The federal model has already been launched in 205 cities and counties nationwide, and has been met with success, according to Philip Mangano, executive director of the U.S. Interagency Council on Homelessness. In San Francisco, the "housing first" approach lowered chronic homelessness by 26 percent within a year.

The chronically homeless account for only 10 percent of the overall homeless population but exhaust 50 percent of public services, such as ambulances, emergency rooms, jails and substance abuse treatment.

For instance, in San Diego, Calif., 15 chronically homeless people cost the city $3 million over 18 months; in Reno, Nev., $1 million of services were spent over 7 years to support just one man.

The county plans to establish 60 single-room occupancy units and rental units for domestic violence victims. The plan will also incorporate prevention by providing subsidies to at-risk families to address the need for affordable housing.

"We can pool our resources and our talents in a coordinated, strategic manner," to provide substance abuse treatment, mental health treatment and job counseling after housing, said Mary Breslin, director of homeless services for CARES, the coordinating agency for Albany County's plan.