United Way cuts funding for homeless shelters to invest in permanent housing instead

ORLANDO, Fla. — United Way is making a major change in how it invests money from donors.

After decades of investing in agencies that offer services like shelters for the homeless, United Way wants to invest in permanent homes for people instead.

On any given night, the Salvation Army in Orlando is at capacity, with close to 200 men, women and children needing a place to sleep.

But soon, there will be a major shift in the funding--nearly $200,000--that helps keep those doors open.

United Way invested $186,402 to house the homeless at Salvation Army last year.

The same is happening at the Coalition for the Homeless, where United Way invested more than $200,000 last year.

At the Rescue Outreach Mission in Sanford, which is Seminole County's only emergency shelter, $95,405 will be redirected elsewhere.

“It's never easy for any of us, but I applaud Central Florida and United Way for understanding the importance of housing first,” said Shelly Lauten, the CEO of Central Florida Commission on Homelessness.

Lauten said United Way's move is another step in the region's shift from transitional housing services to the "housing first" model, where the focus is on long-term housing and support services to keep people from returning to the streets.

“The data supports that there's less recidivism and its cheaper for our community,” said Lauten.

It also brings another set of challenges, like where agencies will find affordable housing.

“As we are moving people into housing, we are running into the issue that there's not enough affordable housing in our region, so that will be a critical role for the commission moving forward,” Lauten said.

In spite of the challenges, the United Way is committed to making "housing first" work.

Officials with the three agencies losing funding said they are already working with other partners to reduce the impact on current programs and services, while they cope with making the shift.

Cox Media Group