Downtown homeless receive major boost

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Local government agencies, charities and business leaders gathered at the Japanese American Museum in Downtown Los Angeles. They announced a $5.2 million dollar initiative aimed at kick starting stalled housing projects, in an area with an estimated 10,000 homeless people.

Councilwoman Jan Perry commended the efforts

"Your 5.2 million dollar bridge, or I'll rather call it a survival fund, could not have come at a better time, I'm deeply deeply grateful."

The Supportive Housing Recovery Initiative will provide affordable housing and support services to vulnerable and mentally ill adults. The aim is to help the chronically homeless live stable lives.

The Conrad N. Hilton Foundation donated 4 million dollars. Senior Program officer Bill Pitkins says supportive housing is a cost effective solution to homelessness.

"Supportive service, if they have mental health issues, or they have substance abuse issues, or other health issues they are getting those services because they will need them often to be stable or remain in that housing. It's much cheaper to do it that way actually then to have them on the streets and using the emergency room."

The donation is a short-term solution to fill the funding gap. Access to credit markets, and the poor economy are blamed for projects stalling. The Director of Corporation for Supportive Housing Ruth Teagues, explains why a similar project, Skid Row Housing Trust, succeeded.

"Its just luck, the Skid Row developers were justlucky effort to have gotten some major projects in the ground and completed before lighting struck."

The initiative will provide a mix of grants, low-interest loans and technical assistance to housing developers experiencing project delays.

Ken Van der Meeren, Annenberg Radio News .