The Salvation Army, which lost a $2.9 million contract from Denver to provide rapid rehousing services to homeless people, said it will pivot to find funding sources elsewhere, while acknowledging its program can’t survive without city dollars.

On Monday night, the Denver City Council dealt the faith-based charity a blow with a 10-1 “no” vote, sinking a proposed agreement with the city for services to move homeless individuals and families into permanent housing and deliver support services and case management.

Councilmember Kevin Flynn of District 2 offered the only “aye” vote.

“The decision was unexpected,” said Salvation Army Director of Communications Jennifer Forker. “So, The Salvation Army will pivot, and we will create a contingency plan, and we will find a way to fund the Housing Now program through other funding sources that we have.”

Forker said she is unclear about how far the organization can stretch those funds.

“I know the program can’t last forever without the city funding,” she said.

“We’re committed to making sure people experiencing homelessness continue to have access to services,” said Julia Marvin of the city’s Department of Housing Stability (HOST). “While the council didn’t approve the agreement with the Salvation Army, we’re working closely with our partners to keep these critical resources going without any interruptions.”

The Salvation Army has been a key player in Mayor Mike Johnston’s efforts to reduce homelessness in the city — one of his early campaign promises.

“The Salvation Army raised its hand back in 2023 and responded ‘yes’ to the city of Denver when it asked for trusted social services agencies to help it house more than 1,000 people experiencing homelessness — and later that number became 2,000 people under the All In Mile High initiative,” said Forker, pointing out that close to 70% of the success of the city’s initiatives have been accomplished with the support of The Salvation Army.

Forker added: “It’s easy to focus on the problems and mistakes that are made, but the Salvation Army is showing up and doing this work every day — sheltering up to 1,800 people in Denver Metro every day and providing more than 3,000 meals.”

District 8 Councilmember Shontel Lewis has been a vocal critic of The Salvation Army and its services in her district, citing safety concerns for shelter occupants and accusing the group of a lack of responsiveness to queries from her office.

“Just recently, we had an individual who was sexually assaulted by one of the employees of the Salvation Army, and some councilmembers have seen the letter that was written to me directly from a former Salvation Army employee instructing them not to take my phone calls, not to respond to my messages and not to respond to my emails,” she said. “So, I have deep and grave concerns about the Salvation Army.”

Denver Police Department officers were called to a homeless shelter at 4040 North Quebec Street, where a staff member was arrested on suspicion of sexual assault after reportedly dragging a woman staying at the shelter into a vacant room early Friday morning, according to Denver Gazette news partner 9News.

“Accountability is critical to serving our community well, and we are actively working with Council to address concerns and with the Salvation Army to ensure this never happens again,” said Jon Ewing, spokesperson for the mayor.

“I cannot, in good conscience, give The Salvation Army another dollar, but especially not another $2.9 million when they have shown that they are not good partners,” Lewis said.

Forker said The Salvation Army “would love to salvage this contract,” but acknowledged that the decision is up to HOST and the city.

Just two months ago, the Denver City Council voted to extend contracts and increase funding for The Salvation Army by a total of $3.1 million to support the city’s homeless efforts, even as councilmembers expressed weariness with costs and safety concerns.