A pilot project aimed at getting housing for the homeless is facing funding cuts that is seeing participants end up back on the streets.

Chez Soi is a national, federally-funded research program, where specialized teams have helped the homeless find housing and tackle mental health issues as well.

“(They’re) housed in an apartment of their choice with a rent subsidy, so they can actually afford a decent apartment,” explained Dr. Eric Latimer, the lead researcher at Chez Soi.

It’s all part of what’s called a “housing first” strategy where homeless people are given their own place to live, and are offered health and social services.

“Sometimes it's physical health issues, other times they'll help with family reunification. We had one participant who was able to reconnect with his children,” said Latimer.

The Mental Health Commission of Canada has been running the program in five Canadian cities, including a successful operation in Montreal.

Funding for Montreal's $18.4-million program expired March 31.

So far, Quebec has no plans to offer provincial funding to continue the program on a permanent basis.

Discussions are, however, ongoing to finalize an agreement so federal funding can continue to cover housing costs for a one-year transition period, said Quebec's ministry of social services.

Despite that, some of the participants have already left their apartments and have returned to a state of homelessness.

The news is not going over well, especially for participants with more serious mental health issues.

"Anxiety is rising,” said Diogene & Chez Soi coordinator Jessica Soto. “Some are discouraged, depressed, drinking again, even going back to the streets.”

The Quebec government says program participants won't be left out in the cold; they'll be guided to other resources.

Still, after making so much progress, members of the Chez Soi team said they are now deeply disappointed.

“To see this being dismantled is very hard on a lot of them,” said Latimer.

Overall, the Chez Soi program has been a success, he said.

“Socially they improve very much and if you talk to the clinicians, they're very amazed actually at how much they've been able to help a number of individuals,” he said.

One such individual is a man named Rick, who CTV met last year. He described how happy was to finally having a place to call his own after about three years on the streets.

“That was a fantastic day because when they brought me here,” he said at that time. “Having a furnished apartment, a place I could put my head down.”