Fort Lyon: Statewide Recovery Housing on a Former Army Post and VA Campus

A Peer-Led, Two-Year Model for Coloradans Experiencing Homelessness

Bent County, Colorado | Colorado Coalition for the Homeless
COLORADO Rural Launched 2025
Aerial view down the main street of Las Animas, Colorado, with the historic Bent County Courthouse in the foreground and open farmland stretching to the horizon.
Lead Agency
Colorado Coalition for the Homeless
Location
Bent County, southeast Colorado (Las Animas campus); corporate offices in Denver
Year Launched
Fort Lyon residential program launched in 2013; the Infrastructure and Resiliency award began in 2025
Opioid Settlement
$500,000 over two years, equal to 10.42% of one year's $4.8M operating budget (about 5.2% per year)
People Served
464 unique residents in 2025 against a 246-bed capacity
Service Type
Recovery Housing, Peer Support, Care Navigation, Employment & Training
464
Unique Residents
Served in 2025
246
Beds
Two-year residential capacity on a 552-acre campus
$17K
Annual Cost per Resident
Against about $35K a year to keep an unhoused person safe statewide

In partnership with the Colorado Coalition for the Homeless, this award supports staffing and infrastructure improvements at Fort Lyon, a two-year residential recovery community in southeast Colorado offering peer support, case management, vocational training, and behavioral health services for people across the state affected by opioid use disorder and housing instability.


The Challenge They Were Addressing

Before The Fort opened in 2013, Coloradans who were unhoused and living with substance use disorder had few realistic options for stable, non-clinical residential recovery. Emergency shelters, short detox stays, and 30-day inpatient programs cycled people back to the street with no time to rebuild identity documents, income, or housing. The state was carrying the downstream cost of that cycle in emergency room visits, jail beds, and shelter capacity, at roughly $35,000 per unhoused person per year.

The former Fort Lyon site, a 552-acre campus in southeast Colorado that had served as an Army post, a VA hospital, and a prison, had been sitting largely idle. In 2013, the Colorado Coalition for the Homeless converted the campus into a 246-bed residential recovery community for people with substance use disorders who were at risk of or experiencing homelessness. The model was low-barrier, non-clinical, and peer-led, and it allowed residents to stay for up to two years, long enough to rebuild.

In 2025, the opioid settlement award added three new full-time positions, food-cost offsets, personal-supply purchases, and beds for graduating residents to that model. The award added capacity to an existing case management team. As the program director put it, with this population, "I don't think you can have enough case management."


What They Built

The Fort is a two-year, 246-bed residential recovery community on a 552-acre campus in southeast Colorado. Residents come from anywhere in the state, provided they have been Colorado residents for at least six months, and they generally enter through a referral source rather than as walk-ins. The six-month residency requirement also helps ensure that residents qualify for Colorado Medicaid. Applications can be completed online or on paper, and every applicant clears a background check. The program does not accept registered sex offenders, individuals with a pattern of recent violent crimes, people with high-acuity medical needs who cannot complete their own daily living tasks, or people whose mental health is not currently stable on medication. Everyone else is welcome.

Once on campus, residents live in a zero-tolerance community for drugs and alcohol, a policy chosen by residents themselves early in the program's history to maintain the community's integrity. Staff use random and for-cause urinalysis, plus urinalysis and breathalyzer checks when residents return from a pass. The program director describes the program as nonpunitive. Residents who experience a return to use are supported into treatment and, on completion, are eligible to return to campus with an updated case plan. That response replaced an earlier policy that discharged residents immediately after a relapse and allowed them to reapply after 60 days, a window the program director calls "the death zone" for people who had just lost both sobriety and housing.

Programming runs nearly 24 hours a day and is entirely opt-in. Residents can attend 15 recovery, health, and wellness meetings a day or none. They must attend one mandatory community meeting and one mandatory floor meeting each week, and they must take prescribed medications as directed or follow a documented disposal protocol with the clinic. Everything else is theirs to shape. Three meals a day, medical and behavioral health services from an on-site clinic, an on-campus high school diploma program, partnerships with a local college for classes and trade programs, pre-employment work modules with a small stipend, and shuttle service to work and school are all available on campus.

The two-year opioid settlement award funded three full-time positions that extend that model. The case manager and the benefits specialist work alongside the existing case management team, with the benefits specialist helping residents obtain IDs, driver's licenses, birth certificates, Medicaid, SSDI, and VA benefits and arranging long-term care placements. The overnight safety staff member observes and reports, responds to alarms, and maintains a physical presence that, in the program director's words, makes residents feel safe. The award also offset roughly $140,000 in food costs, purchased personal-care supplies and linens, and funded beds that will go home with graduating residents as they move into permanent housing.

Key Program Components

Two-year residential recovery community
A 246-bed campus where residents can stay up to two years, long enough to rebuild identity documents, income, housing, and community. Low-barrier entry, non-clinical model, referral pathway with background screening.
Peer-led programming, 24 hours a day
Nearly all recovery, health, and wellness meetings are peer-led. 53 staff overall, with 13 in recovery and 10 of those Fort Lyon graduates. Residents choose their level of engagement.
Zero-tolerance community with a treatment-first return-to-use protocol
Residents chose an abstinence policy to maintain the community's integrity. Residents who return to use are supported into treatment and eligible to return afterward with an updated case plan, replacing an earlier 60-day discharge policy.
Case management and benefits navigation
New full-time case manager and full-time benefits specialist funded by this award. The benefits specialist handles vital documents, SSDI, SSI, VA benefits, Medicaid, and coordinated placements into long-term care for aging residents.
On-site clinic, behavioral health, and mobile dentistry (emerging)
Medical and behavioral health services are on campus but structurally separate from the housing program. Residents can walk downstairs to a clinic in the morning. Use is voluntary. The program hopes a mobile dentist will begin visiting campus by early 2027.
Education, employment, and transportation
On-campus high school diploma program, community-college partnership, pre-employment work modules with a small stipend, two shuttles running set routes every day, and an added route for the 22 residents enrolled in college at the start of 2026.
Permanent housing transition team and graduation beds
A dedicated transition team begins working with residents on permanent housing at the six-month mark. Graduating residents will leave with a bed, purchased through this award, for their new home.
Overnight safety coverage
A new full-time overnight safety position funded by this award observes and reports, responds to alarms, and provides a consistent physical presence that makes residents feel safe.

Who You Need at the Table

Required Partners
Role
Colorado Coalition for the Homeless (Lead Agency)
Operates The Fort. Employs the 53-person on-campus team, holds the state contract, and administers the settlement award.
Colorado Department of Local Affairs (DOLA)
Primary state funder. Fort Lyon is written into the state Long Bill and administered through DOLA.
Regional opioid settlement coalition (Region 19)
Administered the Round 3 opioid settlement award and a subsequent Round 4 infrastructure award.
Local behavioral health providers
Deliver on-site behavioral health services and coordinate step-up when residents need clinical treatment.
Statewide treatment facilities
Referral network for residents who need clinical treatment to return to use or address a co-occurring condition.
Local officials, the mayor's office, fire, and EMS
Community relationships that support siting and ongoing operations in a small rural community.
Helpful Partners
Role
Local health department
Public-health coordination and on-site clinical service delivery.
Local community and trade colleges
Provide classes, degree programs, and trade programs for residents who choose to enroll.

What made a willing partner essential vs. optional?

The distinguishing feature of a required partner is a funding relationship or a service that the program cannot provide in-house. DOLA carries the operating base through the state Long Bill, which makes the underlying model financially viable. The regional opioid settlement coalition administers the settlement dollars that funded the three new positions and the food, supply, and infrastructure work. Local behavioral health providers and statewide treatment facilities extend the clinical continuum that a non-clinical residential community cannot deliver on its own.

"Find the facility first, get the community buy-in, the larger community buy-in, and work with your local officials, fire, EMS, the mayor's office... before you start the program. Mitigate the misinformation before it even starts."
Amanda Johnson, Program Director, Fort Lyon

Helpful partners expand reach without being essential to day-one operations. Community colleges, the local health department, and mobile dentistry all add services that residents value, and The Fort could operate without any single one of them. Local officials are a required partner at the siting stage and again during any expansion, when community relationships and stigma mitigation cannot wait. Amanda Johnson, the program director, held a town hall five weeks into her tenure to address misinformation and repair the community relationship, and that work continues.


Budget Breakdown

$500K
Total Settlement Award
Over two years, 2025 to 2027
$500K
Opioid Settlement Funding
Awarded through the Region 19 regional coalition
$140K
Food Costs Offset
Of the award, protecting the three-meals-a-day baseline
Operations Budget
$4.8 million annually to operate the 246-bed Fort Lyon residential community
Primary Funding Source
Colorado Department of Local Affairs, administered through the state Long Bill.
Additional Funding
Foundation grants, state grants, local grants, and a subsequent Round 4 opioid settlement infrastructure award of $492,000 for door replacement, safety lighting, heating and cooling unit replacement, and gym and court renovation
Budget Category
Amount
Notes
Personnel/Staffing
The majority of the award
Three new full-time positions funded by this award (case manager, benefits specialist, and overnight safety staff).
Treatment/Clinical Services
Included in the operating base
On-site behavioral health and medical services are delivered through existing Coalition operations and are structurally separate from the residential program.
Peer Support/Recovery Coaches
In-kind and embedded
13 of 53 staff are in recovery, and 10 are Fort Lyon graduates. Peer support is embedded across the operating base rather than paid as a separate line.
Technology/Data Systems
N/A
The award funds staffing and supplies. The Coalition's operating base carries data and reporting systems.
Training & Capacity Building
N/A
New hires are onboarded into existing Coalition training and supervision structures.
Supplies/Equipment
Meaningful allocation
Personal-care supplies (toothpaste, toothbrushes, soap, shampoo, deodorant, lotion), linens, blankets, towels, clothing, and beds for graduating residents transitioning to permanent housing.
Contracts
N/A
All funded roles are Coalition employees rather than contractors.
Admin/Indirect
Standard Coalition rate
The Colorado Coalition for the Homeless applies its standard indirect rate as the lead agency.

What is the minimum viable budget to replicate this?

The Fort spends roughly $17,000 per resident per year, well below the approximately $35,000 the state spends to keep an unhoused person safe through shelters, emergency rooms, and other public services. A rural county building a smaller version should expect residential operating costs to be the main constraint. Settlement dollars are best used, as they were here, to add the roles that make a residential model work, including benefits navigation, case management, and overnight safety.

Roughly $140,000 of the award offset rising food costs. Without that offset, rising costs would have put the three-meals-a-day baseline at risk. Food, personal supplies, and graduation beds look small in a budget, and residents use them every day.


What Worked and Why

Specific decisions or design features that drove success

Hiring staff with living and lived experience of recovery shaped the rest of the program. 13 of the 53 staff are in recovery, and 10 are Fort Lyon graduates. The program director's goal is for the next four hires to also be graduates or people in recovery. That hiring builds credibility with residents from the start and creates a visible pathway from resident to graduate to staff member.

Resident autonomy within a structured community drives buy-in. Residents can attend 15 recovery meetings a day or none at all. Two meetings per week are mandatory, medication management follows a clear protocol, and residency requires abstinence. The program director, who went through a 30-day inpatient program herself, contrasts this with programs that dictate wake times, meals, and groups. Many residents have experienced a loss of control throughout their lives, and she credits control over their own recovery for their buy-in.

Replacing the 60-day discharge policy with a treatment-first return-to-use protocol removed a period of acute risk. Under the earlier policy, a resident who relapsed was discharged immediately and could reapply after 60 days. In practice, people who had just lost both sobriety and housing were on their own during that 60-day window, and some did not return. The new protocol supports residents into treatment and, on completion, back to campus with an updated case plan. Residents with a brief return to use after long sobriety often do not meet ASAM criteria for a 14- or 30-day program, so the protocol also allows a return from detox with added expectations in the case plan. The program director describes the results as very successful.

Adding a full-time benefits specialist to the case management team addressed a barrier that residents arrive with. Residents arrive without IDs, driver's licenses, birth certificates, Medicaid enrollment, or Social Security cards. Every one of those documents is a barrier to permanent housing, employment, and long-term care placement. The specialist has also built relationships with several long-term care facilities, so aging residents can move to a setting that fits their stage of life.

Community relationship-building has continued throughout the program's 13-year history. The initial siting was contentious, and community engagement remains a standing part of the program director's job. Replicators should expect community pushback. Dedicated time and honest engagement carried The Fort through it.

"Connection is the opposite of addiction, so we try to keep people engaged and not isolating in their rooms."
Amanda Johnson, Program Director, Fort Lyon

Early outcomes and data

  • The Fort served 464 unique residents in 2025 against a 246-bed capacity.

  • The Fort spends approximately $17,000 per resident annually, compared with approximately $35,000 statewide to keep an unhoused person safe.

  • 13 of 53 staff are in recovery, and 10 are Fort Lyon graduates.

  • The settlement award offset roughly $140,000 in food costs, protecting the three-meals-a-day baseline.

  • The settlement award funded three new full-time positions for a case manager, a benefits specialist, and overnight safety staff.

  • A treatment-first return-to-use protocol is operational and has replaced an earlier 60-day discharge policy.

  • The Coalition secured a Round 4 opioid settlement infrastructure award of $492,000 for door replacement, entrance and parking-lot lighting, replacement of roughly 160 heating and cooling units in residential housing, new gym equipment, and conversion of the tennis courts to pickleball courts.


Replication Guide
How to Replicate This Model
Minimum viable version
A rural county building a smaller version of this model needs three components. The first is a physical facility and a funding base that can carry residential operating costs for a stay long enough for residents to rebuild, ideally 12 to 24 months. The second is a staff built around living and lived experience, with a core of people in recovery and, over time, program graduates. The third is the set of wraparound roles a settlement award can realistically fund, including case management, benefits navigation, and overnight safety.
First three steps
1
Secure the facility and build the community relationship before the program starts Community pushback is the norm in a rural community. Secure control of the facility, then work with local officials, fire, EMS, and the mayor's office to mitigate misinformation before you open the doors. Plan on continued relationship maintenance for the life of the program.
2
Hire staff with living and lived experience from the first position People in recovery, and eventually program graduates, are what make the community credible to residents and what create the pathway from resident to graduate to staff member. Set a hiring target with the first hire and hold to it.
3
Design the resident policies with residents at the table The Fort's zero-tolerance policy came from residents in the program's early years. That co-design creates buy-in and allows residents to self-monitor the community's integrity. Do not import a template from another program without asking residents what they need.
Common Pitfalls
✕
Launching before community relationships are built Opening the doors before local officials, fire, EMS, and neighbors have been engaged invites pushback that consumes staff time and slows down the program's ability to serve residents.
✕
Punitive relapse policies A 60-day discharge after a return to use leaves a person without housing or treatment when they need both. Design a response that supports residents in entering treatment and returning to campus with an updated case plan.
✕
Under-investing in benefits navigation Residents arrive without vital documents, which are hard to obtain without someone who knows the system. The Fort added a dedicated benefits specialist to its existing case management team for this work.
✕
Building without residents at the table Policies designed without resident input tend to feel imposed and reduce buy-in. Community-designed policies enable residents to self-monitor safety and integrity.
✕
Treating settlement funding as an operating base Settlement dollars are best suited to wraparound roles and one-time capital. Secure state or foundation funding for core residential operating costs first.

Lessons Learned

  • Expect a gap of several months between award notification and available cash. The intent-to-award letter arrived in mid-May 2025, and cash did not begin flowing until September or October. Grantees may spend from the award-letter date only if they can front the costs from other sources, and the grant end date does not move. Funded positions cannot be hired until cash arrives. Bridge funding should be in place before the award is accepted.

  • Settlement dollars are well suited to wraparound roles. The award's three full-time positions (case manager, benefits specialist, and overnight safety) extended case management, benefits work, and overnight coverage across a 246-bed community. The benefits specialist's long-term care relationships gave aging residents a placement option suited to their needs.

  • The Fort costs the state less than homelessness does. The Fort spends $17,000 per resident per year, compared with an estimated $35,000 per year to keep an unhoused person safe through emergency rooms, shelters, and other public services.

  • Autonomy plus a small set of non-negotiables is the operating principle. Two mandatory meetings a week, a documented medication-management protocol, and a zero-tolerance policy chosen by residents are the entire fixed structure. The resident chooses everything else. The program director credits that balance for resident buy-in.

  • Staff without living or lived experience bring value too. The program director reminds residents that staff with education backgrounds, though they have not lived what residents have, bring knowledge residents can learn from. She identifies staying curious and open-minded as the disposition that makes that exchange work.

"I would love to put 50 forts across every state in the nation."
Amanda Johnson, Program Director, Fort Lyon

Primary Contact
Amanda Johnson
Program Director, Fort Lyon
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