Denver could have fewer shelter beds in 2026
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Like most Denver agencies, the Department of Housing Stability (HOST) will need to find a way to continue offering critical services with less money next year.
Yes, but: HOST has the added pressure of overseeing Mayor Mike Johnston's signature policy initiative, All In Mile High (AIMH), which moves people living on the streets indoors.
The latest: The agency this week presented a proposed $206 million budget for 2026 — a $24 million year-over-year cut — during hearings hosted by the Denver City Council.
Why it matters: Johnston vowed his sharp budget cuts wouldn't impact his homelessness goals. Now, HOST will test that pledge, as it will need to continue moving more unhoused people into permanent housing.
Threat level: HOST executive director Jamie Rife says a slimmed-down budget means less shelter beds. Fewer households could be served and fewer affordable housing units could be created and preserved next year, a slide deck presented by Rife showed.
- HOST deputy director Jeff Kositsky said four total shelters are set to close between this year and June 2026.
Between the lines: Kositsky says the agency will lose roughly $33 million next year, mostly due to one-time funding sources drying up (the overall $24 million budget decrease accounts for reductions and increases).
- For instance, Johnston says the city will lose about 300 housing vouchers due to state and federal funding cuts.
Context: While most city agencies spend heavily on staff salaries, HOST's budget covers contracts for homeless services and housing support, the slide deck showed.
What they're saying: "Mayor Johnston has full faith and confidence in the department's ability to continue delivering on its core mission," his spokesperson Jon Ewing tells us.
The intrigue: Rife says HOST will shift to performance contracting for its AIMH sites to improve housing placement.
- Providers will be paid for meeting metrics like shelter occupancy and case management meetings, shifting the focus to results rather than just compliance, HOST spokesperson Derek Woodbury tells us.
What's next: The agency could see an influx of unspent money from two funds that generate revenue from sales tax and fees, but that amount won't be known until the end of the year, per city finance department spokesperson Laura Swartz.