HOST Shows Strong Early Results from Performance-Based Contracting

HOST Shows Strong Early Results from Performance-Based Contracting

Published on August 04, 2026

The Department of Housing Stability (HOST) announced strong six-month results from its performance-based contracting pilot, launched in January 2026 to modernize how the city funds and measures shelter operations.

The pilot replaces traditional reimbursement models with a results-driven structure that pays providers for achieving clearly defined performance benchmarks. The shift aims to improve accountability, reduce paperwork, and focus public investment directly on outcomes for people experiencing homelessness.

"HOST worked with our shelter providers to design these metrics carefully and ensure they focus on what shelter providers can influence while recognizing that long-term housing outcomes depend on broader factors like housing supply and federal policy," said Cole Chandler, Executive Director of HOST. "The goal of the new contracts is to ensure people experiencing homelessness have access to shelter and, once there, are regularly engaged about housing options and solutions - instead of having providers and city staff focused on receipts and expense disputes."

The pilot covers seven shelter contracts representing 769 units and more than $50 million over three years. All expected outcomes are client-focused, with performance tracked through the Homeless Management Information System (HMIS) and real-time dashboards.

Early data show that the new model is helping shelters sharpen their focus on core housing and engagement goals, while giving HOST significantly better visibility into systemwide operations.

A major indicator of the pilot's early success has been shown across its four core performance metrics:

Metric 1: Occupancy Rate by Shelter

Providing a bed and essential needs each night. Occupancy rates rose from 84% to 93% year over year, surpassing the 90% target and demonstrating stronger use of available shelter capacity, with six of seven shelters improving performance.

Metric 2: Rapid Resolution at Intake

Engaging households within five days on options to quickly exit homelessness, including through one-time funds and case management. Rapid Resolution at intake exceeded expectations, with 97% of households receiving this service in Q2, well above the 90% target and aided by clearer standards and consistent tracking.

Metric 3: Housing-Focused Case Management

Regular case management to help households move into permanent or stable housing. Housing-focused case management sessions became more consistent and exceeded the 80% benchmark, reflecting a shift toward more intentional and frequent housing conversations.

Metric 4: Active Housing Assessments in the Coordinated Entry Queue

Ensuring households have a current assessment and are active in Denver's housing queue, which is required to seek housing assistance through the homelessness response system. Providers more than doubled the number of households with active housing assessments in the Coordinated Entry queue, dramatically increasing the number of people positioned for upcoming housing opportunities.

Additional indicators also show improvements in safety and guest experience. Emergency incidents decreased significantly, including a 22% reduction in 911 calls and a 50% decrease in incident reports. Guest satisfaction reached 72%, above the national average of roughly 70%.

The shift to performance-based contracting has changed behavior and culture across the system. Providers focused more on case management, rapid resolution, coordinated entry and housing conversations. The streamlined invoicing structure has reduced administrative pressures and given providers more flexibility, while HOST staff have been able to spend more time on quality assurance and operational support.

"This pilot shows what happens when we align funding with outcomes," said Cole Chandler, Executive Director of HOST. "Providers are more focused and the work is more strategic. And I want to recognize the staff, both within HOST and across our provider network, whose dedication and problem-solving made this model possible. Their work set the foundation for the success we're seeing today in delivering better, measurable impact for people experiencing homelessness."

HOST plans to build on the pilot's momentum by expanding performance-based contracting to additional shelters while continuing to refine the model. The next phase will focus on strengthening provider training, improving performance monitoring and HMIS data quality, and pairing enhanced shelter performance with additional housing resources to translate operational progress into more housing placements.

• Housing Stability