Anchorage administration seeks Assembly approval for two 100-bed shelter contracts and a funding reappropriation amid debate over locations and housing trade‑off

The Anchorage administration recommended that the Assembly approve two service contracts to operate year‑round, low‑barrier shelters and a reappropriation of previously approved housing funds to cover immediate shelter-related case management and guaranteed housing exits.

Thea Agnew Bevan, special assistant to the mayor, opened the presentation by reviewing local homelessness data and the administration’s approach. “We have just under 3,000 people experiencing homelessness,” Bevan said, and she summarized the municipality’s inventories and occupancy: an inventory of about 2,818 beds or units with roughly 92% occupancy on the night counted and a 2025 point‑in‑time count showing a 2% change from 2024. Bevan identified about 600 people counted as unsheltered and cautioned that that number is an approximation based on outreach reports.

Nut graf: The administration asked the Assembly to approve (1) a contract recommendation to have Henning Incorporated operate 100 year‑round beds at the East 56 (East 50 Sixth Avenue) location through Dec. 31 at a per‑person base rate the administration gave as $83.69 (the presentation said a factored per‑person rate that includes rent and utilities would be about $171.89); (2) a contract recommendation to have MASH operate 100 year‑round beds at an East Fifth Avenue site at roughly $108 per person per day; and (3) a reappropriation or “fund swap” of a prior $1.3 million municipal appropriation (originally intended for property rehabilitation via the Anchorage Affordable Housing and Land Trust) to be used in part for case management and guaranteed exits into AHLT units for the upcoming winter season. All three items were presented as recommendations for Assembly action the next day; no formal votes were recorded during the work session.

Most contested issues at the work session were location, funding source and timing. Multiple Assembly members asked for a map showing current shelter and supportive housing locations, breakdowns by district and a history of where the municipality has added capacity since 2018. Member Voland asked specifically what percentage of shelter capacity was located in District 1 and requested an updated map; administration staff agreed to produce one for the Assembly. Member Silvers said she was “disturbed” that the plan moves capacity to two smaller sites without increasing total system bed count, and said she may support postponing action to get more detail.

Administrative timeline and implementation details presented - The administration said Catholic Social Services (CSS) has a contract extended through Aug. 31 and that CSS is not interested in continuing to operate East 56; that timeline was used to explain the urgency of awarding the new contracts so the system can transition without a gap. The health department’s staff said East 56 is currently operating under emergency orders to allow higher capacity, but a licensed year‑round shelter would be limited to 150 people by licensing rules. The two recommended contracts would run Aug. 30–Dec. 31 (the presentation indicated later funding and operations would be subject to 2026 budget appropriations). - The East 56 contract recommendation (Henning Inc.) is for 100 beds at $83.69 per person per day; when presented as an all‑in cost including rent and utilities the administration calculated a factored per‑person cost of about $171.89 per day. The East Fifth Avenue contract recommendation (MASH) was presented at about $108 per person per day. Both operators would provide onsite behavioral‑health or behavioral‑health specialists, housing services, food, transportation to appointments, HMIS data entry and participation in coordinated entry and third‑party oversight meetings. - Administration staff said the East Fifth Avenue operator needs roughly a month to make building modifications so the site can be used, which was raised as the reason timely contract approval was requested.

Funding and the proposed reappropriation - The administration proposed reappropriating a prior $1.3 million Assembly appropriation that had been awarded to the Anchorage Affordable Housing and Land Trust (AHLT) in 2022 and reappropriated in 2023. OMB staff and other presenters said AHLT had not been able to place the original appropriation into an eligible rehabilitation project that met the appropriation’s match requirements and that AHLT supported using a portion of available funding and HOME‑ARP eligible funds for near‑term case management and guaranteed exits from shelter into AHLT units. OMB staff said the full $1.3 million figure was not likely to be used in its entirety for case management; they discussed a likely available amount below $750,000 to secure reserved exits this winter while redevelopment work continues. - Assembly questions focused on whether the swap would “burn” housing‑targeted funds for a temporary shelter need, and on whether alternative funding sources could be identified. Member Constance and others asked administration to identify a different funding source that would not reduce money for long‑term housing stock improvements. Administration staff said they had been reviewing lapsed funding, department vacancy lapsed balances, and HOME‑ARP eligibility to assemble a short‑term funding package and that use of HOME‑ARP for case management had precedent.

System context and longer‑term housing work - Administration presenters said the mayor’s shelter strategy (first announced October 2024) anticipates converting some shelter capacity into a greater proportion of housing over time. The administration presented a summary slide showing that in January the municipality counted about 991 beds/units, about 91% of which were shelter; under the set of proposals and other housing investments the administration expects about 1,068 beds/units by December with proportionately more housing (the presentation credited HOME‑ARP, emergency rental assistance and micro‑unit pilots among the tactics to shift the mix toward housing). - Administration staff described additional efforts underway: micro‑unit construction RFPs and an RFP for an operator for recovery‑residence microunits; planned crisis stabilization capacity from Southcentral Foundation and Providence (not municipal projects but cited as forthcoming local capacity); and an offer from Henning Incorporated, represented in the meeting by Alexis Johnson, to continue operating 200 beds at the East 56 location at the currently stated $83.69 per person per day rate if the Assembly sought a brief contingency extension.

Concerns raised by Assembly members - Many members requested better maps showing geographic concentration of services (East Downtown, North Fairview, East Anchorage, Sullivan Arena legacy impacts) and asked for district‑level breakdowns of where beds are located and where capacity has been added since 2018. - Members repeatedly requested clear accounting of funding sources and line‑item impacts if the Assembly approves contracts before the Assembly appropriates additional funds. Member Constance noted the Assembly’s historical practice of approving appropriations before contracts and said approving contracts first could “box” the Assembly into later appropriation votes. - Several members asked for more detail on surge capacity, the cost if additional surge beds are authorized, and the metrics that contractors will report (case management outcomes, exits to housing, HMIS participation). The administration said contractors will submit quarterly reports and participate in biweekly oversight meetings and that the health department has revised reporting requirements to include a mix of process and outcome metrics.

No formal Assembly action was taken during the work session. The administration said the items would be placed on the Assembly agenda the next day for vote. Support staff agreed to produce requested materials — a map of service locations, district breakdowns and a written scope of work from AHLT describing the proposed case‑management/exits arrangement — for members before or at the upcoming meeting.

Ending: The Assembly’s vote is scheduled for the next regular meeting; the administration said postponing beyond the next meeting could jeopardize the timely transition from the existing contractor (CSS) and the ability to have the East Fifth site operational before the CSS contract expires on Aug. 31. Assembly members said some will likely move to postpone to secure additional details and to consider alternate funding sources; others said they will weigh urgency for winter capacity against the need for budget clarity.