Denver's Largest Homeless Services Provider Faces $5 Million Funding Crisis as City Delays Contracts

A mounting crisis is unfolding in Denver's homeless services system as The Salvation Army - which serves up to 1,800 people daily including 300 children - continues operating without payment while awaiting millions in delayed city contract approvals.

The century-old charitable organization, a cornerstone of Denver's homeless response since 1887, is now tapping emergency reserves after fronting $5 million in services while city officials debate the future of multiple shelter contracts. The funding delays threaten vital services that thousands of Colorado families rely on during housing emergencies.

Critical Services at Risk

The Salvation Army currently operates several key facilities in the Denver metro area, including:

• Crossroads shelter for men
• Lambuth, Tamarac, Stone Creek and Aspen hotel shelters
• Family housing programs serving hundreds of children nightly

"The Salvation Army is doing some very heavy lifting for the city, and it's our pleasure to do so," said Jennifer Forker, Salvation Army spokesperson. "We shelter dozens of families, including about 300 children every single night. We're helping children to get vaccinated and to attend school."

City Council Divisions Emerge

The relationship between Denver officials and The Salvation Army has grown increasingly strained, with some council members expressing serious concerns. In April, the council rejected a $3 million contract that would have provided rapid rehousing for 50 homeless families.

Mayor Mike Johnston continues supporting 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."

Impact on Colorado Communities

The funding crisis comes as Denver grapples with rising homelessness rates affecting communities across the Front Range. According to city records, The Salvation Army has been instrumental in the mayor's "All In Mile High" initiative, which aims to end unsheltered homelessness in Denver within four years.

At one facility alone, staff reportedly saved 165 lives using CPR and overdose reversal drugs since December 2023, highlighting the critical nature of their services to Colorado's most vulnerable residents.

Looking Ahead

The city's housing department has recently submitted contracts worth $19 million for three shelter operations, but approval remains uncertain. Meanwhile, The Salvation Army's shelter contracts will undergo competitive bidding for 2026, potentially reshaping how Denver delivers homeless services.

For Colorado families facing housing instability, the uncertainty surrounding these vital services adds another layer of concern to an already challenging situation. The outcome of this funding crisis could have lasting implications for homeless services across the Front Range region.

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