Denver Auditor Tim O’Brien released a scathing report Thursday on how the city of Denver is managing its homeless shelter program.
The office blasted the Department of Housing Stability, or HOST, for how poor management has led to security concerns, mismanaged spending and violations of discrimination clauses in contracts between faith-based organizations and the city.
“Housing Stability’s poor organization is negatively affecting operations at Denver’s shelters,” O’Brien said in a statement. “These issues need to be addressed because vulnerable populations are at risk.”
The city audit found that HOST failed to meet security requirements, didn't adequately track expenses and more
The auditor found people died at one shelter that had failed to meet its security-related contract requirements. Other shelters lacked sufficient antidiscrimination policies. And guests may lack clear ways of filing complaints with shelters.
“Following tragic events at the DoubleTree sheltering site … HOST and multiple agencies immediately instituted a seven-point action plan to improve management, staffing, physical enhancements, badging system, security, police presence and case management,” HOST spokesperson Derek Woodbury wrote in response.
A man and woman were killed at the DoubleTree earlier this year.
The audit also alleges that HOST has inadequately tracked shelter-related expenses, and the policies that do exist are not adequately enforced. The department’s cost-reimbursement policy also fails to follow contract requirements and city rules.
O’Brien also accused HOST of not properly restricting access to sensitive information on shared data drives. As a result, city workers who aren’t part of HOST have had access to shelter guests’ information.
The city contracts with various organizations to manage its shelters and requires them to sign an anti-discrimination statement. One of those, Salvation Army, is a faith-based nonprofit with a handbook stating it follows nondiscrimination laws — unless they violate the agency’s religious practice, according to the auditor.
But that policy clashes with the requirements of the nonprofit’s contract with the city.
“To say that we are going to follow the law, except for when it's different from our religious practices, is unacceptable,” Auditor O’Brien said. “An agency’s handbook does not supersede the terms of an agreed-upon contract.”
The auditor made a string of recommendations.
HOST agreed to implement all but one of those solutions — and in many cases has already been working on fixes for months. HOST plans to make those changes by June 30, and some sooner.
The changes include assessing security at shelters, creating guidelines for handling sensitive information and recruiting staff to fill vacancies.
“By implementing recommendations for stronger and clearer policies and procedures over monitoring and enforcing security measures, grievance processes, and spending and invoicing processes with shelter providers, the Department of Housing Stability will be better able to monitor shelter providers to keep shelter guests safe and enforce contract rules for spending of city funds,” O’Brien wrote.
HOST responded with frustration that the audit didn't include what it called successes
O’Brien asked HOST to end its new cost-reimbursement policy he says violates city rules. HOST declined.
“I am disappointed the Department of Housing Stability chose to disagree with one recommendation that would clearly ensure the department continues to receive and maintain the supporting documentation necessary to monitor shelter provider spending,” O’Brien wrote.
HOST expressed frustration that the audit largely focused on what wasn’t working.
The agency pointed to closing more than 350 encampments, sheltering 2,150 Denverites from the streets and connecting more than 800 people to permanent housing as evidence of its success.
“The audit failed to acknowledge the substantial progress in reducing unsheltered homelessness while simultaneously improving our systems,” Woodbury wrote in a statement.
