Denver program that gives homeless cash asks city for more money

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The group that gives Denver homeless people no-strings-attached cash wants more money from the city.

The Denver Basic Income Project gave a presentation Wednesday to the Safety, Housing, Education and Homelessness Committee of the Denver City Council. Speakers echoed findings from research released that month that showed the project’s plan to give homeless people thousands of dollars, no strings attached, is saving the city money.

According to the research, people receiving the $1,000 monthly cash payments are less likely to utilize expensive services such as ambulance trips, hospital nights, jail, emergency room visits and shelter stays. The research by the University of Denver’s Center for Housing and Homelessness Research showed a savings of about $589,214 per year.

Council member Kevin Flynn noted those are not actual savings, but money not spent.

Tesla and homelessness

Mark Donovan, who made seed money for the project by investing in Tesla, leads the Denver Basic Income Project. He said the project needs about $10 million to continue providing cash payments for a third year. Initially the project was billed as a one-year pilot.

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Members of the committee did not respond specifically to Donovan’s remarks about money, but several stated their support of the project. A more formal ask of the funding and a specific amount is expected in the weeks ahead.

In March, the city gave the project $2 million to provide basic incomes to women, transgender and gender non-conforming people. These groups face the highest risks of homelessness, according to homeless services providers. The previous October, the council gave the project $4 million.

Social Security conflicts

Donovan said there have been instances where people have turned down support from the Denver Basic Income Project because it would impact the amount they receive from other sources such as Social Security and SNAP. Project staff members said they want to work with the federal government to make sure those who do go off Social Security benefits for the income project can transition seamlessly back onto benefits when funding for the project runs out.

Nick Pacheco, a project staffer, said those receiving payments from the project feel a certain accountability to spend the money wisely despite it being offered no strings attached. He said it gives people hope and responsibility.

He said many people have used the money to get their commercial driver’s license, or CDL. Others have used it for other educational pursuits. Some have bought a car, he said.

Handout syndrome

Gwen Battis of the project stressed the importance of providing stipend recipients with phones so they can be reachable. She said participants get up to three phones per year. Phones frequently get lost, stolen or damaged during homelessness, Battis said. She said sometimes people lose their phone and don’t tell anyone, and suddenly they are unreachable. Battis said they have learned to be in “constant communication” with project participants.

She said the project also has learned it is up against ingrained narratives about homelessness and some people simply look at their work as a wasted handout. She said it’s important to educate the public about the needs of people experiencing homelessness and the success of their program.