DENVER — A new audit of Denver’s Department of Housing Stability (HOST) reveals millions of dollars in untracked spending and inadequate safety measures at city-funded homeless shelters.
City Auditor Timothy O’Brien said the investigation was prompted by community concern. The audit found that HOST was unable to provide a comprehensive financial breakdown of nearly $150 million in taxpayer funds spent between January 2022 and March 2024.
Untracked spending
“Every department, every program, has an obligation to be fully accountable for the dollars that they spend. And this is no exception,” said O’Brien.
O’Brien noted that his office had to calculate the spending themselves, describing the department's tracking methods as ineffective.
The report stated, "Although we asked Housing Stability multiple times for documentation identifying all shelter-related expenses from Jan. 1, 2022, through March 31, 2024, the department was unable to provide this information."
The audit revealed that over 50% of reviewed invoices were submitted late, 38% lacked proper documentation, and some included duplicate payments.
Safety concerns
The audit found significant security gaps at shelters, particularly the former DoubleTree hotel, now The Aspen. It said, insufficient security led to three shootings in March, resulting in two deaths.
The Salvation Army, contracted to run the shelter, failed to install cameras or hire guards for months. The city spent $1.02 million to address these shortcomings.
“Had the shelter had security measures in place, it certainly would have mitigated the risk of some of the occupants being injured,” said O’Brien.
The report criticized HOST for lacking a strategic plan to enforce safety measures, instead reacting to problems after they occurred.
“Security needs to be thought of at the beginning, not at the end,” O’Brien added.
Policy and oversight gaps
The report also flagged gaps in nondiscrimination and grievance policies. Six of eight reviewed providers lacked sufficient grievance procedures for residents, while several failed to include all protected classes in nondiscrimination policies.
"We had other providers that didn't want to have women that were over 60 years old, for some reason. I mean, it needs to be consistent," said O'Brien.
Additionally, a shared drive containing sensitive resident information was found to be improperly secured.
It noted that Mayor Mike Johnston’s All in Mile High initiative overwhelmed staff and delayed improvements.
City response
The city and Mayor Mike Johnston acknowledged the findings but highlighted progress through initiatives like All in Mile High, which has moved over 2,150 people indoors, permanently housed 800, and closed 350 city blocks to camping.
“Denver's All in Mile High program has transformed the city's homelessness resolution system, resulting in the largest decrease in street homelessness on record,” a spokesperson for Johnston said.
The mayor's office also emphasized the audit's reliance on older data, "The Auditor's report on Denver's shelter system references data and information from more than eight months ago and is not an accurate representation of the current state of our shelter system.
HOST leadership testified that many audit recommendations were already being implemented, including requiring security and grievance plans in provider contracts, adding safety measures like cameras, and introducing standardized training for staff.
“I think they’re in the process of doing this because we made the recommendations, which is positive," said O’Brien.
Recommendations and next steps
The audit urged HOST to:
Develop tailored security assessments and monitoring protocols.
Implement formal processes to track shelter-related expenses and improve invoice reviews.
Mandate comprehensive nondiscrimination and grievance policies for all shelters.
HOST is committed to addressing these issues by 2025, with improvements expected to build a safer, more accountable shelter system.
Still, as O’Brien pointed out, the stakes remain high as Denver works to balance progress with accountability, “With the homeless… they’re vulnerable, and people will go after them.”