Laura Bassett
Huffington Post
WASHINGTON — Homelessness has significantly risen in the U.S. as a result of surging foreclosures and joblessness caused by the recession, but a new federal program designed to nudge people back from the brink of life without shelter is on the brink itself.
A new report, released by the National Law Center on Homelessness and Poverty on Jan. 26, found that a homelessness prevention and re-housing program funded by the 2009 stimulus bill needs more money to meet rising need. Instead, the program will likely be left out of the new federal budget.
In response to the 20 percent increase in foreclosures that occurred from 2008 to 2009, the Department of Housing and Urban Development used $1.5 billion in American Recovery and Reinvestment Act funds to create the Homelessness Prevention and Rapid Re-Housing Program (HPRP), which helps keep people in their apartments by subsidizing their rent.
The program is quickly running out of money, however, and having a number of administrative difficulties trying to keep up with demand. In Detroit, for instance, about 50,000 people filled out applications for only 3,500 grants on the first day the money was available, and a number of major U.S. cities have already used up more than 80 percent of their allotted funds, which were supposed to last until 2012.
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