Area of Expertise: Policy and Advocacy

The Supportive Housing Coalition of Pennsylvania is proposing an investment that will expand access to housing, spur local economic and community development, ensure services are available where they are most needed, and build a healthier, more resilient Commonwealth.

By establishing a Supportive Housing Operations Fund—a dedicated, flexible funding mechanism to sustain the operations and services that make supportive housing successful—Pennsylvania can reduce reliance on costly crisis interventions and achieve significant long-term savings.

Across Pennsylvania, communities are facing a critical shortage of resources to adequately fund services within supportive housing programs. These programs—grounded in evidence and proven effectiveness—combine stable, affordable housing with tailored, person-centered services that empower individuals and families to overcome complex barriers and thrive. The populations served include those with histories of homelessness, behavioral health conditions, chronic medical needs, substance use disorders, justice system involvement, experiences of domestic violence, older adults, and transition-age youth, among others.

Supportive services are the backbone of these programs, providing the individualized care and coordination necessary for long-term stability.

This document presents an optimal budget framework designed to ensure supportive housing programs are equipped to deliver these essential services at the scale and quality needed to help residents achieve lasting stability and success.

Supportive housing is a proven approach to breaking the cycle of homelessness for people with serious mental illness and other disabilities. Supportive housing is a cost-effective approach that combines affordable housing with voluntary support services, enabling people to live with stability, autonomy, and dignity. While supportive housing is an effective approach for addressing homelessness, residents also need social support to live healthy lives and address loneliness, isolation, and barriers to maintaining their mental health.

Fountain House and CSH are exploring Community-Centered Housing (CCH), an innovative approach that integrates the clubhouse model’s social practice into supportive housing. Pioneered by Fountain House, social practice uses community engagement and social connection to help people recover from mental illness.

This policy brief illuminates early research findings from pilot programs, showing that Community-Centered Housing strengthens social connections, reduces loneliness, and enhances residents’ sense of purpose and wellbeing. To forge a path forward for expanding CCH, the brief recommends bringing the model to additional pilot sites, conducting rigorous evaluation, expanding workforce training, and educating the field about social practice and supportive housing integration.

This approach offers a chance to reimagine what housing can achieve. By embracing this model, we can drive meaningful transformation in the housing sector and create environments that support people living with serious mental illness and promote lasting recovery and stability.

People who return to the community after experiencing incarceration face many challenges in reorienting to life in their communities. Addressing basic needs like food, clothing, and shelter is likely their priority, as many of them do not have a home where they can return upon discharge. Even for those who receive family support, it is challenging to navigate the process of obtaining and maintaining the services, including healthcare, that they need to thrive in the community.

States looking to improve health, improve public safety, and decrease costs are providing Medicaid insurance coverage to this population in new and innovative ways. Various states have been approved by the federal Centers for Medicare & Medicaid Services (CMS) to use 1115 research and demonstration waivers to facilitate the enrollment of Medicaid for justice-involved persons, primarily 90 days before release.

This resource highlights the requests and approvals of Reentry Demonstrations by states. The below table summarizes state programs that are focused on the justice-involved population based on research conducted by CSH.

Homelessness is rising nationwide, and recent policy proposals risk framing the issue through punitive measures rather than proven solutions. This resource provides evidence-based talking points to counter misconceptions, highlight effective strategies, and advocate for approaches that prioritize personal autonomy, fiscal responsibility, and long-term impact. Use these insights to promote community-based, voluntary support systems over costly, ineffective enforcement tactics.

A number of states are looking to both increase supportive housing capacity and quality. One component of improving quality could be developing more intensive supportive services. Many barriers exist to increasing supportive housing capacity for most communities, including a lack of a Medicaid Authority. Nearly 30 states already have in place some supportive housing services benefit, and CSH’s map can help you find where your state is in the process. This brief provides a detailed summary of state actions and lessons that could be replicated in your state.

Updated November 2025

A cost analysis developed by the Pennsylvania Supportive Housing Coalition

The Pennsylvania Supportive Housing Coalition’s Supportive Services workgroup has developed a new analysis using budget data from Pennsylvania providers to uncover how current funding structures impact service delivery.

This cost analysis identifies significant challenges that Pennsylvania providers face because of inadequate services funding. These challenges relate to provider wages, caseload size, administrative burdens, and other critical elements that must be addressed to provide high-quality services that keep people stably housed.

This one-pager provides five proven state actions to reduce unsheltered homelessness. In response to recent executive orders, these practical, evidence-based strategies for responding to unsheltered homelessness deliver measurable results.

The growth of supportive housing over the last 30 years has been built on a foundation of research showing that it provides core benefits to people and communities. CSH compiled this list of selected literature on supportive housing from the last 20 years as a resource. Please review each source carefully to understand how to apply it to your work. Download a summary of outcomes in supportive housing including many of these listed sources by clicking here.

Supportive housing is a model of affordable housing that is designed specifically for people who need services to recover and thrive in their community. It serves people who are facing complex physical and behavioral health challenges while also experiencing homelessness, institutionalization, and/or housing instability. People in supportive housing pay 30% of their income toward rent and are accountable to a lease with all of the rights and responsibilities of tenancy.

In dozens of studies across the country over the last 20 years, supportive housing has proven to be an effective intervention that improves housing stability, reduces the use of expensive crisis care, and improves outcomes even for individuals with complex needs. This brief highlights key evidence for communities to consider as they work to meet the housing and support needs of all individuals and families.

As with the population of people experiencing homelessness, many people in supportive housing are dealing with substance use disorder. The stability that supportive housing provides supports many tenants in accessing substance use treatment and reducing or eliminating their use. This brief highlights key evidence related to supportive housing and substance use.