Santa Fe council approves $2 million to buy microcommunity units amid heated public debate

The City of Santa Fe on Jan. 29 approved a $2,000,000 budget amendment to purchase microcommunity (“pallet”) shelter units and related site planning work, a step city staff said is intended to expand non‑congregate housing options while staff pursue operators and community‑based sites.

The action (agenda item 11b) reallocated funds that had previously been set aside for acquiring buildings and directed them toward mobile or modular non‑congregate shelter solutions, the city’s Community Health and Safety director, Henry Hammond Paul, told the governing body. The council approved the move by roll call; the vote on the budget amendment was recorded as unanimous.

Hammond Paul said the city has used a pilot model at Christ Lutheran Church since April 2024 and described microcommunities as temporary, staffed units with wraparound services and 24‑hour supervision. He said the current objective is to secure operators and, where appropriate, land — either privately offered sites from faith‑based or nonprofit partners or, potentially, city‑owned parcels — and to engage neighborhoods before a site is finalized.

Public comment at the governing‑body meeting was lengthy and divided. Supporters who described personal experience of homelessness or work with shelter programs urged the city to buy units now to take advantage of current pricing and to provide safer alternatives to unsheltered living. A number of speakers described the pilot at Christ Lutheran Church as well‑run, supervised, and effective at connecting people to treatment and housing.

Opponents and concerned residents objected to specific potential siting locations and warned that placing large microcommunities in residential neighborhoods would bring crime, drug use and public‑safety risks without guaranteeing long‑term solutions. Several speakers said sites proposed in the city feasibility study were clustered on the city’s south side and asked for more equitable geographic distribution and earlier neighborhood consultation.

City staff outlined the pieces that must come together before installation: a willing site owner or a negotiated use of city property, a vetted operator under contract, a site‑specific community engagement process and a good‑neighbor agreement that defines communications, maintenance and security. Hammond Paul said the city’s RFQs and RFPs are seeking land partners and experienced providers; he said neither a specific site nor an operator has been selected for the new allocation.

Council members pressed for transparency and for a stronger public process. Several councilors said they support purchasing units now to preserve pricing and allow ready deployment once operator and community agreements are in place, but asked staff to move deliberately on siting and to guarantee community engagement and oversight.

After the vote to allocate $2 million for the initiative, Councilor Michael Garcia explained his vote as a yes and urged staff to pursue district‑by‑district engagement so residents across the city know the plan and can help find acceptable host sites. City staff said they will continue to seek state and philanthropic funds to support operations, sanitation, security and case management services that accompany the units.

The council vote followed more than an hour of public comment that included residents near proposed sites, shelter volunteers, operators and people with lived experience of homelessness. The discussion reflected broader tensions across many U.S. cities: how to move from short‑term shelter models to long‑term housing while balancing neighborhood concerns about safety and quality of life.

The vote on the BAR (agenda item 11b) passed by roll call and was recorded as: Councilors Chavez, Faulkner, Lee Garcia, Lindell, Cassett, Castro, Romero Wirth, Michael Garcia and Mayor Weber — all voting yes. Staff said the funds were previously allocated and would be reappropriated toward site planning, purchase or development for non‑congregate shelter solutions.