Audit: Homeless Hotel Program Costing Communities Millions

A key homelessness program is costing Massachusetts cities and towns more than $13 million each year in education costs and lost tax revenue.

That's the conclusion of a report released on Wednesday by state Auditor Suzanne Bump.

The program provides homeless families with temporary shelter at hotels and motels. The program is funded through the state's Emergency Assistance Program. In 2014, more than 1,700 homeless families occupied hotel or motel rooms during an average week.

Bump said the program costs local communities $11.4 million in education costs, much of that from providing transportation to the student's original school district.

Bump said the state should fully reimburse the transportation costs.

The audit said the hotel program also costs local communities another $1.7 million each year in lost hotel room excise taxes.