The state has proposed phasing out the motel emergency housing that has provided shelter to thousands of Vermonters during the pandemic.
As of July 1, about 700 people — mostly single adults without disabilities — will no longer be eligible for the motel rooms that have been available since the start of the pandemic. They’ll receive about $1,500 per household to help pay for shelter.
The plan outlined by a state working group would be the first step in reducing reliance on motel rooms for Vermonters experiencing homelessness, a move that critics worry could leave people out on the street. State officials say it’s a necessary step to wind down a program that’s untenable to maintain in the long run.
“We’re moving from a crisis response to something much more sustainable for the long term,” said Geoffrey Pippenger, senior adviser to the commissioner for the Vermont Department for Children and Families.
Rep. Mary Hooper, D-Montpelier, chair of the House Committee on Appropriations, praised the proposal, adding that it will be a “monumental challenge” to help Vermonters move out of motel rooms after the pandemic.
Under the proposal, which was submitted to the Legislature on Monday, the state would tighten restrictions for its motel rooms in June and require motel guests to reapply the following month for their slots.
As of July 1, about a third of the 2,000 or so people in motels will no longer be eligible for a room. Those who the state considers vulnerable — families with kids, people over 60, individuals with disabilities and people fleeing from domestic violence or abuse — can apply for temporary, 84-day motel extensions, DCF commissioner Sean Brown said.
Families could continue to seek additional 30-day extensions if they can show they are seeking housing and working with a case manager.
Those who stay in motels would be expected to contribute 30% of their net income toward the cost of the rooms, Brown said, testifying Tuesday before the House Appropriations Committee. The state now pays an average of $97 a night per room and has used federal aid to foot the bill — more than $50 million — during the first year of the pandemic.
According to the plan, the state would return to its pre-Covid-19 emergency housing rules by June 1, 2022.
As Vermonters experiencing homelessness move out of a motel, the state will provide each household with about $1,500 to help pay for new housing. Brown said he expects some people will be able to move in with friends or family. About 150 shelter beds will open up around the state this summer, as well. Others may be able to find housing, he said.
Likely, some people will end up on the street, though “our goal is as very few as possible,” Brown said.
He said the state plans to create about 5,500 new apartments as part of a separate affordable housing effort. About half of those homes would be set aside for people coming out of homelessness.
Vermont Legal Aid attorney Jessica Radbord, who served on the working group and agreed to the plan, criticized the stipulation that a family that violated motel rules could lose housing for 90 days.
“Leaving people with nothing for 90 days, especially when they fall into one of those vulnerable categories, seems a bit punitive,” she said.
In early July, the state will also end the mass feeding programs that delivered food to motels across the state. Brown said he expects other social service programs will open up, though “we recognize that food insecurity will still be an issue for some people in motels,” he said.
Not permanent housing
The plan marks a phaseout of the state’s most generous housing initiative ever.
When Covid-19 hit in March 2020, state officials opened up eligibility to nearly any Vermonter who needed housing. The total number of people housed in motels around the state rose steadily during the winter. Now, Vermonters occupy 1,938 rooms — filled by about 2,300 adults and 413 children, Brown said.
The motels ensured that Vermonters experiencing homelessness could quarantine and provided a buffer against the economic losses inflicted by the pandemic. But those living in the motels also reported fearing for their safety, with widespread drug use and frequent police calls. Some residents were unable to cook fresh food without kitchens in their motel rooms, and the lingering uncertainty of the program left them unable to plan for their futures.
“It was never intended to be permanent housing,” Brown said in an interview. “Living in a motel room for a year is incredibly challenging.”
[Related: ‘The best motel in Rutland’: Three days in Vermont’s emergency housing program]
Although the program was funded by the federal government, it was also pricey. A year of funding cost roughly $50 million.
The program in the next year will cost about $40 million, including $30 million for the motel rooms, $4 million in case management and other services, and additional cash for state staffing, motel security and the direct payments to people moving into other housing.
As the state reopens, motels are gradually decreasing the number of rooms available to Vermonters experiencing homelessness and prioritizing rooms for tourists. Brown estimated that, by next winter, about 650 motel rooms would be available for the program, down from about 2,000 that are currently occupied.
Last month, the Legislature assigned the working group of state officials, housing providers and advocates to come up with a transition plan by April 30. An initial proposal from the state drew backlash from housing providers and advocates.
On Tuesday, lawmakers praised the result, expressing optimism that it would reduce homelessness in the long term and provide a more sustainable system to help Vermonters find and keep housing. Legislators will have to approve the funding for the plan when they adopt the state budget in May.
The new proposal is “light years ahead of what the state used to provide,” said Rep. Dave Yacovone, D-Morrisville.
Others encouraged state officials to think creatively about how to make progress on addressing homelessness — rather than reverting to the pre-pandemic norm.
“The notion we’re going back to the way it was, we can’t think that way,” Hooper said.
