Committee approves $1.64 million state agreement for shelter operations and outreach

The City of Santa Fe Finance Committee voted to approve an intergovernmental agreement (IGA No. 26-631-1111-00008) with the New Mexico Department of Workforce Solutions for $1,642,023 to support shelter operations, street outreach, site improvements and neighborhood cleanliness activities related to the city's homelessness response.

Community Health and Safety Director Hammond Paul, joining by Zoom, said the funding will reimburse some city spending and support plans to relocate a shelter and issue a competitive request for proposals for a new operator. "This finds the shoe on the other foot, so to speak, where we are now gonna be getting $1,600,000 from the Department of Workforce Solutions to support a handful of initiatives," Hammond Paul said.

Paul tied the funding to recent operational changes: the city entered an emergency contract with Urban Alchemy for a one-year period and a new operator took possession of the shelter building on July 31; Paul said calls for service have fallen since that change. The IGA includes clauses requiring the city to develop a plan to vacate the existing premises and to relocate shelter services to a more suitable facility; staff said the city intends to repurpose the current site for another community-serving use after relocation.

Committee members described the award as an important validation of recent strategy. The motion to approve the IGA carried on a roll-call vote with Councilor Cassatt, Councilor Lindell, Councilor Faulkner, Councilor Lee Garcia and Chair Meriworth voting yes.

Staff said the grant aligns with earlier governing-body discussion in a special session on June 3, 2025, and that the agreement will help replenish city funds already committed to homelessness response work and to prepare for a competitive procurement for a longer-term operator.