Audit Reveals $150 Million Shelter Investment Plagued by Safety Risks, Discrimination, and Mismanagement
A recent Denver Auditor’s Office audit found that Denver’s shelters do not adequately ensure guests’ safety and routinely ignore nondiscrimination rules in their contracts despite receiving about $150 million from the city over the last four years.
The audit’s findings push back against the popular narrative that many homeless people in Denver and across the country are unwilling to accept services or help. Instead, findings show that many shelters lack the critical infrastructure to ensure their guests are safe during their stay, which is one of the main reasons why homeless people avoid shelters to begin with.
“[The Department of] Housing Stability’s poor organization is negatively affecting operations at Denver’s shelters,” Denver auditor Timothy O’Brien said in a press release. “These issues need to be addressed because vulnerable populations are at risk.”
Balancing Homelessness and Migration in Denver’s Shelter System
Denver has invested heavily in its shelter system since 2022. Over that time, the city launched initiatives like All In Mile High and House1000, both of which are rapid rehousing efforts that seek to provide temporary housing to about 3,000 people per year. It has also contributed about $9 million toward building tiny home villages for homeless folks.
Meanwhile, Denver has struggled to balance responding to a growing homeless population and providing services to more than 40,000 migrants from South America who have arrived since the beginning of 2023. Since 2022, the number of homeless people has grown by 36%, from 4,794 to more than 6,539 people in 2024.
The combination of increasing homelessness and migration were two issues O’Brien found to have impacted the city’s shelter system. Denver created multiple temporary shelters for the migrants, managed by the Department of Housing Stability, the agency responsible for overseeing Denver’s temporary housing and shelter system.
However, the audit found that the increased number of shelters under HOST’s purview caused multiple issues regarding safety, nondiscrimination, and general management of the sites. For instance, one provider-run shelter waited four months to install a new security camera system and hired additional security guards. During that time, three guests were shot inside the shelter, two of whom later died because of their injuries.
These systemic challenges have compounded with safety and discrimination issues that further undermine the shelter system.
Discrimination in Denver Shelters
According to the audit, some shelters also failed to abide by nondiscrimination policies contained in their contracts with the city. The audit singled out shelters run by The Salvation Army, a Christian organization. It found that The Salvation Army’s employee handbook allowed shelter workers to ignore the nondiscrimination rules to conform to their religious beliefs. That means people who identify as transgender or LGBTQ+ were routinely turned away from the shelter.
“To say that we are going to follow the law, except for when it’s different from our religious practices, is unacceptable,” O’Brien said. “An agency’s handbook does not supersede the terms of an agreed-upon contract.”
Hilliard McAlpin, who was homeless in Denver for eight years, told Invisible People that he was routinely mistreated at shelters. McAlpin said he stayed at multiple shelters where employees were rude to guests. Others ignored the drug use and violence that took place inside, he said.
“Some of those shelters are not a safe place to be,” McAlpin said.
Findings indicate the safety and nondiscrimination issues did not prevent HOST from reimbursing the shelter providers’ expenses, including those submitted after invoicing deadlines. HOST was unable to provide supporting documentation for several submitted invoices and paid duplicate reimbursement expenses to some providers. Auditor O’Brien said these issues suggest there are deeper contract management issues within the city’s shelter system.
“Fiscal Accountability Rules are there to protect public resources,” O’Brien said. “Issuing reimbursements without evidence of expenses puts the city at risk of fraud, waste, and abuse. But Housing Stability has given no credible reason why it is disregarding these rules.”
Rethinking Housing Solutions
The pandemic proved that we need to rethink housing in the United States. It also showed that aid programs work when providing agencies and service organizations with sufficient funds and clear guidance on spending aid dollars. The audit highlights why systemic reform and lessons from pandemic-era housing solutions must guide future efforts.
Contact your officials and representatives. Tell them you support keeping many of the pandemic-related aid programs in place for future use. They have proven effective at keeping people housed, which is the first step to ending homelessness.
