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Healey plans to phase out hotel shelters, limit family stays to six months in shelter system overhaul

Lt. Gov. Kim Driscoll testifying before the Joint Committee on Bonding, seated with Administration and Finance Secretary Matthew Gorzkowicz and Housing Secretary Edward Augustus.
Lt. Gov. Kim Driscoll (right) testifies before the Joint Committee on Bonding about the administration’s housing bill on Tuesday, April 2, 2024, alongside Administration and Finance Secretary Matthew Gorzkowicz (left) and Housing Secretary Edward Augustus (center). (Photo credit: State House News Service).

BOSTON — On Friday, November 22, 2024, the Healey-Driscoll Administration announced that it was making changes to the state’s Emergency Assistance (EA) family shelter system in order to decrease costs including phasing out the use of hotels to shelter migrants.

Since fiscal year 2023, Massachusetts has allocated approximately $325 million annually to the Emergency Assistance (EA) shelter program, sufficient for a system designed to serve about 3,500 families. However, a surge in demand prompted the expansion of the program to support up to 7,500 families. To address the increased costs, the legislature approved an additional $418 million in supplemental funding, raising the total budget to approximately $743 million annually, according to the Report of the Special Commission on Emergency Housing Assistance Programs​.

According to a statement from the Healey-Driscoll Administration, over the last year and a half, the administration has “taken extensive efforts to control the size and cost of the family shelter system,” by maintaining around 7,500 families.

“Without these efforts, the system was projected to reach 13,000 families by June 2024 and would be even larger today,” the Healey-Driscoll Administration said in its statement. Later adding, “Additionally, up to 40 families were seeking shelter per day. In recent months, that average has been closer to 15-18 families per day, and approximately 65 percent are long-term Massachusetts families.”

Since November 2023, the administration has facilitated work authorizations for over 6,100 shelter residents, with more than 4,300 securing jobs and over 1,550 enrolling in ESOL classes, the Healey-Driscoll Administration said in its statement. These initiatives have enabled over 3,800 families to exit shelters in the past year, including nearly 350 families who successfully transitioned out of Temporary Respite Centers (TRCs) since August 1. Additionally, investments in prevention and diversion services have helped more than 700 families avoid entering EA shelters, allowing them to stabilize and regain their footing.

“In recent years, the state’s family shelter system has grown to be increasingly unsustainable. We’ve taken significant action to rein in its growth, and we’ve seen tangible results. The size of the system has remained stable for the past year, we no longer have families relying on Emergency Departments or the airport for shelter, and all shelter sites currently have a service provider instead of relying on the National Guard,” said Governor Maura Healey. “More needs to be done so that Massachusetts taxpayers do not continue to be on the hook for this federal problem. The changes we are making will reduce costs, phase out the use of hotels and better meet the needs of all families.”

Tailoring Shelter Models to Meet Family Needs

Starting December 10, families will be assessed based on their risk and needs and placed into one of two pathways: the Rapid Shelter Track or the Bridge Shelter Track. Families in the Rapid Shelter Track are expected to transition within 30 days, while those in the Bridge Shelter Track will have stays of up to six months, contingent on legislative approval.

1. Rapid Shelter Track

  • Designed for families capable of quickly securing permanent housing.
  • Provides 30 days of intensive support at Temporary Respite Centers (TRCs).
  • Services include:
    • Housing stabilization through HomeBase, a program that provides families at risk of homelessness or transitioning out of shelters with financial assistance to secure stable housing.
    • Assistance with work authorizations, job placement, and English classes.
  • Extends the previous TRC limit from five business days to 30, accommodating time needed for lease agreements and transitions.
  • Families in this track cannot access Bridge Shelter services.

2. Bridge Shelter Track

  • Tailored for higher-risk families with complex needs, such as those with late-term pregnancies and/or intellectual or developmental disabilities.
  • Offers up to six months of support (pending legislative approval).
  • Goals align with the Rapid Shelter Track:
    • Transition to stable permanent housing.
    • Access work authorization, employment, and English language resources.

“These changes will prioritize shelter system services around risk and need,” the Healey-Driscoll Administration said in its statement. “For example, if the parents are able to work, they will be better suited for the Rapid Shelter Track because having a job and paycheck will help them move into stable housing. If a family has complex risks or needs, like a long eviction history or barriers to work, they may need more support to find permanent housing and so would be directed to the Bridge Shelter Track.”

In a statement, the Healey-Driscoll Administration announced plans to phase out hotels and motels as shelter options, pointing to their high costs and limited suitability for promoting long-term stability for families. These facilities often lack adequate space for essential services, leaving families isolated and hindering effective support from case managers, the administration said.

“As Chair of the Special Commission on Emergency Housing Assistance Programs, I heard clearly a consensus around making shelter brief, rare and non-recurring,” Lieutenant Governor Kim Driscoll said in the statement from the administration. “Our administration is taking the guiding principles set out by that bipartisan Commission and applying them to policy changes that will ensure we no longer have a one-size-fits-all system. This will better allow us to meet the unique needs of families, help them get into stable housing more quickly and lower the cost to the state.”

The transition will take place over fiscal years 2025 and 2026 as the administration shifts to a more cost-effective and supportive shelter system. The closures will be carried out in stages, in consultation with providers, to minimize disruption. Families and local communities will receive advance notice of planned closures, and providers will work closely with families to secure safe and stable housing before sites are decommissioned​.

Emphasizing Exit and Diversion Strategies

To help families transition into permanent, stable housing more quickly, the administration plans to propose legislative changes to the HomeBASE program. Under the proposed changes, families would be eligible for up to $25,000 in rental assistance annually for two years, replacing the current benefit of $30,000 total over two years or $45,000 over three years.

The administration is also expanding programs to assist families with one-time costs associated with moving from a shelter. Over the past year, approximately 3,800 families, including both Massachusetts residents and immigrant families, have exited shelters with support from HomeBASE and other rehousing assistance programs.

Ensuring Fiscal Responsibility

To address the rising costs of Emergency Assistance (EA), the administration will file a supplemental budget requesting funds for the remainder of Fiscal Year 2025. These funds would be allocated to a newly created Family Shelter and Services Reserve to ensure funding stability without affecting programs supported by the annual budget.

The proposed budget will include reducing the maximum length of stay in EA shelters from nine months to six months and revising extension criteria to expedite rehousing. These adjustments aim to help families achieve stability faster, allowing the system to serve more families.

The budget will also propose increasing the annual HomeBASE rental stipend from $15,000 to $25,000 per family to align with current rental market conditions. To ensure the program remains sustainable, the benefit would be capped at two years under the proposed changes.

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