A young graduate student with a public policy degree advised the City of Vancouver on Tuesday to look south to San Francisco as a way to help address homelessness in the notorious Downtown Eastside.

"Probably the central solution is the master lease program," Matt Wadsworth told a news conference called to release his winning essay and two others.

"It was first conducted in San Francisco. The city leases single room occupancy units and other units from land holders and owners of apartment buildings and then acts as a sub-letter to the homeless or low-income individuals."

A major benefit, said Wadsworth, is major savings in terms of startup costs.

Wadsworth won $2,000 for his essay, while fellow essayists, Dave Cumming and Aaron Zacharias, each won $500.

The Pivot Legal Society, an advocacy organization that works in the Downtown Eastside, proposed the contest.

Wadsworth's essay also proposed a "homeless connect program" that would bring together non-government organizations and private corporations to provide services in one place for the homeless.

These groups would have knowledge on how to access services on housing, health and employment, Wadsworth said.

"This is the sort of thing I would recommend be held three or four times a year."

Another proposal called for employing the recently homeless in building social housing to help with their skills and self-esteem.

Dave Cumming, a political science and history graduate from the University of Calgary and now studying law at the University of Alberta, addressed the problem of "gentrification" as part of his essay.

In most cities, people initially flee to the suburbs.

"Suburbanization takes investment out of the inner city and leaves these depressed areas. This is not unique to Vancouver. Every major city has these areas.

"With gentrification, some people start moving back in and these areas inevitably see increased pressure."

His proposed solutions were drawn from European and U.S. models known as "tax-increment financing."

"What it means is you take out bonds from the city and use it to invest very specifically in certain areas of the city in order to bring up the property values marginally.

"That allows the rent gap to alleviate so you don't have these incredible development pressures."

While the essay solutions were being proposed, the B.C. government announced that non-profit organizations would begin homeless outreach services in seven communities.

And four organizations have also been selected to provide increased outreach services in Vancouver and Prince George, said Housing Minister Rich Coleman.

Homeless outreach workers will begin services in the Comox Valley, Campbell River, Vernon, Penticton, Nelson and Terrace, said Coleman.