Office of Homeless Services seeks ongoing funds for new family shelter, outlines state homelessness trends

Wayne Niederhauser, director of the Office of Homeless Services, told the Comic and Community Development Appropriations Subcommittee that homelessness in Utah remains a significant, multifaceted challenge and asked for ongoing and one‑time funds to operate new and expanded shelter capacity.

Niederhauser highlighted both first‑time and persistent homelessness trends: he said “10,000 people experienced homelessness for the first time in Utah in 2023,” while point‑in‑time counts capture about 4,000 people on a single night. He described two broad groups: a large transitional population that typically stays in shelter for short periods and a smaller persistent population struggling with chronic issues (mental health, substance use, involvement with the justice system) that require supportive housing and treatment.

Nut graf: The office requested ongoing operating funds and one‑time appropriations to maintain and expand shelter capacity, stressing that housing availability — especially deeply affordable housing — is central to reducing homelessness.

Niederhauser requested $5,800,000 ongoing to operate a newly acquired and renovated family shelter in South Salt Lake that will provide private sleeping space for families (he said it will accommodate about 80 families and up to roughly 400 people). He described the ask as $3,800,000 from the general fund plus $6,000,000 in TANF spread across three years (noting that $2,000,000 per year from TANF would be applied). He also requested $11,000,000 one‑time from the general fund to continue winter and summer emergency shelter operations and said an additional $2,000,000 could come from an existing Pamela Atkinson Trust Fund source (created by liquor‑store roundup revenue) for a total of $13,000,000 in combined sources to maintain expanded winter bed capacity.

Niederhauser told committee members the state has funded deep‑affordability housing projects in recent years (he cited a prior $51,000,000 tranche that helped create 1,538 new deeply affordable units after earlier appropriations) but stressed the continuing deficit: he and the committee cited an estimated 77,000‑unit statewide shortfall in deeply affordable housing (30% AMI and below). He said that “80% of the people that go into shelter stay there less than 90 days,” and that connecting shelter with housing resources and treatment produces the best outcomes for people with persistent needs.

Committee members asked how the mitigation fund that supports city public‑safety costs related to homelessness is distributed; Niederhauser said formula language in statute drives distributions to affected municipalities. He also described accomplishments such as new microshelter and medically vulnerable shelter openings.

Ending: The office asked appropriators to consider ongoing operating support for the new family shelter and additional one‑time shelter operations funding in the current prioritization process.