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Chronically ill, unable to work consistently, mentally declining and single. Where can she find housing?

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You or she needs to contact social services or health & human services, or whatever it is called in your county. That’s the best place to find out what programs and housing options are available for her, since she’s only 40 years old.
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Without some idea of where your daughter wants to live (which state at least) it is very hard to know where to begin.

If your daughter has been ill for some time, is she not in touch with support groups, or can't her healthcare team link her up with appropriate social care services?
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Does your city have a non profit agency to help the homeless? I am in New Orleans and we have this in our city. There has been a huge reduction of homelessness in our city, especially for women and women with children.

The program here is called Unity. You can read about it online and see how it works.

Best wishes to you and your daughter.
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What kind of diagnosis does she have?

Is she getting SSDI?

Does she have a social worker or case manager?
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Look for Supportive Housing.
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