Food and Nutrition
Service, U.S. Department of Agriculture. 6 Testimony before the
House Banking and Government Operation s Committees, in a joint
hearing on the 7 A Nation Concerned, Interagency Council on the
Homeless (1988 8 David Whitman, from Rethinking Policy on
Homelessness, a conference sponsored by The Heritage Foundation and
The American Spectator, The Heritage Lect ues No. 194, December
14,1988, p. 45 HUD Report pn HoIpelessness May P! 32 i P 4to the
fact that reporters tend to rely on information provided by
operators of shelters. Shelters are used more frequently by
homeless families than by homeless individuals.
Another reason is that the share of family members (that is, adults
and children counted individually) in the general homeless
population about 23 percent often.is.mistakenly .cited as .the
.percentage of homeless families.
Among those who use shelters, ex plains Urban Institute scholar
Martha Burt, 37 percent are family members 11 percent adults and 24
percent children. If you look at those who only use soup kitchens,
only 5 percent are family members 2 percent adults and 3 percent
children. If you look a our...street sample which did not use
services, there are no children 3) Most of the homeless suffer from
chronic drug and alcohol abuse and/or mental illness.
Researchers generally agree that 35 percent to 40 percent of the
nations homeless have severe dr ug or alcohol abuse problems.
Unscientific but probably accurate street-level estimates are far
higher. Shelter operators recently provided the New York 7imes with
estimates of the percentage of addicts among the homeless adults
they serve: 75 percent in t he South Bronx up to 80 percent in
Philadelphia, and 90 percent in Washington, D.C.1 In addition, as
many as one out of every two homeless persons is disabled by
severe, chronic mental illness. The main reason for the large
number of mentally-ill homeless is the deinstitutionalization
policy initiated under the 1963 Community Mental Health Centers
Act. As a result of the Act, the number of patients in state mental
hospitals has declined from 505,000 in 1963 to about 110,OOO last
year.
Community Center Fail ures. The intent of the Act was humane and
laudable: patients released from state institutions were to be
cared for by trained professionals in community-based health
centers. Federal money helps support these centers. But most of the
community-based ment a l health services designed to assume care
for these patients do not do so. Instead most centers have become
counseling and psychotherapy facilities for Americans with less
debilitating emotional and mental problems. In addition although
billions of taxpay er dollars were spent during.the. 1950s
andJ960s.to train mental health professionals, very few of those
trained have gone into d 9 Martha Burt, Rethinking Poky on
Homelessness, op. cit p. 19 10 The New Yo& Ties, op. cit.
I1 This figure is based on two authoritative surveys employing
standardized diagnostic techniques, which estimate the percentage
of mentally ill homeless at 45 percent and 47 percent, respectively
DJ. Baumann, et al The Austin Homeless: Final Report Pmvid ed to
the Hog Foundation for Mental Health (Austin,Texas: Hogg Foundation
for Mental Health, 1985 and P. Rdssi, et al The Condition of the
Homeless of Chicago University of Massachusetts, Amherst,
Massachusetts, 19
86. Analyses that rely on self-reporting of psychiatric histories
by the homeless or on estimates by care providers generally yield
somewhat lower figures National 0piPion.R.esearch cester,..c&.c
Jk9.h. and i and..Qempgra~~c~ ResearchJnstilute 5practice to
provide long-term treatment for the ser i ously ill. As a result,
many deinstitutionalized patients who should be receiving
professional medical attention are left to wander the streets, and
termed, simplistically horneless.12 The 1988 Urban Institute study
provides the first comprehensive nation a l figures on other
char.acteristics,of- the homeless which also may contribute to or
aggravate their condition (see Chart l).-For instance, the study
indicates that 56 percent of the homeless have beenjaiiled for five
or more days, while more than one in f our have served time in
state or federal prisons (which implies a felony conviction Almost
one-half have never finished high school and only 5 percent or 6
percent have steady employment 4) For the minority who are homeless
for economic reasons, the probl em is not underfunded federal
programs but local urban renewal and rent control policies.
Most shelter residents have been homeless for less than a year.
Some are there because a domestic dispute drives them out of their
homes, or because of temporary unem ployment or a 13 Chart 1
Characteristics of the Homeless No Steady Job Jalled 6 or mom dam
No Hlgh School Degme Chronlcelly Mentally 111 at liait $0~8 i i
IIIII o io PO ao 40 60 eo 70 80 00 io0 percent of total powlation
Source: Feed/n# the Honm/euu (Urba n Inetltut 1988).
Herl1.o. IntoCharl personal tragedy (such as a fire afford
long-term housing.The reasons for this are not as typically alleged
high unemployment and inflation. While the homeless problem gained
visibility during the recession of the early 1980s, unemployment
and inflation have dropped steadily since then -with little
apparent impact on the numbers of homeless. And contrary to popular
impression, HUD spending rose significantly during the Reagan
years.
The reason for confusion over spending is that annual budgets for
federal agencies are expressed in terms of both .outlays and budget
authority.
Outlayfigures reflectactual spending on .programs, while budget
authority is A few, although employed and Willing to rent, simply
are unable to fin d or 12 E. Fuller Torrey, M.D Nowhere to Go New
York Harper Row, 1988 13 Burt and Cohen, op. cit 6 like the limit
on a charge card -the total spendingauthority made available to
that agency by Congress in a given fiscal year, including
commitments for fut ure spending. In fact, as Chart 2 shows, HUD
outlays in Reagans first term were about 30 percent higher than
spending under Carter,-even when inflation is-taken into account.
The real culprits have been urban redevelopment programs -federally
funded, in many cases and rent control policies. During the 1970s,
urban renewal projects destroyed over one million units of
inner-city housing.
The Urban Development Action Grant program, which Drovides federal
Chart- 2 Annual HUD Spending 21 B 18 16 0 8 n 19 9 f0 $ 3 Sourc.:
OW FY fOQ0 Hiatorkal Tabla Harllmga InloCharl 1 subsidies for
redevelopment projects, alone has been blamed for the loss of much
of the nations stock of single-room occupancy SRO) units. These
very low cost boarding houses or hotels traditionall y have been
home to many poor Americans, particularly single men. It was not
until 1987 that Congress curbed this tragic misuse of federal funds
when RepresentativeBarney I Frank, the Massachusetts Democrat,
successfully attached his antidisplacement amend m ent to the 1987
Housing and Community Development Act. This amendment requires
cities to replace all low- and moderate-income housing units
demolished to make way for federally funded projects, and to
provide relocation expenses for those affected by deve l opment
schemes shortage of affordable housing in the six states and nearly
200 urban areas where such regulations are in force. Economists
long have taught that all price controls lead to shortages by
discouraging production while stimulating increased de m and. Rent
controls are no exception. By eliminating incentives for
construction of new housing and for proper maintenance of existing
housing, rent control creates rental housing shortages. This makes
it almost impossible for Americans with limited means t o find the
few units that occasionally -do-become.available; since-high demand
ensures those units will usually go only to those who can afford
brokers fees, exorbitant key money commissions, and bribes to
landlords Creating Housing Shortages. Rent contro l policies,
meanwhile, ensure a 7 The direct link between rent control and
homelessness is documented in a 1987 study of 50 U.S. cities.This
study, using statistical correlations prepared by New York
University Mathematics Professor Jeffrey Simonoff compar e s
homeless rates with seven factors: rent control, unemployment,
poverty, the availability of public housing, rental vacancy rates,
city size, and even climate Indisputable Conclusion. Using
regression analysis, a standard method for discovering likely ca u
ses of a phenomenon, the Simonoff study finds no statistically
relevant relationship between the incidence of homelessness and any
of the factors tested -except for rent control. Here the
correlation is extraordinarily high. The conclusion is indisputable
: differences in the rates of economically- induced homelessness
between cities are linked primarily to the presence or absence of
rent control.
Aggravating the problem, explains WilliamTucker, a Hoover
Institution Senior Fellow, who wrote the study based on Simonoff s
findings, is the labyrinth of building codes, zoning restrictions;
and impact fees in force around the country. These prevent
developers from addressing the need for affordable housing.15 The
Wall Street Journal noted this spring that regula t ory sprawl adds
20 percent to 25 percent to the per-unit cost of new housing. In
some areas, the figure is as high as 35 percent.16 Builders and
developers, who must pass these increased costs on to the consumer,
thus are forced to specialize in luxury un i ts for the relatively
affluent. Suburban slow growth policies and residential density
limits also inhibit the constmction of multifamily dwellings,
further tightening the affordable housing market 14 WHAT IS BEING
DONE TO HELP THE HOMELESS Attention to th e plight of the homeless
has led to a typically American outpouring of private assistance,
as well as to increased spending at almost every level of
government. Widespread claims that little has been done to help the
homeless thus are absolutely untrue. Am o ng the actions in recent
years I 1) Dramatic help from individuals and private charities An
estimated 94 percent of all homeless shelters in the U.S..are
privately operated. In addition to offering shelter, these private
facilities provide such services a s help in finding permanent
housing, job training, and child care.
Moreover, the number of shelters has increased 190 percent in the
past five years from 1,900 in 1984 to almost 5,400 today. The
number of beds is up 180 percent from 100,000 in 1984 to 275,000 in
19
88. Private donations also help fund soup kitchens, counseling, and
housing construction and rehabilitation.
Organizations providing these services usually rely on volunteer
help, in-kind 14 WilliamTuckeri Where Do the Homeless Come From?
Natio nal Review, September 25,1987 p. 32 15 aid. See also William
Tucker, Americas Homeless: Victims of Rent Control, Heritage
Foundation Backgrounder No. 685, January 1% 1989 16 Housings High
Costs, The Wall S&et Journal, May.9,1989 8 donations, and cash
gift s from individuals, foundations, and corporations. All told,
the private sector contributes well over $100 million annually to
the fight against homelessness 2) Dramatically increased state and
local government spending on the homeless According to-the-198 8
report by the Presidents Interagency Council on the Homeless,-27
states were spending a total-of $437 million on homeless programs
last year, up from $244 million in 1987?7 The Interagency Council
report also found a dramatic increase in efforts by citie s to
coordinate homeless assistance programs. In addition, services
designed to help the homeless regain economic independence, such as
literacy courses and job placement counseling, now are being
provided in many more communities 3) Record federal spendin g on
homelessness In 1987, the federal government provided $490 million
in direct assistance for the homeless through the McKinney Act,
first enacted that year.This legislation contains 17 different
programs administered through seven federal agencies. Geo r ge
Bushs fiscal 1990 budget calls for increasing McKinney spending to
$746 million. Congress has not yet completed action on this
request. In addition to McKinney funds, over 60 separate federal
programs provide additional aid to the homeless either direc t ly
or as part of general low-income assistance services. These range
from Pentagon donations of shelter, food and bedding, totaling
$14.4 million since 1984, to HUD Community Development Block
Grants, used by recipient states last year to fund an estimate d
$40 million in homeless assistance. In one way or another, almost
every part of government is helping the homeless. Even the U.S.
Postal Service provides mailboxes for Americans without a permanent
address SO WHAT IS THE PROBLEM About $1.5 billion in pri v ate,
local, state and federal resources thus are being spent every year
on the homeless through direct assistance programs alone. The
homeless also receive hundreds of millions of dollars worth of
additional aid through other, non-specific low-income prog rams.
With spending at these record levels, why does the homeless problem
still seem intractable? Simply put, America has failed to win the
war on homelessness because so much of the help, particularly from
the government overlooks the real causes and natu re of
homelessness. This leads to a serious misallocation of resources.
Ironically, those most responsible for misleading policy makers and
the American people usually identify themselves as homeless
advocates. In their zeal to generate public support for the
homelessymany of these activistshave tried to portray the.homeless
in ways 17 A Nution Concerned, Interagency Council on the Homeless,
1988 9that they believe will elicit sympathy. Such portrayals are
not accurate. As a result, the hardcore homeless - t he addicts and
the mentally ill are almost totally ignored by the campaign for
government action In response to pressure to help the homeless, the
government has adopted a crisis-management approach, providing
emergency food and shelter but little in the form of.
long=term.help At least one leading homeless advocate has
acknowledged thisnasty little secret, and admitted to a change of
heart.
Robert Hayes, director of the National Coalition for the Homeless,
told the New York limes this Ma y that he and others have shied
away from discussing the problem of addiction in the past, in part
because [we] feared that the public would lose its sympathy for the
homeless Now, he says, the bottom line is that we have to tell the
truth.18 image of hom e lessness crafted by the activists. Moreover
as so often happens when programs are developed in a crisis
atmosphere driven by the desire to do something, they are
inefficient and riddled with bureaucracy. Example the McKinney Act
authorizes spending for dr u g rehabilitation, job training and
transitional housing. Funding applications must be made separately
for each program, often to several government agencies with
different guidelines and requirements. Even when they are aware of
the programs, most private care providers lack the grantsmanship
skills needed to secure funds from the federal bureaucracy As a
result, many good shelters struggle along without assistance.
Moreover, much of the federal money is spent on treating the
symptoms rather than the cause s of homelessness, leading to a
mismatch between services and needs. Thus while a third of Americas
shelter beds are empty on any given night,lg most of the hardcore
homeless still have nowhere to turn for care.
Washington can address this misallocation pr oblem. Some
encouraging first steps recently have been outlined by the Bush
Administration. Many more are needed.To help communities provide
the services most needed by the homeless, Congress and the
Administration should 1) Provide McKinney assistance th rough a
block grant rather than categorical grants.
Currently, Mckinney funds are provided through categorical grants.
Such grants narrowly define the uses to which federal funds may be
put, and require states and cities to participate in a convoluted
application process.
Block grants, by contrast, disburse a bulk sum of money along with
general directions for how the funds are to be used. This gives
wider discretion to states and cities.Transforming Mc&ney funds
from categorical to block grants would allo w states and cities to
use the money for creative approaches in dealing with homelessness
and would remove the red tape that prevents Riddled with
Bureaucracy. So far, however, programs still reflect the 18 The New
Yo& Imes, op. cit 19A Report on the 1988 Nafional Survey of
Shelters for the Homeless, Department of Housing and Urban
Development, 1989 10 money reaching those who can use it most
effectively. It would have the additional advantage of enabling
communities to experiment with new programs of thei r own design,
and to tailor help to the unique needs of their homeless residents
rather than to complex federal requirements.
Two actions are needed to make a block grant operate effectively.
First, for assess accurately the size and needs of their homeles s
population As more data on the homeless population are compiled
throughregional and national studies (such as the homeless count in
next years National Census), this task will become more manageable.
Second, an essential ingredient for a successful bloc k grant
program is a clear set of goals and guidelines.
Performance criteria should be established in discussions between
Washington and the state governments. The federal government.
should not micromanage community responses to homelessness by
diffusing assistance through separate programs; spending decisions
can be made more efficiently by local care providers funds
to.be.allocated-equitably,-recipient .cities and states must be
able to 2) Enforce the intent of the 1963 Community Health Centers
Act The g oal of deinstitutionalization sought by the 1963 Act is
to move patients in state mental hospitals to less rigid and more
humane community facilities. This goal has not been met. While some
789 mental health centers have been created since 1963 with $3 bi l
lion in federal seed money, most provide counseling and therapy to
those whom Washington psychiatrist Fuller Torrey calls the worried
well, rather than the chronically mentally ill.qIThe Bush
Administration should introduce new regulations to require ment al
health centers to fulfill their responsibility to provide care for
those who most urgently need it.
In addition, most of the nations 150,000 mental health
professionals,were trained at taxpayer expense (with over 2 billion
spent through the National Ins titutes of Mental Health alone)
under programs created specifically to provide care for the
seriously mentally ill. But the number of American-trained
psychiatrists employed in public health care facilities has not
changed since 19
45. Too few psychiatrists, psychologists, and psychiatric social
workers serve the estimated 2 million Americans with severe mental
illnesses, as many as 15 percent of whom may be homeless. It is
time for.
Congress to demand performance for taxpayer dollars by attaching a
unive rsal payback obligation to federally subsidized training
programs This would require psychiatric professionals who receive
federal funds to devote at least a fraction of their services,pro
bono, to the Americans who need them most 20 Torrey, op. cit 11 3)
Provide vouchers for group homes and single-room occupancy (SRO
hotels While rental vouchers have proven the most cost-effective
means of general housing assistance, they often are of little use
to the majority of the homeless. They need group housing equ i pped
with special facilities and staffed by full or part-time care
providers; or they may prefer inexpensive shelter with shared
amenities. Vouchers already can be used in some instances for SRO
accommodation, but regulations prevent them being used exten s
ively New laws thus are needed to increase the number of vouchers
and to make it easier for the homeless to use them for shared
accommodations. Vouchers need to be made widely available to single
adults using no frills SRO units. Making vouchers more avai l able
to SRO hotel residents, moreover, would encourage the creation of
more of those facilities 4) Use the Low Income Opportunity Board to
encourage innovative state proposals to tackle homelessness The Low
Income Opportunity Board (LIOB) was created in 1 9 87 as a federal
interagency panel to review state proposals for innovative
anti-poverty programs that may fall outside established federal
funding guidelines. The LIOB can direct federal agencies to grant
modifications, or waivers, of existing federal rul es to enable a
state program to go into effect.
By cutting red tape, the LIOB encourages creativity in adapting
federal programs to meet local needs while retaining appropriate
federal oversight and ensuring the intent of federal programs is
pursued..The: Board has been the catalyst for many major welfare
reforms at the state level. But limitations on waiver authority
often make it difficult for the Board to permit states to try new
ways to address the root causes of homelessness.To correct this,
the Bush A dministration should ask Congress to extend broad waiver
authority to the Departments of Agriculture, Education, Health and
Human Services Housing and Urban Development, Labor, and the
Veterans Affairs. This would enable the White House to spur
developmen t of state programs that for instance, might combine
housing assistance with much-needed psychiatric, drug treatment,
job training, and literacy services and other barriers to the
construction of low-cost housing shortage by adopting more sensible
building codes, eliminating exclusionary zoning practices, and,
most importantly, ending rent control. Congress well aware that
most cities have created their own affordable housing shortages
through overregulation, has directed HUD to prepare a report by
years en d on the impact of rent control on homelessness. Congress
should act swiftly on the report, which is certain to document the
direct link between rent control and homelessness. .Congress should
require.any.city receiving federal housing funds to develop and
introduce a plan for freeing its housing market from rent
regulation. Noncompliance should trigger a reduction in housing 5)
Tie federal housing assistance to the gradual elimination of rent
control Americas large cities could solve much of their affordab l
e housing 12 C. I subsidies.The federal taxpayer should no longer
be expected to foot the bill when local politicians support city
regulations that are popular with the middle class but reduce the
supply of housing to the poor CONCLUSION Aiiiricais nofsuf
feXngfrom a runaway homelessness epidemic. Nor do the
characteristics-of the homeless conform to the-image routinely
portrayed in the press.
Yet homelessness is a problem that no prosperous and compassionate
society should ignore. Tackling the problem deci sively, however,
means introducing policies that deal with causes, not feel good
approaches based on myths or aimed at solving symptoms willing than
ever to provide the resources needed to deal with the homeless
problem.The danger is that Congress will ru s h to enact expensive
new programs that will do little to help Setting the Record
Straight. The good news is that Americans appear more Crafting an
effective policy on homelessness will require setting the record
straight about how many homeless there are, and about the real
reasons they remain on the street after nearly a decade of rapidly
increasing assistance.
Most important, a wise and sensitive policy requires Congress to
focus on the chronic drug abuse and mental illness problems of most
homeless Americans.
What lawmakers should not do is to heed the selfish;demands*of
those who. 2 would exploit homelessness in a campaign for bigger
handouts to the housing industry.
John Scanlon Policy Analyst I 13