Sharp increase drains budget of Otsego County's only homeless resource

GAYLORD — A confluence of factors has led to a surge in homeless people in Otsego County this winter, causing a strain on the finances of the organization that helps them.

Sue Smith, president of The Refuge which serves as Gaylord and Otsego County's solution for those who lack adequate shelter, said the numbers have been overwhelming. 

“We began this eight-month season (Oct. 1) budgeting to shelter 60 individuals for 250 overnights. At five months, we have already sheltered 121 (individuals or 61 households) for 745 overnight stays. The housing expense alone has exceeded our entire operations budget and we still have three months to go,” Smith said.

Several factors have converged to exacerbate the homeless problem in the county, according to Smith.

"We are still dealing with the effects of COVID-19 and the tornado," she said. "We don't have a huge supply of low-income housing."

Smith noted that the Refuge was the principal agency that helped people get housing immediately after the May 20 tornado.

Unlike traditional homeless shelters, the Refuge works with local hotels/motels to house the homeless until they can find more stable housing. The hotels/motels provide The Refuge with a discounted rate.

The tornado exhausted an already low inventory of affordable housing.

"An already scarce commodity became even more scarce," said Smith.

More:Refuge provides shelter for homeless in Otsego County

The lack of housing is another example of the conundrum of the economy. The unemployment rate is low and there are help wanted signs in many businesses. Chris Czjakowski, shelter coordinator for The Refuge, said a combination of a lack of affordable housing along with rising rents for existing housing is leaving individuals with few choices.

"We don't have enough housing available that is affordable to the people who have a job. An efficiency that used to run about $650 (a month) is now on the market for $750 to $900 (a month)," said Czjakowski. "I am still seeing many of the same reasons why some are becoming homeless, it's just a larger number."

Czjakowski said many of the homeless are part of the county's ALICE population who are asset limited, income constrained while employed. They have an insufficient monthly income to afford the basic needs of housing, food, transportation, health care, child care and taxes.

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“One personal or financial set-back can push the ALICE into homelessness”, said Czjakowski.

“We have been able to keep up with the demand by raising funds, using all our existing balances and applying for local grants," added Smith. "We are so grateful to all our donors as they have allowed us to respond to the full need so far."

Anyone who wants to help can donate at www.otsegorefuge.org or send a check made payable to “The Refuge” to P.O. Box 44, Gaylord, MI 49734.

— Contact Paul Welitzkin at pwelitzkin@gaylordheraldtimes.com.