On June 23 in Montgomery County, Maryland, officials and residents gathered for the ribbon-cutting ceremony of new low-cost single room occupancy (SRO) apartment complex, Seneca Heights Apartments, which rents rooms on a sliding scale to local homeless families and individuals, the Washington Post reported.

The facility, operated by the Montgomery County Coalition for the Homeless, includes forty studio apartments. There are also seventeen transitional apartments, which provide occupants with their paid rent in return when they move out. Seneca Heights and other SRO complexes offer services for such issues as addiction, mental illness, and physical disabilities.

According to the coalition's executive director, Sharan London, "If we can create enough affordable housing, we really can end homelessness rather than manage it." The new complex cost $8.5 million of federal, state, and county funds, as well as donations from a local church.

Montgomery County is one of many communities shifting its strategy to combat homelessness with housing rather than shelters. The US Department of Housing and Urban Development aims to end chronic homelessness by 2012. As part of its efforts, HUD offers grants to help communities pay for these SRO complexes, or also called supportive housing units.

On the same day as the Maryland ribbon-cutting, Newsday reported that New York City Mayor Michael Bloomberg announced his goal to reduce homelessness in the city by two-thirds in five years.

Bloomberg plans to better utilize the $700 million annual budget of the Department of Homeless Services by focusing on placement rather than shelters for the homeless. He also promises the construction of 12,000 new supportive housing units over the next ten years, as well as eviction prevention programs.

While some officials are unsure how the city could afford such a valuable but ambitious plan, the commissioner of Homeless Services Linda Gibbs stated that the program will be funded by savings in shelter costs, in addition to the $12 million already allocated for one year of services in six neighborhoods.

Mary Brosnahan, the executive director of New York's Coalition for the Homeless, expressed concern over Bloomberg's intent to lower costs and divert the homeless by narrowing eligibility requirements for those entering shelters. The new provisions will include the requirement of a detailed personal history, as well as reduced eligibility for people who may be able to stay with friends or family.