Audit reveals failures in Denver mayor's homeless shelter program
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A sign at the main entrance of the Aspens — a homelessness shelter in Denver and the site of a double homicide in March — pictured in April 2024. Photo: Hyoung Chang/The Denver Post via Getty Images
Denver Mayor Mike Johnston's administration is struggling to keep homeless shelters safe and failing to track their spending, a city audit published Thursday found.
Why it matters: Tackling Denver's homelessness crisis is a top priority for Johnston. But the audit suggests his multimillion-dollar plan could be putting vulnerable people at risk and using more taxpayer money than previously known.
The big picture: The mayor's initiative to quickly house 1,000 unhoused people by the end of 2023 led to the rushed setup of eight new shelters, leaving an understaffed department overwhelmed and unable to effectively oversee security, according to the audit.
- The auditor's office surveyed department staff and found 15 of 20 respondents, or 75%, said citywide emergencies and mayoral initiatives impacted their ability to do their jobs.
What they found: The report revealed "weaknesses" in the Department of Housing Stability's shelter management process, spanning security and spending to enforcement of contract requirements and compliance with non-discrimination rules.
- The audit also found issues around protection of sensitive information. City employees from other departments had access to a shared drive with confidential details about people staying in the shelters, including their names, addresses, rental history and even bank accounts.
Follow the money: The city's housing department isn't tracking overall shelter-related expenses, according to the report.
- The auditor's office estimates the city spent nearly $150 million on non-migrant shelter-related expenses from January 2022 through March 2024.
Zoom in: A key finding from the report showed critical failures in security protocols that led to a double homicide at a shelter converted from a former DoubleTree hotel in March.
- The Salvation Army, contracted to run the shelter, failed to install required security measures such as cameras and guards — and the city didn't step in until after the shooting.
- Across all its shelters, the audit found that the city "lacks a formalized, strategic approach to ensuring timely security measures are in place."
What they're saying: "Housing Stability's poor organization is negatively affecting operations at Denver's shelters," Denver auditor Timothy O'Brien said in a statement. If it "doesn't know the scale of its expenses, it can't accurately determine whether these programs need more funding or not."
The other side: In a statement, Denver's housing department defended its progress in reducing unsheltered homelessness and argued that many of the auditor's recommended improvements, like enhanced safety and updated shelter contracts, were "already well underway."
- Johnston spokesperson Jordan Fuja referred Axios Denver to the housing department's statement.
Go deeper: Audit finds Denver isn't tracking homeless encampments costs