Denver's Homeless Services Face Crisis as City Delays $5M in Salvation Army Payments

A critical situation is unfolding in Denver's fight against homelessness as The Salvation Army, serving up to 1,800 people daily including 300 children, faces severe financial strain due to millions in delayed contract payments from the city. The mounting tension threatens vital services for vulnerable Colorado families and highlights growing concerns about the management of Denver's homeless response.

The century-old charitable organization, which has served Denver since 1887, is currently fronting $5 million in unpaid services while operating multiple shelters across the metro area. This financial burden comes as city officials delay contract approvals and some council members push to reduce reliance on the organization.

Impact on Denver's Homeless Response

The situation directly affects thousands of Colorado families seeking shelter services. According to Salvation Army spokesperson Jennifer Forker:

"The Salvation Army is doing some very heavy lifting for the city... We shelter dozens of families, including about 300 children every single night. We're helping children to get vaccinated and to attend school. We're helping their parents find housing and jobs."

Growing Concerns and Oversight

City officials and advocacy groups have raised several issues:

• Safety and maintenance concerns at multiple facilities
• Need for increased oversight and accountability
• Questions about facility management and security
• Delayed contract approvals affecting service delivery

Denver Mayor Mike Johnston has publicly supported the organization, stating:

"We are a better city today for the efforts of The Salvation Army. The Salvation Army performs a difficult job at an extremely high level."

"We are a better city today for the efforts of The Salvation Army. The Salvation Army performs a difficult job at an extremely high level."

Financial Impact and Future Uncertainty

The financial implications are significant for both Denver taxpayers and service delivery. Since 2020, the city has invested $155.7 million in contracts with The Salvation Army. Currently, the organization awaits approval for $19 million in additional funding to manage three shelters, nearly six months after work began.

Denver City Council President Amanda Sandoval expressed concern about the city's handling of contracts:

"We're bad business partners. To not pay someone for four months, you would go to collections in the real world."

"We're bad business partners. To not pay someone for four months, you would go to collections in the real world."

Looking Ahead

As Denver approaches 2026, officials are considering competitive bidding for shelter contracts, potentially reshaping how homeless services are delivered across the metro area. However, questions remain about whether other organizations have the capacity to manage such large-scale operations serving Colorado's homeless population.

For Colorado families and communities concerned about homelessness, the ongoing situation highlights the complex challenges facing both service providers and city officials in addressing one of the state's most pressing social issues.

This article contains AI-generated content and reflects opinion only. Readers are encouraged to verify all information independently before drawing conclusions or making decisions.