Albuquerque will add 183 homeless shelter beds and 204 senior apartments after the City Council approved $21.8 million in state funding Tuesday, Sept. 15, with what some are labeling unusually strict oversight from Santa Fe.
The funding, deferred from the Sept. 3 meeting for a required second public hearing, comes with weekly progress reports and detailed operational plans that Councilor Dan Lewis called “unusual” oversight requirements showing the state’s “lack of confidence” in city performance. Lawmakers originally planned to send the money directly to the city, but it was rerouted through the governor’s office after a line-item veto, adding stricter accountability.
“I don’t think I’ve ever seen anything like this,” Councilor Dan Lewis said at the Sept. 3 meeting when the resolution was first discussed. “I think it also shows a real lack of confidence. I think that the state has that the city of Albuquerque is going to perform and use it in a way that’s going to produce the best results.”
The $21.8 million package, approved under resolution R-25-188, will expand the Gateway Center, open a youth shelter at the former San Mateo Inn and convert a former Ramada Inn into Juniper Flats senior housing. The investment comes as homelessness in Albuquerque grows, with 2,740 people counted in 2024 compared to 2,394 the year before.
The Money Trail
The funding’s winding path to Albuquerque highlights tensions between state and local leaders.
Lawmakers originally approved $40 million to go directly to the city, but Gov. Michelle Lujan Grisham vetoed that language and rerouted the money through the Department of Workforce Solutions.
When Councilor Louie Sanchez asked city staff at the Sept. 3 meeting why the governor made that decision, the staff said they weren’t “privy to that” discussion on “the fourth floor,” a reference to the governor’s office in the Roundhouse.
The governor’s intervention gave the state control over distribution and led to the strict oversight requirements now attached to the money. Workforce Solutions Secretary Sarita Nair worked with city officials to decide which projects to fund from what staff called the city’s “wish list” of requests.
Oversight Requirements
The state tied strict conditions to the $21.8 million package, setting deadlines and reporting rules in an intergovernmental agreement with Albuquerque. Councilors said the level of oversight is unusual and shows the state’s lack of confidence in the city’s past handling of the Gateway project.
Here’s what the city must do:
- Weekly reports: Submit data every Tuesday starting two weeks after the agreement takes effect.
- Trash maps: Provide a map of trash pickup for each facility within two weeks.
- Operational plans: Deliver plans for all funded programs within two weeks.
- Payment requests: File monthly payment requests within 10 days of the month’s end.
- Funding plans: Submit a draft plan for future operations by Dec. 15 and a final plan by Dec. 31.
- Facility certification: Certify all required building improvements by April 1, 2026.
- Final report: File a closing invoice report by June 10, 2026.
Chief Administrative Officer Samantha Sengel said the city can meet the requirements, which she described as consistent with its own standards. She said the state will help strengthen reporting systems and the data will be public, with health information protected under federal law.
The city also agreed to share the reports with councilors and hold study sessions to keep them updated on spending.
Expanded Services
The $21.8 million will create visible changes across Albuquerque’s homeless services and senior housing. Gateway Center will add 100 beds — 50 each for men and women — bringing its total to 192 beds with intensive case management and housing navigation services. A new 41-bed youth shelter at the former San Mateo Inn will serve people ages 18 to 25, filling a gap for transition-aged adults.
The former Ramada Inn at 25 Hotel Circle NE will be converted into Juniper Flats, 204 affordable apartments for seniors earning less than 60% of the area median income. The $5 million in state funding will help finance the $22.8 million purchase, with the remaining amount covered by city bonds.
The remaining funds will also support Gateway improvements, including roof repairs and security cameras at Gateway West, which currently houses up to 721 people each night.
“I’m just really thrilled that we’re getting 22 million,” said Councilor Tammy Fiebelkorn. “The county is getting a large amount. We’re going to see a lot of affordable housing projects moving forward before June 30 of next year. We’re really thankful to the state of New Mexico and all of our legislators for funding these funds and making sure they got to us.”
Council Skepticism About Results
Even as councilors approved the funding, some questioned whether Gateway has delivered results after years of investment that have pushed Gateway costs past $70 million, while councilors have demanded better accountability.
“We put in a lot of money in the Gateway system with very little results that we see on the city streets every day,” Councilor Dan Champine said. “If that were the case, we would see fewer homeless people. We’d see less people on the street.”
Champine also questioned long-term funding, warning the city could face pressure to continue support once the state money runs out. The administration said it will submit a plan by Dec. 31 showing how services will continue after the grant ends.
“Our intent is not to create surprises as we move forward,” Sengal said.
Despite the skepticism, the resolution passed unanimously. Council President Brook Bassan summed up the mood at the Sept. 3 meeting.
“I’ve said it before, so I might say it again,” Bassan said. “I am not a fan of the Gateways, but we have them, so let’s make them work. And I’m not going to look a gift horse in the face, and the state wants to give us money, I really hope that we put it to use and that we actually truly help people in need.”
Public Input Shows Mixed Perspectives
Public comment reflected both support for the expansion and concerns about accountability.
Jaemes Shanley, a District 7 write-in candidate for City Council, criticized the “massive outlay” for the Gateway system and its “glacial pace of functional implementation,” urging councilors to “demand performance metrics and accountability” as they consider the funding.
Anne Marie Johnston, senior director of shelters and outreach for Community Bridges, which will run the men’s navigation center, said the program offers more than beds.
“It’s not just a shelter, it’s about creating a pathway forward,” Johnston said. “This program will provide men with stability, connection to critical resources, and a chance to look forward to long-term housing.”