Mister Chairman and Distinguished Members of the Committee:

The National Coalition for Homeless Veterans (NCHV) is honored to participate in this hearing to discuss the programs in place to help America’s homeless veterans, to consider how they may be improved, and to offer insights on what we believe is an historic opportunity to capitalize on our collective successes to focus on and develop strategies that will prevent homelessness among the next generation of America’s veterans.  

This committee knows all too well that the cost of our freedom and prosperity necessarily includes tending to the wounds of the veterans who sacrifice some measure of their lives to preserve it. That we have been invited to offer testimony on these issues is, in itself, a testament to the leadership and devotion of this committee to serve all veterans – including those who otherwise would have no hope of sharing in the peace and prosperity of the society they served to protect.

We therefore begin our testimony by expressing our sincere gratitude for the commendable legacy this committee has forged in the campaign to end and prevent homelessness among this nation’s military veterans. For two decades you have engaged in a noble cause few others have even wanted to acknowledge. You have asked the tough questions, you have demanded accountability, you have shouldered the burden before Congress and delivered on your promise – and for all that you stand first among those who made possible the successes we celebrate today.

The homeless veteran assistance movement NCHV represents began in earnest in 1990, but like a locomotive it took time to build the momentum that has turned the battle in our favor. In partnership with the Departments of Veterans Affairs (VA), Labor, and Housing and Urban Development (HUD) – supported by the funding measures this committee has championed – our community veteran service providers have helped reduce the number of homeless veterans on any given night in America by 38% in the last six years.

This assessment is not based on the biases of advocates and service providers, but by the federal agencies that are charged with identifying and addressing the needs of the nation’s most vulnerable citizens.

To its credit, the VA has presented to Congress an annual estimate of the number of homeless veterans every year since 1996. In 2003 the VA CHALENG report estimate stood at more than 314,000; in 2007 that number had dropped to about 194,000.    

Part of that reduction can be attributed to better data collection and efforts to avoid multiple counts of homeless clients who receive assistance by more than one service provider in a given service area. But in testimony before the House Committee on Veterans Affairs in the summer of 2005, VA officials affirmed that the number of homeless veterans was on the decline, and credited the agency’s partnership with community-based and faith-based organizations for making that downturn possible.

Though estimates are not as reliable as comprehensive “point-in-time” counts, the positive trends noted in the CHALENG reports since 2000 are impressive. The number of contacts reporting data included in the assessments are increasing while the number of identified and estimated homeless veterans is decreasing.

Other federal assessments of veteran homelessness that support our testimony are found in HUD’s 2007 “Annual Homelessness Assessment Report” (AHAR) – which reported that 18% of clients in HUD-funded homeless assistance programs are veterans – and the 2000 U.S. Census, which reported about 1.5 million veteran families are living below the federal poverty level. Earlier this year, the National Alliance to End Homelessness (NAEH) published a report, based on information from these resources, that estimated approximately 46,000 veterans meet the criteria to be considered as “chronically homeless.”

Homeless Veteran Assistance Programs

There are only two non-government veteran-specific homeless assistance programs serving the men and women who represent nearly a quarter of the nation’s homeless population. The over-representation of veterans among the homeless that is well documented and continues to this day is the result of several influences, most notably limited resources in communities with a heavy demand for assistance by single parents and families with dependent children, the elderly and the disabled.

The Department of Labor Homeless Veterans Reintegration program (HVRP) and the VA Homeless Providers Grant and Per Diem were created in the late 1980s to provide access to services for veterans who were unable to access local, federally funded, “mainstream” homeless assistance programs.

These programs are largely responsible for the downturn in veteran homelessness reported during the last six years, and must be advanced as essential components in any national strategy to prevent future veteran homelessness. We will touch on each separately, and briefly comment on how each may be enhanced.

Homeless Veterans Reintegration Program

HVRP is a grant program that awards funding to government agencies, private service agencies and community-based nonprofits that provide employment preparation and placement assistance to homeless veterans. It is the only federal employment assistance program targeted to this special needs population. The grants are competitive, which means applicants must qualify for funding based on their proven record of success at helping clients with significant barriers to employment to enter the work force and to remain employed. In September 2007 this program was judged by the Government Accountability Office (GAO) as one of the most successful and efficient programs in the Department of Labor portfolio.

HVRP is unique and so highly successful because it doesn’t fund employment services per se, rather it rewards organizations that guarantee job placement. Administered by the Veterans Employment and Training Service (VETS), the program is responsible for placing a range of 14,000 to 16,000 veterans with considerable challenges into gainful employment each year at a cost of about $1,500 per client. Those numbers meet or exceed the results produced by most other Department of Labor programs.

Recommendation – The HVRP program has been authorized at a $50 million funding level since 2005, yet the annual appropriation has been less than half that amount. We would ask this committee to prevail upon appropriators – to the extent possible – to fully fund this program. We believe the proven success and efficiency of the program warrants this consideration, and that DOL-VETS has the administrative capacity, will and desire to expand the program. Employment is the key to transition from homelessness to self sufficiency – this program is critical to the campaign to end and prevent veteran homelessness.

Homeless Providers Grant and Per Diem Program (GPD)

Despite significant challenges and budgetary strains, the VA has quadrupled the capacity of community-based service providers to serve veterans in crisis since 2002, a noteworthy and commendable expansion that includes, at its very core, access to transitional housing, health care, mental health services and suicide prevention.

GPD is the foundation of the VA and community partnership, and currently funds nearly 10,000 service beds in non-VA facilities in every state. Under this program veterans receive a multitude of services that include housing, access to health care and dental services, substance abuse and mental health supports, personal and family counseling, education and employment assistance, and access to legal aid.

The purpose of the program is to provide the supportive services necessary to help homeless veterans achieve self sufficiency to the highest degree possible. Clients are eligible for this assistance for up to two years. Most veterans are able to move out of the program before the two-year threshold; some will need supportive housing long after they complete the eligibility period. Client progress and participant outcomes must be reported to the VA GPD office quarterly, and all programs are required to conduct financial and performance audits annually.

In September 2007, despite the commendable growth and success of this program and its role in reducing the incidence of veteran homelessness, the GAO reported that the VA needs an additional 9,600 beds to adequately address the current need for assistance by the homeless veteran population. That finding was based on information provided by the VA, the GAO’s in-depth review of the GPD program, and interviews with service providers. The VA concurred with the GAO findings.

Recommendations

1. Increase the annual appropriation of the GPD program to $200 million – The projected $137 million in the president’s FY 2009 budget request will allow for expansion of the GPD program, but not nearly to the extent called for in the GAO report. While some VA officials may be concerned about the administrative capacity to handle such a large infusion of funds into the program, we believe the documented need to do so should drive the debate on this issue.

In 2006, the VA created the position of GPD Liaisons at each medical center to provide additional administrative support for the GPD office and grantees. The VA also published a comprehensive program guide to better instruct grantees on funding and grant compliance issues. This represents a considerable and continual investment in the administrative costs of the program that should translate into increased capacity to serve veterans in crisis.

Additional funding would increase the number of operational beds in the program, but under current law it could also enhance the level of other services that have been limited due to budget constaints. GPD funding for homeless veteran service centers – which has not been available in recent grant competitions – could be increased. These drop-in centers provide food, hygienic necessities, informal social supports and access to counselors that would otherwise be unavailable to men and women not yet ready to enter a residential program. They also could serve as the initial gateway to veterans in crisis who are threatened with homelessness or dealing with issues that may result in homelessness if not resolved. For OIF/OEF veterans in particular, this is a critical opportunity to prevent future veteran homelessmess.

Additional funding could also be used under current law to increase the number of special needs grants awarded under the GPD program. The program awards these grants to reflect the changing demographics of the homeless veteran population, and are specifically targeted to women veterans, including those with dependent children; the frail elderly, increasingly important to serve aging Vietnam-era veterans – still the largest subgroup of homeless veterans; veterans who are terminally ill; and veterans with chronic mental illness. These grants provide transitional housing and supports for veteran clients as organizations work to find longer-term supportive housing options in their communities.

2. Change the mechanism for determining “per diem” allowances – Under the GPD program, service providers are reimbursed for the expenses they incur for serving homeless veterans on a formula based on the rate of reimbursement provided to state veterans homes, and those rates are then reduced based on the amount of funding received from other federal sources. The current ceiling is about $33.00 per veteran per day.

This payment system is outdated for two reasons. The first is the difference in the cost of custodial care and the cost of comprehensive services that help individuals rebuild their lives. Whether provided on site or through contracts with partner agencies, the latter requires the intervention of highly trained professionals and intense case management. Revisions in the reimbursement formula should reflect the actual cost of services – based on each grantee’s demonstrated capacity to provide those that are deemed critical to the success of the GPD program and veteran clients – rather than a flat rate based on custodial care.

The second reason is less obvious but equally important. Discounting the amount of an organization’s “per diem” rate due to funding from other federal agencies contradicts the fundamental intent of the GPD program and undermines the ability of organizations to provide the wide range of services these veterans need. In order to successfully compete for GPD funding, applicants must demonstrate they can provide a wide range of supportive services in addition to the transitional housing they offer. They should not be penalized for obtaining funds to enhance the services they are able to provide, regardless of the source of that funding.

Addressing Prevention of Veteran Homelessness

The reduction in the number of homeless veterans on the streets of America each night proves that the partnership of federal agencies and community organizations – with the leadership and oversight of Congress – has succeeded in building an intervention network that is effective and efficient. That network must continue its work for the foreseeable future, but its impact is commendable and offers hope that we can, indeed, triumph in the campaign to end veteran homelessness.

The lessons we have learned and the knowledge we have gained during the last two decades, however, must also support our nation’s leaders and policy makers in their effort to prevent future homelessness among those veterans who are still at risk due to health and economic pressures, and the newest generation of combat veterans returning from Operations Iraqi Freedom and Enduring Freedom.

Again, NCHV bases its recommendations in this regard to the published findings of the federal agencies already mentioned.

The lack of affordable permanent housing is cited as the No. 1 unmet need of America’s veterans, according to the VA CHALENG report. We commend the work of HUD and VA to make up to 10,000 HUD-VA supportive housing (HUD-VASH) vouchers available to veterans with chronic health and disability challenges in FY 2008, and possibly another increase in equal measure in FY 2009. This is a historic and heroic achievement, and again we commend this committee for its leadership on this issue.

The affordable housing crisis, however, extends far beyond the realm of the VA system and its community partners. Once veterans successfully complete their GPD programs, many formerly homeless veterans still cannot afford fair market rents, nor will most of them qualify for mortgages even with the VA home loan guarantee. They are, essentially, still at risk of homelessness. With another 1.5 million veteran families living below the federal poverty level (2000 U.S. Census), this is an issue that requires immediate attention and proactive engagement.

NCHV believes the issue of affordable permanent housing for veterans must be addressed on two levels – those veterans who need supportive services beyond the two-year eligibility for GPD; and those who are cost-burdened by fair market rents in their communities.

Veterans who graduate from GPD programs often need supportive services while they continue to build toward economic stability and social reintegration into mainstream society. Those who will need permanent supportive housing – the chronically mentally ill, those with functional disabilities, families impacted by poverty – may be served by the HUD-VASH program. But the majority of GPD graduates need access to affordable housing with some level of follow-up services for up to two to three years to ensure their success.

Many community-based organizations are already providing that kind of “bridge housing,” but resources for this purpose are scarce. NCHV supports two initiatives that would address this issue.

The first is a measure to provide grants to government and community agencies to provide services to low-income veterans in permanent housing. Funds would be used to provide continuing case management, counseling, job training, transportation and child care needs. This is the intent of House Bill 2874, the “Veterans Health Care Improvement Act.”

The second measure would make funds available to government agencies, community organizations and developers to increase the availability of affordable housing units for low-income veterans and their families. The “Homes for Heroes Act” – introduced in both the House and Senate – addresses this issue and NCHV has worked with staff in both houses in recognition and support of Congressional action on this historic veteran homelessness prevention initiative.

With respect to implementing a homelessness preventive strategy targeted to veterans returning from OIF/OEF, NCHV believes the first line of engagement is a strong partnership between the VA and community health centers in areas underserved by the Veterans Health Administration. While current practice allows a veteran to access services at non-VA facilities, the process is often frustrating and problematic, particularly for a veteran in crisis. Protocols should be developed to allow VA and community clinics to process a veteran’s request for assistance directly and immediately without requiring the patient to first go to a VA medical facility.

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