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Denver Basic Income Project releases data showing cash transfers led to more people finding housing

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Supporters of the Denver Basic Income Project rallied outside the Colorado Capitol Friday, Sept. 22, testifying to the project’s effectiveness in ending homelessness.
Alison Berg, Rocky Mountain PBS

DENVER — April Marie understands how one crisis can swing the pendulum from a stable and enjoyable life to one of fear and instability.

After experiencing violence, Marie’s life went from a house and comfort in Castle Rock to a crowded shelter in North Denver where she was given a thin pillow, scrappy blanket and said the situation felt “what I can only imagine prison feels like.”

“My world was shattered and permanently altered,” Marie said. “I found no equivalent aid in my efforts to progress and grow.”

Marie was randomly selected as one of 820 people receiving money from the Denver Basic Income Project, a 12-month program providing unconditional cash transfers to people experiencing homelessness in Denver. The project is run by the University of Denver’s Center for Housing and Homelessness Research. 

The 820 participants are split into three groups — one receives 12 payments of $1,000 each month, a second group received a one-time payment of $6,500 and then 11 monthly payments of $500 and a third — considered the comparison group — received 12 payments of $50 each month. Each participant received a smart phone where their spending is tracked. 

Data collected from the first six months of the program — published Tuesday by the University of Denver Center on Housing and Homelessness Research — showed “more participants surveyed from all payment groups are living in rented or owned homes than at the beginning of the study, fewer participants are sleeping outside and fewer are utilizing public health services, including emergency rooms.” 

Every participant who received $1,000 a month said they were sleeping indoors after six months of receiving money. Similarly, the number of recipients staying in an apartment or house they own increased from 5% to 40% in the group receiving $500 a month and 11% to 31% in the group getting $50 a month.

The study also showed all participants felt safer and more welcomed in their housing. 

Participants across payment groups felt more confident about their future housing, and participants in the larger payment groups reported feeling safer in their sleep environments.

“We see people spending it on basic needs and then when they have more money, they’re paying down debts and investing in their future,” said Mark Donovan, founder and executive director of the project. “The reports are exactly what we expected. People are getting housing faster and they’re getting to work faster.”

The project was funded by several foundations, nonprofits and the city of Denver. At a September 22 rally in support of the project, government officials and state activists called on Denver Mayor Mike Johnston and Denver City Council to continue funding the project for a second year, both to continue funding current participants and to expand. Denver’s is the largest project studying the impacts of basic income on homelessness.

“We have a unique opportunity to show the country what is possible when you create and sustain basic income for people who’ve experienced homelessness,” Donovan said. “We think it’s a more effective and efficient way to fight homelessness and push back on income inequality.”

Colorado Coalition for the Homeless CEO and President Britta Fisher also encouraged Mayor Johnston to provide funding for the program for a second year.

The Colorado Coalition for the Homeless is proud to be a partner of the Denver Basic Income Project because we know that in order to solve homelessness, we must treat it like the emergency that it is and provide the resources directly to the people who need them the most in order to accelerate their path to safety, housing, employment, and the opportunity to thrive,” said Colorado Coalition for the Homeless’ President and CEO Britta Fisher. “Denver has been a leader in supporting this solutions-driven program to demonstrate to the country that direct cash assistance is a critical component to homelessness resolution. We encourage Denver City Council and Mayor Johnston to continue to support DBIP and for advocates across the country to take notice.” 

Rep. Javier Mabrey, a Democrat representing Southwest Denver in the Colorado House of Representatives, said poverty is personal for him, as he was raised by a single mother without income. His family was evicted and he was left homeless, which inspired him to become an eviction defense attorney.

“The very foundation of this is the idea that we should have dignity in our lives and being able to afford housing is key,” Mabrey said. “Investing in this program is investing in public safety.”

Willie Larkin, another formerly unhoused Denver Basic Income Project recipient, said the money he receives has saved his life.

“It gave me hope, it inspired me to know that I have something and someone that had faith in me, and that faith gave me all the strength I needed to look at myself, to want more, to do better,” Larkin said.

Since receiving his first installment of money, Larkin has found an apartment, bought a car and gotten a job. 

“I have a future as bright as I know it and that future is taking me to where I want to be and where I know I should be,” Larkin said.

The Center for Housing and Homelessness Research has published qualitative findings on its website and will publish quantitative reports in October. 


Alison Berg is a reporter at Rocky Mountain PBS and can be reached at alisonberg@rmpbs.org.

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