Urban Alchemy is in line to run Denver's two largest men's shelters, under pay-for-results contracts
A committee briefing Tuesday lays out nine shelter contracts worth about $79 million over their terms, about $29.5 million of it in 2027. Three would pay per night, per placement and per case-management session.
Denver's housing department plans to hand its two largest shelters for men to a new operator, Urban Alchemy, under contracts that pay for results rather than reimbursing expenses, according to slides for the Council's Community Planning and Housing Committee on Tuesday, Nov. 10. The briefing is 26-1713.
Why it matters: the Department of Housing Stability (HOST) contracts for nine congregate shelters, budgeted at about $29.5 million for 2027 and $79 million over the contracts' full terms, with 1,621 beds, more than half of Denver's roughly 3,000-bed shelter system. Providers were picked in a competitive process this spring, the slides say. The individual contracts still have to come to the Council.
The two big ones
48th Avenue Men's Shelter, 4600 E. 48th Ave., District 8: 513 beds. Proposed three-year contract with Urban Alchemy, $33.5 million, about $10.9 million a year, or $58.15 per bed per night.
Crossroads, 1901 29th St., District 9: 300 beds. One-year contract with Urban Alchemy, $5.7 million, or $51.93 per bed per night.
Both buildings are city-owned. The slides call Urban Alchemy a "new provider" at each.
How pay-for-performance works
Instead of paying receipts, the city would pay set prices for results. At 48th Avenue, for example, the budget assumes 95% occupancy and pays $32 per sheltered night, $2,326 per "rapid resolution" placement, $359 per case-management engagement and $154 per housing assessment. Nights and case management are each about 47% to 48% of the total. Payments can't exceed the contract value.
The 2025 numbers behind it
The slides list 2025 results by shelter. "Positive exits" leave out rapid resolutions.
- 48th Avenue men's: 97.4% occupancy, 2,163 people served, 19 positive exits, 1% of all exits.
- Crossroads: 100% occupancy, 862 people served, 150 positive exits, 20%.
- All congregate shelters: about 96% occupancy, 8% positive exits, median stay 50 days.
Smaller programs posted much higher shares: Volunteers of America's Sinton's Sanctuary for women 55 and older, 73%, and Urban Peak's youth shelter, 43%.
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The rest of the list
Catholic Charities keeps the 48th Avenue Women's Shelter (275 beds, $13.9 million over three years, performance-based), plus Smith Road and Holy Rosary under cost-reimbursement contracts. Denver Rescue Mission's Holly Center (200 beds, overnight only, $2.8 million) is budgeted at $12.56 per bed per night, which the slides say "does not cover full cost of operations." The Delores Project and Urban Peak's Mothership round out the nine.
Cold weather shelter: $3.5 million for Bayaud Works for 600-plus beds in 2027, and $2.5 million more for US Motels North for families (26-1687). HOST plans a competitive process in 2027 for five-year cold weather contracts starting in 2028.
What our records add
The current 48th Avenue lease ends this year. In June the Council approved a lease letting Denver Rescue Mission run the men's shelter at 4600 E. 48th Ave. for $30 a year, ending Dec. 31, 2026 (26-0803).
Urban Alchemy's record with the Council. The Council has approved several Urban Alchemy deals, including a June lease for a shelter at 4040 Quebec St. (26-0804), and heard a programmatic update in July (26-1138). Our earlier story has the votes. For this winter's plan, see our cold weather story.
What's next
Tuesday's item is a presentation; no vote is scheduled. The contracts will come as separate resolutions. The 48th Avenue shelter is in District 8, represented by Shontel Lewis; Crossroads is in District 9, Darrell Watson's.