Pallet Homes: Cost Per Person for First Year Is $66,000
Tuesday, February 27, 2024
According to data provided to GoLocal by the Office of Housing for the State of Rhode Island, the cost of the acquisition of the pallet homes in Providence, the land preparation, and the operation of the facility for the first will total $3 million.
The total per unit cost is just over $66,000 for the first year — including the first year's support services as well as the initial acquisition and site preparation.
Here is the breakdown:
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe cost for site prep, to purchase the pallet homes and construction is $44,444 per unit. These costs are unlikely to be recurring except for maintenance.
And, the cost of the services is $22,222 per unit. The services include counseling and services to create a transition to work and health services. This cost is an annual cost.
In May of 2022, Professor Erich Hirsch of Providence College called on Governor Dan McKee to take immediate action to provide 500 mini-houses to address the growing need for the unsheltered in Rhode Island.
Hirsch said that COVID increased the number of unsheltered and rental prices are exacerbating the problem. He serves as Co-Chair of the state’s Homeless Management Information System Steering Committee.
Short-term and long-term needs could be addressed in part by deploying hundreds of pallet shelters, according to Hirsch.
"We're saying we need 500 of these rapidly deployable structures now for 500 people because that's what we're expecting very soon and if you know, if you look at the economic impact of COVID and the rising rents there could be a few hundred more beyond that," said Hirsch on GoLocal LIVE.
Hirsch estimated the cost at that time just for the purchase of 500 homes at $7.5 million.
Now, pallets are located off of Victor Street — located between the Foxy Lady strip club and I-95.
The property will feature 45 individual, free-standing one-room units, 70 square feet in size, screened windows, fire extinguishers, smoke/CO2 detectors, electrical outlets, and heating and cooling units.
Services
According to the Department of Housing, the facility will be staffed 24/7. The shelter community will include four free-standing office units to provide such services as onsite case management, housing application assistance, benefits application assistance, job training, and health-related supports, including substance use recovery and mental health services.
There is also a free-standing community room and ADA-approved combination bathroom/shower facilities; a laundry room will also be offered. Substance use will be prohibited on site, with access to recovery services available for pallet occupants.
In Rhode Island, the funding source for the home's construction and operation includes State Fiscal Recovery Funds (SFRF) and Community Development Block Grants (CDBG), as well as City of Providence resources.
How Does the Cost Compare to the Cost in Other Cities
GoLocal reviewed a number of other programs around the country, and each has its own variables relating to the exact design of the home to the services being provided to the residents.
In Greensboro, NC, WFMY News reports, “In total, there are 30 8x8 pallet shelters to house 56 individuals including two ADA-compliant shelters for people with disabilities. The city said it costs about $200,000 to run the pallet home program this year.”
In Everett, WA, another project is being operated on $700,000 annually. The project is in its third year and has been expanded from its initial 20 pallet homes and added 20 additional homes.
The HeraldNet reported that “Businesses nearby say the shelter has been a great neighbor,” said City Council member Paula Rhyne.
"John Hull, the mission’s director for strategic development, said the annual cost of operating the shelter is about $700,000. With the mission unable to cover that itself, the operation relies entirely on government funding, Hull said," according to the HeraldNet.
Related Articles
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- Cranston Councilor Opposes Pallet Housing Project for the Homeless
- Politician Blocked Pallet Houses, Claiming They Would Attract Sex Offenders - Now He Is Charged
- PHOTO OF THE WEEK: New Pallet Homes in Providence
