HousingHousingPositive

Denver Social Impact Bond — Supportive Housing for Chronic Homelessness

City of Denver / Colorado Coalition for the Homeless · Denver, CO, USA · 2016

Summary

The Denver experiment tested the Housing First model — giving chronically homeless individuals permanent housing without behavioral prerequisites — using a randomized design funded through a social impact bond. The results resolved a long-standing policy debate: providing immediate housing reduced, rather than rewarded, problematic behavior. Jail days fell 40%, emergency department visits fell 34%, and the resulting public cost savings were sufficient to repay bond investors and reduce net government expenditure. The study is also notable for its financing model: investors bore the upside risk of the intervention failing, aligning incentives around measured outcomes rather than program continuation.

Research question

"Does supportive housing (permanent housing + intensive case management) reduce jail days and emergency services use for chronically homeless individuals?"

Methodology

Intervention

Participants offered permanent housing immediately (Housing First model) plus integrated support services including mental health, substance use, and primary care; no sobriety or compliance requirements for housing

Assignment

Randomized controlled trial with wait-list control

Sample size

324 chronically homeless individuals with high service utilization

Primary outcome

Jail days; emergency department visits; housed nights

Effect estimate

Jail days: −40%; ED visits: −34%; housed nights: 83% vs. 37% at 24 months; net public cost reduction offset SIB payments

Decision

Denver expanded supportive housing units; social impact bond investors repaid based on achieved savings; model replicated in New York, Chicago, and Los Angeles

Result

Positive

Jail days: −40%; ED visits: −34%; housed nights: 83% vs. 37% at 24 months; net public cost reduction offset SIB payments

Evidence strength

Strong

Randomized trial, replicated across multiple sites or studies.

Replication status

Replicated

Institution

City of Denver / Colorado Coalition for the Homeless

Location

Denver, CO, USA

Year

2016

Policy area

Housing

Mechanism

Housing

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Moving to Opportunity Housing Vouchers

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Vancouver, Winnipeg, Toronto, Montréal, Moncton, Canada · 2009

At Home / Chez Soi — Housing First

Positive

Chicago, IL, United States · 2018

Inclusionary Zoning Affordability Audit

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