Mr. Chairman and Members of the Committee:

Thank you for this opportunity to submit The American Legion’s views on the issue of homelessness among America’s veterans.  The American Legion commends the Committee for addressing this important issue.

The Fiscal Year (FY) 2007 Veterans Affairs (VA) Community Homelessness Assessment, Local Education and Networking Groups (CHALENG) report estimates that there are nearly 154,000 veterans who are homeless at any point in time, down from 195,000 in FY 2006. We must be wary of the VA’s claim of a decrease of a 21 percent (41,000) of homeless veterans over the past year. According to the February 2007 Homeless Assessment Report to Congress from the U.S. Department of Housing and Urban Development 2007, veterans account for 19 percent of all homeless people in America.  The National Alliance to End Homelessness (NAEH) reports that there are 195,827 homeless veterans on the street each night.  This accounts for 26 percent of all homeless people.  The Alliance also estimates that 336,627 veterans were homeless in 2006. 

According to a report on homelessness released by the Urban Institute in 2000, ”Homelessness: Programs and the People They Serve, Findings of the National Survey of Homeless Assistance Providers and Clients” the spike in homelessness among veterans during the 1980s was attributed to:  “the recession of 1981-1982, and would go away when the economy recovered, while others argued that the problem stemmed from a lack of affordable housing and that homeless clients were simply a cross section of poor Americans.”  This 2000 study stated that of current homeless veterans:  “21 percent served before the Vietnam era (before August 1964); 47 percent served during the Vietnam era (between August 1964 and April 1975); and 57 percent served since the Vietnam era (after April 1975).  Many have served in more than one time period.”

In order to prevent a national epidemic of homeless veterans in the upcoming years, measures must be taken to assist those veterans who are homeless.  Steps must also be taken to prevent the future veterans and their families from facing homelessness. 

THE AMERICAN LEGION HOMELESS VETERANS TASK FORCE

The American Legion coordinates a Homeless Veterans Task Force (HVTF) amongst its 55 departments.  Our goal is to augment existing homeless veteran providers, the VA Network Homeless Coordinators, and the Department of Labor’s (DOL) Homeless Veterans Reintegration Program (HVRP), Veterans Workforce Investment Program (VWIP), Disabled Veterans’ Outreach Personnel (DVOPs) and Local Veterans’ Employment Representative (LVERs).  In addition to augmentation, the Task Force attempts to fill in the gaps where there is no coverage.  Many of The American Legion’s Departments contain an HVTF chairman and an employment chairman.  These two individuals coordinate activities with The American Legion’s local posts within their state.  The three-tiered coordination of these two chairmen and numerous local posts attempt to address the needs of homeless veterans in the local community, while identifying those at risk and preventing homelessness.

The American Legion has conducted training with the assistance of the National Coalition for Homeless Veterans (NCHV), DOL-Veterans Employment and Training Service (VETS), Project Homeless Connect, and VA on how to apply for Federal grants in various assistance programs, most notably the “Stand Down” and Grant and Per Diem programs.  It is our goal to assist the Grant and Per Diem program by enabling individual posts and homeless providers to use The American Legion as a force multiplier. 

The American Legion augments homeless veteran providers with transportation, food, clothing, cash and in-kind donations, technical assistance, employment placement, employment referral, claims assistance, veterans’ benefits assistance, and in some cases housing for homeless veterans.  The American Legion department service officers are accredited representatives that assist homeless veterans with their VA compensation and pension claims.

A separate program administered by The American Legion that assists veterans in need is our “Heroes to Hometowns” program.  “Heroes to Hometowns” is a transition program for severely injured service members returning home from Operation Enduring Freedom and Operation Iraqi Freedom. The "Heroes to Hometowns" establishes a support network and coordinates resources for severely injured service members returning home. 

“Heroes To Hometowns” can provide, a welcome home celebration, temporary financial assistance, pro-bono financial planning, housing assistance, home and vehicle adaptation, government claims assistance, transportation to hospital visits, entertainment options, childcare, counseling, family support, and other benefits. 

The “Heroes To Hometowns” program has proven successful in preventing many veterans and their families from losing their homes by providing financial assistance.

POTENTIAL HOMELESS VETERANS OF OPERATION ENDURING FREEDOM (OEF) AND OPERATION IRAQI FREEDOM (OIF)

Returning OEF/OIF combat veterans are at risk of becoming homeless.  Combat veterans of OEF/OIF and the Global War on Terrorism (GWOT) in need of assistance are beginning to trickle into the nation's community-based veterans’ service organizations’ homeless programs. Already stressed by an increasing need for assistance by post-Vietnam Era veterans and strained budgets, homeless services providers are deeply concerned about the inevitable rising tide of combat veterans who will soon be requesting their support.

VA’s Health Care for Homeless Veterans (HCHV) operates at 133 sites and reports assisting 1,819 OIF/OEF era homeless veterans over the past three tears with an average age if 33.  Nearly half of them, 859, were seen in the past year alone.  The HCHV conducted physical and psychiatric health exams, treatment, referrals and ongoing case management to these homeless veterans with mental health problems, including substance abuse.  Now treating combat veterans from Iraq and Afghanistan daily, VA is reporting that a high percentage of those casualties need treatment for mental health issues.  That is consistent with studies conducted by VA and other agencies that conclude anywhere from 15 percent to more than 35 percent of combat veterans will experience some clinical degree of Post Traumatic Stress Disorder (PTSD), depression or other psychosocial problems. 

Unemployment, underemployment, difficulty translating military skills to the civilian sector and the state of our economy all contribute to conditions that could lead to homelessness.  Younger veterans of OIF/OEF are experiencing employment obstacles at an alarming rate.  A report by the DOL-VETS finds that 11.3 percent of veterans ages 20 to 24 were unemployed in 2007, compared to only 8.1 percent of nonveterans in the same age group. Moreover, a separate report by VA (Employment Histories Report Final Compilation Report, Associates Inc. September 28, 2007) shows a rise in the figure for those who stopped looking for work because they couldn’t find jobs or returned to school from just 10 percent of young veterans in 2000 to 23 percent in 2005. The VA even reports a higher percentage of unemployed veterans, 18 percent of veterans aged 20-24 who sought jobs within one to three years of discharge were unemployed.

According to the Department of Defense’s (DOD’s) Manpower Data Center, since 9/11, over 1.7 million U.S. service men and women have deployed in support of OIF/OEF.  Rotations of troops returning home from Iraq and Afghanistan are a common occurrence.  Military analysts and government sources say the military deployments, then the reintegrationof combat veterans into the civilian society, is unlike anything the nation has experienced since the end of the Vietnam War.

The DOD has reported that in the support of OIF/OEF from FY 2002 to February 29, 2008:

• 2.6 million deployment events;
• 1.7 million service members have been deployed;
• Currently there are 258,000 service members  deployed;
• 600,000 service members have more than one deployment;
• 468,591 National Guard and Reservists have been deployed to Iraq or Afghanistan since 2001
• Out of 600,000 service members with more than one deployment, 115,000 are members of the Reserve components

DEPARTMENT OF VETERANS AFFAIRS HOMELESS SERVICES

The signs of an impending crisis are clearly seen in VA's own numbers.  Under considerable pressure to stretch dollars, VA estimates it can provide assistance to about 100,000 homeless veterans each year, 70,000 are currently receiving services in specialized VA homeless programs.  Yet, this accounts for less than 20 percent of the more than 400,000 who will need supportive services during the course of a year.  Hundreds of community-based organizations nationwide struggle to provide assistance to the other 80 percent, but the need far exceeds available resources.

Opponents of additional funding of homeless veteran programs frequently state that homeless veterans are all rated a Total Disability based upon Individual Unemployability (TDIU) and receive 100 percent compensation payments.  They further argue that because these veterans are already receiving enough money to put them on their feet, more funding is not needed.  In stark contrast to this absurd claim, VA reports that only 41 percent of homeless veterans are receiving compensation and pension benefits and even then it cannot be assumed that all of those 41 percent are receiving the full 100 percent Total Disability they often need. 

In addition to this low number of homeless veterans receiving monthly benefit payments, many of their claims remain in the enormous backlog of all veteran claims.  Identification and expedition of claims by homeless veterans has the potential to allow for a quicker adjudication process and ultimately, money to veterans and in turn assisting their transition to a more stable housing situation. VA has expedited 21,800 claims for homeless veterans since 2003 and approximately 44 percent of compensation claims and 77 percent of pension claims of homeless veterans have been approved annually.

VA HOMELESS PROVIDERS GRANT AND PER DIEM PROGRAM REAUTHORIZATION AND APPROPRIATIONS

In 1992, VA was given authority to establish the Homeless Providers Grant and Per Diem (GPD) Program under the Homeless Veterans Comprehensive Service Programs Act of 1992, Public Law 102-590.  The GPD Program is offered annually, as funding permits, by VA to fund community agencies providing service to homeless veterans. VA can provide grants and per diem payments to help public and nonprofit organizations establish and operate supportive housing and/or service centers for homeless veterans.  VA’s Central Office staff needs additional full-time employees to expand the program to reach even more participants. 

Funds are available for assistance in the form of grants to provide transitional housing (for up to 24 months) with supportive services.  Funds can also be used for supportive services in a service center facility for homeless veterans not in conjunction with supportive housing, or to purchase vans.  VA can provide up to $33.10 for each day of care a veteran receives in a transitional housing program approved under VA’s Homeless Providers GPD Program.  This token amount is far too little to fully assist a single veteran.  Finally, all providers must justify that their costs are attributed to veterans.

The American Legion is concerned with the ebb and flow of the homeless veteran population and asserts that measures should be enacted that allows a provider to always maintain a space for a homeless veteran.  Due to the transient and drifting nature of chronically homeless veterans, seasonal weather changes that allow more homeless veterans to venture outside, and other factors, there are periods when GPD providers may have an empty bed.  If a provider has an empty space dedicated for a homeless veteran under the program and, due to factors out of their control, a bed remains empty for a period of time, they have occasional difficulty justifying the grant and therefore may be penalized.  

The application process for grants must be streamlined.  The accounting process currently required for reimbursement is in constant flux during the year and the strain of accuratel reporting is placed on small community-based providers.  Additionally, there are other Federal programs that can provide monetary assistance to homeless veterans, yet the GPD does not allow these funds to be used as a match for VA programs. This often discourages participation.  However, other Federal programs do allow VA funds to be used as a match.  VA’s GPD program requires unique flexibility due to the nature of the funding, homeless veteran providers, and homeless veterans.

VA reports success in their performance measures to increase access and availability to both primary health care and specialty care within 30 and 60 days.  Short-term assistance, between 30 to 60 days, is imperative in order to prevent chronic homelessness.  Many times, a veteran may be in transition due to loss of a job, a medical problem, poor finances, or some other factor and only requires a short-term transitional shelter that can be provided by the GPD program.  In FY 2006, VA reported that they provided transitional housing services to nearly 15,500 homeless veterans.   It is imperative that the number of veterans served by transitional housing services continues to increase and be adjusted to meet the demand.   The consequences of inaction will be a stagnant, steady number of homeless veterans rather than a decrease of the number of homeless veterans.

The American Legion strongly supports funding the Grant and Per Diem Program for a five-year period (instead of annually) and supports increasing the funding level to $200 million annually.

DEPARTMENTS OF HOUSING AND URBAN DEVELOPMENT - VETERANS AFFAIRS SUPPORTIVE HOUSING (HUD-VASH) HOMELESS PROGRAM

The American Legion supports mandatory funding for the Departments of Housing and Urban Development (HUD)-Veterans Affairs Supportive Housing (HUD-VASH) Homeless Program.

The Homeless Veterans Comprehensive Assistance Act of 2001 (P.L. 107-95) codified the HUD-VASH Program, which provides permanent housing subsidies and case management services to homeless veterans with mental and addictive disorders.  Under the HUD-VASH Program, VA screens homeless veterans for program eligibility and provides case management services to enrollees.  HUD allocates rental subsidies from its Housing Choice Voucher program to VA, which then distributes them to the enrollees.  A decade ago, there were approximately 2,000 vouchers earmarked for veterans in need of permanent housing. 

The American Legion is pleased to see $75 million appropriated for the HUD-VASH program which will create 10,000 units of section 8 housing dedicated for veterans and their families.  An influx of 300 VA staff will assist the residents of these units by providing case management.

CHANGING DEMOGRAPHICS OF TRADITIONAL HOMELESS VETERANS

The Federal definition of a homeless person is: “An individual who (1) lacks a fixed, regular, and adequate nighttime residence and (2) has a primary nighttime residence that is (a) a supervised, publicly or privately operated shelter designed to provide temporary living accommodations (including welfare hotels, congregate shelters, and transitional housing for the mentally ill), (b) an institution that provides a temporary residence for individuals intended to be institutionalized, or (c) a public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings.” McKinney Act (P.L. 100-77, sec 103(2) (1), 101 stat. 485 (1987).

No longer can a homeless veteran be easily identified as the McKinney Act defines.  The American Legion is not advocating for an expanded definition of a homeless individual, but rather indicating that this country needs to help those normally financially secure veterans who continue to lose their homes. 

The stereotypes and faces of veterans on the road to homelessness are drastically changing.  Professionals, the middle-class, blue collar and white collar veterans, students, and more middle-aged veterans are all affected by the current housing and economic crisis.  Each day, external factors are affecting a more vulnerable population and thus creating different tiers and descriptions of those who are homeless veterans.  Living with neighbors and relatives, staying short-term in hotel rooms, and in vehicles are the realities of those who are unemployed and homeless.  To quote a veteran who wishes to remain anonymous:  “I’ve been crashing on my buddy’s couch for 6 months while trying to find a job.”  It is important to note that this veteran is not accounted for in the classic definition of homeless.

HOUSING COST BURDEN AMONGST VETERANS

The American Legion is very concerned with the ever-growing gap of housing expenses versus veterans’ income.  The National Alliance to End Homelessness (NAEH) report, “Vital Mission, Ending Homelessness Among Veterans” reports that currently, over 930,000 veterans pay more than 50 percent of their income towards housing, be it renting or owning a home.  (476,877 rent/ 453,354 own).

“There is a subset of veterans who rent housing and have severe housing cost burden (paying more than 50 percent of their income towards housing costs).  Of all veterans who rent housing (476,877), approximately 10 percent pay more than 50 percent of their income for rent. Of those with severe housing cost burden, 20 percent are very low income (have incomes at or below 50 percent of area median income) and 67 percent are extremely low income (have incomes at or below 30 percent of area median income). More than half of veterans with severe housing cost burden (55 percent) fall below the poverty level and 43 percent are receiving foods stamps. Using bivariate analysis, the National Alliance to End Homelessness found a number of statistically significant differences among veterans with severe housing cost burden and those paying less than 50 percent of their income for housing.”

The 2006 American Community Survey  (ACS) conducted by the US Census Bureau reports that the median monthly housing costs for mortgaged owners was $1,402, non-mortgaged owners $399, and renters $763. Approximately 37 percent of owners with mortgages, 16 percent of owners without mortgages, and 50 percent of renters in United States spent 30 percent or more of household income on housing. The 2006 ACS further states that the median income for veterans in the past 12 months of their survey was $34,437. 

Numerous mortgage consultants and financial advisors recommend adhering to the 28 percent/ 36 percent debt to income qualifying ratio.  That is, in order to safely own a home or rent, an individual should be within the 28/36 range in order to withstand emergency financial situations without becoming delinquent in payments.  Using his ratio, the median monthly cost of $1,402 for housing expenses is approximately $400 greater than what the average veteran can afford. 

Debt to Income Example (28/36 qualifying ratio model)

Yearly Gross Income = $34,437 / Divided by 12 = $2,870 per month income

$2,870 Monthly Income x .28 = $803 allowed for housing expense

$2,870 Monthly Income x .36 = $1,033 allowed for housing expense plus recurring debt

The VA Loan Guarantee service has a very strong program, but even they report that the median income of all of their veteran loan holders is $60,276, or an average of $5023 a month.  However, they have reported a drop in loan initiations every month since 2003 (50,000 in August 2003 to 10,000 at the end of FY 2007).  This could indicate that recently discharged and younger veterans may not be able to afford a home even using the VA Loan Guarantee program. Research should be conducted to ascertain the average age of a veteran homeowner and the correlation between the median income, affordability of homes, and the impact of the VA Loan Guarantee Program.

CONCLUSION

The Homeless Grant and Per Diem program is effective, but should be augmented with additional HUD-VASH Program vouchers.  With 300,000 service members becoming veterans each year the availability of transitional housing must be increased.  Our observations have shown that when the GPD program is allocated money, they are successful in distributing grants and administering their program and are only limited by the total dollar amount of funds available.

Affordable housing, transition assistance, education, and employment are each a pillar of financial stability.  They will prevent homelessness, afford veterans to compete in the private sector, and allow this nation’s veterans to contribute their transferable military occupational skills and education to the civilian sector.  Homeless veterans have answered the call of duty for this country and are not asking for a hand out, but rather a hand up.

The American Legion looks forward to continue working with the Committee to assist the nation’s homeless veterans and to prevent future homelessness.  Mr. Chairman and Members of the Committee, this concludes my statement.