Data issues cause city to dismiss downtown shelters operator - Austin Monitor

"The city will not renew its contract with Urban Alchemy to manage two key downtown homeless shelters following the discovery of improper data handling by the nonprofit's staff. The Homeless Strategy Office confirmed the contract will end on Sept. 30 and that another service provider, Endeavors, will assume operations under an emergency contract. According to a memo dated Sept. 15, the decision was made after Urban Alchemy staff were found to have "improperly, and without permission, misrepresented Homeless Management Information System (HMIS) exit dates and records." Although the data was later corrected, the city characterized the breach as serious enough to warrant an immediate end to the relationship."

"Urban Alchemy has managed the Austin Resource Center for the Homeless (ARCH) since 2022, and took over management of the Eighth Street Women's Shelter when the city purchased the shelter from the Salvation Army. "Ending this contract reflects HSO's commitment to upholding the integrity of its operations," the memo states. "This commitment guides every decision, ensuring that respect, compassion, and support remain at the core of all programs.""

"Endeavors, a veteran homeless services provider that currently manages the Marshalling Yard and Northbridge shelters, was selected for the interim role due to its ability to quickly ramp up staffing and familiarity with city contracting procedures. The emergency contract is expected to run through September 2026, pending City Council approval on Oct. 9. Urban Alchemy took over operations at ARCH after the city ended its long-standing contract with local nonprofit Front Steps. Although some City Council members expressed concerns at the time about Urban Alchemy's limited experience with congregate shelters, the organization received early praise from community stakeholders."

The city will not renew Urban Alchemy's contract to manage two downtown homeless shelters after staff improperly altered HMIS exit dates and records. The Homeless Strategy Office set the contract end date for Sept. 30 and described the data breach as serious, even though records were later corrected. Endeavors will assume interim operations under an emergency contract and was chosen for its rapid staffing ability and contract familiarity; that contract is expected to run through September 2026 pending City Council approval on Oct. 9. Urban Alchemy had managed ARCH since 2022 and later took over the Eighth Street Women's Shelter, drawing both praise and earlier council concerns about experience.

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