TGTHR, a Boulder-based nonprofit serving homeless youth, will close Chase House, its South Boulder residential treatment program for kids with mental illness or addiction, on Sept. 19, citing financial challenges.
The decision comes after the organization recently shut down The Source, the City of Boulder’s only youth shelter with 16 beds, and paused its outreach and drop-in programs, following a state licensing audit. TGTHR continues to operate its long-term affordable housing programs in Boulder and Denver, along with limited case management and supportive services.
Annie Bacci, TGTHR’s CEO, said the nonprofit struggled to fill beds at Chase House in part because of strict eligibility requirements and could not cover costs with Medicaid reimbursements.
Changes to federal law, including the Families First Prevention Services Act, limited placements to young people needing specific behavioral health treatment, she said. Combined with unpredictable Medicaid funding, the program operated below capacity and lost money.
TGTHR’s budget relies heavily on a mix of government grants and private philanthropy, with about half of its revenue coming from government grants, about one-third from philanthropy, and the rest from fees, investments and other sources, according to a recent financial report.
“It becomes a funding challenge when you look at the Medicaid reimbursement for the beds per day and the staffing needs,” Bacci told Boulder Reporting Lab. “We were losing money every month trying to operate this program.”
Chase House had capacity for about eight beds for people ages 12 to 18, with services including medication support, counseling, therapeutic programming, education and field trips, according to the organization’s website. Stays were typically 30 days, making it one of the few long-term mental health treatment options in Boulder County, serving as a step-down location for young people transitioning from a hospital after a mental health hold.
Three people currently live at Chase House. The program had nine full-time staff, one part-time staffer and three relief staff, according to TGTHR.
With its closure, Boulder County will have no remaining residential treatment programs specifically serving homeless youth.
Last year, The Source, TGTHR’s now-closed Boulder youth shelter, served more than 200 people, compared to about 18 to 20 at Chase House, Bacci said. According to the Metro Denver Homeless Initiative, more than 120 people under age 18 in Boulder County were counted as experiencing homelessness in the 2024 survey report.
TGTHR’s affordable housing sites — Nest56 in Denver and 1440 Pine Street in Boulder — remain open, together offering nearly 100 beds. The nonprofit is also seeking to restore its drop-in services and street outreach team, depending on a federal grant decision.
Bacci said the closure of Chase House will allow TGTHR to focus on those programs and its affordable housing.
“There is a lot of grief that comes along with closing a program and yet there is hope in this moment,” she said, referring to the organization’s shift toward affordable housing.
The closure comes amid broader funding challenges for homelessness services in Boulder County. Earlier this year, All Roads, the city’s largest adult shelter, reduced its bed capacity from 180 to 160 after a drop in county funding. At the same time, federal money for permanent supportive housing, which combines affordable housing with services to keep people housed, is also at risk.
The Boulder Chamber and TGTHR will host a virtual town hall on Tuesday, Sept. 2, to discuss the funding challenges.
