[Senate Hearing 117-869]
[From the U.S. Government Publishing Office]



                                                        S. Hrg. 117-869


                    OPPORTUNITIES AND CHALLENGES IN
                        ADDRESSING HOMELESSNESS

=======================================================================

                                HEARING

                               before the

                            SUBCOMMITTEE ON
           HOUSING, TRANSPORTATION, AND COMMUNITY DEVELOPMENT

                                 of the

                              COMMITTEE ON
                   BANKING,HOUSING,AND URBAN AFFAIRS
                          UNITED STATES SENATE

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                                   ON

           EXAMINING THE POLICIES TO HELP FIGHT HOMELESSNESS

                               __________


                             JULY 19, 2022

                               __________

  Printed for the use of the Committee on Banking, Housing, and Urban 
                                Affairs







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                Available at: https: //www.govinfo.gov /


                               ______
                                 

                 U.S. GOVERNMENT PUBLISHING OFFICE

55-962 PDF                WASHINGTON : 2024












            COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                     SHERROD BROWN, Ohio, Chairman

JACK REED, Rhode Island              PATRICK J. TOOMEY, Pennsylvania
ROBERT MENENDEZ, New Jersey          RICHARD C. SHELBY, Alabama
JON TESTER, Montana                  MIKE CRAPO, Idaho
MARK R. WARNER, Virginia             TIM SCOTT, South Carolina
ELIZABETH WARREN, Massachusetts      MIKE ROUNDS, South Dakota
CHRIS VAN HOLLEN, Maryland           THOM TILLIS, North Carolina
CATHERINE CORTEZ MASTO, Nevada       JOHN KENNEDY, Louisiana
TINA SMITH, Minnesota                BILL HAGERTY, Tennessee
KYRSTEN SINEMA, Arizona              CYNTHIA LUMMIS, Wyoming
JON OSSOFF, Georgia                  JERRY MORAN, Kansas
RAPHAEL G. WARNOCK, Georgia          KEVIN CRAMER, North Dakota
                                     STEVE DAINES, Montana

                     Laura Swanson, Staff Director

                 Brad Grantz, Republican Staff Director

                      Cameron Ricker, Chief Clerk

                      Shelvin Simmons, IT Director

                        Pat Lally, Hearing Clerk

                                 ______

   Subcommittee on Housing, Transportation, and Community Development

                      TINA SMITH, Minnesota, Chair

          MIKE ROUNDS, South Dakota, Ranking Republican Member

JACK REED, Rhode Island              RICHARD C. SHELBY, Alabama
ROBERT MENENDEZ, New Jersey          MIKE CRAPO, Idaho
JON TESTER, Montana                  BILL HAGERTY, Tennessee
CATHERINE CORTEZ MASTO, Nevada       CYNTHIA LUMMIS, Wyoming
CHRIS VAN HOLLEN, Maryland           JERRY MORAN, Kansas
JON OSSOFF, Georgia                  KEVIN CRAMER, North Dakota
RAPHAEL G. WARNOCK, Georgia          STEVE DAINES, Montana

                Tim Everett, Subcommittee Staff Director

Brennan Barber, Senior Policy Advisor for Education, Labor, and Housing

         Kathleen Gayle, Republican Subcommittee Staff Director

                                  (ii)










                            C O N T E N T S

                              ----------                              

                         TUESDAY, JULY 19, 2022

                                                                   Page

Opening statement of Chair Smith.................................     1

Opening statements, comments, or prepared statements of:
Senator Rounds...................................................     3

                               WITNESSES

Ann Oliva, Chief Executive Officer, National Alliance to End 
  Homelessness...................................................     6
    Prepared statement...........................................    29
    Responses to written questions of:
        Chair Smith..............................................   113
        Senator Warnock..........................................   117
Isabel McDevitt, Cofounder and Board President, Work Works 
  America........................................................     7
    Prepared statement...........................................    39
Kathryn Monet, Chief Executive Officer, National Coalition for 
  Homeless Veterans..............................................     9
    Prepared statement...........................................    44
    Responses to written questions of:
        Chair Smith..............................................   118
        Senator Warnock..........................................   120
Cathy ten Broeke, Assistant Commissioner and Executive Director, 
  Minnesota Interagency Council on Homelessness (MICH)...........    11
    Prepared statement...........................................    46
    Responses to written questions of:
        Chair Smith..............................................   120
Jamie Kirsch, Board Member, Journey On...........................    13
    Prepared statement...........................................    50
    Responses to written questions of:
        Chair Smith..............................................   123

              Additional Material Supplied for the Record

Letter Submitted by Catholic Charities of St. Paul and 
  Minneapolis....................................................   127
Congressional Research Service Memorandum........................   129

                                 (iii)










 
                    OPPORTUNITIES AND CHALLENGES IN
                        ADDRESSING HOMELESSNESS

                              ----------                              


                         TUESDAY, JULY 19, 2022

                               U.S. Senate,
  Committee on Banking, Housing, and Urban Affairs,
    Subcommittee on Housing, Transportation, and Community 
                                               Development,
                                                    Washington, DC.
    The Subcommittee met at 2:31 p.m., in room SD-538, Dirksen 
Senate Office Building, Hon. Tina Smith, Chair of the 
Subcommittee, presiding.

             OPENING STATEMENT OF CHAIR TINA SMITH

    Chair Smith. The Subcommittee on Housing, Transportation, 
and Community Development will come to order.
    This hearing is in hybrid format. We will have witnesses 
testifying both in person and by video, and Senators may appear 
in person or by video as well.
    I want to thank Senator Rounds for joining me in this 
bipartisan hearing focusing on the issue of homelessness. 
Senator Rounds found out late yesterday, I think, that he is 
needed at an important markup of the Foreign Relations 
Committee, so he will not be able to stay for the entire 
Subcommittee, which we understand, and thank you for being 
here.
    Senator Rounds. Sure.
    Chair Smith. And thank you also to our panelists, those of 
you in person as well as those of you joining virtually, for 
being here today.
    So without a safe, decent, affordable place to live, 
nothing in your life works. It is nearly impossible to maintain 
a job, go to school, or stay healthy. Based on data from 2020, 
almost 600,000 Americans experience homelessness on any given 
night. Of this number, 61 percent of those experiencing 
homelessness are sheltered and another 39 percent are 
unsheltered.
    Homelessness is a significant challenge in our country and 
getting worse. While current national data is sparse, we know 
that the number of people experiencing homelessness, already 
too high, began rising again around 2015. And, of course, the 
pandemic has only exacerbated the challenges that individuals 
and families face.
    But addressing homelessness is an area of bipartisan 
interest in the Senate. For example, Senator Bennet and Senator 
Portman, along with our full Committee Chair, Senator Brown, 
have introduced the Eviction Crisis Act, which would direct 
assistance to families who are most at risk of losing their 
homes and help
prevent families from becoming homeless. Their bill draws on 
the lessons of the pandemic, and I look forward to hearing from 
our witnesses today about that important bipartisan measure.
    I also know that several other colleagues on this 
Subcommittee have been working on important bills to address 
homelessness, and many of them bipartisan. Senator Van Hollen 
leads legislation with Senator Young to provide opportunities 
for family mobility. Senator Reed and Senator Collins have 
worked together for years to strengthen the United States 
Interagency Council on Homelessness. And while it is outside 
this Subcommittee's jurisdiction, Senator Cantwell and Senator 
Young have had a bill to reform and expand the low-income 
housing tax credit.
    These examples illustrate the bipartisan important work 
happening in the Senate, and I look forward to hearing from the 
witnesses today about these pieces of legislation and how we 
can work with everyone to try to advance some of these 
measures.
    It also must be acknowledged that the biggest factor in the 
rise in homelessness is the severe shortage of affordable 
housing and the lack of housing supply. People sometimes have 
the misunderstanding that folks end up unhoused because they 
experience mental illness or substance use disorder when the 
reality is that most people become ill because they do not have 
a safe, affordable place to live.
    In my view, the answer is to provide shelter and housing 
first and the supportive services that are necessary to help 
people get stable and healthy.
    The backdrop to the issue of homelessness is that our 
Nation is facing an affordable housing crisis. According to 
data published by the National Low-Income Housing Coalition, 
not one State in our country has an adequate supply of 
affordable rental housing for the lowest-income renters. In 
fact, for the 10.8 million families with extremely low incomes 
in the United States, there is a shortage of more than 7 
million affordable homes. This is an incredibly alarming 
problem that we all face in every part of the country.
    The challenge of finding and keeping a safe, affordable 
place to live is real in every part--urban, suburban, and 
rural. It affects everyone. However, homelessness also 
disproportionately affects some communities more than others, 
including Black, Latino, and Native communities. In my home 
State of Minnesota, while Native Americans make up about 1 
percent of the adult population, the 2018 statewide 
homelessness study found that Native Americans make up 12 
percent of the adults experiencing homelessness. The experience 
of Native people in Tribes around homelessness led me to 
partner with Senator Murkowski, Ranking Member of the Indian 
Affairs Committee, to write and pass our bipartisan Tribal 
Access to Homeless Assistance Act, which makes Tribes eligible 
for Department of Housing and Urban Development homeless 
assistance funds through the Continuum of Care Program (CoC). 
We are now focused on implementing this law and hope to hear 
today what we can do to make sure it is successful.
    Additionally, homelessness remains a significant challenge 
for veterans. No one who serves our country should ever find 
themselves without a safe, decent place to call home. In recent 
years, bipartisan efforts have sharply reduced the rate of 
homelessness among veterans, but there is more that we must do. 
I know that this is a priority for Senator Rounds, and I look 
forward to working with you on this issue, as well as with the 
Tribal and Native housing issues that you and I have 
collaborated on frequently.
    Homelessness is not only a housing crisis but also a public 
health crisis as the lack of housing exacerbates health 
challenges. Simply put, housing is a social determinant of 
health. The COVID-19 public health emergency created new 
challenges for unhoused people, both for people living in 
congregate shelters, where there were deep worries about safety 
and public health, as well as people without any shelter at 
all.
    The CARES Act and the American Rescue Plan provided 
billions of dollars in emergency solutions grants, rental 
assistance, and homeowner assistance to help people avoid 
foreclosure and to keep them in their homes. This emergency 
funding directed to States and local providers made a huge 
difference, keeping people healthy, safe, and sheltered. And it 
created opportunities for community organizations to improvise 
and innovate.
    However, much of that funding is now coming to an end, so I 
hope that today we can hear both what we have learned from the 
last 2 years in terms of innovative strategies that have worked 
and also what our experience has been--what our experience 
tells us about the importance of adequate funding for 
homelessness prevention efforts.
    I often hear from people who work in this field that we 
know what to do to solve this problem; we just need the will to 
fix it. We have data-driven strategies that have proven 
effective in addressing homelessness in recent years. We have 
seen this in addressing veterans homelessness in my home State 
of Minnesota.
    The Housing First model builds on what we know: that if you 
do not have, again, a safe, stable place to call home, it is 
very hard to hold onto a job, go to school, or get the health 
care that you need. It has been successful in reducing 
homelessness in many parts of the country, and I believe that 
we should build on its success.
    Addressing homelessness has long been an issue that 
Republicans and Democrats have shared concerns about. I hope 
that in this hearing we can continue this bipartisan work and 
look for concrete steps to take together to address this 
challenge with a comprehensive approach, effective strategies, 
and the resources that we need.
    Thank you, and I now turn to Senator Rounds for your 
opening statement.

            OPENING STATEMENT OF SENATOR MIKE ROUNDS

    Senator Rounds. Thank you, Chair Smith. And, once again, I 
will apologize for having to leave early. We have the markup of 
the accession into NATO for Sweden and Finland this afternoon, 
and this is one that we want to move forward on rather quickly.
    First, I would like to thank our witnesses for taking the 
time to be here today, especially Jamie, who is coming to us 
from Rapid City, South Dakota, this afternoon.
    From Sioux Falls to Washington, DC, to Los Angeles, 
Americans are experiencing growing housing insecurity. 
Homelessness
implicates several critical issues: America's acute shortage of 
affordable homes, behavioral and physical health challenges, 
addiction and domestic abuse, and violence. Therefore, the need 
goes beyond just a safe place to stay. Individuals also need 
supportive services, whether it is clinical health, career 
coaching, or case management, so they can break the cycle of 
homelessness.
    That is why organizations like Journey On, which is 
successfully working in Rapid City, as well as the Doe Fund in 
New York, have an expanding array of supportive services, 
including job training, child care, and others that are 
successful in going well beyond shelter. Journey On 
successfully partners with law enforcement in Rapid City, South 
Dakota, to provide social services and casework management for 
calls related to unsheltered individuals.
    However, Journey On, like many nonprofits across the 
Nation, have run into mounds of Government red tape. Even when 
they have received Federal dollars, the money takes too long to 
be released, and the paperwork burden is onerous. We should be 
removing barriers to addressing homelessness, not creating new 
ones.
    Over the last decade, HUD has pursued a Housing First 
approach to helping homeless individuals and families obtain 
stable housing as quickly as possible without barriers or 
preconditions. However, the Housing First model often ignores 
the underlying causes of homelessness and are only proven to be 
effective at curbing homelessness at the individual level 
rather than at the broader community level.
    HUD now allocates roughly 75 percent of all competitive 
grants to permanent supportive housing projects, even though 
these projects were originally intended to serve just a portion 
of the total homeless population who are chronically homeless. 
This sole reliance on Housing First has prevented Federal 
assistance for any alternative approaches by housing providers 
that may better address local housing needs.
    The Doe Fund, based on New York City but operating 
nationwide, is a stunning example of how Federal policy 
disadvantages organizations that have made incredible strides 
in combining stable housing, dignified work, and life coaching 
to improve their clients' lives.
    An analysis of the Doe Fund's work found that in 2020, 82 
percent--that is, 82 percent--of graduates maintained their 
jobs months after leaving the program with an average starting 
wage of $16.60. For every dollar New York City taxpayers spend 
on the program, they saved an average of $3.60 in costs from 
emergency city services and criminal justice costs.
    These successes raise serious questions of how we 
prioritize Federal funding. Although a Housing First model may 
be effective in some cases, a one-size-fits-all solution is not 
the answer. We should instead give communities flexibility to 
implement interventions that address their issues.
    We also need greater local-level accountability with the 
Continuum of Care funding distribution model used by HUD to 
make certain more homelessness dollars are used to help those 
with the greatest needs. Untargeted Government spending is 
particularly inappropriate at a time of elevated inflation. HUD 
should put into place performance measures that indicate 
whether the program is succeeding or failing in reducing the 
number of people experiencing homelessness.
    Veterans represent a unique subgroup of the entire homeless 
population as they are eligible for specialized Federal 
programs and benefits. Despite tremendous success in reducing 
the number of homeless veterans over the past decade, tangible 
impediments remain in securing adequate housing for this group, 
including a severe shortage of affordable homes, 
underutilization of the HUD-VASH vouchers, and a lack of VA 
support and medical staff.
    Every single veteran should have a place to call home, 
which is why I have sponsored legislation like the Reducing 
Veteran Homelessness Act which would make much-needed 
improvements to both the HUD-VASH and the grant and per diem 
programs to make sure every veteran has the resources they need 
to find a home.
    Nationwide, Native Americans have the second-highest rate 
of homelessness, according to the National Alliance to End 
Homelessness' 2020 State of the Homelessness Report. 
Furthermore, for those Native Americans who live on the 
reservation, traditional homelessness tends to not be as big of 
a problem as under-housing and overcrowding. According to a 
2017 Urban Institute report, 16 percent of Tribal area 
households were overcrowded and 6 percent were severely 
overcrowded.
    Overall, there is a major lack of reliable data and 
research on Native homelessness and overcrowding, and it is 
something I believe HUD should prioritize.
    I want to once again thank Madam Chair for holding this 
important hearing, and I look forward to this discussion on how 
to address homelessness in America, especially among our Native 
and veteran populations. This is one area where Republicans and 
Democrats really do work together in a bipartisan fashion, and 
it is one area that I really think we can find additional 
success.
    Thank you, Madam Chair.
    Chair Smith. Thank you, Senator Rounds.
    I am now going to introduce our witnesses. I will introduce 
all five of you and then turn to each to make your opening 
statements.
    We have three witnesses who are with us in person today: 
Ann Oliva, who is the chief executive officer of the National 
Alliance to End Homelessness; Isabel McDevitt, who is the 
cofounder and board president of Work Works America; Kathryn 
Monet, chief executive officer of the National Coalition for 
Homeless Veterans.
    And joining us remotely, we have Cathy ten Broeke, 
assistant commissioner and executive director of the Minnesota 
Interagency Council on Homelessness; and Jamie Kirsch, board 
member from Journey On, based in Rapid City, South Dakota.
    Welcome, and thank you all for your willingness to speak 
with us today, and I look forward to hearing from each of you. 
And before you begin your opening statements, I just have a few 
reminders. For witnesses and Senators joining us by video, once 
you start speaking, there will be a slight delay before you are 
displayed on the screen. To minimize background noise, please 
click the mute button until it is your turn to speak or ask 
questions. You should all have one box on your screens labeled 
``Clock'' that will show you how much time is remaining. And 
for all witnesses, you will have 5 minutes for your opening 
statements. Your full written statement will be made part of 
the record. And for all Senators, the 5-minute clock applies to 
your questions. If there is any technology issue, we will just 
move on to the next witness until we get it figured out.
    And for the information of Senators, we will have 
opportunities for everybody to ask all of your questions during 
the course of this hearing, so I am happy to stay here as long 
as people's questions are still ready to be answered.
    I will now turn to Ms. Oliva for 5 minutes of opening 
statement.

   STATEMENT OF ANN OLIVA, CHIEF EXECUTIVE OFFICER, NATIONAL 
                  ALLIANCE TO END HOMELESSNESS

    Ms. Oliva. Thank you so much. Chair Smith, Ranking Member 
Rounds, and Members of the Subcommittee, again, my name is Ann 
Oliva. I am the CEO of the National Alliance to End 
Homelessness and a board member of True Colors United. Thank 
you again for having me testify today.
    I want to commend the Subcommittee for the housing-related 
relief measures enacted during the pandemic. I am going to talk 
about the positive results of those investments momentarily, 
but, first, I want to start with the data.
    All the reliable evidence tells us that the situation for 
people experiencing homelessness is incredibly urgent and that 
the homelessness crisis, which predates the pandemic, will 
persist without serious intervention. In 2020, HUD reported two 
unfortunate firsts: we saw an increase in the number of people 
and families living unsheltered; and we saw the number of 
individuals living on the streets exceed the number of 
individuals living in shelters for the first time.
    More than 580,000 people experienced homelessness on a 
single night in January of 2020, and 1.5 million people 
experienced sheltered homelessness at some time in 2018. People 
of color and historically marginalized people are 
disproportionately impacted by homelessness. Families 
experiencing homelessness are typically headed by women. Many 
are headed by young parents, and they include a high percentage 
of young children.
    Youth, veterans, and adults experiencing chronic 
homelessness are suffering on our streets and in our shelters 
every day. And data shows that more than half of sheltered 
people and 40 percent of unsheltered people work but still 
cannot afford housing.
    Most continuums of care that we surveyed believed that 
unsheltered homelessness has increased. But our information 
from the field also indicates that the number of families 
experiencing homelessness seems to have decreased during the 
pandemic, and this is likely the result of pandemic relief 
measures like the child tax credits, unemployment insurance 
supplements, emergency rental assistance, the eviction 
moratorium, and other steps that the Federal Government took to 
protect extremely low-income families from the impacts of the 
pandemic.
    Those programs worked. But as those policies and 
investments end, at the same time that we see rents skyrocket 
nationwide, we can expect to see negative consequences if we 
fail to act. Skyrocketing rents make it harder for low-income 
people to stay in their homes, create even greater challenges 
for people exiting incarcerations or systems like the child 
welfare system, and make it even more difficult to get people 
experiencing homelessness into safe and affordable housing.
    The inability of people to afford housing is the major 
driver of homelessness. People experiencing homelessness do 
absolutely want and need other resources like health and 
behavioral health services and employment services, no doubt. 
But a safe, stable, and affordable place to live ends 
homelessness and provides the foundation for achieving other 
life goals.
    The housing investments made as part of the Nation's 
pandemic response helped people across the country to keep or 
get into housing. For example, about 3.8 million households 
received emergency rental assistance so they could stay in 
their homes. Nearly 90 percent of the 70,000 emergency housing 
vouchers for households experiencing or at risk of homelessness 
have been issued or leased. We can learn from what has worked 
and what has not as we look to the future, but given the 
circumstances, we know that these programs are not enough 
because we are facing daunting challenges. Rising rents and low 
vacancy rates make finding and keeping permanent housing more 
difficult for homeless and at-risk people. Homeless systems 
consistently report significant staffing challenges like 
shortages, high turnover, and burnout.
    Linking mainstream health and behavioral health services 
with housing can be a challenge, and criminalization of people 
experiencing homelessness is rising. But as you mentioned, we 
know what works. Making evidence-based policy decisions in 
addition to sustained investments in housing and services at 
the national level is critical. This includes protecting the 
affordable housing stock we have, increasing supply, increasing 
affordability by expanding the housing choice voucher program, 
and making the services that people want and need more 
accessible.
    And, further, it means supporting evidence-based approaches 
that prioritize permanent housing and choice as the foundation 
for healing from the trauma of homelessness. It also means 
partnering with people who have lived experience so the changes 
we make are informed by real-world and practical expertise.
    The information we have tells us that the public wants an 
end to homelessness not by criminalizing people but by 
implementing sound housing and service solutions so that people 
can thrive. We know how to do that.
    Thank you, and I look forward to your questions.
    Chair Smith. Thank you very much. We will now turn to Ms. 
McDevitt.

 STATEMENT OF ISABEL McDEVITT, COFOUNDER AND BOARD PRESIDENT, 
                       WORK WORKS AMERICA

    Ms. McDevitt. Thank you so much. Thank you so much to the 
Committee for hosting us today. My name is Isabel McDevitt, and 
I am cofounder and board chair of Work Works America, and I 
have worked in direct services since 1998 in cities such as New 
York, Philadelphia, and metro Denver, Colorado.
    I am here today to talk to you about the Work Works model 
as an example of how we need to expand our toolkit to address 
homelessness in cities across this country. Thank you for my 
fellow witness and for both Senator Smith and Senator Rounds 
for your
introductions. I do not need to tag on more around the need. 
But what I do want to talk about is solutions and what we need 
to do to expand our response.
    The Work Works model was founded 30 years ago in New York 
City by the Doe Fund, and it has since been scaled to six 
communities nationwide. We regularly get requests for many, 
many more. We are in Atlanta, Georgia, Colorado, Philadelphia, 
and working on Denton, Texas, and Portland, Maine.
    But what we know is that the combination of paid work and 
social enterprise coupled with transitional safe, supportive 
housing and support services is fundamental for people 
experiencing homelessness that are not qualifying for other 
resources.
    In a HUD report earlier this year through the House America 
Program, it was indicated that for adults experiencing 
homelessness, we only have 15 units for 100 people on the 
street. This is both an eligibility issue and an availability 
issue. So, yes, we need to expand access.
    But what I have seen by running services on the ground, 
particularly in my work in Colorado where I founded the Ready 
to Work Program, we see that, as a shelter provider, it 
essentially breaks down a third, a third, a third. A third of 
people come in, self-resolve, you do not see them for more than 
a couple days, and they are on their way. A third are eligible 
for a lot of the HUD-funded programs that you have heard about 
today--permanent supportive housing, VASH, and so forth. But 
what about that middle third? And this is where I ask you today 
to think about expanding our response, and, most importantly, 
two key factors: looking at policy and expanding the ability to 
act quickly and swiftly with creative models. So this means 
flexibility about what we define as housing. There are people 
on the streets that would prefer to live in a co-op, would 
prefer to live in a tiny home, and, frankly, that can be much 
more practical to implement on the ground.
    Second, let us share our response with other players, so 
the U.S. Interagency Council on Homelessness already has a 
format for doing that. Let us engage other agencies beyond 
HUD--Department of Labor, Department of Justice, and others--to 
look at these populations that are disproportionately 
represented in our homeless populations across this country.
    The Work Works model is one example, and what I will say is 
it is a great example of how, with creativity, we can leverage 
public-private partnerships and bring models to cities across 
the country. The Work Works model, like I said, combines paid 
work and social enterprise. So what that means is people are 
going to work, they are earning money, they are saving money, 
and they are preparing to reenter the mainstream workforce. We 
all know we have a labor shortage, so why aren't we creating 
ways to reach into marginalized communities with not only 
access but good better-paying jobs to meet our labor needs. 
This is an untapped population.
    The second leg of the Work Works model is housing. In 
Colorado, we renovated office buildings into high-quality 
dormitory housing with privacy as well as community space. We 
did it in 16 months in two different locations in Colorado, 
renovating existing commercial real estate. That is something 
that we should be looking at as another tool in the toolkit. It 
is wonderful to build from the ground up, but what about the 
cost? What about the timeline? And what about all the issues of 
NIMBY? This is a model that is just one example of how we need 
to get creative.
    And then, last, connections to supportive services. We see 
incredible challenges on the ground related to opioid use, 
related to all types of behavioral health concerns, and the 
public crisis of just the trauma of being on the streets. We 
can cut homelessness--the length of homelessness in half or 
even less, or we can be swift and respond so much more quickly 
if we have more tools in our toolkit.
    So I ask this Committee to really think through those two 
key points. How can we look at our policies and expanding our 
ability to act? And, second, how can we bring more players to 
the table? Our communities need it, and we need to promote 
innovation on the ground because our communities know what they 
need and they need more tools to be able to help them get 
there.
    So thank you so much, and I look forward to your questions.
    Chair Smith. Thank you very much. Ms. Monet.

 STATEMENT OF KATHRYN MONET, CHIEF EXECUTIVE OFFICER, NATIONAL 
                COALITION FOR HOMELESS VETERANS

    Ms. Monet. Thank you for the opportunity to join you today. 
As you all know, 82 communities in three States have actually 
achieved the Federal benchmarks and criteria for ending veteran 
homelessness. But there were still 37,252 veterans homeless on 
any given night in 2020. And when we think about how we got to 
that point, we know that decreases in veteran homelessness were 
due in large part to congressional investment in key Federal 
programs, implementation of evidence-based solutions like 
Housing First, and dedicated coordination at the national and 
local level.
    Homelessness is caused by a fundamental mismatch between 
the availability of affordable housing in a community's market 
and an individual's ability to pay for that housing, and this 
mismatch, paired with the results of systemic and institutional 
racism, has been the major driver for the nationwide rise in 
housing instability, particularly among marginalized and 
minoritized people and veterans alike.
    During the pandemic what we saw in the veteran space was 
that homeless service providers pivoted their programming. They 
reimagined what was possible for veterans. They reconfigured a 
whole lot of congregate transitional housing, and they worked 
so hard to keep veterans in their communities safe and moved on 
permanent housing.
    The confluence of rising inflation rates in our current 
economy and the housing affordability crisis that we are 
seeing, paired with the winding down of pandemic assistance 
programs like ERA in many communities creates this perfect 
storm where we are going to see homelessness increase if we do 
nothing.
    In my opinion, now is the time that we need to create 
permanency among programs, particularly those for VA that have 
continued on these 90-day extensions because they were 
authorized and that authorization is actually tied to the end 
of the public State or local health emergency. We need to 
continue to implement lessons that we have learned during the 
pandemic, and we also need to double back to address persistent 
barriers that slow the housing placement process and perpetuate 
further inequities.
    It is no secret that normal pre-pandemic was not really a 
great normal for a lot of people who were facing housing 
instability, and homelessness is really like a symptom of those 
challenges, right? And so when we think about the growth of the 
unsheltered population, we do need to focus on crisis response 
services like shelter and outreach, but really we need to 
address the root causes. So we need to think about how we can 
develop more affordable housing, address, you know, 
affordability rather than thinking about ways that we can 
utilize law enforcement as sort of the default response to a 
social problem.
    Housing affordability I think is the number one challenge 
that we hear from our members who are working with veterans who 
are exiting homelessness, and nationwide there are 
approximately 36 affordable units for every 100 individuals 
searching, and that is a recipe for disaster.
    The housing shortage has actually driven nationwide rent 
increases, and we have seen that rents have increased by over 
17 percent just in 2021 alone, and I think by another 5 percent 
this year until July 1. So I think what we see is that the 
shortage of units is really going to increase the risk and just 
create a whole lot of pressure for folks out there who are 
looking for housing.
    So we know--and I am telling you this again; I hope you are 
hearing me--invest in affordable housing, please. Congressional 
support for VA's homeless programs was really great during the 
pandemic. It created flexibility. It offered new spending 
authorities to meet emergent needs, and it ramped up the 
capacity of VA programs during COVID. But sufficient funding 
must be incorporated permanently into non-emergency 
appropriations and authorization caps to maintain our ability 
to respond effectively as we move away from COVID-specific 
emergency funding.
    The GPD program, which is VA's transitional housing 
program, awarded two rounds of capital grants for providers to 
de-congregate facilities during COVID, and we think that those 
grants should be continued and enhanced. We also feel that the 
daily per diem rate must be addressed. At the sunset of the 
public health emergency, the maximum reimbursement rate will 
drop from $152 to $60 a day, and that is a rate that is 
designed to provide overnight housing, meals, and wrap-around 
services and supports for homeless veterans. So we recommend 
that you pass S. 2172 to directly address these issues 
immediately.
    The SSVF program's shallow subsidy initiative has recently 
been expanded due to its success during the pandemic, and we 
support its expansion and recommend further studies so we can 
continue to improve this program.
    And I do want to just touch quickly on the HUD-VASH program 
because it has been fairly successful at meeting the acute 
needs of veterans. However, I do think that VA has really 
struggled with offering case management services to veterans.
    Despite the program's successes, we do think that there is 
more VA can do to diversify the options there and also to think 
about contracting and doing other things to staff up.
    The second challenge that they are facing with this program 
is that vouchers are just more challenging to use because of 
the housing affordability crisis and the stigma that some 
landlords have against accepting vouchers as a form of rental 
payment.
    The last thing I do want to say is that staffing for both 
VA and its grantees remains a challenge. There are only so many 
qualified providers in any region, and to a certain degree, 
they are competing or the same amount of talent--or the same 
talent that exists in the pool. So we do think that Congress 
needs to look at how they can support VA and providers to 
address this challenge.
    Thank you for your continued interest in address veteran 
homelessness.
    Chair Smith. Thank you so much, Ms. Monet.
    We will now turn to--let me just--Mr. Chair. I am really 
delighted that we are joined by the big Chair of the Banking, 
Housing Committee, and thank you for being with us, Senator 
Brown. Would you like to say a few words?
    Chairman Brown. Thank you, Senator Smith, Madam Chair. And 
thank you to the witnesses. Ms. Monet, thank you for your work 
on the Veterans Committee and your comments about HUD-VASH and 
how important that is. I apologize for not being able to stay, 
but I just wanted to stop by and thank Chair Smith and Ranking 
Member Rounds for the terrific work they do. They work together 
as well bipartisanly as any Chair or Vice Chair I have seen in 
this institution, and I appreciate them for that. And Jack Reed 
has been working on combating homelessness almost as long as 
Tina and I have been alive, certainly before we were in the 
Senate.
    Chair Smith. Former Chair of this Subcommittee as well.
    Chairman Brown. So thank you for that, and this is a 
serious public health issue that I am hopeful we can address, 
if not in this reconciliation package, down the road for sure. 
Thank you.
    Chair Smith. Thank you, Mr. Chair.
    We will now turn to Ms. Cathy ten Broeke, who joins us 
remotely. I am delighted to have Cathy join us as well. Cathy 
and I have had the opportunity to work together in a variety of 
environments over the years, so welcome, Cathy.

   STATEMENT OF CATHY TEN BROEKE, ASSISTANT COMMISSIONER AND 
     EXECUTIVE DIRECTOR, MINNESOTA INTERAGENCY COUNCIL ON 
                      HOMELESSNESS (MICH)

    Ms. ten Broeke. Thank you very much. Chair Smith, Ranking 
Member Rounds, and Members of the Subcommittee, thank you for 
the opportunity to testify today. I am Cathy ten Broeke, 
assistant commissioner and executive director of Minnesota's 
Interagency Council on Homelessness, and the council is a 
cabinet-level body led by our Lieutenant Governor, Peggy 
Flanagan, comprised of the leaders of 13 State agencies.
    Minnesota has a strong history of bipartisan leadership on 
homelessness. I have worked on the issue for nearly 30 years in 
direct service and public policy roles. I have witnessed 
progress, missed opportunities, lessons learned, and 
heartbreak. We have in this moment a critical opportunity to 
shift how we respond to homelessness and to see it as the 
crisis and the public health emergency that it is.
    Today I want to share with you what is working in Minnesota 
and where challenges remain. Minnesota is home to 87 counties 
and 11 Tribal nations. Homelessness impacts every part of the 
State. Approximately 8,000 people are homeless on any given 
night. Half are families with children and 25 percent are 
people without shelter, sleeping outside. Approximately 40 
percent of all people identified as homeless are in rural parts 
of our State.
    One-in-four Minnesota households pays more than they can 
afford for housing, putting them at risk of homelessness. Over 
the last two decades, rents rose 21 percent while incomes rose 
by just 3 percent. Homelessness shows the impacts of racism. In 
Minnesota, if you are Black, you are 15 times more likely to be 
homeless than a White Minnesotan. If you are Native American, 
you are 27 times more likely to be homeless.
    Our work on homelessness in Minnesota has shown uneven 
progress. Where we have had engagement and investment from all 
levels of government, we have had the greatest success. Our 
best proof that ending homelessness is possible is our 
collective work to end veteran homelessness. With the dedicated 
resources guided by data and evidence, the outcomes have been 
stunning. We have effectively ended veteran homelessness in 85 
of Minnesota's 87 counties.
    Being a veteran in Minnesota is now a protective factor for 
homelessness. I look forward to the day when being a child is a 
protective factor, when having a serious health condition is a 
protective factor, and when your race does not increase your 
likelihood of becoming homeless.
    In Minnesota, we have increased resources for families with 
children, and that has driven a 32 percent decrease in family 
homelessness statewide in the decade starting in 2010. We 
credit these reductions to targeted prevention, coordination 
with employment services, and investments in families with the 
very highest barriers to accessing housing. We have learned 
over the years that all people are ready for housing. We need 
housing that is ready for them.
    The pandemic, while devastating and traumatic, was also a 
moment of great learning. Minnesota and Federal resources 
helped us save lives during the pandemic. Statewide we 
established 2,800 hotel rooms and other safe spaces to allow 
for physical distance, provide emergency staffing, food and 
supplies, isolation, and additional State housing support. The 
increased resources helped a struggling hospitality industry 
and expanded shelter services, created a hotel-to-home model, 
which connected people staying outside with permanent housing.
    In addition to the resources that helped protect people in 
shelters and outside, Federal rental assistance during the 
pandemic was critical to stemming the tide of homelessness. 
Minnesota administered Federal emergency rental assistance to 
every county in our State. Hennepin County reported that over 
1,000 fewer children experienced homelessness in 2021 than they 
did 2 years earlier, and they credit that to the widespread 
availability of rental assistance.
    Sadly, as those Federal resources come to an end, we are 
starting to see a return to the 2019 rates of family 
homelessness. Federal investment during the pandemic has given 
Minnesota the opportunity to show what is possible. Federal 
partnership in tackling the challenges ahead will be critical 
to our success going forward.
    I have four high-level recommendations to share with you, 
and you will find many more details in my submitted testimony 
as well.
    One, the homeless response workforce system is overwhelmed 
and underfunded. We need Congress to make more and sustained 
investments in housing and homelessness program. During the 
pandemic we witnessed the life-saving work of shelters and 
outreach workers, and we also know that while shelters do save 
lives, housing is what ends homelessness.
    Housing is out of reach for the lowest-income Americans. We 
need Congress to increase the supply of housing as well as its 
affordability by making bold investments in rental assistance.
    Three, people with complex medical conditions, including 
substance use, mental illness, and other physical health 
issues, are not well served in existing systems or 
interventions. We need increased investments and a stronger 
alignment of social services, health care, and housing.
    And, finally, our system to prevent and end homelessness 
for veterans works. We need to sustain that commitment, and we 
need to expand it to reach all populations.
    All of these solutions will require that we center the 
voices and experiences of people who have faced homelessness. 
They are the experts in what works. We know that housing is a 
social determinant of health, but it is also a social 
determinant of educational achievement, workforce growth, and 
neighborhood, community, State, and national well-being.
    The resources that were invested to respond to the pandemic 
taught us what was possible, and it is my hope that we will 
continue to respond with that same level of urgency. I have 
never stopped believing that in Minnesota and in this country, 
we can achieve the vision that all people have a safe place to 
call home, that children and youth need not sleep in cars one 
night and go to school the next day, and that we can live in a 
State and a country without homelessness. This is a problem we 
know how to solve, and it is not a question of ``Can we?'' but 
``Will we?''
    Thank you.
    Senator Smith. Thank you, Ms. ten Broeke.
    And I am now happy to welcome virtually to the Committee, 
Jamie Kirsch.

            STATEMENT OF JAMIE KIRSCH, BOARD MEMBER,
                           JOURNEY ON

    Ms. Kirsch. Thank you so much to the Committee for inviting 
me to be here today. I am a current and active board member for 
Journey On, and I am also a nonlaw enforcement of the Rapid 
City Police Department.
    Journey On was incorporated as a nonprofit in 2018 by 
founder Tracy Sigdestad who is a member of the Mohawk Tribe. In 
early 2020, Journey On was focused on youth mentorship and 
substance abuse recovery. It was also in early 2020 when the 
Rapid City Police Department was awarded a community-based 
crime reduction grant through BJA. When determining what to 
focus the grant on, it seemed essential to address 
houselessness, given that it was roughly generating 65 percent 
of calls. Additionally, it was clear that Native Americans 
suffered from houselessness disproportionately, making up over 
80 percent of those who are considered literally houseless. The 
high call volume resulted in low morale among officers as they 
were not equipped with the tools to address the causes of 
houselessness nor the resources to provide sustainable 
solutions.
    Realizing the need for greater collaboration and 
coordination with Native-led social service organizations, the 
Rapid City Police Department approached Journey On to see if 
they would consider building capacity for a community-initiated 
response to Rapid City's growing houseless community. Soon 
thereafter, a core group of partners from Journey On, the 
police department, and the University of South Dakota applied 
for a HUD-ESG CARES Act funding grant. Since, this grant has 
funded 75 percent of Journey On outreach efforts.
    In January of 2021, the city approved a contract with 
Journey On, funding three full-time positions and providing two 
city vans to conduct outreach in. Since early December of 2021, 
Journey On has responded to nearly 5,000 calls through 911 
dispatch. Journey On operates as part of a larger coresponse 
that includes the police department's Quality of Life Unit, the 
fire department's mobile medic team, Great Plains Tribal 
Leaders Health Board, Pennington County Health and Human 
Services, and Volunteers of America. And since early December, 
we estimate that Journey On has saved the city of Rapid City 
nearly $873,000.
    Journey On has 13 employees, and all but one is Native 
American. All have lived experiences with houselessness, the 
criminal justice system and/or addiction. Each of Journey On's 
team members are credible messengers and use culture forward 
approach to service. Most of Journey On's board members are 
Native American as well. Our Native American community members 
do not believe in the stigmas that come with the concept of 
homelessness and prefer the terms ``houselessness'' or 
``houseless relatives''.
    In March of 2022, a collection of partners, including 
Volunteers of America, Journey On, RCPD, and the city of Rapid 
City developed the ``We Connect Business Toolkit.'' The 29-page 
booklet focuses on educating businesses about the houseless 
population, Native American culture, mental health challenges, 
appropriate responses to our houseless community, and many 
other topics. This was a critical piece of connecting Journey 
On to the broader community and solidifying the roles of first 
responders to our houseless community members.
    Now, for the challenges. Some of our key organizational 
challenges are with Federal funding. Federal funding does not 
allow for staff to receive paid time off and provides no avenue 
for health care or retirement benefits. The 10 percent de 
minimis rate is too low to accommodate the needed staffing to 
run a team effectively or to meet the administrative burden 
created by data tracking requirements.
    The reimbursement-based nature of Federal grants makes it 
difficult for organizations that are small, minority led, and 
exist in rural or smaller urban settings to secure Federal 
grants and maintain them. Developing capacity for community-
based organizations like Journey On is difficult. When Journey 
On agreed to develop a Street Outreach Program for Rapid City, 
they had one employee, no functioning board members, and no 
sustainable revenue streams. Over the past 2 years, a 
collective group of board members invested an incredible amount 
of time to develop capacity for Journey On. Journey On is one 
of three local Native-led organizations now working with the 
White House on the Community Violence Intervention 
Collaborative, or CVIC. Through CVIC, Journey On is receiving 
technical assistance and mini-grant support to grow their 
capacity. The White House CVIC initiative needs much more 
funding over a longer period of time to support the types of 
local innovations it has set out to create and support.
    Housing challenges. First, in Rapid City we have very few 
options for emergency shelter. According to the 2022 Point in 
Time Count, Rapid City reported 35 percent of the overall total 
of unsheltered houseless individuals and families in the State, 
which is more by 15 percent than what the largest city in South 
Dakota reports, with nearly 2 \1/2\ times the population.
    Second, while we understand the Housing First model, some 
folks are not ready to go straight into permanent housing and 
require transitional housing options. Folks who are not used to 
living in a home on their own need to relearn how to care for 
their home, they need to create new social networks, and they 
need to learn new routines and methods to comply with rules in 
this space to do that.
    Third, Rapid City is 3,000 affordable housing units short 
of what it needs. The wait list for the South Dakota Housing 
and Development Authority's rehousing programs is 180 people 
long, and Pennington County Housing has maintained a wait list 
of 3,200 people for years. In Rapid City it is nearly 
impossible to incentivize developers to get involved in 
affordable housing projects. Market rate apartments are going 
at a premium, and developing in the Black Hills is costly. 
There are very few Federal incentives that developers can take 
advantage of to develop enough inventory to address the need.
    And, last, the PIT count does not allow communities to 
truly capture those who are housing insecure, and it certainly 
does not allow us to capture houselessness in the way that our 
Native American community members experience it. Many of those 
living in our Tribal areas do not have access to any form of 
emergency shelter and are living sometimes 20 people to a one-
bedroom home because they have to. Some of these homes are not 
fit for human habitation, having no roof or siding to keep it 
safe from the elements, and no running water, electricity, or 
trash collection.
    With that, I would like to thank the Committee and the 
Members of the Senate who invited Journey On here to speak 
today and for taking time to learn about how our innovative 
model works here in Rapid City and the challenges we face and 
still making it sustainable.
    Senator Smith. Thank you so much to all of you.
    We will now begin our round of questions from Senators. 
Each Senator will have approximately 5 minutes, and I would 
like to have Senator Reed go first.
    Senator Reed. Well, I thank the Chairwoman for her 
graciousness, and thank you all for your excellent testimony. 
And I can tell you the same story you just told us. In 
Providence, Rhode Island, the average rents have jumped 23.8 
percent in the previous year. That is extraordinary. We are 
running out of our emergency rental assistance funds. The 
emergency shelters are closing down. Our front-line staff, as 
you well know, is really burning out after the pandemic. And 
that is why it is essential, I think, that we increase funding 
for the homelessness assistance grants, and that would include 
the Continuum of Care Program, which serves over 750,000 
people, also the Emergency Solutions Grants serving another 
approximately 350,000.
    So, Ms. Oliva, why are Federal resources like homelessness 
assistance grants essential to combating homelessness, 
particularly as the pandemic-specific programs begin to wind 
down?
    Ms. Oliva. Thank you so much, Senator Reed, for that 
question. As you might remember, I actually ran those programs 
at HUD for about 10 years, so they are near and dear to my 
heart.
    You know, those programs that are funded through the 
homelessness assistance grants account--and I would also count 
HUD-VASH in that sort of general group of homelessness-specific 
programs--really form the backbone of our homelessness response 
in this country. And in a lot of communities--not all 
communities, but in a lot of communities, they are most of the 
funding that is available for homelessness assistance programs.
    So increasing resources in the Continuum of Care Program 
and through the ESG program and HUD-VASH are sort of the 
backbone and the lifeline for many communities in their 
response to homelessness. It also creates a way for HUD to be 
able to put forth promising practices and evidence-based 
approaches and prioritize funding for those types of resources.
    Since we are talking about the Continuum of Care Program, I 
would note three things.
    First is thank you so much for the legislation that allows 
Tribes to receive and be eligible for the Continuum of Care 
Program. It is incredibly important. There are some issues 
related to implementation that we are all working out right 
now, but it was incredibly important.
    Two, in HUD's last budget request, they asked for two tools 
that I think are going to be really important in addition to an 
increase in the funding for those programs. One is increasing 
the cap on planning for continuums of care. That is really 
important because continuums of care are really the subject 
matter experts. And as funding is coming into communities that 
goes through other types of sort of mechanisms, it is important 
for CoCs to have planning dollars to work with them.
    They also mentioned wanting a 2-year NOFA cycle, and we 
would support that. The National Alliance supports that, in 
part for some of the reasons that Ranking Member Rounds 
mentioned. Local CoCs need some time to be able to do 
implementation, and having a 2-year funding cycle would be 
really helpful there.
    The last thing that I would note that was raised by one of 
my colleagues up here on the panel is around staffing and 
increasing
--the CoC Program requires increases in fair market rents and
leasing amounts that are commensurate with what is happening in 
the community. I would say we need to do the same for staffing 
so that providers are properly resourced and can provide their 
staff with cost-of-living increases when they need to.
    Senator Reed. Well, thank you very much.
    Let me just shift quickly, because you mentioned HUD-VASH, 
to your colleague Ms. Monet. One of the things I have observed, 
first of all, the HUD-VASH program is extremely useful. But 
there are many areas where the vouchers are going 
underutilized. Is that an issue you have identified? And can 
you give us some insights why they are being underutilized?
    Ms. Monet. Absolutely. I think that there are a number of 
issues to unpack there, from a lack of staffing at VA for case 
managers, to a rental market that may not be as willing to 
accept vouchers. I think we hear from communities across the 
country that it is just getting harder and harder to move 
veterans with vouchers into permanent housing, and I think even 
for some of the veterans that already have vouchers, to retain 
the housing they have because the housing market is just so hot 
and landlords can move on to other higher-paying clientele. And 
so I do think that we need to get creative around how we can 
incentivized landlords and PHAs to get vouchers out the door, 
but also how we support VA to better case-manage folks who are 
utilizing vouchers and how we can give them some flexibility 
there.
    Senator Reed. Thank you very much, Madam Chairman. Thank 
you. My time has expired, but I want to thank all the panelists 
for not only your thoughtful testimony today but for your 
incredible efforts.
    Thank you very much.
    Chair Smith. Thank you, Senator Reed.
    I want to start here. I think each of you in one way or 
another talked about the great benefit of the--during the 
course of the pandemic, the impact of the resources that we 
were able to provide for rental assistance and the child tax 
credit and other strategies to help lift people's income and 
also help make housing more affordable. And several of you also 
talked about how this was an opportunity for some time around 
innovation and really trying some new things and finding some 
examples of real success on the ground.
    Ms. ten Broeke, I am going to turn to you first. I have 
been really heartened to see some real successes in Minnesota 
where in Hennepin County we have seen the lowest number of 
people experiencing homelessness, I think, in the last 17 
years. So could you just share with us briefly what we have 
seen in Minnesota about the impact on the ground of COVID 
relief funding streams? And what are the key lessons or 
takeaways in terms of what we have learned to do, good lessons 
that we have learned during the course of this terrible time?
    Ms. ten Broeke. Thank you very much, Senator Smith. I am 
happy to respond to that. You know, we were able, with the 
COVID Federal resources, just to be so much more flexible and 
to get those dollars out to communities quickly to respond to 
the crisis at hand. And because of that and because we were 
turning to communities and saying, ``What is going to work?'' 
and ``What do you need to make this work?'' they were coming up 
with innovations that we had not seen before. You know, when 
the pandemic hit, as many of you know, many, many people sought 
refuge in encampments. At one point in Minneapolis we had an 
encampment in South Minneapolis with over 200 tents, people 
really struggling, and we were able to use Federal resources 
quickly to stand up some new programs, one being a culturally 
specific shelter that could bring people inside, that but for 
that kind of a shelter that could meet their needs, they may 
have remained outside and unsafe.
    One of our housing providers who was helping us stand up 
hotel-to-home models, which was another very, very innovative 
project, of course, that we had never done before, helping the 
hospitality industry but also standing up models that would 
work with people, bring them into hotels to protect them from 
the pandemic, but then very intensely work with them to get 
them out of those hotels into permanent housing so they did not 
return to the streets. During that big, large encampment, that 
same provider went into the encampment, they literally talked 
with almost every single person staying in the encampment to 
find out from them what would work to bring them in and make 
them feel safe. And they developed a program called Avivo 
Village. It is literally an indoor village of structures where 
people had their own privacy, their own space. They could come 
in, they could be safe, and once again, like the hotel program, 
they could work individually to help try to get people out and 
into permanent stable housing, which is the goal of all of the 
programs that we are working on.
    So I cannot say enough about how important the flexibility 
and the way they were delivered with urgency made such a 
difference, and it was not just in the metro area, even though 
that is where maybe things were most visible in terms of the 
challenge. In Rochester, multiple organizations, including the 
city library system partner to operate warning space and 
overnight shelter, and, you know, moving people in Ramsey 
County out of hotels and into supportive programs, the American 
Indian Community Development Corporation was just an amazing 
partner the whole time with trying to increase the amount of 
really specific Native-focused work, which is who was really 
most dramatically impacted by unsheltered homelessness during 
the pandemic.
    So we are very grateful in Minnesota for the resources we 
were able to use, along with rental assistance that kept people 
in their housing. Hennepin County really truly did see fewer 
people experiencing homelessness during the pandemic than 
before because of rental assistance, and I think that proves to 
us that that is the kind of intervention, sometimes for very 
small amounts of resources, we can keep people in housing and 
prevent long-term costs, and obviously the trauma of 
homelessness on children.
    Chair Smith. Thank you so much.
    I am going to return to the other members of the panel to 
ask kind of a follow-up to that question, but I believe that 
Senator Tester from Montana is online.
    Senator Tester. I am.
    Chair Smith. And I would like to give Senator Tester a 
chance to ask questions.
    Senator Tester. Well, thank you, Madam Chair. It is good to 
be here. Unfortunately, this is an issue that is fundamental to 
communities and life and families and all that stuff.
    Ms. Monet, it is good to see you again. As you know, one of 
the most successful initiatives in the effort to end veterans 
homelessness is the HUD-VASH program. This program continues to 
suffer from VA's ability to hire case managers, so I would love 
to know what your thoughts are on VA's current effort to 
resolve this issue, both internally and through contracting.
    Ms. Monet. So I think I will start by saying that 
contracting is a really great opportunity to address some of 
the shortages, but I do think that there is a lot more that VA 
can do. What we saw during the pandemic was that VA was getting 
creative about using some of the Rescue Plan and CARES spending 
to actually pay for hiring incentives and moving costs to 
recruit HUD-VASH case managers to communities where they might 
have otherwise had a hard time doing that.
    Now, they are not able to do that once the current 
emergency health designation ends, so I think that that is one 
thing. I do think we have also seen communities where the VA 
has gotten really creative around what constitutes HUD-VASH 
case management, meaning that they are taking a more 
multidisciplinary approach and utilizing the support of peers 
to kind of help stretch the ability of a licensed clinical 
social worker, for example, to be able to successfully case-
manage the veterans on their caseload.
    So I think that there is a lot more that we can dive into 
if Congress is willing to support them in doing that.
    Senator Tester. OK. So this goes to you, Ms. Monet, again. 
I think I will also see if Cathy ten Broeke would like to visit 
about this. I hear your opening statements, but housing is not 
only not available for low-income folks, it is not available 
for workforce folks. And I would say in Montana, it is not 
available in Montana, but I would bet you Chairwoman Smith 
could say it is not available in Minnesota, and I would bet you 
Senator Cortez Masto would say it is not available in Nevada. 
It is not available anywhere, workforce housing. It is an 
incredible bone anchor. It is one of the reasons I wish we 
would have done something this Congress, but we are doing 
nothing. And, in my opinion, it is a problem that will solve 
itself, but it will probably take 30 to 40 years to do it.
    What do you two think we could do to help speed up 
availability--and I will leave low-income out of it, just 
affordable housing for folks, to be able to fill jobs and 
important jobs, too, whether it is a teacher or an auto 
mechanic or a bricklayer or whatever it might be. Is there 
anything the Federal Government can do or is this just live 
with it and communities continue to struggle to find places for 
entrepreneurs and for folks in the working class to live? Go 
ahead. You can go first, Ms. Monet.
    Ms. Monet. Well, I think what we have seen during the 
pandemic is that some communities have gotten really creative 
around taking existing space and converting it into housing, 
and I think we have seen this predominantly for affordable 
housing, but I think it is a model that could work for 
workforce housing as well, and potentially might be easier to 
execute because you would not be worrying about rental 
subsidies and such.
    Senator Tester. What do they use for money to do this 
rehab?
    Ms. Monet. I want to pitch this to Ann Oliva on the panel 
who might be better equipped to answer the question.
    Senator Tester. Well, go ahead. Pitch it to her. I just 
want answers. I do not care who answers them.
    Ms. McDevitt. Ann was pointing to me. So the Work Works 
model is all about work and all about getting people back to 
work, but also creating opportunities for people who have jobs 
to be able to sustain housing, so----
    Senator Tester. Well, here is the problem. Stop. Here is 
the problem: We have got people--we do not have any people. We 
have got jobs up the gazoo. I mean jobs up the gazoo. You can 
walk in, have no experience, and you can get a good-paying job, 
but they cannot hire you because there is no place to live. How 
do we fix that problem?
    Ms. McDevitt. So what I was going to say is the part of the 
model where we can create cost-effective affordable housing is 
through converting commercial spaces. The problem is there is 
no funding to do that from the Federal level because it is not 
traditional units, you know, and all the regulations. But you 
can have very high-quality residences like, you know, the 
former SROs reimagined that can accommodate workforce 
populations that we know we need to invest in higher wages and 
training so that people can move up the career ladder, but for 
that first-rung workforce, it is practical and cost-effective 
to convert commercial spaces, hotels, and other types of 
housing stock, because it is quicker and faster. The problem is 
the funding stream.
    So as we talk about innovative solutions, we should not 
only expand on the existing funding streams, but we need to 
think more about other models that can be funded so that it is 
possible for developers on the ground to quickly act and create 
housing.
    Senator Tester. OK. Since you are from Minnesota, Cathy, 
maybe the Chairwoman would let you respond to that real 
quickly, because I am out of time.
    Chair Smith. I would be happy to let Cathy respond. Go 
ahead.
    Ms. ten Broeke. Thank you, Chairwoman Smith. I think it is 
an all-in strategy, Senator. I mean, there is frankly no wrong 
affordable housing investment. I think in Minnesota, as 
probably is true everywhere, our largest source of housing, 
resource to create housing is the Federal low-income tax 
credit, and I think increasing the opportunities to invest in 
that is hugely important. But many, many think the various ways 
that we create housing are all needed. And to your point, 
Senator, I could not agree more. We need housing supply at all 
price points. So that is not just low-income. And it is also 
true that we need to make sure that our tools in our toolbox 
will work to create lower-income housing as well. We are 
100,000 units short of housing that people at the very lowest 
incomes in Minnesota can afford, and that is more dramatic than 
the rest of the population. But I agree with you. We need it at 
all levels.
    Senator Tester. Thank you very much. I appreciate the 
hospitality, Madam Chairwoman. Thank you.
    Chair Smith. Thank you, Senator Tester.
    I believe that we have Senator Cortez Masto, who is ready 
from her office.
    Senator Cortez Masto. I am. Madam Chair, can you hear me 
OK?
    Chair Smith. Yes, we can.
    Senator Cortez Masto. Thank you. So thank you to all the 
panelists, because I am going to follow up on what my colleague 
from Montana got absolutely right, and you all know this, is to 
address the affordable housing needs in our communities to make 
sure that those that are homeless, those that are the 
workforce, we are providing a roof over their head, there is a 
role for Congress to play. And you guys have touched on it, and 
I have been talking to the housing coalitions in my State about 
this. At the end of the day, we have to pencil out for the 
builders; we have to cobble together financing to figure out 
how we build more of a supply so that we can make it affordable 
housing.
    One of the things--and for the panelists, if anybody 
disagrees with this, please let me know, but I think one of the 
things we can focus on to do that here in Congress is just to--
and this is, I believe, Senator Cantwell's bill, and I think 
there is bipartisan support for it--is expand the low-income 
housing tax credit. It is the number one thing I hear from my 
builders, from people in my community. There are some positive 
provisions in there that will enable us to pencil out for those 
builders the opportunity to add additional units.
    Does anybody disagree with that?
    Ms. Oliva. No, definitely not. But I would add the HOME 
Program and the National Housing Trust Fund to the list of 
programs that could be expanded to increase the affordable 
housing supply.
    Senator Cortez Masto. Absolutely, and that is on my list as 
well, and that actually is something that we could work through 
appropriations to get done, so thank you. If there is anything 
else on your list, please let me know, but I think it is 
important for us to hear that here in Washington, in Congress, 
that there are some very simple things for us to do that if we 
just focus on, we could address this issue. In my State, I will 
tell you, my concern and the number one calls I am getting 
about housing--and it is not just workforce housing. But I am 
hearing from veterans and seniors in my State who are facing 
sharp increases in their monthly rent and who are worried that 
they will be out on the streets because there is not enough 
affordable housing options.
    Let me ask Ms. Monet, with respect to veterans, can you 
talk a little bit about this? Is there a certain type of 
housing that is needed? What should we be looking at 
particularly when we are looking to address the homelessness of 
veterans? Which has increased in my State, unfortunately, and 
we have to be focused on it.
    Ms. Monet. So I think an all-in approach is what is needed. 
We hear so much from veterans that certain approaches like 
permanent supportive housing are great, and for other groups 
they are not, right? Some folks want to be in project-based 
sites; others do not. But I think when you are thinking about 
the at-risk population, so folks who are, you know, living 
somewhere and the rent is increasing dramatically, really what 
is going to help is not necessarily new housing, but direct 
cash transfers, right?
    So when you think about the VA's shallow subsidy program 
via the SSVF program, that is a really great approach to help 
folks who are kind of on the brink retain their housing and 
stay housed. So I think more of that, and potentially maybe 
even the ability for HUD to do something similar would be 
helpful.
    Senator Cortez Masto. Thank you. Now, let me touch on 
something else which is interesting. I am looking at the 
statistics from HUD. What is interesting to me is in the past 
few years, Nevada and some other States have seen a decrease in 
the percentage of youth experiencing homelessness. Federal 
continuum of care grants support critical services, including 
homelessness prevention and wrap-around services.
    Is there a lesson to be learned there? There is a decrease 
in youth homelessness, but now we are seeing it in other areas. 
And I guess my question for the panel, maybe I will start with 
Ms. Oliva, is: What are we learning from there? Have we done 
something that really opens the door for more services or 
opportunities to work with our youth? I am just kind of curious 
if you have any ideas about what is happen there?
    Ms. Oliva. Yes, that is a great question. The first thing I 
want to do is go back to make one point from your earlier 
question. There are three things that we need to do on 
affordable housing: we need to preserve the affordable housing 
that we have; we need to increase supply through the programs 
that we talked about; and we need to increase affordability to 
pencil those projects out, as you mentioned, by expanding the 
Housing Choice Voucher Program. Those three things together 
will make a huge difference.
    On the question about youth, yeah, you know, Congress 
appropriated funds for the Youth Homelessness Demonstration 
Program. That program has provided a lot of funding, pretty 
flexible funding and system-level funding to help communities 
build resources that really meet the needs of young people who 
are experiencing homelessness, especially young people of color 
and LGBTQ young people. The difference about that program--and 
it actually changed the way that I think about my work--is that 
young people are involved in every aspect of that program. They 
are involved in the design; they are involved locally with 
decisionmaking. They actually have helped score applications at 
the national level, and that really points to what we can do 
more broadly, which is make sure that we are partnering with 
people who have lived experience of homelessness and these 
systems that we are trying to change, so that we are leaning on 
their expertise and learning from them and partnering with 
them.
    So I think there are a number of things to learn from the 
Youth Homelessness Demonstration Program that can be applied 
across the board.
    Senator Cortez Masto. Thank you.
    Thank you, Madam Chair.
    Chair Smith. Thank you very much, Senator Cortez Masto.
    We are now joined by Senator Van Hollen from his office.
    Senator Van Hollen. Thank you, Madam Chair, and thank you 
for holding this hearing and for the focus you have had on 
these really important issues of affordable housing, which 
become more urgent and severe with every passing day. And I 
think we all
recognize there are two big pieces to this equation. One, of 
course, is supply, but the other is making sure that we 
continue to make available, as was just indicated in the 
testimony, housing choice vouchers. And thank you, Madam Chair, 
for also mentioning the legislation that Senator Young and I 
have proposed, bipartisan legislation that would allow more 
families to move to areas of opportunity with more flexible 
wrap-around services.
    I think we all saw that during the pandemic, the Congress 
together with President Biden provided important emergency 
services, and things in my view would have been a lot worse but 
for those important emergency supports. But now we, of course, 
have got the long-term challenges that we continue to face.
    Ms. Oliva, if you could talk about the challenge we are 
facing right now with respect to the purchasing power of the 
Housing Choice Voucher Program. As you see rising rental rates 
and you see, you know, a demand for rental housing that is 
increasing, more and more landlords want to lease to the person 
who can quickly make a security deposit or somebody who can 
defray other costs that are not currently covered by the 
housing choice voucher. So should we be asking HUD to use some 
of its existing authorities to make the use of those vouchers 
more flexible? Because in Maryland, for example, we are seeing 
about 80 percent of the vouchers for 2022 are not able to be 
used. People are not able to match those vouchers up with 
landlords because of the intense competition and the fact they 
cannot use the voucher purchasing power for some of those 
expenses. Could you speak briefly to that?
    Ms. Oliva. Sure. I think that there is actually quite a bit 
to learn from the Emergency Housing Voucher Program 
implementation. As I mentioned in my testimony, we are up to 
about 90 percent either leased up or issued to families and 
individuals who are experiencing homelessness. And in some 
communities, like King County in Washington State, the 
utilization rate is quite high even in really tight markets, 
and the reason that we are seeing that is because of the 
flexibilities that Congress provided to HUD for the 
implementation of that program, including alternative 
requirements and waivers that make it easier to get people into 
the program, but most importantly, providing funding to allow 
for landlord incentives, housing navigation, the kinds of 
things that programs can use, that PHAs can use to partner with 
landlords and create ways--be flexible and be creative in how 
they partner at the local level.
    So I think--and I think that Kathryn would agree--that we 
should implement those kinds of flexibilities and those kinds 
of flexible funding for programs like HUD-VASH and other parts 
of the Housing Choice Voucher Program generally so that other 
programs that are not the EHV Program can use them and 
hopefully bring up utilization.
    Senator Van Hollen. Ms. ten Broeke, would you agree with 
that assessment with respect to using the authorities to be 
flexible?
    Ms. ten Broeke. Yes, I do actually agree with what Ann just 
shared. Thank you.
    Senator Van Hollen. Thank you. So let me ask a question of 
Ms. Oliva about the Housing First approach, because I think 
there is sometimes confusion where some people suggest that 
Housing First excludes a number of the wrap-around services, 
when, in fact, at least to my understanding, that is an 
important part of the model, but we want to make sure that 
people do have a safe place to live and call home as they 
access those wrap-around services.
    Can you talk a little bit about the benefits of the Housing 
First approach?
    Ms. Oliva. Yes, of course, and thank you for that question. 
I agree with you that there is a lot of misinformation out 
there, and I am happy to try and dispel some of that 
misinformation as part of this hearing today.
    So Housing First is really an approach rather than a 
program. It is an approach that is grounded in treating people 
with dignity and providing choice to people who are in 
vulnerable situations and experiencing homelessness. It means 
that accessing permanent housing is prioritized, so that people 
who are experiencing homelessness have a safe and stable 
foundation to support achieving other goals.
    I recently heard somebody describe it something like this: 
You do not give a drowning person a swimming lesson. You bring 
them to safety on shore and then decide whether they actually 
need a swimming lesson or whether something else was happening.
    And let me be really clear on this point. Housing First is 
never housing only when it is implemented according to the 
model. Services are offered even before a person moves into 
their permanent housing, and they are tailored to the needs of 
the person or family. The evidence base is incredibly strong. 
We have high retention rates.
    And then the last thing I will also say is the data also 
shows cost savings for the Housing First approach in a lot of 
cases, because as people have more consistent support and they 
do not have to access emergency services, the cost to the 
community goes down.
    So there is a lot of evidence behind Housing First. It is 
really rooted in dignity and choice, and it is not housing 
only.
    Senator Van Hollen. Well, thank you, and thank you for 
dispelling some of the myths that I think we have heard. I have 
a lot more questions, but I see that my time is up. So, Madam 
Chair, thank you very much for bringing us together around this 
important subject.
    Chair Smith. Thank you very much, Senator Van Hollen.
    I am going to ask a few more questions while I have the 
opportunity with all of you, and I want to actually go back 
to--I would like to go to Ms. Kirsch, who is with us remotely. 
I really appreciated very much the comments that you made 
around the unique challenges in Native communities and on 
Tribal land. So, Ms. Kirsch, this question is for you. Can you 
describe for us what you have seen in your work around good 
approaches to addressing the challenges and overcrowding in 
Native and Tribal communities? And how can we best be sensitive 
to this issue from a policymaking perspective as we look at the 
programs and policies that we want to advance?
    Ms. Kirsch. Sure. Thank you so much for that question, 
Senator. So I guess I would say first and foremost what we see 
here in Rapid City is--what is having the greatest impact is 
doing the outreach, putting culture first, and allowing folks 
to access resources and individuals who are Native American and 
who can provide Native American resources to them. Helping them 
access support from there that is either housing or addiction 
recovery or mental health support or medical services, being 
able to connect folks to those spaces that are offering, you 
know, sage burning or smudging, offering folks connection to 
Inipis, these can all be healing factors and make a person far 
more successful in their housing search and their securing of 
services throughout the spectrum.
    It is challenge, right, because in Rapid City we are 
flanked by some of the most impoverished counties in our 
Nation, and there is a vast issue, I think, with 
underdevelopment, underinvestment in our Tribal areas. In a lot 
of cases, it is hard to do affordable housing development 
because there is no infrastructure, there is no water 
infrastructure, electrical infrastructure. And so there is a 
lot more costs associated and affiliated with trying to do 
affordable housing development in those areas.
    In Rapid City, because we are such an urban center and 
because folks come from hundreds of miles to seek support here 
in Rapid City, I think the key is really creating models 
through which folks can get supported in the way they want to 
be supported and feel comfortable in those spaces, whether it 
is--you know, I totally support the Housing First model, but 
because we have absolutely no permanent housing available or 
affordable housing available for individuals, folks are feeling 
most comfortable in congregate shelters that put culture first, 
and they are more successful with their goals once they are 
able to access that culture and that community.
    So I hope I answered your question, and I----
    Chair Smith. No, that is very helpful. That is very 
helpful. And as I listened to your response, I am struck by 
what we know, which is that one of--the connection, the 
challenge that people feel around just deep isolation as they 
are experiencing housing insecurity or houselessness, and to me 
that makes it particularly clear that taking kind of a culture 
first approach or housing first/culture first approach, putting 
culture at the center of the work makes the most difference 
because that is a way of overcoming that sense of isolation 
that people feel. Would you agree with that?
    Ms. Kirsch. Oh, 100 percent I would agree with that, yes.
    Chair Smith. I want to touch also on the question of the 
connection between housing and health, and, Ms. Oliva, I think 
I will direct this question to you. Can you just discuss this 
connection between housing and health and specifically how 
permanent supportive housing or what we can do to sort of 
understand that we cannot really address people's health issues 
if we are not finding--if they do not have a safe place to 
live?
    Ms. Oliva. Well, I think you actually just summarized it 
perfectly, and it is the biggest lesson or one of the biggest 
lessons we have learned during the pandemic, is that you cannot 
shelter in place if you do not have a home, and housing is 
absolutely core to being able to be healthy from a behavioral 
health standpoint and from a physical health standpoint.
    So I think the biggest lesson, as I mentioned, from the 
pandemic is really about this connection between the ability to 
be healthy and having a safe and stable place to live. Safe and 
stable places to live also sort of help advance the positive 
impacts of other types of investments that the Government is 
making in health care, in education, in employment. All of 
those things are better when somebody--as we have seen from the 
Housing First model and permanent supportive housing, really 
housing provides the foundation by which all of those other 
aspects of life can be improved and people can thrive in their 
communities.
    So it is not just about health care. It is actually about 
all of those other pieces and what housing brings to the table 
to improve them.
    Chair Smith. I really appreciate that. I am proud that 
Minnesota has been an innovator in this area, really 
understanding the social determinants of health. The Minnesota 
Medicaid program covers housing supportive services to help 
Minnesotans find and maintain affordable housing and making 
that connection directly. This is honestly a weakness of lots 
of Federal strategies, right? Because we are very siloed and we 
do not connect the dots as best we could, and then that means 
that providers like, you know, people that are out there trying 
to make things work are struggling all the time because those 
dots do not connect a well as they should. And I think that 
that is--it is one example of what we are doing in Minnesota 
with the Medicaid program that I think helps with that.
    Would anybody else like to comment on that connection? Yes, 
please, Ms. McDevitt.
    Ms. McDevitt. Yes, thank you so much, and I would just 
build upon what Ann was saying as far as, you know, access to 
employment and income is another metric around stability and 
health. And I think one thing that gets sort of lost in some of 
these conversations is there is a group of people, using the 
metaphor of drowning, that do not even have access to a life 
ring. And so we need to create more life rings, whatever 
metaphor you want to use. And I think that this is about 
expanding our ability to use a Housing First approach beyond 
just the tools that we have to promote health, stability, and 
access to economic opportunity I would argue is part of the 
social determinants of health, especially for those people who 
not only need the income because they are not going to qualify 
for other benefits, but also our parents and taking care of 
their families and returning from incarceration and need access 
to jobs that, while they might be available, they are not 
prepared for or stable enough for.
    So when we talk about Housing First, I would argue that we 
should also look at it, as Ann said, as a category, a 
philosophy, but we need to look at it beyond just, you know, 
units themselves and really start talking about how do we help 
people stabilize, off the streets, out of institutions, with 
the support services they need to live the best lives that they 
can. And there is a group of people, as I mentioned, that is 
about 40 percent of folks that are coming into our shelters 
every day that are not self-resolving and need--you know, do 
not have those access--even if we had enough units, even if we 
had enough vouchers, they are not qualifying. And so that is 
why I think when we talk about models that can bring in the 
public and have also other benefits to the community. The 
reason that something like Work Works can really add value to a 
community is it brings in the business community; it creates 
better conditions for quality of life for the whole community, 
which gets more people involved in wanting to solve this issue. 
And I think that that is an important point that we have to 
remember as we need a community-wide approach, not just, you 
know, one that is focused just on government or service 
providers.
    Chair Smith. Thank you. I am going to wrap up in just a 
moment, but I want to see if Ms. Monet or Ms. ten Broeke would 
like to add anything more to this question about the connection 
between housing and health and what we need to do to break down 
the barriers around those two issues. Ms. Monet?
    Ms. Monet. Yes, I think I am happy to add on, because, you 
know, VA is the largest healthcare system. It is also providing 
a really great deal of housing resources to veterans. And I 
think what we see is that access to housing helps people manage 
chronic conditions when you think about the fact that certain 
medications need to be refrigerated, and you cannot really do 
that when you are unsheltered, when you think about the fact 
that you are able to access healthier food and store healthier 
food in a home to help you manage your chronic conditions 
through diet and other things.
    But I do think that there are also, you know, psychological 
benefits to being housed and not being subject to, you know, 
all of the violence that we see unsheltered people face on the 
streets on a daily basis. And, you know, the fact that you have 
somewhere that you can call your own is a really big deal, I 
think, especially as we look to the ways that many cities and 
communities across the country are starting to criminalize 
homelessness and, you know, rely on encampment sweeps, that is 
really traumatic when you think about the fact that everything 
you own, what little you have been able to retain, could be 
gone in an instant--and, repeatedly, right? I mean, that is the 
really hard thing for people to deal with, I think.
    So, you know, housing is a really critical resource, and I 
think that is why we all have tended to look at the fact that 
we need to put people in housing and then wrap them with the 
services that, you know, they want and need.
    Chair Smith. Thank you very much.
    Ms. ten Broeke, Ms. Kirsch, would you have anything final 
to add before we wrap up?
    Ms. ten Broeke. Thank you, Chair Smith. I think you have 
summed this up so well, and I think the experience during COVID 
puts such a spotlight on your question and the importance of 
the question. One thing we knew is that when the pandemic hit, 
people who were experiencing homelessness were at greatest risk 
of really devastating results because of the pandemic, not only 
because of the settings where people were living, where they 
could not be distanced, but obviously many people also have co-
occurring, very serious health conditions. And I think the data 
that we have from the pandemic, for example, if people were 
sleeping outside and they contracted COVID, they were 11 times 
more likely to end up in the hospital than other Minnesotans 
that had COVID and 8 times more likely to end up in the ICU. So 
both the conditions and the settings are so important, and we 
need to start to connect the dots between our housing systems, 
our social service systems, and our health systems to be 
successful in serving people better.
    Chair Smith. Thank you very much.
    Ms. Kirsch. And I will just offer quickly that, in terms of 
public health, I think trauma and the impact of traumatic 
experience of houselessness, especially in our youth, can have 
a lifelong effect on our young people. And we see it time and 
time again here in Rapid City, where we see youth who are 
affected by houselessness or coming in contact with law 
enforcement, and really coming up with creative ways to respond 
to our houseless community members to minimize that trauma and 
to truly support innovative practices and sustainable 
solutions, creating opportunities with individuals to identify 
the resources they truly need to become housing successful, and 
that includes everything from culture, which I have talked a 
lot about, but all the way through to helping folks stay housed 
once they are housed. Housing prevention--or preventing 
houselessness is incredibly important, and I would say as 
important as addressing the actual houselessness occurring on 
our streets. If we can help minimize the amount of trauma youth 
are experiencing as a result of evictions and instead coming up 
with innovative ways to help families stay in homes, I think we 
are far more successful in the end with our efforts than we are 
just responding at the crisis.
    Thanks again for allowing me to be here today to testify.
    Chair Smith. Thank you so much. Thank you to all of our 
witnesses for being here today and providing such great 
testimony. I am struck, as I listened to the questions and also 
your answers and testimony, that there is broad agreement about 
what needs to be done. As I said at the outset, I think we know 
what to do. We understand the centrality of housing to work, to 
health, to physical and emotional health, and we have also been 
able to see the innovation and the success that we have seen 
because of the resources that we put into the deep COVID 
challenge. Those challenges are still there, and, in fact, I 
think we are seeing the great impact of some of those resources 
going away right now.
    So I think this hearing has given, I think all of us, lots 
of good thoughts for where we can go from here and the work 
that we have to do together.
    Before we adjourn, I would like to enter into the record a 
letter from Catholic Charities of St. Paul and Minneapolis. 
Without objection, and I see none.
    For Senators who wish to submit questions for the record, 
those questions will be due 1 week from today, which will be 
Tuesday, July 26th. For our witnesses, you will have 45 days to 
respond to any questions for the record.
    Thank you again so much, and this hearing is adjourned.
    [Whereupon, at 4 p.m., the hearing was adjourned.]
    [Prepared statements and responses to written questions 
supplied for the record follow:]

                    PREPARED STATEMENT OF ANN OLIVA
     Chief Executive Officer, National Alliance To End Homelessness
                             July 19, 2022
Introduction
    Chairwoman Smith, Ranking Member Rounds, and Members of the 
Subcommittee, I am Ann Oliva, Chief Executive Officer of the National 
Alliance to End Homelessness and a Board Member of True Colors United. 
Thank you for inviting me to testify before you at today's hearing 
entitled ``Opportunities and Challenges in Addressing Homelessness.''
    The National Alliance to End Homelessness (the Alliance) is a 
nonpartisan, nonprofit, mission-driven organization committed to 
preventing and ending homelessness in the United States. It was founded 
in 1983 by a group of national leaders from both parties, deeply 
disturbed by the appearance of thousands of Americans living on the 
streets of our Nation. In its early years it focused primarily on 
meeting the emergency and service needs of this emerging population. 
However, as it became apparent that emergency measures alone would not 
solve the problem, we turned our attention to pursuing permanent, 
evidence-based and structural policy and program solutions. Today, the 
Alliance and our thousands of nonprofit, faith-based, private and 
public sector partners across the country work to end homelessness 
through funding and implementation of interventions that meet the needs 
of people experiencing homelessness--primarily affordable housing and 
services--supporting livable incomes, partnering with people who have 
lived experience of homelessness and housing instability, and 
addressing inequities that lead to homelessness.
    Our years of collective experience make it clear that we know how 
to end homelessness in our Nation--and when local leaders have the 
resources they need alongside smart, effective policy, we can make 
substantial progress. But it is also clear that the homelessness 
assistance system cannot do this work alone. We need affordable 
housing, health and behavioral health services, employment 
opportunities, homelessness prevention resources, and the political 
will to work together to address the challenges we face.
Overview
    The Nation is experiencing a homelessness crisis that both predates 
and has been deeply affected by the COVID-19 pandemic. The last 
complete Point-in-Time Count released by the U.S. Department of Housing 
and Urban Development (HUD) was for the count conducted in 2020. \1\ 
HUD reported that more than 580,000 people were experiencing 
homelessness on a single night in January 2020. Sixty-one percent were 
in sheltered locations, while 39 percent were unsheltered. The total 
number of people experiencing homelessness included nearly 172,000 
people in families (60 percent of them children), more than 110,500 
people experiencing chronic homelessness, \2\ and more than 37,000 
veterans.
---------------------------------------------------------------------------
     \1\ Henry, M., de Sousa, T., Roddey, C., Gayen, S., and Bednar, 
T.J. (January 2021). ``The 2020 Annual Homeless Assessment Report 
(AHAR) to Congress, Part 1''. Department of Housing and Urban 
Development. https://www.huduser.gov/portal/sites/default/files/pdf/
2020-AHAR-Part-1.pdf.
     \2\ People who are chronically homeless have experienced 
homelessness for at least a year, or repeatedly over several years, 
while struggling with a disabling condition such as a serious mental 
illness, substance use disorder, or physical disability. See National 
Alliance to End Homelessness, ``Chronically Homeless'', https://
endhomelessness.org/homelessness-in-america/who-experiences-
homelessness/chronically-homeless/.
---------------------------------------------------------------------------
    While overall homelessness at a point in time decreased between 
2007 and 2016, it increased slightly every year between 2016 and 2020. 
In 2020, HUD reported that 30 States across America saw a rise in 
homelessness from one year earlier, and, for the first time since HUD 
began tracking this data, more single individuals \3\ experiencing 
homelessness were unsheltered than sheltered, and there were more 
people in families living unsheltered than the year prior. \4\ 
Unsheltered homelessness has increased every year since 2015.
---------------------------------------------------------------------------
     \3\ HUD's definition of ``individual'' refers to a person who is 
not part of a family with children during an episode of homelessness. 
Individuals may be homeless as single adults, unaccompanied youth, or 
in multiple-adult or multiple-child households.
     \4\ Henry, M., de Sousa, T., Roddey, C., Gayen, S., and Bednar, 
T.J. (January 2021). ``The 2020 Annual Homeless Assessment Report 
(AHAR) to Congress, Part 1''. Department of Housing and Urban 
Development. https://www.huduser.gov/portal/sites/default/files/pdf/
2020-AHAR-Part-1.pdf
---------------------------------------------------------------------------
    The Point-in-Time Count that typically takes place in January (and 
is the only enumeration that includes people who are unsheltered) was 
not fully conducted in 2021 due to the pandemic. As a result, the 
number of people currently experiencing homelessness is not clear. 
However, the Alliance conducted several surveys of the Nation's 
Continuums of Care (CoCs) during the pandemic, and respondents reported 
the following:

    the number of shelter beds significantly decreased as 
        shelters followed Centers for Disease Control and Prevention 
        (CDC) guidance to ``decompress;''

    most CoCs believed that unsheltered homelessness had 
        increased; and

    though many people from shelters and unsheltered locations 
        were placed in motel/hotel rooms for quarantine and isolation, 
        those incremental beds did not make up for those lost through 
        decompression.

    It should be noted that since many jurisdictions have closed their 
hotel/motel beds, but are likely maintaining COVID protocols, the 
number of available beds may continue to be low.
    Continuums of Care were required by HUD to conduct a full count 
this past January. Although that data has not been publicly released by 
HUD, the Alliance tracks information released from local Continuums of 
Care through media releases. Based on this information, the Alliance 
expects that unsheltered and chronic homelessness has likely increased 
nationally, and it is possible (although not certain) that overall 
homelessness has increased.
    While overall and unsheltered homelessness appear to be up, the 
numbers are down for certain subpopulations. The 2020 data from just 
before the pandemic showed a slight decrease in homeless family 
households, veterans, and youth. Both the Alliance's CoC surveys and 
anecdotal evidence from the field seem to indicate that the number of 
families experiencing homelessness decreased during the pandemic. This 
is likely the result of Child Tax Credits and other tax credits, 
unemployment insurance supplements, Emergency Rental Assistance, the 
eviction moratorium, and other steps that Congress took to protect 
vulnerable households from the health and economic impacts of the 
pandemic. It is also possible that some families chose to double or 
triple up with relatives or friends rather than enter congregate 
shelter facilities during the pandemic.
    In addition to the snapshot of homelessness that the Point-in-Time 
Count provides, it is important to understand how many people use 
homelessness assistance programs over the course of the year. Capturing 
and reporting longitudinal data, which HUD does through the Annual 
Homeless Assessment Report, Part 2, helps us understand flow through 
the system and the characteristics of people experiencing sheltered 
homelessness. Over the course of a year, nearly 1.45 million people 
experience sheltered homelessness at some time. \5\ Important 
information from HUD's longitudinal data include:
---------------------------------------------------------------------------
     \5\ Henry, M., Mahathey, A., and Takashima, M. (September 2020). 
``The 2018 Annual Homeless Assessment Report (AHAR) to Congress, Part 
2''. Department of Housing and Urban Development. https://
www.huduser.gov/portal/sites/default/files/pdf/2018-AHAR-Part-2.pdf.

    Families experiencing homelessness are typically headed by 
        women and include young children. \6\ About 501,100 people in 
        156,000 households with children used an emergency shelter or 
        transitional housing in fiscal year 2018 (the most recent 
        longitudinal data released by HUD). Of those persons, 62 
        percent were children and nearly 30 percent were children under 
        age 5. Nearly 90 percent of sheltered family households were 
        headed by women. \7\
---------------------------------------------------------------------------
     \6\ Henry, Mahathey, and Takashima, op. cit.
     \7\ HUD defines ``head of household'' as the member of the family 
or household with whom all other members of the household are 
associated in homeless management information systems. For families and 
adult-only households, the head of household must be an adult. In a 
child-only household, the parent of another child is designated as the 
head of household; otherwise, each child in a household without adults 
is designated as a head of household.

    113,330 unaccompanied youth experienced sheltered 
        homelessness during 2018. Unaccompanied youth experiencing 
        sheltered homelessness were more likely to be people of color 
        (Hispanic or Latino, Black or African American, multiracial, or 
        another race other than White) than youth in the general 
        population. LGBTQ youth are at more than double the risk of 
        homelessness compared to non-LGBTQ peers; among youth 
        experiencing homelessness, LGBTQ young people reported higher 
        rates of trauma and adversity, including twice the rate of 
        early death. \8\
---------------------------------------------------------------------------
     \8\ Morton, M., Dworsky, A., and Patel, S. (2018). ``LGBTQ Young 
Adults Experience Homelessness at More Than Twice the Rate of Peers''. 
Chapin Hall at the University of Chicago. https://www.chapinhall.org/
research/lgbtq-young-adults-experience-homelessness-at-more-than-twice-
the-rate-of-peers/.

    Youth and young adults experience homelessness both as 
        family heads of household and as individuals. \9\ In 2018, 
        families with children headed by a parenting young adult aged 
        18 to 24 accounted for 17 percent of all family households 
        experiencing sheltered homelessness.
---------------------------------------------------------------------------
     \9\ Henry, Mahathey, and Takashima, op. cit.

    As evidenced by the description above, current data on the number 
of people experiencing homelessness is not firm. We will have a more 
comprehensive grasp on the impacts of the pandemic and economy once the 
results of the 2022 Point-in-Time Count and the 2019 and 2020 
longitudinal studies are released by HUD.
    Finally, it is important to note that people experiencing 
homelessness often work but still cannot afford housing. In the report, 
Learning about Homelessness Using Linked Survey and Administrative 
Data, \10\ the authors found that 53 percent of adults experiencing 
sheltered homelessness had formal labor market earnings in the year 
they were observed as homeless, and an estimated 40.4 percent of 
unsheltered persons had at least some formal employment in the year 
they were observed as homeless.
---------------------------------------------------------------------------
     \10\ Meyer, B.D., Wyse, A., Grunwaldt, A., Medalia, C., and Wu, D. 
(May 2021). ``Learning About Homelessness Using Linked Survey and 
Administrative Data''. National Bureau of Economic Research Working 
Paper No. 28861. https://www.nber.org/papers/w28861.
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Pandemic Response
    The pandemic brought into sharper focus the importance of housing. 
Simply put, a person cannot quarantine if they do not have a home. It 
is clearer than ever that housing is, indeed, a social determinant of 
health. Further, millions of Americans who have a home are severely 
rent burdened and a crisis could cause them to lose that home without 
proper protections in place.
    Four major funding streams designed to assist people experiencing 
homelessness and housing instability were included as part of pandemic-
related relief packages passed by Congress. Each one plays a distinct 
but interrelated role in the Nation's response to the health and 
economic crisis.
    Emergency Rental Assistance (ERA). The $46.6 billion program 
operated by the Department of the Treasury was designed to prevent an 
eviction crisis and has assisted more than 3.8 million households to 
remain in their housing. \11\ Although it was slower to start than 
anticipated, many State and local funding recipients now report that 
they have exhausted their funding and are no longer taking new 
applicants--as evidenced by the decreasing number of unique households 
served nationally since the program's height in September 2021, as 
reported by the Treasury. Two major lessons can be learned from the 
implementation of ERA: first, the Nation needs a permanent program that 
can be scaled up in times of crisis rather than creating a new program 
each time a crisis emerges; second, that flexibility can be 
successfully balanced with accountability to get critical funding into 
the hands of households in need quickly.
---------------------------------------------------------------------------
     \11\ U.S. Department of the Treasury Emergency Rental Assistance 
Program: https://home.treasury.gov/policy-issues/coronavirus/
assistance-for-state-local-and-tribal-governments/emergency-rental-
assistance-program.
---------------------------------------------------------------------------
    Emergency Housing Vouchers (EHVs). This $5 billion program operated 
by HUD allocated 70,000 Housing Choice Vouchers to provide permanent 
housing to people experiencing and at-risk of homelessness. As of July 
17, 2022, HUD reports that nearly 40 percent of these vouchers are 
leased up, with another 50 percent issued. \12\ The EHV program is 
pushing communities to create new or stronger partnerships between 
homeless services providers and Public Housing Authorities (PHAs) so 
that people experiencing or at risk of homelessness can more easily 
access safe and affordable housing. Although the housing market is 
extremely tight in many areas and increasing rents pose a challenge to 
using vouchers, some communities are not only successfully using the 
EHVs they have, but are requesting more. The alternative requirements 
and waivers that allow for more flexible implementation as compared to 
regular Housing Choice Vouchers have made a positive difference for the 
communities using them. Flexible funding provided to Public Housing 
Authorities for landlord incentives, security deposits and housing 
navigation are helping with lease-up. However, because EHVs were not 
appropriated as a permanent program, these vouchers can currently only 
be issued until September 2023. Congress should consider making EHVs 
permanently available to individuals and families experiencing 
homelessness and housing instability.
---------------------------------------------------------------------------
     \12\ U.S. Department of Housing and Urban Development Emergency 
Housing Voucher Program: https://www.hud.gov/ehv.
---------------------------------------------------------------------------
    HOME Investment Partnerships (HOME-ARP). The $5 billion allocation 
of HOME program funding is providing rental assistance, support for 
noncongregate shelter, acquisition and development, and supportive 
services for homeless and at-risk people. Uniquely, it is helping 
communities build affordable and supportive housing, a longer-term 
investment that will improve housing capacity. The HOME-ARP funding 
provides an opportunity to address the shortage of deeply affordable 
housing by implementing promising practices adopted during the 
pandemic. For example, some States and localities--most notably 
California--acquired hotel and motel properties to use as both 
temporary and permanent housing at a cost far lower than new 
construction or conventional rehabilitation. While the supply of hotel 
and motel stock has been shrinking, there is still some available. In 
some jurisdictions, office and retail space could potentially be 
developed for affordable housing at lower cost than new construction or 
rehabilitation. HOME-ARP can help creative jurisdictions take advantage 
of opportunities like these to increase the stock of affordable 
housing. According to HUD, 36 allocation plans have been reviewed and 
accepted by HUD to date. \13\
---------------------------------------------------------------------------
     \13\ U.S. Department of Housing and Urban Development HOME-ARP 
Program: https://www.hud.gov/program_offices/comm_planning/home-arp/
allocation-plans.
---------------------------------------------------------------------------
    Emergency Solutions Grants (ESG-CV). The $4 billion ESG-CV program 
has helped communities respond to the needs of people living 
unsheltered and provides support to emergency shelters that must 
respond to shifting environments and health guidance as the pandemic 
progresses.
    The Federal Government took two additional unprecedented steps 
related to housing and homelessness during the pandemic: the Centers 
for Disease Control and Prevention issued a national eviction 
moratorium and the Federal Emergency Management Agency (FEMA) allowed 
communities to be reimbursed for eligible emergency protective measures 
in response to the COVID-19 emergency through its Category B Public 
Assistance program. Specifically, this provided communities with the 
opportunity to open noncongregate shelter programs to protect 
vulnerable people from the spread of COVID-19.
    These investments represent a combination of short-, medium-, and 
long-term resources that communities are using to address the 
homelessness crisis, which (as noted previously) was already growing 
worse before the pandemic and has been exacerbated by the health and 
economic crisis of the last 2 years.
    It is clear that pandemic-related affordable housing, homelessness 
policy, and funding is having a positive impact and is deeply 
appreciated by communities that have received it. However, the evolving 
economic environment and rapidly increasing rents indicate that there 
is still much work to do toward ending homelessness.
Challenges Facing the Field
    Even with new pandemic resources, homelessness assistance systems 
are facing significant challenges. Some are long-standing, like the 
lack of available supportive and affordable housing units dedicated to 
people experiencing homelessness. This shortage makes exiting the 
homeless system difficult and results in people waiting for long 
periods of time in shelter or on the street. New challenges have also 
emerged as a result of the pandemic.
    First and foremost are the challenges faced every day by people 
experiencing homelessness and housing instability, and by the frontline 
staff who serve them. For example:

    We are seeing an increase in criminalization. According to 
        the National Homelessness Law Center, 48 States have at least 
        one law that criminalizes people experiencing homelessness. 
        \14\ Sweeps--along with anti-camping, pro-criminalization laws 
        and ordinances--are increasingly being pursued by local 
        officials as a path to addressing community concerns, even 
        though they do not solve homelessness and make life more 
        difficult for homeless people and frontline staff. In fact, two 
        States (Missouri and Tennessee) have recently enacted 
        legislation making it a crime to sleep on State property. The 
        Missouri law also requires cities to use State funding for 
        temporary camps/shelter rather than long-term housing.
---------------------------------------------------------------------------
     \14\ National Homelessness Law Center. (November 2021). ``Housing 
Not Handcuffs State Law Supplement''. https://homelesslaw.org/wp-
content/uploads/2021/11/2021-HNH-State-Crim-Supplement.pdf.

    Many homeless systems and providers are reporting staff 
        shortages. Homeless systems--which rely heavily on front-line 
        workers to provide essential services to people experiencing 
        homelessness--report staffing challenges due to the pandemic. 
        However, these staff shortages are also attributed to long-
        standing and systemic issues, like low pay, that create 
        environments with high staff turnover and burnout for the 
---------------------------------------------------------------------------
        people who work in them.

    The inability of people to afford housing is the major driver of 
homelessness--a factor outside the control of homelessness assistance 
systems. A substantial increase in the cost of rent and utilities over 
the past year \15\ has the potential to negatively impact both inflow 
into the homelessness assistance system and the ability of households 
experiencing homelessness to exit homelessness. A recent Washington 
Post article reported on this emerging challenge, stating that ``Every 
$100 increase in median rent is associated with a 9 percent increase in 
the estimated homelessness rate, according to a 2020 report by the U.S. 
Government Accountability Office. Economists say that figure is 
particularly troubling as rents continue to soar to unprecedented 
highs. The national median asking rent jumped to a record $2,002 in 
May, up 15 percent from $1,738 a year ago, according to Redfin.'' These 
increases make it harder for people experiencing housing instability to 
remain in their units and create housing challenges for people exiting 
incarceration or institutions like child welfare or hospitals. Higher 
costs of living also make it more difficult for homeless assistance 
systems to place people into safe, stable, and affordable housing.
---------------------------------------------------------------------------
     \15\ Bhattarai, A., and Siegel, R. (July 2022). ``Inflation Is 
Making Homelessness Worse''. Washington Post. https://
www.washingtonpost.com/business/2022/07/03/inflation-homeless-rent-
housing/
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Historically Marginalized People and Racial Inequities
    People of color and other historically marginalized people are 
disproportionally affected by homelessness and housing instability.

    Nearly 40 percent of those experiencing homelessness in 
        2020 were Black and 23 percent were Latino, although these 
        groups make up 13 and 18 percent of the U.S. population, 
        respectively. Similarly, Native Americans represent 1 percent 
        of the population but 3 percent of people experiencing 
        homelessness, and Pacific Islanders represent .2 percent of the 
        population but 1.5 percent of people experiencing homelessness.

    24 million people in low-income renter households pay more 
        than half of their income for rent and utilities. \16\ Most of 
        the renters in these households (62 percent) are people of 
        color: 6.8 million are Latino, 5.8 million are Black, 1.4 
        million are Asian or Pacific Islander, 725,000 are multiracial, 
        and 242,000 are American Indian or Alaska Native.
---------------------------------------------------------------------------
     \16\ Mazzara, A. (May 2021). ``Expanding Housing Vouchers Would 
Cut Poverty and Reduce Racial Disparities''. Center on Budget and 
Policy Priorities. https://www.cbpp.org/blog/expanding-housing-
vouchers-would-cut-poverty-and-reduce-racial-disparities

    Not only are people of color overrepresented in the 
        population of people experiencing homelessness, but there are 
        also racial disparities in the outcomes of homelessness 
---------------------------------------------------------------------------
        interventions.

    Data also shows that LGBTQ people \17\ and people with 
        disabilities \18\ are more likely to experience housing 
        instability and homelessness.
---------------------------------------------------------------------------
     \17\ Wilson, B.D.M., Choi, S.K., Harper, G.W., Lightfoot, M., 
Russell, S., and Meyer, I.H. (2020). ``Homelessness Among LGBT Adults 
in the U.S. Los Angeles, CA''. Williams Institute. https://
williamsinstitute.law.ucla.edu/publications/lgbt-homelessness-us/
     \18\ Bailey, A., de la Huerga, R., and Gartland, E. (July 2021). 
``More Housing Vouchers Needed To Help People With Disabilites Afford 
Stable Homes in the Community''. Center on Budget and Policy 
Priorities. https://www.cbpp.org/research/housing/more-housing-
vouchers-needed-to-help-people-with-disabilities-afford-stable-homes

    We must develop and examine all homelessness strategies and 
activities through the lens of racial justice and equity. Historical 
and systemic racism in the key areas of housing, health care, and 
employment have a major impact on homelessness, resulting in the 
disproportionality identified above. Once homeless, people of color and 
other marginalized groups experience disparities in the effectiveness 
and nature of the assistance they receive. While the homelessness 
system alone has little ability to prevent marginalized groups from 
becoming homeless, it must be diligent in assessing the impact of its 
assistance on all of the people it serves. To remedy these disparities, 
homelessness systems must develop models, practices, and interventions 
that are culturally competent and trauma informed, so as to 
deliberately address inequities and discrimination faced by people in 
the homelessness assistance system.
Unsheltered Homelessness
    A critical challenge is the need to address growing unsheltered 
homelessness. As noted above, the Nation has seen a rise in unsheltered 
homelessness every year since 2015.
    It should not be acceptable that 230,000 people sleep on the 
streets every night. And it should also be unacceptable that people 
living unsheltered are criminalized for simply trying to survive and 
live in public places that are not meant for human habitation. The 
unsheltered population includes people with behavioral health 
conditions; youth and young adults; pregnant women and families living 
in cars or tents; older adults whose needs can no longer be met in 
shelter and end up on the street, and many others.
    Data indicates that people who are unsheltered have much more 
serious health problems than people living in shelter. For example, 
data indicates that 50 percent of unsheltered people are tri-morbid, 
with co-occurring physical, mental and/or substance use conditions, 
while only 2 percent of sheltered adults are tri-morbid. And it is 
important to point out that many unsheltered people did not become 
homeless as a result of tri-morbidity, but became ill as a result of 
being unsheltered.
    While it can be a challenge to permanently house higher need or 
unsheltered people for a variety of reasons, some communities are using 
resources like EHVs in efforts to resolve encampments or otherwise 
serve unsheltered people. This requires strong partnerships with 
outreach providers, landlords, and service providers. For example, the 
King County Regional Homelessness Authority recently reported \19\ the 
successful closing of an encampment through a person-centered approach 
that included shelter and housing for encampment residents.
---------------------------------------------------------------------------
     \19\ Taylor, S.G. (May 2022). ``Officials Tout Outreach Success at 
Seattle's Woodland Park''. Seattle Times. https://www.seattletimes.com/
seattle-news/homeless/officials-tout-outreach-success-at-seattles-
woodland-park-mayor-bruce-harrell-promises-homelessness-plan-in-may/
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Older Adult Homelessness
    Focused data collection and interventions have rarely been pursued 
for older adults experiencing homelessness; as a result, there is 
little data on this population, how and why they become homeless, the 
trajectory of their homelessness, or tailored solutions. This is likely 
because of the small number of older people who have historically 
experienced homelessness.
    However, the situation is changing: as the percentage of the 
general population that are older adults increases, so does the 
percentage of older adults experiencing homelessness. This is only 
exacerbated by the fact that their age cohort is one that 
disproportionately became homeless as a result of recessions in the 
late 1970s and early 1980s. This cohort was the largest group of people 
experiencing homelessness then, and it remains so today--except now the 
group is in its 50s and 60s. Over the next decade or so, these 
demographic shifts will result in the older adult homeless population 
increasing significantly: nearly tripling by 2030. \20\ People of color 
are and will continue to be over-represented in this population.
---------------------------------------------------------------------------
     \20\ Culhane, D., Treglia, D., Byrne, T., Metraux, S., Kuhn, R., 
Doran, K., Johns, E., and Schretzman, M. (2019). ``The Emerging Crisis 
of Aged Homelessness''. Actionable Intelligence for Social Policy. 
https://aisp.upenn.edu/wp-content/uploads/2019/01/Emerging-Crisis-of-
Aged-Homelessness-1.pdf
---------------------------------------------------------------------------
    One implication of the increase in older adults experiencing 
homelessness is the increase in healthcare costs associated with this 
population. Culhane, et al., estimate that this will be in the range of 
$5 billion annually within the next decade. But because homelessness, 
and especially prolonged homelessness, is so detrimental to the health 
of older adults, this spending is unlikely to achieve positive 
outcomes. Older people experiencing homelessness have significantly 
higher medical utilization costs and shortened life expectancies.
    A much better investment would be to use, or to view, these 
healthcare costs as an offset to housing subsidies. Funding housing 
would not only end people's homelessness; it would improve their health 
and prolong their lives, and at a comparable cost.
Workforce Concerns
    Jurisdictions are beleaguered after 2 solid years of the pandemic, 
and the recession and its aftermath. The Alliance's surveys of CoCs 
show consistent reports of employee shortages in homeless service and 
housing organizations. In a May 2021 survey, 72 percent of CoCs 
reported shortages in frontline shelter staff; 69 percent had a 
shortage of case managers; and 62 percent had shortages in street 
outreach workers. The organizations reported the cause of the 
challenges as stress, exhaustion, and low morale; illness; family 
responsibilities; and fear of COVID. It should also be noted that 
homeless services staff typically receive relatively low salaries for 
very difficult and challenging work. A recent study found that the 
average shelter staff member earned $24,000 per year, and the average 
permanent supportive housing staff member earned $36,000 per year. Low 
pay may be another reason that it is difficult to keep staff.
    Staff shortages are not the only capacity issues for CoCs and the 
organizations that they fund. With the challenges of working through a 
period of constant change as COVID numbers rise and fall, guidance 
changes, multiple new initiatives are introduced, immediate results are 
expected, and new partnerships must be formed--years of these 
compounded hurdles have worn down many program staff. Although they 
appreciate and welcome the resources and share the sense of urgency, in 
many localities they are overwhelmed.
    The necessity to create substantial new partnerships has also been 
a frequent challenge. For example, the Emergency Housing Voucher and 
HOME-CV funding sources are targeted to people experiencing 
homelessness or at risk of homelessness. However, the funds were not 
given to entities in the CoC that routinely work with people 
experiencing homelessness. EHVs were given to Public Housing 
Authorities (PHAs) and HOME-CV funding was given to HOME Participating 
Jurisdictions (PJs). PHAs and PJs were then required to work with the 
CoCs to run the programs--an atypical proceeding.
Accessing Services
    Community leaders and homelessness assistance providers struggle to 
connect new housing resources to mainstream supportive services in many 
communities. In addition to the challenges with creating new housing-
related partnerships mentioned above, housing high-need individuals and 
families experiencing homelessness generally requires that they be 
connected to supportive services--services that are critical to housing 
stability. This often requires that funding recipients or their 
nonprofit partners develop new relationships with health partners. Such 
partnerships can be hard to achieve and take time to establish, 
especially when these healthcare entities are in the midst of pandemic 
response. People experiencing homelessness who do not require intensive 
or ongoing services to stay housed may still require assistance 
connecting to employment and education opportunities, which may 
similarly require the creation of new partnerships.
Funding Evidence-Based Approaches and Using Lessons Learned
    Congress should focus its policy and funding on solutions that we 
know work. At the same time, Congress should provide communities 
support to innovate when needed. The unprecedented nature of the 
pandemic and its health and economic impacts, coupled with rising rents 
and affordable housing supply shortages, mean that communities, 
providers, and people experiencing homelessness are facing uncharted 
waters. It is imperative that we learn from the implementation of 
pandemic-related resources and apply those lessons to our work moving 
forward. Returning to the pre-pandemic status quo should not be the 
goal.
    To address the affordable housing crisis that drives homelessness, 
it is also imperative that Congress invest in four areas:

  1.  keeping the stock we already have through affordable housing 
        preservation;

  2.  increasing affordable housing supply through investments in 
        targeted programs like HOME, Low-Income Housing Tax Credits and 
        the National Housing Trust Fund;

  3.  increasing affordability through an expansion of the Housing 
        Choice Voucher Program; and

  4.  helping individuals and families maintain housing by increasing 
        access to health and behavioral health services and employment.
Partnering With People With Lived Experience
    People with lived experience of homelessness bring a critical 
policy and program design perspective based on how our systems actually 
function, and can make important recommendations based on their 
experience using these resources. At the launch of the Framework for an 
Equitable COVID-19 Homelessness Response Project, \21\ project leaders 
asked people experiencing homelessness or housing instability for their 
input on what challenges should be prioritized and addressed in the 
Nation's homelessness response systems. Four themes emerged from the 
discussions and focus groups:
---------------------------------------------------------------------------
     \21\ See https://housingequityframework.org/partners for partner 
organizations.

    The most important priority is to address the lack of 
        affordable housing options. Adequate affordable housing options 
        and support (e.g., long-term rental assistance, affordable 
        housing development, services) must be developed and targeted 
---------------------------------------------------------------------------
        to those most impacted by structural inequities.

    Systems should treat people experiencing homelessness and 
        trauma with dignity. Dignity-based services led by the 
        communities most impacted by homelessness should be designed 
        and supported in a post-COVID environment.

    Congregate shelters should be re-imagined. Current 
        congregate emergency shelter options are often inadequate and 
        can cause further trauma for the people who use them.

    Criminalizing people experiencing homelessness causes harm. 
        Communities should end practices that criminalize people 
        experiencing homelessness. Law enforcement should not be the 
        primary responder when people experiencing homelessness need 
        assistance, because the interactions between law enforcement 
        and people experiencing homelessness are often negative and 
        cause harm.

    System planners and policymakers at all levels should actively and 
deliberately partner with people who have experience with the systems 
we seek to change. This can take a number of forms, including 
compensated work as advisors, board members, and technical assistance 
consultants. It can and should also take the form of increased 
employment opportunities for (and priority of) people with lived 
experience of homelessness. Having staff--including management staff--
with lived experience ensures more extensive and deliberate involvement 
in critical decisions about policy, program design, and resource 
allocation. Such a strategy would not only increase the employment of 
people experiencing homelessness, but improve the overall performance 
of the sector.
Housing First
    It is important to focus our resources on proven solutions such as 
Housing First. Housing First is an evidence-based approach to ending 
homelessness for individuals and families that prioritizes safe, 
permanent, affordable housing as the foundation for healing and pursing 
life goals. By providing rental assistance, Housing First directly 
addresses the primary driver of homelessness--the lack of affordable 
housing. There is a large and growing evidence base demonstrating that 
Housing First is an effective solution to homelessness.
    Voluntary supportive services that support an individual or 
family's housing stability and healing from trauma are also a critical 
part of Housing First. Under a Housing First approach, participation in 
services and other prerequisites are not required to access housing. 
But Housing First is never, when implemented according to the model, 
housing only. In fact, Housing First services are generally available 
to people while they are in shelter or other temporary accommodation 
and waiting for housing placement.
    Housing First programs are based on the premise that people are 
better able to benefit from services, become employed, and achieve 
stability if they are receiving services from the safety and security 
of a home. Using a Housing First approach does not mean that structured 
programs--like those that support sober living--are not made available.
    The focus of a system rooted in Housing First principles is about 
providing choices that can meet an individual or family's needs. Sober 
living or other more structured service approaches should be made 
available to people who prefer them.
    This approach recognizes that housing is a basic human need and 
people should not have to prove they deserve a place to live. This is 
also rooted in behavioral science and theories that people are more 
successful at achieving goals or making changes when they are self-
motivated to do so, as opposed to having goals imposed upon them. 
Centering choice is more than a value--it is essential to success.
    Housing First is also the most cost-effective strategy for ending 
an individual or family's homelessness and providing long-term housing 
stability. There is evidence that, for some people experiencing 
homelessness, funding housing and supportive services may produce net 
savings by reducing the use of emergency departments, emergency 
shelters, hospitals, law enforcement and incarceration, and other 
expensive community services. Housing First is also cost-effective 
because it produces much better housing, health, and economic 
outcomes--especially for children--and improves other measures of 
wellbeing compared to other approaches.
Housing Choice Voucher Expansion and Universal Vouchers
    Homeless assistance systems alone cannot end homelessness. This 
crisis requires a comprehensive approach that addresses the large 
number of households who cannot afford rents in their communities 
because their incomes are too low to afford reasonably priced housing, 
an insufficient supply of reasonably priced housing, or both. The 
approach must also address access to services for people who need and 
want them.
    The evidence about the positive impacts of Housing Choice Vouchers 
on families experiencing homelessness is clear. HUD's Family Options 
Study \22\ showed that enrolling in Housing Choice Vouchers improved: 
housing stability and reduced family separations, psychological 
distress, and alcohol/drug problems for the head of household; intimate 
partner violence; the number of schools that children attended and the 
number of absences for children; children's behavioral problems; and 
food insecurity among families as compared to usual care in the 
homeless system.
---------------------------------------------------------------------------
     \22\ Department of Housing and Urban Development, ``The Family 
Options Study'', https://www.huduser.gov/portal/family-options-
study.html.
---------------------------------------------------------------------------
    The most effective policy we could take to address the Nation's 
homelessness crisis is to provide a Housing Choice Voucher for every 
eligible household. Vouchers effectively fill in the gap between the 
cost of rent and utilities and how much a household can afford to pay, 
ensuring that those with very low incomes can afford housing. This step 
would fundamentally alter the landscape for people experiencing 
homelessness, institutionalization, and housing instability. Such a 
policy change would ultimately prevent many stints of homelessness: 
households with low incomes would be able to afford housing, and thus 
would be less likely to fall behind on rent and face eviction. It would 
lift millions of children out of poverty and improve educational 
outcomes, help seniors and people with disabilities, and provide youth 
and young adults with a brighter path to adulthood. \23\ This is the 
goal we should be working toward, even if we cannot get there in one 
step.
---------------------------------------------------------------------------
     \23\ Fischer, W., Acosta, S., and Gartland, E. (2021) ``More 
Housing Vouchers: Most Important Step To Help More People Afford Stable 
Homes''. Center on Budget and Policy Priorities. https://www.cbpp.org/
research/housing/more-housing-vouchers-most-important-step-to-help-
more-people-afford-stable-homes
---------------------------------------------------------------------------
    The Ending Homelessness Act of 2021 (H.R. 4496) and the Housing for 
All Act (S. 3788) both include a path to universal vouchers over 10 
years, a goal also discussed by President Biden during his campaign.
Homeless Assistance Grants
    The backbone of the Nation's homelessness crisis response system 
and permanent supportive housing stock are HUD's Homeless Assistance 
Grants programs. Congress should continue to invest in these core 
programs and provide increased and sustained funding for efforts to 
address unsheltered, rural, and Tribal homelessness. In addition, the 
Alliance urges Congress to consider two requests made by HUD in their 
Fiscal Year 2023 budget request: to increase the statutory cap on 
planning dollars for CoCs, and to allow HUD to issue a 2-year Continuum 
of Care Notice of Funding Opportunity. These simple changes will allow 
CoCs to conduct better planning with the partners needed to address 
critical challenges and create new partnerships as described earlier in 
this testimony, and will provide time to conduct these important 
activities between competitive cycles.
Pending Legislation
    There are several pieces of legislation within the jurisdiction of 
the Senate Committee on Banking, Housing, and Urban Affairs that 
deserve strong bipartisan support because they either help people 
experiencing homelessness become housed or prevent homelessness from 
ever occurring. The Alliance supports the following bills.

    The Flexibility in Addressing Rural Homelessness Act (H.R. 
        7196) would provide rural areas with additional options to use 
        Federal funds to reduce homelessness. This bill, which enjoyed 
        bipartisan support in the House, was approved without any 
        opposition by the House Financial Services Committee at a May 
        17 mark up. It has since been passed by the House as part of an 
        en bloc amendment to the FY23 National Defense Authorization 
        Act (H.R. 7900).

     This legislation would not increase costs to the taxpayers. 
        However, it would give rural communities three new 
        flexibilities when using the annual Federal homelessness 
        funding that flows through the Transportation-HUD 
        Appropriations Bill, particularly the Continuum of Care program 
        dollars that make up the bulk of the Homelessness Assistance 
        Grants:

      payment of short-term, emergency lodging, including in 
        motels or shelters,
        either directly or through vouchers;

      repairs such as insulation, window repair, door repair, 
        roof repair, and
        repairs that are necessary to make premises habitable; and

      capacity building activities, including payment of staff 
        training and staff
        retention.

     The Alliance supports H.R. 7196, which would simply allow rural 
        areas to spend precious homelessness funds on their most 
        pressing needs, which are not always the same as urban and 
        suburban areas.

    The Coordinating Substance Use and Homelessness Care Act 
        (H.R. 7196, S. 4482) would help local homelessness systems to 
        access supportive housing services so that people experiencing 
        homelessness with the most acute needs could be safely and 
        securely housed. The House bill was marked up by the House 
        Financial Services Committee on May 17.

     Some people who experience homelessness need more than rental 
        assistance. They need additional help to become housed--and 
        stay safely and securely housed--because of more acute needs, 
        which might mean help finding a suitable rental unit, working 
        with landlords to address concerns, case management, and other 
        services. However, supportive housing services are not normally 
        available with housing vouchers, including the Emergency 
        Housing Vouchers provided by the American Rescue Plan Act.

     The Alliance supports S. 4482, which would establish in HUD a 
        program to provide grants to homelessness organizations that 
        would help them to develop the capacity to access supportive 
        housing services, including billing Medicaid or paying a third 
        party to bill Medicaid.

    The Safe Parking Programs Act (H.R. 2965, Section 301 of S. 
        3788) would require HUD to provide grants to interested local 
        governments to establish or expand safe parking programs that 
        lead to permanent housing. Safe parking lots provide people 
        experiencing homelessness who live in their vehicles with safe 
        places to park and reside in their vehicles overnight to help 
        them transition to more stable housing.

     The Alliance's support for the legislation is contingent on safe 
        parking programs actually providing services to facilitate 
        transitions to more stable housing for residents, and that the 
        grants are paid for with new money--not with Federal funds 
        already committed to fighting homelessness.

    The Eviction Crisis Prevention Act (S. 2182), bipartisan 
        legislation introduced by your colleagues Senators Bennet and 
        Portman, would, among other things, significantly increase 
        housing stability through the creation of a national $3 billion 
        Emergency Assistance Fund (EAF).

     Building on the success of the COVID Emergency Rental Assistance 
        program, the EAF would be a permanent program that would help 
        families stay housed, and help communities and households avoid 
        the significant financial and psychic costs of homelessness.

    The Family Stability and Opportunity Vouchers Act (S. 
        1991), bipartisan legislation introduced by Senators Van Hollen 
        and Young, would establish 500,000 new Housing Choice Vouchers 
        over the next 5 years. These vouchers would be designated 
        specifically for families that are experiencing homelessness or 
        housing instability, or wish to live in areas with quality 
        schools, less crime, more resources such as grocery stores and 
        parks, and other opportunities for healthy development as well 
        as educational and professional success.

     The bill pairs mobility vouchers with customized support services 
        to help families escape the cycle of poverty and move to high-
        opportunity areas. Pregnant women and families with a child 
        under age 6 would qualify for these new vouchers if they have a 
        history of homelessness or housing instability, live in an area 
        of concentrated poverty, or are at risk of being pushed out of 
        an opportunity area. This includes families who are fleeing, or 
        attempting to flee, domestic violence, dating violence, sexual 
        assault, or stalking; families who are living in housing 
        conditions that are dangerous or life threatening; and families 
        who are living in units that are not accessible to a disabled 
        family member.

    The Fair Housing Improvement Act (S. 2182, H.R. 8213) would 
        make it easier for households across the Nation to use Federal 
        rental assistance in neighborhoods where they want to live.

     The Federal Government provides vouchers to help 2.3 million 
        veterans and low-income households live in decent, stable 
        private market housing. It is understood that Federal rental 
        assistance helps families avoid housing insecurity and 
        homelessness, improves health and educational outcomes, boosts 
        children's prospects for long-term success, and increases 
        racial equity. However, landlord discrimination against 
        families who pay the rent with vouchers, even including those 
        awarded to veterans, can leave those families with 
        significantly fewer options as to where they can live. S. 2182 
        would extend protections against source of income 
        discrimination across the entire Nation, thus making it easier 
        for all families with vouchers to live in their communities of 
        choice.
Conclusion: Advance Equity and End Homelessness With Investments Scaled 
        to the Need
    Homeless assistance and housing providers, local leaders and their 
staff are struggling to keep up with the demands placed upon them. 
People experiencing homelessness--who are disproportionally people of 
color and other marginalized people--are being increasingly dehumanized 
and criminalized as unsheltered homelessness increases and communities 
become frustrated with a lack of affordable housing options.
    The good news is that we know what works to solve homelessness for 
youth, individuals, and families. We have a strong and motivated field 
that can execute well-designed, flexible programs and policies even in 
the toughest of circumstances. Congress should make investments and 
policy choices that maximize the positive impact of our knowledgeable 
and compassionate workforce, and scale those investments so that we 
have a clear path to meet the needs of all people experiencing 
homelessness and prevent homelessness when possible.
    Imagine a homelessness assistance system that, instead of being 
forced to prioritize people based on how sick or in danger they are, 
can quickly offer a family, youth, or individual in crisis a permanent 
housing option. A system that prioritizes working with landlords to 
create and maintain positive relationships that benefit people 
experiencing homelessness, the business community, and neighborhoods. A 
system that provides outreach to people living on the street--outreach 
that actually includes a housing option rather than only a blanket, 
bottle of water, or granola bar.
    We have much work to do to realize that vision. The Alliance stands 
ready to assist with this important and necessary work.
                                 ______
                                 
                 PREPARED STATEMENT OF ISABEL McDEVITT
           Cofounder and Board President, Work Works America
                             July 19, 2022
    Thank you for the opportunity to testify to the United States 
Senate Committee on Banking, Housing and Urban Affairs Subcommittee on 
Housing, Transportation and Community Development on the topic of 
homelessness. It is an honor and privilege to collaborate with you to 
meet this moment of urgency by sharing innovative models that WORK.
    My name is Isabel McDevitt and I am Cofounder of Work Works 
America. I have worked in the field of homeless services since 1998 in 
New York City, Philadelphia, and in Metro Denver where I founded the 
Ready to Work program. Work Works America is a nonprofit dedicated to 
helping communities develop and implement employment-based solutions, 
including the award-winning Work Works methodology, to address 
homelessness for the estimated 40 percent of adults not served by 
Federally funded housing nor self-resolving out of emergency shelter or 
off the streets.
    As we know, homelessness is not yet eradicated in our great 
country. In fact, despite our best efforts, it is getting worse. The 
number of unsheltered people is growing \1\ and, as the price of 
housing continues to rise in proportion to household earnings, our 
abilities and tools to prevent and intervene with traditional housing 
resources are dwindling. Employers are struggling to find workers while 
nearly 80 percent of people experiencing homelessness are un or under-
employed. And homelessness disproportionally affects people of color as 
Black Americans who make up 13 percent of the general population 
represent 40 percent of the homeless population. \2\ It is time to 
reinvigorate our resolve to more holistically, equitably and 
effectively create policies and resources in our response to address 
homelessness.
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     \1\ https://www.huduser.gov/portal/sites/default/files/pdf/2020-
AHAR-Part-1.pdf
     \2\ https://endhomelessness.org/resource/racial-inequalities-
homelessness-numbers/
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    We need fresh, bold solutions to combat this crisis, especially 
those that promote de-siloed, collaborative approaches across Federal 
agencies as well as those that empower communities arming them with an 
array of best practice models, flexible policies, and funding that 
encourages innovation while leveraging the support of a broad spectrum 
of stakeholders. With coordination we can solve multiple-interrelated 
problems at once. We must be open to new ideas that enhance existing 
continuums of care and provide more tools in our toolkit.
    We need to embrace a multi-faceted approach for both the sake of 
the more than 580,000 unique individuals who experience homelessness 
each night in America \3\ as well as for the benefit of cities and 
towns of all regions and sizes struggling to break the cycles of the 
interrelated crises of homelessness, addiction, incarceration, and 
unemployment that plague their communities.
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     \3\ 2020 Point in Time survey.
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    The Works Works model is one example of a solution that can enhance 
our collective response to homelessness. Work Works combines paid work 
in social enterprise with transitional housing and support services as 
a stepping stone to mainstream jobs and housing. Founded in 1990 and 
pioneered by The Doe Fund's Ready, Willing, & Able (RWA) program in New 
York City, the Work Works model has been scaled to 6 other communities 
with great success including right here in Washington, DC, with Ready, 
Willing, & Working. In Metro Denver, Colorado, the Ready to Work, Work 
Works program houses and employs 94 people at any given time and 72 
percent of trainees graduate each year into mainstream employment and 
housing. In Georgia, Georgia Works indicates that every $1 invested in 
Georgia Works yields as much as $3.44 in cost savings related to 
recidivism and incarceration, emergency room visits, and public 
services according to a study conducted by Georgia Tech in 2020.
    Today, I will share my experience with the Work Works model in 
multiple regions and ask that we partner to make Work Works, and other 
specialized, targeted approaches like it, additional, complementary 
resources to existing interventions as we strive to end homelessness. 
We need to create the conditions for communities to expand housing-
based, service delivery models for the more than 73 percent of adults 
experiencing homelessness that do not meet the threshold of chronically 
homelessness and, therefore, do not qualify for permanent supportive 
housing. \4\ While our collective goal should be homeless prevention, 
we need chronic homeless prevention too.
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     \4\ National Alliance to End Homelessness--endhomelessness.org.
---------------------------------------------------------------------------
    Currently, Housing First is the most widely supported approach--
both philosophically and financially--by Federal policy and resources. 
But, homelessness is a symptom of myriad systemic failures, therefore, 
housing alone in many cases cannot solve it. Communities need 
additional tools that address the root causes of homelessness and 
remove the barriers people face--not just in getting, but in keeping 
permanent housing. Barriers that include un- and under-employment, 
addiction, mental illness, and lack of access to behavioral health 
care.
    People experiencing homelessness are victims of a lack of 
investment--beginning upstream with failing schools, substandard 
housing, unequal access to healthcare, racial inequities, and 
inadequate access to living wage jobs. Street homelessness, mass 
incarceration and drug abuse are downstream results of these systemic 
failures. Of course we would want to prevent homelessness in the first 
place but when we can't and people find themselves on the street after 
a life event or exit from an institution or at the proverbial ``rock 
bottom'', we need quick, accessible interventions and resources to 
provide tangible, sustainable pathways back to housing that include 
access to employment and behavioral health services. We need to provide 
swift access to targeted resources and opportunities that meet the 
diverse needs of the homelessness population to disrupt the trauma of 
being unhoused and prevent the devastating effects of chronic 
homelessness.
    Our lack of investment in dynamic solutions doesn't just affect 
marginalized populations, it hurts everyone. The costly cycles of 
incarceration have not only a massive financial price tag but a 
profound impact on communities. Individuals with histories of 
incarceration, are nearly 10 times more likely to experience 
homelessness than the general public. \5\ The un- and under-employment 
of people who have experienced homelessness and incarceration leads to 
a loss of 1.7-1.9 million workers and between $78-$87 billion in GDP 
per year. \6\ Of people experiencing homelessness in America, an 
estimated 78 percent are jobless or underemployed. \7\
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     \5\ National Low Income Housing Coalition.
     \6\ Center for Economic Policy Research--The Price We Pay: 
Economic Costs of Barriers to Employment for Former Prisoners and 
People Convicted of Felonies.
     \7\ Working Population Grows in America, Parade Magazine and 
program services data.
---------------------------------------------------------------------------
    When addressing homelessness, the link between employment and 
homelessness has been grossly ignored. Now, in 2022 as the country 
strives to recover and invest in workforce development, policies and 
programs that create jobs and foster economic growth cannot repeat past 
mistakes by excluding the most marginalized including people at risk of 
or experiencing homelessness. Work Works is a bridge that reaches, 
prepares, supports and stabilizes people--and brings them into our 
mainstream economy and society yielding a massive return on investment 
both socially and financially.
    For more than two decades, approaches such as Housing First and 
Permanent Supportive Housing have been the focus of funders and 
policymakers. While Housing First appears to be a logical and immediate 
solution, dig deeper and you will see that traditional housing models 
are only viable for an estimated one quarter of adults experiencing 
homelessness based on economic and eligibility criteria set by Federal 
policy. Additionally, despite massive allocations of funds the cost and 
requirements for each unit of housing has slowed development to a 
trickle and, despite increased funding for voucher programs, many 
vouchers go unused due to lack of housing stock for people to rent.
    In a recent ``House America'' webinar, a senior HUD representative 
presented statistics from the 2020 Point in Time count that illustrate 
the fact that across the country we are lacking housing resources for 
85 percent of the population of adults experiencing homelessness. \8\ 
Put more simply, of 100 people experiencing homelessness only 15 will 
have access to housing resources. This is partially due to the supply 
of units compared to the Stated development target for housing 
development and, importantly, this is also due to eligibility criteria 
set that disqualifies people who are not chronic or ``vulnerable'' 
enough to qualify in the first place even if there was enough supply.
---------------------------------------------------------------------------
     \8\ https://www.hud.gov/house_america
---------------------------------------------------------------------------
    While Permanent Supportive Housing is an important and much needed 
resource for those it serves, we need to build upon its success and 
expand our impact by creating opportunities and resources that reflect 
the diversity of people experiencing homelessness. We need to rethink 
what types of housing we can site and afford including flexible models 
such as co-ops and single room occupancies.
On the ground perspective:
    In the 1980s, George McDonald who founded The Doe Fund and the Work 
Works model spent 700 nights in a row handing out food in Grand Central 
terminal where he listened to and acted on the needs of the people he 
met and served who said over and over ``thank you for the sandwich, 
what I really need is a room and a job to pay for it''.
    For more than 30 years thousands of people have echoed this 
statement and have credited the opportunity to work for resolving their 
homelessness and the transformation of their life.

    This is just one story:

        As a child growing up fatherless in Washington Heights, Johnny 
        watched helplessly as his mom struggled to put food on the 
        table for her three children, to keep a roof over their heads 
        and clothes on their backs. But no matter how hard she worked, 
        there was never enough money.

        For a 12-year-old living in poverty, desperately wanting to 
        help his family survive, the lure of the streets--the lure of 
        easy money--can be hard to resist, no matter the risks. ``I 
        hung out with an older crew and we did all kinds of things to 
        make money,'' says Johnny. ``We robbed people. Broke into 
        apartments. Sold drugs. Sure enough, I started to bring money 
        home. It made me feel like a man.''

        But he wasn't a man. He was a 12-year-old boy who was in over 
        his head. By the time he realized that his life was spiraling 
        out of control, it was too late. The crimes and violence had 
        escalated so much that he was getting arrested three to four 
        times a week. By the age of 25 Johnny had spent half his life 
        behind bars--in and out of prison again and again.

        ``That's the problem with the streets,'' he says. ``They trick 
        you. You think you're working them and getting this big pay 
        out. But the whole time, the streets are working you. Taking 
        from you.''

        Johnny's family was evicted from their apartment. He was alone, 
        with nowhere to go. But everything changed when he joined 
        Ready, Willing, & Able. ``For the first time since I was 12, I 
        wasn't a criminal,'' he says. He was a young man with a future 
        . . . a real future. ``I was someone who deserved a chance in 
        life.''

While I have never experienced homelessness, I have worked with tens of 
thousands of people who have. From my perspective working in this field 
for 24 years in places as different as New York City and Boulder, CO, I 
have seen the universal power of opportunity and the stark need for a 
more comprehensive, pragmatic continuum of services that includes work 
and embraces opportunity.
    When I was a shelter provider on the ground in Colorado, I saw how 
the monolithic Housing First approach excluded people and that spurred 
me to bring Work Works to the community.

        After seeing people like Kurt, 39-years old using heroin since 
        his twenties, divorced due to addiction, living under a bridge 
        in the dead of winter;

        And Nellie, age 62, who found herself on the streets after 
        losing her husband to cancer and crushed by a pile of medical 
        bills. Frail, vulnerable, and unable to afford her own hearing 
        aids, sleeping under a tree, scared and alone;

        And Kristie, age 31, released from 3 years in prison to the 
        streets. With no relationships or support and a criminal 
        background looming, looking for a fresh start, a platform to 
        begin her new life and to build a foundation to regain custody 
        of her 7-year-old son.

    I was compelled to start Ready to Work. Kurt, Nellie, and Kristie, 
none eligible for the Housing First resources available in Boulder. All 
successful participants in the Ready to Work, Work Works program.
    Other communities feel this, too, and as a result seek Work Works. 
We receive hundreds of inquiries a year and are in active conversations 
with local stakeholders from Texas, Maine, Kentucky, and California.
What can we do? The Work Works Solution as a Complement to Housing 
        First
    The Work Works model empowers adults experiencing homelessness who 
do not self-resolve out of shelter, off the streets, or reentering from 
incarceration, AND who are not vulnerable enough to qualify for 
traditional, HUD funded resources. Work Works encompasses a dynamic 
approach with a holistic combination of paid transitional work in a 
social enterprise coupled with housing and support services as a 
pathway to mainstream employment and independent housing in one, 
voluntary program. Work Works, and its holistic design, is a complement 
to Housing First and an additional tool for communities. This is not an 
``either/or'' choice, rather it is a ``yes and'' proposition.
    Over 85 percent of participants in Work Works are people of color, 
88 percent self-report a history of substance abuse, over 70 percent 
have a history of incarceration, 25 percent have been unemployed for 5 
or more years before joining the program. Zero percent reach the 
threshold to qualify for permanent supportive housing.
    The first element of Work Works is paid work for participants to 
gain work experience and earn an income. A Work Works model operates 
social enterprises that offer work experience and training for 
approximately 30 hours per week. Social enterprises are businesses that 
integrate a social mission with a market-based, competitive, revenue 
earning business. Not only do program participants build resumes and 
references, participants are empowered and often emotionally 
transformed by the powerful purpose of work. Work Works enterprises can 
support up to 40 percent of total program operating cost through earned 
revenue. Each year Work Works social enterprises pay millions of 
dollars in earnings to program participants.
    The second element of Work Works is housing, which in this case 
means transitional, safe, affordable accommodations for program 
trainees. The Works Works housing type includes dormitory-style 
housing. In the case of Ready to Work in Boulder and Aurora, Colorado, 
the program converted commercial office buildings into community living 
with a private living space at 20 percent of the cost of building 
traditional units and in less than 18 months from concept to opening 
for a net gain of 94 units of housing. \9\ Unfortunately, these 
projects were not eligible for HUD funding and relied on local sources 
and philanthropy. Living in Work Works housing that is part of the 
program from day one and provides a sense of community and positive 
living environment to support participants as they transition out of 
homelessness or reenter from incarceration.
---------------------------------------------------------------------------
     \9\ www.readytoworkco.org
---------------------------------------------------------------------------
    In the third element of the program, support services, trainees 
meet with case managers and participate in life-skills training such as 
financial management, debt relief and addiction recovery. Workforce 
Development services include Adult Basic Education and occupational 
training. Participants are required to establish a savings account to 
ensure financial stability after they graduate and are living 
independently.
    All of these elements working in tandem are required for Work Works 
to be successful in the goal for participants to graduate into full-
time mainstream jobs and housing after one year.
So what's next? Let's make ``Work Works'' and other models like it work 
        for more Americans
    I am here today to ask for your partnership in making cost-
effective, replicable and successful models like Work Works available 
on a wider scale. To do so, we need recognition from Federal policy 
makers that there is a vital, complementary role for creative housing 
solutions coupled with interventions such as access to employment and 
behavioral health services to enhance the current Housing First 
practices. Without such support we will continue to fail to provide 
opportunities for a large proportion of people experiencing 
homelessness especially those who, with the right support, can 
successfully integrate into the community.
    The public health crisis of COVID-19 and the associated economic 
challenges have illuminated the need for innovative and collaborative 
efforts. The growing numbers of encampments on streets not just in 
major metropolitan areas but small cities too, has led to a boiling 
point and recent reports of skyrocketing housing costs point to a 
looming eviction crisis that must be averted. Your leadership can set 
the stage for and create conditions for our Nation to reimagine its 
response not just the circumstance of being unhoused but the myriad 
factors that cause and perpetuate homelessness.
    Thankfully funds have been committed at the Federal level through 
the CARES Act and America Rescue Plan. To best leverage these 
resources, communities must have a policy framework that allows them to 
be creative, targeted, and quick in their approaches to addressing 
homelessness. Nontraditional forms of housing that are not currently 
funded by HUD or Low Income Housing Tax credits, such as co-ops, 
dormitories and single room occupancies converted from commercial 
spaces or vacant hotels, must be considered. This type of housing has 
proven to be successful with Work Works locations in every region. 
Supportive services that allow for people to be ready and successful in 
housing are critical and need to be not only funded but coordinated 
with agencies such as SAMSHA to intentionally link support services to 
housing especially, for example, as we see increasing links between the 
opioid crisis and homelessness. And, of course, given the current state 
of the labor market it is also critical to seek ways to align workforce 
development efforts with the Department of Labor to meet the needs of 
employers in every sector, especially the construction trades, with the 
human capital of people who are experiencing homelessness that have the 
capacity and desire to work.
    In the case of Work Works, the model can be mobilized quickly and 
effectively and brings benefits to numerous stakeholders. Because our 
cost-effective model leverages earned revenue in social enterprise and 
combines housing with supportive services, it better deploys taxpayer 
funds than traditional homeless services. Work Works offers ways for 
agencies to pool resources for a more comprehensive, de-siloed approach 
to addressing homelessness.
    The ultimate goal of Work Works is for trainees to graduate the 
program with a full time, mainstream job, independent housing, and 
sobriety. Every successful completion of Work Works represents not only 
a personal victory but an individual breaking free of the costly cycles 
of homelessness, unemployment, and, often, criminal recidivism. Most 
people eligible for Work Works have a history of cycling in and out of 
government systems including frequent contact with the criminal justice 
system. The publicly funded programs include foster care, shelters, 
prisons, and drug treatment centers--costing tax-payers billions of 
dollars each year. Work Works' holistic design, innovative model, and 
work-oriented culture provides an opportunity for individuals caught in 
these cycles to truly change their lives.
    Even before participants graduate into full-time jobs and housing, 
they are reducing strain on the community. From the day they join a 
Work Works program, they are integrated into the workforce through 
their employment in social enterprise demonstrating the real 
contribution they can make to the community. They are earning and 
saving money, contributing to the economy, are out of prison and off 
the streets.
    In addition to the cost savings and graduation numbers, Work Works 
has significant impacts on the individual including but not limited to 
increased self-esteem, improved health, and family reunification.
    With policy support and funding, Work Works can be deployed quickly 
to make an immediate, measurable impact on communities of all kinds. 
Our recommendations include:

    Recognizing the holistic model of Work Works--which 
        combines employment, housing, and supportive services--as a 
        new, necessary category of the continuum of care that brings 
        multiple benefits to communities in need.

    Broadening the current, restrictive definition and on-the-
        ground implementation of Housing First. Setting policy for a 
        broader view of housing first to allow complementary efforts 
        for communities to provide and fund congregate living/
        transitional housing for special populations.

    Allocating funding to the Work Works model that can be 
        accessed by States, counties, and municipalities for the 
        purpose of launching and sustaining transitional paid work, 
        coupled with housing and support.

    Leveraging funding from a broad range of sources--including 
        Federal agencies and private/public ventures--to support Work 
        Works, given that its holistic approach not only addresses 
        homelessness but also offers economic development, workforce 
        development, behavioral health care, reentry services, and many 
        more benefits.

    By investing in human capital, the Work Works model has the 
potential to move hundreds of thousands of people off the streets each 
year into jobs and housing. Our vision is to advance economic and 
racial justice while saving hundreds of millions of dollars for the 
communities we empower through our cost-effective Work Works solution 
that integrates previously marginalized communities into the mainstream 
economy in order to break cycles of poverty, homelessness, and 
incarceration.
    Thank you for this opportunity.
                                 ______
                                 
                  PREPARED STATEMENT OF KATHRYN MONET
   Chief Executive Officer, National Coalition for Homeless Veterans
                             July 19, 2022
    Chair Smith, Ranking Member Rounds, and distinguished Members of 
the Subcommittee: On behalf of our Board of Directors and Members 
across the country, thank you for the opportunity to share the views of 
the National Coalition for Homeless Veterans (NCHV) with you. NCHV is 
the resource and technical assistance center for a national network of 
community-based service providers and local, State and Federal agencies 
that provide emergency, transitional, and supportive housing, food, 
health services, job training and placement assistance, legal aid and 
case management support for thousands of homeless, at-risk, and 
formerly homeless veterans each year. We are committed to working with 
our network and partners across the country to end homelessness among 
veterans.
    Eighty-two communities and three States have achieved the Federal 
Benchmarks and Criteria for Ending Veteran Homelessness. While veteran 
homelessness decreased by 50 percent between 2010 and 2020, HUD's 2020 
Point-in-Time Count data revealed a slight uptick in veteran 
homelessness to 37,252 individuals on any given night. Decreases in 
veteran homelessness were made possible over the last decade due in 
large part to Congressional investment in key Federal Programs, 
implementation of evidence-based solutions like Housing First, and 
dedicated coordination at the national and local level.
    I'd like to first touch on why people experience homelessness. At 
its very core, homelessness is caused by a fundamental mismatch between 
the availability of affordable housing in a community's housing market 
and an individual's ability to pay for housing. According to HUD, the 
average rental price has increased by 4 percent annually over the last 
decade and a staggering 66 percent between 2010 and 2020. Yet the 
Federal minimum wage has remained unadjusted since 2009. This mismatch, 
paired with weak social support networks and institutional and systemic 
racism, has been the major driver for the nationwide rise in housing 
instability that we have seen over the last several years.
Impact of COVID-19 Pandemic
    The COVID years have taught those of us working on homelessness 
many lessons. Homeless service providers pivoted programming; 
reimagined what was possible for veterans; reconfigured space in 
congregate settings; worked incredibly hard to keep veterans in their 
communities safe from COVID; and moved as many veterans as possible 
into permanent housing.
    Now that many communities are out of an emergency response posture 
and are getting back to prepandemic practices, it is more important 
than ever that we work to address the underlying causes of housing 
instability. The confluence of rising inflation rates in our current 
economy, the housing affordability crisis that we are experiencing, and 
the wind down of pandemic assistance programs like ERA in many 
communities is exacerbating housing stability challenges for the 
general population and veterans alike who have far too little income in 
tight housing markets.
    Now is the time to:

    create permanency among programs, particularly those for VA 
        that were authorized through the end of public, State or local 
        health emergencies;

    continue to implement lessons learned,

    double back to address persistent barriers slowing the 
        housing placement process and perpetuating inequities; and

    focus on research and data analysis to improve our 
        understanding of how to close gaps in support for veterans, and 
        key populations of veterans in particular.

    As we look toward the future, we need to proactively ensure that we 
have solutions available to meet the needs of veterans. That means 
scaling up interventions that create a housing-focused system in 
communities while also ensuring the availability of crisis-response and 
treatment options for those who need them. It is no secret that the 
version of prepandemic normal so many of us experienced was one that 
exacerbated inequity and homelessness is but one glaring symptom of 
those challenges. While growth in the unsheltered population requires a 
focus on providing crisis response services like shelter and outreach, 
we also need to address the root causes of their homelessness rather 
than utilizing law enforcement as the default response to a social 
problem. We need to commit at a national, and local level, to investing 
in and improving our own communities around the issues causing veterans 
near us to become homeless. This means addressing systemic & 
institutional inequities, partnering with unorthodox bedfellows who 
could close gaps, addressing the shortage of affordable housing, and 
shoring up support for homelessness prevention and housing stability 
resources.
    Rising inflation rates, the housing affordability crisis that we 
are experiencing, and the wind down of pandemic assistance programs 
like ERA in many communities have created a perfect storm for increases 
in veteran homelessness. This confluence of risk factors will create 
housing stability challenges for people and veterans alike who have far 
too little income in tight housing markets.
The Housing Supply and Affordability Crisis
    The lack of affordable housing is one of the biggest challenges 
that service providers face as they work with veterans who are exiting 
homelessness. The National Low Income Housing Coalition reported \1\ 
that nationwide, there are approximately 36 units available for every 
100 individuals searching at 30 percent of the area median income. This 
forces extremely low income veterans into paying more rent than they 
can afford and making hard choices between housing and food or 
utilities or other essential needs.
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     \1\ https://nlihc.org/gap
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    Not only is there a shortage of affordable housing, but that 
shortage has been driving nationwide rent increases. The July 2022 
National Rent Report from Apartment List \2\ found that rents increased 
by over 17 percent in 2021 and by another 5 percent in 2022 to date. 
The average renter is facing a shortage of units and higher prices, 
increasing their risk of falling into homelessness. While the lack of 
affordable housing is a contributing factor to veteran homelessness, 
neither this problem nor its solutions are unique to veterans. Congress 
needs to invest in affordable housing production, subsidies to ensure 
that low income veterans and civilians can afford housing, and 
additional supports to help with housing stability.
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     \2\ https://www.apartmentlist.com/research/national-rent-data
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Services and Supports
    Despite the gap in affordable housing, it is unlikely that we will 
be able to build our way out of homelessness quickly enough to meet the 
needs of people experiencing homelessness today. Development takes 
time, and it is no easy task to make projects on the affordable end of 
the market pencil out for developers. These realities set the stage for 
one of VA's top 5 priorities of moving an additional 38,000 unsheltered 
veterans into permanent housing by the end of 2022.
    NCHV thanks Congress for supporting VA's homeless programs by 
creating flexibility, offering new spending authorities to meet 
emergent needs, and ramping up the capacity of VA programs during 
COVID. Utilizing section 4201 authority under the recently passed 
Isakson/Roe P.L. 116-315, 80 VAMCs have been able to provide services 
for an additional 29,883 veterans during COVID as well as provide 
transportation for an additional 26,712 veterans as of 6/30 of this 
year. It is worth noting that VA has seen that much of the program's 
expenditures have occurred in the past three months. The need for 
sufficient funding must be incorporated into non-emergency 
appropriations and authorizations as we move away from COVID-specific 
emergency funding. If we are to move out of this emergency while 
continuing to decrease veteran homelessness, VA must implement program 
expansions enacted earlier this year, and begin planning to incorporate 
program changes included in current legislative proposals before 
Congress.
    The Grant and Per Diem (GPD) Program has been making adjustments to 
program grants and has awarded two rounds of capital grants for 
providers to de-congregate these transitional housing facilities during 
COVID in accordance with improving the public health risk. These grants 
should be continued and expanded to include facility improvements 
beyond emergency needs and the end of emergency designations. The daily 
per diem rate must also be addressed. At the sunset of the public 
health emergency declaration, the maximum reimbursement rate GPD 
providers can receive will drop from $152.73 to $60.06 a day. This rate 
is intended to provide overnight housing, meals, and wraparound 
services and supports for homeless veterans. NCHV recommends Congress 
pass S. 2172, or the House companion H.R. 5606 to directly address 
these issues.
    The Supportive Services for Veteran Families (SSVF) program's 
shallow subsidy initiative has recently been adjusted, increased and 
expanded nationwide due to its apparent success during the pandemic. 
Yet, exactly because of COVID there is a dearth of information on how 
many veterans utilized the Treasury Department's ERA, and other 
resources, making it harder to get our arms around the true scope of 
the challenge in a data-driven method. NCHV is supportive of this 
expansion and has recommended further study and data collection to 
gauge effectiveness incorporating recent program operation updates.
    The HUD-VASH program has been a successful best practice, due to 
the pairing of a section 8 voucher with case management to connect 
veterans to services and supports that will help them remain stably 
housed. The acute nature of veteran needs in this program is exactly 
why this pairing has been so successful. The availability of, and 
access to, case management services through the Nation's largest 
healthcare provider, VA's VHA and the Medical Centers (VAMCs) and 
Community based Outpatient Centers (CBOCs) throughout the Nation has 
been successful where VA is able to staff and or contract for case 
managers to administer the program. Despite the program's successes, 
work can be done on two fronts. First, to improve the case management 
veterans are able to access. Second is that vouchers have become more 
challenging to use due to the housing affordability crisis and the 
stigma that some landlords have against accepting section 8 vouchers as 
a form of rental payment. A veteran may finally get a voucher in hand, 
only to have no place to rent.
    Staffing for both VA and providers remains a challenge. There are 
only so many qualified providers available in any given region, with 
even fewer graduating each year. This means that the community 
healthcare providers, VA, and service providers are all recruiting from 
the same pool, exacerbating staffing issues. NCHV will continue to work 
with Congress and VA to address this issue.
In Summation
    Thank you for the opportunity to submit this testimony and for your 
continued interest in ending veteran homelessness. It is a privilege to 
work with all of you to ensure that every veteran facing a housing 
crisis has access to safe, decent, and affordable housing paired with 
the support services needed to remain stably housed.
                                 ______
                                 
                 PREPARED STATEMENT OF CATHY TEN BROEKE
 Assistant Commissioner and Executive Director, Minnesota Interagency 
                     Council on Homelessness (MICH)
                             July 19, 2022
    Chairwoman Smith, Ranking Member Rounds, and Members of the 
Subcommittee, thank you for the opportunity to testify before you 
today. I am Cathy ten Broeke, Assistant Commissioner and Executive 
Director of Minnesota's Interagency Council on Homelessness. I am 
honored to be here.
    The Minnesota Interagency Council on Homelessness is a cabinet-
level body led by our Lt. Governor, Peggy Flanagan, and cochaired by 
the members of the Governor's cabinet leading our housing and human 
services programs and policies. It is comprised of the leaders of 13 
State agencies with the understanding that they all have a role to play 
in preventing and ending homelessness--whether removing barriers to 
employment, education, or transportation; providing high-quality 
housing; or access to health care, supports and services. Minnesota has 
a strong history of bipartisan leadership on the issue of homelessness. 
The first statewide effort to address the issue was in 2004, led by 
Republican Governor Tim Pawlenty. The work of the following two 
Democratic administrations has built on the commitment that all 
Minnesotans deserve a safe and stable place to call home.
    I have worked on the issue of homelessness for nearly 30 years, 
first in direct service at a Minneapolis shelter followed by various 
public policy roles at all levels of government. I have witnessed 
progress, missed opportunities, lessons learned, and heartbreak. We 
have in this moment, in the wake of the pandemic, a critical 
opportunity to shift how we respond to homelessness as the crisis and 
public health emergency that it is.
    Today, I want to share with you what is working in Minnesota and 
where we still have significant challenges to address together.
    Minnesota is home to 87 counties and 11 Tribal nations. 
Homelessness and housing instability impacts every part of the State 
from rural areas in Greater Minnesota to the larger population centers. 
Approximately 8,000 people are homeless on any given night in 
Minnesota. Half are families with children and 25 percent are people 
without shelter--meaning they are sleeping outside, in cars, or other 
places not meant for human habitation. This number and percent have 
been rising for the last several years, even before the pandemic. 
Approximately 35-40 percent of all people identified as homeless are 
outside the Twin Cities metropolitan area in rural areas of our State. 
In fact, the fastest rate of growth in unsheltered homelessness between 
January 2019-January 2020 occurred in Greater Minnesota. Rural and 
Tribal communities have the same challenges related to lack of 
affordable housing options but often struggle with the unique 
challenges associated with far greater distances people must travel to 
get to services and employment opportunities.
    In addition to the approximately 8,000 people homeless on any given 
night in Minnesota, one-in-four Minnesota households is paying more 
than they can afford for housing, putting them at risk of homelessness 
every day. Over the last two decades median rents rose 21 percent while 
median incomes rose by just 3 percent, adjusted for inflation. No 
community in our State has an adequate supply of affordable housing for 
those who need it.
    And we are living with the continuing impact of racism in access to 
housing. Explicitly and intentionally racist policies of the past are 
compounded by the complex and insidious way that racism shapes access 
to housing options today, and the economic and wealth-building 
opportunities connected to them. In Minnesota, if you are Black, you 
are 15 times more likely to be homeless than a White Minnesotan. If you 
are Native American, you are 27 times more likely to be homeless than a 
White Minnesotan and 31 times more likely to be sleeping outside, 
without shelter.
    Our work to prevent and end homelessness in Minnesota shows uneven 
progress. Not surprisingly, where we have had bi-partisan, strategic 
investment from all levels of government we have had the greatest 
success. Our best proof that ending homelessness is possible is our 
collective work to end Veteran homelessness in this country. With 
dedicated resources focused on Veterans' specific needs and using data 
and evidence to guide practice the outcomes have been stunning. In 
Minnesota, we have effectively ended Veteran homelessness in 85 of our 
87 counties. This does not mean that no Veteran will ever again face a 
housing crisis in these counties. Rather, this means that these 
communities have proven, through a rigorous data evaluation conducted 
by the United States Department of Housing and Urban Development (HUD), 
the United States Department of Veterans Affairs (VA), and United 
States Interagency Council on Homelessness (USICH), that they have a 
system in place that can prevent homelessness for Veterans whenever 
possible. If a Veteran does become homeless, those communities can 
ensure that the instance of homelessness will be brief, and they will 
be connected back to stable housing with supports they need to maintain 
that housing. Being a Veteran in Minnesota is now a protective factor 
against homelessness. I look forward to the day when being a child or 
youth is a protective factor against homelessness, when having a 
serious health condition is a protective factor against homelessness, 
when working in lower-paying jobs that we desperately need filled in 
this country is a protective factor against homelessness, and when your 
race does not increase your likelihood of becoming homeless.
    In Minnesota, we have also been able to increase resources and 
supports for families with children. Many communities have used these 
resources strategically to reduce homelessness among families with 
children--down 32 percent statewide between the years 2010-2020. We 
credit these reductions, especially in Hennepin County, which includes 
the City of Minneapolis, to targeted prevention, coordination with 
employment services, and investments in families with the highest 
barriers to accessing housing. These efforts have meant that many 
families either never entered the shelters due to their housing crisis, 
or if they did, they had targeted interventions to help ensure they 
found and kept their new housing. Our thanks to HUD for the emphasis 
they have placed on targeting and prioritizing resources to those with 
the greatest barriers. This directly led to reductions in family 
homelessness.
    Other trends in Minnesota are deeply concerning. The number of 
people sleeping outside has been rising rapidly for the last several 
years, even prior to the pandemic. As housing becomes increasingly out 
of reach for lower-income people, it
becomes next to impossible to access for people with both the lowest 
incomes and the greatest health needs. People in these unsheltered 
settings experience the greatest risks from fire, infectious disease, 
violence, and exploitation. This was also where we see the greatest 
intersection with the opioid epidemic and highest barriers to housing. 
The housing that will work for people who have been homeless the 
longest and have chronic health conditions may need to include a 
greater number of services and supports. Permanent supportive housing 
(housing linked to services) has been the most successful tool we have 
had to help hundreds of people off the streets and into housing, even 
those who have been homeless the longest. We have learned over the 
years (and especially during the extra challenges brought on by the
pandemic) that all people are ready for housing. We need housing that 
is ready for them.
    The pandemic, while devastating and traumatic, was also a moment of 
great learning. Minnesota's collective response to COVID-19 for people 
facing homelessness showed the urgency and resourcefulness one would 
hope a crisis would create. We witnessed what was possible when 
resources were paired with creative determination to save lives and 
bring people inside.
    Federal resources provided by Congress through the CARES Act and 
the American Rescue Plan helped us save lives during the pandemic. When 
the pandemic hit, we were deeply concerned that thousands of people 
living with complex medical conditions in congregate spaces would get 
very sick and potentially die.
    Prior to the release of Federal COVID-19 resources, our State 
legislature committed over $30 million to protect people experiencing 
homelessness. In partnership with local governments, Tribal nations, 
and direct service providers throughout the State, we quickly 
established 2,800 hotel rooms or other single occupancy shelter spaces 
to allow for physical distance, provided emergency staffing support, 
food and supplies, isolation spaces, and additional State housing 
support. The increased resources helped a struggling hospitality 
industry, ensured medical personnel in hotels, on-site clinical 
behavioral health staff, and culturally specific programming. These 
resources expanded shelter services and created a hotel-to-home model, 
connecting people staying outdoors with permanent housing. These hotel-
to-home projects partnered with Tribes and nonprofits in both the Twin 
Cities Metro and in rural areas of the State, moving entire encampments 
into hotels, and moving several hundred people into permanent housing.
    While lives were no doubt saved, it was also very clear during the 
pandemic that people without a place to be inside and safe were at a 
far greater health risk. In fact, compared to other Minnesotans who 
tested positive for COVID, Minnesotans sleeping outside are 11 times 
more likely to end up in the hospital if they tested positive for COVID 
and 8 times more likely to end up in the ICU.
    During the height of the pandemic, when there was a ``stay at 
home'' order, we witnessed many people seeking refuge in encampments in 
Minnesota as in many places around the country. The largest of these 
encampments was at a neighborhood park in south Minneapolis. At one 
point there were over 200 tents. To respond, we needed a different 
approach. One of our housing providers who had been assisting us with 
protective hotels went to the encampment and talked with almost every 
person staying there. Through that process and a collaboration that 
involved the city, county, State, and philanthropy, they developed a 
program called Avivo Village. This is essentially an indoor village of 
small structures where each person has their own space, a door they can 
close, privacy and dignity. It was intentionally designed to serve 
people that no other existing program worked for. Their goal is to 
prioritize people with the greatest challenges to enter this program. 
At Avivo Village there is a sense of community and connection, and the 
main goal of this program is to move people onto permanent housing 
options that will work for them. They have been able to do that for 
dozens of residents. This is one example of many in Minnesota, showing 
the creativity of partners in solving for some of our most significant 
challenges during the pandemic.
    In addition to the resources that helped protect people in shelters 
and outside, Federal rental assistance during the pandemic was critical 
to stemming the tide of homelessness. We knew people were struggling to 
pay rent and find housing that was affordable before the pandemic, but 
we have seen increasing needs over the course of the pandemic.
    Minnesota paid out nearly $450 million in Federal Emergency Rental 
Assistance Funds through RentHelpMN. Funding went to every county in 
Minnesota. Over the months the program operated, we saw that need for 
assistance continue to increase.
    Hennepin County reported that over 1,000 fewer children experienced 
homelessness in 2021 (during the pandemic) than did in 2019 (before the 
pandemic). The dramatic and accelerated reductions they saw in 2020 and 
2021 are credited to the widespread availability of rental assistance.
    Sadly, as those Federal resources come to an end, we are seeing a 
return to our 2019 rates of family homelessness. The correlation could 
not be clearer. Rental assistance works. When it is not there, the 
number of people experiencing homelessness rise.
    The level of Federal investment during the pandemic has given 
Minnesota the opportunity to show what is possible. It has transformed 
many aspects of our work together. Federal partnership in tackling the 
challenges ahead will be critical to our success going forward.

  1.  The homeless response workforce is overwhelmed and underfunded. 
        More and sustained Federal investments in housing and 
        homelessness program are needed.

    The workforce challenges we are seeing everywhere are also 
impacting homeless services. These providers have never been well paid. 
Staffing shortages not only undermine overall capacity but also 
efficiency and effectiveness as crisis services must focus on the bare 
necessities of keeping their doors open, rather than the work of 
providing case management and housing navigation. The scrappy 
nonprofits running these vital programs must have a way to attract, 
develop, and retain talent. This is hard to achieve without increased 
funding.
    While more investment in the homeless crisis response is critical, 
homelessness is not a problem that homeless service providers can solve 
alone. Homeless service providers are like an emergency room, dealing 
with the crisis of the moment. But just as we would not expect an 
emergency room to solve the Nation's health problems, our homeless 
service providers cannot make up for the lack of housing needed to 
solve the problem.

  2.  Housing is out of reach for the lowest-income Americans. We need 
        to increase the supply of housing as well as its affordability 
        by making bold investments in rental assistance.

    Every year the need for housing that is affordable to lower-income 
Americans outpaces the production of units at those needed price 
points. The result is a net loss. In Minnesota alone, we are short 
nearly 100,000 units of housing for the number of households at 30 
percent and below area median income ($35,200 for a family of four). As 
the gap between what housing costs and how much low-income people earn 
continues to grow, homelessness will continue to grow.
    Most evictions in Minnesota are based on nonpayment of rent. Often, 
relatively small amounts of money are needed to prevent homelessness 
for a family and ultimately even greater public costs. In Hennepin 
County, for example, the average amount of rent owed is just over 
$4,000. Simply put, rental assistance keeps people, including children 
and their parents, in their homes during periods of a financial crisis 
and avoids the trauma of homelessness and the costs that comes with it 
to society, both immediate and long-term.

  3.  People with complex medical conditions, including substance use, 
        mental illness, and other physical health issues are not well 
        served in existing systems or interventions. We need increased 
        investments and a stronger alignment of social services, health 
        care, and housing.

    The opioid epidemic is at the epicenter of the most challenging 
situations around unsheltered homelessness. We desperately need to 
develop and invest in models to serve people who are actively using 
opioids. Models that promote easier access to housing and harm 
reduction principles can provide much needed options to bring people 
inside.

  4.  Our system to prevent and end homelessness for Veterans works. We 
        need to sustain that commitment and expand it to reach all 
        populations.

    Developing a system to end homelessness will require investment, 
aligned efforts across levels of government and private sector 
partners, and policy changes designed to improve access to housing 
outcomes for people who face the greatest challenges to housing now. A 
system to prevent and end homelessness that works for everyone cannot 
be its own island. As with the example of ending Veteran homelessness, 
it needs strong and deep connections to address the health and 
behavioral health care that contribute to and complicate people's 
housing challenges. The Federal Government must play a prominent role 
for it to be successful.
    All these solutions will require that we center the voices and 
experiences of people who have faced homelessness. They are the experts 
in what works.
    In these nearly 30 years of work on this issue, I have never 
stopped believing that in Minnesota and in this country, we can achieve 
the vision that all people have a safe place to call home; that 
children and youth need not sleep in cars one night and go to school 
the next day, but rather be home preparing for exams and play dates and 
their future; that we can live in a State and in a country without 
homelessness. This is a problem we know how to solve. It is not a 
question of can we but will we.
    During the pandemic, we have witnessed the life-saving work of 
shelters and outreach workers. And we also know that while shelters do 
save lives, housing is what ends homelessness. The resources that were 
invested to respond to the pandemic taught us all what was possible. We 
can prevent homelessness. We can bring people home. We can protect 
children from the trauma that homelessness brings. We can provide 
people the care they need and deserve. I believe this is the very 
moment to be bold, to build on what we just did together, to not go 
backward, to not take incremental steps that will only prolong our 
national housing crisis, but rather to make bold new investments and 
commitments that will ensure a more stable future for all of us.
    It is my hope that we continue to respond with the same level of 
urgency we have seen these last 2 \1/2\ years, recognizing homelessness 
as the public health emergency that it has always been. Recognizing 
housing not only as a social determinant of health but also a social 
determinant of educational achievement, workforce growth, and 
neighborhood, community, State, and national well-being.
    Thank you.
                                 ______
                                 
                   PREPARED STATEMENT OF JAMIE KIRSCH
                        Board Member, Journey On
                             July 19, 2022
    Good Afternoon, my name is Jamie Kirsch and I am a current Board 
Member of Journey On and an employee of the Rapid City Police 
Department where I serve as nonlaw enforcement in community engagement. 
I don't represent the Native community but I do represent a Native 
organization. Journey On selected me to testify today because of my 
special knowledge of its Street Outreach Program and my experience with 
the Federal grants processes in the area of houselessness. I was 
directly involved in establishing Journey On's Street Outreach Program, 
serve on the Black Hills Regional Homeless Coalition and am a member of 
the South Dakota Housing and Development Authority Policy and Advisory 
Committee.
    Journey On was incorporated as a nonprofit in 2018 by Founder and 
President Tracy Sigdestad who is a member of the Mohawk Tribe. In early 
2020, Journey On was focused on youth mentorship and substance abuse 
recovery programming in Rapid City's Native American community. 
Realizing the need for greater collaboration and coordination with 
Native led organizations after participating in its 2018-2020 
Collective Healing Initiative, the Rapid City Police Department (RCPD) 
approached Journey On to see if they would consider building capacity 
for a community-initiated response to Rapid City's growing houseless 
community.
    As part of RCPD's 2020 Community Based Crime Reduction Grant 
through the Bureau of Justice Administration, which was developed as a 
continuation of the Collective Healing Initiative, it was essential to 
address houselessness given that approximately 65 percent of the calls 
for service to RCPD were generated by the houseless community. Many of 
these calls for service required social service responses, not criminal 
justice responses, through violence and victimization very much follow 
this community. The high call volume related to the houseless community 
resulted in low morale among patrol officers because officers are not 
equipped with the tools needed to address the varied causes of 
houselessness or the resources needed to provide sustainable solutions. 
In short, these calls were creating burn out at the individual level 
and resource drain at the institutional level. Given these factors, 
RCPD felt Journey On was a much-needed partner for its post-CHI focus 
on public safety strategy.
    Over the next year-and-a-half, a core group of partners from 
Journey On, the City, RCPD and The University of South Dakota applied 
for a Housing and Urban Development Emergency Solutions Grant-Cares Act 
Funding to launch Journey On's Street Outreach Program. Journey On was 
successful in securing ESG-CV funding and until recently, this grant 
has funded over 75 percent of its outreach efforts. In January of 2021, 
the Mayor of Rapid City and the City Council approved a contract with 
Journey On to expand the role of Journey On in the City's emergency 
response strategy, funding three full-time positions dedicated to 
responding to calls for service and two City vans to conduct outreach 
in. This contract marked the first time City emergency services were 
handed over to a community organization; a point that cannot be 
overstated given its essential role in advancing Collective Healing 
Initiative priorities of allowing for greater roles for Native-led 
organizations in the city's power and resource infrastructure.
    Since early December 14th, 2021, Journey On has been responding to 
calls for service through 911 dispatch and has taken 4,877 calls for 
service involving the houseless community through July 9th of this 
year. The call types that Journey On responds to are welfare checks, 
intoxicated subjects, panhandling and other low-level calls. Journey On 
operates as part of a larger coresponse team that includes the Rapid 
City Police Departments Quality of Life Unit (a small team of 
ununiformed officers and nonlaw enforcement staff), the Rapid City Fire 
Departments Mobile Medic and Co-Response Coordinator, Native-led Great 
Plains Tribal Leaders Health Board (behavioral health support), 
Pennington County Health and Human Services and Volunteers of America--
Northern Rockies (for housing navigation and case management).
    Journey On methods of outreach engagement follow three main paths:

  1.  Journey On is dispatched as a coresponder serving Rapid City 
        through Pennington County Emergency Communications (the 911 
        system). We work under a contract with Rapid City and are 
        responsible for calls for service from the community to the 911 
        system in the areas of intoxicated persons, welfare checks, 
        unwanted persons, and public disturbances. In responding to 
        these calls for service we are helping to reduce the reliance 
        on law enforcement to respond to situations that are better 
        handled by community responses to community public health and 
        public safety challenges.

  2.  Journey On is accessible to the entire community through calls 
        for service to the Journey On telephone number. We maintain 
        internal dispatch operators handling the many calls to the 
        Journey On phone line each day. From these calls, outreach 
        teams are dispatched, resources are navigated, and solutions 
        are sought that serve our community in reducing violence and 
        victimization. All calls to the Journey On phone line that 
        require an outreach response by a Journey On outreach team are 
        coordinated with the 911 system to avoid the stacking of 
        multiple calls on any single outreach team.

  3.  Journey On conducts proactive outreach. We are out in the street 
        6 days per week seeking to support our relatives and assist our 
        coresponder partners. Most of our proactive outreach is 
        designed as early intervention work, identifying potential 
        needs for community responses, and preventing later calls for 
        service to the 911 system or the Journey On phone line. A small 
        percentage of our proactive outreach involves holding meetings 
        to share our model with community stakeholders, businesses, and 
        similarly focused service providers to ensure effective 
        collaboration and the broadest understanding of our mission and 
        available services.
    (Please see attachment 1 for a breakdown of the estimated cost 
savings to the City.)
    Currently, Journey On has 13 employees on its Street Outreach Team. 
All but one of these team members is Native American; all have lived 
experience with houselessness, the criminal justice system or 
addiction; most are from the North Rapid area, where the largest 
percentage of the Native American community resides. Each of Journey 
On's Street Outreach Team members are considered credible messengers 
and use a culture forward approach to service individuals and families 
in need. Team members provide community members with access to sage 
burning (or smudging), cultural music, and familiar ways of 
interacting. Journey On's Outreach Program has a plethora of community 
partners they can refer to who have Inipis, Talking Circles, and a host 
of other culturally relevant services to offer those who desire 
cultural as a cure or as solace from behavioral and developmental 
health disabilities. The lived experience and the culture-forward 
approach is what makes Journey On's Street Outreach Team so well-
positioned to respond to the houseless community.
    The Journey On Outreach Program is a human-to-human contact 
program, providing folks first with an opportunity to develop a trust-
based relationship with someone who can help them navigate the service 
system when they are willing and ready to make that choice. The model 
for the program was informed by Community Violence Intervention (CVI) 
work done by the Newark Community Street Team developed by Aqeela 
Sherrills that puts public safety in the public's hands. It is a 
community based public safety model. Sherrills was first invited to 
Rapid City as a technical assistance provider for the Collective 
Healing Initiative and has been providing technical assistance, 
networking and mentoring to RCPD and Journey On for over 2 years now. 
More can be learned about community safety partnerships that adopt this 
model, including in Los Angeles, CA, Newark, NJ, and Rapid City, SD, by 
reading the research reported submitted in support of this testimony in 
Attachment Three: ``Collective Healing and Community Safety 
Partnerships.''
    Most of Journey On's Board members (with the exception of two) are 
Native American, one of whom is a young person who once served on the 
Youth Advisory Board. The current Director of Operations, Toby 
McCloskey, is also Native American. Our Native American community 
members don't believe in the stigmas that come with the concept of 
homelessness and prefer the terms houselessness, houseless relatives. 
Journey On currently operates Monday through Saturday from 7:30 am to 
10:30 pm and is looking for ways to extend their work 24/7/365.
    Engaging the broader community and involving them in solutions was 
an essential step for Rapid City. Partnering with Journey On as a 
viable option for folks to call on to respond to issues involving the 
houseless community has improved
community and RCPD officer moral, it has proved a successful 
intervention for the houseless, and is becoming part of a successful 
national movement of community safety partnerships.
    Locally, through the partnership with Volunteers of America, 
Journey On, Rapid City Police Department, and The City of Rapid City, 
our community developed the ``We Connect Business Toolkit'' to guide 
community responses to many challenges presented by houselessness in 
Rapid City. The 29-page booklet focuses on educating members of our 
community about the houseless population, Native American culture, 
mental health challenges, appropriate responses, and many other topics. 
Included in the toolkit was a quick reference response guide, 
displaying who to call in what situations, and a window cling with a QR 
Code to direct folks on how to donate or get more involved. Since many 
of our calls involving the houseless community are generated by the 
business community, it was important that they see themselves as part 
of the solution and to know that they have tools that they can utilize. 
(Please see Attachment Two: ``We Connect Business Toolkit'').
    Journey On is also working on expanding its programs to include a 
Safe Passage program to guide and provide support for youth going to 
and from Rapid City's most vulnerable schools and a Youth Homeless 
Demonstration Project grant to support houseless community members who 
are under 24-years old. Both new programs are deeply rooted in the 
community safety partnership model working formally and collaboratively 
with both Native and non-Native community partners of LGBTQ family 
Connections Center, Wambli Ska, and Volunteers of America.
Key Challenges
    Working with the houseless community is very difficult and creates 
high burn out among outreach staff. Federal funding does not allow for 
staff to receive paid time off, mental health days, and provides no 
avenue for health care or retirement benefits. The 10 percent de 
minimus rate is far too low to accommodate the needed staffing 
resources to run a team effectively or to meet the administrative 
burden created by data tracking requirements of Federal grants. Federal 
grants also don't support important executive roles and other 
administrative staff needs, as Federal grants with reimbursement 
structures only pay for services rendered.
    Journey On struggles to offer competitive salaries to executive 
staff, especially when the organization also cannot provide benefits. 
The Federal grants that fund Journey On don't allow for team members to 
take advantage of training or professional development as they usually 
only pay for services rendered. The reimbursement-based nature of these 
Federal grants makes it very difficult for organizations--especially 
those that are small, minority led, and exist in rural or smaller urban 
settings--to secure Federal grants and maintain them. In Tribal, Native 
urban, and in rural setting--there are typically no corporate, or 
university connections like in larger urban settings. For programs like 
Journey On, the upfront investment dollars just aren't there.
    Very few of the local corporations or philanthropic organizations 
can invest the start-up money needed to support younger community 
organizations. The one local philanthropic organization that can fund 
larger amounts won't fund any organization that hasn't been a 
registered 501(c)3 for at least 5 years. And then, once you reach that 
threshold, the largest grant you can secure in the first year is 
$25,000, which isn't even enough to cover the cost of one full-time 
outreach position for Journey On. Lastly, while the HUD ESG-CV grant 
was the primary source of funding for Journey On over the last 2 years, 
that will no longer be the case because the CV dollars that have 
facilitated Journey On's successful start are gone. South Dakota will 
resume getting its traditional $630,000 to $640,000 per year for the 
entire State with a cap on grant amounts at $80,000 this year. This 
funding level is far below what Journey On secured to start the Street 
Outreach Program and is substantially less that what it needs to 
sustain its vital services to the community at-large. The greatest 
challenge to Journey On over the next several months will be capacity/
staff development, funding, and continued/responsible growth.
    Developing organizational and operational capacity for community-
based organizations like Journey On is incredibly difficult and time 
consuming. When Journey On agreed to develop a Street Outreach Program 
for Rapid City, they had one employee, no functioning Board members, 
and no sustainable revenue streams. Journey On did not have an employee 
handbook or any operational policies and protocols. Over the last 2 
years, a collective group of working board members have invested an 
incredible amount of time to develop capacity for Journey On. This is 
still very much a work-in-progress. Journey On is one of three local 
organizations working with the White House on the Community Violence 
Intervention Collaborative (CVIC). Through CVIC, Journey On, Wambli 
Ska, and I Am Legacy are receiving technical assistance and mini-grant 
support to grow their capacity. This initiative started at the 
beginning of 2022 and is set to end in December. CVIC has helped 
somewhat, but capacity building is a hands-on mentoring process that 
requires a great deal of resources. Like with any new business venture 
or innovative idea, the upfront financial and capacity investment is 
important, though, we don't often think of investing in innovation in 
our nonprofit/community sector quite like we do in the private sector. 
The White House CVIC initiative needs much more funding over a much 
longer period of time to support the types of local innovations it has 
set out to create and support.
    Community organization capacity building is just one piece of the 
equation--there are system-wide gaps that need to be addressed to truly 
reduce the need for emergency response/emergency room department visits 
and create to sustainable solutions for the houseless community. Some 
examples of gaps:

  1.  We have very few options for emergency housing. Volunteers of 
        America is able to help a few folks with emergency housing 
        vouchers but it is limited at best. According to the 2022 Point 
        in Time Count, there was a 30-40 percent increase in the amount 
        of houseless individuals/families in South Dakota. The total 
        number of unsheltered houseless individuals in our State is 
        342. Rapid City reported 35 percent (120) of that total, 
        whereas Sioux Falls reported 6 percent (20) of that total. The 
        overall number of houseless counted in the State was 1389. Just 
        Rapid City's portion of that was 31 percent (458) and Sioux 
        Falls was 29 percent (407). For reference, the population size 
        of Rapid City is 74,703 according to the 2020 census and Sioux 
        Falls reports a population size of 192,517--that is more than 
        2.5x the population size of Rapid City. This communicates a 
        clear sheltering gap in West River, South Dakota communities. 
        Additionally, for the 2021-2022 school year, the Rapid City 
        Area Schools McKinney Vento program identified 760 youth 
        enrolled in the RCAS school district that did not have homes. 
        Traditionally, West River Communities secure only 6 percent of 
        the Federal funding coming to the State of South Dakota to 
        address homelessness. There are many barriers to accessing this 
        funding. One such barrier is that the cost of administering 
        this funding is sometimes greater than the overall awarded 
        amount to an agency.

  2.  It is our understanding that the Federal Government has 
        disinvested in transitional housing. While we understand the 
        housing first model, some folks are not ready to go straight 
        into permanent housing--even supported permanent housing from 
        the street. Folks who are not used to living in a home on their 
        own need to re-learn (or learn for the first time) how to care 
        for their home, they need to create new social networks, and 
        they need to learn new routines and methods to comply with 
        rules. To achieve any of these individually, it is important 
        for folks to have structure and daily mentorship. When those in 
        need of these services are scattered across several different 
        housing structures across town it can be nearly impossible to 
        keep up with the supports needed for success.

  3.  Affordable housing is nonexistent in Rapid City. Rapid City is 
        3,000 affordable housing units short of what it needs to serve 
        those who need homes. The current waiting list for the South 
        Dakota Housing and Development Authority's rehousing programs 
        is 180-people long and Pennington County Housing has maintained 
        a waitlist of 3,200 people for years. The majority of those 
        placed into SDHDA housing programs are single female led 
        households (66 percent), with 65 percent reporting a 
        disability. In Rapid City it is nearly impossible to 
        incentivize developers to get involved in affordable housing 
        projects. Market rate apartments are going at such a premium 
        and developing in the Black Hills is cost-heavy. There are very 
        few Federal incentives that developers can take advantage of to 
        develop enough inventory to address the affordable housing 
        needs. The result is extremely long wait lists that provide no 
        practical solutions for most of our houseless community 
        members.

  4.  Houseless prevention is an important component of the spectrum of 
        houseless services. It is far more cost effective to keep 
        individuals housed than it is to respond them once they become 
        houseless. Helping folks remain housed prevents youth from 
        being exposed to this form of trauma and the ongoing impacts it 
        has on a young person into their adult lives.

  5.  The Point In Time Count does not allow communities, especially 
        Tribal communities in Western South Dakota, to capture those 
        who are housing insecure settings. More, the PIT Count 
        certainly does not allow us to capture houselessness in the way 
        that our Native American community members experience it. In 
        Rapid City, only 15 percent of those who were identified during 
        the 2022 PIT Count in South Dakota were considered chronically 
        displaced as defined by a report of homeless for 3 years or 
        more. Most of our houseless community is living in hotel or 
        slum housing from week to week, are couch surfing or are 
        doubled up. Many of those living in our Tribal areas don't have 
        access to any form of emergency shelter and are living 
        sometimes 20 people to a one-bedroom home. Some of these homes 
        are not fit for human habitation, having no roof or siding to 
        keep it safe from the elements. In Tribal communities some 
        locations used as housing don't have plumbing, running water, 
        electricity, or trash collection.

  6.  Once a person makes the choice to address their addiction, it can 
        sometimes take up to 6 weeks to get individuals in for a drug 
        and alcohol assessment, which means folks are, in most cases, 
        living on the street trying to stay sober while waiting for 
        their assessment. As you can imagine, we lose quite a few 
        people to this gap. Additionally, we have very few options for 
        local addiction recovery programming. Most options are several 
        hours away and many have no transportation to get to these 
        programs. Very few recovery programs will accept children, 
        meaning we have to separate families or folks choose not to go 
        to recovery. We also have no options for Native-led or culture 
        forward inpatient addiction recovery programming.

  7.  Medicine management is key to helping folks stabilize both 
        medically and mentally. It is incredibly difficult to address 
        housing insecurity if someone is in a mental health crisis or 
        isn't managing their diabetes well. In Texas, they have a 
        program designed to address high utilizers of 911 and 35 
        percent of their clients are simply just needing help managing 
        their medications. Having the ability to address this need 
        through a coresponse or crisis response effort would have a 
        significant impact on reducing emergency responses or 
        presentations to emergency departments.

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
        
        
         RESPONSES TO WRITTEN QUESTIONS OF CHAIR SMITH
                         FROM ANN OLIVA

Q.1. In your testimony, you highlighted that Congress could 
consider two requests made by HUD related to the Continuum of 
Care programs: first regarding the statutory cap on planning 
dollars and second allowing for a 2-year Notice of Funding 
Opportunity. Could you please elaborate on why these changes 
would be helpful?
    Second, are there other similar, small but meaningful 
changes to the Homeless Assistance Grants programs that would 
be helpful?

A.1. The backbone of the Nation's homelessness crisis response 
system and permanent supportive housing stock are HUD's 
Homeless Assistance Grants programs. Congress should continue 
to invest in these core programs and provide increased and 
sustained funding for efforts to address unsheltered, rural, 
and Tribal homelessness. In addition, the Alliance urges 
Congress to consider two requests made by HUD in their Fiscal 
Year 2023 budget request:

  1.  To increase the statutory cap on planning dollars for 
        Continuums of Care (CoCs), and

  2.  To allow HUD to issue a 2-year Continuum of Care Notice 
        of Funding Opportunity.

    These fairly straightforward changes will help CoCs in 
several ways.
    The statutory cap on planning funds for CoCs was set by 
Congress in 2009 as part of the reauthorization of the 
McKinney-Vento Homeless Assistance Act and was appropriate at 
the time. However, as funding for homelessness activities has 
diversified over the past 10 years--including significant 
investments made as part of the Nation's COVID-19 response--the 
planning funds made available for CoCs are no longer adequate 
to meet the need. CoCs are often the local subject matter 
experts on homelessness and are needed as key partners for a 
variety of funded programs and organizations, including Public 
Housing Agencies, HOME participating jurisdictions and other 
State/local formula funding recipients. Increasing the cap 
would allow for more robust information sharing, planning and 
collaboration between partners, and facilitate better outcomes.
    Because CoCs have responsibilities related to the planning 
and operation of much more complex systems than were in place 
when McKinney-Vento was reauthorized in 2009, they also need 
more time to be thoughtful and intentional. The statutory and 
administrative requirements for the annual CoC competition are 
enormous and time consuming for both HUD staff and CoC leaders/
recipients. Moving to a 2-year renewal cycle (while still 
allowing for newly appropriated funds to be awarded annually) 
would allow CoCs to properly plan and conduct more robust 
collaboration rather than preparing for what can often feel 
like back-to-back competitions for renewal funding.
    The Alliance also urges Congress to make small but 
meaningful changes that will allow Tribes to more easily 
participate in the CoC program. The CoC program requires 
structure and knowledge that many Tribes do not yet possess 
because they have not been historically eligible for the 
program. Therefore, capacity building and other formative 
activities should be eligible as part of the process of 
engaging with Tribes.
    Also see the response below on providing for COLA increases 
for frontline staff.

Q.2 How should policymakers balance the need to collect data 
and appropriately steward taxpayer funding in Federal programs, 
while also ensuring that small, often under-resourced nonprofit 
organizations can carry out good and important work in their 
communities?

A.2. This is an important question. We must be able to both 
sustain nonprofits currently doing important work to end 
homelessness and create new partnerships and opportunities for 
smaller nonprofits--especially those in underserved 
communities.
    The Alliance's surveys of CoCs show consistent reports of 
employee shortages in homeless service and housing 
organizations. In a May 2021 survey, 72 percent of CoCs 
reported shortages in frontline shelter staff; 69 percent had a 
shortage of case managers; and 62 percent had shortages in 
street outreach workers. The organizations reported the cause 
of the challenges as stress, exhaustion, and low morale; 
illness; family responsibilities; and fear of COVID. It should 
also be noted that homeless services staff typically receive 
relatively low salaries for very difficult and challenging 
work. A recent study found that the average shelter staff 
member earned $24,000 per year, and the average permanent 
supportive housing staff member earned $36,000 per year. Low 
pay may be another reason that it is difficult to keep staff.
    Staff shortages are not the only capacity issues for CoCs 
and the organizations that they fund. With the challenges of 
working through a period of constant change as COVID numbers 
rise and fall, guidance changes, multiple new initiatives are 
introduced, immediate results are expected, and new 
partnerships must be formed--years of these compounded hurdles 
have worn down many program staff. Although they appreciate and 
welcome the resources and share the sense of urgency, in many 
localities they are overwhelmed.
    The following offer concrete examples of actions that 
Congress could support to help maintain a healthy balance 
between accountability and the desire to engage more partners 
in the work to end homelessness at the community level.

    Fund critical programs at scale. Nonprofit service 
        providers are increasingly asked to do more with the 
        same or fewer resources, and tight funding allocations 
        make it hard for newer organizations to access funds or 
        even build the capacity needed to access Federal funds. 
        This situation could be alleviated by funding the 
        needed housing and services resources (like HUD's 
        McKinney-Vento programs and Housing Choice Vouchers) at 
        a scale that better meets the need, and could include 
        incentives to partner with smaller, community-based 
        nonprofits that are located in underserved areas.

    Include regular cost of living increases for 
        operations and supportive services staff. The CoC 
        program includes annual funding adjustments for rental 
        assistance, leasing and operations line items--all tied 
        to any increases in the annual Fair Market Rents. 
        However, there is no such corresponding increase for 
        supportive services or HMIS--line items that primarily 
        pay for staffing. Therefore, funded programs have not 
        gotten increases for staffing in many years. We urge 
        Congress to provide for COLA increases for these 
        critical staff positions to allow for more equitable 
        pay and minimize staff turnover.

    Capacity building activities and planning funds to 
        engage new partners. Funds for capacity building 
        activities, especially for underserved, rural and 
        Tribal areas, would help build capacity over time and 
        encourage meaningful partnerships between CoCs and 
        smaller community-based nonprofit organizations.

    Evaluate the impact of regulatory and statutory 
        waivers provided in COVID-19 response programs and make 
        effective waivers permanent. Many of the waivers and 
        alternative requirements implemented through the 
        programs funded as part of the COVID-19 response 
        provided flexibility to programs and funding recipients 
        so that programs were easier to operate and could be 
        more nimble in rapidly changing environments. Congress 
        should evaluate the efficacy of the waivers provided, 
        and make those waivers that increased the speed at 
        which assistance was provided and promoted equitable 
        outcomes permanent.

    Fund permanent eviction/homelessness prevention 
        programs. In 2009 due to the Great Recession and again 
        in 2020 due to COVID-19, communities were forced to 
        create new eviction/homelessness prevention programs--
        like the Emergency Rental Assistance Program--from the 
        ground up. Congress should consider a permanent program 
        dedicated to this purpose that could be scaled up when 
        needed, which would decrease planning time and be able 
        to respond to need quickly in the event of another 
        crisis.

Q.3. What are the hallmarks of successful conversion projects? 
How should these projects be incentivized?

A.3. The Alliance commissioned Mary Tingerthal, the longtime 
former Minnesota Housing Commissioner, to conduct independent 
reviews of conversion projects in several jurisdictions. Ms. 
Tingerthal now works as an independent consultant and continues 
to promote the creation and preservation of affordable housing 
as a board chairman of the National Housing Trust and a board 
trustee of the National Community Investment Fund, among other 
things. Ms. Tingerthal's reviews are included on the Alliance's 
website: https://endhomelessness.org/resource/hotels-to-
housing-case-studies/.
    Following are several hallmarks of successful conversion 
projects, as indicated in Ms. Tingerthal's case studies:

    Flexibility in program design allows for a wide 
        range of communities to meet the goal of providing 
        housing for people experiencing homelessness that best 
        reflects their local needs.

    Local public entities are needed to step up with 
        significant financial and technical resources to match 
        the resources provided by the State in order to make 
        projects work.

    Imposition of serious deadlines for the use of 
        Federal funds can be very effective at overcoming 
        typical barriers and in creating thousands of units of 
        housing in a short period of time.

    Availability of technical assistance to aspiring 
        applicants is critically important.

    Streamlining the bureaucratic process can be very 
        helpful. For example, ``the State statute establishing 
        (California's) Homekey contains a specific provision 
        which provides that any project receiving a financial 
        award from the CRF for uses under Homekey was deemed to 
        be consistent and in conformity with any applicable 
        local plan, standard, or requirement, and allowed as a 
        permitted use, within the zone in which the structure 
        is located, and shall not be subject to a conditional 
        use permit, discretionary permit, or to any other 
        discretionary reviews or approvals.''

    Partnering with Housing Authorities is strongly 
        encouraged.

    With respect to incentivizing conversions, best practices 
that were identified include:

    ``Operating support and reserves are important to 
        the overall strategy of converting hotels/motels, 
        vacant property, or commercial office/retail into 
        housing and successfully positioning the sites in the 
        broader community and service portfolio.'' Operating 
        funding continues to be a big question mark for 
        California's Homekey. Projects are able to access State 
        funding for the initial 2 to 3 years. Afterwards, 
        communities will have to identify new sources of 
        funding.

    ``Accessing traditional funding sources such as tax 
        credits, bonds, and gap financing is critically 
        important to encouraging public entities and developers 
        to become involved in supportive housing.''

    ``Access to vouchers, preferably to project-based 
        vouchers, but also to tenant vouchers, helps to 
        solidify rent payments and support the project.''

    A robust, existing network of community-based 
        housing nonprofits that are ready to identify potential 
        properties, and to develop, own and manage new housing 
        is invaluable.

Q.4. How can the Federal Government forge better connections 
between Medicaid and our housing and homelessness systems?

A.4. Providing health care and behavioral health services for 
people experiencing homelessness and housing instability--as 
well as those living in supportive and affordable housing--is 
important to the work of ending homelessness. However, 
connecting these systems remains a challenge in many 
jurisdictions. The Alliance recommends the following actions 
that would help support and strengthen these connections at the 
State and local levels:

    Continue to enhance Federal Medicaid matching funds 
        for home and community-based services (HCBS) that 
        strengthen programs to help address the complex needs 
        of people experiencing homelessness. States also need 
        Federal assistance to build capacity to integrate 
        systems that can respond
        adequately to varying needs. Working across systems can 
        be
        challenging and locales will need support in building 
        multiple partnerships to navigate programs like HCBS, 
        housing and other connected interventions.

    Extend the Money Follows the Person (MFP) program 
        beyond 2023.

    Provide continued flexibility in 1,115 
        demonstration waivers to allow States to test new ways 
        of providing care.

    Incentivize States that are contracting with 
        Medicaid managed care organizations (MCOs) to require 
        coordination between health plans and community-based 
        organizations/housing organizations.

    Provide Federal grants to facilitate data-sharing 
        between housing, health, and other cross-sector 
        partners: Data-sharing can help organizations identify 
        if they have shared clients or if there are high-need 
        communities who are not well served. Technical 
        assistance and resources are needed to support these 
        types of exchanges.

    Create a funded liaison position at the Federal 
        level to manage the work of building relationships with 
        new partners--someone who can speak the lingo of other 
        sectors, and who can formalize relationships and roles 
        between partners.

    Promote/revisit the Innovation Accelerator Program 
        (IAP). Specifically, review how much the State 
        Medicaid-Housing Agency Toolkit from the IAP has been 
        utilized and identify successful components to further 
        build out.
                                ------                                


       RESPONSES TO WRITTEN QUESTIONS OF SENATOR WARNOCK
                         FROM ANN OLIVA

Q.1. Can you quantify the effect the eviction moratorium had on 
preventing homelessness during the pandemic? Are there data you 
can point to that support your answer?

A.1. Eviction does not necessarily directly precede 
homelessness. In many cases, households facing eviction access 
all the resources and relationships they can in order to avoid 
homelessness for as long as possible. The pandemic may have 
changed this dynamic, but not enough research has been 
completed yet to understand exactly how the eviction moratorium 
or other pandemic relief measures impacted homelessness.
    Princeton's Eviction Lab routinely provides data and 
analysis on evictions in select cities and nationwide. In 
particular, this article assesses eviction prevention policies 
at the State level during the pandemic. This analysis looks at 
trends after the CDC eviction moratorium expired.
    While much research about the impact of the eviction 
moratorium on homelessness is underway, we would urge 
consideration of a paper called Feedback Dynamics of the Low-
Income Rental Housing Market: Exploring Policy Responses to 
COVID-19, research carried out by the University of Nevada at 
Las Vegas, Washington University in St. Louis, and Case Western 
Reserve University. A summary is available on the National Low 
Income Housing Coalition's website: Research Finds Eviction 
Moratorium and ERA Reduced Evictions/National Low Income 
Housing Coalition (nlihc.org).
    This research (https://arxiv.org/abs/2206.12647?context=cs) 
ultimately estimated that the Federal moratorium had reduced 
evictions by 51 percent prior to its expiration at the end of 
July 2021. Notwithstanding the moratorium's success, arrearages 
continued to accumulate, households continued to overcrowd, and 
homelessness increased--reminding policymakers that a 
moratorium on evictions can be a very useful tool, but it is 
only one of many tools necessary to address the twined crises 
of affordable housing and homelessness, whether in an 
extraordinary pandemic or simply in an economy which 
historically has failed to produce millions of units of 
affordable housing and in which rents consistently exceed 
wages.

Q.2. You noted in your testimony that the Point-in-Time Count 
was interrupted in 2021 due to the pandemic, and, as a result, 
the number of people experiencing homelessness is unclear. When 
can we expect more up-to-date data to help us better understand 
the issue at hand?

A.2. As noted in your question, the Point-in-Time Count that 
typically takes place in January (and is the only enumeration 
that includes people who are unsheltered) was not fully 
conducted in 2021 due to the pandemic. As a result, the number 
of people currently experiencing homelessness is not clear.
    The Alliance conducted several surveys of the Nation's 
Continuums of Care (CoCs) during the pandemic, and respondents 
reported the following:

    the number of shelter beds significantly decreased 
        as shelters followed Centers for Disease Control and 
        Prevention (CDC) guidance to ``decompress;''

    most CoCs believed that unsheltered homelessness 
        had increased; and

    though many people from shelters and unsheltered 
        locations were placed in motel/hotel rooms for 
        quarantine and isolation, those incremental beds did 
        not make up for those lost through decompression.

    Continuums of Care were required by HUD to conduct a full 
Point-in-Time count this past January. We expect that the 2022 
national report will be available by the end of the calendar 
year, although individual communities are releasing their data 
publicly.
    HUD also recently released the longitudinal data from 2019 
and 2020, called the Annual Homeless Assessment Report: part 2. 
That data can be found here: https://www.huduser.gov/portal/
datasets/ahar/2020-ahar-part-2-pit-estimates-of-homelessness-
in-the-us.html.
                                ------                                


         RESPONSES TO WRITTEN QUESTIONS OF CHAIR SMITH
                       FROM KATHRYN MONET

Q.1. In your testimony, you shared that the COVID-19 era 
flexibilities put in place with respect to caseworkers under 
the HUD-VASH program have been very helpful. Can you please 
elaborate on why extending these flexibilities would be 
helpful?

A.1. Flexibility has been integral in improving access to case 
management and supports for veterans. For example, improved 
telehealth capabilities have revolutionized the way case 
managers can interact with their clients when transportation is 
limited for the individual or the distance from medical center 
is excessive. These flexibilities have allowed VA to provide 
services and benefits to rural veterans more efficiently, 
particularly in communities facing staffing shortfalls due to 
location or access issues. These pair with the flexibilities 
for the other homeless programs like the Supportive Services 
for Veteran Families (SSVF) program's ability to cover a 
broader range of telecommunication devices and transportation 
options, expanding access to these telehealth services through 
our service providers as well. SSVF also has had the ability to 
provide for housing navigators which have been integral in 
placing veterans quickly from the rapid rehousing of 
individuals in hotels and motels, and to get them HUD-VASH 
Vouchers if eligible and eventually into permanent housing. In 
addition, Grant and Per Diem (GPD) providers in some 
communities have received approval to offer short-term case 
management to veterans in need who are enrolled in or recently 
graduated from HUD-VASH.

Q.2. A bipartisan succession of Presidents have focused on 
ending homelessness among veterans, and they've had 
considerable success. From 2010 to 2019, homelessness among 
veterans' was cut in half, as a result of funding commitments, 
better coordination of services, and a commitment to effective 
models like Housing First. Despite this progress, there's more 
we must do to address veterans' homelessness. What do you 
believe Congress should be doing keep up the progress made over 
the last decade?

A.2. Congress must deal with short-term crises and look to 
issues with long-term lens and recognize that many of those 
housed during that period of considerable progress are still 
utilizing these homeless programs. Additional short-term crisis 
response needs include a higher reimbursement rate than $60.06 
a day for Grant and Per Diem providers to house a provide 
services for a veteran, low-barrier options, with longer term 
investments in program maintenance until the services are no 
longer needed. Congress should look proactively at deep 
investments in affordable housing and incentivization of both 
developers and landlords to participate. We must maintain 
services to those currently supported by the programs on the 
books, and then expand capacity by enhancing those programs for 
currently ineligible veterans or creating entire new programs 
to provide them these wraparound services. VA has systems that 
assist over 107,000 veterans a year with their homeless 
prevention and transitional housing programs. To continue to 
make progress in reduction of veteran homelessness we are going 
to have to expand the eligibility of current programs to the 
remaining subsets of veterans or envision entirely new programs 
that will prevent and assist those veterans that are currently 
homeless. To truly service all veterans that vision would even 
need to include removing barriers for more subpopulations based 
on discharge status, race, gender, and age.

Q.3. How can we apply the lessons learned in addressing 
veterans' homelessness to addressing homelessness in other 
communities?

A.3. Key lessons learned in efforts to end veteran homelessness 
include the importance of collaboration at the Federal and 
local levels especially with continuity of outcome reporting 
and interdepartmental systems integration; the importance of 
leadership in galvanizing a community or Nation around a shared 
goal like the administration's House America campaign and VA's 
recent pledge to house an additional 38,000 veterans by the end 
of the year; and the importance of ensuring that key components 
of the response system were adequately resourced with Federal 
funding. NCHV supports $3.6 billion in overall funding for the 
U.S. Department of Housing and Urban Development's Homeless 
Assistance Grants and $32.1 billion for Tenant Based Rental 
Assistance. Making sure that affordable housing is available 
for individuals, paired with access to services remains a 
priority. Where with VA, the housing is provided mostly in the 
private sector but it is paired with world class health care 
from the VHA.
                                ------                                


        RESPONSE TO WRITTEN QUESTION OF SENATOR WARNOCK
                       FROM KATHRYN MONET

Q.1. You noted in your testimony, ``According to HUD, the 
average rental price has increased by 4 percent annually over 
the last decade and a staggering 66 percent between 2010 and 
2020.'' Are there any immediate solutions to help veterans and 
low-income renters so that we can prevent fewer families from 
falling into homelessness? Do you believe offering a tax credit 
to rent burdened individuals would help keep more service 
members and their families housed?

A.1. Additional PHA (Public Housing Authority) and landlord 
incentives for current programs to augment their uptake of 
vouchers as participation is by choice. Ramp up the contracting 
out of case management so we can start addressing VA's capacity 
issue. VA is a healthcare system, not a housing provider, if we 
contract out most of the other housing-based programs it may 
make sense to better integrate the service providers case 
management capabilities per congressional intent.
    Yes, a tax credit would assist in stemming a good number of 
individuals from becoming homeless and those at risk, yet it 
will not have the same effect for those who have already, are 
in the process of losing their homes, and only for failure to 
pay their landlord or mortgage.
                                ------                                


         RESPONSES TO WRITTEN QUESTIONS OF CHAIR SMITH
                     FROM CATHY TEN BROEKE

Q.1. Thanks to the Federal eviction moratorium, millions of 
individuals and families were able to stay safely in their 
homes and not fall into homelessness or housing instability at 
the height of the COVID-19 pandemic. How critical was the 
eviction moratorium for Minnesota's work in responding to 
homelessness?

A.1. We have no doubt both the Federal and State eviction 
moratoriums not only prevented mass displacement and 
homelessness but saved lives. In addition to the Federal 
moratorium, Governor Tim Walz also issued Executive Order 20-14 
on March 14, 2020, which suspended all evictions, writs of 
recovery, and tenancy terminations during the peacetime 
emergency. On June 5, 2020, Executive Order 20-73 was issued, 
which clarified the application of
Executive Order 20-14. Then in early summer of 2021, the State 
legislature and the Governor agreed to an ``offramp'' that 
protected households from having an eviction filed against them 
while they had a pending application to RentHelpMN (Minnesota's 
rental assistance program funded by ERA1 and ERA2). The 
protections were phased over the course of the next year and 
ended completely on June 1, 2022. Perhaps the clearest (and 
most troubling) evidence of the effectiveness of the eviction 
moratoriums and emergency rental assistance is now that the 
State and Federal moratoriums have ended and Federal funding is 
not available, there has been a steady increase in eviction 
filings throughout the State, with some areas exceeding 
prepandemic levels.

Q.2. This Subcommittee also oversees public transportation 
policy, and thinking about housing and transit together is 
important for understanding both issues. For transit to be 
effective, it needs to reach people's homes and jobs, 
healthcare facilities and grocery stores. And for affordable 
housing to be truly affordable, especially in rural areas, it 
needs to be accessible by transit. I support Senator Ossoff's 
bill to create a joint HUD and FTA grant program that would 
support the mutual development of housing and transit, and I 
think this would be an excellent tool to increase the supply of 
housing. How do you see the connections between transit and 
homelessness?

A.2. We see the connection of housing and transit as vital and 
would be very interested in new resources that are intentional 
about connecting these services. Minnesota Housing has a long-
standing principle that ``Housing development must be part of a 
comprehensive community development effort that links housing, 
jobs, transportation, recreation, retail services, schools, and 
social and other services'' and that ``Housing must be 
developed near regional and interregional transportation 
corridors and transit ways.'' A good example of this priority 
is the opportunity for applicants seeking Housing Tax Credits, 
which are Minnesota's largest source of capital to preserve and 
develop affordable housing, to gain significant points in our 
State's Qualified Allocation Plan by prioritizing transit and 
walkability. Additionally, for prospective supportive housing 
developers the agency provides resources and information, which 
strongly recommends that transportation is either provided or 
easily accessed.

Q.3. In Minnesota, housing for Native and Tribal communities is 
very limited, whether in urban areas or on Tribal lands. A 
recent HUD study found that overcrowded housing was a real 
challenge for Native communities, and often resulted from 
individuals having nowhere else to go for housing--and is a 
phenomenon closely related to homelessness. To me, this is an 
example of how solutions for Native and Tribal communities need 
to be culturally competent and in tune with the unique needs 
and challenges in these communities. How has overcrowding in 
homes in Native and Tribal communities been addressed?

A.3. We wanted to hear the perspective of our Tribal partners 
and consulted with several representatives on this question. 
Here were their responses:

        ``I believe that being culturally responsive to housing 
        on our lands is a need (not only our lands but across 
        the United States). Dollars are needed to build more 
        housing as more and more of our people want to come 
        back home to live and be a part of the community.''

        ``Housing on Fond Du Lac reservation has been difficult 
        due to the drug epidemic, COVID with turning houses for 
        new rental due to short staffing and material costs. 
        The problems our reservation has seen before the 
        epidemic and pandemic was the background of individuals 
        with felony convictions. A person coming out of prison 
        with serious convictions will never be eligible for 
        housing even after serving their time or being 
        rehabilitated. These are the crowded homes.''

        ``The funding for Federal Indian housing programs has 
        been virtually frozen for decades, in violation of the 
        promises made in treaties Tribes signed with the 
        Federal Government in the 19th century. When Tribes 
        ceded millions and millions and millions of acres in 
        exchange for all that land that was worth a fortune, 
        the Tribes got forever to have all their health care 
        taken care of, all their education needs taken care of, 
        all their infrastructure taken care of. We always see--
        the trickle-down effect. By the time the actual dollars 
        get to the Tribe, it's such a small pot of money. It's 
        like, jeez, why did we go through all of these 
        administrative hoops? And we end up with this. But for 
        now, we're doing what Indian country always does during 
        a crisis--taking care of our own with what resources we 
        have.''

        ``This is a generational problem. Homelessness is 
        byproduct of much bigger problems. Our relatives have 
        to live with multiple generations in one unit because 
        there are no other options. There is a massive shortage 
        of housing for Native American Indians. Not only 
        because we don't have the means to pay for it due to 
        the poverty that most of our relatives endure but that 
        most of the land is no longer ours and it makes it 
        difficult to even find property to build on.''

    While there is more to do, there are a few things Minnesota 
Housing has done and will continue to build upon. The agency 
regularly consults and works with the 11 Tribal nations located 
within Minnesota's borders to better understand needs, adapt 
policy and funding to be responsive, and increase capacity to 
preserve and build housing in Tribal communities. Development 
funds are regularly awarded to Tribal nations through our 
annual Consolidated Request for Proposal process. An Indian 
set-aside was created in our State appropriated Economic 
Development and Housing Challenge program, which provides a set 
amount of funds every 2 years available exclusively for the 11 
Tribal nations in Minnesota. The agency is also working with 
the legislature to amend enabling
statute to clarify Tribal nation eligibility for all agency 
appropriated programs.
                                ------                                


          RESPONSE TO WRITTEN QUESTION OF CHAIR SMITH
                       FROM JAMIE KIRSCH

Q.1. Can you share some examples of why programs that are 
culturally relevant, and those that have been developed by and 
for Native people are important?

A.1. It is impossible to talk about why programs that are 
culturally relevant are important without discussing the 
historical trauma that has occurred in the Black Hills area, 
and across our Nation over centuries. This acknowledgement of 
history is critical and fundamental to any community which 
decides to employ strategies geared toward community safety 
partnerships. Without this acknowledgement, the value of 
culture in addressing systemic issues like houselessness, 
community violence and cycles of poverty is overlooked and 
minimized, and therefore, less effective. In an effort to 
acknowledge our history, I will quickly lay out the context 
within which we attempt to solve the issues of houselessness, 
violence and poverty in the Rapid City area.
    Generally, there exists a deep distrust between the Native 
and Non-Native communities throughout Rapid City. The Fort 
Laramie Treaty of 1868 established the Great Sioux Reservation 
and designated the Black Hills as ``unceded Indian Territory'' 
for the exclusive use of Native peoples. But when gold was 
discovered in the Black Hills, the United States reneged on the 
agreement, redrawing the boundaries of the treaty and confining 
the Sioux people--traditionally nomadic hunters--to a farming 
lifestyle on the reservation. It was a blatant abrogation that 
has been the center of legal debate ever since.
    In June 1874 General George Custer led an expedition to 
search for gold in the Black Hills. By 1875, some 800 miners 
and fortune-seekers had flooded into the Hills to pan for gold 
on land that had been reserved by the treaty exclusively for 
the Indians. Lakota and Cheyenne warriors responded by 
attacking the prospectors, which led the United States to pass 
a decree confining all Lakotas, Cheyennes, and Arapahos to the 
reservation under threat of military action. That decree not 
only violated the Fort Laramie Treaty of 1868, but it flew in 
the face of Tribal ideas of freedom and threatened to destroy 
the way of life for the Northern Plains Indians.
    The conflict set the stage for the famous ``Battle of the 
Little Bighorn'' in 1876 where Custer made his last stand and 
the Sioux Nations were victorious--their last military victory. 
The following year, Congress passed an Act that redrew the 
lines of the Fort Laramie Treaty, seizing the Black Hills, 
forcing the Indians onto permanent reservations and allowing 
the United States to build roads through reservation lands. In 
the years that followed, the Great Sioux Reservation continued 
to lose territory as White settlers encroached on their land 
and the expansion of the United States marched steadily on.
    In 1896, not long after the redrafting of the Great Sioux 
Reservation territorial lines, the Bureau of Indian Affairs 
(BIA) made the first purchase of land for the Rapid City Indian 
School, which by 1906, grew to 1,200 acres. By the 1920s, 
enrollment grew to as many as 340 students with enrollment 
periods lasting 3 years. Like other on- and off-reservation 
boarding schools built in the late nineteenth century, the 
Rapid City Indian School was designed
explicitly to destroy Indian Tribes by separating children from 
their families and cultures, while training them to live as 
laborers or farmers. While treaties between the Federal 
Government and Indian Tribes had created reservations across 
the Midwest and western United States, Congress and the Bureau 
of Indian Affairs were determined to eliminate the reservations 
and end treaty obligations as quickly as possible, by 
destroying Tribes as cultural and political entities. One means 
used to attack Tribes was to break up Tribal landholdings on 
the reservations into small, individual parcels, and also allow 
non-Native families to purchase them, through the policy of 
allotment.
    The other strategy intended to destroy Indian Tribes was to 
remove Indian children from their parents, and raise them 
instead in Government-run boarding schools, with the intention 
that the children would lose their Tribal identities, and 
assimilate and disappear into the general population. Kept from 
contact with their families for extended periods of time in a 
harshly regimented boarding school environment, children were 
forbidden from using their native languages, and the practice 
of their customs and religions. The disciplinarian and matrons 
could beat children, and before the BIA banned the practice, 
students could be confined to cells or cages. Children 
sometimes ran away from the school, but were seldom able to 
avoid being captured and returned. Most runaways tried to 
return home, and were quickly caught by reservation police. 
Some children suffered horrific injuries in their attempts to 
escape the school. Many school attendees suffered death at the 
hands of tuberculosis, small pox, and the Spanish flu. The 
location of the remains of children who died at the Rapid City 
Indian School is often unclear, for the school kept minimal 
records of student deaths, rarely recorded causes of death, and 
made no effort to record the disposition of students' remains.
    This backdrop serves as the context within which we attempt 
to address issues that disproportionately affect the Native 
American community--issues such as houselessness, higher rates 
of violent crime and overrepresentation in the juvenile and 
criminal justice system. Rightly so, many community 
conversations focused on engaging Native American buy-in hinge 
on the historical fact that the land that Rapid City resides 
upon was unfairly taken from the Native American community. The 
experiences of those family members who spent time in boarding 
schools is still fresh and the many atrocities that have been 
suffered as a result of ``assimilation'' has scarred 
generations of Native American families. Today, Native 
Americans continue to suffer at the hands of blatant racism 
across all facets of the community.
    Traditionally, the North Rapid community is largely 
distrustful of city government and local law enforcement, as 
well as traditional service provider systems. There is a sense 
that many of the services offered are not supportive of Native 
American community interests or integrate cultural competency 
into the design of their programming. There is also a sense 
that Native American voices are not represented at the table 
when key decisions are being made or when strategies are being 
developed. For the above reasons, which are relevant both 
historically and currently, it is important that we be 
intentional about including the Native experience in the design 
of programs, particularly those that are meant to serve Native 
populations.
    There are a multitude of innovative models to pull from 
across the country such as in Los Angeles, CA, and Newark, NJ, 
where credible messenger programs have been successfully 
employed to reduce violent and gang-related crime, rates of 
houselessness and to address systemic issues in the criminal 
justice system. And it is from these models and through 
acknowledging the history of our community--both good and bad--
that we have been able to employ our own Native-led and Native-
informed initiatives to address complicated issues in Rapid 
City. Journey On is Native-led and staffed organization 
currently partnering with the City and other community 
organizations to provide a culture-forward and social service-
oriented response to the houseless community. Outreach workers 
all have lived experience with houselessness and the criminal 
justice and/or service systems. All staff members have lived in 
our most violent neighborhoods and are considered credible by 
those they conduct outreach with. Journey On keeps cultural 
medicines with their outreach teams such as sage, cedar, 
tobacco ties, and traditional music for those who choose that 
method of healing. Journey On also works with a network of 
Native-led and non-Native led agencies to support the needs 
that houseless community members have (i.e., food, housing, 
cultural healing ceremonies, mental health--both Native and 
non-Native options, addiction recovery, etc.).
    Marginalized communities can successfully direct their own 
public safety outcomes. Native-led, or minority-led strategies 
are effective because they include the perspectives of those 
most affected by the issues they are trying to address. They 
have first-hand knowledge, as a Native person or a minority, of 
what it is like to navigate these systems and have developed 
their own methods on how to be successful in these systems. 
They understand why families don't access things like free 
after-school programs and they understand the family networks 
that exist to keep these neighborhoods and communities alive.
    The credible messenger movement has emerged based on a core 
belief that communities have within them transformative 
resources to lift up those who are struggling with 
houselessness, are justice-involved and trying to overcome 
cycles of poverty and violence in a comprehensive and positive 
way. Initiatives that are led by communities themselves boast 
results such as: Increased family engagement with programs and 
services, reduction in re-arrests, violations, and antisocial 
behavior, increased compliance with court mandates, improved 
relationships between system stakeholders and community members 
and increased community capacity to support system-involved 
families. The credible messenger movement is emerging based on 
a holistic, comprehensive approach to justice that transforms 
and improves individual lives, rearranges the relationship 
between communities and the justice system, and empowers 
neighborhoods to use the resources they have within to maintain 
public safety. Using this people-forward perspective, the 
credible messenger approach seeks to build trust and inspire 
change from within communities so that they can feel positive 
about possibilities rather than facing a future of frustration. 
From the same background and speaking the same language, 
credible messengers are able to break through to these 
individuals and form powerful, transformative, personal 
relationships. With the development of trust over time, they 
provide communities a living example of hope and opportunity 
and are able to equip them with new tools, or reconnect them 
with traditional Native tools, to manage their emotions and 
behavior and thus change their lives.
              Additional Material Supplied for the Record

   LETTER SUBMITTED BY CATHOLIC CHARITIES OF ST. PAUL AND MINNEAPOLIS

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               CONGRESSIONAL RESEARCH SERVICE MEMORANDUM

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