Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Homeless Services topic
No spam. Unsubscribe anytime.
Council delays action on Keys for Change contract amid financial and oversight concerns
Summary
City Council continued action on a contract amendment with Keys for Change after members raised concerns about vendor nonpayment, an alleged multi‑million dollar deficit and planned bed closures at the campus.
The Phoenix City Council on June 13 continued consideration of Item 76, an authorization to amend the contract with Human Services Campus, Inc., doing business as Keys for Change. Vice Mayor O’Brien moved to continue the item to the July 2, 2025 meeting; the motion passed unanimously.
Councilmembers described recurring concerns about Keys for Change’s financial management and operating stability. Vice Mayor O’Brien and others said staff had reported an operating deficit and that the city had been told of a roughly $5 million overall deficit. City staff and the vice mayor said there were episodes in which security vendors were not paid and walked off the job, requiring interim security arrangements. Councilmembers also cited reports that Keys for Change had closed beds (including 110 beds closed in June with another 170 anticipated in the fall, per staff comment) and emphasized the need for council oversight because the city is a major funder of services at the campus.
City staff said they had met multiple times with Keys for Change leadership but had not reached agreement on the city’s request for board representation (voting or non‑voting) to provide greater transparency and operational input; Keys for Change leadership reportedly called a funder seat a bad practice. The vice mayor and several councilmembers said that a non‑voting council seat on the Keys for Change board would be appropriate, consistent with the city’s practice on other partner boards (for example, CAST and Arizona Science Center).
Councilmember Hutch‑Washington said city funding is a significant portion of the campus operations and requested more insight into bed closures and finances. Staff reported the beds that had already closed were related to weather‑relief partners and that bed continuation would require continued funding from the city or another provider.
Outcome and next steps: The council unanimously continued the item to the July 2 meeting to allow additional information gathering and further discussion with Keys for Change leadership about board access, financial transparency and continuity of services. Council direction emphasized protecting shelter capacity while securing stronger financial oversight of key providers that depend on city funding.
