8 June 2003

Some Thoughts On The Homeless Problem

Responses to this Musing begin here.

George Carlin has dedicated his life to pointing out the flaws of the human race wherever he can identify them. Fortunately for us his self imposed mission has provided us with no end of laughter over the years.

Besides being a terribly funny man, George is also extremely intelligent and has made some very valid points.

I was sitting down a few weeks ago listening to some of his routines when I heard him make mention of the homeless problem.

It is his contention that the whole reason Governments are so slow to apply possible solutions to this ongoing problem is because there isn't any way for the politicians to make any money off of it. After all, how can you make money off of people who don't have any money to begin with.

On the one hand it can be said that George is a very cynical man, and that his observations about politicians and businessmen going out of their way to gouge their constituents and customers a little deeper to line their pockets a little thicker is the result of observing a select few members of a rather large population of the human race. Therefore, his contention that politicians and businessmen do what they do simply to make themselves more money is incorrect because it doesn't take into account those politicians, however few they may be, who actually do what they do to try to make their countries a better place.

On the other hand it has been demonstrated many times in the past that our governments are not above raising taxes and imposing user fees for government services any time they think that they need the extra money, whether they actually do or not. One need only look at the National Energy Program that the Canadian government imposed some years ago. I still fail to understand the reasons why the NEP was brought into play, but I witnessed it's consequences first hand. Scores of jobs in a variety of industries, including construction, were lost. I don't know about any of the other western provinces that were nailed by the program, but I know that Alberta was years in recovering from the consequences of the National Energy Program. And the more I think about it the less I am certain that my family was ever able to recover from it either. But that's another story.

On the gripping hand, though, he does have a point, because the only way that the government can contribute anything to the homeless problem is to spend money on it. The government must help fund the construction of low cost housing, and must also provide money to pay for rent subsidies for families and individuals. While it has been demonstrated in the past that any government is capable of spending money at the drop of a hat they usually like to be able to see some kind of return on their investment, and there simply isn't any return to be made on this kind of operation. All you're doing is spending money to help make peoples lives better and the only return you're getting on that kind of investment is a good feeling. Good feelings don't enter into a budget, as accountants have no way to attach dollar values to emotional fulfillment.

In Edmonton we have an organization called the Capital Region Housing Authority, which provides low cost subsidized housing to people who need it. The rent you pay is based upon how much money you make, so you always know that what you're paying will be able to fit your budget.

I believe very strongly in this organization, for I've always thought that their mission was a good one. Given that they are partially backed by the provincial and municipal governments it also shows that our politicians are making some kind of attempt to do something about this continuing problem.

The real problem with Capital Region Housing, though, is that they're overwhelmed through no fault of their own. The last time I had dealings with them I was told that there was at least a three year waiting list for low cost subsidized housing, and with the way rents are skyrocketing around here I can only see that getting worse before it gets better.

I understand the reasons why there is such a long wait for their services, but the simple fact of the matter is that there are people out there who need what the Authority has to offer, and they need it now, not three years from now.

It seems to me that what is needed is a way to generate more money on a regular continuing basis for the Authority, money which can be spent on low cost housing and on rent subsidies.

Increasing the amount of government funding is probably out of the question, as I think that the goverments are already spending more money on the Authority than they really want to.

In the meantime the province of Alberta has fallen on some hard times in the last fifteen years or so. The last recession hit us pretty hard and in a lot of ways I don't thing we've recovered completely from it. A certain amount of governmental belt tightening has had to be done and as a result a number of essential services which really, in my humble opinion, should not be cut were cut out of necessity.

Health care was one of these services.

As a result of governmental budget cuts hospitals were forced to close a number of beds, and in at least one case that I know of an entire hospital was shut down.

Now the Charles Camsel Hospital sits abandoned. It is patrolled regularly by a small security detachment tasked with keeping the premises safe from intrusion by unwanted individuals.

So here we have a large abandoned building which could be, with a minimum amount of effort, renovated to serve any number of other purposes. The building sits on a rather large piece of property in a residential neighborhood.

The building has been abandoned for years. The property is owned by the Government. Every now and again you hear rumors about the government doing something with the property, but nothing ever comes to pass. I don't have a problem understanding that. They simply do not want to spend the money. Who could blame them?

However, that property could serve as the nucleus for a not for profit business venture which could help revitalize the Capital Region Housing Authority and make a significant dent in their overly large waiting list.

The first step to making this happen would be to purchase the land from the government. Given that the company purchasing, or even leasing, the land would be a not for profit organization the terms for gaining possession of the property should be reasonably favorable. There is some precedent for this. Edmonton Northlands occupies a rather large section of land in northeast Edmonton and they pay the city the sum of one single solitary dollar per year for the use of the land. Or at least that's what they were paying when I worked for Northlands. I would have to do some research to see what they're paying now.

The point is, though, that it should not be difficult to gain possession of the land if someone really wanted to badly enough and had the resources to make it happen.

Step two would be to renovate both the hospital and the property. Given the size of the building there are any number of things that could be done with it. However, given that the building is located in a residential neighborhood, I think that the best thing to do with the building would be to renovate it into an apartment complex. This would be the most expensive part of the operation. However, by renovating the hospital into an apartment building you are pretty much ensured a steady income from the apartment complex alone. Once the renovations were complete and paid for and the apartments were leased, then the proceeds made from this operation could be devoted to the construction of low cost housing which would then be donated to the Capital Region Housing Authority.

But even if you renovate the hospital into an apartment building there's still a large amount of land unaccounted for.

So why not build a strip mall around the building?

It's logical enough. Strip malls are the lifeblood of a residential area, as they provide a location for merchants and service providers to hawk their wares and make their profits. Given the amount of available land it is conceivable that a sizeable strip mall could be built around the renovated hospital. This would provide the neighborhood with an economic shot in the arm. With the completion of the strip mall businesses would have the opportunity to expand into some choice territory. New construction equals new jobs. By the same token new businesses also equals new jobs. You can't lose.

This is the good part though.

The apartment block and the strip mall would be managed by the same not for profit company that commissioned the renovation of the hospital and the construction of the strip mall, thus ensuring that all proceeds from apartment rental and from retail space rental would be earmarked for the construction of more low cost housing which would be donated freely to the Capital Region Housing Authority.

It makes perfect sense. By managing both the residential and commercial aspects of the renovated property the company ensures that they have more money coming in and can make a larger profit. Being a not for profit organization every single red cent of profit they make has to be earmarked for some charitable purpose. The more money made in profits the more low cost housing could be built. The more low cost housing is built and donated to the local Housing Authority the shorter their waiting list gets.

The shorter the waiting list gets the greater the probability that people in need of low cost housing can be taken care of in something resembling a reasonable amount of time.

It's all there. The opportunity is there. The plan is there. All it needs is someone with the resources and the political acumen to make it happen.

It's not a cure for the homeless problem, but if someone were to actually do something along these lines it would go a long way to easing the pain of people who find themselves on the streets because they can't afford to pay ever increasing rental costs.

Not a bad idea, eh? Sometimes I amaze even myself ...

From Wayne S. Garmil on alt.callahans:

You know, I read the start of this thread and was all set to rant and rave due to my personal experience with some homeless friends.  But I am *VERY* glad to see you went off in an entirely different direction, seeing the heart of Mr. Carlin's suggestions and then identifying an
instance where it would be applied.  Well done!

This also makes me think I should be looking at the same thing locally in Boston.  Add this to the Wild Card Lottery Winnings Compound that I intend to build for myself and a few friends who need a stable living situation.  I did not think about adding a general low cost housing
building to the plan, but I see that I should.  Or better, put that building in another location that is centrally located (my compound would be located off the beaten path on very private land, since that fits the needs for some of my friends).

Now I just need to win the lottery for enough money to follow-through on these plans...