Denver officials say the large drop in the number of chronically homeless on the streets is saving the city enough money to fund new housing for those who remain homeless.

On Monday, the Denver City Council will consider a $20 million proposal to build 200 housing units for the chronically homeless. To pay off the loan used to finance the new housing, Denver says it will use money saved from a reduced caseload at the city detox center and from other services heavily used by the homeless.

"It's now time to take those cost savings and invest them in housing," said Roxane White, manager of the Denver Department of Human Services. However, the plan will face opposition from at least one council member.

Originally, Denver officials planned to make the homeless-housing plan part of the $550 million bond issue voters are expected to consider in November. However, White said they realized they were saving enough money by bringing people off the street to fund the annual payment necessary to build the 200 units.

Annual surveys of the homeless population in Denver show that chronic homelessness has declined by 36 percent in the past two years. The chronically homeless, many of whom struggle with substance abuse or mental illness, are most likely to be camped out on downtown streets.

White said the chronic alcoholics that were placed in housing and treatment programs by the city had seen a typical drop of nearly 80 percent in their trips to the detox center, known as Denver Cares. Many of them once spent up to 100 nights a year in detox, costing the city thousands of dollars per person annually.

"We can get the money to pay for this just from savings at human services and Denver Cares," said White, who said there also were savings at the jail, homeless shelters and other facilities.

Under the plan, Denver would issue $20 million in so-called certificates of participation. Under state law, local governments can issue such debt without asking voters for permission. The city would have to pay $1.8 million per year to pay off the debt. The buildings constructed with the funding would be used as collateral.

"This works like a lease or mortgage payment on a specific location," said White, who added that the certificates imposed no obligation on city taxpayers the way bond debt does.

But not everyone thinks the proposal is a good idea.

"I don't believe it is government's responsibility to build housing for the homeless," said Denver City Councilwoman Jeanne Faatz. "I don't like to see government be the first line of defense to house people."

Faatz is critical of the "housing first" philosophy Denver officials have embraced to end homelessness. Under that plan, the chronically homeless are immediately placed in housing and then steered into treatment programs.

"I'm not a fan of housing first, where government provides an apartment at taxpayer expense," Faatz said.

But White said that program is the key to Denver's success at ending homelessness. The city's goal is to have 75 percent of the chronically homeless housed within three years.

"We need to invest in housing so we can get those people off the street," White said.

If the council approves the project, then Denver will move quickly to begin planning the housing. White said the 200 units would be scattered around the city in at least three locations.

"We'll have community meetings and make sure they're well-managed projects," said White, adding that the city would contract with local nonprofits to manage the facilities.