DENVER — What would happen if hundreds of people experiencing homelessness were given cash with no strings attached?
A project based in Denver has been doing just that and organizers say the first-year results are promising.
As an Army veteran of 13 years, Eleanor Cepero-Percy never imagined she’d end up unhoused. But that’s exactly what happened a few years ago.
“It was horrible. It was awful. It was the worst thing that I’ve ever had that could ever go through,” said Cepero-Percy.
But her luck started to change when she began participating in the Denver Basic Income Project, a program that provides direct cash payments to people experiencing homelessness without conditions.
More than 800 people have participated in the program, ranging in age from 18 to 86.
Denver entrepreneur and philanthropist Mark Donovan founded the project during the pandemic.
“I was seeing this growing wealth, disparity, and income disparities,” said Donovan. “And I wanted to find a way to give back into how to have impact.”
He started providing direct cash grants using his own money.
“We took about a year and a half or more to organize and figure out how to do this really well,” said Donovan.
Participants are divided into three groups.
One group receives $1,000 a month.
First year of Denver’s Basic Income Project looks promising, report says
A second group receives a lump sum of $6,500 in the first month, followed by $500 per month.
“Both of those groups get $12,000 across the year and then we have what’s called an active comparison group, which receives a lower amount of $50,” said Donovan.
This week, the Denver Basic Income Project published the results from its first year.
After 10 months, participants in all three groups reported being better off financially and were able to pay their bills and buy food.
About 45% said they had their own house or apartment, including Cepero-Percy.
“Now, I have a little apartment for me…and my 20-year-old cat,” said Cepero-Percy.
Denver Basic Income Project
Researchers say participants also experienced fewer E.R. visits, along with fewer hospital and jail stays.
They said the reduced use of public services saved taxpayers $589,214.
Donovan said the results are promising.
“This is a group of people that are largely often overlooked, looked down upon and not given the same opportunities or are able to operate from a level playing field,” said Donovan. “When you start from a place of trust, and you say to people, ‘We believe in you, we trust you,’ and then you get them some cash and unconditionally, that they accelerate towards housing, towards work.”
Denver Basic Income Project
Donovan hopes to continue and expand the project, including to more cities in Colorado.
“We’d like to expand to more people, and then we’d like to also show that this is replicable and scalable,” said Donovan. “We’d like to go to places like Colorado Springs or maybe Grand Junction or Aurora and set up similar programs and show that this is can be replicated and can be equally effective in lots of different places, in different environments.”
Donovan thinks programs like this can work across the country.
“I think ultimately, if you’re talking about a guaranteed income at scale, it requires public funding. But I think there’s beauty in a public-private partnership in this demonstration phase,” said Donovan.
In 2022, the City of Denver provided $2,000,000 for the project. It has also pledged another $2,000,000 to continue the program this year.
The project has provided $9.4 million to over 800 people since its founding.
For more information about the project, visit https://www.denverbasicincomeproject.org/
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