The most economically efficient way to end homelessness is to prevent its occurrence.

Financial assistance to prevent an eviction, mediation to address problems with a landlord or lender, and case management can all prevent individuals and families from becoming homeless. A 1991 study of eviction prevention programs by the U.S. Department of Health and Human Services found that the average cost to prevent family homelessness was one-sixth the average cost of a stay in a shelter. Yet a recent examination of the Continuum of Care planning process found that few communities dedicate substantial resources to preventing homelessness.

Among the innovations that are developing in the area of emergency homelessness prevention are:

• Enhancing coordination and information sharing among emergency assistance (including rent or mortgage and utility assistance) providers to maximize existing prevention dollars.
• Moving beyond one-time eviction prevention payments to providing time limited housing subsidies until families become financially stable.
• Combining emergency assistance with either time limited or ongoing case management to reduce future risk of homelessness.
• Targeting new homelessness prevention and emergency assistance efforts to the neighborhoods that a disproportionate number of people seeking shelter are exiting.
• Integrating homelessness prevention activities at intake sites for shelters to identify resources to prevent homelessness.”

*Excerpted from National Alliance to End Homelessness

Download Information on Prevention Strategies
U.S. Dept. of HUD 'Strategies for Preventing Homelessness'