MSHA study examines costs of homelessness

“Cost of Homelessness: Cost Analysis of Permanent Supportive Housing,” a recent study funded by the Maine State Housing Authority, bears out Bangor shelter director Dennis Marble’s ideas regarding what could be done to reduce significantly the number of people who rely on homeless shelters for lack of better alternatives.

Released in October, the analysis concluded that providing permanent supportive housing for people who are homeless improves their quality of life, reduces the burden on social, medical and police services, and can save money.

The study, which looked at nearly 100 formerly homeless residents of Greater Portland, found:

. Housing people who are homeless cuts in half the average cost of services they consume.

. Formerly homeless people received 35 percent more mental health services, but at 41 percent less cost, illustrating a shift from costly emergency and psychiatric inpatient care to less expensive outpatient mental health services.

. Permanent supportive housing cut by more than half emergency room costs (down 62 percent); health care costs (down 59 percent); ambulance transportation costs (down 66 percent); police contact costs (down 66 percent); incarceration (down 62 percent); and shelter visits (down 98 percent).

. The average annual cost of care savings produced by the first year of living in permanent housing was $944 a person. Total annual savings was $93,436 for all 99 tenants.

A summary of the findings and the complete study are available at the MSHA Web site at www.mainehousing.org.