As of Friday, 1,540 homeless families were living in motels throughout the state — more than double the number at the same time last year and by far a state record. As recently as fiscal 2007, before the recession, no homeless families were living in motels, where the state must spend an average $2,400 a month to house families when shelters run out of space.
To pay for the sharply rising costs, administration officials project they will spend a record $161 million this fiscal year on emergency assistance to house homeless families, more than double what the state spent in fiscal 2007.
They have already boosted the number of beds at state shelters.
Officials say the proposed new system will reduce the number of families living in motels to zero by the end of fiscal 2012, and markedly cut costs.
The administration has proposed hiring 120 social workers, housing specialists, and other contractors to focus about 30 percent of the state’s emergency assistance budget on covering much of the costs of housing families in temporary apartments or providing the cash subsidies to help families threatened with eviction.
The new program, called HomeBASE, which has been approved with varying language by both the House and Senate, will provide up to $4,000 in annual cash assistance for qualifying families who need help paying previous months’ rent, utility bills, medical payments, or offsetting the expenses of families they’re living with.
In addition, the state may provide rental subsidies for apartments at no more than 80 percent of the fair-market rent in their communities, which in Boston would be less than $1,100 for a two-bedroom apartment. Qualifying families — those with incomes below 115 percent of the federal poverty limit — will be required to cover the costs of up to 35 percent of their income for rent and utilities.
