Ending Homelessness from a Socio-economic Perspective

by Richard R. Troxell

Livable Incomes Coordinator

National Coalition for the Homeless

News Flash; If you think that we can just put homeless people back into a broken socio-economic system …think again.

As we look at the socio-economic condition of homelessness, we recognize that we can view homelessness into two major categories, those who can work and those who cannot work.  

Hard working people are falling out of our work force. They are ending up homeless on our streets.  We see these people as broken individuals standing on our street corners, painfully visible and asking for help; some call it begging, others know it as panhandling.  In any event, they are no longer seen as members of a family that they once were.  Now, she lives in a shelter and he stands on a street corner…broken and pleading for help from his fellow human beings. 

We respond as best we know how.  We, “the community,” brush these individuals off, detoxify, them, teach them the art of resume writing and interview talking and place them into jobs and point them to the general housing market.  Well done!  Bravo!  Everyone pitched in to help.  The entire community rallied behind our needy…our homeless.  But what has really occurred?  Who knows?  Without follow-up evaluation one year later, we won’t learn if the minimum wage job or even the $10.00 per hour job into which they were placed was or wasn’t enough to sustain them through the economic bumps ahead.  However, we do know that the minimum dollar amount needed to sustain them can be simply stated with the phrase: “Living Wage.”   A “Living Wage” is the base amount necessary for a person to afford basic food, clothing and shelter…no more no less.  This is the same vision and understanding embraced by the U.S. Congress following the Crash of 1929 and the subsequent Great Depression in the 1930s.  Then, in 1938, in response to the wage problem, the U.S. Congress created the Federal Minimum Wage.  This worked fairly well until the 1980s when because the wage was not indexed to the cost of living, or anything for that matter, our nation’s housing rents outstripped the wage being earned.  So now we must “reset” the wage just like a clock and index the wage to the local cost of housing throughout the entire United States.  Therefore, that is what we have done.  Using existing Government Guidelines, we have devised a single national formula that ensures that if a person works 40 hours in a week, they will be able to afford basic food, clothing, and shelter (including utilities).  In other words, a roof over their heads…other than a bridge. 

But in further examining the idea of simply putting people back into the work force, we must explore what that looks like. Minimum wage workers work 5-6 days a week, fifty-two weeks a year.  They are only assured (hopefully) of a day off to celebrate Thanksgiving and Christmas. Additionally, he rigorous demands of daily work are ever accelerating and continue to expand exponentially.  Think about the technological advances in the last ten years alone that range from desk top computers to laptops, cell phones, camera phones, Blackberries and i-phones with Apps.  Think of the world as a merry-go-round full of a dozen kids spinning like crazy and holding on for dear life.  As the merry-go-round accelerates, regardless of the strength of their white knuckle grips, some can’t hold on and they go flying off as the speed continues to increase.  It’s the same in the work place.  Minimum wage workers don’t get two weeks paid vacation.  They don’t get vacation time, personal time or even the luxury of getting sick.  Minimum wage workers are subject to endless stress.  As the stress demands increase, so does the pressure on the individual worker.  They must show up day in and day out regardless of their problems at home, their energy levels, or routine bouts of depression.  The instant they say, “I can’t go in tomorrow, I’m calling in sick,” they get replaced. They spin off the merry go-round of life and end up homeless on the streets of America.

It makes little or no difference what kind of worker you’ve been.  To the employer, what matters is that you show up day in and day out…no matter what.  Failure to show up every single day will get the minimum wage worker the instant boot.  Someone else is waiting in the wings who is desperate to fill the worker’s vacant slot.  Clearly, the employer must have workers present everyday to accomplish what needs to be done to advance the business.

But what if we start “thinking outside the box with both employer and employee’s welfare in mind?  Example:  Employer with financial means purchases production equipment beyond the means of the individual workers such as a $5,000 hot dog stand.  The employer leases the use of the equipment to an individual worker or workers.  The worker operates the equipment on a daily basis as one would expect.  However, to address the employee needs for time-off, another (swing) worker is tapped to come to work and fill in the vacant times so that the equipment is used to its fullest. This is referred to as “flex” work.  In this fashion, both the employer and the employee attain what they need and want: job stability and economic growth.  This is one simple example of the kind of change and flexibility needed to enhance our chances of successfully ending homelessness for workers. 

For those who cannot work, the U.S. Congress established a government based financial support system, Supplemental Security Income, SSI, designed to provide a small monthly monetary stipend.  This is presently set at $674 nationwide.

However, ours is a nation of thousands of local economies ranging from poverty in Clay, West Virginia to the opulence of New York City. And yet, the current approach is to award a single uniform dollar amount to every individual with disabilities no matter where they live throughout America. Clearly, this “one size fits all” approach is an illogical response that has the result of leaving millions of recipients susceptible to the economic forces of homelessness.

This solution is simple.  We must index this stipend to the local cost of housing throughout the United States.  As with the Universal Living Wage, we can use the Housing and Urban Development, HUD, Section 8 Fair Market Rents to ensure that we properly index the SSI stipend to local economies across America.  This will ensure that whether someone is working forty hours in a week or struggling with disabilities, they will be able to afford the basics of life: food, clothing, shelter (utilities included) and

have access to the emergency room.  And finally, if others are working by utilizing  flex work days of an unlimited nature, they will be able to re-enter the work force in a calm, productive, stress free manner, that provides them a living and the employer the work performance required for a successful business. 

We are committed to creating the systemic and attitudinal changes necessary to prevent and end homelessness.

 God’s Speed,

Richard, Sylvia, Colleen and the Folks at HTH

See the pdf copy of Richard’s recent writings in response to the City of Austin considering more “quality of life Ordinances” in the downtown area-
 http://www.housethehomeless.org/10_2009_QofLifeOrdinResponse.pdf

Hours of work ranged from 2-3 hours per day to 40+ per week
 
Q: Do you want to work?
yes; 472
no: 48
6 non-responses
89.7% want to work.

Of those responding, 90.8% want to work.
 
Q: What is keeping you from working?
Ranked in order of highest importance:

health issues 62
can’t find work 60
disabled 56
no identification 50
economics/ low wages 21
“me” 18
transportation 17
criminal history/legal 16
need tools/clothes 10
lack experience/education 7
retired/age 6
weather 5
day care 4
new to area 4
personal problems 4
time 2
undocumented 2
ethical concerns 1

Note: Several people cited more than one barrier.
 
Q: Would you work a 40 hour week job if you were sure it would pay you enough for basic food, clothing, and shelter? 
yes: 468
no: 48
non-responses: 10
89% would work a 40 hour week for living wages.

Of those responding, 90.7% would work 40 hours for a living wage.
 
Q: Do you get disability benefits?
yes: 100
no: 426
non-responses: 0
19% receive disability benefits.
Q: Do you have photo ID?
yes: 360
no: 164
non-responses: 2
31.2% need photo identification.

Of those responding, 31.3% need photo ID.
 
Q: What is keeping you from getting ID?
Ranked in order of highest importance.

1. need ID documents to get photo ID 39
2. costs 38
3. application pending 8
3. no reason “me” 8
3. criminal record 8
4. don’t want to miss work 2
5. hopelessness 1
5. time 1
5. health issue (brain injured) 1
 
Q: Are you a Veteran?
yes: 121
no: 401
non-responses: 4
23% are Veterans.

Of those responding, 23.2% are Veterans.
 
Note: 399 signed the survey with either their first name, last name, or both. This was optional.
Note: Statistical significance of the survey: 
The Austin Area Homeless Task Force counted 4,000 people experiencing homelessness in the Austin Area in 2007. With 526 homeless people surveyed, 13.1% of the population was sampled.
If the population of people experiencing homelessness is 6,000 then 8.76% of the population was sampled.

Richard R. Troxell, President of House the Homeless, Inc has declared these to be “Stunning results with national implications!” He went on to say that “Although homeless, over 38% of of these people are working at some point during the week. This means that the Puritan Work Ethic is in tact. Furthemore, it is now clear that what is lacking for many of them to end their homelessness is a Living Wage Job.” 
Mr Troxell is also the National Chairman of the Universal Living Wage Campaign.

http://www.housethehomeless.org/Criminalization_HomelessCycleComplete.pdf

 LET’S GET TO WORK INITIATIVE SYNOPSIS

A multi-organizational Work Collaborative of Businesses, Faith Based organizations and Non-profits in the City of Austin, TX.   A 20 person model.

 There are many individuals, our neighbors, who for various reasons (many economic) find themselves experiencing homelessness.  Many of these individuals welcome any opportunity to learn new skills, attain work and earn a self-supporting wage. Traditional avenues of job training and placement are overwhelmed with the current demand for their assistance serving only one in ten applicants at best. The Texas Work Force Commission readily acknowledges that it can only begin to serve the most prepared and capable job seekers. The “Let’s Get to Work Initiative” wishes to address the wasted human potential evidenced by our burgeoning shelters and people standing on our street corners asking for help and work. Statistical surveys conducted by the City of Houston, the City of Austin and two by the House The Homeless organization, all indicate a high desire to work by this population and to work at jobs that pay fair, living wages. We recognize that these individuals are the least qualified and the least capable of entering a traditional re-entry work program. This is a special population with special needs.

 The current response to homelessness is to house people temporarily in shelters and then move them into “transitional housing” where they are provided a case worker whose job it is to stabilize their condition, help them attain their independence, and return them to the regular housing and work market.  Unfortunately, the Federal Minimum Wage (currently at $7.25 per hour) will not afford them basic rental housing and so they are unable to “transition out.” Compounding the problem; there has been a tremendous resistance by neighborhoods to the creation and placement of any transitional housing.  The result has been a Continuum of Care system that is incapable of serving the very purpose for which it was intended.

 The “Let’s Get to Work Initiative” is intended to solve these problems.  After assessing skill levels, applicants in shelters and in transitional living situations are offered an opportunity to earn a work certificate in about 20 areas of employment (i.e. solar panel installer or phlebotomist, etc.).  By coordinating with local employers, certificate earners and other system graduates, working through a Program Coordinator, are placed in a job. Because the expected level of earning will be at, or just above the minimum wage level, a wage subsidy will be provided the individual.  This will raise their wage to a Living Wage. Program supports will continue up to 18 months or until full self-sufficiency/ economic stability is achieved.

COMMUNITY SPONSORSHIP

 This problem is being played out in Austin and cities all across America. The problem of homelessness requires that all community members become community partners. This involves community activists, businesses and faith based organizations. Just as important as it is for businesses to partner with us and employ folks with long work layoffs, we need members of our faith-based community to involve their congregations.  We envision this to be a somewhat costly, long term investment to end homelessness for individuals.  We are seeking a personalized and individualized relationship between one Program Participant, the Program Manager and a Community Sponsoring Organization.  In this scenario, we see a one-on-one relationship where all three entities share their stories, their hopes, their fears and their progress along the way.
                                               LET’S GET TO WORK INITIATIVE            

                                                                     BUDGET

20 Person Model

COSTS:

Program Manager $35,000 add $5,000 admin costs=$40,000.

Living Wage Supports (Difference between the FMW and the Universal Living Wage) $982 per month

Transitional Housing Costs: $1800. per person-one time cost (deposit, 1st and last month’s rent

Misc.: One time cost per Individual: $200.00 i.e. steel toed shoes, hard hat, etc.

Education:  $54 per credit hour   i.e. $2000 to become Fire fighter

Preparedness Training for Workers: ie Literacy, job applications, resume prep, budgeting etc.

IN KIND SAVINGS:

Housing

Case Management

PROGRAM BENEFITS:

Ends Economic Homelessness for each success story

Creates a Ready, Willing, Able and Stable Work Force

Involves the Business Community of Austin in the solution of ending homelessness

Strategically connects the Faith Based Community with those in need in their community

Frees bollixed up valuable transitional housing

Completes the COA Continuum of Care process

Provides opportunity, a pathway, and hope, for people experiencing homelessness

HTH president Richard R Troxell has received two awards. Locally here in Austin, Texas, Richard was presented with the coveted Fred Butler Community Leader Award of 2009. This award honors a community leader who exhibits integrity, trust, vision and passion to champion and develop community collaboration, improving the lives of people in the Austin community.

On the state level, Richard has been awarded the Community Service Award of 2009 from the Texas Homeless Network. This prestigious award was presented to the Baylor University School of Social Work in 2008.

We know you will all join us in congratulating Richard on this well-deserved recognition of his many projects and tireless efforts to end homelessness.

http://www.caction.org/