Denver paid nearly $150 million between January 2022 and March 2024 for non-migrant shelter-related expenses that a city department has not been tracking, a recent audit report found.
Denver’s Department of Housing Stability has been unable to provide a comprehensive breakdown of an estimated $149.6 million in taxpayer funds spent in the two-year time frame, according to a 51-page audit published Thursday by the Denver Auditor’s Office.
“Although we asked Housing Stability multiple times for documentation identifying all shelter-related expenses from Jan. 1, 2022, through March 31, 2024, the department was unable to provide this information,” the report states.
The expenses were paid through 1,599 invoices. Of the 40 invoices that Denver auditor Timothy O’Brien reviewed, 55 percent were submitted late for expenses and 30 percent were submitted past the deadline for reimbursement requests.
“Housing Stability’s poor organization is negatively affecting operations at Denver’s shelters,” O’Brien said in a statement, according to local news outlets. “These issues need to be addressed because vulnerable populations are at risk.”
Before entering the Colorado capital’s highest office, Denver mayor Mike Johnston campaigned on ending the Democratic stronghold’s homelessness crisis. Part of his vision was to invest millions of dollars in an initiative designed to shelter people living on city streets. However, the program has cost more than expected.
In June, the Denver City Council learned that Johnston was on track to spend $155 million between July 2023 and December 2024 — over $65 million more than what the mayor initially projected. Johnston assumed office in July last year.
The mayor’s office pushed back on the audit’s findings, highlighting the report’s reliance on older data.
“The Auditor’s report on Denver’s shelter system references data and information from more than eight months ago and is not an accurate representation of the current state of our shelter system,” said Johnston spokeswoman Jordan Fuja. “We continue to constantly improve our programs, which is why, although we acknowledge the auditor’s findings, it’s important to note that HOST and the city have long been working to improve the system throughout 2024.”
In addition to untracked spending, the audit found significant security gaps at homeless shelters. For example, three shootings occurred in March at one particular shelter run by the Salvation Army, which failed to install security cameras or hire guards. The shootings resulted in two deaths.
The report also raised concerns about grievance and non-discrimination policies. Six of eight shelter providers that the auditor’s office reviewed lacked sufficient grievance processes, by which residents can file complaints. Instead, most of the shelter providers only have grievance policies that apply to employees. Furthermore, many did not include all protected classes in their non-discrimination policies.
The audit also found problems regarding the protection of sensitive information, namely a shared drive containing confidential details about shelter residents that city employees from other departments could access at will.
To mitigate these issues, the audit urged Housing Stability to develop security assessments and monitoring protocols, improve spending and invoice processes, and mandate non-discrimination and grievance policies for all shelters.
Agreeing with many of the audit’s findings, Housing Stability said it has already been implementing some of the recommendations before the report was published. The department also said the audit did not “acknowledge the substantial progress” it has made in curbing unsheltered homelessness while improving its systems.
“I think they’re in the process of doing this because we made the recommendations, which is positive,” O’Brien said.
Despite Johnston’s best efforts to reduce homelessness, Denver’s homeless population hit a record high of 9,977 people this year — a 10 percent increase from 2023. Meanwhile, the number of families experiencing sheltered or unsheltered homelessness increased by 1,000 from 2023.