Council defers votes on Gateway shelter operating contracts as staff, lawmakers seek state funding

The Albuquerque City Council voted this week to defer two contracts that would add operating funds for Gateway housing navigation centers while the administration continues negotiating state funding.

Councilors voted to defer EC-426, a request to add funds to a professional services agreement with Chicanos Por La Cosa to expand Gateway women’s housing navigation services, until the next council meeting. The motion for deferral passed by a 6-3 vote. A related request, EC-427, asking to add funds to a Community Bridges agreement to expand men’s navigation services, was deferred for two weeks on a 7-2 vote.

The items grew contentious in committee and during public comment. Several business owners and residents described unsanitary conditions near a downtown property and urged faster openings for Gateway beds; others questioned program costs and whether the City is using state capital dollars for operations.

Public commenter James Freeman raised cost concerns and compared program costs to vouchers: “This is a 100 beds for $3,600,000 — $36,000 a bed,” he told the council, adding that housing vouchers the city funds cost far less. Other speakers urged speed and transparency in opening beds for shelter and navigation services.

Administration staff said the contracts are for operations only and that capital and facility readiness differ by site. Officials told councilors that some buildings have certificate of occupancy and that beds and basic capital preparations are in place, but state operational funding remains a pending condition. The CAO said the administration is actively discussing funding with the governor’s office and other state partners and that it will not execute operating contracts without appropriated funds. “We would not enter into a contract without the funds appropriated,” the CAO said in discussion.

Councilors pressed for clearer accounting and program budgets. Several called for a written breakdown of operating costs by contract and asked how the city would sustain operations if promised state funds did not arrive. Administration counsel and contract staff said the proposed agreements include appropriation clauses and that the city would return with solutions if funding is not available.

Councilor Justin Rogers and others urged the administration to use a single, transparent list for all housing dollars — including the larger HB2 allocation the city expects — so Council can track priorities and the spending plan. Rogers also asked the administration to present operating budgets for each Gateway contract, distinguishing tenant costs, program staffing and overall facility operating costs.

The administration agreed to provide more detailed budgets and to continue state discussions; councilors postponed votes to allow review. Staff said their goal is to position contracts so the city can sign quickly if and when funding is confirmed.

Key clarifying details discussed at the meeting included: - The requests include expansion to reach an additional roughly 92–100 navigation beds across men’s and women’s sites if funding arrives. - The administration is seeking state operational funding and said it is “hopeful” funding will be confirmed soon but gave no firm date. - Council and public commenters compared program operating cost per bed to the city’s housing voucher program; commenters argued vouchers may be more cost‑efficient in some cases.

Councilors voted to defer both items to give time for the administration to supply requested budget detail and to wait on state funding decisions.