A new approach to housing through Healthcare?
In California, the rising costs of housing and the complexities of healthcare have created a unique challenge for organizations aiming to support unhoused individuals. Recent efforts to bridge the gap between these sectors highlight innovative strategies and the impact of new funding programs.
The Challenge of Housing Creation
Creating housing in California is notoriously expensive. This financial barrier, coupled with the healthcare sector's limited experience in homebuilding, has traditionally restricted the scope of services for unhoused individuals, such as case managers or safe RV parking sites. However, the introduction of new funding opportunities has begun to change this landscape.
Akido Labs: A Health-Tech Pioneer
Los Angeles-based Akido Labs, originally a health tech startup from Y Combinator, exemplifies this shift. Known for launching medical clinics and street medicine teams in Central and Southern California, Akido recognized that without stable housing, their efforts to aid homeless patients were significantly hindered. The new incentive programs provided the crucial funding needed to venture into housing development.
The Bakersfield Project
Akido's involvement became vital when the Kern County Housing Authority faced budget shortfalls in their Bakersfield homeless housing project. Akido funded about 10% of the $3 million project, preventing significant delays. The project, a two-story development with 500-square-foot apartments, is notable in an area where new construction is rare.
Expanding Efforts in Housing
Akido is also backing a second 40-unit homeless housing project in Bakersfield, set to open in 2025. Their funding, covering about 20% of the $10 million cost, ensured the project's continuation. Akido is not only providing financial support but also advocating for design features beneficial to their clients, such as wheelchair-accessible outdoor spaces and suicide prevention designs.
Innovative Programs Across California
Sacramento's Landlord Engagement and Assistance Program
Sacramento County secured $3.2 million for its Landlord Engagement and Assistance Program, which helps place unhoused clients with private landlords while providing rental subsidies and eviction prevention services. This funding allows for a significant program expansion, potentially reducing homelessness in the area.
LA Care's Housing Initiative
LA Care, Los Angeles County's largest health plan, aims to open 1,700 homes to homeless residents by 2027 using incentive funds. Collaborating with the county, LA Care supports programs to buy and lease units, and cover expenses like security deposits. As of last year, 600 homes were made available.
Anthem Blue Cross's Contributions
Anthem Blue Cross is funding multiple homeless housing projects, including a 42-unit development in Tulare County and additional units in Kings and Alameda Counties. They are exploring further opportunities, such as purchasing single-family homes.
Sustainability and Future Challenges
The Need for Ongoing Funding
The intersection of housing and healthcare poses challenges. Healthcare providers often struggle with housing production logistics, while housing providers navigate complex patient privacy laws. The one-time grant nature of current funding raises concerns about the sustainability of these efforts. Without continuous financial support, these innovative programs risk stalling once initial funds are exhausted.
Private Equity and Investment
Murali from Akido hopes to attract private equity for future projects, but convincing investors of the business viability remains uncertain. The high cost of housing in California means that even substantial state funds can seem insufficient, highlighting the need for a sustained funding source to maintain and expand these initiatives.
