Council committee approves $3.5 million for Strobel House operator after debate over contracting and oversight

The Metropolitan Nashville Public Health & Safety Committee on a voice vote approved RS2025-1436, a $3,500,000 appropriation to DePaul USA Inc. to provide property management, on-site support and case management services at Strobel House permanent supportive housing. The committee recommended approval 9 in favor, 0 against, 0 not voting.

The resolution drew extended questioning from council members about why DePaul had been paid after an earlier contract expired and why the Office of Homeless Services (OHS) relied on direct vouchers rather than purchase orders (POs). “This procurement process was not an ideal process,” Director April Calvin said, describing overlapping challenges including a newly formed office, multiple funding streams and staff turnover. Calvin told the committee the requested appropriation would cover DePaul through June 2026 and include retroactive coverage.

Council members and finance staff described a chain of circumstances that allowed payments to continue without a PO attached to a contract. Joseph Marsh of finance said departments previously used a direct-voucher method and that the department only learned about the need to attach POs retroactively about three months earlier. Mary Jo Wiggins of Metro Finance described system and policy limitations and outlined planned safeguards, including classifying some vendors as “PO-only” in the new Oracle Cloud system and expanded department training.

Members pressed for immediate accountability and for structural fixes. Council member Suwara (spelling as in the record) said the central concern was whether finance was catching departmental errors and how future oversight would be ensured. Council member Welsh highlighted safety risks at Strobel House, noting the contract lapse coincided with a reported stabbing and questioned the absence of security cameras.

Several corrective steps were described for OHS: hiring a contract administrator, placing staff in a Certified County Financial Officer (CCFO) training program, closer coordination with central finance on PO vs. direct-voucher processes, and regular meetings with finance staff. Calvin said Strobel House had housed roughly 100 people as of July 14 in a 90-bed unit and that some residents were in advanced medical stages when housed; she offered to provide a fuller report to council members.

A motion to defer the measure one meeting failed (2 in favor, 7 opposed) after members warned a deferral could disrupt monthly reimbursements to the vendor and interrupt services at Strobel House. Finance staff said reimbursements are processed monthly and that delaying the appropriation could delay the next monthly payment and risk service disruption. Chair Porterfield argued the committee should approve the contract to “shore the gap” so services and payments continue while procedural improvements are implemented.

The committee majority voted to approve the appropriation so DePaul can continue operating Strobel House while OHS and finance implement reforms. The discussion included requests for follow-up reporting on the hiring of the contract administrator, progress in CCFO training, and the status of system changes in Oracle Cloud to prevent similar direct-voucher/PO mismatches.

Because council debate focused on process improvements rather than changes to program scope, the resolution does not alter the stated scope of services in the DePaul contract as presented to the committee. The committee also asked for additional transparency about funding sources tied to Strobel House and for a report back on any required safety upgrades at the facility.