Starting November 1, Denver’s 60-unit La Paz tiny-home village at 2301 S. Santa Fe Drive in the Overland neighborhood began transitioning to a substance-free model, a process expected to wrap up by early 2027. Residents who want to stay must opt in and sign an agreement outlining expectations before they can apply for the waitlist.
According to Westword, residents who do not want to make the commitment can leave the model without losing access to shelter altogether; they may instead be directed to Steele or another lower-barrier, city-run shelter. Jessica Ehinger told the outlet that La Paz will be a community of residents who choose to participate in a substance-free environment.
What Changes, and What Doesn't, at Steele
Steele has 40 units, compared with La Paz’s 60, and will continue to operate as a low-barrier shelter, with people accepted through city outreach teams rather than referrals and a waitlist. Both villages already prohibit active drug use or dealing on their property, Westword reported. La Paz’s new agreement adds expectations beyond those existing rules.
Cuica Montoya said a low-barrier designation should not make Steele seem like a lesser or less deserving option. Such shelters still have expectations, accountability and community standards, Montoya told Westword. Colorado Village Collaborative, which operates both villages with Denver’s Department of Housing Stability, says it aims to offer pathways that respect individual choice and autonomy while maintaining safe, supportive environments.
A System Already Shrinking
La Paz opened in March 2024 and is scheduled to close at the end of 2027. Its timeline comes as Denver scales back parts of its micro-community program under Mayor Mike Johnston. The city did not renew the Monroe micro-community contract in its 2026 budget, and Monroe’s license expired in September 2026. The former Monroe site is being converted into a 400-bed cold-weather shelter, with a nearby family shelter planned to temporarily accommodate about 20 families, according to Westword. The cold-weather shelter is not subject to the city’s four-year zoning rule; La Paz’s zoning permit runs through 2028 and Steele’s through 2029.
The planned family shelter has drawn opposition. At an October 13 City Council meeting, Housekeys Action Network Denver members said the proposed building would have shared bathrooms, no cooking equipment and a fence around the site. Gigi Hagopian called the plan undignified and compared its conditions to a prison, Westword reported. Cole Chandler described the shelter as an entry point into Denver’s broader shelter system.
Budget Pressure Behind the Pullback
Budget constraints are part of the backdrop: Denver faces a $200 million deficit, and cuts affecting Monroe and the Comfort Inn shelter saved the city $12.4 million, according to Westword’s earlier reporting. A city budget document says the broader All In Mile High initiative is shifting its focus toward housing, work connections and street engagement for high-acuity populations. In August, Julia Marvin said the Department of Housing Stability was winding down temporary shelter sites while increasing its focus on housing, Westword reported.
Colorado Village Collaborative partnered with Denver’s Department of Housing Stability in 2021. The partnership has produced three tiny-home operations offering temporary shelter and direct access to resources intended to help people move into permanent housing. Denver’s four current micro-community villages together have 190 beds, and two other Colorado Village Collaborative communities remained open. The organization reports that 60.8% of people who have lived in its communities exited to positive housing destinations.
What the Published Numbers Show
Colorado Village Collaborative describes its micro-community model as including community standards addressing public substance misuse, violence and weapons. Its published description does not specify La Paz’s new sobriety agreement. The organization reports that 60.8% of people who have lived in its communities exited to positive housing destinations, but the information cited here does not define what qualifies as a positive destination. Colorado Village Collaborative provides the description of its model. The Metro Denver Homeless Initiative’s 2025 Point-in-Time count found that the number of people counted in emergency shelters and transitional housing across the region rose from 7,058 in 2024 to 8,625 in 2025. The number counted sleeping on streets, in cars or in other places not suitable for living fell from 2,919 to 2,149. These figures count people in those settings during the Point-in-Time count; they are not measures of shelter capacity. Metro Denver Homeless Initiative published the regional figures.
Each unit at La Paz is an individual hard-sided shelter with a bed and desk, backed by a shared community space that includes restrooms, showers, a kitchen and gathering areas, according to Colorado Village Collaborative's own description of the site. Denver's broader micro-community model also includes the Stay Inn, run by Bayaud Works, and Elati Village, run by the Gathering Place.
