What Is the Current Situation?

WHAT IS HOMELESSNESS?

WHAT CAUSES HOMELESSNESS?

DEMOGRAPHIC PROFILE

CROSS-CUTTING ISSUES & IMPACTS OF HOMELESSNESS

BARRIERS TO OVERCOMING HOMELESSNESS

A. What is Homelessness?

Homelessness is a complex issue that cuts across a multitude of arenas including housing, basic needs, health, workforce development, education, and public safety. The U.S. Department of Housing and Urban Development (HUD) defines a homeless person as one whose primary nighttime residence is:

• A place not meant for human habitation, such as cars, parks, sidewalks and abandoned buildings, on the street
  
• An emergency shelter
  
• Transitional or supportive housing for persons who originally came from the streets or emergency shelters
  
• Persons meeting the above definitions who are spending a short time (30 consecutive days or less) in a hospital or other institution
  
• Persons who are being evicted within one week from a private dwelling unit and no subsequent residence has been identified and the person lacks the resources and support networks needed to obtain housing or their housing has been condemned by housing officials and is no longer considered meat for human habitation.
  
• Persons who are being discharged within a week from an institution in which they have been residents for more than 30 consecutive days, and no subsequent residence has been identified and they lack the resources and supportive networks needed to obtain access to housing.
  

HUD's definition of homelessness is limited in that it does not include situations where people are living in low-cost weekly motel rooms, generally with no food storage or cooking facilities. Another situation that HUD does not consider "homeless" occurs when people move from house to house, "couch-surfing" among friends and families. While these options may provide a safe roof over one's head, people relying on them face the same issues of instability that people in shelters or on the street face. Those issues can affect other areas of people's lives, such as employment, adequate nutrition, and the ability to address more long-term issues. Weekly motel rooms can be particularly damaging to the struggle to escape homelessness because between 75% and 100% of one's income may be paid toward "rent," creating a cycle of poverty and an inability to save money toward a security deposit for permanent housing.

In short, a person is in a homeless situation when he or she "lacks a fixed, regular, and adequate nighttime residence" (McKinney-Vento Homeless Assistance Act of 1987, codified in U.S Code, Title 42, Chapter 119, Subchapter 1, Section 11302(a)).

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B. What Causes Homelessness?

For most people, an accumulation of problems leads to homelessness. Individuals living independently in the community become "at risk" of homelessness when any part of their support network fails. The breaking point may be loss of job, a major medical crisis, or divorce. Many homeless women have been driven from their home by domestic violence. Children become homeless when their parents or guardians fall into a homeless situation. Many homeless youth are classified as "runaways," they have run away from their living situations. Others are forced to leave home because their parents or caregivers no longer want to care for them. Among homeless single men and women, alcoholism, substance abuse, mental illness and unemployment are key contributing factors. Elderly people are at risk of becoming homeless because of limited income and/or health problems.

Although many people who are very poor never become homeless, extreme poverty is the universal condition of persons who are homeless, and poverty is one reason people cannot maintain housing. Other vulnerabilities characterize many homeless people, such as low levels of educational achievement, limited job skills, exhaustion of social supports or complete lack of family, problems with alcohol or drug use, severe mental illness, childhood and adult experiences of violence and victimization, and incarceration as a child or adult.

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FACTORS CONTRIBUTING TO HOMELESSNESS

Numerous situations and vulnerabilities can result in a person's becoming homeless. For some people, homelessness is simply the result of not earning enough money to be able to afford housing. For others, homelessness is a chronic life situation fueled by substance abuse or untreated mental illness. For many, the factor that originally causes homelessness is exacerbated over time by other factors. For example, an individual may initially become homeless due to a job loss and eviction, but over time, develop health problems, which then hinders him or her from escaping chronic homelessness.

Causes of Homelessness:

• Lack of Affordable Housing
  
• Economic Factors
  
• Domestic Violence
  
• Mental Illness
  
• Substance Abuse
  
• Sudden Changes
  

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LACK OF AFFORDABLE HOUSING

While housing costs in the Austin/Travis County area have increased 82% since 1990 ("Austin's Apartment Crunch," January, 2000), the median household income has increased by only 42% ("As city tries to manage growth, housing costs go through the roof," April, 1999). Austin has the highest rental housing costs in Texas, the 45th most expensive apartment market in the country ("Austin's future?," February, 2000), and the third most expensive market in the South ("Austin rents rip through the roof," July, 1999). Chart 1 shows the Fair Market rents for Travis County, compared to Texas as a whole.

Chart 1. Fair Market Rents by Number of Bedrooms, 2001

According to HUD, affordable housing is defined as housing for which a person pays no more than 30% of his or her income. In order to afford a one-bedroom apartment at fair market rent in Austin, an individual must earn a minimum of $10.25 per hour in full-time employment (www.UniversalLivingWage.com). Nearly 64,000 Austin households pay more than 30% of their monthly income for housing. Of these, over 31,000 pay more than 50% of their income for housing. Of the 31,000, 91% earn less than 50% of median family income.

Apartment occupancy rates continue to hover near 98%. Therefore renters with less-than-perfect credit and employment history may be at a disadvantage because many apartment complexes require that renters earn three times the monthly rent, have a two-year employment and rental history, and no criminal record ("Austin's Apartment Crunch," January, 2000). Some renters utilize hard-to-come-by Section 8 vouchers and certificates. Often, they encounter landlords who are unwilling to accept the vouchers as payment when they can receive higher rent payments through the open market. Even developers who have held contracts with HUD to accept Section 8 vouchers as payment are choosing not to renew their 20-year contracts but rather to rent their formerly subsidized units at fair market value. The possible ramifications include increased competition for fewer units and more people unable to find units that will accept Section 8 as payment. Check survey for Section 8 units.

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ECONOMIC FACTORS

One of the key factors contributing to homelessness in Austin and Travis County is poverty, caused by the inability of individuals to obtain jobs that pay a living wage, or an earning level that supports self-sufficiency without reliance on public and private subsidies. Although Austin has enjoyed tremendous economic growth in recent years, the benefits of this growth have not reached all sectors of the economy. Individuals with limited educational background, and job skills, are often unable to obtain jobs that pay enough to support themselves and their families. The following are some economic trends negatively impacting the ability of people to support themselves in the Austin area:

• Austin is one of the fastest growing cities in the country, having experienced a 26% growth in population between 1990 and 1999.
  
• Approximately 13% of Travis County residents live below the poverty level ("Again, families seek housing help Federal rent assistance program reopens in Austin to long lines," April, 2001).
  
• By September 1999, the top 20% of wage earners in Austin were paid 770% of the wages earned by the lowest 20% of workers (Austin Equity Commission, 2001).
  
• While the percentage of jobs paying wages below the poverty level declined between 1990 and1999, the absolute number increased by 16.4% (Austin Equity Commission, 2001).
  
• Computer-related industries were the second largest source of new employment in Austin in the 1990's. The disparities in salaries between computer related industries and other top employment generators in the area are dramatic, as shown in Table 1.
  
  

  INDUSTRY	# of JOBS CREATED	AVERAGE MONTHLY WAGES
  Restaurant	18,300	$934
  Computers, Peripherals, Software	11,949	$5,273
  Temporary Services	11,100	$399
  Source: The Austin Equity Commission, 2001 (pp. 14-15)

• Highly publicized layoffs of more than 12,000 people since the beginning of 2001 and business closures in the high tech industry have had a ripple effect across all segments of the economy. For the first time in many years, unemployment has been climbing steadily, which leaves more people vulnerable to becoming homeless.
  
• Twenty percent of workers have average incomes of less than $14,500 a year in the five-county central Texas area ("Americans earn more than ever," September, 2000).
  

Although wages have increased in the past few years, the increase has not been large been enough to make an impact on homelessness. Even with the increase in the federal minimum wage, the real value of the minimum wage in 1997 was 18.1% less than in 1979 (Mishel, Bernstein, and Schmitt, 1999). Loss of bargaining power by labor unions, devaluation of money, fewer unskilled production jobs, and an increase in the service job sector have all been factors in lowering wages and increasing temporary and low-paying jobs (Mishel, Bernstein, and Schmitt, 1999).

These larger societal factors are further exacerbated for homeless individuals who are among the lowest wage earners of any group. Data from an Austin homeless program show that homeless individuals and families earn an average of $683 per month, or 59% of the federal poverty income level for a family of three (Passages HUD Report, 2001). The jobs they had, however, paid an amount insufficient to sustain them in permanent housing. Appendix F contains a table showing what it costs to live in Austin for varying family sizes. Many cities across the U.S are considering passing legislation for a living wage, ensuring that individuals who work at least 40 hours per week will have to pay no more than 30% of their income for housing.

One primary reason homeless persons are unable to obtain jobs that pay a living wage is because of their limited education and job experience. Data collected from 10 communities in Texas show that 42% of homeless persons did not graduate from high school, and 21% had less than a ninth grade education (Samuels, 1999). Adults in homeless families have lower educational levels than single homeless adults, as shown in Chart 2, below. A national study of homelessness in ten cities found that 79% of homeless parents were unemployed at the time of the survey and that one in four (28%) had never worked (Homes for the Homeless, 1998).

Chart 2. Clients and U.S. Adults 1996: Educational Attainment of Homeless Persons in Families, Single Homeless

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DOMESTIC VIOLENCE

The experience of domestic violence often has long-lasting physical and emotional effects on survivors of the violence. It also hinders individuals from escaping their situation by keeping the abused person dependent on the abuser. In many cases, abusers will block their victims' attempts to seek employment or education; therefore, people experiencing domestic violence are more likely to be living below the federal poverty income level and unemployed at the time they seek services (Homes for the Homeless, 1998). Other barriers facing homeless persons who have been battered include lack of financial resources, poor self-advocacy skills, limited work histories, and underdeveloped life skills.

Many homeless sub-populations are affected by domestic violence, including men, elderly persons, and children. Women and youth however, are especially affected. A study of homeless mothers in Austin revealed that 83.5% experienced family violence at some time in their lives (Texas Homeless Network, 1999).

Figure 1. EXPERIENCE OF DOMESTIC VIOLENCE AMONG HOMELESS MOTHERS IN AUSTIN

Women may fall into to the immediate homelessness caused by fleeing their home to escape abuse. Battered women who live in poverty are often forced to choose between abusive relationships and homelessness. In Austin, a study of homeless families found that 26% identified domestic violence as the reason they were homeless (Texas Homeless Network, 1999).

The University of Texas at Austin's School of Nursing, and LifeWorks' Street Outreach Project (SOP) surveyed Austin's homeless youth between the ages of 16 and 20, and half of the respondents (50.8%) reported a history of sexual abuse. As shown on Figure 2, nearly one-third of homeless youth cite physical or sexual abuse as their reason for leaving home (Unpublished study by Texas Homeless Network, 1999).

An estimated 20 to 25% of the homeless population has experienced severe and often disabling mental illness such as schizophrenia and the major affective disorders (Koegel et al, 1996). Nearly one-half of those with mental illness also have addiction disorders (categorized as "dual diagnoses") (Rosenheck, et al, n.d.).

Mentally ill homeless people often have less contact with family and friends due to relationship difficulties, are likely to remain homeless longer, face more barriers to employment, have poorer physical health, and greater legal problems.

National Alliance to End Homelessness 2000

Persons with mental illness often need to live with families, or in group homes to receive adequate care. When such social support systems do not exist, persons with mental illness are vulnerable to homelessness. Furthermore, because persons with mental illness are unable to use many of the services that are available to other homeless individuals, and because services specific to persons with mental illness are limited, persons with mental illness tend to experience homelessness for longer periods of time.

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SUBSTANCE ABUSE DISORDERS

As many as one-half of all homeless persons have had diagnosable substance abuse disorders at some point in their lives. The majority of these (almost one half of homeless single adults) abuse alcohol while approximately one-third abuse drugs (Koegel, et al, 1996). Rates of substance abuse disorders are particularly high among single adults, especially among single adult men. Single adult homeless men have twice the rate of substance abuse disorders than single adult homeless women, while single adult homeless women have twice the rate of substance abuse than homeless mothers (Rosenheck, et al, n.d.).

The link between substance abuse and homelessness is not entirely clear. Many people who are addicted never become homeless, indicating that at least to some extent, an availability of support and other resources may prevent homelessness. People who are poor and addicted are at increased risk of homelessness because of the impacts of their addiction on their ability to maintain employment and to pay housing costs. Once a person with substance abuse problems becomes homeless, he or she often has a difficult time exiting homelessness. The physical and emotional stress of living on the streets causes many to fall further into their addiction.

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SUDDEN CHANGES

Unexpected and sudden situations can often lead to homelessness. Following are some examples of situations that can throw an individual or family into homelessness:

• Divorce or separation
  
• Lay-off from work
  
• Lack of transportation
  
• Disability
  
• Death
  
• Eviction
  
• Medical crisis
  
• Unforeseen expenses
  
• Loss of subsidies, such as Temporary Assistance to Needy Families (TANF)
  
• Incarceration or arrest

Outlined above are some of the major factors that contribute to homelessness. It is important to note however, that there is not a direct cause and effect relationship between these factors and homelessness. Every person's situation is unique.

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C. Demographic Profile

Approximately 3,977 people are homeless in the Austin/Travis County area on any given day. Of this 3,977, 33% are single adult men, 17% are single adult women, 43% families, and 7% are unaccompanied youth (Austin/Travis County 2001 Annual Survey of Homeless Service Providers, March 2001). These numbers reflect estimated counts of homeless persons receiving homeless services and those that are turned away from services because of lack of capacity. It does not include the "hidden" homeless such as people who are living doubled-up with family members or friends.

Austin's Homeless Demographic Profile

• 3,977 homeless persons on any given day
  
• 43% are individuals in families
  
• 33% are single, adult male
  
• 17% are single, adult female
  
• 7% are unaccompanied youth
  

Figure 2 below shows the breakdown of the homeless population in Austin/Travis County, by an individual's demographic characteristics. Individuals may fall into more than one of the demographic categories listed on the graph, and each person is identified by all of his or her demographic characteristic. For example, a person may be a veteran with a serious mental illness, and so he or she is counted in both classifications.

Figure 2. Characteristics of Homeless Population in Austin

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SUB-POPULATIONS

SINGLE ADULTS

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FAMILIES WITH CHILDREN

Figure 3. Age Distribution of Persons in Homeless Families in Austin (including children)

Children in homeless situations can be affected by homelessness in various ways. Homeless children experience more health problems, more developmental delays, more anxiety, depression, behavior problems, and lower educational achievement than children who are housed (Shinn and Weitzman, 1996). Homelessness can also contribute to the break-up of families, for example when children living with relatives or friends, or when fathers not allowed to stay with their families at family shelters.

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HOMELESS YOUTH

• 281 unaccompanied youth are homeless in Austin on any given day (Austin/Travis County 2001 Annual Survey of Homeless Service Providers, March 2001).
  
• Many homeless youth and young adults turn to prostitution and criminal activity in order to survive on the streets, placing them at high risk for victimization, HIV/AIDS, sexually transmitted diseases, unwanted pregnancies, and violence. Studies across the U.S show that homeless youth and young adults are vulnerable to depression, suicide, prostitution, drug use, and disease (Robertson, 1996).
  
• Many youth become homeless when they have "aged-out" of the foster care system, meaning that they have reached 18 years of age and are no longer considered part of the foster care system.

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ELDERLY PERSONS

• Homeless persons between the ages of 50 and 65 years often fall between the cracks in the service system - they do not receive Medicare or SSI benefits.
  
• As the population of people over 65 increases, the homeless population within this cohort can be expected to increase as well.
  
• Older homeless people are more at risk for exploitation by homeless 'predator' populations due to a need for increased support and increased dependence.
  
• Elderly persons are at increased risk for poor physical and mental health, and without a strong social support system, they are vulnerable to becoming homeless (Rosenheck, et al, n.d).
  
• Elderly women are especially vulnerable to homelessness since they tend to live longer than their spouses, have limited job histories and thereby have no resources beyond Social Security income.
  
• For many elderly people, homelessness occurs for the first time when their source of financial support is gone and/or caregiver dies (Rosenheck, et al, n.d.).

There are several other sub-populations of homeless individuals, for example, veterans, individuals that have recently been released from institutional facilities (correctional facilities, mental health institutions, etc.) and rural homeless individuals. At the present time, there is no local data on these sub-populations.

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D. Cross-Cutting Issues and Impacts on Homelessness Individuals

Being homeless has many impacts on various aspects of life. Employment, health and education are three areas that are greatly affected by homelessness.

IMPACT ON EMPLOYMENT

Many homeless persons living in homeless shelters are full-time wage earners. According to a survey of 30 U.S cities, one in five homeless persons is employed (U.S Conference of Mayors, 1998). In Texas, 41% of homeless persons reported having a job (Samuels, 1999). Homeless individuals may have no place to eat, shower, wash clothes, or sleep. Getting to work or getting children fed and to school becomes a complicated endeavor. In spite of these obstacles however, many people do manage to maintain employment.

Homeless persons in a shelter often have difficulty finding employment because they have to use the shelter address as their place of residence. This may discourage employers from hiring the person. In cases where homeless persons do find jobs, they often are not paid adequately or do not receive any benefits. Many homeless persons find "non-standard" work, work that is temporary, part of a day labor program, or part-time. This type of work does not allow for stability, especially as it relates to housing. The chart below illustrates the type of employment that homeless individuals surveyed in 10 Texas cities hold:

Figure 4. Employment Status of Homeless Persons in Texas, 1999

Unemployment and low wages impact not only homeless individuals but also the entire community. The Austin Equity Commission conducted a study of Austin's economic disparity. The study found that when low-income wage earners are unable to meet their cost of living, dependence on public assistance, crime, family break ups, school drop out rates and substance abuse all increase. Income inequality also divides the community, keeping it from achieving its maximum potential. The Austin Equity Commission wrote:

[Income inequality] can destroy a sense of community and therefore make it difficult for communities to develop the trust and social capital needed to enable people to work together to solve problems. There is a danger that growing inequality will cause more affluent people to have less interest in the conditions of low-income [people]&. Similarly, low-income people are likely to believe that the rich do not deserve their rewards and acquire wealth by exploiting others& (Austin Equity Commission, 2001)

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IMPACT ON HEALTH

Homeless individuals are susceptible to the same illnesses as housed individuals, but with no place to recover from their illnesses or to treat an injury, their health problems are prolonged and exacerbated. Unfortunately, because many homeless individuals do not have access to adequate nutrition, adequate hygiene or first aid, their health is very often compromised.

Many homeless persons are unable to receive adequate health care when they are on the streets. Except for a few chronic illnesses (obesity, strokes and cancer), homeless individuals suffer from chronic illnesses at a much higher rate than housed individuals. Furthermore, treating conditions such as tuberculosis, HIV/AIDS, diabetes and hypertension, which require constant treatment, become difficult for people who are not in a stable living environment. Chart 3 shows the rates of chronic health problems in homeless mothers and mothers who are housed:

Chart 3. Rates of Chronic Health Problems in Homeless Mothers

Homeless individuals also experience multiple health problems at any given moment. They are vulnerable to frostbite, ulcers and upper respiratory infections. Furthermore, homeless individuals usually experience trauma at a much higher rate than housed individuals because they are often exposed to violent conditions (rape, beatings, and muggings, etc).

Access to health care is quite limited for homeless individuals. Most homeless individuals do not have health insurance and therefore do not even have access to the most basic health care. In Austin, there is one health clinic specifically designated for the homeless (City-funded). The clinic reported serving 1,007 unduplicated clients over the course of 2000. The City of Austin is in the process of finalizing designs for a Downtown Shelter, Resource Center and Health Clinic. This facility is scheduled to be completed in July 2003. Once this facility is operational, homeless individuals will have greater access to health care, and referrals to hospitals.

Like homeless adults, homeless children also suffer from more health problems than housed children. A national study of health status among homeless children revealed the following:

• 38% of children in a homeless shelter have asthma, the highest prevalence rate of any group of children in the United States.
  
• Middle ear infection prevalence amongst homeless children is 50% higher than the national average.
  
• 61% of homeless children were under-vaccinated
  (From Redlener and Johnson, 1999).
  

Furthermore, because homelessness often precludes good nutrition, homeless children often experience physical and mental developmental delays.

As discussed in the "Causes of Homelessness" section, mental illness and substance abuse often co-occur with homelessness. Determining cause and effect is not as important as accurately assessing situations and adequately providing services that people need, including mental health care, substance abuse treatment, and housing."

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IMPACT ON EDUCATION OF HOMELESS CHILDREN AND YOUTH

A survey of 30 U.S. cities found that in 1998, children accounted for 25% of the urban homeless population and unaccompanied minors accounted for 3% of the urban homeless population (U.S. Conference of Mayors, 1998). In Austin/Travis County, there are an estimated 932 homeless children in families, representing 23% of the homeless population. Unaccompanied youth account for 7% (Austin/Travis County 2001 Annual Survey of Homeless Service Providers, March 2001) of the area's homeless population on any given day.

The McKinney Homeless Assistance Act of 1987 legislates programming for numerous homeless services including the education of homeless children and youth. The Texas Office for the Education of Homeless Children and Youth (OEHCY) administers grant funds for 20 homeless education programs in Texas. It is estimated that over 125,000 school-age children in Texas experience homelessness during the course of a year. OEHCY is committed to ensuring that all Texas children who are in homeless situations have the opportunity to attend, enroll in, and succeed in school. Most local programs involve local school personnel working to identify and eliminate barriers to enrolling in, attending, and succeeding in school. Some specific activities include raising awareness among school personnel about the rights of homeless students to attend school; ensuring access to programs such as academic testing and free and reduced-price meals; providing tutoring; arranging transportation; obtaining school supplies; and providing liaison services between families and schools.

The ability of homeless children and youth to attend school and secure an adequate education is impacted by a number of issues:

• When families become homeless, they are often forced to move frequently. Length-of-stay restrictions in shelters, short stays with friends and relatives, and/or relocation to seek employment make attending school regularly difficult for homeless children.
  
• Guardianship requirements, lack of birth certificates/proof of residency, delays in transfer of school records, lack of a permanent address and/or immunization records, and lack of transportation often prevent homeless children from enrolling in school.
  
• Children and youth who live in domestic violence shelters may not feel safe attending school.
  
• Students who have to deal with the trauma of homelessness may have difficulty achieving academic success. Many of them may not have access to mental health care.
  
• Students who are experiencing homelessness may face teasing or harassment by other students about their clothing, personal hygiene, or living conditions.
  
• Students in homeless situations may feel embarrassed and isolated and have difficulty making friends because they do not want anyone to know about their situation or they fear that they will move again soon, so they do not want to feel close to others.
  
• From: "Pieces of the Puzzle," 1997, Barbara Wand James, Patrick Lopez, Bryan Murdock, Janie Rouse, Nancy Walker, http://www.utdanacenter.org/OEHCY/publications_Pieces.html
  
• Many parents are afraid that their children will be taken away from them if someone finds out that the family is living in a homeless situation
  
• From: "Homeless Children: A Special Challenge." Young Children. September 1992.
  
  Data about literacy and education levels of individuals receiving homeless services have not routinely been collected or analyzed by most local service providers. As Maslow's Hierarchy of Needs indicates, when people need food, clothing, shelter, and safety, their higher-level needs such as literacy and education may not be addressed until those more basic needs are met. Some people may choose to work rather than attend education, language, or employment training sessions because they and their families need money. Other people may find learning difficult and give up training/education out of frustration and feeling that they are not able to master the material. For various reasons, people in homeless situations may not focus on literacy training and education during the time that they participate in homeless services.

The Downtown Austin Community Court has collected data on the education level of individuals in homeless situations who have been involved with the Court. Over the course of the past year, the Court has gathered the following statistics:

Education Level	Number of People
Less than 12th grade	77
High school diploma or GED	92
Some college	36
Degree	5
Post degree	2
Unknown	549
Total	761

Some people do seek literacy and General Equivalency Diploma (GED) or higher education classes. Several resources are provided in the Austin/Travis County area. Austin Community College holds English as a Second Language (ESL) and GED classes at Caritas social service center and at the First Workers day labor site. Also, American YouthWorks operates a charter school that provides adult education to at-risk youth in the 78745 and 78746 zip codes. Another agency, Lifeworks, provides basic literacy, GED and life skills classes to South Austin youth ages 16-21. El Buen Samaritano, Casa Marianella, and Manos de Cristo focus on ESL and education for immigrant populations. Finally, plans for providing ESL and GED classes at two local shelters and literacy training at the day resource center have been discussed but not finalized.

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E. Barriers to Overcoming Homelessness

There are many factors that may hinder a homeless individual from exiting homelessness. Following are some of these significant barriers.

CRITICAL GAPS IN SERVICES

One of the primary reasons homeless persons do not successfully transition to self-sufficiency is the lack of adequate services in key components of the continuum. The gaps described in the previous section are priorities because of their role in helping homeless persons improve their lives.

Barriers to overcoming Homelessness:

• Critical gaps in services
  
• Funding limitations
  
• Attitudes towards homeless individuals
  
• Mistrust of the service system
  

Whenever a key service in the continuum of care is missing or insufficient, individuals have a difficult time transitioning out of homelessness to self-sufficiency.

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FUNDING LIMITATIONS

Gaps in services are generally the result of inadequate funding. The primary funding source for homeless services is the U.S. Department of Housing and Urban Development (HUD). U.S. Department of Housing and Urban Development sponsors several programs for homeless populations, the largest being the Continuum of Care Homeless Assistance Grant, or "Homeless Super NOFA," an annual grant competition that requires local areas to organize collaborative planning groups, conduct a needs assessment, develop a plan of action, and decide priorities for funding. In Austin/Travis County, the Continuum of Care grant has funded between $2.2 and $3 million in homeless services per year.

The Continuum of Care grant is highly competitive both nationally and locally. Last year, Texas communities received 27% less than the amount of funding for which they were eligible while communities in California and New York received 12-28% over their estimated allocation (HUD, 2000). One key reason for Texas' poor performance was the lack of applications for permanent housing. Instead, most Texas communities - including Austin - requested Continuum of Care funding for social services, such as mental health counseling, job training and case management. While these supportive services are a priority for Austin/Travis County, HUD has made housing projects their top priority. This shift in emphasis may mean that previously funded programs may no longer continue to exist. New gaps in service may result from not providing continued funding for existing services, especially supportive services.

While HUD's priority may be appropriate given that it is the federal agency responsible for housing, no other agency has been able to fill the gap in funding for supportive services. Among HUD programs, the only other grant that covers supportive services for homeless persons is the Emergency Shelters Grant Program (ESG). As compared to the Continuum of Care grant, funding under ESG is limited, amounting to only $285,000 for Austin in 2001. Furthermore, funding for supportive services under this grant is limited to only 30% of the total allocation.

In addition to these restrictions, increased local competition for funds has limited funding available to agencies that serve homeless persons. HUD Continuum of Care grants are generally funded for a maximum of three to five years, at which time the project sponsor must reapply for funding. Renewed funding is not guaranteed and, in Austin, there has been much discussion that projects seeking renewal funds are now receiving nearly all the Continuum of Care funds. In order to fund new programs, organizations currently receiving Continuum of Care grants either have to find alternative funding, or close their doors. For projects providing housing, this presents a particularly difficult dilemma since HUD requires that the housing remain in use by low-income persons for ten years. Unfortunately, there are few grants that offer as much funding, or as comprehensive funding as the HUD Continuum of Care. As a result, several programs initially funded under the Continuum of Care are no longer providing homeless services, and more are at risk as demand for new services and funding increases.

Another limiting factor with HUD funding is the department's restrictive interpretation of the definition of homelessness. According to HUD guidelines, persons are only eligible for services if they are literally homeless (e.g. living on the streets), or living in a shelter, transitional housing project or supportive housing project. Under special circumstances, persons recently released from a hospital or mental institution may be eligible for services if they can show they have no housing resources. Persons who are doubled up in housing, however, or living in motels, are not considered homeless. This presents a problem in Austin, since many homeless families stay with relatives or friends or in a motel while they are waiting for space in a shelter. Because there is a four to six week wait for family shelter, families are forced to make other accommodations. Yet, HUD does not consider them homeless because they do not meet its definition. This interpretation prevents agencies from assisting many individuals in the early stages of their homelessness and causes many homeless families to become frustrated with the system of services.

A decrease in government assistance for low-income individuals is another factor contributing to homelessness. In 1996, a temporary assistance program, Temporary Assistance for Needy Families (TANF), replaced the permanent assistance program for low-income families with children, Aid to Families with Dependent Children (AFDC). Although this was lauded as a step toward ending dependency on public support, the unintended consequences have been an increase in poverty and homelessness. Current TANF benefits combined with the Food Stamp allotment are not enough to raise a recipient to the federal poverty level in any state.

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ATTITUDES TOWARDS HOMELESS INDIVIDUALS

A 1990 study of 1,507 adults in the United States revealed attitudes and beliefs that are common among the U.S. public. Data from the study indicated that a majority of people believe homelessness is caused by both individual factors such as alcohol or drug use, time spent in jail or prison, and mental illness, and by structural factors such as issues around housing, the economic system in the U.S., and lack of government aid. Also, many study participants attributed undesirable characteristics to people in homeless situations. For example, a majority of respondents indicated that the presence of homeless people hurts local businesses, makes neighborhoods undesirable, decreases the appeal of public places such as parks, and threatens quality of life. Small percentages of the respondents also reported believing that homeless people are more dangerous than housed people, are more likely to commit violent crimes, and threaten public safety by congregating in public spaces. Feelings of sadness and compassion toward homeless people mixed with anger that homelessness exists in a wealthy country like the U.S. were tempered with a lack of empathy and beliefs that homeless people have much free time, are lazy and unproductive, and do not have to worry about work and families.
[From: Link, Bruce G., Jo C. Phelan, Ann Stueve, Robert E. Moore, Michaeline Bresnahan, and Elmer L. Struening. "Public Attitudes and Beliefs about Homeless People" in Jim Baumohl (Ed.), Homelessness in America (1996) for the National Coalition for the Homeless, Oryx Press.]

A group of students at the University of Tennessee in Knoxville in 1996 conducted an experiment to gauge attitudes about homeless people. The students pretended to be homeless for a day and noted people's reactions to them. The experiment revealed common behaviors, both negative and positive, that people in homeless situations face:

Both studies' results indicate mixed feelings and beliefs about people in homeless situations. Other attitudes and beliefs commonly held include the following:

Some facts about homelessness that counter those beliefs include:

These data reflect the ambivalence that many people feel toward the issue of homelessness and toward homeless people themselves. Attitudes range from disdain and pity to compassion and encouragement. Also, some beliefs are based on fact while others are based on inaccuracies. The varying thoughts and feelings emphasize the importance of learning the facts about homelessness so that individual and collective behaviors and public policies will help to reduce homelessness.

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