REAL ESTATE NEWS

Homelessness is a major problem in many big cities and it's even becoming an issue for Americans who don't fit this category. It may seem like a sad fact of life that not much can be done about.

In some cities, "out of sight is out of mind," and encampments are cleared without providing alternative housing for the residents.

However, to Elizabeth Funk, founder and CEO of DignityMoves in California, homelessness is a solvable problem if it is approached with an innovative entrepreneurial perspective and offers a return to developers and landowners. Her resume blends high-growth start-up entrepreneurship in Silicon Valley with innovative initiatives that align for-profit and nonprofit approaches to achieve positive social impact.

Actively involved in combating homelessness in California for two decades, Funk believes that a permanent housing solution built with traditional construction methods will not address immediate housing needs; the cost of building such a house in California is around $800,000.

Instead, DignityMoves focuses on interim housing, which can bring costs down to around $50,000 per room and helps move people into shelter quickly, Funk said in an interview with GlobeSt.com. Since its founding four years ago, the organization has established communities in 12 California cities,

The process has been helped by the declaration of States of Emergency (SOE) in many cities. First declared in 2015 by the State of Hawaii, Seattle and Portland, Oregon, a SOE allows local governments to waive red tape to speed up the provision of housing. They may enable builders to bypass zoning code provisions like parking space requirements, building sizes and minimum lot size requirements, while simplifying permit processes, legalizing accessory dwelling units (ADUs) or allowing manufactured housing. However, building safety codes are not waived.

By focusing on interim housing designed to be temporary and even movable on borrowed land, the organization claims to offer "a fast, dignified way to bring people indoors."

The needs are vast. According to a 2025 report by the Joint Center for Housing Studies of Harvard University, 771,480 people were homeless in January 2024 – 18% more than the previous year and 33% above January 2020. Of these, 152,590 people were chronically homeless – unhoused for at least a year or having experienced episodes of homelessness in the past three years. The number of people staying in shelters soared 25% to 497,260. The number of people staying in places not intended for human habitation reached a record high of 274,220.

Despite the need, the Not In My Backyard (NIMBY) movement still exists. However, by prioritizing people living and sleeping in the immediate area for placement in a community, DignityMoves seeks to overcome backlash by convincing lawful residents that homeless people already sleeping on their streets will now have safe shelter in a properly managed location in the area.

"We can borrow land that is temporarily available. Land that is being held for later development can be used in the interim, and the owner may be able to receive a property tax waiver while its value goes up," Funk said. Borrowing means that DignityMoves leases the land for $1, while the property owner may receive certain tax benefits.

Private developers with projects early in the entitlements process or those that have been postponed due to financing or market conditions may allow their land to be used for sheltered housing until development actually starts.

A landowner can make an in-kind donation of a no-cost lease and receive a tax receipt for the fair market value of a land lease, Funk noted. In addition, California law provides that land used by nonprofits such as DignityMoves for homeless shelters and other qualified purposes is exempt from property taxes during the term of the lease.

Other potential sources of land include underused parking lots, local governments and transit authorities that may have land reserved for roadways or transit hubs, churches and hospitals.

A half-acre can accommodate a DignityMoves community with 70 rooms, including ample common areas.

"Our modular model allows us to take advantage of odd-shaped parcels that might be overlooked," the organization states. "When needed we pick up the units by forklift and relocate them to a new location in the region where they can continue to be used for interim housing."

The organization uses a variety of innovative techniques to build units with private rooms inexpensively and efficiently. It works in coordination with local government authorities and a national network of experts in modular design, engineering, construction and public-private financing.

One home was constructed from 150,000 recycled plastic bottles and served as the base material for a 3-D-printed unit, Funk said. Mass timber construction is also used.

Tenants are selected for housing based on a vulnerability score. Their average length of stay is around eight months. On-site wrap-around case management services are provided until individuals have achieved stability, Funk said.

Funding for these ambitious projects comes from donors such as Citibank and Wells Fargo, as well as from a variety of charitable foundations.

DignityMoves' goal now is to scale up to meet the growing unmet housing needs in other communities.

"With increased capacity," it announced, "DignityMoves can scale its reach fivefold over the next three years and position the organization for future financial independence."

Source: GlobeSt/ALM