A $40 million facility just opened with a radical idea: reward progress, not just provide beds. Here's why this model matters for your recovery housing operation.
If you've been following recovery housing trends, you've probably noticed a major shift happening across the country. Cities and states are moving away from "no strings attached" housing models toward something more structured—programs that incentivize progress, require accountability, and measure success by how many people achieve independence, not just how many beds are filled.
The clearest example of this shift just opened its doors in Aurora, Colorado. On November 17, 2025, the Aurora Regional Navigation Campus welcomed its first 176 residents into a 600-bed facility that operates on what officials call a "tiered progression model." It's not Housing First. It's not Work First. It's something in between—and it's attracting national attention as a potential blueprint for recovery housing's future.
Here's why this model matters, what the data says about tiered approaches, and how you can adapt these principles for your own operation.
The tiered progression model creates multiple levels of housing within a single program, with each tier offering better accommodations and more independence as residents demonstrate progress toward self-sufficiency. Think of it as a game with levels—but the stakes are real, and the reward is lasting recovery.
Aurora's campus divides residents into three distinct tiers:
What it is: Low-barrier emergency shelter
Requirements: None. No sobriety requirements, no work requirements
Accommodations: Army-style cots in large open rooms with lockers and basic storage
Services: Basic needs met—food, shelter, safety
Philosophy: "Just show up." Meet people where they are
What it is: Semi-private transitional housing with case management
Requirements: Agree to work with case managers and peer coaches
Accommodations: Pod-style living with walls on three sides, private bed, better storage
Services: Active case management, goal-setting, barrier identification, skills training
Philosophy: "It takes courage to face what's holding you back"
What it is: Independent hotel-style rooms for working residents
Requirements: Full-time employment, sobriety maintained, contribute 30% of income (~$1,000/month)
Accommodations: Private hotel rooms with bathroom, 1-2 beds, up to 2-year stays
Services: Continued access to support services, workforce development, permanent housing navigation
Philosophy: "Commitment to long-term independence"
The magic is in the progression. Residents can see their peers moving up, which creates natural motivation. Staff can point to success stories happening in the same building. And the facility doesn't have to choose between being low-barrier or recovery-focused—it's both.
While Aurora's campus is brand new, the tiered approach to recovery housing isn't. Research supports what Aurora is betting on: structured progression with clear incentives produces better outcomes than either extreme.
Positive outcomes across the board: Studies of recovery housing consistently show improvements in:
Engagement matters more than mandates: Research from 300 individuals in sober living houses over 18 months showed significant improvements in alcohol/drug use, psychiatric symptoms, employment, and arrests—regardless of whether residents were mandated to participate or self-selected.
Peer environment drives outcomes: Higher scores on the Recovery House Environment Scale (measuring social model principles) are positively associated with length of stay and negatively associated with substance use days. The social environment—seeing peers succeed—matters enormously.
Work and structure improve retention: While Housing First models show 62% housed after two years, programs incorporating work requirements and structured support show retention rates as high as 98% when properly designed.
Low-barrier entry (Tier 1) is essential: Studies show that removing barriers to entry gets people off the streets quickly. Aurora's Tier 1 had 176 people on opening night—people who might have refused a program with upfront requirements.
Case management (Tier 2) drives transition: Research consistently shows that ongoing case management—not just housing—is what helps people address the barriers keeping them homeless or in active addiction. The "courage" to engage with services is where real change begins.
Work and contribution (Tier 3) build self-efficacy: Programs requiring work participation and financial contribution (like Aurora's 30% income requirement) show higher rates of transition to permanent housing. Contributing creates ownership and builds confidence.
Aurora Mayor Mike Coffman spent a week living undercover as "Homeless Mike" to understand why people stay on the streets. His conclusion: Neither Housing First nor Work First alone works for everyone.
Housing First—providing permanent housing with no requirements—has dominated federal policy for years. The theory: stable housing makes recovery possible.
The results speak for themselves:
Housing First works for some, particularly those with severe mental illness who are stable in sobriety. But for active addiction, removing all accountability often enables continued substance use.
Work First—requiring employment and sobriety upfront—works great for people ready to change. But it screens out the very people who need help most: those in active addiction, those with untreated mental health issues, those without recent work history.
Work First gets great outcomes for a small group while leaving everyone else on the streets.
The tiered model says: "We'll meet you where you are, but we won't leave you there."
It's the Goldilocks approach—not too restrictive, not too permissive, just right.
You don't need a $40 million facility to adopt tiered progression principles. Here's how to adapt this model to your operation:
Create progression within your existing structure:
Key implementation tips:
Create distinct houses for different tiers:
Key implementation tips:
Build comprehensive tier infrastructure:
Key implementation tips:
The difference between a tiered model that succeeds and one that fails is measurement. Here's what to track:
Tier 1 → Tier 2 conversion rate
Tier 2 → Tier 3 advancement rate
Time to advancement
Tier 3 completion rate
Overall program completion
Post-program stability
Length of stay by tier
Occupancy by tier
Regression rates
Revenue by tier
Cost per progression
Managing a tiered progression model manually is nearly impossible at scale. You need systems that support:
1. Tier assignment and tracking
2. Goal tracking by tier
3. Financial tracking by tier
4. Outcomes tracking
5. Compliance documentation
You might think you can track tiered progression in Excel. You can't—not effectively. Here's why:
Aurora's operator, Advance Pathways, will need sophisticated systems to manage 600 residents across three tiers plus extensive on-site services. So will you as you scale.
Aurora isn't alone. This shift is happening everywhere:
The era of "provide housing and hope for the best" is ending. The new paradigm is "provide housing with a path to independence and measure whether people achieve it."
If you're operating recovery housing, you're either adapting to this shift or getting left behind.
1. Assess your current structure
2. Review your outcome data
3. Study successful models
1. Design your tier structure
2. Upgrade your technology
3. Train your staff
1. Pilot the model
2. Market the progression
3. Measure and iterate
Aurora's $40 million experiment isn't really experimental. Cities across America are discovering what recovery housing operators have known for years: structure works, progression motivates, and accountability creates lasting change.
The tiered progression model works because it's realistic about human behavior. Most people need immediate help with no strings attached. Many people respond to incentives and visible progress. Some people need firm requirements to break through denial. A tiered model serves all three groups in the same program.
More importantly, this model aligns with where funding is going. HUD wants to see measurable progress toward self-sufficiency. States are demanding outcomes data. Donors want to know their money creates independence, not dependency.
If you operate recovery housing and aren't thinking in tiers, start now. Create progression pathways. Track advancement metrics. Celebrate when residents move up. Measure independence, not just occupancy.
The future of recovery housing doesn't look like permanent supportive housing with optional services. It looks like Aurora's campus: immediate access for everyone, increasing structure for those who engage, and real independence for those who commit.
Your residents deserve a path forward, not just a bed. Give them one.
✓ The tiered progression model creates levels of housing with increasing independence
✓ Aurora's campus demonstrates this with 3 tiers: Compassion (low-barrier), Courage (case management), Commitment (employment)
✓ Research shows structured progression improves outcomes across substance use, employment, housing stability, and recidivism
✓ You can implement tiered progression at any scale by creating clear criteria and tracking advancement
✓ Federal and state funding is shifting toward programs that measure independence, not just occupancy
✓ Track tier-specific metrics: advancement rates, time to progression, completion rates, and post-program stability
✓ Essential technology: tier assignment tracking, goal management, financial tracking by tier, outcomes reporting
Ready to implement tiered progression tracking in your recovery housing program? Sobriety Hub provides the data management tools you need to track resident advancement, measure outcomes, and demonstrate impact to funders. Schedule a demo at sobrietyhub.com.