Gallup domestic-violence nonprofit seeks shelter after county takes title to renovated building

A nonprofit that provides domestic-violence services in Gallup told the New Mexico Legislative Health & Human Services Committee on Aug. 20 that it has been unable to occupy a renovated building after transferring title to the county as part of a capital-outlay arrangement.

The nonprofit representative, Emily, told the committee she and her staff have been operating out of hotels since the state ordered the shelter closed and that the group received a $1 million community-project grant from U.S. Rep. Ben Ray Luján to buy and renovate a downtown building. "We're in conversation with the city of Gallup to purchase a building in the downtown area to renovate that and turn that potentially into a transitional housing building or into a shelter," Emily said. She added that the group had received 30 referrals between March and July and lacked space to serve them.

Lawmakers pressed for details about funding, landlord relationships and whether the county could return title so the nonprofit could operate without paying high rent. Representative Block called the county's apparent decision to present a lease after a management agreement "a circular firing squad situation" and asked whether legislators should withhold future capital outlay requests to pressure the county to resolve the issue.

Why it matters: Committee members said the dispute blocks a locally based provider from operating a shelter and receiving federal grant matches that require in-kind county support. The disagreement also illustrates limits in how capital-outlay and anti-donation rules interact with nonprofit service delivery in rural communities.

What the committee heard - Emily said the nonprofit once operated a two-story, eight-room shelter before the governor's office and the Children, Youth & Families Department (CYFD) required it to close for safety and ventilation problems. The nonprofit moved clients to hotels, which Emily said created security concerns and ongoing costs. - The nonprofit said it obtained a $1 million federal community-project fund and that conversations are underway with the city about purchasing a downtown property for transitional housing. Emily said the shelter model is currently less likely than creating transitional housing near health services. - Emily described a management agreement the nonprofit said existed before they transferred title to the county. After renovations were completed with capital funds, the county presented a lease that the nonprofit declined to sign; the county then asserted the nonprofit was in violation of the prior management agreement for not occupying the building. - Emily said county correspondence set a proposed rent of roughly $10,000 per month for a 1,600-square-foot space. Committee members and Emily discussed common practices elsewhere—using in-kind rent as a local match for federal grants or returning title to nonprofits—but Emily said she worried about legal limits on using federal funds to buy property renovated with state funds. - Emily said VOCA (Victims of Crime Act) rules limit access to confidential client information by governmental entities, which is why the nonprofit argued a county-owned shelter could hinder compliance with confidentiality rules.

Requests and next steps - Committee members discussed drafting a letter to the county to request clarification and a remedy; the chair said staff (Zander) would work with Senator Pinto and Representative Johnson to prepare language. Because the interim committee did not yet have a quorum, the letter would be finalized once a quorum could approve it. - Senator Pinto and others urged the Legislative Finance Committee (LFC) to review whether the county’s actions were consistent with statutes and capital-outlay practice; the committee recommended LFC examine physical-agent delays that prevent timely drawdown of earmarked funds. - The nonprofit said it has legal counsel and that the attorney has been in contact with the county attorney; those communications were described but not entered into the record.

Financial and program details (as reported to the committee) - Federal/community grant: $1,000,000 community-project fund attributed to Rep. Luján. - County renovation spending: the nonprofit said the county had spent about $3,800,000 renovating a property at 103 W. Aztec (reported by the nonprofit during Q&A); the nonprofit said the county reported that it had expended most capital-outlay funds rather than reverting them. - Prior in-kind support: Emily said an earlier arrangement recorded an in-kind county donation valued at $26,000 per year that had been used as match for federal grants. - Rent/lease: County proposed rent cited in committee discussion: $10,000/month for a 1,600-square-foot building (nonprofit said it did not sign the lease).

Limitations and open questions - The committee did not receive copies of the management agreement, the county lease, or written correspondence; members asked the nonprofit and staff to provide documentation to the committee and to LFC for review. - The exact legal basis for the county's change in approach and whether that approach violates any anti-donation rules or capital-outlay restrictions was not resolved during the hearing.

Quote "After the renovation, we were presented with a lease agreement that substantially changed the terms of that management agreement which we didn't agree to," Emily told the committee when describing the county correspondence.

Ending Committee members said they would follow up with LFC staff and work with Senator Pinto and local legislators to draft a formal request to the county seeking a resolution. The nonprofit asked to be included in planning for statewide behavioral health and shelter funding decisions; committee members said they would try to expedite information and provide support where possible.