Phoenix OKs stopgap funding to keep downtown homeless shelter open
The Phoenix City Council stepped in to save the Valley's largest shelter provider from having to end 24-hour services Wednesday, clamping down on concerns the shutdown might revive the encampment formerly known as "The Zone."
The city gave Central Arizona Shelter Services, after state agencies turned down multiple attempts to keep the shelter's doors open.
Faced with a $1.5 million dollar shortfall, the downtown Phoenix shelter was at risk of having to shut down 24-hour services, closing the 600-bed facility for four hours a day. The organization expected federal funds to run dry by April.
Originally, the homeless shelter was going to have to close its doors for eight hours a day, but changed gears after considering just how much the closure could affect the people CASS serves. To save on personnel costs, CASS would require sheltered individuals to vacate the facility during the day, with exceptions for those who work night shifts, the elderly, and the medically vulnerable.
Neighboring business owners expressed concerns that any reduction in services would send more people back onto the streets around Twelfth Avenue and Jackson Street and usher in a return to "The Zone," the sprawling makeshift encampment, Phoenix shut down last November. Roughly 1,000 people lived on surrounding sidewalks at the depth of the crisis.
CASS representatives warned Phoenix City Council of their troubling situation on Feb. 7. Council members approved an inflationary increase to CASS' contract, but also called on other cities, the county and the state to brainstorm a more effective regional solution.
On Wednesday, the council met again to discuss reallocating American Rescue Plan Act funds to fill the gap for CASS and supplement numerous other homeless resources.
The Council voted unanimously to approve the approximately $15 million reallocation. The money will be disbursed between general city projects to provide things like safe outdoor spaces and summer heat respite for the homeless, as well as to CASS.
CASS will receive $1 million of ARPA funds to keep its doors open 24 hours a day at their Single Adult Shelter and the Vista Colina Family Shelter.
“If we have the ability at least to assist and help currently, then I think it's the responsibility of us to do it,” said Councilmember Laura Pastor.
The $1.5 million shortfall in CASS’ funding arose because of the current economy, as well as a lack of support from multiple state agencies. Most recently, the Arizona Department of Housing turned down the organization's three multi-million-dollar grant requests. The three grants, totaling $7.9 million, would have been pulled from the state housing department's Homeless Shelter and Services Fund.
CASS received no portion of the $20 million in grants designated for cities or the $40 million allocated to organizations and cities by the Department of Housing.
The Arizona Department of Economic Security also ceased funding to CASS last year, leaving the shelter to fend for itself as the shared pass-through costs increased nearly six-fold and day-to-day costs shot up sharply.
Recently, business owners in the area say they have already seen an increase in the number of people wandering around Madison, between Eighth and 13th avenues, at the former heart of The Zone.
CASS was an integral part to clearing The Zone at the end of last year. Expanding to meet the city's needs, in 2022, the shelter added 130 beds to their 470-bed facility. Since the clearing work began CASS has been at full capacity.
Moving forward, the organization plans to continue applying for state-funded grants, as well as community-based fundraising and soliciting other municipalities.
This article originally appeared on Arizona Republic: Phoenix OKs stopgap funding to keep downtown homeless shelter open
