This 1 Neat Trick Can Dramatically Reduce Homelessness

Sarah’s situation was one we see a lot in eviction court. Hers was among the 3 of every 4 households whose incomes are low enough to qualify for a federal housing subsidy but do not receive it because we underfund the programs so dramatically. So Sarah had been living for a few years in a dilapidated house where her absentee landlord charged her well below market-rate rent—just $650 a month. The implicit bargain was that Sarah would not complain to the health department or anyone else about the caved-in ceilings, mold, broken appliances, and mice that came in through the many holes in the house’s rotting exterior.

That unholy arrangement unraveled when Sarah’s landlord sold the property to a buyer who discovered Sarah had no written lease and wanted to demolish the house. We met Sarah (not her real name) in court after she had ignored multiple notices to move.

“I know the judge is going to order me out of there,” she told us. But she had looked around at available rental units and couldn’t find anything for less than $900 a month. Which was a problem, because Sarah’s entire monthly income was only a few dollars more than that. “How am I supposed to live now?” she asked.

It's a good question.

A significant portion of our nation’s unhoused population are SSI recipients, limited to an income that doesn’t come close to covering the costs of housing, food, transportation, clothing, and other necessities.

Like 7.5 million other people in the United States, Sarah is a recipient of Supplemental Security Income, known as SSI. SSI is a federal program for persons who have little to no income or assets and are living with severe disabilities that leave them unable to work. Sarah, 67 years old, is legally blind, uses a wheelchair, and has multiple other chronic, debilitating conditions. That allows her to qualify for SSI.

But, to her point, it doesn’t allow her to live.

Sarah’s monthly SSI check is the maximum program amount of $967. Couples who are both eligible for SSI are maxed out at $1,450 per month. SSI recipients have to comply with tight restrictions on how much income they can make or assets they can own. Most are like Sarah, fully unable to work and with no other income. So they are condemned to poverty.

As Sarah was on the cusp of learning, SSI often condemns people to homelessness, too. A significant portion of our nation’s unhoused population are SSI recipients, limited to an income that doesn’t come close to covering the costs of housing, food, transportation, clothing, and other necessities.

“I’ve had many clients who received a monthly SSI check but still can’t afford the rent,” says Jesse Rabinowitz of the National Homeless Law Center. “When there is no housing, people have no choice but to sleep outside.” That grim reality of sleeping outside brings with it a significant chance of death from exposure, assault, and untreated health crises.

Mountains of evidence point to the main cause of homelessness being the problem faced by Rabinowitz’s clients and ours: a straightforward inability to pay monthly rent.

“I want to be absolutely clear that the reason people become unhoused is that they do not have access to housing that they can afford,” says Brian Goldstone, anthropologist and author of the new book, There is No Place for Us: Working and Homeless in America. “The answer isn’t addiction or mental illness; it’s that they didn’t have access to housing they could afford.”

SSI: Hard to Get, Hard to Live on Once You Get It

As Sarah was learning, life on an SSI check means there is essentially no safe housing that she can afford. It wasn’t supposed to be this way. When Congress created the SSI program in 1972, the stated purpose was to “provide a positive assurance that the Nation’s aged, blind, and disabled people would no longer have to subsist on below poverty level incomes.” But the current SSI maximum benefit is well below the federal poverty line. The official poverty level itself is an underestimate of the costs incurred by people like Sarah who pay a “disability tax” of higher medical, transportation, and housing costs. That math is not mathing in particular for the women and persons of color who make up a disproportionate number of SSI recipients.

Because SSI in theory could ensure that all who cannot earn significant wages would receive a monthly stipend, it is sometimes compared to a universal basic income. But no one who has ever applied for SSI confuses the two. The program’s onerous financial and disability eligibility requirements make damn sure that there is nothing “universal” about SSI income. Less than half of all SSI applications are granted—less than a third of them at the initial application stage.

My and other service providers’ experience is that these systematic refusals occur despite the fact that the majority of SSI applicants we see are clearly eligible for the program. But the same disabilities and poverty-caused barriers that lead them to need SSI contribute to them getting snared in the red tape of the application process.

Just as we know that housing is the best response to homelessness, countless research studies confirm that increased income is a silver-bullet remedy for poverty.

Those who do successfully get enrolled in SSI face restrictive rules that all but guarantee they remain destitute. They are not allowed to receive more than $20 in cash or in-kind assistance from family or others. If a couple with disabilities marry, their combined monthly benefits are cut. Caps on savings leave SSI recipients unable to respond to life’s unexpected expenses like an uncovered medical cost or car repair. Ironically, this paternalism comes at a significant cost to taxpayers. SSI benefits are only 4% of the Social Security Administration’s outlay, but policing the program’s many recipient restrictions means SSI takes up 38% of the agency’s administrative costs.

SSI’s low benefit levels and many restrictions have been heavily criticized by poverty research and advocacy groups like the Center on Budget and Policy Priorities, Center for American Progress, and Brookings Institution. The organization Justice in Aging has long pushed for SSI reform.

“We need to improve the program by raising benefit levels, reducing barriers to access, and making it easier for people to afford the daily costs of living,” says Tracey Groninger, Justice in Aging’s director of economic security.

Legislation proposed in the last Congress aimed to do just that. The Supplemental Security Income Restoration Act, sponsored by 36 House members and endorsed by over 100 organizations, would have raised the SSI monthly benefit amounts to the federal poverty level and ratcheted back the prohibitive asset and outside income restrictions. In this Congress, the newly-introduced Savings Penalty Elimination Act would allow SSI recipients to keep more savings while retaining their eligibility.

The benefits-increase bill did not succeed, and has not yet been reintroduced. Hopefully, that changes soon. Just as we know that housing is the best response to homelessness, countless research studies confirm that increased income is a silver-bullet remedy for poverty. Increasing SSI benefits to a level that covers basic needs would have a dramatic effect on Sarah’s life, the lives of millions of others, and all of our communities.