Finnish homelessness is on decline as the country applies the “Housing First” concept.
Those affected by homelessness receive a small apartment and counselling – without any preconditions. 4 out of 5 people affected thus make their way back into a stable life.
And: All this is cheaper than accepting homelessness.
In 2008 Helsinki had tent villages and huts standing between trees in its parks. The Homeless couldn’t find jobs – without a housing address. And without any job, they couldn’t find a flat. It was a vicious circle. Furthermore, they had problems applying for social benefits. All in all, homeless people found themselves trapped.
In 2008 the Finnish Government started introducing “Housing First” and has set a vision
Nobody should have to live on the streets – every citizen should have a residence.
How it’s done
Housing and counselling - and no preconditions
The NGO - “Y-Foundation” provides housing for people in need. They take care of the construction themselves, buy flats on the private housing market and renovate existing flats.
The apartments have one to two rooms. In addition to that, emergency shelters have been converted into apartments in order to offer long-term tenancies.
Homeless people turn into tenants with a tenancy agreement. They also have to pay rent and operating costs. Social workers, who have offices in the residential buildings, help with financial issues such as applications for social benefits.
Y-Foundation receives discounted loans from the state to buy housing. Additionally, social workers caring for the homeless and future tenants are paid by the state.
The Finnish lottery supports the NGO when it buys apartments on the private housing market. The Y-Foundation also receives regular loans from banks. The NGO later uses the rental income to repay the loans.
“Housing First” help Homeless people get a flat – without any preconditions. Social workers help them with applications for social benefits and are available for counselling in general. In such a new, secure situation, it is easier for those affected to find a job and take care of their physical and mental health.
The result is impressive: 4 out of 5 homeless people will be able to keep their flat for a long time with “Housing First” and lead a more stable life.
In the last 10 years, the “Housing First” programme provided 4,600 homes in Finland. In 2017 there were still about 1,900 people living on the streets – but there were enough places for them in emergency shelters so that they at least didn’t have to sleep outside anymore.
Providing people with apartments is cheaper than leaving them on the street
Creating housing for people costs money. In the past 10 years, 270 million euros were spent on the construction, purchase and renovation of housing as part of the “Housing First” programme.
However, CEO of housing first, Juha Kaakinen points out, this is far less than the cost of homelessness itself. Because when people are in emergency situations, emergencies are more frequent: Assaults, injuries, breakdowns. The police, health care and justice systems are more often called upon to step in – and this also costs money.
In comparison, “Housing First” is cheaper than accepting homelessness: Now, the state spends 15,000 euros less per year per homeless person than before.
No miracle cure – but a high success rate
With 4 out of 5 people keeping their flats, “Housing First” is effective in the long run. In 20 percent of the cases, people move out because they prefer to stay with friends or relatives – or because they don’t manage to pay the rent. But even in this case they are not dropped. They can apply again for an apartment and are supported again if they wish.
Of course, there is no guarantee for success. Especially homeless women are more difficult to reach: They conceal their emergency situation more often: They live on the streets less frequently and rather stay with friends or acquaintances.
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