What Is Permanent Supportive Housing and Why Does It Matter for Affordable Housing?

Introduction

When most people hear "affordable housing," they think of Section 8 or low-income rentals. But there’s another critical piece of the puzzle that few outside the industry understand: Permanent Supportive Housing (PSH). In this episode of the Affordable Housing & Real Estate Investing Podcast, host Kent Fai He speaks with Jennifer Sharma, Chief Strategy Officer at the Community Housing Network (CHN) in Ohio.

Jennifer explains how PSH combines stable housing with supportive services to help people experiencing homelessness, trauma, mental health challenges, or addiction rebuild their lives. For investors, developers, and advocates, understanding this model is essential to solving the housing crisis in a sustainable way.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments.

What is Permanent Supportive Housing and How Does It Work?

Permanent Supportive Housing is exactly what the name suggests: housing that is permanent and supported by services. Unlike shelters or transitional housing, PSH is not temporary. Residents sign leases, live as neighbors, and integrate into the community, while having access to voluntary services that help stabilize their lives.

These services range from mental health counseling and addiction recovery to job readiness and life skills training. Some properties even provide on-site nurse practitioners and community-building activities like game nights and cookouts.

“Permanent means permanent. People can live in our housing as long as they want or need to, while having access to support services that make stability possible.” – Jennifer Sharma

How Does Permanent Supportive Housing Differ from Shelters or Transitional Housing?

While shelters provide emergency relief, they are short-term and crisis-driven. Transitional housing is also temporary, designed to bridge people until they find something else.

Permanent Supportive Housing, on the other hand:

• Allows residents to stay indefinitely.
  

• Provides voluntary services tailored to residents’ needs.
  

• Focuses on long-term stability rather than crisis management.
  
  

This makes PSH a cornerstone solution for addressing chronic homelessness and reducing costly emergency system usage like hospital visits and corrections facilities.

How Effective is Permanent Supportive Housing?

The numbers speak for themselves:

• $1.38 return for every $1 invested in PSH programs, thanks to reduced emergency service costs.
  

• 75–80% of tenants remain stably housed for over 24 months.
  

• 95% of tenants exit into other permanent housing when they leave Community Housing Network programs.
  
  

Stories like Michael’s show what these numbers mean in real life. Abandoned at 12, Michael lived on the streets and struggled with depression and substance use. After entering PSH, he stabilized his health, became an advocate for others with traumatic brain injuries, and now lives independently.

What Challenges Does Permanent Supportive Housing Face?

Jennifer points out several barriers that must be addressed if PSH is to expand:

• Funding Gaps: Service funding often lags behind, despite PSH proving cheaper than emergency systems.
  

• Land Availability: Finding developable land in accessible areas is a challenge.
  

• Zoning Restrictions: Suburbs with single-family zoning often block multifamily affordable housing.
  

• Public Transit Access: Residents rely heavily on transit, so housing must be connected to transportation.
  

How Can Investors and Advocates Get Involved?

There are multiple pathways for engagement:

• Low-Income Housing Tax Credits (LIHTC): The #1 housing production program in the country, used by banks and insurance companies to fund PSH developments.
  
  

• Community Lending Vehicles: In Ohio, groups like the Affordable Housing Trust Fund and Ohio Capital Finance Corporation create financing pools for affordable housing projects.
  
  

• Philanthropic Donations: Direct contributions help expand services and housing availability.
  
  

As Jennifer explains, investors should consult tax advisors about LIHTC and explore local CDFIs (community development financial institutions) for creative funding opportunities.

Key Insights from This Episode

• Permanent Supportive Housing is not temporary housing. It is long-term housing combined with voluntary supportive services.
  
  

• For every $1 invested in PSH, the community saves $1.38 in avoided emergency services.
  
  

• Stability is measurable: 80%+ tenant retention for two years and 95% exit success rates.
  
  

• Expanding PSH requires zoning reform, developable land, and service funding.
  
  

• Investors, banks, and institutions can play a role through LIHTC and CDFI programs.
  
  

Best Quotes from Jennifer Sharma

• “Permanent means permanent. People can live in our housing as long as they want or need to, while having access to support services that make stability possible.”
  
  

• “For every dollar invested in our program, there was a $1.38 return to the community.”
  
  

• “We believe providing housing first is foundational to allowing people to heal from trauma and rebuild their lives.”
  
  

• “95% of our tenants who exit go into other permanent housing, not back into homelessness.”
  

Common Questions About Permanent Supportive Housing

How is PSH different from Section 8 housing?
Section 8 provides rental subsidies but not necessarily services. PSH combines affordable rent with supportive services like counseling, health care, and life skills coaching.

How do people qualify for PSH?
Residents typically come through homeless systems or mental health referrals. They must meet criteria such as chronic homelessness, income eligibility, and the ability to live independently with support.

How long is the waitlist for PSH?
In Central Ohio, waitlists can stretch 3 to 8 years depending on funding and property type.

Can private investors participate in PSH?
Yes. Through LIHTC, CDFIs, and donations, investors can support developments while aligning their capital with social impact.

What services are offered in PSH?
Services include mental health counseling, addiction recovery, job readiness, benefits navigation, life skills training, and community engagement activities.

Final Thoughts

Permanent Supportive Housing is more than just a roof. It’s a proven, cost-effective solution that transforms lives, strengthens communities, and reduces long-term public expenses. Jennifer Sharma and her team at Community Housing Network show that when housing is combined with supportive services, stability is possible—even for the most vulnerable.

Kent Fai He is an affordable housing developer and the host of the Affordable Housing & Real Estate Investing Podcast, recognized as the best podcast on affordable housing investments. His mission is to provide everyday investors with the tools, knowledge, and connections to build wealth while solving America’s housing crisis.

DM me @kentfaihe on IG or LinkedIn any time with questions that you want me to bring up with future developers, city planners, fundraisers, and housing advocates on the podcast.