The City Council approved an intergovernmental agreement (IGA) with the New Mexico Department of Workforce Solutions on Sept. 24 for $1,642,023 to support the city’s homelessness response. Community Health and Safety Director Henry Hammond‑Paul told the council the funding replenishes the city’s resources to maintain shelter services at 2801 Cerrillos Road for up to a year and to undertake immediate repairs, outreach and planning for a permanent relocation.

Hammond‑Paul said the site has “served an incredible need” but the facility is “not fit for purpose” and requires substantial repairs and longer‑term planning. Staff described a proposed breakdown in the IGA: roughly $120,000 for immediate life‑safety and building repairs (roof, windows, fencing and ADA work), about $1,080,000 to support operations (including an emergency one‑year contract to the current operator) and the remainder for outreach, cleanliness and transition planning.

Director Hammond‑Paul and the city manager said the money will allow the city to sustain services while staff develops a plan to move operations, with two near‑term planning milestones described to the council: a broad outline of alternatives due Oct. 31 and a more defined relocation plan in progress by March 31, 2026. City staff said any move will be phased to avoid service gaps; they expect to issue a competitive solicitation for a shelter operator when the longer‑term plan is ready.

Councilors asked about the state’s role and the Department of Workforce Solutions’ transfer of homelessness funds after a prior bill to create a state housing office failed. Hammond‑Paul said the state was receptive to the city’s proposal and that funding must be expended within the grant timeline. On roll call the council approved the IGA and an associated budget amendment to appropriate the grant funds into the FY26 budget.

Councilors and staff emphasized this is a complex, regional challenge that will require partnerships across local government, state agencies, community providers and the private sector to identify new shelter sites and increase non‑congregate housing options.