Very good question. In India we have a system by name "Probation System" - I am sure something similar should be in US also.
This is a govt dept and there is an assigned officer with the designation of "Probation Officer". The main job of this officer is to counsel/guide/mentor/rehabilitate first time offenders, juvenile offenders, petty crime offenders, non-habitual offenders etc. Convicts coming under probationary system are not incarcerated, rather they are supposed to meet the Probation officer every week or fortnight or month and report to him.
Convicts who can qualify for the Probation system are recommended by the concerned police officials, the Probation officer does a field inquiry about the convict and recommends to the judicial bench. In most of the cases the judicial magistrate takes the recommendation of the Probation officer and sets the convict free, albeit under the supervision of probation officer.
In 90% of cases, convicts who come under the probation system, reform themselves and mix into the mainstream. If any subsequent offense is done by the convict again he goes out of the Probation system and has to face the rule of the law.
If the police-probation officer-judicial magistrate is a good team, it helps lot of convicts to reform and join the mainstream.
I am sure something similar should be in place to give a chance to non-habitual offenders.