Handing Out Money to Stave Off Homelessness - NYTimes.com
Faced with eviction, he was staring last month at the imminent prospect of joining the teeming ranks of the homeless. His last hope was a new $1.5 billion federal program aimed at preventing that fate.
Days after Mr. Moore applied, a check for $775 was on its way to his landlord, enabling him to stay — at least for now.
Much like the Great Depression, when millions of previously working people came to rely on a new social safety net for their sustenance, a swelling group of formerly middle-class Americans like Mr. Moore, 30, is seeking government aid for the first time. Without help, say economists, many are at risk of slipping permanently into poverty, even as economic conditions improve.
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The severity of the situation prompted the Obama administration to create the Homelessness Prevention and Rapid Re-Housing program within the $787 billion economic stimulus package. The program rests on the assumption that intervention is the best course because once people become homeless, the odds and costs of regaining their lives escalate sharply.
“This allows us to reorient a system that is focused on fixing a problem after it happens to preventing the problem,” said Shaun Donovan, the secretary of the Department of Housing and Urban Development, which oversees the program. “This is the single most important thing the federal government has ever done on family homelessness. It’s a transformative tool.”