Democracy in America | Data and homelessness

Just like Airbnb

When algorithms meet altruism

By E.B. | NEW YORK

IN A hospital emergency room, patients with the most urgent problems are usually treated first. It makes little sense to mend a broken finger if someone is waiting with a heart attack. Yet this one-size-fits-all approach has long informed the way the country handles homelessness. Housing subsidies and assorted services are often doled out on a first come-first served basis, regardless of need. With waiting times measured in years, and little co-ordination between agencies, the homeless who are best served tend to be the easiest to treat, as they are the most capable of navigating—and tolerating—a Byzantine bureaucracy. The most critical cases often end up slipping between the cracks.

Cities can save a lot of money if they swiftly place these needy cases in supportive permanent housing—a plan known as Housing First—while offering fewer services to those who can better help themselves. This approach is something I covered recently in a story about homelessness in Hawaii, one of many states that has turned instead to criminalising homelessness, which is far more costly and counter-productive. A night in jail can cost three times more than a night in a shelter, and a criminal record makes it much harder for homeless people to get back on track. States and their coffers are much better off when they address the root of the problem, such as dwindling affordable housing or mental illness. (Nearly 13% of the country's affordable-housing stock—defined as costing no more than 30% of a family’s income—has been lost since 2001.) It bears mentioning that in places like Honolulu, Boston and Washington, DC, where the homeless numbers are particularly high, costly housing ensures that even employed people are left on the streets. As the temperatures drop, this problem becomes ever more pressing.

The way Housing First works is that it provides the most perilous homeless cases with homes up front, and then delivers the support these people need (such as drug rehabilitation or job training) to help them stay there. This saves a great deal of money because these folks would otherwise be ricocheting between expensive services, such as jails and emergency rooms. (James Surowiecki nicely explains the economics of Housing First here.) But such savings are possible only if cities can identify who needs the most help. Few cities have a system for doing this, and most cases—around 70%, says Paul Howard of Community Solutions, a non-profit organisation—need only a bit of help to exit homelessness and not look back. “It’s tough to prioritise needs,” says Will Connelly, director of Nashville’s Metropolitan Homelessness Commission.

A new web-based tool aims to help change this. Designed by Community Solutions and Palantir Technologies, a software company, this platform, called Homelink, helps cities to collect data on individual homeless clients, such as income, medical history and substance-abuse problems, and then assign a severity score (using one of several surveying methods). The results are gathered in a centralised database for each city, which participating agencies can access and update. An algorithm then matches homeless people with the services available, targeting the neediest clients with the most immediate help. The effect is like a hospital triage system—or "an Airbnb for the homeless," says Mr Howard. By coordinating and centralising the resources of groups with similar aims but different means, the single platform would ideally reduce some of the wasteful overlapping typical of social-service bureaucracies.

The use of data to segment markets and track performance is commonplace in the for-profit sector. Non-profits have long preferred good intentions over measurable solutions. But it does not have to be this way, says Rosanne Haggerty, president of Community Solutions. Her organisation saw a need for a more streamlined approach to providing homelessness services during its 100,000 Homes Campaign, a four-year effort to place chronically homeless people in permanent housing around the country—which ultimately housed more than 105,000 people by June 2014. The organisation created the initial platform in 2013. Palantir came aboard in 2014 on a pro-bono basis, and Cisco backed the project with a grant. San Francisco began using the new tool free of charge in September, and ten more cities will follow suit by the end of this year. The platform will be available to cities who commit to ending chronic and veteran homelessness in the next two and a half years. “Many of the resources we need we already have,” says Ms Haggerty. “We just have to use them differently.”

(Photo credit: AFP)

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