Earlier this month, the Washington Post reported on a study conducted by researchers at the University of British Columbia in collaboration with a Vancouver-based charity, Foundations for Social Change, on a direct cash transfer (DCT) pilot program. In this program, 50 people experiencing homelessness in Vancouver were given a lump sum of $7,500 Canadian dollars in 2016. In the year that researchers followed recipients, they found that DCT not only led to savings, as individuals spent fewer days in shelter, but it also provided recipients with the freedom to make their own decisions, gave them a sense of empowerment, and reduced anxiety and impulsivity.
This approach to ending homelessness may sound familiar. In 2021, LMM piloted its own DCT program where individuals in the shelter with confirmed destinations (usually to friends or family) were given $600 cash, agreeing that they would not return to shelter for at least 60 days. Initially, the effort focused on deconcentrating congregate settings in response to COVID-19, however, our data also suggests this is an efficient and cost-effective solution to rapidly exit people from homelessness into permanent housing destinations. Program funds were available for 18 months and during this time LMM and partners at NEOCH and Norm Herr Women's Center served approximately 350 individuals with this housing intervention. In total, 66% of recipients of this DCT never returned to shelter and of those who did return, only 8% returned within 60 days.
A special thank you to the Community West Foundation and the Cuyahoga County Office of Homeless Services for their financial support of this pilot project. LMM is actively seeking additional dollars to expand this effort.
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