Waypoint planning ‘housing first’ facility at its closed Cedar Rapids emergency shelter

CEDAR RAPIDS — Waypoint Services is looking to convert its now-closed emergency shelter in downtown Cedar Rapids into a “housing first” facility by adding affordable rental units with community services in an effort to move toward ending homelessness.

As service providers nationwide move more toward “housing first” approaches to keep people in stable housing, Waypoint on Jan. 1 closed its year-round emergency shelter, the Madge Phillips Center at 318 Fifth St. SE, a shelter for women and children.

“Housing first” models provide stable housing for those experiencing chronic homelessness, and then addresses behavioral, mental health or substance use issues. The approach recognizes that for people to address employment barriers or substance use issues, individuals first need basic necessities such as a place to live.

Waypoint’s Housing Services Director J’Nae Peterman said the building needed several costly repairs including its HVAC system, elevator, plumbing and a roof. Making those repairs would cost hundreds of thousands of dollars and likely require more fundraising.

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Shelter usage has fallen

In the last five years, Peterman said the shelter census had decreased by approximately half while the use of preventive services increased more than sixfold.

In fiscal 2019, the shelter served 260 individuals while homeless diversion/eviction prevention programs — which support those at risk of homelessness but who are not yet unhoused — served 412 people. By fiscal 2023 — the budget year that ended June 30, 2023 — shelter usage fell to 138 and prevention services served 2,983 people.

Still, Peterman said the emergency shelter program was the most expensive program Waypoint ran, always operating at a deficit and relying on community donations. It cost about $500,000 a year to operate.

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While shelters have a place in the homeless services response system, Peterman said, they do not end homelessness. With demand falling for those services, she said it was a good time to make this transition to focusing more on prevention and housing stability to “truly end homelessness for people.”

Before the shelter’s doors closed, Peterman said the last family remaining there was an asylum-seeking family who Waypoint helped find housing. The family moved into that housing Dec. 23, so no families were immediately affected by the shelter’s closure.

“It felt to us that that was a lot of money to put towards continuing this Band-Aid where we could be focusing our efforts and our energy somewhere else and more toward the solution,” Peterman said. “... We decided it was best to make the shift of not continuing to pump money into something that's not a solution to ending homelessness.”

The Washington, D.C.-based National Alliance to End Homelessness studies show “housing first” models make families more likely to remain stably housed and are a better solution than shelters. The organization — which the city of Cedar Rapids enlisted last year to aid in improving local homelessness systems — reported “housing first” programs could save up to $23,000 per year per consumer versus shelters.

In Iowa, Iowa City-based Shelter House has led the charge for “housing first” facilities and has opened two — most recently at 501 Southgate Ave. in 2022 and first at Cross Park Place in 2019. This permanent, supportive housing assists chronically homeless individuals who need intensive case management to stay housed.

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Plan for space still in the works

Peterman said it’s likely the upper level of the facility will be turned into six to eight affordable apartments serving the population that uses Waypoint’s housing services. Typically, this population earns up to 30 percent of the area median income. There would be supportive services on-site, including case management and other supports.

Leasing the apartments would be based on the Coordinated Entry System that local housing providers use to support those experiencing homelessness. This communitywide list is what providers use to fill their program vacancy so people “aren't falling through the cracks” and ensures people get a fair chance at available programs. Waypoint reported 13,790 people were served through that system in fiscal 2023.

To fill the building’s first level, Peterman said Waypoint officials are talking with another nonprofit to potentially collaborate or the space could be turned into more residential units. “Whatever goes in that space will be part of our mission of ending homelessness and moving people forward,” Peterman said.

A timeline for the building’s rehabilitation isn’t firm yet. Peterman said Waypoint still is exploring what's possible in the whole space and will have to secure funding. It’ll continue to be operated by Waypoint, but Peterman said there “may be community partnerships with this space to make sure that we're providing services holistically to the community.”

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Waypoint Chief Executive Officer Jaye Kennedy last week told the Downtown Self-Supported Municipal Improvement District last week that local nonprofit Matthew 25 was exploring a grocery store on the lower level. But no decisions have been made yet.

“Matthew 25 has had very preliminary conversations with Waypoint about the possibility of a grocery store in their space near Greene Square,” Clint Twedt-Ball, Matthew 25’s executive director and founder, said in a statement. “While we always want to be part of conversations to eliminate more food deserts in Cedar Rapids, it is too early to determine whether a grocery store is a viable option for this space.”

Comments: (319) 398-8494; marissa.payne@thegazette.com