Researchers Release Policy Recommendations on Basic Income to Reduce Homelessness in Los Angeles
Social scientists say a guaranteed monthly income is a more efficient and cost-effective solution for the city’s homeless crisis.
Los Angeles, CA. (April 23, 2024) – The Homelessness Policy Research Institute (HPRI) at the University of Southern California has released policy recommendations that support a basic income for people experiencing homelessness. The authors argue that the current system ignores the potential of many unhoused people to solve their own housing problems with a little more money. If properly implemented, a basic income program could help move tens of thousands of currently homeless Angelenos into housing at a far lower cost than the current system.
Public policy in Los Angeles has focused almost entirely on short-term responses that still leave people homeless, and while progress is being made fighting against the shortage of affordable housing, virtually no attention has been given to income – one of the key factors that determines affordability. Prioritization is given to helping chronically homeless people with serious mental illness (SMI) or substance abuse disorders (SUD), but according to data collected in the 2023 Greater Los Angeles Homelessness Count on the reason for loss of housing only 27% cited a SMI or SUD problem while 73% cited other reasons, including 48% who blamed unemployment or another financial reason.
“More than 30,000 unhoused people in Los Angeles County are unhoused for one reason: they are just extremely poor,” said Gary Blasi, lead author and professor of law emeritus at UCLA. “The evidence shows that with a basic income subsidy, many can find a workable housing solution for themselves much faster and cheaper than our current very complex and expensive system.”
The recommendations cite several examples of data and pilot projects that point to a basic income solution. The Center for Homlessness, Housing and Health Equity Research (H3E) at USC began a randomized controlled trial in May 2022 to assess the impact of providing unhoused people in Los Angeles with $750 per month for 1 year, with initial results after only 6 months indicating that almost 30% of people receiving the basic income exited homelessness, approximately twice the rate of the control group which did not receive money.
“It makes sense to invest in permanent supportive housing using a housing first approach that is an evidence-based solution for people with high needs,” said Benjamin Henwood, co-author and director of H3E. “But we also think that cash subsidies would allow many more unhoused persons to access the informal housing market, such as shared housing arrangements, rooms rented in single-family homes or boarding houses, unpermitted ADUs and other alternatives for which no government funding is available.”
According to the researchers, Los Angeles spends a considerable amount of money to house a small fraction of those in need, and there is every indication that a very significant number of unhoused people can accomplish more for less.
Download the full policy brief.