A program that offers housing and supportive services to more than 300 homeless Denver residents resulted in long-term housing, lower arrest rates and fewer emergency room visits by participants, according to an independent evaluation.

The Supportive Housing Social Impact Bond program was announced by Mayor Michael Hancock in 2014 and launched in 2016. It provides a group of people experiencing chronic homelessness with free housing, healthcare, mental health services and case managers.

“The program’s results disrupt the false narrative that homelessness is an unsolvable problem and that people who experience chronic homelessness choose to live on the street,” Hancock said. “With the offer of housing first and the right supports in place, people can and did exit homelessness.”

The evaluation, led by researchers from the Urban Institute, was released Thursday and described the program as a “remarkable success.” The evaluation was based on a trial from January 2016 to December 2020, comparing the 363 program participants with 361 other homeless residents.

The trial found that most homeless residents who were offered housing took it and stayed for the long-term. Of those housed, 86% remained in stable housing after one year, 81% after two years and 77% after three years. Compared to the control group, the average program participant also visited shelters 40% less and was housed for 560 more days.

This resulted in a significant decrease in interaction with the criminal justice system. Participants had 34% fewer contacts with police, 40% fewer arrests and 30% fewer jail stays. Participants who were arrested spent 27% fewer days in jail than the control group.

Participants also made 40% fewer emergency room visits, 155% more office-based visits, 29% more prescription medication use and 65% fewer stays at detoxification facilities.

Several participants spoke at a panel Thursday, discussing the influence the program has had on their lives.

Walter, a participant since October 2020, said the program set him up with free housing in Lakewood and treatment for his scoliosis.

“I was able to build up my physical health and my spirit,” Walter said. “It is the greatest thing that has ever happened in my life.”

After receiving housing and medical care, Walter’s case manager helped him to get a job and, later, connected him with mental health services after his mother passed away.

“If I was still on the street, I would have never been able to get on my feet,” Walter said. “I just believe that if people had compassion, like in the Social Impact Bond, a lot more people in Denver would be off the streets.”

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All Social Impact Bond housing units have a housing first philosophy, meaning there are no requirements for residents to move in like maintaining sobriety, finding employment or seeking treatment. But once housed, residents have access to a wide range of services to address their needs.

The Social Impact Bond program was started after Denver estimated that it spent $7 million a year on 250 chronic homeless residents through sheltering, criminal justice enforcement, detoxification facilities and emergency healthcare services, officials said.

By providing participants with housing and supportive services, the program prevented their needs for these emergency services. This resulted in more than half of the per-person cost of the program being offset by reductions in city costs, the evaluation found.

“Rather than paying for the consequences of leaving people in homelessness, communities could learn from Denver and invest in housing and supportive services that end the harmful homelessness-jail cycle,” said Mary Cunningham, with the Urban Institute.

The $8.6-million program was paid for by eight private investors: the Denver Foundation, Piton Foundation, Walton Family Foundation, Laura and John Arnold Foundation, Living Cities Blended Catalyst Fund LLC, Nonprofit Finance Fund, Colorado Health Foundation and Northern Trust Company.

The program used a “pay for success” arrangement, which meant Denver would only pay the investors back if the program met its goals of keeping people housed and reducing their number of days in jail.

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Because of the program’s success, all investors will be fully compensated for their original investment, plus an additional $1 million split among them, Hancock said.

Though the formal program has now come to an end, officials said Denver is continuing to invest in and support the supportive housing implemented through the Social Impact Bond program using the city’s General Fund.

Denver recently extended contracts with providers and evaluators to continue to deliver supportive housing for all current participants through 2021.

“Now, we just need more scale,” said Britta Fisher, Denver’s chief housing officer. “We have proven this works.”

Partners involved in the program included Colorado Coalition for the Homeless, Corporation for Supportive Housing, Enterprise Community Partners Inc., Mental Health Center for Denver, Social Impact Solutions, the University of Colorado Denver and Colorado Access.