Statement of the
National Coalition for Homeless Veterans
Before the
House Appropriations Subcommittee on Military Construction, Veterans’ Administration, and Related Agencies
Hearing on Homeless Veterans
March 8, 2007
Introduction
The National Coalition for Homeless Veterans (NCHV) appreciates the opportunity to submit testimony to the House Appropriations Subcommittee on Military Quality of Life and Veterans Affairs and Related Agencies regarding Homeless Veterans Programs of the U.S. Department of Veterans Affairs (VA). Established in 1990, NCHV is a not for profit organization with the mission of ending homelessness among veterans by shaping public policy, promoting collaboration, and building the capacity of service providers. NCHV is the only national organization wholly dedicated to helping end homelessness among America’s veterans.
NCHV was founded by a group of community-based homeless veteran service providers who sought to educate the public about the extraordinarily high percentage of veterans among the homeless population and to place the needs of homeless veterans on the national public policy agenda. The founders, all former members of the military, were concerned that neither the public nor policy makers understood either the unique reasons for homelessness among veterans or appreciated the reality that so many veterans were overlooked and underserved during their periods of personal crisis.
In the years since its founding, NCHV's membership has grown to over 250 organizations in 48 states and the District of Columbia. As a network, NCHV members provide the full continuum of care to homeless veterans and their families, including emergency shelter, food and clothing, primary health care, addiction and mental health services, employment supports, educational assistance, legal aid and transitional housing.
Homelessness Among Veterans
The VA reports homeless veterans are mostly males (3 percent are females) and the vast majority are single, although service providers are reporting an increased number of veterans with children seeking their assistance. About half of all homeless veterans have a mental illness and more than two thirds suffer from alcohol or other substance abuse problems. Nearly 40 percent have both psychiatric and substance abuse disorders. The VA reports the majority of women in homeless veteran programs have serious trauma histories, some life-threatening, and many of these women have been raped and reported physical harassment while in the military.
According to the VA Northeast Program Evaluation Center (NEPEC), male veterans are 1.3 times more likely to become homeless than their non-veteran counterparts, and female veterans are 3.6 times more likely to become homeless than their non-veteran counterparts. Like their non-veteran counterparts, veterans are at high risk of homelessness due to extremely low or no livable income, extreme shortage of affordable housing, and lack of access to health care. But these factors combined with their military service put them at even greater risk of homelessness.
Prior to becoming homeless, a large number of veterans at risk of homelessness have struggled with post traumatic stress disorder, also known as PTSD, or have addictions acquired during or after their military service. NEPEC reports nearly 74% of homeless veterans are likely to have medical problems upon admission to either VA or community-based assistance programs. About 70 percent will have alcohol-related problems; 63% will have drug abuse histories; and 69% will have a mental illness diagnosis. These conditions can interrupt their ability to keep a job, establish savings, and in some cases, live with their families. Veterans’ family, social, and professional networks may have been damaged and their lives disrupted due to extensive mobility while in service or lengthy periods away from their hometowns and their civilian jobs. These problems are directly traceable to their experience in military service or to the difficulty of transitioning back into civilian society.
While most Americans believe our nation’s veterans are well-supported, in fact many go without the services they require and are eligible to receive. According to a Congressional staff analysis of 2000 U.S. Census data, 1.5 million veterans have incomes that fall below the federal poverty level, including 634,000 with incomes below 50 percent of poverty. Neither the VA nor state and county veteran service departments are adequately funded to respond to these veterans’ health, housing, and supportive services needs. Moreover, community-based and faith-based service providers also lack sufficient resources to keep up with the number of veterans needing help.
The VA reports its homeless veteran programs serve about 100,000 veterans annually. NCHV member community-based organizations (CBOs) serve 150,000 each year. With an estimated 400,000 veterans experiencing homelessness at some time during the year, and the VA reaching only 25 percent and CBOs reaching 35 percent of those in need, that still leaves almost 40% of the nation’s homeless veterans who do not receive the help they need. It is likely some of these veterans are receiving assistance from other community resources, but there is no way to determine how many or the nature of services being provided.
In testimony presented to Congress in 2006, a U.S. Department of Veterans Affairs (VA) representative reported the number of homeless veterans on the streets of America on any given night decreased by nearly 25 percent during the last five years, from about 250,000 to 190,000.
Despite the reported decrease, many veterans still need help. Findings from a survey conducted by NCHV in November 2005 suggest the homeless veteran population in America may be experiencing significant changes. Homeless veterans receiving services today are aging and many are in need of permanent supportive housing. With the increase in the number of women serving in Iraq and Afghanistan, the percentage of women veterans seeking services is growing. According to studies published by the New England Journal of Medicine and the VA, a growing number of combat veterans of Operation Iraqi Freedom, Operation Enduring Freedom and the Global War on Terror are returning home and suffering from war-related conditions that may put them at risk for homelessness.
VA Homeless Veterans Programs Appropriations Recommendations
The major homeless veterans programs administered by the U.S. Department of Veterans Affairs include health care, including mental health and substance abuse services, domiciliary care, and the Homeless Providers Grants and Per Diem (GPD) program. GPD is the nation’s largest VA program to help address the needs of homeless veterans and supports development of transitional, community-based housing and delivery of supportive services. The program also funds GPD liaisons who coordinate outreach, case management, referrals to benefits counselors, linkage to health care and housing assistance. Also funded under the GPD program are Special Needs Grants, which assist homeless women veterans including homeless women veterans with children, in addition to veterans who are chronically mentally ill, frail elderly and terminally ill.
In FY 2006 total spending for VA homeless programs was $210 million and is estimated to reach over $265 million in FY 2007. The Department projects FY 2008 spending on VA homeless programs to reach slightly above $287 million, should Congress accept the President’s budget request. The FY 2008 funding level for the VA Mental Health Initiative is $360 million and for the Substance Abuse Treatment Program, which includes services to homeless veterans, is $358 million.
The landmark Homeless Veterans Comprehensive Assistance Act of 2001 (P.L. 107-95) established new program authorities and reauthorized long-standing homeless programs within the VA. While the authorization law set explicit funding levels for many of the VA homeless programs and authorities, actual annual spending levels are set by the VA Secretary via allocation of funds from the VA medical services account, which are appropriated by Congress.
Homeless Provider Grant and Per Diem Program
The Homeless Provider Grant and Per Diem Program provides competitive grants to community-based, faith-based, and public organizations to offer transitional housing or service centers for homeless veterans. The GPD program is an essential component of the VA’s continuum of care for homeless veterans, assuring the availability of social services, employment supports, and direct treatment or referral to medical treatment.
In September 2006 the General Accountability Office (GAO) released its study, Improved Communications and Follow-up Could Further Enhance the Grant and Per Diem Program. The agency found while VA has attempted to improve its services and increase the capacity of the GPD program, an additional 9,600 transitional housing beds are needed to meet the current demand. According to the study, VA reports a total of 45,000 transitional beds are needed and has identified 35,400 beds available from various sources, including the GPD program, resulting in a shortfall of about 9,600 beds. In FY 2005, the GPD program had about 8,000 available for homeless veterans. GAO states VA plans to increase GPD beds by 2,200 in the near future.
The Veterans Benefits, Health Care, and Information Technology Act of 2006 (P. L. 109-461) permanently authorized the GPD program at $130 million in appropriations for FY 2007 and each year thereafter. Based on GAO’s findings and VA’s projected needs for additional GPD beds, NCHV believes a $170 million authorization level in FY 2008 and $200 million in FY 2008 is needed. An increase in the authorization level over the next several years would come close to satisfying the VA target for new GPD beds.
Mental Health Programs
In FY 2004, the VA created its Mental Health Strategic Plan, which called for increased funding to improve and expand mental health services at VA medical facilities and community-based outreach centers. The Plan also called for improving access to and availability of mental health and substance abuse services for all veterans including those who are homeless. In its 2006 report, the VA Advisory Committee on Homeless Veterans reported a critical lack of substance abuse services of all kinds, particularly detoxification treatment beds, and expressed concern that these services continue to decline. NCHV agrees with the Committee’s recommendation to implement VHA’s Mental Health Strategic Plan, including taking action to prevent further decline in the number of veterans being treated in these programs. Providing adequate funding to fully implement the Plan is essential to ending chronic homelessness among veterans.
Special Needs Grants
The VA provides grants to VA health care facilities and existing GPD recipients to assist them in serving homeless veterans with special needs including women, women who have care of dependent children, chronically mentally ill, frail elderly and terminally ill veterans. Initiated in FY 2004, VA has provided special needs funding to 29 organizations totaling $15.7 million. The VA Advisory Committee on Homeless Veterans 2006 report expressed concern that programs for special needs groups have been slow to materialize, especially for women veterans, one of the fastest growing homeless populations. P.L. 109-461 authorizes appropriations of $7 million for FY 2007 through FY 2011 for special needs grants. The increased risks of homelessness among each of these populations warrants funding for special needs grants needs at its authorized level.
VA Homeless Veterans Program Management Recommendation
GPD Per Diem Payments
Among Congress’s intent when it adopted the Homeless Veterans Comprehensive Assistance Act (P.L. 107-95) was to simplify the process for paying GPD grantees. Regrettably, VA is requiring GPD grantees to submit extensive documentation regarding their sources of project funding in order to secure per diem payments at the maximum rate permitted by statute, which is the rate authorized for State homes for domiciliary care. This requirement limits providers from using their other funds as leverage, and instead forces them to use them as subsidy.
In addition, GPD grantees are not allowed to use GPD funds, either in capital development projects or operating per diem payments as a match to any other federal grant source, including pass-through dollars. This year NCHV plans to seek legislation from the authorizing committees that would direct the Secretary to ensure grantees under the GPD program are reimbursed for services to homeless veterans without decrementing the GPD rate based on other income streams. Additionally, the legislation would direct the Secretary to clarify that GPD funds may be used by recipients as matching funds for other federal grants or payments.
Low-Income Veterans Permanent Housing Needs
While the federal government makes a sizeable investment in homeownership opportunities for veterans, there is no parallel national rental housing assistance program targeted to low-income veterans. Some veteran-specific transitional housing programs have been developing permanent housing opportunities for veterans ready for independent living. These programs are scarce, however, and the VA has no authority to provide grant funding to create affordable permanent housing units for low-income veterans and those who have completed their transition programs. Veteran service providers must compete with other housing projects for limited HUD funding, and constantly search for additional funding sources to provide this housing option.
In 2005 Congress took initial steps regarding permanent housing for low income veterans by including language within the report accompanying the final FY 2006 military construction and veterans’ affairs appropriations measure, which required the GAO to conduct a study on housing assistance to low-income veterans. The study is due in August 2007. We ask the Subcommittee to support efforts to elevate national attention to the housing assistance needs of our nation’s low-income veterans through the establishment of a targeted permanent housing assistance program for low income veterans. The program should also include funding for competitive grants to community-based, faith-based and public organizations to provide health and supportive services to homeless people placed in permanent housing.
Conclusion
NCHV appreciates the opportunity to submit recommendations to Congress regarding funding for homeless veteran programs. We look forward to continuing to work with the Appropriations Subcommittee to ensure our Federal government does what is necessary to prevent and end homelessness among our nation’s veterans.
