As Federal Funding Wavers, This Charlotte-Based Approach Covers Move-in Costs and Gives Landlords a Partner They Can Call
More than 750 people who were homeless in North Carolina now have homes thanks to a new model that works without taking money from the federal government.
Lotus Campaign, a nonprofit based in Charlotte, North Carolina, has developed a model that supports both people seeking housing and real estate professionals who build the housing people need. The model helps people who are homeless overcome barriers to housing by providing cash for renter’s insurance, application fees, and security deposits. People housed through this program are also connected with wraparound services from local providers. Landlords and real estate developers benefit from having someone they can call when issues come up.
Since Lotus was launched in 2018, more than 750 people in Charlotte and Raleigh have found homes through the model. On top of that, 90% of people remained housed after their first year, and less than 5% returned to homelessness. All of that has happened without a dollar of federal funding, according to Beth Silverman, Lotus’ executive director.
“This is not easy by any means,” Silverman told Invisible People. “But it works.”
How Lotus Built a Better Model
Silverman, who has a background in real estate development, began developing the model after she saw gaps in the way the private, public, and nonprofit sectors worked to address homelessness. People were placed in housing without the additional services they needed. At the same time, private landlords and real estate developers were being asked to take on a lot of financial risk in the fight to end homelessness, which dissuaded some from participating, she said.
So, Lotus Campaign sought to create a model that served both parties. It works like this. Lotus’ network of community partners identifies people who need a little extra help getting over barriers to housing.
Then, Lotus’ team identifies a potential landlord and covers move-in costs for that person, known as a “sponsored resident.” The amount varies by what each resident needs, whether that’s a security deposit, first month’s rent, or renter’s insurance. Lotus says it costs approximately $2,500 to place one person in housing. By comparison, a chronically homeless person costs taxpayers an average of more than $35,000 per year, according to 2017 data from the National Alliance to End Homelessness.
This gives the sponsored resident the hand up they need to escape homelessness and covers some of the risks that landlords are asked to assume. Once someone is housed, they also receive ongoing service support from local providers.
Silverman said the homes Lotus residents live in are all located in mixed-income neighborhoods near public transportation, schools, employers, and grocery stores. This not only gives them a chance to be self-sufficient but also helps them reconnect with their community, she said.
The model works for a wide range of homelessness cases as well, Silverman explained. For example, Lotus has multiple landlords who will rent to people with a housing voucher or who receive another benefit like Social Security. People who suffered from chronic homelessness can also benefit from Lotus’ expansive suite of services, all while living in a home of their own.
Landlord Buy-In, Federal Headwinds
Lotus’ model has not only impacted the lives of people exiting homelessness but also gives landlords an incentive to rent to people with vouchers.
A.J. Jackson, president of LEO Impact Capital, a landlord with more than 3,000 units in its portfolio, told Invisible People that Lotus makes it seamless for landlords to help people exiting homelessness. LEO Impact Capital committed 30 units at the Sharon Crossing Apartments in Charlotte to serve Lotus’ residents and plans to expand in the future, Jackson said.
“The one thing that was really attractive to us was the continual follow-up and support of residents,” Jackson said. “We try, throughout our portfolio, to serve people with a sort of broad range of needs, but it’s really that ongoing case management and engagement is really essential to that model working.”
Lotus’ model could also help service and housing providers overcome significant issues. For instance, North Carolina lawmakers passed a public camping ban that could subject people living unsheltered to fines and jail time, though Gov. Josh Stein vetoed it, and Republicans are seeking the votes to override. If it takes effect, people criminally charged under the law may have a steeper path back to housing and employment. Lotus’ model can help people with checkered backgrounds overcome that barrier to housing, Silverman said.
At the same time, the federal government has injected widespread anxiety into the homeless services sector because of its whipsaw attempts to limit funding for service providers. For instance, President Donald Trump signed an executive order demanding that cities and states drop Housing First approaches and address homelessness like a criminal issue rather than a housing problem.
In turn, the Department of Housing and Urban Development has sought to radically limit how much money homeless service providers receive. Even though a federal judge in Rhode Island has blocked those efforts, HUD has said it remains committed to changing the way homeless services are funded.
A Voucher System Under Strain
Housing success rates for people with housing vouchers have also continued declining over the last several years.
According to the latest data, about 55% of people with housing vouchers were able to find somewhere to rent in 2023 compared to more than 63% in 2018. That is happening as the federal government has taken a large step back from fair housing enforcement, while discrimination complaints against some of the country’s largest landlords pile up.
To Silverman, Lotus’ continued success despite these headwinds is a testament to the power of busting myths about homelessness and the people who experience it.
“If you bust myths, you help bring the focus back to what is both a structural rather than an individual problem,” Silverman said.
Correction: An earlier version of this article stated that Lotus Campaign pays up to $2,500 per sponsored resident. That figure is the approximate cost to Lotus of placing one person in housing. The amount Lotus pays toward move-in costs varies by resident.
