The organization began in 1969 in Ann Arbor in response to the growing number of runaway youth migrating to "hip" towns following the Summer of Love of 1967. During this time, Ann Arbor was among the top 20 cities in the U.S. with a high influx of runaways. Many came to experience the counter culture of the 70's but would later find themselves stranded. The University of Michigan, local businesses, organizations, and community residents united in support of Ozone House in order to handle the increasing number of street-dwelling and panhandling runaways. Among these organizations were the White and Black Panthers, the Rainbow People's Party, and the Liberal Quakers. From these groups, Ozone House adopted a collectivist system to make its organization decisions.