Housing First and the Next Step Program

Is it money well spent?

Comprehensive Analysis of the Next Step Pilot Program’s 2024 Summary in Anchorage, Alaska

This note provides a detailed examination of the Next Step Pilot Program’s activities and outcomes in Anchorage, Alaska, throughout 2024, focusing on its housing-first approach to addressing homelessness. The analysis aims to offer a thorough understanding for stakeholders, policymakers, and community members interested in homelessness solutions.

Background on Housing First and the Next Step Program

Housing First is an evidence-based approach that prioritizes providing permanent housing to people experiencing homelessness, followed by supportive services, without preconditions like sobriety. In Anchorage, this philosophy was operationalized through the Next Step Pilot Program, launched in December 2023 as a pilot to demonstrate feasibility, aligning with the broader “Anchored Home 2023-28” strategic plan. The program is a public-private partnership involving the Anchorage Coalition to End Homelessness (ACEH), the Municipality of Anchorage, and cold weather shelter operator Henning Inc., with funding from municipal alcohol tax revenue, federal grants, and private/corporate donations.

Implementation and Operational Process

The program’s operational framework included several critical steps:

• Housing Assessment and Planning: Conducting person-centered assessments to match individuals with suitable housing.
• Enrollment in Coordinated Entry: Ensuring participants were enrolled via ACEH’s system for streamlined service delivery.
• Landlord Incentives: Offering financial incentives to landlords to encourage participation and mitigate risks.
• Support Services: Navigators assisted with document preparation, subsidy applications, and apartment viewings, while case managers provided up to one year of home visits and support (up to 200 hours per year, about 4 hours per week, in-client’s unit). A landlord liaison mediated any issues, and a risk mitigation pool managed potential challenges.

This structured approach ensured a holistic support system, aiming for long-term housing stability.

Achievements in 2024

The program’s progress in 2024 was significant, with detailed milestones as follows:

By February 2024, 50 individuals had been moved from the Alex Hotel, one of Anchorage’s main winter shelters, into permanent housing, with plans to close the Alex Hotel, Aviator Hotel, and 56th Avenue Shelter in the spring. By August 2024, the program had housed 177 people, surpassing its initial goal, with a remarkable retention rate of 96%, achieved at an average rate of housing one person every 1.2 days in the first half of 2024. The expansion to include individuals living in outdoor camps addressed a critical gap, with all 27 campers offered housing accepting, including those with criminal backgrounds and pets.

Cost-Effectiveness and Funding

An unexpected detail is the cost-effectiveness of the program, with housing and support costing an average of $85 per day per person, compared to $100 per day in emergency shelters. This was derived from a budget of $31,000 per person for one year ($31,000 / 365 ≈ $85 per day), often spent less, making it financially viable. The program received initial funding of $1.5 million from the city’s alcohol tax, with additional funding from federal grants and private donations, totaling approximately $4.6 million, supporting the housing of 150 people initially planned.

Community Impact and Support

The program involved partnerships with landlords, case managers, the Municipality, philanthropy, and community contributions, aiming to reduce the number of people living outside by ensuring they are housed rather than returning to public spaces after seasonal shelters close. Community support included custom move-in kits (furniture, bedding, pots, pans, food, cleaning supplies), with donations accepted at 3427 E. Tudor Road, Suite A, on Tuesdays and Thursdays from 9-4, with new household goods only (Amazon wish list or downloadable wish list at Next Step wish list). Monthly reports to the municipality on grant money spending ensured transparency.

Media Coverage and Public Perception

The program received extensive media coverage in 2024, reflecting public and stakeholder interest. Notable articles include:

• OPINION: Anchorage homelessness — the year so far and looking ahead to winter, published on 9/3/24, by Meg Zaletel, discussing progress and future challenges.
• ‘Next Step’ homeless to housing leaders say Anchorage program meeting goal, published on 8/29/24, by Lauren Maxwell, highlighting goal achievement.
• An Anchorage program is moving scores of people from shelters and camps into housing, published on 8/25/24, by Emily Goodykoontz and Bill Roth, detailing the expansion to camps.
• Anchorage’s new housing-first program underway, moving 50 people out of shelter so far, published on 2/13/24, by Lauren Maxwell, noting early progress.

These reports indicate a generally positive reception, with no significant criticisms identified, suggesting broad community support.

Future Outlook and Continuation

As of February 27, 2025, the program continues to operate, with ongoing efforts to house more individuals from encampments. While specific 2025 updates are limited, the success in 2024, including housing over 700 Anchorage residents this year as per ACEH’s outreach, suggests a sustained commitment. The program’s alignment with the “Anchored Home 2023-28” plan indicates a long-term strategy, potentially scaling up based on pilot outcomes.

Conclusion

The Next Step Pilot Program in 2024 demonstrated significant success in addressing homelessness in Anchorage, Alaska, housing over 150 people with a 96% retention rate, and expanding to include encampment residents. This collaborative effort, supported by cost-effective measures and community involvement, offers a model for future homelessness interventions, with ongoing efforts likely to build on these achievements.

Key Citations

• Next Step is a collaborative program in homelessness response aligned with Anchored Home 2023-28
• OPINION: Anchorage homelessness — the year so far and looking ahead to winter
• ‘Next Step’ homeless to housing leaders say Anchorage program meeting goal
• An Anchorage program is moving scores of people from shelters and camps into housing
• Anchorage’s new housing-first program underway, moving 50 people out of shelter so far
• Next Step wish list