Damon House, Inc was founded in 1969 as a nonprofit social service organization and was incorporated in 1971, in Paterson, New Jersey. Originally, it was licensed under the New Jersey Department of Health, however as the Division of Addiction Services was transferred to the Department of Human Services, so was the agency.

In 1974, prompted by a concern from the mayor, Damon House relocated its primary location to New Brunswick, New Jersey. For several years both locations provided both inpatient and outpatient services for clients. However, by the 1980s the New Brunswick facility served exclusively inpatients while the Paterson residential facility was phased out. Although Paterson no longer served inpatients, the Outpatient Program continued to operate in Paterson and was expanded to include an Intensive Outpatient Program that currently accepts clients referred from Drug Court.

The current program, located in New Brunswick, is housed in an old Armory. The building is owned by the city of New Brunswick and is leased to Damon House for $1.00 a year for fifty (50) years, with the stipulation that the agency be the long-term operators, and are responsible for all of the necessary repairs, renovations, compliance with building codes, etc. When Damon House moved into the old Armory building, it required substantial renovations to accommodate the needs of clients at the time. In addition to the initial renovations, the Damon House has also maintained and upgraded the physical plant for safety and building code requirements. As a result, the agency developed a cooperative and long-lasting partnership with the New Jersey Department of Health and the City of New Brunswick. It has been this partnership that has allowed the agency to continue to give back to the community through its efforts.