DENVER — During a committee meeting on Tuesday, leaders from Denver's Department of Housing Stability (HOST) said new performance-based contracts with homeless shelter operators will help keep their focus on individuals rather than finances.
The City of Denver said it plans to bring on three new service providers to take over operations at several city-owned homeless shelters starting next year.
Urban Alchemy, a nonprofit based in San Francisco, plans to run The Aspen Shelter, the former DoubleTree hotel on Quebec Street. St. Francis Center plans to operate the Stone Creek Shelter on Quebec Street, while Bayoud Enterprises was chosen as the future provider of the Tamarac Family Shelter on East Hampden Avenue.
The Salvation Army currently operates all three shelters, but announced in August that it will not renew the contracts with the city next year, citing increased operating costs.
City housing officials said the contracted providers will be paid based on their performance rather than receive reimbursements for expenses. During Tuesday's meeting, Jeff Kositsky, HOST deputy director of shelter and stability, said the switch will hold providers accountable and help them focus on outcomes.
Denver7 has covered issues at several city-owned shelters and micro-communities. In July, the Denver Fire Department said an 11-year-old girl fell six stories from the Tamarac Family Shelter. A police report for the incident said the girl's parents told officers they opened the window because of unbearable heat in the apartment.
Last year, two people were shot and killed at The Aspen shelter, and a third person was shot 11 days later. Denver7 also heard concerns from several people staying at the Stone Creek shelter on Quebec Street about no hot water, drug use, and bugs.
Denver7 spoke with Urban Alchemy, the California-based organization chosen to take over operations at The Aspen shelter on Quebec Street. The nonprofit hires formerly incarcerated and unhoused individuals to operate shelters across cities, including San Francisco, Oakland, Los Angeles, Culver City, Portland, Austin, Birmingham, and Santa Fe.
"We want to come here because we believe we're the experts," said Louie Hammonds, director of community-based public safety programs for Urban Alchemy. "We feel, who better to do the work? You know, those closest to the problem, closest to the solution, especially if, you know, if you've done a lot of work on yourself and you really have a passion to give back and want to make a change in your community."
Denver7 spoke with Hammonds about the safety concerns surrounding The Aspen shelter, including the multiple shootings in the past year. He said the nonprofit will focus on trauma-informed care to help individuals and welcomes the city's performance-based pay to hold them accountable.
"That's what we love about this type of contract, that it just is up front, show me what you're doing, and we're going to have to prove that," Hammonds said. "In this day and age, with budget cuts, with a strain on resources, you know, we welcome that."
Urban Alchemy has faced difficulties with finances, including allegations by the San Francisco Controller's Office of not properly tracking employee output and other claims of misrepresented data. Hammonds said the performance-based contract will push the organization to be transparent and upfront with its work.
The city said the existing service providers at the five other All in Mile High communities will continue operations. The Denver City Council will have to approve the new provider contracts before operations can be transferred.
