The U.S. Department of Housing and Urban Development’s (HUD) latest report on homelessness indicates it dropped 12 percent from 2005 to 2007, with chronic homelessness almost 30 percent lower than in 2005. Good news, right? Perhaps, but it depends in large part on how you define homeless.

While in past years the count included families who were living in RVs or two families to an apartment, this year HUD only tallied those who were actually in shelters or on the streets–the official HUD definition of a homeless person. Why the change?

The number crunchers leading the federal fight believe that as long as Americans continue to perceive homelessness as an implacable problem, they’ll never muster the will to help. But if the government can show that the numbers are actually relatively small–like the 125,000 chronic homeless they are now counting–then the public might just be up for tackling the issue.

While critics believe HUD should return to its prior method of tabulating homelessness, report co-author Dennis Culhane says limited funding means an expanded definition of homelessness “isn’t going to make a hill of beans of difference. It’s only going to dilute what we’re doing.” What do you think?