A program designed to give homeless people guaranteed income has begun to take applications. The Denver Basic Income Project, a public-private partnership that seeks to provide up to $12,000 to homeless individuals, will accept applications through Nov. 3. 

The project, founded by Mark Donovan, received a $2 million investment from the Denver City Council in September and has raised just over $7 million. Its mission is to build a healthier society centered around "human thriving" by providing a path away from homelessness. It is a part of Impact Charitable, a 501c3 nonprofit organization.

With a $9 million budget, the program intends to help 820 individuals. Those selected will be randomly assigned to one of three categories: The first gives 260 participants a $6,500 one-time payment and monthly deposits of $500 over 11 months. The second group will receive $1,000 per month, and the 300 remaining people will get $50 per month. Both the second and third groups receive their monthly deposit over 12 months. 

Donovan said the pandemic revealed the gross disparity in wealth existing in the United States and he wanted to do something to address it. 

"I started doing some personal basic income grants in the summer of 2020," he said. "I decided to carry that practice forward into 2021, and in January of 2021, we started to organize the Denver Basic Income Project."

The program has had two so-called "soft launches." The first was in August 2021, and the second was in July 2022. These tested the program before an official launch, slated for this November. 

Donovan based much of the effort on Vancouver, Canada's New Leaf Program. The New Leaf Program gave 50 homeless Canadians a one-time payment of $7,500. The Canadian program reduced the number of days individuals used shelters and contributed to faster transitions for them to stable housing. Donovan also highlighted the reduction in spending on items like alcohol and tobacco products. 

"The people receiving the cash spent 39% less on temptation goods," he said. "There were a lot of positive impacts, but it was a limited study, so we thought it's worth building on that." 

Donovan also pointed to Mayor Michael Tubbs' program in Stockton, Calif., that provided 125 people a guaranteed income of $500 per month as another inspiration. In that city of more than 300,000 people, program participants were twice as likely to secure full-time employment. 

Denver's program has raised almost all of it's $9 million budget though partnerships with Colorado Health Foundation, the Colorado Trust and the Rose Community Foundation, and Donovan has pledged to pay the remainder of the balance should it not be met. Through what he called "fairly aggressive" investments in Tesla, Donavan has increased his net worth substantially. During the Pandemic, Tesla grew by 10 times, and as a result, so did Donovan's investment. But the success of companies like Amazon and Apple, coupled with growing income inequality, frustrated him. 

"I was looking for a way to do something in a very immediate and impactful sense," he said. "And direct cash does seem to be the most direct path to having the fastest and most powerful impact."

A study from the University of Southern California has shown direct cash payments effectively reduce homelessness but cautioned more research is needed. For Denver's approach, the University of Denver's Center for Housing and Homeless Research has partnered with the Basic Income Project to provide some of that further research. 

But early results from New Leaf are enough for Donovan to have faith in his program. 

"The cash creates financial stability that creates the conditions upon which people can do things they can't do otherwise," Donovan said. "And that's the power of it."

The Denver City Council agreed and authorized a $2 million investment in a September meeting. The $2 million in American Rescue Plan money will specifically focus on women, transgender and gender non-conforming individuals and families. This population of the homeless represents about 30% of the total demographic, according to Donovan. The $2 million invested by the city, he said, accounts for roughly 22% of the program's budget. 

"We see promise in the basic income model, as demonstrated by peer cities with similar programs which saw outcomes ranging from increased employment, increased food security, and quicker transitions to stable housing," Derek Woodbury, the director of communications for Denver's Department of Housing Stability, said. "We anticipate positive outcomes from this partnership."

Donovan said some initial reporting on the city's investment led some to believe the program was only for women, transgender and gender non-conforming individuals and families. This is not the case, he said and clarified that the project is open to anyone over the age of 18, provided they meet the criteria to apply. 

"We're committed to serving the demographics of homelessness," he said. "We built this whole program on a foundation of equity, justice, diversity, inclusivity, and accessibility... We're going to keep that at the forefront as we continue to build this."

The Denver Basic Income Project accepts one-time or recurring donations. The website also lists multiple ways to get involved, including volunteer opportunities. 

Those interested in participating can find the online application here. All other information can be found on the program website.