Steve Welty

Issue# 11

August 2024

As the owner of a company that manages over 1,350 homes, the housing landscape is central to everything we do. The homelessness crisis in California, however, is a problem that extends far beyond the realm of business—it’s a societal challenge that affects us all.

As an entrepreneur, I’m always on the lookout for better solutions. As a taxpayer, it’s frustrating to watch as vast sums of money are poured into initiatives that seem to do little to stem the tide of homelessness. But as a housing provider, I also see an opportunity—perhaps even a responsibility—to be part of the solution.

Why Homelessness Matters to Housing Providers?

As a Housing Provider, the issue of homelessness is important to me for several reasons:

Media Narrative: Rising homelessness is often attributed to skyrocketing housing costs. While there is some truth to this, the relationship isn't direct. What is evident is that the growing homelessness crisis has put housing providers under increased scrutiny, leading to more calls for regulatory control over our operations and pricing. This adds complexity to our work.
Our Business is Housing: We provide places to live. People without homes represent a potential market. If we can help them get back on their feet, we create future customers.
Neighborhood Appeal: The presence of homelessness in our communities can reduce the appeal and value of our properties. Addressing homelessness contributes to safer, more desirable neighborhoods.
All x All Philosophy: I believe in caring about ALL stakeholders in ALL we do. This philosophy means that our community is as important as any other stakeholder in our business.

An Encounter that Shifted My Perspective

Recently, I had an experience that crystallized my views on how best to approach the issue of homelessness. I was sitting at Better Buzz, a local coffee shop in Pacific Beach, when a homeless man approached me. He introduced himself as a retired Air Force veteran and asked for change. Given my family’s Air Force background, I was intrigued and began asking him about his military service and life on the streets.

Our conversation lasted about five minutes. I didn’t give him money, but I offered to give him a ride or connect him with a program that could help him get off the street. His response was unexpected—his demeanor changed, and he shouted at me, saying he was going to rob a nearby 7-Eleven. While I wasn’t sure if I should notify the store, what I was sure of was this: I made the right decision not to give him money. I believe that doing so would have hurt him more than it would have helped.

When Helping Hurts: A New Perspective on Poverty

My encounter at Better Buzz reminded me of a book I recently read called When Helping Hurts. The book shifted my paradigm on how best to help people experiencing homelessness. It discusses poverty not just as a lack of material resources but as a multifaceted problem that includes mental, emotional, spiritual, and relational poverty.

In situations where rescue is needed, like natural disasters, goods and money can be lifesaving. But in chronic situations like homelessness, where rehabilitation is often what’s needed, these resources can do more harm than good. The book’s message reinforced my belief that, rather than simply giving money, to focus on building relationships and offering support that empowers people to help themselves.

Learning from Local Solutions: Two Approaches That Work

In my journey to understand and address homelessness, I’ve come across several organizations that are making a real difference. Two, in particular, have had a profound impact on my thinking.

Solutions for Change is a local organization based in Vista, CA, that I’ve learned a great deal from. Their approach is to transform lives, not just provide shelter. They operate a “High Barrier to Entry” program, which requires participants to be clean and sober to live on their campus. Unfortunately, they recently lost millions in state funding because California’s policy now mandates that only “Housing First” programs—those that do not require sobriety—receive state support.

This policy change is unfortunate because both Housing First and the Solutions for Change model have proven effective. However, the state’s one-size-fits-all approach now excludes programs that focus on deeper, long-term transformation. Solutions for Change doesn’t just want to house people; their vision is to help individuals create a future bigger than they could have imagined for themselves—getting clean, gaining job training, and building a real career.

Another organization I’ve come to admire is Families Forward in Orange County. I learned about them through a charity pickleball tournament in Newport Beach that supported their work. Families Forward focues on preventing homelessness before it happens. They provide housing, counseling, career coaching, and life skills training to families who have recently faced crises, helping them regain self-sufficiency.

What I appreciate about Families Forward is their focus on empowering individuals to help themselves. They want to reduce homelessness by helping prevent it in the first place. They provide temporary support that helps people get back on their feet.

Final Thoughts: A Call for Market-Based Solutions

I often advocate for market-based approaches to tackling our toughest housing challenges, and homelessness is no different. I don't feel like this issue can be left to state and local government to fix. As a housing provider, I am excited to support solutions that work and help spread the word.

I know that everyone is called to different issues and sees the world in unique ways. My experience with homelessness has shaped my perspective, but it’s just one viewpoint among many. I hope my journey and the insights I’ve gained inspire you to help solve this challenge.

If you have ideas, experiences, or resources that have been helpful in your own journey, I’d love to hear them. I heard a great quote that "All of our problems are really collaboration problems."

Together, we can make a difference.