THEGOAL:

RepurposeFortLyon
andCreateSolutionsfor
VeteranandChronicHomelessness

CHALLENGE:
UnusedcapacityatFortLyon
TheFortLyonVAHospitalprovidedacaringcommunityto
veteransforover100yearsuntil2002whentheproperty
wastransferredtotheState.
In2002,theVAissuedaQuitclaimdeedtotheStateof
Coloradosothatthefacilitycouldserveasaprisonforthe
growinginmatepopulation.
InFY201112,withprisonpopulationsdecliningby131
inmatespermonth,theStatedecommissionedtheFortLyon
correctionalfacility.
2

TheCostofNOTRepurposingFortLyon
MaintenanceMode:
Annualmaintenancecost=$1.7mil
Preservesinfrastructure
Protectsstateinterests
MothballMode:Infrastructurewilldeteriorate;
Onetimeclosurecosts=$326,500
Annualliability/propertyinsurancepremium=$55k
Infrastructurewilldeteriorate(includeshistoricbuildings)

It is expensive to leave Fort Lyon unoccupied.

3

CHALLENGE:
Inabilitytoadequatelydeliverservices
tothehomelesscommunity
Inordertorecoverhomelessindividuals,thereisatrifold
needforhousing,supportiveservicesforsubstanceabuseand
mentalillness,andvocationaltraining.Thereiscurrentlyno
suchdeliveryofcomprehensiveservicesinruralareas.
Withoutimmediateaccesstosuchservices,chronically
homelessindividualswillremainhomeless.
Manyhomelessindividualsstruggletorecoverwithinthe
familiarsurroundingsoftheurbancommunitywhich
currentlyenablesthem.Theyneedafreshoutlookinorderto
beginafreshstart.TheDenverHousingAuthorityevicts56%
offormerlyhomelessveterans.
4

TheCostofLeavingaPersonHomeless
Costs
Medical
Jail
Shelter (2)
Detox
Total

Street Living
$17,381
$1,798
$13,688
$10,373
$43,240

Ft. Lyon (1) Annual NROI

$4,550
$12,831
0
$1,798
$8,500
$5,188
$4,550
$5,823
$17,600
$25,640

Median Number of Patients Served

Sustained success rate after 3-years
Annual Net Return on Investment- Ft

200
93%
$4,769,040

(1) Per Person cost @ 200 clients over 3 yrs

(2) Homeless Shelter cost $25/nite @ 278 nites annually and Ft Lyon Shelter cost
includes maintenance & operations of entire campus

It is expensive to leave people on the streets.

THEOPPORTUNITY:
RepurposetheHistoricFortLyonCampustoprovidea
GatewaytoPermanentHousingforHomelessIndividuals

FortLyonis
AhistoricVAhospital
Abeautifulcampuson500acres
Embeddedinacommunitywith
atraditionofcaring

 TheFortLyoncampusoffersanunprecedentedopportunityto
providehousing,supportiveservicesandvocationaltrainingin
onebeautifulandfunctionalsetting.
ThecommunityofLasAnimashasamultigenerationalhistoryof
servingFortLyonspreviousveteranclientsandiseagertonow
usethisfacilitytosimilarlyhelprecoverhomelessindividuals.
GovernorJohnHickenlooperhasmadehousingthehomelessa
priorityforhisadministration,bothastheformerMayorof
DenverandnowasGovernor.
TherurallocationofFortLyonoffersafresh&safeenvironment
forhomelessindividualstobeginasustainablepathtorecovery.
8

CaseStudy:HarvestFarm
AworkingfarminWellington,
Coloradoowned&operatedfor20
yearsbytheDenverRescue
Mission.
Arecoverypathforurbanhomeless
individualswhichprovidesafresh
startinaruralsetting.

TheProposal Summary
WeproposethatColoradoinvestina3year
HousingFirstdemonstrationprojectto
providetransitionalhousingcoupledwith
supportiveservicesandjobtrainingtoprovide
agatewayforhomelessindividualstostabilize
theirlivesandattainpermanenthousing.
Weproposethat,withsupportfromFederal
partners,thisdemonstrationoccuratFortLyon.
10

TheProposal Specifics
InpartnershipwiththeColoradoCoalitionforthe
Homeless(CCH),wewillidentifyandengageColorados
mostchronichomelessindividuals.
WehaverequestedofHUDtobeallowedtoprojectbase
Section8vouchersandHUD/VASHvoucherstoenableus
toprovidehomelessindividualsimmediateaccessto
housing.FortLyonbecomestheirgatewaytopermanent
housingelsewhere.
WorkingwiththelocalFederallyQualifiedHealthClinics,
CCHwillensurethattheseindividualsareprovidedwith
neededsupportiveservices includingsubstanceabuse
andmentalhealthtreatment andprimarycareto
stabilizethemandbegintheirpermanentrecovery.
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TheProposal(continued2)
WorkingwiththelocalOteroJuniorCollege,wewill
provideremedialclassroominstructionandvocational
trainingtobothourhomelessclientsandthegeneral
population.WewillutilizeFortLyonsexistingkitchen
andclassroomsforculinarytrainingandvastagriculture
campusforbothvocationalandtherapeuticpurposes.
AfteratleastoneyearofresidencyatFortLyon,clients
willbeeligibletoreceiveaSection8housingvoucherto
relocatebacktopermanenthousinginanother
community.Wewillutilizeexistinghousingassistance
andworkforceplacementresourcestoseamlessly
transitiontheseindividualsintoastableandproductive
rolewithintheircommunityofchoice.

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WhowillowntheFtLyonfacility?
AftertheVAclosedthefacilityin2002,theStateassumedownershipto
assistthelocalcommunityandmeetthestatesgrowingprison
population.TheQuitclaimdeedincludesaReversionClausethatstates:
Ifthepropertyisused,atanytime,foranypurposeotherthanfora
correctionalfacility,allright,titleandinterestinthepropertyshall
automaticallyreverttotheGrantor.
ThereisalegalquestionastowhethertheVA,asGrantoroftheReversion
Clause,canoptNOTtoenforcethatclauseandthusdenytransferofthe
titlebacktothefederalgovernment.
TheVAhasexpressednointerestinresumingownershipofthefacility,
andhasverballyapprovedColoradosrequesttousethefacilityfornon
prisonpurposes.
IftheStateretainsownershipofthefacility,thenweproposetoleasethe
facilitytoBentCountyinordertoprovidedirectoversightbythe
community.
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ShorttermTimeframe
(throughJune2014)
Coloradowilldedicate$5milfromtheMortgageSettlementfundsfor
controlledmaintenance&supportiveservicesthroughJune2014.
GovernorHickenlooper isproposingadditionalfundingof$3.6milto
operatetheFortLyonfacilitythroughJune2014.
Projectbase40HUDSection8vouchersand40HUD/VASHvouchersat
FortLyontoprovideimmediateaccesstohousing.
ScopeofClientBase:
o April1,2013:30clients(staffoccupancytobeginJanuary1)
o July1,2013:80clients
o July1,2014:200clients
o Longtermcapacity:300clients(requiresHUDsupport)
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LongtermTimeframe
Secureadditionalhousingassistancefortheexpandedclientbase.
WeareworkingwiththeUSDepartmentofHealthandHuman
Servicestoassureintegratedphysicalandbehavioralhealthservices
areavailablethroughcollaborativeeffortswithexistingsafetynet
providers.
WehaverequestedthatHHSprovideSAMSHAfundingfora
demonstrationprojecttobridgethehomelesscommunitytothe
HealthReformActstartingin2014.
ExploreotherpotentialusesoftheFortLyoncampusthatare
compatiblewiththistransitionalhousingmodel.
Federalsupportwillbenecessarytosupportfulloccupancy.
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Howwillthe
MortgageSettlementfundsbeused?

Housing&Vocationalstaff
ClinicalStaff&Therapist
Security
Food
Furnishings
Operationalexpenses
Controlledmaintenance
16

ThreeYearBudget
YEAR

ITEM

SETTLEMENT
FUNDS

Housing &Svcs

$650,000

GENERAL
FUND

FY1213Supp
Operations&Maint

$839,012

FY1314
Housing &Svcs

$1,251,422

Operations&Maint

$ 615,000
$2,125,852

FY1415
Housing&Svcs
Operations&Maint

$1,868,211

$1,050,000
$2,125,852 17

ThisAdministrationremains
committedtothedualgoalsof
repurposingFortLyonand
helpingourhomelesspopulation.

Yoursupportisnecessaryto
achievethesegoals.

18