NYC Department of Health and Mental Hygiene, 2013

This report represents the first major assessment on the cost-savings impacts of supportive housing created under the New York/New York III Supportive Housing Agreement. Reviewing data from the first years of the agreement, the study finds that homeless or institutionalized people placed into NY/NY III supportive housing saved taxpayers a net average of $10,100 per person per year. The evaluation compares those found eligible for and placed into NY/NY III housing with a control group made up of those who were also found eligible but did not receive a supportive housing placement. The study looked at two years of costs prior to placement/non-placement and one year post for everyone who was placed or not placed into NY/NY housing between 2007 and 2009. The authors measured public costs associated with participants’ use of shelter, jail, cash assistance, food stamps, state psychiatric care and Medicaid. They found that, after subtracting the NY/NY III housing and service costs, each NY/NY III tenant housed saves the public an average of $10,100 a year. The savings occurred across many public systems and varied widely by tenant population, with supportive housing for tenants coming from State-operated psychiatric facilities saving on average an impressive $77,425 per tenant per year. The NY/NY III housing achieved either a complete cost offset or significant savings for all but two of the tenant populations.

New York/New York III Supportive Housing Evaluation was conducted by the NYC Department of Health and Mental Hygiene (DOHMH) in collaboration with the NYC Human Resources Administration (HRA) and the NYS Office of Mental Health (OMH).

Download New York/New York III Supportive Housing Evaluation

Research category: Important Research, Cost Savings