Study shows no-strings-attached cash in Denver improved participants’ housing, financial stability

(Photo illustration by Getty Images)

The Denver Basic Income Project recently released a report detailing research showing how no-strings-attached cash assistance helped people experiencing homelessness find stability.

The University of Denver’s Center for Housing and Homelessness Research released the findings from its year-long randomized study, which found that participation in the DBIP led to improved housing outcomes for many participants. DU released both a quantitative study and a qualitative study detailing the results. As of mid-June, the project had distributed more than $9.3 million to more than 800 people experiencing homelessness.

For DU’s research, just over 800 participants were randomly assigned to three cohorts. One cohort received $1,000 a month for 12 months, another received $6,500 up front and then $500 a month for the remaining 11 months, and the last group, the control group, received $50 a month to complete a survey so the project has a solid baseline for comparison. Participants also received a cell phone with service paid off for the 12 months of the program.

The project is the first and largest to provide cash assistance at this scale in the country. Mark Donovan, founder and executive director of the project, said the DBIP team wants to see its results used to replicate the program around the country.

“We believe the first year of the program established a sense of stability for participants, and the second year and beyond is when individuals can experience an even more profound transformation,”  Donovan said in a statement. “We aim to persuade policymakers to establish permanent funding streams for programs like ours.”

After 10 months in the program, 44% of the participants who received $1,000 per month lived in a house or apartment they rent or own. Of those who received the lump sum and then $500 each month, 48% lived in a house or apartment they rent or own. The figure was 43% among the control group.

Surveys for DU’s research also asked participants if they believed they had stable housing at different points throughout the year. By 10 months, 48% of participants in each of the first two groups said they did. In the control group, 46% of participants said they had stable housing after 10 months.

Donovan said the improvements the control group saw from just an extra $50 a month shows that approaching people with trust and support makes a difference in their lives.

“The positive outlook of (control) participants, included as a comparison group, underscores the benefit of regular cash transfers as a reliable and accessible source of income for people experiencing economic precarity, a stark contrast to participants’ other existing sources of financial support,” the qualitative report said. The report also noted that some participants said benefits they received elsewhere, such as from the federal SNAP food program, decreased due to the extra income they received from DBIP, but most control-group participants maintained other benefits.

Gwen Battis, project manager for DBIP, said during a press conference highlighting the results that researchers can confidently say that guaranteed income led to people obtaining stable housing.

The first two groups also had a slight increase in participants who found full-time employment, while the last group had a slight decrease. All participants reported improved financial well-being, while the first two groups saw a significant increase in their ability to pay bills.

All participants reported spending a decreased amount of time accessing resources and increased time engaging in leisurely activities. The research team estimated significant cost reductions for public services as well, saving over half a million public dollars that would have otherwise gone to shelter stays, hospital visits, jail time or other services.

Guaranteed income programs like ours offer a cost-effective and innovative solution to address homelessness and advance public health.

– Mark Donovan, founder of DBIP

About 67% of the project’s participants identified as people of color, 27% of whom were Black, and just under half of the participants identified as having a disability. Over half of the participants identified as a woman, nonbinary, transgender or gender non-conforming, and just under 10% of participants were veterans. Maria Sierra, community engagement manager with DBIP, said the participant pool was designed to mirror the demographics of people experiencing homelessness in Denver.

“The Denver Basic Income Project participant demographics allow findings to be generalizable to inform policy and programming for the broader unhoused community in Denver, and it captures how other forms of social marginalization intersect with the experiences of honemlessness,” Sierra said.

Sierra said participants used their money to cover daily expenses such as groceries, transportation, clothing and hygiene products, but also to catch up on bills and other expenses like rent, car repairs and debt.

DBIP started in 2020. Denver partnered with the nonprofit in 2022 as a priority of the city’s Department of Housing Stability , providing $2 million in American Rescue Plan Act funding.

Donovan said the project wants to continue supporting the initial cohort of participants for three years with the hope of seeing continued positive results.

“Guaranteed income programs like ours offer a cost-effective and innovative solution to address homelessness and advance public health,” Donovan said.

The program has enough funding to continue supporting the remaining 673 participants it’s still working with through September, though Donovan said organizers are working to raise about $2 million needed to finish the year as originally designed. Then the project will continue fundraising with a goal of $8 million to continue for a third year.

The report from DU researchers said the extended timeframe “will be important to understand the relationship between amounts of guaranteed income and the amount of time necessary to see changes between groups experiencing homelessness.” The researchers said involvement in the DBIP experience led to “significant benefits” for people experiencing homelessness, and participants want to be engaged in continuing programs like the DBIP.

“The program had a positive impact on participants’ mental health, seen through the reported reductions in stress, increased hopefulness and visioning for the future, though some still expressed concerns about how they would adapt without the funds at the end of the program year,” the qualitative report says.

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