In 1999, a study was released by the Division of Criminal Justice Services which found that more than 50% of young people were rearrested within six months of release from any type of state placement, and up to 81% of young men were re-arrested within thirty-six months of release.

Each year between 1200 and 1500 youth from New York City are placed outside of their homes on delinquency cases. The City is responsible for half of the costs of placement, totaling tens of millions of dollars a year.

In 2002, the City decided to partner with the Vera Institute of Justice to focus on the safe and productive use of sentencing options other than placement, and Esperanza was created.  In 2006 Esperanza was incorporated as an independent not-for-profit organization to carry forward our work.