Private Investors Help Get Homeless Off The Streets

DENVER (CBS4)- It's been a tough couple of days for the homeless living in the Denver metro area with the recent drop in temperatures and snowfall. Now, a program is helping move those living on the streets to housing with the idea of spending money to save money.

"It's cold but it's what you have to deal with when you're in this situation," said Josh Lewis. "Some people can help it, some people can't."

The program allows private investors to put money into what's called "social impact bonds" to finance housing for the homeless. One of the locations is an apartment complex at 40th Avenue and Colorado Boulevard.

"I think it is a shock but I think it's a joyful shock for a lot of people," said Colorado Coalition for the Homeless spokeswoman Cathy Alderman.

Homeless advocates say it's more expensive to pay for jail, detox and other city services than putting people in apartments and keeping them off the streets.

The City of Denver partners with the Colorado Coalition for the Homeless and Mental Health Center of Denver to provide the social impact bonds. The idea is that the program will save money because the housing costs less than the alternative.

"Jail costs should go down, emergency room costs should go down, detox costs should go down," said Alderman.

The rent is covered through housing vouchers and a percentage of income from the resident, if any.

"We know that there are at least 6,000 people sleeping on the streets of Denver every night and to be able to house 250 of them give us hope but we know we have a long way to go," said Alderman.

There are about 65 people who benefit from housing through the program. Advocates hope to expand the program to 250 people by the end of next year.