The Independent Investor: Soldier On Changing the End of the Story
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The organization is breaking ground this month on what is called the Berkshire Veterans Village in Pittsfield, a group of limited-equity cooperative apartments paid for by funds from a variety of government and charitable sources. The idea is to offer these 20 to 40 condos to homeless vets. The recipients will be single individuals who have completed a transitional housing program and have demonstrated the ability to live independently. These vets will pay a set rent each month of around $550. That money will first go toward paying maintenance and utilities and then the remainder will be split evenly among the condo residents and banked over the course of three years. At the end of that time, if the vet has complied with all aspects of the program, he will begin to receive those funds and establish a limited equity stake in his unit.
Obviously, in order for the renter to continue his monthly payments, he or she would have to be gainfully employed for a lengthy period of time. They will also need to be involved in the community on a daily basis. That means taking care of their place and making sure that others do as well. The belief is that by providing a stake in society through this program the homeless would be motivated to clean up their act.
I asked Jack Downing, president and CEO of Soldier On, how this differs from traditional treatment that most homeless vets receive.
"Under traditional methods, a homeless and usually substance-addicted veteran will come in and receive the very best shelter and treatment the VA can offer for 30 to 60 or 90 days and then be turned back out into society, maybe with some financial assistance, to get a job, an education, to establish a new life," explains Downing.
Downing should know since he has been involved in helping the homeless and addicts since 1967, when he set up the first recovery center for heroin addicts in Pittsfield.
"I realized we were lying to these vets. What was really happening was a ricochet event where they were put back out on the streets and within three months were bouncing back to us for another three months and then back out in an unending circle. In a capitalistic society, unless a person has an ownership stake, they don't feel like they belong."
It dawned on Downing that he and all the federal and state programs were part of the problem not its solution.
"We needed to re-think how we handle troubled people. Instead of branding them as failures, we need to offer them a way back, and we think we've found a way."
It seems clear that some in the government believe Downing and his vets are on to something. The federal government has committed $1.692 million, with the U.S. Department of Housing and Urban Development expected to offer further subsidies to eligible veterans. Soldier On also expects Massachusetts' commitment, through the state's Department of Housing and Community Development, will approach $3 million. Downing hopes to fill any gaps in financing with charitable contributions and they have raised $45,000 so far.
Soldier On has two sites in Massachusetts: a 120-bed shelter in Leeds and housing for another 71 veterans in Pittsfield. The organization serves an average of 541 vets a year. The majority of its clients are between 40 and 59 years of age and nearly all of these veterans come in with mental health and/or substance abuse problems.
Unfortunately, the efforts of Soldier On are just a drop in the bucket. One out of five of America's homeless are vets (about 250,000) while 15 percent of men in prison are also vets. But the problem of how to care for and what to do with troubled people in America goes way beyond veterans. For all the billions of dollars we have spent on this problem, the solution continues to elude us. That's what makes this pilot program so intriguing. If it works in the Berkshires, it could work across the country and not just with vets. Wouldn't that be something?
If you are in the Berkshires at noon on Thursday, Oct. 29, you can meet Downing over at the old Berkshire Plaza on Route 20 in Pittsfield for the groundbreaking of this project. Later on that day in Holyoke, he will also be presenting the 2009 Soldier On Award to Adm. Mike Mullen, chairman of the Joint Chiefs of Staff.
If you want to hear more about the project you can listen to my radio interview with Downing on Vox radio Friday morning at 8:35, 9:35 and 11:05.
Bill Schmick is registered as an investment adviser representative and portfolio manager with Berkshire Money Management (BMM), managing more than $200 million for investors in the Berkshires. Bill’s forecasts and opinions are purely his own and do not necessarily represent the views of BMM. None of his commentary is or should be considered investment advice. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM. Direct your inquiries to Bill at
1-888-232-6072
(toll free) or e-mail him at wschmick@fairpoint.net Visit www.afewdollarsmore.com for more of Bill’s insights.You can also tune in to Bill’s "@theMarket" show on Vox radio every Friday morning at 8:35, 9:35 and 11:05 or on WBRK at 4:05 every weekday afternoon.
Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be and should not be construed as an endorsement of BMM or a solicitation to become a client of BMM. The reader should not assume that any strategies, or specific investments discussed are employed, bought, sold or held by BMM.
