Monday, November 28, 2011

Massachusetts Spending 11 Million Annually on 442 Families in Western Mass Hotels – State Cannot find affordable rent for $2000 per month!


A typical rental property in Western MA, Rental starts at $650 - image from homes.com

A recent story in the Springfield Republicanspeaks to the woes of those families living under less than perfect conditions in Western Massachusetts Hotels. There are complaints from these families ranging from lack of cooking options, to mothers dealing with “gang fights” and “drug sales”. The problem: The State’s Rental Assistance program is not longer taking applications.

The program:

“HomeBASE is a new housing program for homeless families with children and for pregnant women. It starts on August 1, 2011.
HomeBASE can help pay for rent or other housing costs for up to 3 years. You must follow a Stabilization Plan.
What can HomeBASE pay for?
An apartment for you to stay in while you look for housing (if you have no other safe place to stay) and either
A. Up to $4,000 a year to help you move into your own apartment or stay with others or
B. A rental subsidy to help you rent a low-cost apartment. You will have to pay 35% of your income for rent and utilities.”


Doing the Math:

From the Republican

The nightly room rates are slightly below market, but the homeless families provide hotels a steady clientele. State records show the nightly expenditure to house 81 families at the Quality in is $5,670; the average nightly rate is around $70. The state pays a total of $33,314 a night to 10 shelter hotels around Western Massachusetts.


That’s $11,726,528 per year, for housing assistance in hotels for 442 families in Western Massachusetts or $26,530 approximate per month, per family, for housing. More to the point, the $2200 plus per month should be enough to find “affordable” rentals in Western Massachusetts.

Therefore instead of offering a $4000 annual stipend, and an additional 35% of rental,
the Commonwealth might take a differ route: For example a Craig’s list rental listing for Chicopee MA offers a 5 room, 3 bedroom apartment for $675 per month. With the starting monthly budget for hotels at $2200, including last months deposit the total is $1350, leaving a balance of $850 for utilities, which would, in this area, cover electric, telephone and cable easily.
Are there 442 apartments for rent in the area – undoubtedly, there were over 100 posted on Craigslist on Sunday November 27th, other options include local newspaper classifieds, as well as rent.com, etc. Conclusion: there are affordable rentals for $2000 per month in Western Massachusetts.

What is somewhat confusing is the fact that the states program for rental assistance is broke, yet the state is spending more on substandard hotel room housing, so much so that each family housed could easily afford an apartment in the area.
One has to question the relationship between the hotels and the State, and the “boon” to business this has been for the hotel franchises.

In addition, free food, free rent, etc., is considered the “norm” in Massachusetts in the year 2011, going back to the year 1973, free housing was unheard of, if one lost a job, and or had a child out of wedlock (archaic now), one got a job, and did one’s best to get the father to pony up – with help from the state - Welfare was considered a shameful situation, not a given. It was perhaps, that era was still under the influence of the Depression era, hard working, savings, individuals, who would take a hand up, but not a hand out – FDR’s workfare program being a perfect example.

Should the state continue to house homeless, and or provide rental to those in need of assistance up to three years, (according to the state’s website), would it not behoove, the state to institute workfare? This would build confidence, and offer these families, rentals, whereby, the rental would be part of the payment for doing a State Job. Given the fact that State Jobs are at a rate more often above the private sector, the families would be on "easy street", also, there this would eliminate costly programs that end up underfunded.

Taxpayers would save money, there would, with these individuals working and living in the area, be more taxpayers for the state – the only foreseeable problem: the hotel franchisers might suffer. Again, that is a relationship which bears further scrutiny from someone in the State Government that would have the sense to see that there is the potential to offer a humane and one might even say generous solution to these homeless families, while at the same time, increasing the tax rolls, thereby saving the state and the taxpayers a few bucks.

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